Managing In Tough Times - Communication Is Key

Change is guaranteed and change is constant. Based on recent studies, 72% of those reading this will be doing something different in 2 years. There will be changes in the people and the environment in which every company operates. The sources of change include:

	Changes in technology
	Changes in the economy
	Changes in world politics
	Changes in your specific marketplace
	Changes in what your customers want and need
	Changes in the competition
	Internal political turmoil
	Changes in your cost structure

Some of the symptoms of an economic downturn include mixed pricing levels in the marketplace, reduced market share or the perception that employee effectiveness is less. Most companies, even those proud of the changes they have forced on others, respond with the same general attitudes. Amazingly, even if they plan or talk about it, at first it seems rather distant or academic, or the symptoms are aberrations and not a trend. But then when the realization hits home, they react with disbelief and then panic. The issue is not whether or not you feel panic, we all do; the issue is how you will handle it.

· It is never pleasant when the reality of a downturn hits home

If you have been developing an innovative and responsive company environment, then the panic is not perhaps as deep, but between the stark facts and the media, there is a strong tendency to panic and do something, even if it is wrong. And if you see it, so do your people. They may have even seen it already and have been waiting for new direction. Take a few deep breaths and start some focused action.

First remember you're a building for now and the future. Whether you really are up against the ropes or have some time, your answer lies in your people and their enthusiasm and creativity. If one brain is good, then multiply that by your employees and advisors and you have a wealth of potential help available to you. Establish the basic market facts and your situation and communicate what is happening to your people. Even as a solo practitioner, the more minds free to innovate and focus on your business, the better the answers.

· Honor the royalty of cash

Cash is king or queen, look to your cash flow and your pricing. Your goal is to refocus and reaffirm your efforts and look for ways to free up cash to increase your flexibility. You do not want to simply slash and burn, instead you want to reassess and focus your investments. In a strong innovative environment, turn the direct operations and customer contact people loose on cost controls, efficiencies and improved customer delight. Focus the executive management on the market and strategies. Look to your current customers, the market and your competitors.

· Get it from the horse's mouth

Communicate, communicate, and communicate with your customers. Don't just rely on your sales force, go talk to your customer owners, CEOs, CFOs, COOs, and CIOs yourself. Understand their business and what is driving them. Go to your biggest and best and then go to ones who have recently left. The goal is to listen and understand. Find out what their plans are and how you can best help them succeed. Your personal commitment to understand will position your company strongly to be a partner they look to as they manage in the same tough economic times.

· Focus on how to build for the future

Once you have some basic understanding of where your customers are headed, start to formulate plans that address both the immediate needs and the future. Look for opportunities that are synergistic. Look to develop solutions that solve current issues and prepare you better for the future.

In an economic downturn the tendency is to look inward. Your constant communication with all stakeholders will help keep you and your company focused externally, which is the only way to thrive in any economic conditions.

Copyright 2008 Donald C. Mann. All rights reserved

Don Mann advises CEOs and business leaders across the globe. In organizations ranging from start-ups to Fortune 100 he has delivered level-raising results of improved innovation, sales, profits and cash flow in good and hard times. His results include developing and improving highly productive and lean organizations with more rapid responsiveness, reduced stress and profitable customer delight. Sitting on a number of boards, he helps CEOs grow their companies and shareholder value. For more information, contact him at: www.RiteMann.com

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