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Time to act in a counter intuitive manner

Going against your gut, and acting in a counter intuitive manner will see you through the recession argues John Ryan who believes that many companies are making disastrous short term decisions today that will undermine their future success and may in fact prove fatal.

It maybe cold comfort for those who have lost their job but our economy and the world economy is changing at a pace and a speed unprecedented. For many, just like the last ‘Big Snow’ which happened in Ireland, the last recession in the 1980’s is a dim and distant memory. For college graduates today, they were only born in 1987 so they have no experience of how to handle themselves in these tough times.

When the snow falls in Ireland many people give up trying to get to work, they look out the window and go back to bed to bury their heads like the ostrich with its head in the sand, waiting for all the snow to melt and everything to return to normal. Other people take a different approach and decide to brave the elements and get into their cars and start to drive, unfortunately they often drive in the same way as if the conditions had not changed and often with disastrous consequences.

However if you want to be successful in our changed economy you can’t ignore the news like many advise nor can you act in the same way that brought you success in the past, to succeed you need to change your approach to suit the changed economic environment.

Darwin’s theory of Evolution was not all about the strongest or fittest surviving. It showed us that the ones who survived were the ones who adapted to their changed environment.

When driving in the snow and you feel your wheels loose grip your first emotion is fear and this can affect your thinking, this is natural because you feel that you are now out of control. For many in the economy today they are anxious about the future because they are sliding and they are not sure where they are going or where it is all going to stop, and what direction they will be facing when that happens.

When our car is sliding out of control our instinct tells us to brake! The result can be disastrous. The experts tell us when driving in ice and snow we need to move to a different gear not the normal one that we use, and if we experience a slide, not to brake hard because we will loose complete control. Instead we should touch the brake gently to test the ground conditions and see the effect a more committed action may have.

And even though it feels wrong, if we feel our car sliding in one direction we should steer in that direction to regain control while our instincts tell us to steer the opposite way. Therefore to drive forward successfully in the frost and ice we need to act in a counter intuitive manner.

This is true too of the people who have succeeded in recessions.

Invest
Organisations who invested smartly during the recessions in the 1980’s stole a march on their competition. When the banks get recapitalised they will lend again. Top companies have identified acquisition targets at a price that is too good to miss. They are always on the look out for a bargain and think about collaboration with everybody including their competition in areas that may not overlap.

Recruit
While others stop recruiting top companies take the opportunity to recruit the best talent, because during a recession it is easier and less expensive.

Communicate and Build Trust
When the news isn’t great we often want to keep it to our top team, an information vacuum will be filled with rumours and erodes trust. In recessionary time top organisations communicate more regularly, sharing the latest information with their staff, suppliers and customers. Sometimes this maybe information they would prefer not to share but the risk is worth the reward, which comes in higher levels of trust and staff engagement. If everybody is rowing in the one direction you’ll be surprised just how fast and far you can go.

Don’t Screw Your Suppliers
While it is tempting to negotiate suppliers to the wall, top organisations resist that temptation, yes they may ask them ‘to share the pain’ but the best enter into a partnership relationship where they look after each others interests so that in the future they will want to work with each other to make both businesses succeed instead of trying to get their own back

Make the right Cuts
While cuts often are essential, top organisations make the right cuts, some poor performing organisations don’t really know who are their most valuable employees because they don’t have a robust performance management system and they end up making people redundant only to find they have to bring them back on contracts at high rates. Top organisations know and retain their brightest and their best and use that to decide rather than a last in first out policy.

Focus Externally
While recessions force us to analyse how we do what we do they tend to drive us to focus our efforts internally. It is important to cut out the fat and create lend machines that deliver however, top organisations have an external focus. They spend more time communicating with their customers, getting closer, building better relationship not for business today but understanding their needs and wants for their business next quarter or next year. Top organisations lay the ground work of tomorrow’s success, today.

Think Twice before Outsourcing
It is a very attractive option and in some cases justified, however don’t let you’re accountant drive this decision to balance the books, particularly if you are tempted to outsource customer interactions. Nobody cares more for your customers than you. Nobody will spot potential opportunities like you. Nobody can sell your unique business offering like you.

Train Selectively
They say that in a recession the two items to be cut first are the marketing and training budgets. In some cases this is justified. Why advertise if your customers are not buying. Top organisation tends to get more bang for their buck from their advertising budgets in a recession and find new channels to get to market, so now might be the perfect time to invest in an on line marketing campaign and renovate your web presence. In terms of training, it is a fact that a lot of money spent on training is wasted but that does not mean that all training is a waste of money. Top organisations analyse which training initiatives can make a real bottom line difference. Insurance companies who train claims agents to negotiate better can save money on payouts. Sales organisations who train their people to deal effectively with the request for discount can protect margin. Organisations who train employees to be more innovative can invent products and services that can give them a critical competitive advantage in the future.

Innovate
During a recession it is difficult to think with innovation in mind, our minds are less creative when we are living with fear and anxiety. Top organisations and leaders know their future is in the innovations of today. Facebook is five years old this year. If myspace was a country it would be the 5th largest populated on Earth, China will soon be the number one English speaking country in the world. The world is changing faster than we know. We need to look forward to a very changed world that lies ahead. Top Organisations build systems that give time and rewards to those that innovate. Google allows 30% of employee time for innovation. Would you give 10% of the profits of a new idea to a staff member who invented it? Top Organisations drive innovation in their workplaces.

Take your Summer Holidays Now
Finally, if your industry is waiting for the banks to recapitalise maybe you should take your Summer Holidays now and get away from the tough weather conditions and recharge your batteries in the sun and return with new energy and enthusiasm ready to drive your business out of the recession to a brighter future. Giving staff the option of a three month break to see Australia or travel the world can make sense, particularly for the staff member who has a once in a lifetime chance to do something at a time that it will cost them less in a way that can be extremely tax efficient.

It is time to think differently, act in a counter intuitive manner, when that little man or women in your head says you must do this, ask the question why? And is this really the best course of action to ensure success in the future for your organisation?