40% Of Senior Managers Question Credibility of Their Company’s Plans to Navigate Crisis

A new survey has found that companies—whether financially weak or strong—are struggling to make the right moves in the current economic environment, with many wavering in their confidence of leadership’s ability to navigate the crisis.

According to the survey, 40% of senior managers doubt that their leadership has a credible plan to address the economic crisis, while an even greater number—46%—are not sure that their leadership could carry out the plan, credible or not. Additionally, one-third of all CEO and CXO-level respondents do not have confidence in the plans that they presumably wrote themselves. Further, a remarkably high number of hard-hit companies—65%—are not doing enough to ensure their own survival, such as accelerating efforts to dispose of assets or secure external funding. Among companies that state they are financially strong, one-quarter are not taking advantage of opportunities to improve their position in the crisis.

While more than half (54%) of the managers expect their companies to emerge from the crisis stronger, the survey finds their optimism doesn’t square with their balance sheets; there is a disconnect between many companies’ financial/competitive position and strategic response. “Companies have focused on the near term, some at the expense of the long-term opportunities. The strong need to go long. They need to create a view of new industry structure,” said Bill Jackson, Booz & Company Senior Partner. “Many strong and stable companies are playing things too short-term oriented for the moment. The really struggling and failing companies have reacted dramatically and some have already moved into bankruptcy.”

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