While there may be some early signs that the global economic recovery has begun, we’re not out of the woods just yet. The “Great Recession” has fundamentally changed the way businesses organize and measure success. and recalibrated supply markets, introducing new cost and operational risks that businesses cannot overlook. It has also created new state of normal for business — one in which supply volatility, capacity constraints, and global uncertainty will be commonplace and must be carefully managed.

The concept is now beginning to enter the broader public dialog. Recently, there have been multiple references to the New Normal in both the mainstream and business media:

• The Economist
• Allianz Capital: “Europe’s adjustment to a New Normal”
• Europeanvoice.com: “The New Normal could be messy and inefficient”
• BusinessWeek: The New Normal

European Spend Management professionals have been learning to cope with (and succeed in) the New Normal for some time. Examples are numerous:

• MWBrands
• ENE Homes Leeds
• Swisslog
• Carphone Warehouse
• Aviva
• Carlsberg

To prosper in the New Normal with its reduced resources, increased reliance on partners, and lower tolerance for error, organizations need to be able to more rapidly respond to changing situations without the typical lead times and permanent investments. They will do this through on-demand access to the capabilities, technology and community they need to serve their customers that can scale with their needs.

Agility is the key to surviving the current downturn and thriving in the post-recession European business landscape.

Ted Kondis is Vice President of Services for Ariba’s European operations.