If you’re reading this, you don’t need to hear how crazy it is right now. Commodity prices are rising and most people are feeling the effects of this economic downturn.
We’re not really in a recession, although most analysts predict it could happen in 2023†
At American Management Services, we consult with owners on how to adapt a plan to protect the integrity of their business through a crisis.
Our economy has been trying to get out of the covid-19 pandemic. Now all business owners are faced with inflation, rising fuel and food costs, interest rate hikes, labor problems and supply chain challenges.
We’ve worked with owners for nearly 40 years who have guided them through every economic downturn, downturn and recession. This survival plan is based on our experiences and guidance from those owners.
With our proven track record, we are confident that following this guide will work for you too.
In this two-part series, we’re going to walk through the three key areas that are essential to your business. We’re also going to give you strategies that you can implement starting today.
You should focus on protecting:
- your people
- The integrity of your business
- Your liquidity
In this article, we’re going to focus on protecting your people.
These three areas must be worked together and each depends on the success of the other in order to work. We call them ‘closed loop’.
Protect your people
Develop your own leadership regime:
Keep your sanity
Be real with your current situation and design, then develop and implement practical and achievable plans to overcome your challenges. You must be a functional and consistent leader through practice, not just on paper.
Develop Manpower Look-Ahead plans to ensure you have the right amount of labor to work efficiently for the labor dollars spent.
Nice name, but this is a schedule you create – usually two weeks in advance – where you can see activities and goals for specific projects.
This goes without saying, but most owners fail to communicate their plans to their employees.
Once you’ve developed a plan (if you need help, see this article), communicate with your staff, especially if you have people working from home.
Working from home
Use technology and performance metrics to ensure your stay-at-homes maximize their productivity. I recommend implementing daily and weekly reporting requirements to hold your staff accountable to the goals you have set.
Recruitment, training and retention
With inflationary winds blowing, one company’s misfortune is another’s opportunity. You may have a golden opportunity to find and recruit new talent.
You also have an extraordinary opportunity to train and develop new and existing employees to fill roles and functions within your organization. We recommend that you take advantage of this time!
Integrate recruitment, training and retention into your daily routine.
Developing incentive-based pay
We believe in pay-for-performance, even in the best of times, and we certainly believe the same in today’s economic environment.
Productivity is vital for survival relative to your labor expenditure: develop a rewards-based compensation plan to ensure maximum productivity. We’ll go into this in more detail.
Your staff will be highly motivated to drive results no matter how revenue is impacted.
You don’t want to stay in the ditch. Stay tuned next week to learn how to protect the integrity and liquidity of your business. Click the “Follow” button here on londonbusinessblog.com to make sure you don’t miss our follow-up.