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Upbeat thinking in a Downturn Economy

Guest post by: Paul O'Dea

Article Overview: History tells us great companies are made during recessions. But where do you start? How do you lead your battered troops on a new ambitious campaign?

Upbeat thinking in a Downturn Economy

“Hard pressed to my right, my left is in retreat; my centre is yielding. Situation excellent. Attack!’’ - General Foch’s report to HQ before the Battle of the Marne resonates with today’s CEOs, who are recharging their entrepreneurial batteries, pulling their best people forward, banishing doomsayers, and positioning themselves for growth.

History tells us great companies are made during recessions. But where do you start? How do you lead your battered troops on a new ambitious campaign?

In boom times, people start up companies because they fancy being their own boss, or they spot an opportunity. Why not? There’s enough credit about and enough people with can-do attitude. In the early, heady days, a few customers are reeled in, and the company expands. But bust invariably follows boom. And while boom times allow scope for mediocrity, in the downturn only the fittest survive.

Successful companies, which survive recessions, have a shared vision of the direction they are taking, and a great team who share the same mindset. Put simply, in the words of seminal business strategist, Peter Senge, a shared vision is: “a force in people’s hearts, a force of compelling power…a deep purpose that expresses the organisation’s reason for existence.” Great CEOs know exactly why the company was founded, what it stands for, where it’s going, and what sets it apart.

In the absence of a shared vision, employees tend to pursue their own, short-term goals. They pull in different directions and set different priorities – the predictable result is friction, pettiness and, ultimately, chaos. This will always hinder company growth; during a recession it can be fatal.

Companies with limited resources may have nothing to offer but their dream. Your shared vision must have the power to inspire your team in the interests of a common purpose. Someone once asked the guy sweeping the floor at space agency NASA during the Kennedy era what he was doing. He replied: “I’m helping put a man on the moon.”

“The visions of exceptional leaders do not have to coerce people to pay attention: they are so intent on what they are doing that, like a child completely absorbed with creating a sandcastle in a sandbox, they draw others in.” Warren Bennis, business strategist and Harvard professor

Think about companies you admire - what sets them apart? Is it world class design, like Bang & Olufsen, or branding excellence like Innocent? Companies that grow successfully understand what it takes to win in their sector. They work out what they’re really good at, and build a compelling vision around that.

Why do customers choose you rather than your competitors? What are the two or three things you excel at? They should be things your customers recognize as valuable and your competitors cannot easily copy. Focus on what creates superior value. These are things you should invest in. They go to the core of the company and serve as the foundation for beating the competition.

Your shared vision stems from what you are really good at. Articulate your vision in one statement, which will serve as a lynchpin for your team. Some visions are passionate rallying cries; others are practical and down-to-earth; all must be easily visualised. Yours should be unique and reflect your strengths. It will probably take more than one sitting to craft and shouldn’t be forced.

Barack Obama’s power with words and ability to inspire brought him to the White House. Previous presidential candidates tended to stand on their record rather than articulate their message. But Obama’s record was slight - with only two years as a senator, he resembled a CEO with nothing to offer but his dream. He coined maybe the simplest shared vision of all: “Yes, we can!” And what was the vision of his veteran opponent, John McCain? No, we can’t remember it either.

INSIGHT IN ACTION

· Get your team together and ask them what they want the company to be famous for. What will the company be like in five years time? What customers? What products? What revenue?

· Ask yourself and your team what it takes to win in your sector. What things do you do better than competitors? How hard are these to copy? How much do customers value them? Work out the two or three things you are really good at.

· Start crafting your vision statement. Do not force this. It should be concrete, memorable, easily visualized, and possibly time-bound – e.g. ‘We want to improve the quality of life in Africa’ is too vague but ‘Eliminating AIDS in Africa by 2020’ is concrete.

· Try opening with the following: ‘Be recognized by the market as X, by Y date’ – e.g. ‘Be recognized by the market as the company that gave the power of SAP to a million small businesses by 2015.’

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Article Tags: downturn, economy, exceptional leaders, future, growth, recessions, senge, shared vision, strategy for growth, vision, vision of the future



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