From Surviving to Thriving

The Challenge for Businesses in 2009

As the media so regularly remind us, we are in an economic downturn. If you are under 35 years of age you will not know what a downturn is like. Equally if your business is less than 15 years old, it will not have faced the challenges posed by this phase of the business cycle in which the economy as a whole is in decline.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner or manager, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage proactively, rather than reactively.

Here are seven challenges for businesses at the outset of 2009

1. Building a company that can change as fast as change itself.

Just look at how the business environment has changed in the last 18 months. If you are old enough, think of the amount of change in business between 1960 and 1980. Now look at the changes in business and in life in general between 1980 and now. There is no comparison. Mobile phones, PCs, cheaper travel, the internet, globalisation, more educated consumers, the list goes on. Change over the last 20 years has been rapid and expediential. Up to now it has been the companies that manage this change best that thrive. Going forward it is the companies who change as quickly as change itself that will thrive.

2. Get outside your comfort zone

If the rules of the game have changed, you need to change.
In bullfighting there is a term called querencia. The querencia is the spot in the ring to which the bull returns. Each bull has a different querencia, but as the bullfight continues, and the animal becomes more threatened, it returns more and more often to his spot. As he returns to his querencia, he becomes more predictable. And so, in the end, the matador is able to kill the bull because instead of trying something new, the bull returns to what is familiar, his comfort zone.

3. Making innovation and idea generation everyone’s job every day.

Innovation is one of those words that is bandied about in business, but few businesses can be classified as greater innovators. Remember innovation is not just about inventing or creating new ideas, it is also about examining existing practices and asking ‘how can we do this better?’

Here is a quick test to see how your business stands up as an innovator.

• Firstly, ask staff, ‘if they have an idea, what happens?’
• Secondly, what training takes place on innovation?
• Lastly, does anyone care whether you innovate or not?

4. Making sure the people are inspired

Passion, creativity and initiative are qualities that the people in your business volunteer. You can hire for intellect, but tapping into people’s motivations is dependent on the organisational culture that you as the business manager or owner create. As the person in charge you can demand diligence and obedience from staff, but that is an out-dated view of management, one that was designed over 100 years ago when people first moved from the farm into the factory. Today the aim of management is not just to get people to serve the organisation’s goals, but to create a great place to work so that people will volunteer the best of themselves.

5. Getting people engaged

In a recent global workforce study carried out by Towers Perrin it was found that 15% of people are highly engaged in their work, 63% moderately engaged and 21% were disengaged. Into which category would you place your people?
Here is a challenge for you. If you wanted to engage your staff more, what could you do in two hours with a budget of just €50?

6. Communicate, communicate, and communicate

Don’t try to do everything yourself. Solicit ideas and seek the help of other people (your staff, suppliers, customers). Communicate honestly and consistently. In challenging economic times, new conversations are needed. If necessary, level with your staff and ask for their assistance. Do some brainstorming on ‘how can we make our strengths even stronger?’ ‘What’s not working well?’ or ‘How can we boost sales?’ You never know a gem of an idea could surface. More importantly staff will feel involved. Challenging times can bond staff into tight teams, as people know that greater co-operation, more focused effort and flexibility are needed, if the storm is to be weathered. Effective two-way communication is the key.

7. Re-focus your attention on your existing clients/customers

Make customer satisfaction and delivering a quality service your priority. If possible consider long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers happy and loyal.

Finally, always focus on what you can control. Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on managing your company’s business activities.

 

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