Plotting your Course in Uncertain Times
Thursday, October 23rd, 2008
Do you have trouble seeing the silver lining in times of great uncertainty? You are not alone. In dire situations, many people are tempted to pull the plug on all initiatives. They’re more comfortable taking a step back and waiting to see where the chips will fall. While there is merit in being cautious in a serious economic downturn, there is also high risk that taking a wait-and-see stance will leave you poorly positioned for new opportunities that will arise when once the economy begins to turn. And, if history repeats itself, it is likely that the downward economic spiral will be followed by a period of rapid growth.
So, what business issues should federal contractors assess now to be well prepared for the brighter days ahead? Click below to find out.What impact will the replacement of political appointees have on your current and prospective agency customers? According to the Committee on Oversight and Government Reform, the number of political appointees rose from 1,229 in 2000 to 1,640 in 2005 – a new record. Regardless of which direction this trend takes under the new administration, it’s vital for contractors to have a clear understanding of the likely impact new appointees on the focus and strategic direction of targeted agencies.
How is the current crisis impacting the strategic direction of the agencies you serve? As the government continues to channel extraordinary sums of money to address the financial crisis, discretionary spending will obviously decline, leaving agencies with fewer dollars to meet their missions. Moreover, those dollars will be more difficult to earn as agencies try to do more with less. Does your company know which programs will be affected? And, more importantly, do you know what portfolio, business development, and marketing strategies would be most effective in ensuring your government solutions are more compelling than competitors?
How will the tidal wave of retiring federal employees impact agencies, and what opportunities might this trigger for you? As the baby boomers become eligible for retirement, agencies will be facing tremendous challenges related to loss of man power and of institutional knowledge as well as the need to quickly fill those roles and increase operational efficiencies. With 36% of federal employees eligible to retire in 2010, contractors face an increasing number of opportunities to strategically position themselves as key partners that can ease the pain of these transitions. (GAO, 2001; OPM 2008)
How will the needs of agencies change once capital begins to flow again? Waiting until after this crisis is over to clearly understand how the market’s product and service needs are likely to change will put you way behind the 8-ball in terms of market readiness. Though customers may not know for sure how their requirements will change, they can likely make some smart and well informed assumptions on which you can take action.
These are just some of the issues we encourage our federal contracting clients to explore as they consider new paths for success in these uncertain times. Whether it’s talking directly with key customer contacts for assessments of their situations, hiring an experienced market research firm to uncover the hidden market opportunities, or both, collecting the intelligence needed to make informed strategic investments is required for prosperity in any economy.
