WHO’S KILLING WHO?

Times are very difficult for most but are we killing our own businesses?

It is absolutely astounding the effect that recession is having on companies, on pricing policies, on marketing plans and (in particular) on staffing levels.

During the last two weeks I have been told;

“we have been instructed to get rid of 10% of staff from every department”

“we are taking orders at whatever price we can get”

“once we reduce the staff levels we would like you to review our processes”

“we are just worried about getting through next year”

To me these are all symptoms of PANIC

The next few months (and possibly longer) are going to be very difficult and to feel “panicked” is in no way unreasonable.

If nothing else, 2008 has proven than none of us know what is going to happen next and that we all need to be agile in business.

My concern is that by cutting too far and too quickly we will actually kill our own companies.

If I had all the answers to the following questions I would be very wealthy so I would like to do the easy bit – pose the questions?

• How can I reduce costs without affecting my business (procurement costs, logistics optimisation, lean processes etc)?
• Will these changes affect customer service (if the answer is yes you are risking your business further)?
• How will this change affect cash flow (now, in three months and after the recession)?
• If you are cutting costs are you managing the message to your customers (they will find out and fear you are not a stable supplier)?
• When my business is ready to grow again are these critical resources (will I be able grow quickly again)?
• Are you sending negative messages to your clients (I recently found a desperate advert offering space within a client’s building “to help them through the recession”)?
• Is this change based on historic information or guesses of the future (both of these are wrong – history is history and guesses are only guesses – do the research)?
• It all sounds obvious but if it really was we would not have any problems in the first place. If you are faced with these types of issues let’s talk about what can be done for the benefit of your business.

Ian Middleton