According to the World Bank, while “central banks around the world are simultaneously raising interest rates in response to inflation, the world could be heading for a global recession in 2023.” In this gloomy environment, it is understandable that business leaders are reluctant to take risks when faced with the prospect of a slowdown in demand. Faced with this, it is obviously necessary to monitor costs closely, and some projects may have to be postponed, but the recession can also be a great opportunity to take a fresh look at your business and see where you can become more efficient.
Many experts consider automation to be “recession-proof,” or in other words, a real resilience factor, as it allows businesses to adopt a posture that is both defensive and offensive. Indeed, they can save on costs by becoming more efficient in the short term, while strengthening a key digital capability for the future. When properly implemented, automation during a recession can allow your business to do more with less, and come out stronger than ever.
Automation: the answer to the recession?
When sales start to slow, investing in the future is often the last thing managers think about. After all, doesn't uncertainty call for caution? At StoryShaper, we think that's not necessarily the best answer.
Some investments can provide immediate savings while strengthening the business for the future. According to technology consultancy Smartbridge, RPA is “one of the technologies that does not seem to be affected by economic downturns such as “recessions”, because it increases the efficiency of the human workforce.
When times are tough, it's human nature to get defensive and protect what you have. But those who keep the focused on long-term growth And who heinvest during these times tend to come out on top when the economy expands again.
A new constraint: doing more with less
Overall, entrepreneurs have had a hard time keeping up with all the changes in the job market in recent years. Entre la Great resignation in the United States, the shift to remote working, and the scarcity of tech talent, businesses have had to adapt to continue making progress toward their goals.
With the recession looming on the horizon, many are now looking to reduce their costs to protect profitability. But these measures can backfire.
According to an analysis by the Harvard Business Review, “most businesses are implementing aggressive cost-cutting plans to survive a recession. But businesses that focus on improving operational efficiency fare better than those that focus on reducing the number of employees.”
Instead of taking general cost-cutting measures, businesses should find ways to become more efficient. Investing in cutting-edge automation technology is a great way to do this, as it reduces operational expenses while ensuring longer-term growth.
An attack-defense strategy
It is difficult to identify investments that allow a company to play both in attack and in defense. In this respect, automation is unique, but its benefits don't end there.
Some of the benefits overlooked include the possibility of Take a fresh look at your business, to ensure the future of your employees and to enable them to devote themselves to more creative and high added value tasks.
To improve your internal processes and eliminate inefficiencies, employee buy-in is needed. But downsizing can hurt morale and performance. One of the main reasons for this underperformance is that the remaining employees are often forced to take on more work. As a result, they tend to feel exhausted, undervalued, and unmotivated.
Automation has the opposite effect: employees can Do more with less and devote a smaller portion of their workday to tedious tasks. As they enjoy their work more and learn new skills, they are more likely to stay with and grow with the company for the long term.
Dupe Witherick, automation manager at J.P. Morgan, indicated that the bank is”very eager to improve people's skills, to train them, because for me, this is what makes it possible to prepare the future of your staff.”
Of cost savings, of stronger digital capabilities And a A fresh look on your business are some of the biggest benefits of investing in automation during a recession. And it's not just about investment and leadership. Thinking holistically about leadership during and after a recession is critical.
About StoryShaper:
StoryShaper is an innovative start-up that supports its customers in defining their digital strategy and the development of automation solutions tailor-made.
Sources: StoryShaper, World Bank, Smartbridge, Smartbridge, Harvard Business Review, J.P. Morgan
