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Guest Column
It's Not Just About Profitability and Survival:
Leaders Need to Lead
By Pat Heydlauff
Political and economic influences have great implications for today's
leaders as they maneuver their way through ever-expanding mine fields. This
economy and political climate are forcing leaders to re-think their
operating plan. This is a time for action not reaction; a time for decisive
leadership to guide the company safely through a quagmire while preparing
for the future.
"Maintaining market share, maximizing operational tightness and propagating
the long term view for the company are critical during an economic
downturn," said the CEO of a major privately held corporation. This thought
process isn't just common sense but crucial for economic survivability and
mobility once the economy starts to move forward again.
The CEO went on to say, "a company cannot afford to lose any market share
nor erode operating capital during a downturn because there will be nothing
left for marketing, advertising and hiring when the economy does turnaround.
A business gets into real trouble when it loses its market share and
depletes its capital; it will not survive - no matter how good the economy
might get. Therefore, leadership needs to focus on the long-term view while
getting everyone aboard to think survival, expense reduction and increasing
income without any negative financial impact on existing capital."
When leadership focuses on short-term business survival, assets are
protected, jobs continue to exist and market share and profitability is
maintained. Once a carefully laid out short-term plan for survival has been
accomplished it is crucial that leaders not get so bogged down with survival
that they forget to look at the long term view.
These are the kind of times, circumstances and events that require leaders
to make hard decisions and realize there is a way to behave during an
economic crisis. Survivability is all about reducing expenses, making
profits and maintaining capital. Company leaders who understand how to make
money are the survivors and will be the change makers who help turn the
economy around and ensure their companies thrive.
The longer the downturn the more the consumers will dig in and hold onto
their hard-earned money. Once the economy does turnaround, they will pay
down their accumulated debt before spending. To bridge these turbulent
times, leaders need to have a plan that includes a long term view covering
everything from being prudent on expenses and increasing employee efficiency
to eroding the competitions market share. Here are some easy-to-implement
survival principles that focus on the future.
· Shift everyone's thinking. Move from a cost-cutting mode to a money-making
and increasing-market-share mode while not digging into existing capital.
Employees tend to spend capital so they need to be engaged from the bottom
up to look for ways to either save money or increase sales and revenues.
When encouraged to participate in the company's survival, they take a piece
of ownership in its survival and become part of the solution team instead of
an individual trying to survive.
· Increase employee efficiency. Eliminate energy drainers and clutter in
the workplace and organize it so employees can find anything they need at a
moment's notice. Time is money, and employees are a huge investment. Clutter
is a distraction that prevents an employee from maximizing their
productivity and the company's profitability.
· Upgrade your organizational chart. Be an all inclusive organization and
share this philosophy with your employees. Eliminate the old 19th Century
Newtonian pyramid-shaped organizational chart and replace it with one that
works from the center out like a spider's web where everyone is connected,
productive and within the playing field. Employees do their best work when
they feel they are relevant and make a difference in the outcome.
· Leaders need to lead. Focus on the long-term view. Once you've devised
and implemented a plan for survival, focus all your energy on the big
picture and where you want the company to be when the economy starts moving
upward. Let someone else worry about the number of paper clips being used.
It takes a leader to move safely through todays economic mine fields.
Followers need a leader with a vision to lead them into creating the future.
· Eliminate stress. Being a leader is stressful enough during normal times.
The stress is greatly magnified during this difficult economic and political
environment. Plan some creative time during hectic days to get the right
side of the brain working. Stress comes from logical left brain thinking not
being balanced by creative right brain thinking. It's the right side of the
brain that helps you create new ideas and solve problems such as getting
through this economic downturn.
Leaders need to find ways to solve problems improve survivability and
increase market share while protecting existing capital. This type of
breakthrough thinking comes through creativity. Add some right brain
activities to your schedule such as creative writing, painting, listening to
classical or new age music, quiet walks in nature or meditation. If you're
stuck at your desk, take a few minutes to do some creative visualization.
Close your eyes and mentally visit a place you love - remembering to breathe
deeply while in that frame of mind. You will feel refreshed and the
creative juices will flow, helping you solve the most complex of problems.
It takes a leader with vision and the creative know-how to turn things
around and have everyone in the company think as one instead of as a number
of individuals. Leaders must realize they cannot use 19th Century
leadership tools in the 21st Century - especially those that are narrow and
top down instead of inclusive.
Leadership is all about creating tomorrow's vision while living through
today's difficult times. Profitability and maintaining the company's market
share while not dipping into capital must be the long term objective which
builds a fertile foundation for company growth when the economy turns
upward.
ABOUT THE AUTHOR
Pat Heydlauff is president of Energy Design, a company that uses proven Feng
Shui design principles to improve the bottom line. As a consultant and
speaker, Pat helps organizations and businesses of all sizes remove stress
and clutter, while increasing creativity, employee retention and
productivity. Her book, "Feng Shui: So Easy a Child Can Do It" outlines the
small changes that can lead to a big improvement in one's personal and
professional success. For information, visit: www.Energy-by-Design.com or
call: 561-799-3443.
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