Position your business to prosper during economic recovery

Leading economic indicators show signs that many distribution sectors are stabilizing and are on track for recovery in 2010. The unforeseen force and speed of the economic downturn sent many companies reeling, rapidly retreating to a cost-reduction, survival mode. While the recovery is forecast to be slow and varied by sector, a dogmatic, "let's get through this" state of mind is a paralysis-creating mindset companies can ill afford.

History shows that companies focused on cost-cutting strategies during a recession seldom emerge as market leaders. McKinsey & Company, the prestigious international consulting firm, examined the pattern of declines and recoveries during recent recessions dating back to the 1970s. The February 2009 McKinsey Quarterly points out that in past recessions "businesses that followed countercyclical patterns of cash utilization and spending fared much better than those with purely defensive strategies."

Given the uncertain economic climate, mapping a strategic recovery plan is no easy task. There is an overarching sense that this recession means paradigm shifts of fundamental proportions, challenging the old ways of doing business. For companies to emerge stronger, increase market share and prosper when the economy recovers will take not only a realistic assessment of the business environment but also a serious, accurate self-diagnosis of operational capabilities, technological competence, skills, knowledge, flexibility and competitive positioning.

Here are nine reasons to start now.