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Survival: The Name of the New Economic Game
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People rarely have a neutral reaction to Survivor, the reality based Tv show. Love it or hate it, with 51.7 million viewers for the final episode of its first season, it's impossible to ignore it. Given our turbulent economic climate, Survivor is a qualified metaphor for what's going on in the marketplace. We'll look at some of the parallels in the middle of Survivor and the real world. Then, we'll focus on survival strategies to help your company get straight through the rapid fluctuations of our turbulent economic times.
If your company has had a thriving year of increase and profitability, you may be tempted to point your browser elsewhere. If you read on, you'll find that the survival strategies we're about to discuss are even more sufficient if you use them as inhibitive measures before your company runs into difficulty.
The Stakes
It's tempting to laugh and shake your head when you watch Survivor but the parallels to the real world are way too close for comfort. Just like the current economic landscape, the terrain is rugged and the competition is fierce. Some citizen will do anyone to make it. We've all met Deb, the very sufficient and competent worker who rubs citizen the wrong way and gets fired for her efforts. We've also worked with Gerri, the appealing young woman, who will use any ploy, sexual or otherwise, to get ahead. Alicia, the competent and assertive African-American worker who gets canned because citizen find her intimidating. What would the corporate world be without the clear employees who smile in the face of co-workers and then cut them up behind their backs? Worst of all, on Survivor, the posturing, rumours, gossip, and backbiting intensify as times get tougher and the competition stiffer.
What's sad is that all of these ploys, plots and schemes sap creative energy, kill morale, and undermine the effectiveness of the team at the very time when everyone should be pulling together. When the stakes are high and you can't afford to lose, working as a team becomes a considerable survival strategy.
On Survivor, make too many wrong moves and you face starvation, the cold or injury. In the real world, it's downsizing, layoffs and bankruptcy. As Vancouver-based 360networks Inc. Discovered, it doesn't take much. Just one too many clients choosing not to go ahead with a task or postponing a decision to use your services until next quarter and it can be game over.
Changing Times ... Changing Rules
In the real world, just like on Survivor, no one is immune. anyone can get "voted off" the island. For example, up until recently, the wireless communications industry, has been regarded as virtually retreat proof. However, it has not been without its casualties. 360networks Inc. Was worth billion when its stock was at its peak. Its stock tumbled to the status of penny stock on the Nasdaq when it was not thriving in obtaining a lucrative Us0 billion ageement with Teleglobe Inc.
Telesystems International, headed by Charles Sirois, thought about to be genius with a string of success to his credit, has lost 90% of its value. The telco sector has been particularly hard hit. In the Toronto area, two associates that were headed by executives with stellar track records and for whom I have a great deal of respect, have gone out of business.
The list goes on: Psinet Inc., an internet pioneer, has filed for bankruptcy security in the Us; Sony, Lucent, Hp and 7.24 Solutions are among the associates that have announced layoffs. A year ago who would have figured that such high tech giants as Cisco Systems and Nortel would have been tottering? Who could have unbelievable the dot.com meltdown? Small businesses have been particularly hard hit. I personally know of two consulting firms that have been struggling after over a decade of success.
Survival is the name of the game in this economy. It's tough out there so it's not hard to understand why a show that enacts these dynamics metaphorically would request for retrial to such a large audience.
What's a company to Do?
So what's the answer? Truth is there are no magic answers. Just some strategies to consider. To survive this economic crunch requires a change in mindset. It involves recognizing that what worked last year may not be the right strategy for today. It will take the courage to try something different, a lot of support from suppliers, partners, and employees and, lots of prayer.
Retreat
Yes retreat. It's impossible to come up with innovative solutions when you're charging nearby putting out the most recent fire. It doesn't have to involve going to a resort for a few days. Save that for the party to celebrate your survival. If you as a matter of fact feel you must get away, it's best to trim it down to one day at a location within 30 minutes driving length from your office. Skip the golf and save by not forking out cash for hotel rooms. When the store is shifting so quickly, a weekly 2 -3 hour session where you zero in on a key area is probably a great plan anyway. Kick it off with a day off-site if you like but it's prominent for your senior administration team need to get together to as a matter of fact analyze your strategy in 4 key areas:
* recruitment and deployment of talent
* customer assistance
* store intelligence
* talent retention
If you have the skills to facilitate these sessions yourself, then go for it. Otherwise, take one of your senior facilitators out of the training room for a while, invest in facilitator training or hire a professional. It isn't all the time best to go with the big guys. Remember, when you're forking out 00 a day to a large firm, a huge chunk of that is overhead. Are they charging you senior consulting rates and then sending you a rookie who they're paying 0 a day? Then, you're helping them solve their survival challenges, not yours. A counselor from a smaller firm who has quarterly and first hand exposure to what it takes to win the survival game is more likely to bring you the expertise you need at this time.
I can hear you asking "are you for real?" Absolutely! If you can't free up at least 3 hours a week to focus on strategic issues because the most recent technical glitch, customer or worker complaint keeps landing on your desk, it's a huge red flag that you can't afford to ignore. You need a super strong team at the director and administration level that's competent enough to handle the most recent urgency and keep you informed. If you don't have that, then you've just identified your first area of focus for your survival strategy sessions.
Talent Recruitment is not an Hr Issue
During an economic downturn, associates often overlook the importance of a solid talent recruitment strategy. This is not the time to come to be complacent. An sufficient team will be your prominent weapon in your fight for survival.
As a follow of the downsizing that's going on, a growing pool of qualified, talented citizen is ready on the market. We haven't seen this in years. Organizations have the chance to wholly screen and correlate candidates to ensure proper skill level and corporate culture fit. Pinpoint the key competencies that you want in your administration team. Clearly define your requirements. Couple behaviour based interviews, faithful reference checks and work samples into your talent recruitment strategy.
Apply the same diligence to your promotional decisions. This is not the time to let the old boys' network come into play. You need top talent who will yield results and help you straight through these uncertain times. Sometimes this means finding at citizen who don't quite fit the mold in terms of sex, age and race. Remember, you're running a company and the name of the game is survival. If you want to surround yourself with citizen who can play golf and laugh at your jokes, join a country club.
Employ or Outsource
In an uncertain economic climate, the decision to progress your team should be weighed carefully. Is there any point in dramatically increasing your worker base to rejoinder to new projects? An unexpected change in the financial stability of even a few of your key clients can mean a bunch of layoffs a few months from now. Hefty payouts for benefits, severance and vacation pay can substantially trim your bottom line. There is a pool of freelance and ageement talent ready to handle challenges at all levels of the organization. Ask yourself:
* Does this task as a matter of fact have to be handled by an employee?
* Is outsourcing a viable option?
* Would we gain more flexibility by responding to this increase in company by using freelancers or ageement workers?
* Can tele-commuting be used as an alternative to increasing overhead in the form of office space, furniture, and computer equipment?
Ask your Hr team to furnish you with an pathology to correlate the full cost of filling a position with an worker vs a contractor. Factor in the costs if there is a need to lay the worker off. The results may surprise you.
Be Compulsive About customer Service
When times are tough, you can't afford to lose even one customer to the competition. If one customer has a negative palpate with a member of your team, that customer will tell dozens of citizen about it. This can gently erode your customer base and trim your profits. This is not the time to cut back on training your front line employees. You need to ensure that they have all of the training, tools, coaching and support that they want to deliver top notch assistance to your customers. That is what will give you the contentious edge in this market.
Remember that customers come in all shapes, sizes and colours. You need to make it clear to all members of your team that their biases and hang-ups belong at the door. Every customer and every worker deserves to be treated with dignity and respect.
Talent Retention
In this turbulent economic climate, there is a misconception among some senior administration teams that they no longer need to worry about talent retention. Even and especially if you have had to think such drastic performance such as layoffs, taking proactive steps to claim the loyalty of your best talent is critical. If you treat some employees harshly while downsizing, then your most valued employees will wonder if they're next. Their tendency will be to jump ship. Frank discussions with your team about the direction of the company, it's challenges, and prospects are important. It's best if employees hear the most recent news, good, bad or indifferent, from you. Otherwise, the rumour mill will work overtime and undermine your efforts. associates also need to shape and mould an worker amiable culture so that your best citizen will remain loyal to you until things turn around. while the last recession, associates that took benefit of the situation and made unreasonable demands of their team, sowed the seed of talent recruitment and retention challenges that plagued them for years.
Market Intelligence
When there is a downturn, marketing is often one of the first areas to be cut. Remember, Eaton's, a Canadian sell giant, went out of company because its senior administration team lost touch with their customers and marketplace trends. To survive this economic crisis, you need quarterly and precise data about your customers and your market.
What marketing strategies have been most sufficient in bringing your new business?
* Focus on those areas,
* Save money by eliminating efforts that haven't been paying off.
What are your competitors doing?
One of the contributing factors to the problems in the telco industry is that too many associates have been focusing on the same narrow store niche creating an over furnish in the market.
The real estate store is setting itself up for a similar qoute by building too many luxury condos for the upscale market.
What new store niches can you target?
* The ethnic store is growing dramatically in North America but you would never know it when you look at most advertising campaigns.
* The internet has as a matter of fact opened up a world of opportunities, even for small businesses. If your customary markets, are stagnating, look to areas of the world where there is increase and an increasing inquire for your products and services.
Re-think Your Offer
Pinpoint your core areas of expertise and do some brainstorming to recognize other areas in which you can apply it.
Bill Margeson, Ceo of Markham based, Cbl Data saving Technologies Inc. Used to re-furbish and fix hard drives. A drop in the price of hard drives resulted in reduced inquire for his services. Bill applied his expertise to data retrieval. In 2000, the company generated a behalf of over ,227,000 and was ranked by behalf Magazine as the 89th fastest growing company in Canada.
Harness the Creative Drive of Your People
Earlier I mentioned that there are no magic answers. However, frontline employees who interact directly with your customers are in an ideal position to give you some clues. By appealing your citizen in quarterly brainstorming and qoute solving sessions, you can regain a lot of considerable data and ideas to help you determine some of the issues you're facing. For example, your frontline employees should be able to help you originate strategies to streamline your processes and reduce your costs. This could significantly boost your behalf margin. Concord Idea Corp. ( amount 42 on the behalf 100 ranking ) is able to yield memory at 33% of the cost of its competitors. Its 2000 profits were in excess of 0,000. It would be a shame to overlook this virtual gold mine within your organization.
The bottom Line
Survival involves:
* getting a clear photograph of where you want to go,
* building a administration team that shares your foresight and communicates it clearly,
* getting your team to pull in the same direction and originate considerable ideas and solutions.
You'll reap the rewards in the form of:
* high morale,
* reduced turnover,
* a committed team focused on your goals,
* an improved bottom line.
When the economy recovers, we hope that some of these strategies will help your company be a survivor.
The Rules of Survivor
The goal of the game is to survive. The last player to remain on the island at the end of the game wins ,000,000. The game begins when 2 teams of strangers are left in a rough terrain. There is no chance for planning before the game begins. Each team has minutes to regain anyone supplies they can grab and trek over rugged terrain in crusade of their campsite. Exhausted and hungry, they must work together to build some make shift dwellings, get a fire going (without matches) and frame out what they're going to eat in the middle of nowhere. The clear jockeying for position and politicking begins roughly immediately.
© 2005 - 2008 administrative Oasis International - All rights Reserved
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