failnt2.food

Reading through some of the daily media you would think the end of the world is nigh. Iceland and now Switzerland having severe financial problems - where will it end?

Here are a few tips for survival over the next 12 months.

• Understand the situation - don't bury your head in the sand and hope it will all go away as this is a recipe for disaster, however I have come across one or two companies recently who are taking just this approach. The more information you have the better decisions you will make.


• Rapid evolution is the key to survival - particularly over the next 12 - 18 months. Take decisive actions when required and then live by them - this isn't a time to pontificate as delay could be your death (OK thats a bit strong but it sounds good as a sound bite)


• Assume that the worst is going to happen and take a zero-based budgeting approach to everything.


• Make whatever cuts are necessary. One technique I have used in the past is wargaming. Ok so what is wargaming - this is a 'game' in which a small group of people assume the role of acquirers (venture capitalists or private equity players) and they look at the company from an 'external' perspective. What would they keep?, what would they get rid of?, what sort of overhead should there be etc. Etc.


• Think about what you measure. In these tough times it is good to review your measurement process - are you measuring the right things - if you are measuring acquisitions this not be realistic and it may be better to measure retention - if you are measuring output it may be better to measure productivity. Don't forget 'you are what you measure' so make sure you measure what you need and not what you do.


• Encourage Innovation - particularly around waste and inefficiency. This could be the ideal time to start to question why things are done very often because this is the way it is always done, but encourage staff to refine and review all their actions so that they are the most efficient they can be. In these times of crisis very often productivity can fall as people are worried about their jobs and financial security - this can be a great way of re-engaging them for the benefit of the company.


• Become cash positive - if at all positive try and become cash positive - both in company and personal terms. A good maxim is 'spend every pound/dollar as if it was your last'

• Get ready for the better times - this current crisis will probably last for 12 - 18 months so one activity could be to look at what you will do when things get better - plan for the future - create a new vision - give people hope for the future.

This is the time for leadership to come to the fore - a time to lead your troops into battle - great leaders emerge from hard times - Churchill, Thatcher etc.

I hope this is of some interest - what are your views on the situation - what do you think companies should do?

care emergency urgent, failnt2.food, failmy.ca, failmy guy, failmy.