How To Thrive In A Recession
Emmanuel Michael, SPHRi
100 Most Influential Global HR Leader. 101 Global HR Hero. Leadership Coach. Career Coach. Success Coach. Author. Public Speaker. Founder & Host of #HRwithEM®
The general reaction to a recession will be to cut costs, downsize operations and even go out of business, especially when our goal during this period is to survive. In a nutshell, “to thrive and not survive should be our goal” during a recession.
While reviewing online what organisations did in other parts of the world, I came across 5 key things, which I believe would enable any individual or organisation thrive:
1. Embrace the change and innovate:– In a research carried out by Forrester, 70% of business executives said that, “in a recession, innovation is a top priority” for them. Innovation enables us to respond appropriately to change with new ways of doing the same thing while reaction will only lead to kicking-in survival instincts that might not do much if the negative period persists. For instance, when you decide to reduce the ration of food instead of growing new one, the inevitable would still happen.
2. Up your financial game:– This should be a period when you perform scenario analysis of what could happen if your sales declined by say 5%, 10% or 20%, the effects should enable you determine how to respond and have a ready-made game plan.
3. Add value rather than cut prices:– Cutting prices to attract more customers is a survival instinct that can only be contained for a short period, as eventually the business might not survive due to increasing cost of acquiring products or inputs. Rather, businesses should focus on what competitors are not offering and start to offer same. This will ensure that you maintain your existing selling prices and offering added value without disrupting your cost structure.
4. Be clever with your marketing:– Recession is a time you should not go it alone when it comes to marketing. Seek out others that offer complimentary products and partner with them for mutual value. This approach enables you to share the marketing costs and benefits.
5. Embrace the power of social media:– This last point is very important, as the online community that you build around your brand will usually remain with you in hard and trying times. Invest required resources in building a strong and virile online community around your brand.
To THRIVE in a recession, you need to RESPOND. To SURVIVE in a recession, you only need to REACT.
Follow me on Twitter @enmichael and let’s discuss recession and innovation.
credit: The Growth Hub, PremiumTimes
High Performance Coach/Trainer
7yGreat piece I must say. It is always interesting to see that people's default way is to react rather than respond. Your third point resonates very well - instead of reducing cost, increase value. I was talking with the management of a particular organization some months back and I was saying that now is the time to even engage more in staff training, particularly the type that will help them maintain a productive state. For me, if the staff knows how to respond to the reality of the economy and they manage themselves well, they are in a state to produce more result for the organization.
WIMBOARD Fellow, MCIPD, MCIPM, MBA, Certified Business Development Services Provider, Capacity Builder, Performance Management Advocate
7yInteresting read. Thanks for sharing.
Business and People Strategist, People Experience Specialist.
7yLBS treated a similar topic early in the year and emphasis was laid on innovation, innovation, innovation. It makes me at ease to connect with this piece. Brilliant topic, great thoughts. In addition, this period is when thinking organizations plan for the recovery period. Time to train and retain your workforce the more, get special talents available on board your team and perfect your strategy now. When recession is over, talents may not be readily available, double or triple training costs on new staff if you allow current personnel take a walk due to pay cut and benefit slash this period. Thinking businesses react differently to others. After recession you should not be planning, you're on the next gear while others play catch up.
CEO JIMOH ABEFE TRANSPORT AND LOGISTICS CO.
7yThe recession is still on no recovery yet because this so call government are unserious on our economy.
🌟 The Business Companion| I help entrepreneurs and professionals increase productivity and prevent burnout so that they can thrive in their work and life.
7yThis is inspiring Micheal, thanks for sharing . Keep it up!