We have seen significant changes in the way that company strategies have developed over the last few years, and 2016 is going to see even more seismic shifts in the business landscape.
One of the primary reasons for this shift in business strategy is the economic collapse of the late 2000’s, which caused companies to entirely re-evaluate the way they were being run. The crisis exposed vulnerabilities in their operations, and in order to insulate themselves, firms - especially financial institutions - changed their strategies considerably.
Recent predictions from the RBS bank in the UK suggest that 2016 may see these new strategies really put to test, with significant potential for financial trouble.
In their report, RBS claims that investors could face a ‘cataclysmic year’, with the stock markets falling by 20% and oil dropping to $16 per barrel. If this happens, we will really see if changes that companies put in place over the past 9 years made any actual positive difference, or whether firms were simply re-arranging the lifeboats on the Titanic as opposed to adding more.
If RBS’s predictions are to be believed, then it will be a challenging year for many companies. After a period of growth, even if it was insignificant, it will be very interesting to see organizations cope with intense challenges. Leaders do not become famous for their work when everything is easy, they become famous for how they face up to adversity. The reason that Winston Churchill is still seen as one of the greatest world leaders is the work he did during World War 2 - not the work he did in his second spell in charge. If another financial crisis does come to pass, 2016 will be the year that the true leaders are recognized, not just those who managed to get billion dollar valuations in a friendly market.
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