Motivate Superior Performance During an Economic Downturn
In the past economic crisis, and even in the recent one, many organisations reacted to the challenges by reducing overhead expenses as the primary course of action. Yet, from the past experiences, a number of organisations could not sustain performance. This proven that reducing costs alone may be insufficient if companies intend to move beyond survival towards producing sustainable results.
On top of reducing overhead cost, the following are some ways that business leaders can make the best of the economic downturn to produce sustainable business results:
1. Cut off Loss-Making Business Activities
An economic downturn reveals which business units are profitable through a full economic cycle. Maintaining non-economically viable activities drains resources from the profitable ones, thereby diminishing potential to produce results. A financial downturn is a good time to assess the business model itself and revise the business plan.
2. Invest in People Motivation
Best practice organisations invest in the motivation of employees during difficult times. It has in fact been shown that motivation increases capability, especially the creativity required in solving complex business problems in times of crisis.
3. Build Long-Term Relationships with Customers
Customers’ needs are often neglected when companies turn inward and focus on conserving cost and other internal matters. Superior performing organisations, however, understand that customers require information, guidance and options. The relationships built with customers in this manner during an economic downturn are extremely valuable in sustaining business.
After all, the key issue is the attitude of leadership, whether the business leaders want to just simply brave through the economic crisis, or to make the best of the current economic situation by taking advantage of the opportunities inherent in every economic downturn.
source: ICC
