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I recently read on the Business Strategies etc. website that a “Recession is a Terrible Thing to Waste!” (www.business-strategies-etc.com/2009/a-recession-is-a-terrible-thing-to-waste/). It seems they read an email bulletin from the NAPL (National Association of Printing Leadership) where this was described. They liked the phrase and decided to re-use it, well so did I.

When I read this, I thought that they had captured the essence of what every good company should do in difficult times. However, my belief is that if you want to develop a truly great company you should view that a recessionary trend is a natural way of correcting markets that have become unstable or artificially overextended. The one underlying message to this is that “This Too Shall Pass” and we better prepare ourselves so that we come out the other side as a stronger organization. There is the ability to do a quantum leap, gain market share or tackle new markets once the economy returns to normal (if there really is a normal). The proper preparation falls to our leaders, but how do we accomplish this when we are fighting the day-to-day battles?

Well I read the newspaper today) and there it was, another indicator on how our economy is in a tailspin and our unemployment rate is nationally 8.4%, and even greater in some areas across the country: http://www.theglobeandmail.com/report-on-business/unemployment-by-cities-provinces/article1170164/ Over the past months the headlines seem to claim that we haven’t seen anything like this since the Great Depression. On occasion, someone will mention that we in fact have suffered through a couple of more recent recessions and come out stronger when it has passed.

I think one of the reasons that this seems harsher today is that we hadn’t really recovered from the last series of issues and they do seem to be coming faster. Hard to believe it was 10 years ago when we were all preparing for the Year 2000 disaster that failed to materialize. Perhaps that is why we didn’t see the DOT com bust or Telecom downturn approaching. Then, when we add the fiscal mismanagement of some very significant corporations throughout North America, currency fluctuations and the global impact of the sub prime mortgage industry…well it seems like we have been battling for the past decade.

Typical Management Behaviour

As leaders, we tend to follow some very traditional patterns in surviving difficult times. We have learned these patterns over the years and we seldom challenge the track record of their success rate. Here are a few of the most common things that I have seen:

• Bring all of the big brains together and lock yourself in a room for a couple of days
• Recognize that sales are slipping which means that cost cutting is your only salvation. This means wage freezes, no promotions, travel freezes and of course “layoffs.”
• Management becomes invisible and always seem to be in closed door sessions.

For the sake of brevity I am going to stop at these three because these three points start to define a manager’s behaviour. What do you think these three points signify to the average employee? After all, your role as a leader is to lead isn’t it?

Tips to Improve Your Management Style

Now I am not suggesting that the preceding points aren’t necessary for corporations to survive difficult times, but there is a reason that during war times, generals try to make themselves visible to their troops. When you are asking someone to help fight a war for you, and make no mistake the similarities are strong, they need to know that they are not in this alone. Here are a few simple things to do that will make you stand out as a leader during tough times:

• Be visible – walk the halls, engage in conversation
• Provide clear leadership intent – this means that you tell them the objective but give them some leeway in determining how they get there
• Recognize individuals but praise the team
• Make decisions quickly and fairly – procrastination is a business and morale killer
• Connect with your customers – they are probably suffering just like you and probably would appreciate that you understand their position not to mention that your employees will like the fact that you are engaged

In my past life, I was the CEO of a mid-size software company that was named one of Canada’s 50 Best Managed Companies during our last economic challenge. It was during that time that I learned to be out among the staff. They needed to know that they weren’t alone and I was constantly amazed at the great ideas that people were willing to share. I guess it is true that necessity is the motherhood of invention, because we created three new products that were introduced just as the economy was recovering.

Make Your Communications Meaningful

This is the ideal time to improve your personal and corporate communications. Your messages need to clear and memorable for them to have the right impact. If you don’t know how to make a message memorable, you might find some helpful tips in a book called “Made to Stick” by Chip & Dan Heath: http://www.madetostick.com/. I found their book to be helpful in understanding why some messages stick with people and why most just bounce off of us.

Tough times really aren’t new, but we sure treat them like it is something we have never seen…every time it happens.

Worried about all the folks with fear running their lives right now.  Saw this little article on Wikihow.com and liked it as a simple way to re-frame fear and scarcity and head for abundance.  Our mindset is the most powerful thing we have in business, and happily, unlike the Dow Index, it’s in our control.

Always Be Opening

Our clients have challenges right now.  Many of them are in shock or have been hit directly.

Many of our clients are tightening down.  Many also know they need to look forward and be poised for positive possibilities.

What are you letting dominate your dialogue with your key clients and prospects?  Fear or openings?

Opening to create new business

The Stop Selling and Do Something Valuableprinciple “Always Be Opening” is a principle that keeps business in flow even when scarcity seems to be shutting tight the doors. While pop culture versions of sales professionals often have them snarling “Always be closing” at each other, I have found time and time again the inverse to be vastly more effective. When you are focusing on continuous opening, rather than closing, no one has to protect themselves around you. Instead they are invited to play in the realm of possibility and exploration which doesn’t push for the final and sometimes “too early” commitment to buy in the conventional sales approach.

But isn’t commitment the point of doing business?

Well, yes and no.

Of course we ultimately want to do business with someone, but not at the expense of ramming the door down and forcing them to take us on.

We’re really talking about a MUCH higher order of commitment.

Seek commitment to positive business possibilities for your client.

In the safety of possibility, the potential client can relax with us, discuss their dreams, their fears, their needs and their desired directions. In the safety of possibility we can be a positive conduit in our speciality, helping potential clients dream, design and choose directions.

And the result? We are often either a) chosen right away to make that outcome happen or b) remembered as being particularly helpful and knowledgeable without being pushy and inappropriately aggressive and are called upon when the time is right to go forward (or at the very least we are the favourites of the bidding process).

Don’t forget - less on price!

I’m hearing stories about how on-the-ground folks are using Always Be Opening in these current tough times.

There’s a female professional services manager who uses the “Always Be Opening” mantra to present to new clients. She finds it keeps the door open - especially in her own mind - to remember that it’s about sharing needs and ideas rather than forcing an outcome.

There’s a search professional who talks knowledgeably about how 2009 is one to stay close to major clients, take them out to lunch every 3 months and listen to their woes and needs, staying close and ready for the burst of re-hiring in 2010.

Pair it up with Selfless Listening

Selfless listening is about listening without a secret agenda. It’s relaxing away from your immediate business needs and shifting all your attention on theirs. Selfless listening means being present to your client/potential client and letting the conversation truly be about THEM for that period of time. Selfless listening pairs well with the principle of “Always be opening”, because good listening is the heart of how to behave in an ABO manner. Good listeners - authentic listeners - will create openings all the time and will hear those small shifts in tone or details of insight that those rushing into the gap to sell something often miss.

Don’t lose sight of your own agenda.  Just relax it for a bit.  Your client will actually help you bring it back to yours because they value your selfless listening to theirs.

Clients don’t miss closers.

Who they love to meet with are openers, particularly ones who are in a realistic but positive frame of mind, who can support them in navigating these troubled waters and who can come up with multiple ways for them to succeed.

Given the last post on being On Purpose, I thought I would give you some questions to ask of your organization - and of your clients’ organizations - that will keep you in purposeful motion.

Are the leaders of this company on purpose?

Are boundaries clear on zero tolerance issues?

Are ears and eyes open to adaptation and innovation?

New client needs emerging?

New improvised solutions?

Positively acting with target clients?

What’s needed now?

This may be an old joke, but why are so many leaders turning it into reality again?

Fearful CEOs negating growth

Out there right now is the CEO with an incredible product that needs to be shared on a much broader scale.  His product could have a ton of value with all the disruption in the United States financial services marketplace.  But instead of getting into action and going wide, he’s hunkering down with no regard to growth.  “We can grow later”.  It’s a knee jerk reaction that has negative consequences for everyone.

Giving the bully leader an excuse

Out there right now in the southwest is the company President who is heaping abuse and public shaming on his sales force for not producing. This is not a brand new phenom for this company…but now there’s a better excuse to do it more openly.  Mr. President, shame on you for hiding behind an economic crisis.  Get out from behind that crutch and deal with this situation like a leader.

Inspiration can be over-applied in tough times

Be judicious in your application of inspiration.  It’s very effective, more so as a spice, not a staple.  Inspiration without focus and execution can get tired.  And when externally applied, it has a limited life… it needs to be re-applied.  Like sunblock.

Encourage inner-spiration

Inspiration is self-initiated.

The act of inspiring or breathing in; breath; specif. (Physiol.), the drawing of air into the lungs, accomplished in mammals by elevation of the chest walls and flattening of the diaphragm; — the opposite of expiration.  from http://en.wiktionary.org/wiki/inspiration

You can create conditions to help people inspire themselves or encourage them to refresh their inspiration. In stressful conditions, help people remember the vision and why they commit to their work.  Help them in the day-to-day and see how they are contributing to moving forward.

This is a great time for the champions of progressive stretch.   They know that it’s time to be calm, keep the ball moving and get their arms around the day-to-day and maintain focus on the light at the end of the tunnel.  People respond to stretch.  It moves them forward and helps them choose the positive stress, which they can do something about.

Rx for Leaders in Tough Markets

1. Don’t fall for the temptation to apply beatings.

2. Keep the light on the purpose.  Most people who chose your business did so for more than financial reasons.  They felt fit with the values and purpose.  Keep your eyes above the horizon.

3. Get rigorous about monitoring and management.  Balance the focus on: growth, customer service, operations, people, finances.  It’s about the balance among them.

4. Make the company culture real and practical.  Leader-what do you do every day to demonstrate it?  Don’t let it be abstract.  Two litmus tests: you are only making it real when you are getting bored with it; and when people stop asking “What is our direction? What’s the strategy?”

5. Know your people warm.  Know what makes them tick.

6. Manage consequences.  Zero tolerance - for under-performance.  Zero positive tolerance - walk around and catch people doing things right.

Inspiration is in the experience of the beholder…make sure what you’re doing is truly inspiring