Insights

• CEO Perspective
• Newsletter
• Articles
• Books

As I work with small to medium-sized business leaders struggling to find their way through current challenges, I find that more and more are significantly cutting costs to the detriment of driving the revenue growth that their companies so desperately need. Fear is shutting them down to a fact they already know -- cost-cutting alone could irreparably damage their business, leaving it poorly positioned to take advantage of new opportunities that arise both during the recession as well as when the economy starts its inevitable upturn. If it is necessary to cut costs, it's best to cut quick and deep once and then move on. Not spending in the areas where there is the most potential for growth could prove fatal. Do continue to invest in revenue-generating activities like marketing and sales to elevate your voice in the market and seize the customers that your competitors are now neglecting.

I am also seeing business owners who show signs of "deer in the headlights", too afraid of the bad news of the economy to do anything but just sit tight and wait it out. They may not realize it, but they are missing opportunities and losing market share to their competitors.

And though I am finding those afraid to move forward, I am also finding leaders who have the courage to take action where others hesitate. They are the hidden successes, seizing the opportunity to drive their business forward even in these tough times. A good example of this is a customer who engaged Cerius late last year, a national retailer who did have to go through some deep cuts but knew that 10% negative growth was not going to reverse on its own.  Together we developed a strategy to bounce back through the leadership, process and sales discipline that an Interim Sales Executive brings. Revenue is now up 13% over last year. Has the economy gotten any better?  Not measurably -- but the difference here was that they took control and now have a solid upward trajectory.

If you feel that your executive team lacks the experience to pull your company out of this recession, seasoned Interim Executives experienced in recession-reversal strategies can help you bounce back. A good friend sent me to speak to a CEO earlier this year who watched his revenues go down because he was afraid to take action, fearing that if he invested in a declining situation it would only make his situation worse. His management team, lacking experience in recession strategies agreed with him, thus they sat back and watched as revenues continued to shrink.  He finally called me back in and said that he could no longer stand to watch his company wither away. We identified the right part time Interim Executive to help initiate the processes needed to transform the company and to lead the execution of the plan.

I will give you one last example of a company who stood up and took action and that was a manufacturing client who earlier in 2008 saw difficult times coming and started assessing what they needed to do to mitigate their risk. They hired a part time Interim Operations Executive to help them create operational efficiencies, processes and metrics. Results for this company were 20% reduction in inventory, 50% reduction in customer backorders, increased cash flow, increased customer satisfaction due to 33% better delivery times and strong scorecards that helped motivate and make the employees more accountable. That's a strategy to bounce back!

So the moral of this story is... Don't let fear destroy your company. Be one of the success stories today of business leaders taking action to move their companies forward and continue their growth even through these tough times. Have patience and clear goals, continue to spend in those areas where there is the greatest potential for growth, keep your name out in the marketplace, continue to provide quality products and services to your customers and if you do not have the experience you need on your executive team, hire an Interim Executive who has the experience to mitigate risk and move your company forward on the path to growth.