Moving Forward in Tough Times

The current uncertainty of the economy continues to languish as the government shutdown grinds to an end right before the holidays and yearend. And business leaders everywhere in all sizes of companies in most every industry are grasping for help, relief, and guidance. Here are a few basic tips that may give some focus.

1. Focus on what you can control. Protect your financial position first … your financial stability and flexibility. Focus on cash … earnings are nice but cash is more important. Get your key people together and figure out those things you can do something about and start doing them immediately.
2. Find something positive you can talk to your customers about … a new product, an innovation … a product extension … new and improved … anything that allows you to go out and talk to the customer. The customer is the key to your business, therefore, find a means to keep connected and be engaged even if they are struggling.
3. Objectively analyze your business … continually. The one constant is change … so be a change-agent yourself by being realistic about your business and what is changing within your industry, with your competition, with your suppliers, with your customers, with your employees … constantly. Don’t underestimate the importance of this. Think of new ways to engage customers and monetize products. Uncertainty or concern can cause markets to be in disarray and you need to be alert to the slightest opportunity to move forward in a positive manner. Start zero-based budgeting in every department to eliminate any duplication or unnecessary function … cause efficiency.
4. A key leadership principle is communication. When you have an aligned team that understands very clearly the goals and tradeoffs of going through a survival mode to attain an opportunity to thrive in the future, that’s when things can happen positively and your team becomes cohesive and progressive. As the leader, you have to get the attention of your key team members. And that can be a very hard thing to do with all the noise and distractions in the world today. But getting through to your key people and further down into the structure is vital because their natural tendency is to “hunker down,” hoping the crisis will pass and “everything will be back to normal.” You have to show and tell how you and they are adapting to the “new normal.” You and your leadership team have to get out in front of the troops with a consistent message. This is not something you should delegate … you need to be out front. If you aren’t willing to get out and communicate the tough issues, then the credibility of your organization is always going to be called into question. Stay on message … consistency is important. Today’s economic uncertainty and lack of government leadership has made the task more difficult, but maintaining straightforward communication is more critical than ever in today’s business environment.
5. Last, but definitely not least, is to maintain pride around the company and its mission. A bad economy gets people confused about what the mission is. They start thinking the mission is to reduce cost … that’s a tactic, that’s not part of your mission. You have to realize your people are scared and want direction … from the top to the bottom. Make sure everyone understands the mission and how their daily and weekly activities fit the company’s broader purpose. This is essential in reducing fear, maintaining morale, and keeping employees motivated and committed.

What suggestions might you share in dealing with these tough times?

You comments and suggestions are always welcome.

© Phil Hoffman 2013. All rights reserved