Three tips for dealing with a downturn!

[Peter Hewkin]

- Broaden your revenue generating options, watch which ones show promise & amplify them
- Draw on commission only/part-time resource .. paid for when you need it
- Get out there and sell 'how to deal with a downturn services'

What are your three?

[Neil Davidson]

Here are my four:

- Figure out how the downturn is going to affect your customers, and judge if the buttons you need to push are going to change. Are your customers going to value productivity over usability, for example? How do you need to change your product, or your marketing?

- Reexamine the justification for the projects you're running. Sacrifice *some* long-term gain in return for short and medium term wins.

- Stay optimistic, but not sillily so.

- Don't panic.

[Hayley]

This may seem a little obvious to some but from recent discussions with some employers it's something that isn't always the first thing to come to mind, so I thought I would share it.

Employee Engagement - at it's very simplist this means communicating with them, talk to them about how much you need to save, new products, effiiciencies, and how to get through this as a team and as with all communication LISTEN to what comes back from them! This doesn't mean you have to implement it all and do business by committee but allow them to contribute, where they have great ideas, then obviously use them, no idea is silly but it might need tweaking to suit your needs so explore them fully.

As those at the direct 'coal face' they are best placed to know how you can become more efficient, save costs and if feeling valued themselves will ensure your customers feel valued and get the best service, even it's it's not necessarily the cheapest product. This will not only build employee loyalty but just as importantly customer loyalty!

Treat them how you would like to be treated yourself - this sounds so simple but invariably we forget in the peak of difficult times. Be open and honest, share the problems that you face as an organisation, share the ideas and solutions that you have even if they aren't the finished version, they will more than likely help you find the right solution. As they are most likely to be directly affected by any changes it's important to get their 'buy in' so that they can implement the changes with conviction rather than begrudgingly.

Don't knee jerk for a quick win - you need to be fighting fit to come out the other side and be responsive enough to respond when the markets pick up again.

[Waclaw Slezak]

'you need to be fighting fit to come out the other side' - this is something i hear all the time from all those speaking out in the media.
Hej, where were they on the so obvious road to the down turn?
Fighting for survival or blind and stuck in the groove and rut of day-to-day doing their business. The latter usually.
There will be many corporate corpses on the market battlefield. A Manager is like a General, fully dependent on his troops ready to implement the tactics to victory. In victory the general takes all the glory and medals, in business success the CE takes all the glory and bonuses. The troops get rather forgotten. Casualties and redundancies are high among the troops.
I am wondering how much respect there actually is among the troops to the leaders.
Self sacrifice is called for but are the leaders in government ( fighting to save John Lewis) and in businesses sacrificing enough to inspire the troops? Not at all.

So Tips for the Downturn:
1. Lead by example
2. Inspire by actions and do not be a petty cost cutter as so often managers are
3. Reward those performing ( in whatever function they have) - early and visibly.
Saying there is no money is the most de-motivating message to employees
Saying there is money-now- for exceptional performance is very motivating

[Kate Atkin]

Some of my thoughts are:
1. Keep your eyes and ears open to opportunitites.
They exist even in the worst of downturns. If you think it's going to be bad for your business, it will be. Keep your brain working to seek out the opportunitites and avoid the scotoma effect.
2. Keep staff, customers and suppliers informed.
If people think you are hiding soemthing, they get nervous. No communication is often interpreted as negative communication, even though you haven't said anything! So keep people up to date, even if it is to tell them you have nothing to tell them.
3. Stay positive in youself.
Surround yourself iwth others who are positive. Misery loves company and can drag you down. Winners and winning businesses will be with others of a like mind.

[Kate Atkin]

Kate Atkin said:

Some of my thoughts are:
1. Keep your eyes and ears open to opportunitites.
They exist even in the worst of downturns. If you think it's going to be bad for your business, it will be. Keep your brain working to seek out the opportunitites and avoid the scotoma effect.
2. Keep staff, customers and suppliers informed.
If people think you are hiding soemthing, they get nervous. No communication is often interpreted as negative communication, even though you haven't said anything! So keep people up to date, even if it is to tell them you have nothing to tell them.
3. Stay positive in youself.
Surround yourself with others who are positive. Misery loves company and can drag you down. Winners and winning businesses will be with others of a like mind.

[Vandy Massey]

Great points, Kate - especially number 2. Strong communication is never more essential than when times are challenging.

Kate Atkin said:

2. Keep staff, customers and suppliers informed.
If people think you are hiding soemthing, they get nervous. No communication is often interpreted as negative communication, even though you haven't said anything! So keep people up to date, even if it is to tell them you have nothing to tell them.

[Rosemary Green]

All excellent comments so apologies if some of this is repetition!:

1) People: whether they be employees or customers, show genuine empathy and concern (see CIPD report "Engaging Leadership" www.cipd.co.uk ) Quote from Richard Branson "The key to being a good business leader is how good you are with people. ...It's your people skills that will set you apart."

2) Keep Growing. Focussing on financials alone will only take you so far. Keep developing yourself and others - and don't cut that training budget!

3) Stay connected. share your problems, (a problem shared is a problem halved....) ideas and friendship with peers and networks - reach out and help each other where you can.