For some businesses, the current downturn is nothing new. They’ve been through this kind of situation before, they know how to handle it, and they will probably survive.If you have started your business in the last ten years, though, the current economic climate will be something new. And one of the biggest challenges an owner can face is how to lead the company, ensuring that in a tough market your employees keep their heads up.
The vision thing
Company owners are often negative about the idea of having a vision for their company. After all, it sounds like a very wishy-washy concept – something that Californians might discuss over tall decaff skinny cappuccinos while having a brunch meeting.
In fact, having a compelling vision for your company and its direction can be a great tool, particularly during a downturn. As Jeremy Kourdi, author of “Surviving a downturn” puts it, “because things can change so much (and so often) during a downturn, it’s not always helpful to set goals based on short-term activities. No sooner have you defined what you want, when the plan changes. By keeping focused on the vision, you’re more likely to stay on course and accept change.”
How do you establish a vision for your company? Look at the factors which matter most to you. Make the vision something that people can aspire to, and express it in ways which are easy for everyone in your company to understand. It should be a short statement which tells your employees where you want to be – not just in terms of success but in terms of what you want to contribute to your customers.
Keeping communications open
Tough times can bring out the best and worst in company owners. Some managers will start to feel the pressure and decide that “it’s my way or the highway”, stop listening to their employees.
However, as a leader, you need to ensure that you keep communications with employees open and honest. If you start to dig in and simply expect employees to do what you tell them to do without question, they will simply stop being effective employees.
Remember, too, that your employees will often feel the pressure as much as you do. Sometimes, that means they will start to “keep their heads down” rather than taking risks – and in many cases, that leads to poorer quality of work.
So encourage them, too, to be open and honest about the issues they’re facing – something where you should be able to lead by example, too.
Make sure there are short-term wins to go around
There is nothing that is more likely to build morale in your company than success. But during tough times, success can be hard to find, even in the healthiest companies.
That’s why it’s important for you to set small, achievable goals for your employees, and celebrate them when they are completed. Set these goals with the longer-term aims of your company in mind, and make sure they are not over-aggressive: if a goal is unobtainable, many employees simply won’t try to achieve it.
For example, suppose your business depends on working with client. Set goals for your teams which don’t just depend on an outright sale, but which reward elements of client development, too. That way, you’re setting up steps along a path to new business, rather than just aiming high – and allowing people to miss.
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