One might think that these economic couch potatoes would be easy to spot, however in my experience, it is often the champagne swilling prize fighters of economic booms who are left by the sidelines when the going gets tough.

Record profits during the good times are not necessarily an indicator of a healthy business; just look at the hangover banks are suffering following their asset-backed securities binge.  They can disguise a multitude of problems waiting to be exposed.

it is often the champagne swilling prize fighters of economic booms who are left by the sidelines when the going gets tough.

There are key areas on which businesses should focus to ensure they can survive a turbulent or stagnant economy, by reviewing efficiency of supply, production, distribution and workforce, directors can identify areas for improvement and fix them before they become major problems.

When cash is pouring into the coffers, the amount being lost through wasteful business practices can go unnoticed.  But when times are harder these leaks become critical; any board losing sleep over impending poor results should seriously consider a review of their business practices - it could make for a much healthier looking balance sheet.

I was working recently with a large well-known retailer which was concerned about waste; I identified that their internal purchasing procedures were very poor - staff bought whatever they needed from wherever they chose and simply handed in the receipts to be reimbursed. 

By implementing a centralised purchasing system and negotiating favourable terms with preferred suppliers, the business saved millions instantly.

Reducing waste is often misused as a euphemism for mass redundancies; it may indeed be necessary to reduce the size of the workforce, however directors should also consider whether staff are employed in the most efficient manner; is money being wasted on unnecessary training at expensive hotels? Are talented teams tied-up working on outdated projects? Do they enjoy too many perks?

Employees will understand that times are tough and will prefer job security over perks and bonuses they may have enjoyed in previous years.

It may seem as though I am stating the obvious here, but I am constantly surprised by the inefficiencies which exist in many businesses I work with.  Inefficiency is not necessarily a product of bad management but simply down to the fact that when you work as a component within a business, it is difficult to view it objectively. 

Looking at a businesses as a whole, one can see how small improvements in many areas can transform the overall performance.

The success of "Team GB" at the Beijing Olympics may have taken some of us by surprise, but to the athletes and their support teams it is further proof that their programme of improvement over recent years is really starting to reap rewards.

Olympic 400m gold medallist Christine Ohuruogu was asked what she considered had been the defining area in her preparation which had driven her to world-beating success; her answer was simple - there was no one defining factor.  It was the result of the best use of limited resources in every area, the constant tuning of physical training, diet, sleep patterns and mental fitness, to help her bring it all together when it mattered.

striving to get the best value from the business to maintain efficiency even through the good times to ensure we avoid embarrassment in the bad.

By getting the business into shape now, reducing waste and increasing efficiency, directors can equip the company to become a world beater and market leader regardless of the economic conditions.  And it should be a constant process, always striving to get the best value from the business to maintain efficiency even through the good times to ensure we avoid embarrassment in the bad.

We are currently offering a free consultation with some of our most experienced interim managers, to help directors identify areas of improvement in order for them to implement a fitness regime for their business.  This is a unique and risk-free opportunity; This e-mail address is being protected from spam bots, you need JavaScript enabled to view it