The New Normal

I would strongly recommend to you an article titled, “The
New Normal,” by the consulting firm, McKinsey & Company,
in its online publication “The McKinsey Quarterly.”

The article talks about how fundamentally different the
current recession is from prior business downturns.  In
essence we are experiencing a major business
restructuring.  And I might personally add, a significant
personal restructuring.

Some organizations and people are concentrating on their
near-term survival, with little considering about the
long-term prospects.  Unfortunately, the long-term will be
here soon enough.

HR CONTRARIAN POINTER: Begin trying to answer the
question, “What will normal look like in 2 to 4 years?”

Here are some issues to consider:
1. Will there be less financial leverage in the system
that will alter your business model?
2. Will there be more regulation that will increase costs
and expand government oversight from IRS Regs to Labor
Laws?
3. Will there be as many buyers for your products and
services?
4. What will buyers demand in the form of value-added
services or price concessions?
5. Will lenders and insurers be more risk averse and
therefore demand higher collateral and premiums?
6. With everyone calling for new levels of transparency,
will small businesses be caught-up in this process and
feel “obligated” to share more information with employees?
7. Will the threat of protectionism help or hurt your
ability to buy or sell products and services?

One thing we know for sure is that things will be
different in our post-crisis economy.

Below is a link to the McKinsey article:
http://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/The_new_normal_2326

Share With Your Colleagues:
This entry was posted in Tip Of The Week. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *