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How tech CEOs must lead through uncertainty in an economic crisis – Gartner

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Tech CEOs

For tech CEOs to weather an economic crisis, long-term strategies must be transformed into daily actions that will secure their companies’ success. To do this effectively requires a clear understanding of the risks they face and competent utilization of resources at hand – such as strategy, cash flow, and personnel.

An economic crisis has the power to test even the most powerful businesses. Without an appropriate plan in place for sustainable cash flow management ahead of a recession, tech CEOs may be forced into drastic measures merely to keep up with their competition. On the contrary, those who had strategized beforehand will additionally find themselves battling for market share or expansion opportunities that arise from such circumstances.

Depending on whether you are prepared or unprepared for a crisis, Gartner has listed a set of action items you must pursue to move faster during uncertain times.

Looking forward through uncertainity

Tech CEOs unprepared for an economic crisis must adopt a conservative working capital model

In case of an economic slowdown, organizations without a solid strategy in place are vulnerable to being taken advantage of by more aggressive competitors. Tech CEOs must take action by setting up disciplined working capital management strategies that will conserve cash flow as well as safeguard their workforce and corporate culture during this uncertain period.

Gartner recommends:

  • Putting working capital management into rapid cash conservation and focusing on what is needed to support the operations of the business.
  • Knowing in advance how to address the company’s purpose, values, and few priorities to swiftly put into action a minimum viable strategy (MVS) when needed.
  • Current assets on the balance sheet are items that can be turned into cash quickly, providing liquidity for business operations.
  • Using the quick ratio at all times to determine your cash position and confirming whether there is enough liquidity to pay current liabilities.
  • Focusing on accounts receivable and collections to improve the company’s cash balance during an economic crisis to increase sales income.
  • Having clear and constant visibility into the company’s performance and managing the business as close to real-time as possible.
  • Building a customer-centric culture to navigate uncertainty. This can be done by improving the customer experience by inspiring all employees to support a customer-first culture and measuring the progress of a customer culture shift by incorporating and monitoring tracking metrics.

Tech CEOs who are prepared should execute their defined strategy

In times of economic uncertainty, tech CEOs who are prepared have the unique opportunity to capitalize on market opportunities and strategically exploit weakened competitors. By leveraging their existing strategies along with time-tested marketing efforts, these strategic leaders can make strong investments that reap high returns. In this way, they are primed for success as markets become increasingly vulnerable during times of recession.

focus of well-prepared tech ceo

Focus of a well-prepared Tech-CEO

Gartner recommends:

  • Leveraging strategic acquisitions to gain access to cutting-edge technologies and acquire footholds in untapped markets and capitalizing on trending innovations through creative product advances, empowering them with a decisive edge over struggling competitors.
  • Establishing a presence in the industry to showcase your business and its unique offerings by utilizing tradeshows and social media platforms, thereby positioning yourself as an undeniable leader.
  • Demonstrating your commitment to working with competitors’ customers by experimenting with new products and solutions and utilizing funds to tap into new markets.
  • Positioning your business aggressively with key hires from competitors and harnessing their talent and experience for a strategy that will position you ahead of the competition.

In a time of crisis, tech CEOs who have prepared for the worst can capitalize on opportunities and gain significant market share. For those not ready to make swift moves in times of uncertainty, focusing on cost-saving measures is key. Now more than ever it’s crucial that these leaders remain agile and alert so they don’t miss out on potential growth or development prospects during turbulent economic climates.

Source: Gartner

Read next: Gartner reveals six factors why executive leaders must rethink business and technology strategies

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