<p>When the going gets tough....tough decisions need to be made.&nbsp; Decisions need to be made with respect to your personnel to cull the incompetent while fostering trust and generating good-will.&nbsp; Decisions need to be made to enhance your relationship with your customers and suppliers.&nbsp; The good news is that these decisions will lead to long-term success as the economy recovers. The bad news is that these decisions need to be made in a timely fashion.&nbsp; More than ever, it is critical to stick to your company's values and mission, while findings ways to execute better, faster, safer, less expensively, and while ably communicating with your staff, customers and suppliers.</p> <p>&nbsp;</p> <p>1. <strong>Cash is King!</strong>&nbsp; More than ever cash in hand is critical and crucial.&nbsp; If you need validation, take a look at the Big 3 auto manufacturers who have gone begging to DC for...cash!&nbsp; No matter how great your product/service; no matter how talented and hard working your staff; no matter how efficient your processes, if you lack the cash you will eventually fold.&nbsp; Examine your accounts daily; postpone paying as long as ethically and morally possible; and provide incentives for your customers to pay you early (10% discount for pre-payment?).&nbsp; Involve your staff in finding ways to produce your products or deliver your services in the least expensive way while maintaining high quality standards.</p> <p><strong>2. Know your staff.</strong>&nbsp; Which employees are vital to your success?&nbsp; Most companies have a core group of key employees.&nbsp; Who are your weakest links? Weak performers bring down the performance of the entire team and affect the morale of your strongest performers as they feel let down by management's failure to address the problem.&nbsp; While your stronger performers should be the core of your attention and reward system, you need to immediately address the weakest performers.&nbsp; No need to fire them yet.&nbsp; Sit down with them, in private, and reach an agreement as to their performance.&nbsp; Begin by reviewing the employee's understanding of his/her duties.&nbsp; It is possible s/he doesn't know, or has misunderstood what his/her duties are.&nbsp; Reach an agreement and then agree on the standard for performance review.&nbsp; Get the employee's agreement that s/he can and will perform to those standards immediately.&nbsp; If not, ask for his/her resignation or terminate them.&nbsp; Review the performance on a daily basis until you are satisfied that the employee can and will perform, then move to weekly, then monthly, and then yearly reviews.&nbsp; Make sure the employee understands and agrees that if s/he fails to meet performance standards they will be asked to resign or be terminated.&nbsp; The employee will either raise his/her work performance or quit voluntarily.&nbsp; Either way this will send a clear signal to all other under-performers to shape up or ship out, while your strong performers will feel supported.&nbsp; By the way, why not involve your stronger performers to mentor the weaker ones?</p> <p><strong>3. Involve your customers and suppliers.</strong>&nbsp; Your best suppliers and customers most likely want to help you through these difficult times.&nbsp; Your supplier needs you to continue purchasing from him, while your best customers have an established relationship with you and have no desire to work at establishing relationships with others.&nbsp;&nbsp; Remember that most people seek a routine that they consider safe.&nbsp; So, don't wait for them to call you...pick up the phone and call them.&nbsp; Better yet, go visit them in person.&nbsp; Let your suppliers and customers know how you plan to react to the situation; explain the decisions you're taking and choices you're making; and ask them for the same kind of transparency on their relationship.&nbsp;</p> <p><strong>4. Open and honest communication is vital.</strong>&nbsp; It is often said that the opposite of love is hate.&nbsp; That may be so, but most people would prefer to be hated rather than ignored.&nbsp; Nothing instills fear and mistrust than the lack of communication...not even miscommunication.&nbsp; Don't believe me? Ever had something happen while in a plane? How relieved were you when the pilot came on the PA to give an explanation?&nbsp; Lack of communication would have lead to your worst fears.&nbsp; Even if the information the pilot communicated is false, you didn't feel ignored... you were validated.&nbsp; While email, Twitter, SMS, VOIP, voicemail, etc. are all terrific technologies, nothing beats face-to-face communication to build a relationship.&nbsp; After all, more than 50% of our message is communicated through our body language and vocal tones.&nbsp; Let your staff, customers and suppliers see you and let them know that you are in control of the situation and have a plan to address the problems.&nbsp; By the way, all your communications should be done ethically and responsibly.&nbsp; If you don't know the answer to a question, say so and promise to get back to the questioner with an answer...and do so.</p> <p><strong>5. Ask for help, if you need, and reward appropriately.</strong>&nbsp; There is nothing wrong with asking for help.&nbsp; In fact, done properly, it reinforces your relationship with the person helping you, and most people want to help.&nbsp; When others help you, make sure to recognize them...frequently.&nbsp;&nbsp; The gesture need not be grandiose or expensive.&nbsp; Often it is the simple gesture (e.g., a heartfelt "thank you") that has the greatest impact.&nbsp; However, make sure the gesture is genuine and heartfelt.&nbsp; People will know if you're faking it.&nbsp; And don't forget these people when better times roll around. While I don't believe you have to give to receive, I do believe that what goes around comes around.&nbsp; Eventually the economy will recover and too many will seek to make up for all the lost revenues.&nbsp; While it is a good strategy to do so, it is a failed strategy if done at the expense of those who helped you.</p> <p><strong>6. Protect and preserve your core.</strong>&nbsp; When I was a SCUBA instructor, I would tell my students learning cold water diving, to protect their core if they got into trouble.&nbsp; That meant getting into a fetal position and protecting the part of your body which kept you warm and alive.&nbsp; Same goes for a company. What is your core?&nbsp; What do you do best?&nbsp; Keep your company focused on whatever activity/product brings in the greatest profits and put the rest on the back burner, sell it or close it down.&nbsp; Put your best people and the bulk of your resources to preserve and protect your core.&nbsp; Make sure they have the tools to succeed and establish SMART (i.e., Specific; Measurable; Attainable; Realistic; Timely) objectives.&nbsp;&nbsp; Think about what you would like to celebrate a year from today.</p> <p><strong>7. Think, Plan and Think some more.</strong>&nbsp; Our cavemen ancestry comes through in times of danger when we get into a "flight or fight" mode.&nbsp; While this preserved us from saber tooth tigers and similar beast, in a corporate setting this generally leads to poor decision-making.&nbsp; The present situation calls for quick action (in fact, for some it calls for immediate action).&nbsp; However, any such action should be carefully thought out and possible repercussions examined.&nbsp; Think of the message your actions communicate to your staff, clients and suppliers.&nbsp; While it may necessary to cut-back and eliminate the nice-to-haves and keep the must-haves; to impose a hiring freeze; to delay purchasing new equipment; ask whether that is the best strategy (what else could you do) and think hard about how you will communicate your actions.&nbsp; Once the decision is implemented, monitor it.&nbsp; Was it the right decision? Was it implemented in the optimal way? Is further or different action required?&nbsp; If you don't measure it, you can't improve it.&nbsp;&nbsp; As the old adage goes: measure twice, and cut once. As a CEO, take the time to think, plan and think some more.</p> <p><strong>8. Act with the highest level of ethics.</strong>&nbsp; At a time when the ethics and morals of your leaders (!) are called into question, set your organization apart from the rest by acting with the highest levels of integrity every time.</p> <p>&nbsp;</p> <p>With apologies to Chicken Little, and despite prognostics to the contrary, the sky is not falling.&nbsp; The economy will recover.&nbsp; In the meantime, burying your head in the sand and ignoring the tough decisions which you must make will ensure the failure of your business.&nbsp; You can come out if you think, plan, communicate and act ethically, with care and compassion.</p> 2008-12-11T07:45:47Z 2008-12-12T17:26:59Z -14.3453 235 2475 true 5 8006 a-chart-to-navigate-these-troubled-waters 2 2008-12-12T16:32:11Z 2008-12-12T16:32:11Z

It is never easy to manage a company. A leader must daily make make/break decisions. Today, accurate/timely decision-making is critical. This article offers a chart to send you on a safe journey to your success.

1 2009-02-24T09:47:50Z