·               FOCUS ON WHAT REALLY MATTERS. Evaluate which products are customers create or destroy value. Revising your existing investment programmes – what initiatives could you stop or defer?

 

·               REMEMBER CASH IS KING. Ensure your finances are in order; protect your liquidity; re-examine your treasury, financing, funding and pension exposures. Monitor your performance against financial and nonfinancial covenants. Adopt a hands-on approach to cash management.

 

·               ACT DECISIVELY. Make tough decisions early. The winners will be those who position themselves to take advantage of the upturn.

 

·                 TAKE YOUR STAKEHOLDERS WITH YOU. Evaluate the likely impact of the downturn on your stakeholders. Make sure that you understand their agendas. Perception often amounts to reality, so maintaining regular and open dialogue is key.

 

·                 RECOGNISE THE VALUE OF PEOPLE. Regular and clear communication is vital. Develop appropriate incentives. Retaining the best people is critical to your future.

 

·                 TAKE A CLOSER LOOK. Understand the true picture and not what you would like to believe. Understand what’s driving your business and how it is being impacted by the downturn.

 

·                 MANAGE YOUR COSTS. Go for targeted rather than across-the-board cuts. Look at your property, employee costs and discretionary spending. Does your business model need to change?

 

·                 RELIABLE MANAGEMENT INFORMATION IS KEY. Clearly defined key performance indicators are crucial. Decision-making needs to be based on facts and the speed of decision-making needs to improve. 

 

·                 PLAN FOR DIFFERENT SCENARIOS. The winners are those that are flexible. Model a range of financial and operational scenarios that reflect the impact of the downturn.

 

·                 TAKE ADVANTAGE OF OPPORTUNUTIES. Don’t stop investing in areas of growth needed for the future. Don’t forget your brand. Think beyond the next quarter.  

           

Dan Schwarzmann, 45, who leads PricewaterhouseCoopers (PwC) Business Recovery Services team deals with the world’s biggest insolvencies and was last year appointed administrator for top US investment bank Lehman Brothers, which filed for bankruptcy in September..