IE Focus, March 2009 | By Jorge Diezhandino. MBA part-time 2005, IE Business School; Senior Consultant at Alfa Consulting
There are no magic bullets here. The only cure for the virus that has infected the economy consists of reinventing companies so that they produce more using the same resources.
Except for the odd diehard optimist, nobody has any doubts now that the present financial crisis affects all of us to a greater or lesser extent. The banking sector, the construction sector and the car industry all show signs of the effect it has had on their bottom-line results and, in turn, on their workers´ pockets. Furthermore, the effect is spreading and many are now making disastrous forecasts for the ancillary and services sectors.
According to José María O’Kean, Professor of Economic Environment at IE Business School, “there are elements in Spain that can help mitigate the immediate crisis, such as tourism and, to a certain extent, exports, but the model is still one of low-level productivity”. Indeed, as far as the present situation is concerned, replacing the construction sector with the tourist sector and support from exports is logical, but maintaining such a low-productivity model means not only failing to improve our business sector’s competitiveness, but also increasing the difference with those who, in this environment of change, are doing just that. Consequently, only the businesses that successfully assume the change required for improving their productivity will successfully overcome the crisis and come out strengthened at a time when, more than ever, it is essential to reduce costs on the value chain.