Astute and thoughtful cost cutting in times of crisis are appropriate and necessary, but be wary of losing key knowledge that may have taken years of training and experience to fully develop. And, that would be challenging to replace.
“If it fails, admit it frankly and try another. But above all, try something.”
Franklin D. Roosevelt
There have never been truer words for business leaders in times of financial crisis when strength counts the most. Often, business leaders are paralyzed into inaction by the fear of failure, the fear of criticism or simply the fear of being wrong. And the result is that opportunities, even survival opportunities, slip away. Never do nothing…there is always something to do…even if it’s painful.
Common Sense:
Definition: Sound practical judgment that is independent of specialized knowledge, training, or the like; normal native intelligence.
How many times do you read or hear about business leaders, politicians and celebrities failing to exercise this attribute with disastrous results. As a business leader, it’s a required fundamental. Mounds of data is great, experts & counsel’s advice is needed, but at the end of the decision tree, common sense rules!
How many investor billions might have been saved if they had asked a simple, common sense, question of Bernie Madoff; “How can ensure year over year returns of 20% or more”. The common sense answer is that no one can. And, that’s a very hard way to learn a lesson.
Communication
It has been my experience during my career, that in times of crisis, one of the most important things a leader does is to communicate clearly, appropriately and often with his entire organization.
Why? Sr. leaders, managers and employees left in the dark about the realities of a particular situation or event (Is the business being closed? Are we filing bankruptcy? Is my job in jeopardy?) will be left to speculate, wonder and worry alone and in groups. And, all those negative activities among others are inherently un-productive both for the individual and for the organization. A leader in a crisis situation may not be able to divulge many things, but they can offer clarity, honest leadership and a commitment to work towards the right solution.