CEOs of top global Software Development Companies like Elon Musk (Tesla & SpaceX ), David Solomon (Goldman Sachs), Charles Scharf (Wells Fargo) have shared their perspective of the possibility of recession in the coming months based on the their teams reports and have also began curtailing their investments and expenses accordingly. Business heads and financial organizations being the first ones to be impacted by the recession event are the among the first set of professionals to bear the heat of recession.
The C- level honchos face the recession pressure in multiple ways, some of which are shared below.
1. Financial Crisis:
Being sceptic with the expensive and higher risks of bad debts along with delayed payments creates a great level of mental pressure in the business process.
2. Customer Relationship:
Reducing purchasing power along with reducing business flow does not only block the opportunity of new customers but also stagnant or takes away the existing customers and projects.
3. Business Reputation:
Providing the same or better service amidst the crisis within the restricted budget creates a vicious cycle that creates a cut throat competition for the services as well as product industry.
4. Balancing both the Parties:
Managing the employees amongst the ongoing uncertainty and getting the team to perform well while ensuring stable business is one of the critical challenges of the business heads.
5. Multitasking:
Restricted budget along with lesser number of employees and frugal resources creates a need for extra efforts and leads to strain at personal and professional level.
The issues can be resolved by adopting list of strategies as shared below:
1. Analyzing Business:
Being Critically aware of the available capital, debts, expenses and market value will help in revamping short term plans to survive the impact of recession with minimal damages.
2. Being Open to Opportunities:
Strengthen relations with the existing clients, choosing client organizations based on stronger backgrounds to avoid bad debts. Being open to new projects adds on income options. Having clients from different verticals helps stabilize finances.
3. Being Honest:
Pay Cuts, reduced benefits and employee layoffs create a sense of uncertainty and insecurity among the existing employees. Addressing the team's concerns and sharing clear information strengthens the bond and helps the team perform better.
4. Emotional Intelligence:
Being professional or emotionally intelligent works in multiple ways at managing stress, boosting confidence and communication skills. It helps understand and react to situations in a stable and professional manner.
5. Financial Preparations:
Avoiding or delaying launches and development projects by resetting financial goals during market uncertainties helps create a stable financial process with fewer stress.
Recession very well known creates an obstructive environment for all individuals in different ways. The C- level honchos struggle balancing between the management and employees juggling to maintain the performance process.
(Author: Alisha Fernandes is an inquisitive learner & content writer at TechDoQuest)