Managers, surprised by the severity and speed of the downturn
88% of global companies say their operating model has been altered by recession, survey found.
The comparisons with a similar study in January also reveal that while the white heat of the crisis has passed, the majority of companies are still focused on survival although there is a significant minority who are looking to take advantage of the situation to pursue new opportunities.
Opportunities in adversity: accelerating the change, finds nearly half of those surveyed (43%) said that their operating model had been permanently altered by the events of the last 18 months. A further 45% said there had been a temporary impact.
56% of the executives said that their risk management processes had been permanently altered, 33% temporarily. For 45% the regulatory framework for business had also fundamentally changed.
Other alterations to their business model – price sensitivity, profitability, competitive sensitivity and economic stability were viewed by respondents as more temporary, although a significant minority – above 20% in each case – viewed the changes here as permanent as well.
“Not only does this research show the permanent impact of the change that has taken place in the last 12 months it also demonstrates how rapid that change has been and how very few people saw this coming. More than three quarters of the executives we surveyed were surprised by both the severity and speed of the downturn”, John Murphy, Global Vice-Chair Markets, Ernst & Young said.
The comparisons with a similar study in January also reveal that while the white heat of the crisis has passed, the majority of companies are still focused on survival although there is a significant minority who are looking to take advantage of the situation to pursue new opportunities.
Opportunities in adversity: accelerating the change, finds nearly half of those surveyed (43%) said that their operating model had been permanently altered by the events of the last 18 months. A further 45% said there had been a temporary impact.
56% of the executives said that their risk management processes had been permanently altered, 33% temporarily. For 45% the regulatory framework for business had also fundamentally changed.
Other alterations to their business model – price sensitivity, profitability, competitive sensitivity and economic stability were viewed by respondents as more temporary, although a significant minority – above 20% in each case – viewed the changes here as permanent as well.
“Not only does this research show the permanent impact of the change that has taken place in the last 12 months it also demonstrates how rapid that change has been and how very few people saw this coming. More than three quarters of the executives we surveyed were surprised by both the severity and speed of the downturn”, John Murphy, Global Vice-Chair Markets, Ernst & Young said.