Enterprise Architecture — Adjusting to a Recessionary Period

As the global economy looks likely to enter a recessionary period, we can anticipate that companies will:

• reduce or eliminate employee hiring
• reduce contractors
• reduce corporate budgets and more carefully watch expenses

In previous prolonged recessions, we have also seen companies ‘manage out the bottom x%’ of employees.

Entering a recessionary period is typically a gradual process — a downward spiral that takes time. Some companies will more quickly “tap the brakes” on spending and hiring in anticipation of a recession — other companies will be more optimistic and continue to spend and hire until they see direct impact to their sales.

As such, your company’s adaptation to a recessionary period will evolve based on how specific business results are affected. As a recession becomes more evident, we will see a more consistent approach across most companies.

How will Enterprise Architecture adapt to a recessionary period?

Business Transformation → Business Optimization

I anticipate that the popular focus on Business Transformation over the last 5 years becomes more of a focus on Business Optimization. A confluence of factors, such as headcount constraints, budget reductions and a need to focus on profitability, will move most…