dispatches from the new world of work

1) Surviving and Even Thriving Amidst the "Perfect Storm"

While many businesses will fail amidst the current economic crisis through no fault of their own, some will survive in spite of the odds—and a few will surprise by turning a messy situation into economic-competitive advantage. The requisite winner's attitude is expressed by former Ritz-Carlton chief Horst Schulze, commenting on his decision to launch his new high-end hotel business, Capella, despite the market madness: "I do not accept the explanation of a recession negatively affecting the [new] business. There are still people traveling. We just have to get them to stay in our hotel." And, indeed, getting an "unfair share" of "what's left" is near the heart of the matter. Schulze's remarks also remind us that instant, mindless cutting of R&D or training or salesforce travel in the face of a downturn is often counterproductive—or, rather, downright stupid. Tough times are in fact golden opportunities to get the drop, and the longterm drop at that, on those who respond to bad news by panicky across-the-board slash and burn tactics and moves that de-motivate and alienate the workforce at exactly the wrong moment.

Tough times indeed require tough and unpleasant decisions—but thriving, not just surviving, is an option for those who mix wisdom and boldness of leadership with transparency and maximized employee involvement and engagement. Without suggesting that there is anything humorous about the pain that bad times cause, one can say that "this is when it gets fun" for truly talented and imaginative leaders at all levels and in businesses of every sort and size!

Tom Peters posted this on 09/27/08.

Comments

Amen, Brother! We just relocated away from a resort community for a better J.O.B. Our house is on the market for a reasonable price but we're discovering our agent is not aggressively presenting our property but rather "answering the phone." At the same time, in our new town, I'm seeing an "Open" neon sign at the local realty at 10:30 P.M. with a couple of people actually inside obviously "doing stuff." A change is on the way...

Posted by Howard Alford at September 27, 2008 5:27 PM

There is always less innovation, creativity, freshness and passion when things are going well.

‘Necessity is the Mother of Invention’ as the saying goes and I suspect it is greed and complacency that has given birth to the current necessity.

Posted by Trevor Gay at September 27, 2008 6:06 PM

(another) Amen to that.

Whilst acknowledging that if your business is in property, finance or mortgage things are very tough - there is still room for optimism. Business opportunities are out there. At my end of the market in the UK, small businesses are more hungry than ever for my services to help them communicate their proposition and exploit their market potential. Indeed I had a meeting with a new client this morning whose business looks to benefit from rationalisation - as clients look for leaner and more efficient solutions, there is power in the niche provider.

As for daily talk of doom and gloom, people are still spending money. In my local high street shops are advertising for staff not closing down. If you can be enterprising to reinvent your business model, to create fresh opportunities, then you can survive.

It's about how we all deal with Change.

Posted by Ian Sanders at September 29, 2008 11:06 AM

I’m with you Ian

'Problems are just opportunities in working clothes' - Henry J. Kaiser US industrialist (1882 - 1967)

Whilst not wishing to under play the current crisis, I think to some degree (I would say a large degree) it is how we see the situation that will determine the outcome for us individually.

Posted by Trevor Gay at September 29, 2008 5:26 PM

At risk of trivializing the crisis, I can't help but see the news of the bailout's passage or failure to pass and its resulting effect on the stock market as the following vignette:

The storm worsens, so a few (rats?) that perhaps should not have been on the ship in the first place fall overboard, the remaining run to the side to watch them sink, and in the process nearly swamp the ship. Is there no moderation of mind to be had?

We have created a mindset of victimization, such that no one should ever have to feel pain. It is unnatural to the human condition to avoid all pain. It leads to individuals solely focused on their own navels. (Boring, unsociable, leading to sociopathic behaviors when taken to the extreme.) Accepting the consequences of actions has even been scrubbed from Youth Soccer, as everyone gets a trophy, just for participating. Whatever happened to winning with pride?

If praise for success becomes politically incorrect because others might feel bad about themselves, causing someone, somewhere, in Congress in particular, to want to pay these victims for their pain, where are we as a society?

Sobering questions under blue skies,

Lark

Posted by Lark at September 29, 2008 5:48 PM

Tom, come on, what else could Schulze say? I'm afraid I see his comment as a large dollop of necessarily reassuring corporate PR rather than an intrinsic relishing of a messy situation. "We just have to get them to stay in our hotel." Just? Just??? Okay, ultimately it is that simple, always has been, but saying it in today's context sounds very much like wishful thinking. Of which there will be a great deal over the coming months and probably years, as companies of all sorts and sizes who did all the right things still go to the wall.

Posted by Rob at September 30, 2008 1:20 AM