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Recession the catalyst for change

09 December 2009

The recession will reshape business behaviour well into the next decade according to an organization representing UK business leaders.

Launching its report, entitled The Shape of Business - The Next 10 Years, the CBI said that the recession and credit crunch had become the catalysts for a new era.

The report flags four key areas of UK business where fresh approaches will develop because of the downturn. These include a shift attitudes towards high levels of debt. It says firms will look to alternatives to debt-driven growth to protect investment and innovation.

Companies will also reorganise and re-examine their approach to working with partners - from suppliers to universities, and even competitors - as ongoing concerns over a 'domino effect' of supply chain failures and issues around trade credit insurance will compel firms to forge more collaborative relationships.

Sustainability and ethics will become more integrated into the business model and a more flexible workforce will evolve, assisted by developments in technology and training. This will build on the spirit of collaboration between employers and staff which has grown during the recession.

Richard Lambert, CBI Director General, said businesses now need a more balanced, less risky pathway to growth - one in which the short-term returns may be lower, but the long-term rewards for management success will be a lot more sustainable and secure.

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