GUEST POST-The 3 Leadership Sins Guaranteed to Destroy Your Company During Tough Economic Times by Bea Fields
I could write this post today about how to keep your heads up during our crashing economy, but I’ll swallow and then share a dose of reality instead: Millions of people are losing their jobs, and 2009 looks bleak. None of us really know what lies ahead, yet leaders are committing 3 basic mistakes that are guaranteed to take your company down:
1) Reactionary crash and burn tactics.
During a down economy, most leaders have a knee-jerk reaction to fire or lay off human capital or drastically slash marketing and training from their budgets. You don’t have to be a brain surgeon to know how de-motivating this can be to both small and large companies. During a down economy, leaders need to trust their intuition enough to scope out the length and difficulty of the financial crisis and then set goals and objectives for tough times. A leader can do herself a big favor by breaking the rules that she followed during the past and by using radical innovation (the operative word here is radical) to find new and promising opportunities for the future. With this approach, you’ll stop being a “seat-of-the-pants” performer, and you’ll become a thoughtful leader who can bring the future into the present so that you can address it now.
2) Distraction:
During a crisis, it’s so, so easy to start running off in hundreds of directions, throwing a lot of spaghetti on the wall, hoping enough will stick to make payroll and to keep your company moving. This is a recipe for disaster. During tough times, as the leader of your team, it’s time to pull your people together for a few days away from the business and hunker down to discover the one thing you need to be doing that will have the biggest positive impact on your company. Once you decide exactly what that one thing is, go for it with a vengeance, and don’t stop until you’ve got the results you want.
3) Lack of accountability:
Let’s face it. As a leader, you don’t know it all, and right now, you need help from someone on the outside and to be held accountable for your actions (or inactions.) Out of all the many life cycles of a business, a down economy is the time to open up your eyes and ears and talk to people from all walks of life to gain perspective and to stay focused. I find it disturbing to watch so many managers who think they are “all knowing” and who keep telling their employees “This will all turn around. It will all be okay.” While I don’t believe in creating panic, I believe that leaders need a dose of realism during this time, and they need to be held accountable by both a trusted adviser on the outside AND the people they serve. In chapter 7 of The Toilet Paper Entrepreneur, Michalowicz gives some of the best advice: “Find a trustworthy, ass-kicking friend or colleague and ask her to help you stay on track. When you’re accountable to someone, it’s easier to get you off your ass.” Best advice I’ve heard in months.
This post was written by Bea Fields. Fields is the President of Bea Fields Companies, Inc. and the co-author of EDGE! A Leadership Story
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Are you a Toilet Paper Entrepreneur? Do you have a cool entrepreneurial story to share? If so, I want to hear it. E-mail me at Mike@ToiletPaperEntrepreneur.com!
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Compiled by Mike Michalowicz, Author of The Toilet Paper Entrepreneur
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Tags: Bea Fields, Economic Times
December 5th, 2008
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December 5th, 2008
[...] GUEST POST-The 3 Leadership Sins Guaranteed to Destroy Your Company During Tough Economic Times by B… [...]
December 5th, 2008
Accountability is a big one. Not only having accountabilities, but actually being held to them. It’s the last part that many companies and business owners don’t do very well.
Great post,
Matt
December 5th, 2008
Bea,
I couldn’t agree anymore. There is so much that goes on as a business owner, especially when the economy is thrashing and crashing, that to stick our head in the sand is the worst thing. I am regularly listening and seeking the experience of other people – but not just my accountant, wealth manager, etc. contacts – but also my wife, fellow entrepreneurs, customers, contractors, day laborer’s, everybody. For me it gives me a perspective to fully understand what is going on and how people are reacting, then I try to make smart decision in the course of my business.
- Mike Michalowicz
December 7th, 2008
Matt…you make a great point about accountability. Many leaders struggle with this piece, as they don’t want to be positioned as the “bad guy.” The reality is that companies perform much better when an accountability system is enforced, starting with top leaders. It actually gives people a much better sense of safety and security when they know what’s expected.
And Mike…you are absolutely right about getting perspective. When we stay inside our own bubble or community to gain perspective, it can get very dangerous, as the views are often clouded by one view or group think. During tough times, I would ask people who are way off your beaten path…artists, mechanics, the fish market owner, the landscaper…ask your mail delivery guy or gal. Ideas are everywhere, but only if you believe it. Also…ask the opinion of a few kids and teens. They will often give you the unvarnished truth, which can be quite freeing.
December 8th, 2008
Great post, thank you!