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Responding to the crisis-living or departed
Based on extensive research of how businesses have responded to crisis, MTI has launched ‘Trim & Fit’ - a performance-driven consulting solution to help companies prevail (not just survive) during the tough times and seize upside opportunities (www.mtiworldwide.com/trimandfit).

In his launch communiqué, Hilmy Cader, CEO of MTI Consulting states "A common feature of all financial crises that the world has faced over the last 371 years (from the Tulip in 1637 to Great Depression of 1929 to current Global Financial Crisis) is the collapse of some of the strongest companies that enjoyed meteoric rise in the good times. The way in which companies respond to the crisis, is what separates the ‘living’ from the ‘departed’. Most organizations tend to indiscriminately cut costs, freeze all forms of developmental work and adopt a ‘wait & see’ approach. By contrast, the Smarter Companies (we call them ‘Trim & Fit’ companies), while being prudently cautious, use the crisis period as an opportunity to critically evaluate every aspect of their businesses, challenging every dollar and every stroke of work as to the value added. They also see the upside of acquiring low valued assets, strengthening their market position (given lower level of competitive / marketing activity) and gearing their organizations for the upturn"

During the Analysis phase, the risks are assessed, stress tests are carried out and the upside opportunities are assessed - all of which provides the inputs for the core Strategizing phase. This starts with aligning the strategy to meet specific tough times conditions (specifically in terms of rationalizing and de-slacking the business model), followed by taking the ‘fat’ off the processes, before developing a lean structure – all of which is finally driven by ensuring staff are motivated (through win-win initiatives like Performance-based Pay)

Explaining two key features of the model, the CEO of MTI said "Trim & Fit looks first at cost rationalizing based on Vertical Costs (based on a Value Chain P&L) – as opposed to conventional horizontal cost cutting, which runs the risks of cutting off the & arteries’ of the business model! Most importantly, the head count is considered as a last resort (only after the slack in the Strategy, Processes and Jobs are taken out) and even if head count needs to be cut, retrenchment is the last option"

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