As your organization is trying to survive a “bear” economy trending further down every day, these questions are probably at the top of your list. A bear market is typically triggered by a significant decline in stock prices (at least 15-20%), coupled with a pessimistic outlook on the immediate future. Certainly no business leader, investor or regular “John Doe” looks forward to such unsettling prospects.
Nevertheless, despite your discomfort and secret wish to play dead and wait it out, if you are a business owner or leader, you know taking no action under such circumstances will likely have a negative effect on your business. To control the “damage” to some extent, there are several things you and your leadership team should consider.
Manage Your Clients
Client management is a complex and multi-faceted task even in good times. However, when faced with an unstable economy, this issue becomes even more complicated. While it does not require that you, as a business leader and partner, reinvent yourself, it does require that you refocus and reexamine your services and operational practices in order to provide an appropriate level of client service. It also requires that you open the communication channels with your clients to see how you can help them navigate in turbulent waters. You, or someone on your team, may have the knowledge, skills, and expertise your clients need in dealing with a particular challenge, and by offering your support, you will help not only them, but your organization as well.
Engage Your Employees
No matter where you stand on this topic, the bottom line is that employees’ performance is a key differentiator for most organizations. In order for employees to produce top results, they need to feel engaged and have their goals aligned with the business strategy. They also need to feel they belong to a high-performing organization that rewards employees for their commitment and loyalty in the marketplace. That doesn’t necessarily mean you need to spend money to engage them. Some of the best ways to engage people are non-monetary:
- Assign mentors and buddies to your new hires to help them understand the business and their role in its success.
- Have a strong leadership team in place who care about the people and show it in their daily actions.
- Encourage two-way communication and listen to the employees’ feedback.
- Ask employees to get involved and provide input when looking for ways to improve productivity, communication or service offerings.
Manage Employee Morale
Given the current climate that businesses are operating in, it is realistic to expect a decline in employee morale. Businesses tend to focus on the negative and economic challenges are contributing to a continued downward spiral in morale.
Research has shown that the morale of an organization's workforce is directly linked to its profitability. Low morale equals low profits and high morale equals high profits. This is because employees who are happy in their job and with their employer perform better, which leads to higher and improved productivity and profitability.
One thing senior management can do to boost employee morale is convey optimism, strength and security. They need to encourage and show frequent appreciation of every employee's efforts, and find ways to bring out the best in them.
Communicate, Communicate, Communicate
If there is one thing to remember, remember this: in the absence of clear, open communication, people will create their own stories, which are often times much worse than reality. Communication with your employees should be regular, on-going, and timely. It should also be two-way: getting feedback from employees is always important, but even more critical in times of uncertainty.
While these are difficult times for everyone, remember that they are also great learning opportunities. These times will stretch you both personally and professionally and, in the end, will make you a better and stronger leader. As Stephen Payne said in his book entitled First Rule of Leadership: Achieve Far More By Leading Your Self Before You Lead Others, “As with physical challenges, these stretch periods are never entirely comfortable, but they are an essential element of growth. Good stretch periods can be the most rewarding and memorable parts of your career. You can’t expect to grow as a leader unless you are willing to stretch.”
