Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
Tom Salonek,
Intertech:
651.454.0013, ext. 12
ts******@*******ch.com
www.intertech.com
EVEN THOUGH there have been some glimmers of hope on the economic horizon, it’s obvious that businesses must manage their human and financial resources extra carefully while navigating the still choppy economic waters.
It is true that economic growth is predicted for 2010, yet people continue to worry and fear losing their jobs and that’s not surprising with unemployment rates now hovering around 10 percent. While unemployment is predicted to level off sometime in the first part of 2010, your employees are concerned and that can undermine productivity.
So here’s my first tip for navigating in challenging times: keep your people busy and generate a sense of constructive urgency. Get them working on something with achievable near-term goals.
If business is slow, consider bartering with other companies so your people can work on a project that benefits your barter partner and your company receives something valuable in return.
Another way to keep employees energized and improving their skill sets is through training and continued focus on research and development efforts. Shortsighted companies sometimes cut training or R&D budgets during slow periods, but that leaves them in a one-down competitive position as things improve.
Keeping employees pumped also involves recognizing their efforts and celebrating their big wins. But don’t stop there. Even small victories or milestones, such as employment anniversaries, should be acknowledged as you seek to keep morale high and people focused. Handwritten thank you notes (on actual paper!) sent to the employee’s home sends a much more powerful note than a casual e-mail at the office.
As the leader, it’s your job to be positive and to focus on the future. While you can’t control what’s happening “out there,” you do have some power over what’s happening within your team and your organization.
Remember and communicate your long-term plan and keep your values alive. In other words, don’t just focus on the tactical or day-to-day details.
Of course, sometimes the situation within an organization is truly shaky and employees’ anxiety is based on reality. In those times, I believe it’s crucial for leaders to talk about what’s really happening and to ask employees to identify opportunities they might see in the current environment.
You also should ask them for their ideas about how to manage for the future. If they have good ideas, execute them! If their ideas are not possible to tackle, let them know why that’s the case. But whatever you do, be sure to keep the lines of communication open.
Stress in the workplace also exists because of situations in your employees’ homes and personal lives. Enlist your most empathetic manager to be the “go to” person for employees who need a little extra support. And if you have an Employee Assistance Program, encourage employees to take advantage of the free counseling and other resources available.
It’s also key to know your numbers. What are your sales today? What’s your cash situation today? How many contacts did the salespeople make? What struck items or problems happened today? If you don’t have a daily meeting to discuss these issues, set one up now.
Now, however, is not the time to focus on fancy or risky get-rich-quick plans. Instead, focus on the business fundamentals. Get sales people calling, have your accounting folks focused on retaining as much cash as possible for a rainy day fund, and focus on solid execution by your employees on the front lines. For sales people, this means ramping up their contacts, working longer hours and keeping their attitude positive. It also means staying on top of late-paying customers.
Since the best new customer is a customer you already have, it’s smart to look for ways to sell new items to existing clients. You also might consider increasing your geographic footprint.
My company, Intertech, expanded its training business for software developers through a $25,000 investment in our virtual training capabilities. By increasing the sophistication and user-friendliness of our instructor-led online training we have been able to grow our training business significantly beyond Minnesota’s border.
If things are truly tight, resist the temptation to engage in anything”across the board.” Doing anything-pay cuts, s and people.
Just as no storm lasts forever, this, too, shall pass. However, most experts are predicting a slow recovery that will take several years to get back to the 2006-07 employment levels. In the meantime, consider these last thoughts.
Act. If there’s something that you think should be done today that will have a long-term impact on your firm, do it.
Continue to manage capital fiercely and continue to keep your accounts receivable current. Just because you’ve survived and are moving forward, your customers may not be. You don’t want to be left holding the bag when they’re no longer in business.
Keep your eyes open for strong additions to your employee base if good people are laid off from a less than resilient competitor.
Look for ways to recession-proof your business model and make continued improvements to make your company stronger for the next economic downturn.
