Leaders need to Lead in these downtimes

It is amazing to me how often when the times are not as good as in the past, leaders make some strange decisions . . . oh my, we need to cut expenses and "I" know which expenses to cut. The result is that short-term decisions impact long run revenue opportunities. Oh yes, short term bonuses might look good, but this is about the long term viability of the business and a contract with people who have worked so hard to build a business.

I have been through recessionary times in the past, my advice to new leaders is to gather the troops and tell them the straight story. The revenue in the future is not looking strong so we need to cut expenses in line with our revenue projections. So, we have two choices, what ways can we increase revenue without investments and second, where can we lower our expenses. The people closest to the clients and the actual daily work are the best to help provide insight into what might be revenue opportunities and where some expenses could be lowered. I have always been pleasantly surprised by the suggestions that really made a difference. My favourite one was from an assistant who had a great idea about saving money on shipping our products which ended up saving significant dollars. When I asked how come you never raised this before . . . the answer "no one ever asked".

Leaders! Don't crawl into your office and stay in the dark. Get out! Involve and ask your team what actions can affect short term results. Leaders lead in downtimes, but leading is also listening and involving the entire team!