| Prepare Your People for the Upturn
Maybe we are coming close to hitting bottom. That is a conclusion of the latest McKinsey
Quarterly survey of economic conditions. While 75% of executives surveyed worldwide -
90% of those "in the Euro zone" -- believe that their national economies are still in decline, "expectations, though gloomy, don’t appear to have worsened over the past six weeks."
Could this perception be an anomaly or is it an indication that the economies have fully
contracted? Time will tell, but there is one conclusion I might make: now is the time to start
planning for the upturn.
Yes, even with the markets yo-yoing, tens of thousands of employees being shifted, and the
economic prognosis grim, now is the perfect time to start planning for what you will do when
the upturn comes.
Market economies are cyclical. And just as companies regularly plan for the next downturn --
say, being watchful of spending and debt load -- the same applies to the upside of the cycle.
If you wait too long, you will miss out on the upswing, putting your company at a
disadvantage when the indicators swing northward.
Here are some suggestions for how leaders need to prepare:
Master your operations. In short, get your house in order. Know your strengths and
weaknesses. Shore up your financials to create a foundation for growth. Look at what your
competition is doing. Spend time with your customers, even when they are not buying. Make
it known you value their businesses as well as their business. Come the upturn, they are more
apt to think more favorably about you and your organization.
Use the downtime wisely. From experience in last downturns, I recall speaking with clients
who said those who kept their jobs actually enjoyed the lessened work load. It gave them
time to think and prepare. Consider using the time for brainstorming and strategic planning
sessions. There is no quota on creativity. Keep stirring the juices for new ideas as they apply
to improving products, processes and services.
Invest in your people. Upside brings good news, and as it has previously, it will heighten the
war for talent. Therefore use this time to prepare your people. Provide more training as well
as development opportunities. Cross training and job rotations maybe critical. While it is no
guarantee, investing in people now will demonstrate a commitment that has a better chance
of being returned when the good times do.
There is something else that leaders must do when the times are tough. Spread some hope
throughout the organization. This is not easy when everyday will seem grimmer than the last.
No leader can allow his people to dwell on the negatives. As the saying goes, control what
you can control and let go of the rest. Make the best of it. Find ways to spread some cheer
and lift your people.
Living through a downturn is not a process of grinning and bearing it; it is a matter of
working the objectives toward your goals as well as planning for the good times that will
occur someday. And if your organization does succumb, you will have learned valuable
lessons that can be applied to future leadership roles.
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