OKAY, SO THESE ARE TURBULENT TIMES. BUT WHAT DOES IT MEAN?
HAND IN HAND WITH TURBULENCE
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his isn’t a story about the omnipresent crisis or the end of the world as we know it; in fact it’s quite the opposite. This is a story about turbulence and all the possibilities it brings if we do the right things and learn how to navigate in it. Because now isn’t the time to sit back and wait for it all to blow over – since what we’re looking into just might be the new reality. Perhaps the word crisis, persistently used to describe the current state of affairs, ought to be replaced with turbulence, since that’s a more suitable characteristic of what permeates our world today. It’s true that the economic situation in many European countries is unstable and gloomy, and many companies are struggling to survive. However, if we expand our horizon and look at countries such as Germany, the US, China and Brazil, the picture is one of growth and prosperity. The world’s economic centre of gravity is moving east – and by 2020, BRIC markets will have advanced further with China in the lead as the world’s biggest economy. A significant part of the global economy does experience growth and has done so for a while, but it’s easy to forget when the news are all about the all-encompassing crisis. Growth is present all over the globe, but one thing has changed – there are no stabilising forces anymore. There are fewer financial superpowers left. This lack of stabilising factors leaves us with a world of uncertainty, and as a result, the aspect of turbulence is ever more present.
Today, the real challenge for business leaders is that hardly anyone has experienced times of turbulence before. Crisis yes, but real turbulence no. We have no references to frame the game and to guide us in our quest for growth. As a consequence, it’s every company for itself, and there’s a good reason to get used to this situation, since nothing suggests that stability will return within the next five years, if indeed ever.
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n a turbulent market or context, the companies that can handle change swiftly and effectively will quite frequently get opportunities to improve their market position. The solution is to expand to markets where growth opportunities are present, to create new opportunities and to minimise the risks of being present and vulnerable in just a few markets. Globalisation is not a one-off decision about where to locate a factory any more, but rather a constant topic on the strategic agenda. In order to be competitive, it’s essential to make sure that your organisation is strong and streamlined, financially solid, capable of taking rapid action and focused on core assets. Furthermore, it’s crucial to invest in the best and most competent employees and middle managers who are able to adapt to market changes quickly and make the right decisions, even when they’re working in a different time zone or culture. To sum up, you need to be agile mentally as well as structurally to capture the opportunities stirred up by turbulence.
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nd there’s no time to waste. Cultivating agility could turn out to be crucial for companies, and the consequences of procrastination could be severe; if you don’t act today, you risk being outperformed by your competitors tomorrow. Turbulence is the condition of the market today. All companies have to face and adjust to this simple fact. If a company doesn’t understand how to exploit this in its favour, it risks becoming paralysed. And one thing is certain: while some are paralysed, others will be more than willing to take market shares.