Like this article? PLEASE +1 it! Evan Signature
Evan Carmichael Top Header
Share for a Cause









The Most common Mistakes Made In A Recession

Written by: David Oliver

Article Overview: In this short incisive article discover two things that most firms get wrong and four easy ways to put it right..read on

Free Download - Stress Tactics and Vents By David Oliver
Name: Email:

The Most common Mistakes Made In A Recession

The Most Common Mistakes Made By Accountants In A Recession


It's incredible how times have changed - and how quickly! It's impossible to assess the full effect of the recession and even though recent FT research offers slim hope of positive change, others are predicting 'the worst is still to come'. The truth is no-one really knows, and the only certainty for us as accountants, is that the economic landscape has changed for ever, it will never be the same again. All this produces huge uncertainty, and in that uncertainty the most dangerous and most likely default is......... The introspection trap What is clear is that many firms are simply closing the shutters, reducing their cost base and digging in. Yet this introspective analysis of expenses can result in significant damage. Take a national firm we met with a few weeks ago. Each office had been instructed to cut costs and reduce unnecessary spend. In one office this resulted in the admin clerk being removed along with the tea lady! Sadly, when they left, somehow they took with them the joy of work and once high levels of motivation for that firm. Some of the partners wanted to leave and one of the senior partners told us - with pain in his face, "This has been one of the unhappiest months of my working life. What is worse is that this internal focus has resulted in us taking our eye off the ball externally. Our previous targets have all but been forgotten and the results are now being felt. Losing significant numbers of clients and going from strong growth to negative growth, has hugely dented our margins."

I understand for some firms - likely some reading this right now, cutting back may be a painful and necessary reality. Even then my appeal from the outset is; do what you may have to do, but still avoid the introspection trap. I saw it in through the lens of a metaphor. If you and I are out driving in a storm and we hit a large area of water impeding our progress on the road. We have two choices - maybe we could turn back and never reach our intended destination or we drive through and if we drive through there is one thing we must never do and that is to take our foot off the throttle. You can even keep one foot on the brake but if you take your foot off the throttle water in the vacuum created water gets sucked in and sooner or later the engine dies and we are stuck. Ladies and gentlemen it's not the time to get stuck it's time with intelligence to put our foot on the throttle. Cut costs intelligently where you can but still keep the foot on the throttle.

It was Admiral Lord Nelson who remarked Harbours rot good boats and good men. Ladies and gentlemen, now is not the time as individuals as firms or as branch offices to shrink back in the safe harbours of the introspection trap.

If we focus on cost cutting, staff reduction etc it can be bad or critical it affects
  1. Motivation, staff, company, ethos, spirit of the organisation or practice
  2. This will effect the service current customers get STAFF ONLY TREAT CUSTOMERS AS WELL AS THEY ARE TREATED
  3. Your introspective view will mean you loose sight of the long term growth plans
  4. It will mean that you bring about no growth or slow growth into reality
This was an extract taken from the Recent workshop 'Grow your firm during 2009'.

Related Articles
  Why You Must Keep Marketing Through The Recession
  Instant Article Writing Template: The Top Mistakes Article Writing Template Explained in Detail
  Common Costly Mistakes When Selling A Product Online
  Are there any businesses that are recession-proof?
  Do You Know These Link Building Mistakes?

Home > Work-Life > David Oliver > The Most common Mistakes Made In A Recession
Article Tags: accountants, admin clerk, cellpadding, economic landscape, full effect, internal focus, introspection, joy of work, levels of motivation, margins, outset, recession, senior partners, shutters, significant numbers, slim hope, table id, tea lady, uncertainty

About the Author: David Oliver
RSS for David's articles - Visit David's website

Focusing on work-life issues, David Oliver is highly sought after in business conferences the world over for his charismatic, motivating style. He has spoken in a wide variety of settings to over 200,000 people - from large groups running into thousands to small workshops. 98% of delegates polled have rated his material as either excellent or good. This has ranged from both small owner managed businesses right through to international corporates such as HBOS, Mitsubishi, Microsoft, H.P., Lloyds, and B&Q. 'David Oliver is an inspiring keynote and motivational speaker' Gordon McKenzie, Country Manager Microsoft Scotland Recent assignments include addressing 350 delegates in Belfast at the 'Business leaders' conference and running work-life balance symposiums with the Ministry of State for community development in Singapore. Working directly with a government minister to address several large public groups on work life effectiveness. A board member of HBOS (Halifax Bank of Scotland) said of David after the keynote address at his senior management conference 'it was a tour de force but also an incredible challenge' David Oliver is an Author Of 9 books

Click here to visit David's website
Dashed Line

More from David Oliver
Dont Go To Work Alone
Stop the madness
The Compass or The Clock
Stress Defence Number 1 Find a Mentor
The Most common Mistakes Made In A Recession


Related Forum Posts
Re: Online frauds Re: Online frauds - [quote="OmnivoreInk":2kch3zq1]I am concerned that the younger generation doesn't have the common sense to figure this out, though... but then... a lot of things the younger generations do concern me![/quote:2kch3zq1] You know - that goes along with my firm belief that common sense and common courtesy just aren't that "common" anymore. Shri
Re: HI EVERYONE Re: HI EVERYONE - HI All, I'm back too.. Was on a hiatus creating an online product. Made myself accountable for that by getting customers to pay for it first while I created it with them.
Re: Is Google Search getting better or worse? Re: Is Google Search getting better or worse? - I havenīt noticed a worsening in Google search either, not in the sense that the search is hindered by the new algorithm. I will quote GT Bulmer though when he says that the results are getting way more personal and refined. Judging how a search engine works, you have to think about the common user, not the web-enthusiast, and the common user doesnīt have much time or knowledge to tweak the SE when heīs looking for something, or he just doesnīt want to - and why should he really?
Speed Networking anyone doing this? Speed Networking anyone doing this? - I ran a speed networking event in December and it was a phenomenal success. We had 38 attendees. Made lots of connections and had a great time. Has anyone else ran this kind of networking event? If so, what was your experience? .
Re: All the Secrets to Getting a Lot of Traffic Using Google AdW Re: All the Secrets to Getting a Lot of Traffic Using Google AdW - Hi Zeke, Thank you for this very informative post about PPC. I've done some homework and played around with PPC before. Made some money, but lost a bunch too. I will take your wisdom into consideration for my next campaign. I do have a question. Currently I'm only using Google Adwords. I have heard that MSN provides better conversions due to the demographic and types of users. Would you mind sharing your insight and any experience on this? Thanks, Alan


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.



Featured Article


Bottom Footer
Share for a Cause












Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Gas bills go up by 18% can we take any more

12 Principles to Spark Innovation

How To Be A Management Legend

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.