Mark Poole, Senior Advisor – Virgin Group, reveals the seven steps he took to steer Virgin through the recession into recovery.

1. Recognise the need to execute relevant actions as early as possible in view ofthe rapidly changing market conditions.

2. Maximise liquidity – both cash outflow steps to shrink business where necessary and cash inflows through portfolio realisation or debt financing, both centrally and at operating level.

3. In periods of downturn, recognise “cash is king” early on, even if this means changing corporate direction. Do not be afraid of taking bold decisions for the greater good.

4. Failure to take appropriate actions is not an option. Strategies have to be dynamic to move with market conditions. Nothing is sacred in a market downturn.

5. Reappraise all business lines to assess continued viability. Review their working capital models to improve their available cash resources.

6. Ensure appropriate hedging strategies (fuel, currency and interest rates) are executed effectively to minimise downside risk scenarios. Market volatility is out of business control – lack of action can be catastrophic.
7. Be as open as possible with staff. Transparency goes a long way to aligning the workforce to revised strategies.