The global economy continues to be in a state of challenge, with all signs pointing to a pending recession. As a leader, I have always found it’s important to get ahead of economic volatility and make changes based on what you can control when there are so many factors that will always be beyond your control.
These are a few key areas to take a look at:
When I talk about headcount, I am not necessarily talking about layoffs, but more so, taking a critical look at whether the right team members are in the right roles. To do this, it’s important to consider how effectively tasks are being completed and consider if rearranging roles and responsibilities could benefit output and productivity. It’s also important to identify if any key roles are vacant and should be filled to eliminate rework and inefficiencies, which often cost corporations more in the long term than the right additional hire.
The topic of outsourcing and automation is interesting and while it can often be effective, it can also create redundancies. I try to look at all of our vendors quarterly to ensure I have a clear understanding at all times of who is doing what, if we are paying fair market rates and if any work can be consolidated. It can also be a common issue for too much outsourcing to create inefficiencies with full-time employees managing suppliers versus getting to their own deliverables. In my experience, a hybrid approach that evolves with the growth of your business is most effective.
Office space and rent
Rents in the GTA are sky high, and mortgage rates are soaring. If you don’t already fully own the real estate from which you operate, carefully evaluate exactly how much space you need and the best geographic location. Eliminating any leases that are no longer required can produce tremendous savings that can remain in the corporation or fund new, strategic investments.