So, are we in a recession yet, or not? Some, like Alan Greenspan, say yes; others, like President Bush, still say no. The fact is, it doesn’t matter. Whether Recession 2008 has officially begun yet or not, your imperative remains the same:Don’t dither, deal with it. As a C-level executive, you get paid to make smart decisions and take prompt action. So what’s your best move right now?
Get Creative
Most C-level executives are happy to get creative during boom times, but during a recession, their natural inclination is to hunker down until the tide turns. But when a recession comes along, it’s more important than ever to get creative.Here’s why:
·Sales are tougher to come by during a recession. Your products or services must have more compelling value propositions than ever; your advertising must be more memorable and persuasive; and your sales force must offer more attractive programs. All your revenue drivers must get creative or your company will bear the brunt of lower volumes and prices in your industry.
·Cost savings will only help your bottom line if you find more creative approaches than your competitors do. You can’t simply reduce advertising and T&E budgets, freeze hiring or lay off your lowest performers. After all, your competitors will do those things too, and there’s an iron-clad rule in economics:in highly competitive markets, any savings that are common to most suppliers will soon be passed along to customers via lower prices. So while your cost-saving tactics may well include the usual suspects, remember that the only savings you’ll get to keep will be those derived from ideas your competitors don’t think of.
·Recessions are actually the best time to strengthen your competitive position—in fact, studies have shown that companies have twice as much opportunity to grow market share during recessions as during expansions.
Get On The Stick
Time is money, and that’s never more true than during a recession. But wait—if each dollar, and each minute, you invest during a recession must be more productive than ever, what exactly should you do to generate a consistent stream of creative ideas to improve your bottom line?
Here’s one thing you shouldn’t do: Schedule brainstorming sessions. Why? Because brainstorming is typically an unfocused activity that involves a staggering amount of energy yet rarely produces anything productive.
Instead of traditional brainstorming, use brainsteering, a new approach that introduces just enough structure to focus creative energy, steer it in a productive direction and consistently generate valuable ideas.
