Perfect Storm | How to protect your company so it comes out of a recession stronger
While we wait for positive news on the economy it's a good time to look back at our nation's last recession and recount an important lesson.
At that time, companies breathing a sigh of relief as financial indicators started to rise actually found themselves in the midst of a perfect storm of converging economic forces that caused a wave of unexpected employee attrition.
As a result, companies already weakened by four years of downsizing and cost cutting found themselves losing personnel and, along with them, competitive advantage.
Caught Unprepared
Without taking action today, Bay State companies risk falling victim to the same phenomenon. According to recent reports, talented employees are already fleeing the state at an alarming rate.
Companies caught in this perfect storm will experience quality degradation, business process breakdowns, delivery delays, all resulting in customer attrition.
It seems illogical that an improving economy would have such an effect, but look around and you'll likely see the signs at your own company:
Survival Mode. You've engaged in belt tightening and turned focus inward rather than on executing on established business strategy out of a diminished willingness to accept risk.
Career Recession. Because of survival mode, opportunities for upward growth have diminished, leaving employees stuck in a professional logjam.
Lack of Personnel Investment. An organization's cost cutting efforts means less (if any) investment in developing the skills of managers and other personnel - at a time when those skills may be most needed.
Disenfranchisement. The cumulative effect is that employees feel burned out, taken advantage of, and otherwise underappreciated, and it shows in their workplace demeanor.
Recognizing this danger and taking the right steps to avoid the trap can not only prevent an exodus of employees, but may also improve prospects for surviving the recession in better shape. It all starts with a strategy, and developing one now will give you a leg up on the competition. Such a strategy means:
Defining business objectives that recognize the economic realities of today, but with a clear post-recession vision.
Driving organizational change to achieve these goals at a time when instinct may tell you to ride out the storm.
Establishing clear, measurable priorities that can be used to guide the expectations of employees and also boost satisfaction as goals are met.
Involving employees in the creation and implementation of the strategy in order to foster a sense of ownership and a personal stake in the success of the organization.
With such a strategy in place you can begin to reengineer core business processes to meet your new strategic goals, with a focus on adding value at each step. Involving employees will afford you an opportunity to identify and correct inefficiencies that may have gone unnoticed before. It will also mean you have an opportunity to build your company's leadership bench from within.
Identification of anchor positions within the company and developing the skills of key employees to fill those positions will demonstrate a willingness to invest in individuals at a time when their peers elsewhere may be barely hanging on. It will also give you an opportunity to target and acquire new talent from the competition, further strengthening the organization and building morale.
Once these newly skilled employees are in place, work to keep them trained and retained, while also remaining cognizant of those who may not fit the plan.
Strengthening the organization in lean times means you will have made the right decisions to establish a solid foundation upon which your company can build for the future.
Nancy Brooks is a principal partner with 7th Wave Solutions (www.7thwavesolutions.com), a Clinton-based management consultancy.
WBJ Web Partners
Most Recent
Most Recent
0 Comments