Too few companies have taken or plan to take the long-term, defensive measures necessary to survive and thrive in the wake of the Great Recession, according to a recent Boston Consulting Group survey.

Although businesses around the world are entering 2010 with a sober view of the business climate, 28 percent said reducing labor costs is a priority for 2010, 26 percent have made managing cash flow a priority, 16 percent said balance sheets and debt restructuring are a priority and 13 percent have put exiting noncore businesses on the list of priorities.

These findings are drawn from a Boston Consulting Group (BCG) survey of 434 executives at companies with more than $1 billion in annual revenues in seven countries.

"The slow-growth world that we’re in, and should expect to be in for some time, fundamentally changes the nature of competition. Life is going to be harder," said BCG senior partner David Rhodes. "From now on, every day should be treated as if it were a World Series game — because there will be no more regular season games. What will distinguish long-term winners from also-rans is the resolve to fundamentally rethink and rework business models and, at the same time, be courageous enough to invest in the future of the business."

"Leaders recognize the need both to be defensive and to attack. But when it comes to action, they are poised to attack and invest but seem only to be playing around the edges of cost-cutting. We’re concerned that they’re skirting true, long-term defensive actions," said BCG senior partner Daniel Stelter.

The majority of executives see significant changes in the economic order. Sixty-nine percent believe there will be negative attitudes toward Western capitalism, while 68 percent project lower profit levels and 64 percent believe growth will be more difficult.

In the face of these trends, executives have taken, or intend to take, short-term defensive actions. Between 50 percent and 70 percent of surveyed executives have made moves such as increasing their focus on key customers; reducing administrative and travel spending; renegotiating supplier contracts; and reducing inventory levels, marketing budgets, and wages.

But far fewer have made, or plan to make, more longer-term moves. Only 44 percent plan selective exits from product lines, only 39 percent plan selective exits from customer segments, and only 43 percent have taken or plan to take actions that involve divesting businesses and exiting sales channels.

"Smart companies will have acted quickly and restructured around profit centers and projects," said Rhodes.