With momentum through the economic trough?
How high-performance organisations are using the economic downturn to their advantage
For many companies, maintaining or even sustainably strengthening their competitive position in an economic downturn sounds unrealistic. However, if the organisation brings the right prerequisites, it can increase its performance in economically difficult times and profit in the long term.
The economic forecasts for 2023 are not very encouraging. Depending on the source and the sector, a more or less significant economic growth decline is expected (also see hpo economic commentary). Ongoing inflation, delayed supply chains, and the uncertain energy supply situation severely impact the export-dependent industry. Many companies expect a decline in orders. Those properly positioned can react quickly to the economic downturn, deploy their strengths strategically, and reap above-average benefits during the next upswing.
Scalable organisations act faster and more successful in the cycle
demand and sustainably secure value creation:
A scalable, high-performance organisation
- is clearly strategically positioned in the market.
- strives for a scalable role along the value chain.
- focuses on high-margin stages of the value chain.
- invests in strategic growth areas.
- avoids unnecessary complexity in the product/service portfolio.
- systematically develops its own portfolio, separate from day-to-day business.
- makes make-or-buy decisions from a strategic and cross-functional perspective.
- increases the reusability of customer solutions through modularisation and standardisation.
- provides the basis for a sustainable increase in earnings by several EBIT points.
- outsources non-differentiating stages of the value chain to reduce fixed costs and risks.
- increases efficiency by eliminating wastefulness in all areas of the company.
- ensures that budgeted costs are met in cost management.
- has end-to-end business processes.
- consistently aligns business processes with the customer journey.
- has a common process understanding of how services are provided to the customer.
- has clear responsibilities for revenue and costs, which are separated in terms of processes and systematically anchored.
- has a process-oriented, transparent management structure.
- makes quick decisions thanks to clear areas of responsibility.
- makes managers capable of acting by ensuring that the operational and organisational structures are in harmony.
- empowers employees by clearly defining tasks, competencies, and responsibilities.
Scalability as a decisive success factor in the industrial environment
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Who is hpo?
hpo makes companies more successful and more innovative. The strategy consultancy for enterprise design boasts more than 25 years of experience in the creation of strategies and organisations spanning many different industries. The management consultants at hpo specialise in the meticulous development of strategies, processes, business models, innovation and culture, and in accompanying the transformation.
The hpo design approach enables companies to better cope with strategic and organisational challenges and to realise substantial competitive advantages. The basis of the industry-spanning design approach is an academically grounded methodology with which high performance organisations are shaped and which is continually further developed with the latest findings from research and practice.
The management consultants at hpo come from a commercial or technology background and stand out with their high level of analytical and emotional intelligence. They are passionate in their dedication to the client’s concerns and enjoy working in a team.
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