Headlines

There have been a lot of headlines in the news of late about the condition of our economy, the fact that we are in a recession, or are on the verge of one, companies laying off workers, hiring freezes, etc. How you lead a business through these kinds of conditions is going to determine the ability for your business to ultimately be successful in the future, or not. One of the immediate moves of a business in a recessionary period is to cut expenses. This is obviously smart and for most businesses is an ongoing practice even in the good times. I was recently emailed a good newsletter distributed by The Recruiter's Digest and written by Bill Radin that I feel outlines some pretty good steps to take, and although they are referring to the recruiting industry, their recommendations can apply across all industries and leadership positions. Here is a copy of the article and a link for you to view it on Mr. Radin's site which also offers other resources and tools for folks in the recruitment industry.

Learning from Past Recessions by Bill Radin (Source: Recruiter's Digest April 2008 newsletter) If you've never experienced a recession, here are 10 things you should know:

1. Jobs that made you rich in good times can make you poor in a recession. This is especially true with mid-level positions, in which duplications in skill sets or job titles exist within a single company.
2. You may need to switch from a "delivery" business model to a "value-added" model. If your business depends on delivering mass quantities of average-quality candidates or you do little to add value, you'll find it harder to compete.
3. Some job markets and desk specialties will be spared. Case in point: After 9/11, when job cuts were rampant across the board, certain job markets, such as defense contracting, construction and legal services, actually thrived. If you can identify the markets left standing, they can be your lifeline.
4. The greater the supply of "active" candidates, the more valuable "passive" candidates become. Since layoffs flood the job boards with unemployed or marginal candidates, you'll need to brush up on your cold calling skills and find creative ways to source top-flight candidates who are currently employed.
5. Employers are more cost conscious. As a result, you can expect more pressure to reduce your fees, and for hiring cycles to slow to a crawl. And as more recruiters fight over fewer jobs, you'll need to tighten up your "ownership" rights to candidates; otherwise you'll fight more frequent battles over who gets paid.
6. Candidate marketing will become more common. Most employers will throw out the rule book if you bring to their attention a candidate who can make an immediate, positive impact. If the candidate has enough sizzle, employers will find a way to make the hire, even if they have to create a special position.
7. Your time management becomes more critical. With fewer positions to work on, you'll need to be highly selective about which assignments will give you the greatest return on your investment of time.
8. Weaknesses in your selling skills are more exposed. Recessions leave little margin for error. The better you are at qualifying, closing, handling objections and making presentations, the more efficient you'll be with respect to converting activities into income.
9. A recession is the best time to be in the recruiting business. I know this sounds counter intuitive. But look at it this way: When times get tough, the weaker recruiters will wash out with the tide. If you can weather the storm and find ways to gain market share and build your reputation, you'll be positioned to grow as the market recovers.
10. Cash flow is everything. Learn to control your spending or make cuts in your budget. Otherwise, you might end up working with your back to the wall.No doubt about it: A recession is a buzz kill. But it can also be a great teacher, because it humbles you and makes you more aware of your weaknesses. If you can stick it out and learn from your mistakes, you'll make tons of hay when the sun shines again, and you'll be more immune to future downturns.

Very compelling!

Now back to my opinions...

If I were to add to the list of ten items above, my contribution would be to increase your level of activities and focus on what has the most obvious link to driving your business. Are sales activities the best driver of your business? Is it association involvement? Maybe even attending trade shows? Find what works best, clear your schedule of all other time consumers and focus on what is going to allow you to build your business. The businesses and leaders that are going to emerge on the other side of the current economic conditions on top of their industries are going to take some calculated risks to gain market share and increase their customer counts. This will be successfully accomplished by being wise with where their organizations focus resources and by taking necessary risks to grow their market share and ultimately their business.

What activities are the most important to your business? Are you investing all of your time focusing on this most important aspect of your business?