For Canada’s most senior business decision makers, the key to surviving an economic downturn is clear: focus on opportunity.

In a report released this week that surveyed 100 Canadian presidents and CEOs, organization leaders cited ‘targeting new revenue opportunities’ as the highest ranked tactic to weather the current economic climate. This was also identified as the single most important initiative being undertaken within individuals’ own companies, manifested through new product development, channel expansion or targeting new markets.

“It is clear that leading presidents and CEOs recognize that you can’t cost-cut your way to prosperity, and that it’s equally important to focus on new revenue sources,” says Steven Pezim, co-managing director of the Bedford Group, a Toronto-based executive search firm.

The report also indicated an investment in top talent as a priority at each organizational level to ensure success. Although downsizing is often inevitable in a recession, restructuring commonly creates new positions and provides unique opportunities for true leaders to emerge; while 30% of respondents are currently looking to downsize or restructure their current leadership team, a full 38% are looking to upgrade marginal contributors with top talent.

“It takes a specific type of leader to succeed in this climate, says Howard Pezim, co-managing director of the Bedford Group. “Maintaining an unwavering, forward-thinking vision, instead of just reactionary tactics in a recession, is what separates inspired leaders from the pack.”

Among the reports key findings:

> 70% of respondents identified ‘engaging staff with a clear vision for the company’ as a fundamental driver to effectively inspire talent during challenging times when layoffs are frequent and employee morale is low.

> highlighting the significance of a strong internal team, 32% of organizational leaders identified a focus on employees and core competencies as the most important initiative to undertake during a recession.

> increasing advertising and marketing was the eighth and lowest ranked tactic to employ in a recession, just behind investing in work culture, which ranked seventh.

> a focus on customer loyalty, with attention to building and strengthening consumer relationships, was the second highest ranked action to deal with a turbulent economic climate.

> despite the opportunity to acquire undervalued assets during a tight economy, acquisition as a growth strategy had limited appeal, with just over 5% identifying it as a priority.

The report was compiled by Bedford Consulting Group and reflects responses in December 2008 and January 2009.

IE