Most (75%) senior finance executives don't expect a recovery until July 2010 or later, while nearly half think the economy will actually worsen before its gets better. Increased economic uncertainty, like the Dubai default, makes them think the economy still runs a risk of a W-shaped recession. These are the results of an October poll of more than 140 financial executives conducted by Adaptive Planning.
Why are business leaders so pessimistic? Nearly two-thirds missed their revenue plan in Q2 - more than missed it in the first quarter. Maybe that's why 75% reported economic conditions are the same if not worse than six months ago.
These business leaders are experiencing a shift in the whole way they do business. Nearly 60% say they face high or very high uncertainty now. They are buffeted by an onslaught of unexpected changes to their business, such as bankruptcies of key customers or suppliers, loss of bank loans, and decreasing demand. As a result, they are not confident of their ability to predict the future, making 60% of them reforecast their entire business every month. I outlined the causes of this uncertainty in September in Why the Crisis not Over Even If the Recession Is.
What This Means for You
Although nearly half expect revenue growth for themselves in the near future, only only 14% plan to hire by Q1 2010. In fact, almost 40% expect more layoffs.
This increases the economic uncertainty in your life. These business leaders are learning they need to change their plans every month, to respond to changing and unpredictable circumstances. So should you. Flexibility and responsiveness are the keys to doing well in an economy that has no clear direction. The articles below will show you how.
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