Recession-Proof Your Business Ideas
The recession is here…okay, call it a slowdown. What is more important is that we share ideas that help us weather this storm, land on our feet and become stronger in the process. We will post our ideas and ideas from others - great things for you to consider in dealing with the challenges that come with a recessionary period. Our approach is always part cut (the waste) and build (the value).
Consider the following:
• Review all employee-related expenses and assess those that do not make a significant difference to the employee; survey employees to determine the benefits that have greatest value. Cut those that do not add value; build value by adding small high-impact benefits at a time when the rest of the business world is cutting. The positive emotional response to an “addition” at the time of cuts cannot be underestimated.
• Cut wasteful perks such as company meetings with no real agenda, or golf or social outings with limited (business) purpose. Instead, build by hosting a sales or company meeting with a clearly defined profit purpose; use a powerful performance speaker and create specific individual performance requirements from the meeting. Follow up with employees and work to implement changes. Cut the bar bill and the fancy meals; build performance by spending on speakers, coaches and tools to build performance, then hold employees accountable for using what they learn to invent new ways to drive results.
• Be honest with employees about difficult times; share the numbers so that employees understand the critical financial picture. Many times employees are willing to make cuts and changes when they see the reasons and are given the facts. Cut limited and hearsay communications by not being proactive or honest; build rapport by being honest with employees and sharing the facts. Also, send a letter to employees’ homes to be sure accurate information is shared with families as well. Employee loyalty is affected by what spouses and partners feel about the organization.
• Use this time to regroup with employees; refocus on your mission, cost, differentiation and value advantages. Know your core competencies –the things you are great at – and refocus on these. Spend time with your mission statement and strategic objectives.
• Change the rules with your employees; activate them to own the solutions that will drive success in the recession. This is a thinking economy; have employees start to propose ideas, invent, review and assess every aspect of the business for change, cuts and improvements.
• Host company or department “state of the business” meetings to share accurate information with all employees. Answer questions honestly and be available to discuss things one-on-one.
• Poll employees to see their areas of expertise. Start an education program using the talents of existing employees to expand what all employees know. Success happens when employees’ minds are constantly opened by new ideas.
• Start “Urgent!” or “Hot” company or department programs to address critical areas and to combat the effect of the recession. Build a program to rally employees and the company around a current issue. Consider “Keep’em all” - a program that has the goal of not losing any customer or employee during the recession. Or, “Perfect in Imperfect Times” – a program to insure that service or products are 100% perfect at delivery – no excuses. Invent yours.
• For inspiration, buy The Pursuit of Wow by Tom Peters (or anything by Tom Peters); no one presents “blow up thinking” like he can. And in a recession, we must be ready to blow things up and reinvent.
• Create an employee “solve this problem” network or culture. Post weekly problems that affect the business, brought on by the economic slowdown and solicit employee input. When asked to participate, employee feel more valued, engaged and connected to owning solutions. More gets done with fewer people. Ideas are stronger and more innovative. Employees feel valued. Don’t cut; instead build a power problem solving team.
• Find a great business article about someone or a company that did something different. Check out Entrepreneur, Fast Company, Inc. or any other magazine (it does not have to be business related). Have your team or the company read the article and then meet to discuss. How does the article talk to your particular issues? What did they do well – and you can do it too. What does the article make you think of? Try this to engage employees and encourage them to own the solutions to any economic slowdown.
• Focus on CORE - set up a program that employees identify what it is that your organization is fundamentally the best at. Confirm what your core advantage areas are and look to insure that each has been maximized. If it is in service, then consider starting a customer newsletter or place a large ad that highlights the quality of your team - what they know, how they respond and how they build relationships. If it is your product, then drive business to it with a more aggressive marketing plan. The way to beat the recession is not to dilute what you do but rather to find your strengths and then exploit them. Solicit input from your employees.