(Originally posted September 28, 2008)
The stock markets crashed and recovered last week. Governments around the world responded with unprecedented interventions and experts warned that we have not seen things so bad since the infamous crash of 1929. It’s clear that there are turbulent times ahead but it’s difficult to determine what we should do to prepare. How bad will it be really?
Prudent business people will make adjustments to their financial plans in times of uncertainty. Expenses are more closely monitored, investments in equipment may be postponed, new hires may be put on the back burner. We all watch the bottom line and do our best to anticipate how our business may be affected.
What often gets missed in economic downturns is the people factor. Employees are concerned about their own financial security. They may fear layoffs. They may have personal concerns like increased interest rates on mortgages and other loans or losses in their investments and retirement accounts. Personal concerns can easily lead to lower performance at work at a time when we need our people to be sharp as ever.
Owners too can be hampered by uncertainty and fear. We are likely to be less decisive because we perceive the risks to be higher and we have less confidence in our ability to recover from mistakes. Our management style may change. We may have a shorter fuse. We may slip into micro-managing the business (which may be a good or a bad thing depending on the circumstances).
Awareness of the people factor is important. We can watch for any changes in our own behavior and respond accordingly. We can observe how our people are responding to the circumstances and take action as required.
To keep spirits up, find things to celebrate with pizza lunches or cakes. Pay extra attention to saying thank you for a job well done. Ask someone to set up a social committee. Have a bowling night. Paintball is especially popular if you are willing to play – you’ll be the prized target. None of these things need cost a lot of money but they have a wonderful effect on employee morale and positive employee morale will rub off on you too. (You might find that these are good for your business in good times too.)
Establishing a United Way workplace campaign may help employees remember that others are in worse situations and you can create excitement by offering to match their contributions up to a comfortable amount. There are many other charitable organizations that hold fund raising activities that may be appropriate for your workplace.
If the economy does tank and we end up in tough times, remember that they never last. Prepare your business, your people and yourself for the ride knowing that good times are ahead.
Doug
Comments are welcome.
