Today’s uncertain economic environment and dismal outlook requires managers to take a different view of their responsibilities. The pressing question is, “What actions can I take that will allow me to survive the uncertain times and simultaneously strengthen my business?” Don’t settle for less than a solution that will allow your business to take off quickly when the times get better. Our business experience has taken us through three significant recessions. Although you never know how deep or how long the current economic crisis it is being described as a potential disaster. As a leader of an organization you should be taking some steps to prepare your organization and the employees in it. We have identified a three step planning process that will improve your business with minimum investment that will set the stage for improved results when the market turns:

1. Strengthen your marketing focus and processes without increasing costs
2. Add value and capacity to your firm’s infrastructure
3. Lead through the crisis not to the crisis

Strengthen your marketing focus and processes without increasing costs

There are several areas that I consider marketing’s responsibility that are often short-changed when times are good. Extra time spent on understanding your customers and potential customers and how you communicate with them are excellent ways to maximize your business during tough times.

• Deliver Exceptional Customer service
• Tighten your target focus
• Leverage your referral network
• Expand your reach using effective, low-cost, electronic communication

Add value and capacity to your infrastructure

There is no reason for your business to stop improving during this period. I often work with clients to make sure that their infrastructure is ready to accommodate growth. This work is usually done with and by vital employees who are often too busy to take care of the capacity and efficiencies available in their own areas.

• Search for ways to become more operationally efficient
• Capture intellectual property that will continue to add value for years to come.
• Build your management cohesiveness and sense of team.
• Insist on fact based analysis and decision processes. Get them training on analytical tools and processes.

Lead through the crisis not to the crisis

None of us can predict the future but what we all know is that it is important to give your employees the confidence that they need to stay productive and focused on the opportunities this time provides for them. Your role as a leader is to keep them motivated and contributing.

• Focus on maintaining high levels of morale. Find the silver linings and communicate them to your employees.
  • A Gallup poll reports that 50-70% of your employees look to you for cues on the organization's climate; your attitude and behavior is infectious: be positive, and your company will follow. 
  • People do their best in a positive state of mind: optimists have higher sales levels and lower turnover.
• Look beyond the crisis to a better day - Consider acquisitions of timid competitors
• Set realistic expectations for everyone. Give all employees goals that they can reach.
• Don’t be naïve and delay necessary cost savings measures. Prepare for a calendar driven implementation of a cost reduction effort. Be prepared to “Blast” your organization – Build the business from the ground up as if you were just launching the business – Be discreet but include key employees.

Better marketing, stronger infrastructure and thoughtful leadership are good medicine for these times. Each of these topics provide an opportunity for planning with implementation actions that are low-cost and leverage the skills and experiences of your best people. Take the time and the energy to create a plan that will prepare you for the worst but give everyone in your organization a productive way to fill their time as the country sorts out its problem. AS FDR told us, “The only thing we have to fear is fear itself.”

By Allen Hovious, President of LBMC Planning Services

As originally published in the LBMC Planning Services blog "Art of the Plan."
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