The United States and the world have gone through different economic recessions, from the Asian financial crisis in 1997 to the collapse of the U.S. financial markets in 2008. In business organizations, survival became the name of the game. But how should senior executives and leaders lead their organizations during these trying times? Here are some tips to adapt, become agile, and make winning teams out of unfortunate circumstances.
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Image source: Pixabay.com
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Prepare a contingency plan
Create action steps based on corporate function and operating unit such that the steps are clear and everyone knows what to do. This plan involves headcount and hiring changes; compensation, benefits, and incentive plan adjustments; and asset divestitures. It also includes expense cutbacks, hierarchy for cost-saving initiatives, as well as considering other options, such as outsourcing non-core activities that aren’t strategic to the business.
Keep your people motivated
During financial difficulty, employees will naturally be worried about job security, especially in the private sector. Help keep them calm and put their psychologies at ease without sugarcoating the situation. This starts by communicating with them regularly, encouraging them to open up to their managers and continue to participate in company activities and learning initiatives.
Image source: Pixabay.com
See it as a teaching moment
Uncertainty naturally breeds anxiety – but it can also be an opportunity to learn, engage workers better, and make them stay laser-focused on the job at hand. Urge everyone to better contribute and see how their job fits into the business strategy and its mission to survive amid the hard times. If there’s agility, people will solve problems instead of mourn over them, and they will innovate for the years to come.
Patrick Dwyer of Merrill Lynch vouches for education’s effectiveness as a tool to achieving success in business. Learn more on this page.
