Strategic Realignment: Business growth through the slowdown

Published 30 August 2024 | 2 min read

As the New Zealand economy continues to grapple with an extended slowdown, the task of hiring new staff has become increasingly challenging. Mistakes in recruitment can be costly, not just financially but also in terms of morale and productivity. In this climate, businesses are not just trying to fill roles but are striving to hold onto their top talent, recognising the strategic importance of maintaining a skilled and motivated workforce.

The pressure is mounting for businesses across the country to reassess their strategies, direction, and shared vision. With the economy showing signs of strain, it’s imperative for organisations to review their business models, ensuring they are fit for purpose in these uncertain times. The challenge isn’t just about survival but about positioning for future growth amidst a backdrop of economic instability.

Uncertainty ahead

The future economic situation is fraught with unknowns. Rising interest rates, potential recessions, and a cooling labour market have created a complex environment for businesses. With each passing month, the need for strategic foresight becomes clearer. How can businesses navigate this uncertainty? What steps are necessary to not just survive but thrive in an unpredictable economic landscape?

The reality is that the road ahead is uncertain, and businesses must be prepared for potential bumps. The current employment trends are a stark reminder of the economic challenges that lie ahead, making it more important than ever for organisations to adapt and evolve.

A reality check

Recent statistics from RBNZ paint a challenging picture for New Zealand’s labour market, with filled jobs declining for the fourth consecutive month as of July. This marks the longest sustained decline since the global financial crisis of 2009. Here are some key statistics that every business leader should take note of:

• Filled jobs decline: Filled jobs dropped by 0.1% in July, following a 0.3% decline in June, extending a slowdown that began in April.
• Jobless rate: The unemployment rate has risen to 4.6% in the second quarter of 2024, with expectations of further increases to 5.4% by early 2025.
• Job losses: Since peaking in March, more than 25,000 jobs have been lost, a 1.1% decline in employment.
• Economic contraction: The Reserve Bank of New Zealand predicts that the economy will contract in the second and third quarters of 2024, further straining the labour market.

For businesses, these statistics are more than just numbers—they reflect the need for strategic pivots and careful planning to navigate through these tough times. A cooling labour market and rising unemployment rates signal a shift in the balance of power towards employers, but this comes with its own set of challenges and responsibilities.

Controlling the long-term

Despite these challenging short term conditions, businesses have an opportunity to take control of their long-term prospects. The current slowdown, while difficult, offers a moment to reassess and realign. By focusing on strategic restructuring and change management, businesses can mitigate risks and set a course for future success. Here are a few steps to consider:

• Streamlining operations and improving resource utilisation can help businesses become more agile and better positioned to respond to market changes.
• Prioritising key talent during restructuring can ensure that the organisation retains its competitive edge.
• Revisiting the organisation’s strategic goals and aligning them with current market realities is crucial for long-term sustainability.

How to realign through change management

The path forward lies in embracing change management and strategic restructuring as essential tools for navigating these uncertain times. At EQ Consultants, we understand the complexities involved in steering a business through challenging economic conditions. Here’s how we help organisations effectively realign for the future:

1. Understand your organisational strategy and goals

At EQ Consultants, we begin by working closely with your leadership team to reassess your organisation’s strategic direction. We help align roles and responsibilities with the evolving business landscape, ensuring that your team is positioned to meet current and future demands. Whether it’s through redistribution of work, redeployment, or even redundancy, our goal is to build a sustainable future structure that places you in a strong position moving forward.

2. Strategic focus on your people

Your workforce is your most valuable asset, and our approach prioritises retaining and developing key talent during restructuring. We believe that every dollar spent on your team is an investment in your business’s future. Our strategic focus on people ensures that your organisation retains its competitive edge, bringing your top talent along on your journey toward growth and success.

3. Well-executed strategy plan

EQ Consultants brings two decades of experience in executing realignment and strategic pivots. We set clear change decisions, timelines, and consultation processes to ensure that the restructure is conducted in compliance with New Zealand’s legal obligations, protecting the rights and interests of all parties involved. Our methodical approach ensures that your organisation is not just reacting to change but proactively shaping its future.

In conclusion, while the current economic conditions in New Zealand present significant challenges, they also offer an opportunity for businesses to strategically realign for the future. By partnering with EQ Consultants for change management and restructuring, your organisation can build a stronger, more resilient foundation that will carry you through this period of uncertainty and into a brighter, more prosperous future.

Learn more about change management

Now is the time to take action, to rethink, and to rebuild. Contact our team today to start transforming your workplace environment with our proven organisational change strategies.