3 min read

Arthur D. Little: Business is back in business

<p>The majority of CXOs across all industries predict businesses will return to pre-crisis activity levels by the end of 2011. This is the finding of a survey by global management consultancy Arthur D. Little of 338 executives worldwide, with 71 per cent of CXOs believing their businesses will fully recover. This is a more prudent outlook compared to the consultancy’s survey conducted last year, where 84 per cent of executives predicted this result. Yet, the popular notion of the “new normal”, commonly referring to a downsizing of the global economy, has been shown to have few adherents, with 75 per cent of executives estimating growth to be at least as high as before the crisis took hold.</p>

Executives’ optimism is linked to the lasting benefits of the fundamental restructuring that businesses could not avoid. These include lower working capital, higher productivity through redundancies, re-engineered processes, higher capacity through cutbacks, and a rationalized manufacturing and logistics footprint – going back to basics.
Despite this level of optimism, there are two key barriers; hesitant consumer demand and the impact of government spending cuts. Over 80% of executives surveyed believe that economic uncertainty means consumers remain reluctant to part with their cash, with over 60% also pointing to government budget deficits having a significantly negative effect on public investment.
Executives recognize innovation as a trigger for increased consumer demand. Whether through new product launches, entry into new segments or bringing in new clients/projects, innovation is seen as the key driver for success.
It is clear from the results of this survey that despite the obvious negative effects of the downturn, there are opportunities to be gained from the introspective look at core business structures that took place. The challenge now is finding innovative ways to persuade hesitant consumers to spend again.
“Executives will openly admit that whilst business leaders can blame others for putting their industries into this mess, businesses will only have themselves to blame for not getting back out of it,” concludes Dr Michael Traem, Arthur D. Little’s CEO. “What we are left with is a shift in culture back to where the emphasis should lie, with the customer.”
To access the full findings of Arthur D. Little’s second global executive survey, please visit:
www.adl.com/Focus_Back

3 min read

Arthur D. Little: Business is back in business

<p>The majority of CXOs across all industries predict businesses will return to pre-crisis activity levels by the end of 2011. This is the finding of a survey by global management consultancy Arthur D. Little of 338 executives worldwide, with 71 per cent of CXOs believing their businesses will fully recover. This is a more prudent outlook compared to the consultancy’s survey conducted last year, where 84 per cent of executives predicted this result. Yet, the popular notion of the “new normal”, commonly referring to a downsizing of the global economy, has been shown to have few adherents, with 75 per cent of executives estimating growth to be at least as high as before the crisis took hold.</p>

Executives’ optimism is linked to the lasting benefits of the fundamental restructuring that businesses could not avoid. These include lower working capital, higher productivity through redundancies, re-engineered processes, higher capacity through cutbacks, and a rationalized manufacturing and logistics footprint – going back to basics.
Despite this level of optimism, there are two key barriers; hesitant consumer demand and the impact of government spending cuts. Over 80% of executives surveyed believe that economic uncertainty means consumers remain reluctant to part with their cash, with over 60% also pointing to government budget deficits having a significantly negative effect on public investment.
Executives recognize innovation as a trigger for increased consumer demand. Whether through new product launches, entry into new segments or bringing in new clients/projects, innovation is seen as the key driver for success.
It is clear from the results of this survey that despite the obvious negative effects of the downturn, there are opportunities to be gained from the introspective look at core business structures that took place. The challenge now is finding innovative ways to persuade hesitant consumers to spend again.
“Executives will openly admit that whilst business leaders can blame others for putting their industries into this mess, businesses will only have themselves to blame for not getting back out of it,” concludes Dr Michael Traem, Arthur D. Little’s CEO. “What we are left with is a shift in culture back to where the emphasis should lie, with the customer.”
To access the full findings of Arthur D. Little’s second global executive survey, please visit:
www.adl.com/Focus_Back

RELATED INFORMATION

Business Case for Corporate Responsibility
Business Case for Corporate Responsibility

In 2003, Arthur D. Little collaborated with Business in the Community to produce a concise report on current thinking on the business case for corporate responsibility, arguing that specific…

Find out more
Digital business models in freight
Digital business models in freight

Find out more
‘Triangulate‘ your IT for Business Value
‘Triangulate‘ your IT for Business Value

The days of IT as a pure enabler function for companies are over – and with it the role of the CIO/CFO. Instead, his role is shifting towards the ”balancing” power in enterprises, being responsible…

Find out more