Recession proof value

It's funny when your instincts are validated.

I believe that the current economic downturn will provide opportunities for Social Software to thrive in companies.

I thought, that when times are tough, business challenges will make winners out of those who do more with what they have and innovate to differentiate themselves from competitors.

I knew from experience, that Social Software can help companies do this.

Then I stumbled upon a 2003 Outlook Point of View article on the Accenture site called "What Did the Winners of the Last Recession Do Right?"

Accenture researchers interviewed senior executives who experienced the global recession of 1990-1991 and compared those quantitative findings with return on invested capital of the largest US companies.

Aside from conservative financial management, the best performers:

• Set priorities based on detailed knowledge of how the company creates value.

• Leveraged unique information systems designed to give them the ability to manage and gain insight about their key value drivers.

• Collaborated with customers to improve value propositions and create new products that were suited to the same pressures facing customers.

• Priced for profitability and used pricing flexibility to pick up market share.

• Allows management to gather detailed knowledge, of how the company creates value, from a broad constituency, and refine this into priorities through a range of expertise and operational perspectives.

• Provide clear, effective strategy and governance based on these priorities, through collaborative best practice, transparency, and improved communication.

• Give managers the tools to manage their key value drivers through focused, self reliant, cross-disciple teams, which draw on the larger organization for support.

• Include customers and suppliers in value creation through shared communities of interest or direct participation in your internal processes.

• Create cost and value flexibility through innovation and effective use of talent using the collaboratively maintained and cross-referenced business resources.

If used effectively, that’s just what Social Software can do.
It will probably be a year or two before we find out if Social Software was a positive factor in the best performers coming out of this economic environment.

So watch this space...