Are We There Yet? Finding an End to the Recession

Michael R. Wood is a Business Process Improvement & IT Strategist Independent Consultant. He is creator of the business process-improvement methodology called HELIX and founder of The Natural Intelligence Group, a strategy, process improvement and technology consulting company. He is also a CPA, has served as an Adjunct Professor in Pepperdine's Management MBA program, an Associate Professor at California Lutheran University, and on the boards of numerous professional organizations. Mr. Wood is a sought after presenter of HELIX workshops and seminars in both the U.S. and Europe.

  Strategy  

In February 2009 we focused on things IT can do to survive the recession.  With any luck, 2010 will usher in a formal economic recovery.  But like politics, most recoveries will be local, industry by industry, company by company.

Most CIOs have a huge pent up demand and backlog of projects just waiting for management’s willingness to spend the monies needed.  In addition, CIO’s know that once the purse strings are loosened management and users will want improvements more like yesterday than tomorrow.  Therefore it is imperative for CIO’s to see the warning signs and begin positioning their organizations to hit the ground running once budgets are available.

So how will you know if the recovery is upon you and the time for growth is at hand?  Here are five signs to watch for.

1. Investments in Inventory Grows
Even though sales may be going up, management may not trust the trend.  However, when they begin anticipating growth in demand the purse strings will open up for purchasing to begin increasing the investment in inventories.  This investment indicates that management is optimistic about the future and that they feel it is safe to get back into the economic waters.

2. Three Consecutive Months of Bottom Line Growth
A precursor to inventory growth is the ability of the organization to take more top line revenue…

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