I read a recent article in Fortune magazine by Ram Charan, who gives some good advice on managing a business in an economic downturn (I think this is actually good advice for managing in a robust economy as well):
1. Keep building. While it is prudent to slow discretionary spending, don’t curtail work on new products, innovation or brand building.
2. Over-communicate. When the economy slows, decision-making actually has to speed up, and it’s extremely important to tell your employees and customers what’s happening. When your circumstances change, explain your new strategy to everyone involved.
3. Evaluate your customers/clients. Decide if any of them are too great a risk, as well as which ones deserve your support. In other words, do a ”quality check” on your customers and remove the losers and those who are draining your precious resources.
4. If you have to cut staff, don’t do it across-the-board. Cuts should be purposeful and rational. Same thing with cutting expenses in general. Keep investing in high-potential, innovative products.
Remember that challenging times present some of the best, long-term opportunities for smart companies to get ahead!
