Taking Advantage of the Recession
I just did a Google search on "changing business model," and got 62,700 results.
Over the past few months, I've noticed that our bravest and smartest clients are taking advantage of the recession by taking a hard look at how they do business and being bold and creative about making needed changes. I've talked about this before here, and provided some examples. Now I'm seeing a real pattern in terms of what seems to be working and what's not working.
Here's some stuff that people are doing that seems smart and useful:
- using their best minds to explore alternative revenue streams and approaches to distribution and marketing,
- focusing on serving customers better than ever (and in ways their competition isn't),
- communicating consistently and honestly with their employees about what's happening and what the company is doing about it,
- setting clearer performance standards and figuring out how to hold people accountable to them,
- letting go of marginal performers,
- hiring newly available 'rock stars' to fill key open positions,
- agreeing on those efforts most essential to growth and directing resources toward them,
- using any available resources to take advantage of market opportunities created by others' failures (as long as those market opportunities lie squarely in their core competencies).
And here's some stuff that people are doing that seems…well…not smart and not useful:
- focusing on survival at the expense of the customer experience,
- keeping quiet about the current situation, or scaring employees, or falsely reassuring them,
- letting go of key performers,
- doing across-the-board budget cuts,
- conducting business as usual, but more cheaply.
What are you seeing?