Insights

Managing Profitability During a Downturn: From Triage to Treatment

The global economy is in the hospital, and it would not be surprising if your business should need to make a visit as well.

But do you have the information necessary to quickly and accurately perform triage (i.e., determine the severity and urgency of the problem), diagnose the causes, select the right treatment, and position yourself for recovery? Without this information, you are at risk of mismatching the treatment to the illness – the business equivalent of applying a bandage to a broken leg at one extreme or performing surgery to cure a cold at the other.

As discussed herein, business triage involves locating your company on the “crisis slope” that runs from strategic downturn, through profitability erosion, to an all-out liquidity crisis. Once you understand where and why you have landed on the crisis slope, undertaking actions to improve business planning, financial forecasting, and cash management, while also embarking on a comprehensive performance improvement agenda, can set your company on the road back to business health.

Managing Profitability During a Downturn: From Triage to Treatment


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