Forrester: The Best Defense For Business Leaders During The 2023 Economic Downturn Is A Proactive Offense

Rhea-AI Summary

The recent Forrester research report highlights the unique challenges businesses face during the 2023 economic downturn, which is unlike any previous recession due to its complex origins. The study suggests CEOs should focus on a long-term strategy by making targeted cuts while still investing in growth areas, particularly technology that enhances customer and employee experiences. Additionally, CEOs are encouraged to prioritize talent management and be selective about customer engagement to maximize resource utilization. These insights aim to empower leaders to turn challenges into opportunities.

Positive

• Guidance on balancing budget cuts and strategic investments during the downturn.
• Focus on enhancing customer and employee experiences through technology.
• Emphasis on talent management and strategic customer selection.

Negative

• None.

To navigate this downturn, CEOs will need to simultaneously reduce spending while continuing to invest in their organizations’ long-term strategy

CAMBRIDGE, Mass.--(BUSINESS WIRE)-- According to Forrester’s (Nasdaq: FORR) “Navigating The 2023 Downturn” research, the current global downturn will unfold in ways unlike any economic decline previously experienced. While prior recessions have followed a boom-bust cycle, the 2023 downturn immediately follows a pandemic that has already disrupted business models and forced organizations to pivot their business strategy. Additionally, multiple factors contribute to the complexity of this downturn, including inflation, energy costs, supply chain challenges, regional conflicts, and changing worker demographics. These factors will uniquely combine across regions and industries, ensuring that each country will experience it differently.

New research from Forrester offers proactive measures to help business leaders across technology, marketing, sales, customer experience, digital, and security and risk effectively manage this downturn. Specific guidance for CEOs includes:

• Stay focused on long-term strategy by making smart cuts and smart investments. When facing prior recessions, many leaders imposed cuts across the board. This brute-force approach is likely to hurt more than help, however. Many leaders also assume that, as they make cuts, they can’t pursue new investments, but in reality, this moment is ripe for CEOs to do exactly that. In addition to establishing a customer-obsessed objective and then making smart cuts with that objective in mind, leaders should move forward by investing in technologies that can improve customer experience, employee experience, and productivity, even as others choose to stand still.

• Put talent at the center of the long-term strategy. Currently, 54% of US workers and 43% of both UK and French workers believe that their organization will make personnel decisions in a careful and human-centric way. When considering cuts, CEOs should identify the individual contributions and skills that will take their company into the future and invest in a talent intelligence program that thoroughly tracks worker skills and performance capacities.

• Choose the right customers to obsess over. During this downturn, CEOs must realize that it’s equally important to decide which customers not to serve as it is who to serve now and in the future. Ultimately, underperforming markets lead to underutilized operations, neglected technical debt, and the waste of valuable resources that can be aligned to better opportunities.

“This economic downturn is unlike any other recession businesses have experienced so far,” said Sharyn Leaver, chief research officer at Forrester. “As a result, business leaders can’t rely on what has worked previously. They will need to think differently and adjust their products, processes, and customer experiences. This research has been designed to help business leaders make smart, growth-minded choices that support their organizations’ long-term strategy.”

Resources:

• Read Forrester’s report, The CEO’s Guide To Navigating A Turbulent 2023.
• Explore Forrester’s budget guidance for 2023, outlining where business leaders should invest, divest, and experiment to ensure long-term success.

About Forrester

Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, customer experience, digital, marketing, sales, and product functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave™ evaluations; 100 million real-time feedback votes; and the shared wisdom of our clients. To learn more, visit Forrester.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230126005152/en/

Ira Kantor

Forrester Research

ikantor@forrester.com

Source: Forrester

FAQ

What does Forrester's recent research say about the 2023 economic downturn?

Forrester's research highlights that the 2023 downturn is complex and different from past recessions, requiring innovative strategies from CEOs.

How should CEOs manage their strategies during the current downturn according to Forrester?

CEOs should make smart budget cuts while investing in technologies that improve customer and employee experiences.

What percentage of US workers believe their companies will make careful personnel decisions?

According to Forrester, 54% of US workers believe their organizations will approach personnel decisions carefully.

What is the focus of the Forrester report related to CEOs?

The report advises CEOs to prioritize long-term strategy, talent management, and careful customer selection during challenging economic times.