The Strategist

Three actions to stay afloat during crisis

05/22/2020 - 03:18

A difficult financial situation has consequences for any business. However, it is important to remember that the change in external conditions caused by the crisis affects not only you, but also your competitors. Everyone is facing the same problems or the same opportunities. Who will survive? One who will adapt to change faster.

Be open

Trying to protect yourself, your family and friends during the crisis, do everything to save your company as well. Discuss their fears and anxieties with subordinates. Be honest. Remember: trust is a great thing in a crisis and it is tested for strength in difficult periods. Try not to fail the exam. Be sincere, truthful, speak clearly. Do not hide the situation. Do not give false promises.

People see perfectly when leaders avoid sharing information. Many people can instinctively tell apart truth and lie. However, caring for your company is not enough. Call customers. Ask if you can support them, and once again, be honest. No tricks and false promises. If you can help, do it. The time has come when you can build confidence in the reliability your customers have for you.

It is in times of crisis that you can gain trust for life. Do not forget: if your customers go bankrupt due to the crisis, you will go bankrupt with them. What will you do alone?

Do not scatter resources

When firing people, be careful. Of course, you will have to examine your organization and identify those who are not working efficiently enough and eat their bread in vain. Get rid of them. This had to be done a long time ago.

What does a bear do when winter comes? Sucks a paw to cover its calorie needs, or hibernates to slow down the body's metabolism. What will you do with your family during the financial crisis? Is it possible to drive one of the children out on the street so that you have enough money to feed the rest? You should get rid of fat, but not muscle. You are fooling yourself if you are parting with good specialists - the muscles of the organization - in order to make the reporting indicators look more optimistic. How much money will it take to hire and train new workers later, when the crisis is behind and they will be needed again? Nothing lasts forever, including the crisis. Save your most valuable asset so that when economic growth resumes, you can rush ahead at full speed.

During the crisis period, special attention should be paid to two major issues: control of cash flows and preserving a culture of mutual trust and respect without squandering valuable personnel.

Look to the future

Advancement is the most optimal course of action, because if you are ready for a problem to appear, it ceases to be a problem and becomes an ordinary task, a chore, in which there is nothing sudden and abnormal. At the same time, a problem is always a surprise, which deprives people of strength. You move forward, everything is fine, and suddenly a problem falls upon you out of the blue, taking you by surprise. And the problem that you consciously ignore will certainly turn into a crisis. And then it will not just hit you, bring you to your knees. Take action in advance. Do not waste time.

Based on "How to Manage in Times of Crisis: And How to Avoid a Crisis in the First Place" by Adizes Ichak

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