"Cash is certainly a priority in a crisis. And cash is certainly more valuable than profit that is tied up in working capital. But financial measures including cash are outcomes of many activities along the value chain.
When trading conditions are challenging, there is a danger of making false economies in the interest of making cash savings. Costs should certainly be controlled to ensure the efficiency of business operations. Unfortunately, those costs which relate to improving the company’s competitive position can seem more discretionary and are often deferred.
Competitive position must be continually developed if its success is to be sustained. Research over many cycles has confirmed that organizations with the best prospects of emerging successfully from any recession are those which can balance cutting costs to improve operating efficiency with continuing to invest to develop their competitive position. Achieving this balance is a challenge."