A recession if managed well can be a good time for an organization. It offers an opportunity for companies to reassess their overall strategy, buy other businesses at a cheaper cost and build critical competencies. To win, an organization needs to do two things right. One, to survive the immediate crisis and second, prepare for economic recovery. The bottom-line is that winners and losers will emerge during any economic change. It all depends on how the game is played.

These days one cannot click on any website or pick up a paper and not see news about the impending financial doom and gloom. Walk by the coffee machine and there's the dismal talk of lay-offs, the cash crunch and the significant erosion of investor wealth. The world seems to be reeling under this talk of financial crises.

So, what is the hue and cry about the dreaded R word? Was the world unprepared for this? We know the cliché "What goes up must come down", that is almost prophetic in nature. It gets one to think that this is not our first bump with economic downturn. We have been through this many times before. Is it bigger and meaner than the last time round?

Whatever the answers to the above reflections, the most important thing to realize is that a recession is not simply a time to scale down, get defensive and pray, hoping to come out intact and unhurt. A downturn can actually be good for a company, if it is managed well.

HRM Review Magazine, Economic Recovery, Financial Doom and Gloom, Economic Downturn, Charismatic Leadership, Emerge Triumphant, Cost Cutting, Operational Efficiencies, Working Capital, Capital Investment, Capital Management, Leadership Strategy, Organizational Direction and Strategy, Product Innovation.