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2010; Getting Past 2009 and Working Smarter Going Forward

Guest post by: G.J. Miller

Article Overview: How do we focus on growth and revenue in a way that will allow organizations to increase and decrease staff levels in a socially conscious and fiscally responsible way? Even if you have no staff now - your goal is to grow your business and make it a viable, prosperous business. That means that we have a responsibility to consider the impact of our people decisions to hire or not - to terminate or not, etc. People give us their best and then in a downturn, sometimes find themselves on the street with mouths to feed and mortgages to pay. Somehow we must prepare them to take care of themselves while remaining committed to the organization's goals.

2010; Getting Past 2009 and Working Smarter Going Forward

Well - here we are. At the end of 2009 many people are reeling from this economic downturn and feeling it has been unique. It has in some ways yes, but in others "we've been here before". The good news is that we seem to be climbing out of the pit, slowly but surely. In the interest of performance improvement, I recently researched the difference between the economic downturns in the early 80's and 90's and this more recent event, to find out if there were similarities and differences we could learn from. Three things stand out:

1. Though we called the first a recession and this recent event an "economic downturn" what we are experiencing now is quite similar in magnitude to the "Great Depression" of 1929-30.*
2. The only difference in the downturn of 2009 and the others is the response. That is, the government intervention and proactive funding of projects. The willingness to embrace deficit and global concern and effort to minimize the impact.
3. Since the 80's, the business world has had to be more entrepreneurial to compete and after each downturn, new products, businesses and services sprang up. Most of these were created by "displaced" workers who had no choice but to be creative and make their own jobs.

Now, we all know that I am no economist, banker or mogul. I run a small business like everyone else, but from a Human Resources perspective, I was wondering if 10 to 15 years was a "magic window" of time. Was this something that was the result of poor strategy or planning? If we don't learn from our mistakes, could we prepare for the next one in 2029-2034?

Needless to say, I didn't find anything that would help us prepare for or avoid this - short of wholesale change on the part of the global community; bankers, regulators, government and employers- all missed the signs in early 2007. Perhaps they can work to repair and improve the infrastructure.

But let's talk about businesses. Most organizations are struggling to grow and are focused on that next order or sustaining revenue - before, during and after an economic downturn. Business start-ups are no different and in fact have been hardest hit in most countries as banks limited credit and funding opportunities. We are all working hard to stay on track.

While I am the first one to see the business rationale to any employee action (terminations, probationary periods, salary freezes) I have to ask myself: Do businesses have a responsibility to the people we hire (and their families)? You bet we do!

Even if you have no staff now - your goal is to grow your business and make it a viable, prosperous businesses. That means that we have a responsibility to consider the impact of our people decisions to hire or not - to terminate or not, etc. People give us their best and then in a downturn, sometimes find themselves on the street with mouths to feed and mortgages to pay. Somehow we must prepare them to take care of themselves while remaining committed to the organization's goals.

Then how do we focus on growth and revenue in a way that will allow organizations to increase and decrease staff levels in a socially conscious and fiscally responsible way?

Here's a thought

If, as people are saying;

• Entrepreneurs will be a key factor in turning the economy around and
• The entrepreneurial spirit is a key factor in the success of businesses today

Then why not give people the freedom (and accountability) to be creative, entrepreneurial, business savvy employees FOR our own businesses? I've been pondering the dilemma of "entrepreneurial employees" in some other parallel universe since people understood that high levels of motivation = high levels of productivity but were unwilling to let employees be creative. As a small business owner and entrepreneur, you have the opportunity to change the way things have been done in the past.

I say let's shrug off protectionist, "it's my company" attitudes and utilize people to their full potential. Let's broaden training from a job or functional centred approach to a broader organizational approach. Give every employee the responsibility and training it would take to understand business beyond their own job. What would happen if every employee were given training in Sales, Finance, Marketing, HR and Strategic Planning "101"? It need not be costly, you have or you know people who could do this for you.

I submit that we would have more knowledgeable, energized, creative employees that would be focused on helping grow our businesses. We would have to rethink the entire HR model - from selection to performance coaching and rewards - but what do we have to lose? Managed properly? Nothing! And we have everything to gain - including a workforce that could be dedicated but not overly dependent on our businesses to provide.....a workforce much better prepared for the next downturn. This is a solution that is both socially and fiscally responsible.

Merry Christmas and here is to a fantastic 2010!

Sources: Vox EU, The Toronto Star, The BBC

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Article Tags: human Resources, People Decisions



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