Resource Edge   

Leading successfully in challenging times.

Until recently, the term “tough times” conjured up a different picture and had a different meaning. People may have had bad days and things may not have gone so well, but all the main business indices seemed to be going up or on a level at worst. Different to the very real tough economic climate we now find ourselves in. “Tough times”, truly means tight margins, tighter budgets and every customer interaction being critical. Business has become even more difficult.

In the face of this reality, how we manage and lead through the current economic climate to the (we hope) eventual turnaround is significant.

Whilst I can happily sit and talk and think about the future normally, I am realizing that we first have to get through the present in order to navigate the rough waters ahead. Talking to a client the other day, he reminded me that what is needed is a clear view of both the obstacles and opportunities that lay ahead.

Asking the question - "What keeps you awake at night?" (and luckily most people answer this in a business context) the answers are typically -  “How do I know what's right for the business, in these unchartered waters?” and  How will I keep people engaged and focused?”

What are some things we can do, pragmatically and also usefully, now?

Focus on your vision.   Revisit and ensure it is sound and simply communicated – so everyone gets the picture and what they have to do. Then, repeat that message again. In troubled times, people may hear, but often don’t fully listen and understand.  For someone who has been through these tough times before, my learning is that, the decisions we make and the information we offer to employees now will determine how committed they will be when things pick up.

Don’t make promises you can’t keep. Also, if you don’t know, say so. There is more credibility in honesty.

Differentiate.   Sharpen your advantage (or core competency). Keep looking for opportunities. They’re still there, many of my clients assure me – they are just harder to see given the current economic climate. In tight times, it is even more important to target your efforts – for the customer.

Keep good people.  Just because there is a down turn – it does not mean you stop focusing on people.  Good people are hard to discover, are always in short supply and always have options, to stay or go. So find a way to keep them

Manage your knowledge.  Having worked in HR for 25 years I am very biased on point 5!! But I have seen the long term impact on those companies that have made drastic budget cuts and those companies that targeted scarce resources wisely.  Please be shrewd and careful in budget cuts. Training and development is usually the first budget to be cut or to go. But targeted wisely it can build those skills and capabilities needed to operate and succeed in tough times.

Eliminate the valueless.  Now is the time to stop all those reports that land on people’s desks but never lead to action. Eliminate anything wasteful, such as processes or procedures done the “way we’ve always done them.”

Leaders lead.  All the time!  The present economic climate simply magnifies those things which good leaders need to do.

Any other ideas? Let me know by January 13th and any ideas I use either on the web site or in the next newsletter, will get a “present” from HR Solutions.

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