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This Is Not a Recession

Don't think of our current economic crisis as a recession. Instead, think of it as a recalibration.

Everything is different now.

If you think of it as a recession, you may be tempted to "hunker down" and wait for the economy to cycle back.

If you think of it as a recalibration, you will be motivated to focus on what you have to do differently, since everything is different now.

The way your business generates results is different, now.

Your customers think differently, now.

Your customers care about different things, now.

Your customers act differently, now.

Your customers may actually be different people, now.

Customers aren't disposable anymore; more than ever, you have to create sustainable customer relationships.

Everything is different now.

I'm posting this on January 7, 2009. One thing I'm convinced of is that the world I am working in today is different from any world I have ever done business in. The world has been reset. We can no longer look at the "LY" column on reports to use last year as a benchmark for what will happen this year.

(Please join me on January 9th for my free 2009 Readiness Teleseminar. You can register here. I'll address six questions that you must answer, to thrive in '09. Please sign up, and if you can't make it live you'll receive an audio recording after the event.)


[Visit Steve's website and share ideas at www.yastrow.com. See his books at www.yastrow.com/products.html.—CM]

Steve Yastrow posted this on 01/08/09.

Comments

Recession makes me think of other "re-" words: recede and reactive.

I definitely can't recede this year! If I get obsessed with reacting to a recession, my business will tank.

Instead, I need to be proactive. Today, I made a list of all the things I can do to influence new clients. I'm really looking forward to the Readiness Teleseminar for ideas on latent profit and how to help my clients throughout the year. If I can help them in 2009, think of how loyal they will be to me in the future. I think that reasoning can apply to all consultants.

Posted by Amanda Cullen at January 7, 2009 5:32 PM


"Recreation"

Posted by Contraire at January 7, 2009 7:01 PM


I like "Re-creation." (I also like recreation)

Posted by Steve Yastrow at January 7, 2009 7:15 PM


Tom,
I admire your creativity for painting the landscape differently. I think every major business event makes us reflect and reevaluate our core assumptions but by branding this as recalibration or re-creation it focuses our minds to introspection and establish new frameworks to ensure success.

Posted by Arvinder Singh at January 7, 2009 8:42 PM


reschedule. retool. rethink. rework. reengage. reward. reinvent.

It's not what was or what did, it is what can it be?

Good thought Steve, Eliot

Posted by eliotw at January 7, 2009 11:08 PM


Thank you Steve.

Re-calibration is a wonderful way to look at this situation. Also, the same thing applies even after we are out of this current mess. Technology re-calibrates the world over and over again.

Even when things are going well, what worked before may not work and your points remain valid even during the good days.

Best,
Raj

Posted by Rajesh Setty at January 8, 2009 2:06 AM


When you are standing in the middle of the tracks and a train is heading your way, it is not smart to consider it a light that is just getting brighter.

If it is a recession, it is a recession. Once we agree on what it is let's be competent and carefully formulate a plan and aggressively execute that plan.

Posted by Small Business Marketing at January 8, 2009 2:58 AM


I totally agree with Small Business Marketing, while understanding the use of language here to try to avoid further disaster. But the acknowledgement of reality is undeniable and avoiding present realities may be be destructive in the long run.

Posted by Judith Ellis at January 8, 2009 3:51 AM


Eliot - you can only re-tool if you buy the lickable Tuf-E-Nuf hammer.....

Posted by PaulH at January 8, 2009 4:51 AM


I think this a great example of what the modern leader faces.

The paradox of one minute thinking realistically about all the risks and problems and the next being able to do a mental flip and become positive and visionary.

This is hard enough to do on your own but a strong leader muct be able to deliberatly take a team through these mental gymnastics too.

This is very much the core part of emotional intelligence and I think this is THE key skill for a modern leader to master.

Of course if you have a strong and diverse team you can call on different people at the right time to provide the different "personalities" required.

Posted by PaulH at January 8, 2009 6:13 AM


Hello!

I tried to register, but the event is full.Can`t even register for the mp3 via e-mail. Can you please send it to me?

Thank you in advance!

Best wishes,
G.

Posted by Gya at January 8, 2009 9:30 AM


I may be wrong but there seems to be a disconnection in PaulH's comment. Leaders are born (and made?) to be visionaries AND to handle issues including risks and problems which entail selecting and dealing with "various 'personalities' required" to move a platform forward.

Have leaders ever done anything otherwise? The dichotomy here reminds me of the old leadership and management argument that I think PaulH believes there not to be a strict demarcation.

In my Inbox the other day came TP's daily quote. This one was particularly interesting and perhaps apropos here. A leader does many things, having many traits:

Tom Peters "Ten Traits of Excellence"

Dreamer-Visionary.
True to Himself.
Story Teller.
Magnetism.
Inclusive.
Stamina.
Persistence.
Thrive Past Failure.
Politician Extraordinaire.
Actor.

Come to think of it there is nothing here about dealing with various personalities, but perhaps it is imbued in being a politician extraordinaire or an actor. Perhaps PaulH's point is that a leader is required in this particular climate to do more of these things for survival.

Posted by Judith Ellis at January 8, 2009 10:17 AM


Judith - you are right - the point I was making is that we should expect leaders to do these things (by definition but with some allowance for human imperfection!). The current situation is one that will really show the difference between the best and the also rans.

Perhaps my first sentence should have read This is a great example of what shows a true leader

Posted by PaulH at January 8, 2009 10:31 AM


PaulH - First, I love the joke about the hammer (:

You tied together my initial comment about having to be proactive and Small Business Marketing's point about, "Hey, this is a recession after all!" We have to make realistic assessments, then ACT on those assessments. The danger of a bad economy is the tendency to just try to weather the storm or batten down the hatches or whatever your favorite metaphor might be for being frightened, lazy and doing nothing. generic cheap viagra

Oh leadership, have you read the great book by Clarke & Crossland, The Leader's Voice? It is a very comprehensive treatise on how to become a leader if you have the guts. Tribes may be inspiring, but it is short on action steps (:

Posted by Amanda Cullen at January 8, 2009 10:45 AM


Cool, PaulH. Thanks!

Posted by Judith Ellis at January 8, 2009 11:10 AM


I've been tracking sentiment in the UK where arguably we are in much worse shape than the US. A quarter of our GDP is tied to financial services and we have huge social welfare commitments.

Well over half of respondents to a quick internet poll had not felt the recession and expected to increase earnings 25% each year.

The large corps are spattering bad news all over the media and no one places it in any context that might lead to action.

HR sites seems to be obsessed with the mechanics of redundancy, outplacement,etc.

I think any venture that entices people to engage with what is happening and to frame actions that are appropriate for uncertainty and radical change is most welcome. Onto my watch list I think.

Posted by Jo at January 8, 2009 1:30 PM


Hey Steve,

Nice reframe! Thanks.

Long time no chat... Been about 8 years, if not mistaken, back when you were the barista of Brand Café.

Congrats on the trajectory.

Martin

Posted by Martin Messier at January 8, 2009 6:09 PM


Beautifully stated, Jo. I also appreciate the piece on your blog on the topic; it too is beautiful and thoughtful. Thank you.

Posted by Judith Ellis at January 9, 2009 8:58 AM


"Recalibration" - Love it.

I found you looking for folks to swap blog links with, give me a shout if you're interested, I've recently blogged about a similar topic.
Mark

Posted by Mark Walsh at January 11, 2009 11:15 AM



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