Manage your Business & your Health in a Downturn!
by Marc Rogatschnig on 08/10/08 at 4:41 pm
4 comments
IT WAS A BIZARRE DAY. I started to feel a bit uneasy after lunch and by 3pm I was flat on my back! By 6pm I was far off in club duvet and only 13 hours later (the next morning) did I wake up. According to my wife – a Boeing plowing through our house wouldn’t have stirred me – I was shattered!
This year has been tough on us all, but the extent of physical and mental exhaustion that finally shut my system down was downright EXTREME!
With global economic meltdown and business threats abounding – it has become increasingly important for us to remember what matters most – OUR PERSONAL WELLBEING AND HEALTH. The Personal Energy required to tackle the challenges ahead are essential to clarity of thought and purpose.
Great leaders understand this and value its expression in their people. I came across the writings of Ram Charan, an influential Fortune 500 management guru, who provided four slices of sage advice in these trying times (and particularly useful if you feel exhausted and are looking for some guidance to follow):
1. KEEP BUILDING. When the top line looks shaky and the bottom line worse, the temptation is to go after discretionary spending. Fine, but do not consider product development, innovation, and brand building optional. Sacrificing your future for a slightly more comfortable present is not worth it. If you keep building, you can come back strong. Another area to build on is personnel. It may seem counter-intuitive to pay bonuses when profits are falling but rewarding excellence – through new challenges, public recognition, and, yes, money – in bad times as well as good builds loyalty.
2. COMMUNICATE INTENSIVELY. Get information from where the customer action is, and get it to the operating people – fast. Companies should do so routinely, of course. But they don’t. It’s counterintuitive but true that when the economy slows down, the pace of decision-making has to speed up, because you can’t put off the tough choices anymore. The companies that are readiest to act on solid information are primed to shoot ahead of the business cycle. Employees in particular deserve your candor. The form of such communication does not matter; the frequency and honesty of the communication do. Outline the problems, explain your plans, and ask for advice. Listen. You will be amazed how much good will such simple courtesies can create.
3. EVALUATE YOUR CUSTOMERS. You need to identify your higher-risk, cash-poor customers. You could decide to simply not supply them anymore – that’s harsh but sometimes necessary. Alternatively, and this helps build good relations, work out a way to keep going – for example, by helping finance purchases or supplying smaller quantities. The point is, a downturn is a very good time to do a quality check on your customers.
4. JUST SAY NO TO ACROSS-THE-BOARD CUTS. By all means cut costs if it makes sense to do so, but make sure there is purpose in how you do it. It may be useful to clean out the metaphorical attic – for example, by pruning your product line. The key: If you have to cut costs, don’t try to be fair about it. As I have said before, the world does not inflict pain evenly, and you have to deal with that reality.
In times of high stress and pressure we run the risk of making short term decisions that may hamper medium to long term growth. Small to medium sized businesses skirt with this risk more regularly. Keeping clear on longer term strategy and responsive to daily challenges is a balance that can cripple a business owner or manager – quite simply, ITS EXHAUSTING.
So, LOOK AFTER YOURSELF – comatose or caffeine driven is no way to live and definitely no recipe for business success. I’ve been warned! Let’s hope you are too! Good luck!
Marc Rogatschnig follows the Arnold Schwarzenegger rule of branding: "If you can spell my name right, I must be doing my job right". Marc is a business consultant, surfer, Africa traveler, energy ambassador, dreamer and a big fan of common courtesy. Marc also happens to be a Clinical Psychologist, so watch your comments or he’ll publicly expose you for being a bed wetter at age 12. View more articles by Marc Rogatschnig.
Debt Relief
Oct 8th, 2008
Marc, you are 100% correct. I have been to the gym in 4 weeks. I am going today, thanks to your post!
Marc R
Oct 9th, 2008
Hope you sweated into some good health!Marc
Robert Jewell
Oct 16th, 2008
Dear Marc
Perhaps the best piece of advice I came accross was that we should focus in our businesses on what we can change, and not on what we can’t. We cannot change the interest rates, the rate of exchange, the price of fuel, so don’t waste any energy worrying about them. We can manage our business and personal finances, we can focus on the needs of our customers and keeping our promises, we can act with integrity and good faith, we can tell the truth, we can look after ourselves, our employees, our families, the greater community, our city, our nation, our continent and help to make this world a better place, we can focus on a purpose far bigger than ourselves, we can shine like stars and be the light to others. Its all about attitude, or as one medical doctor put it: “HEALTHY PEOPLE MAKE HEALTH DECISIONS EARLY AND MAINTAIN THEM FOR THE REST OF THEIR LIVES!”
Thnks for the inspiration. Kind regards Robert Jewell, Accounting for Entrepreneurs
Discover Lapeer County
Jun 5th, 2009
Thanks for giving the heads up, Marc. Talks about a healthy lifestyle. I think I also need one.
Lapeer County