S. Hasnain Rizvi, PhD
“Expect the best, Prepare for the worst”- Muhammad Ali Jinnah
The stock market is down, credit markets are as frozen as Arctic snow, and economists are still debating where the unemployment numbers are headed. Despite the doomsday predictions, forward thinking professionals should not be deterred. During a downturn, there are plenty of ways for innovative leaders and professionals to improve their competitiveness. Recessions are an excellent time to refocus on what an organization does best, attract new customers, and build for the future. Find the upside in a sour economy by moving innovation into high gear.
In trying times, the natural human instinct is to hunker down and simply try to survive. But that, experts say, is exactly what businesses should not do in a recession. Doing so may well equate to overlooking huge opportunities. When the market scenario appears bleak and growth prospects do not look encouraging, successful companies focus primarily on bolstering their customer relationships as success in business depends largely on client satisfaction. Using innovation to ensure customer contentment is a prerequisite for taking the business forward.
Apple makes it look easy in this economy. From the ever improving sleek design of its personal computers to the clever intuitiveness of its software to the genius of the iPhone, Apple consistently redefines each market it enters by creating brilliant gadgets that put its competitors to shame. So, what is the secret? Apple has built its management system so that it is optimized to create distinctive products in any economy.
Leaders must understand what it takes to create truly remarkable products. By focusing on core competitive strengths, deepening relationships with customers, improving management effectiveness, and holding prices at profitable levels, companies that pull away from the competition during a downturn have lasting advantages. Apple’s motto, “Think Different,” is worth pondering over. Apple maintains an introspective, self-contained operating style that is capable of confounding competitors and shaking up entire industries. For example, Nokia, once considered the undisputed leader in mobile phones, never anticipated that a single product from a computer maker might throw its ascendancy into question. Experts say that Apple’s ability to think differently about itself keeps it at the head of the pack.
Leaders need to stay on the offense and look closely at competition to see where advantages can be gained. Many organizations are postponing investments, cutting research and development, slashing marketing budgets, and demoralizing their staff through layoffs. While some cuts will no doubt be necessary and beneficial, other aspects should be beefed up, not slimmed down. The key is to figure out where to stay aggressive. For some companies, this may be an ideal time to boost spending on marketing to take advantage of lower advertising rates and reduced clutter in the marketplace as other players retreat.
Staff loyalty must also not be compromised. Nothing sends shockwaves through an organization like the threat of layoffs. Whether or not a company is going to trim staff, it is important to let existing employees know that they are valued. Managers need to talk openly about both the opportunities and challenges the company faces.
During times of economic uncertainty it is typical for individuals and organizations to focus on the short term. This short term approach which develops means that it is easy to forget the deep competitive advantage a company has and how that has developed over the years and is critical for operational delivery of the business. Understanding the core competencies the business needs to deliver its strategy over the longer term is crucial. For example, if leaders are being told to trim staffing levels, they should ask how long it will take the business to replace a team of accountants with an average of 15 years experience. Taking a strategic approach to redundancy by focusing on the longer term will calm some of the jitters in this market.
Another key opportunity here is to leverage this time to upgrade your skills, as well as those of your associates. In a rapidly evolving market, the need to a regular refresh of keys skills is essential.
As an innovative leader, identifying and having an action plan to counteract the recession will mean you are seen as proactive, strategic and indispensable to key stakeholders.
The writer is an Agile Transformation Coach and Trainer based out of Houston, Texas
