What Recession - reasons to be cheerful

The recession may have touched us all but it is not nearly as bad as the pundits and commentators would have us believe. One or two businesses have gone under but I am here and you are still here reading this. We are all still 'in the game' so we have some of the skills and resources necessary to survive. We must at the very least be capable of examining our external environment and reacting to it in a positive manner. We are flexible, adaptable, resourceful and understand our own competencies.

A downturn is a good time to plan and watch what others are doing. Take a look at your competitors, visit their shops and trade stands or use their services. See how your competitors are handling the bad times, take on board their good ideas and learn from the bad ones. In short be ready to beat them when the time is right. Use this slack time to review your own business, something you will not have time to do in the busier times ahead. Now is also a good time to woo new clients even if they are not going to buy from you right now. Understand them and listen to their woes. We are experts in our field.

We know that things are cyclical and so we can safely assume that after the crash will come a period of growth once more. We cannot say for sure what the timescales will be but we know that it will happen. We have demonstrated our flexibility in surviving initially and then been cunning in our approach to observing our competitors, creating a plan and acquiring resources. We have a business that will thrive when the time is right. In the meantime, leverage your expertise and assist your customers to save money or add value for existing customers (without charging them extra). We thoroughly understand our customers and our marketplace.

So you:

• are flexible, adaptable, resourceful and self aware
• experts in your field
• thoroughly understand your customers and your marketplace

Congratulations, you are now innovating!

The Slipping Point

Most readers will be familiar with, or have heard of Malcolm Gladwell's best selling business book 'The Tipping Point'. The author suggests that there is a point at which you need apply only a small effort to create an effect. This is rather like giving the final push to topple a large boulder or tipping a finely balanced set of scales. If only we could find this point, we could all save ourselves time and effort.

Once the tipping point is found then we, and our businesses will be beating the competition and lining our pockets with untold riches, right? Is there anything to stop us? Well, quite a lot actually. Take the simple case of sitting down on a chair. You see the chair, walk round to the front and then sit down. Did you check that the chair was still there or that it did not have a wobbly leg. Most of the time nothing will happen but what happens in the 1 in 100 or 1 in 1000 cases when a practical joker has removed the chair?

This is a somewhat simplified example but neatly illustrates the point that we must keep our wits about us at all times. Having created a strategy for the future we want it to succeed but how many of us do not keep watch? What is it exactly that we are watching for? This is where we come to The Slipping Point. If you were driving up a slippery slope or along an icy road it would be the place where you lost grip, where your forward momentum slowed, and where things just did not go as planned. What can be done about this?

• Ensure Management are 'Hands Ready' i.e. they are aware of what is going on but are not micro-managing or too eager to take control. This provides space to see the bigger picture.
• Do your employees work in teams? The more they do this, the more support they provide, the more knowledge is shared and the more flexible they are when confronted with challenges.
• Is there a desire to win or are you all there to pick up your pay cheques?
• Even if you have a desire to win, do you know how to win?
• Keep an eye on the external environment, competitors, customers and any other factors that could affect the economic landscape.
• Foster as many external relationships as you can. These provide information and can also be leveraged in times of need.
• Promote the right culture. Transparency and morale are often used but infrequently heeded. Lead by example and gain trust and you will be in good shape.
• Promote the concept of stretch, an environment in which your employees and management alike are challenged and allowed to learn.
• Get the best from your staff. This extends from what management actually 'do' to staff to encourage and motivate them as well as reward systems.

Pay attention to the above and you have a very good chance of executing that carefully crafted strategy and avoiding The Slipping Point.