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Ernst & Young interviewed a large of number of managers and owners of companies around the world, first in January 2009 and again in June 2009 [1]. Companies were surprised by the speed and severity of downturn and the impact was more than expected in January 2009. Many respondents feel that the crisis has permanently changed their operating model (43%), the regulatory framework for their sector (45%) and risk management (56%). The compilation of their responses on the impact of and responses to the crisis is quite revealing. The main companies were surprised by the speed and severity of downturn and the impact was more than expected in January 2009; findings can be tabulated as follows

1. About 82% of respondents still having difficulty in accessing credit and this is impacting upon their investment strategy
2. Companies are facing heightened concerns over risks while managing their assets, and over likelihood of more regulations
3. Almost 9 out of 10 accelerating cost reductions through review of capital investment and employee reduction but only 67% have been in reducing costs, particularly through IT and real estate.
4. Companies using this crisis to outsource (23%) and for strategic acquisitions (34%). About 32% are disposing of assets to increase cash and liquidity.
5. Only 19% see growth returning during second half or 2009 and 38% in 2010.
6. Remaining respondents feel that future is bright later on.
7. In January 2009, only 20% planned for entering new geographic markets but by June 2009, 33% expect to.

[1] Visit the Ernst & Young website for more information about Opportunities in adversity: Accelerating the change