| Survival: The Name of the New Economic Game | | | | who will produce results and help you through these |
| People rarely have a neutral reaction to Survivor, the | | | | uncertain times. Sometimes this means looking at |
| reality based TV show. Love it or hate it, with 51.7 | | | | people who don't quite fit the mold in terms of sex, |
| million viewers for the final episode of its first season, | | | | age and race. Remember, you're running a business |
| it's impossible to ignore it. Given our turbulent economic | | | | and the name of the game is survival. If you want to |
| climate, Survivor is a powerful metaphor for what's | | | | surround yourself with people who can play golf and |
| going on in the marketplace. We'll look at some of the | | | | laugh at your jokes, join a country club.Employ or |
| parallels between Survivor and the real world. Then, | | | | OutsourceIn an uncertain economic climate, the |
| we'll focus on survival strategies to help your company | | | | decision to expand your team should be weighed |
| get through the rapid fluctuations of our turbulent | | | | carefully. Is there any point in dramatically increasing |
| economic times.If your company has had a successful | | | | your employee base to respond to new projects? An |
| year of growth and profitability, you may be tempted | | | | unexpected change in the financial stability of even a |
| to point your browser elsewhere. If you read on, you'll | | | | few of your key clients can mean a bunch of layoffs |
| find that the survival strategies we're about to discuss | | | | a few months from now. Hefty payouts for benefits, |
| are even more effective if you use them as | | | | severance and vacation pay can substantially trim |
| preventative measures before your company runs into | | | | your bottom line. There is a pool of freelance and |
| difficulty.The StakesIt's tempting to laugh and shake | | | | contract talent available to handle challenges at all |
| your head when you watch Survivor but the parallels | | | | levels of the organization. Ask yourself:* Does this |
| to the real world are way too close for comfort. Just | | | | project really have to be handled by an employee?* Is |
| like the current economic landscape, the terrain is | | | | outsourcing a viable option?* Would we gain more |
| rugged and the competition is fierce. Some people will | | | | flexibility by responding to this increase in business by |
| do anything to make it. We've all met Deb, the highly | | | | using freelancers or contract workers?* Can |
| productive and competent employee who rubs people | | | | tele-commuting be used as an alternative to increasing |
| the wrong way and gets fired for her efforts. We've | | | | overhead in the form of office space, furniture, and |
| also worked with Gerri, the attractive young woman, | | | | computer equipment?Ask your HR team to provide |
| who will use any ploy, sexual or otherwise, to get | | | | you with an analysis to compare the full cost of filling a |
| ahead. Alicia, the competent and assertive | | | | position with an employee vs a contractor. Factor in |
| African-American employee who gets canned | | | | the costs if there is a need to lay the employee off. |
| because people find her intimidating. What would the | | | | The results may surprise you.Be Compulsive About |
| corporate world be without the inevitable employees | | | | Customer ServiceWhen times are tough, you can't |
| who smile in the face of co-workers and then cut | | | | afford to lose even one customer to the competition. If |
| them up behind their backs? Worst of all, on Survivor, | | | | one customer has a negative experience with a |
| the posturing, rumours, gossip, and backbiting intensify | | | | member of your team, that customer will tell dozens of |
| as times get tougher and the competition stiffer.What's | | | | people about it. This can gradually erode your |
| sad is that all of these ploys, plots and schemes sap | | | | customer base and trim your profits. This is not the |
| creative energy, kill morale, and undermine the | | | | time to cut back on training your front line employees. |
| effectiveness of the team at the very time when | | | | You need to ensure that they have all of the training, |
| everyone should be pulling together. When the stakes | | | | tools, coaching and support that they require to deliver |
| are high and you can't afford to lose, working as a | | | | top notch service to your customers. That is what will |
| team becomes a critical survival strategy.On Survivor, | | | | give you the competitive edge in this |
| make too many wrong moves and you face | | | | market.Remember that customers come in all shapes, |
| starvation, the cold or injury. In the real world, it's | | | | sizes and colours. You need to make it clear to all |
| downsizing, layoffs and bankruptcy. As | | | | members of your team that their biases and hang-ups |
| Vancouver-based 360networks Inc. discovered, it | | | | belong at the door. Every customer and every |
| doesn't take much. Just one too many clients deciding | | | | employee deserves to be treated with dignity and |
| not to go ahead with a project or postponing a | | | | respect.Talent RetentionIn this turbulent economic |
| decision to use your services until next quarter and it | | | | climate, there is a misconception among some senior |
| can be game over.Changing Times ... Changing RulesIn | | | | management teams that they no longer need to worry |
| the real world, just like on Survivor, no one is immune. | | | | about talent retention. Even and especially if you have |
| Anyone can get "voted off" the island. For example, up | | | | had to consider such drastic action such as layoffs, |
| until recently, the wireless communications industry, has | | | | taking proactive steps to maintain the loyalty of your |
| been regarded as virtually recession proof. However, it | | | | best talent is critical. If you treat some employees |
| has not been without its casualties. 360networks Inc. | | | | harshly during downsizing, then your most valued |
| was worth $25 billion when its stock was at its peak. | | | | employees will wonder if they're next. Their tendency |
| Its stock tumbled to the status of penny stock on the | | | | will be to jump ship. Frank discussions with your team |
| Nasdaq when it was not successful in obtaining a | | | | about the direction of the company, it's challenges, and |
| lucrative US$350 billion contract with Teleglobe | | | | prospects are important. It's best if employees hear |
| Inc.Telesystems International, headed by Charles Sirois, | | | | the latest news, good, bad or indifferent, from you. |
| considered to be genius with a string of success to his | | | | Otherwise, the rumour mill will work overtime and |
| credit, has lost 90% of its value. The telco sector has | | | | undermine your efforts. Companies also need to |
| been particularly hard hit. In the Toronto area, two | | | | shape and mould an employee friendly culture so that |
| companies that were headed by executives with | | | | your best people will remain loyal to you until things turn |
| stellar track records and for whom I have a great deal | | | | around. During the last recession, companies that took |
| of respect, have gone out of business.The list goes on: | | | | advantage of the situation and made unreasonable |
| PSINet Inc., an internet pioneer, has filed for bankruptcy | | | | demands of their team, sowed the seed of talent |
| protection in the US; Sony, Lucent, HP and 7.24 | | | | recruitment and retention challenges that plagued them |
| Solutions are among the companies that have | | | | for years.Market IntelligenceWhen there is a downturn, |
| announced layoffs. A year ago who would have | | | | marketing is often one of the first areas to be cut. |
| figured that such high tech giants as Cisco Systems | | | | Remember, Eaton's, a Canadian retail giant, went out |
| and Nortel would have been tottering? Who could | | | | of business because its senior management team lost |
| have predicted the meltdown? Small businesses have | | | | touch with their customers and marketplace trends. To |
| been particularly hard hit. I personally know of two | | | | survive this economic crisis, you need regular and |
| consulting firms that have been struggling after over a | | | | accurate data about your customers and your |
| decade of success.Survival is the name of the game | | | | market.What marketing strategies have been most |
| in this economy. It's tough out there so it's not hard to | | | | effective in bringing your new business?* Focus on |
| understand why a show that enacts these dynamics | | | | those areas,* Save money by eliminating efforts that |
| metaphorically would appeal to such a large | | | | haven't been paying off.What are your competitors |
| audience.What's a Company to Do?So what's the | | | | doing?One of the contributing factors to the problems |
| answer? Truth is there are no magic answers. Just | | | | in the telco industry is that too many companies have |
| some strategies to consider. To survive this economic | | | | been focusing on the same narrow market niche |
| crunch requires a change in mindset. It involves | | | | creating an over supply in the market.The real estate |
| recognizing that what worked last year may not be | | | | market is setting itself up for a similar problem by |
| the right strategy for today. It will take the courage to | | | | building too many luxury condos for the upscale |
| try something different, a lot of support from suppliers, | | | | market.What new market niches can you target?* |
| partners, and employees and, lots of | | | | The ethnic market is growing dramatically in North |
| prayer.RetreatYes retreat. It's impossible to come up | | | | America but you would never know it when you look |
| with innovative solutions when you're charging around | | | | at most advertising campaigns.* The internet has |
| putting out the latest fire. It doesn't have to involve | | | | literally opened up a world of opportunities, even for |
| going to a resort for a few days. Save that for the | | | | small businesses. If your traditional markets, are |
| party to celebrate your survival. If you really feel you | | | | stagnating, look to areas of the world where there is |
| must get away, it's best to trim it down to one day at | | | | growth and an increasing demand for your products |
| a location within 30 minutes driving distance from your | | | | and services.Re-think Your OfferPinpoint your core |
| office. Skip the golf and save by not forking out cash | | | | areas of expertise and do some brainstorming to |
| for hotel rooms. When the market is shifting so quickly, | | | | identify other areas in which you can apply it.Bill |
| a weekly 2 -3 hour session where you zero in on a | | | | Margeson, CEO of Markham based, CBL Data |
| key area is probably a better plan anyway. Kick it off | | | | Recovery Technologies Inc. used to re-furbish and |
| with a day off-site if you like but it's important for your | | | | repair hard drives. A drop in the price of hard drives |
| senior management team need to get together to | | | | resulted in reduced demand for his services. Bill applied |
| really analyze your strategy in 4 key areas:* | | | | his expertise to data retrieval. In 2000, the company |
| recruitment and deployment of talent | | | | generated a profit of over $1,227,000 and was ranked |
| * customer service | | | | by Profit Magazine as the 89th fastest growing |
| * market intelligence | | | | company in Canada.Harness the Creative Drive of |
| * talent retentionIf you have the skills to facilitate these | | | | Your PeopleEarlier I mentioned that there are no magic |
| sessions yourself, then go for it. Otherwise, take one | | | | answers. However, frontline employees who interact |
| of your senior facilitators out of the training room for a | | | | directly with your customers are in an ideal position to |
| while, invest in facilitator training or hire a professional. It | | | | give you some clues. By involving your people in |
| isn't always best to go with the big guys. Remember, | | | | regular brainstorming and problem solving sessions, you |
| when you're forking out $3500 a day to a large firm, a | | | | can collect a lot of valuable information and ideas to |
| huge chunk of that is overhead. Are they charging you | | | | help you resolve some of the issues you're facing. For |
| senior consulting rates and then sending you a rookie | | | | example, your frontline employees should be able to |
| who they're paying $600 a day? Then, you're helping | | | | help you generate strategies to streamline your |
| them solve their survival challenges, not yours. A | | | | processes and reduce your costs. This could |
| consultant from a smaller firm who has regular and | | | | significantly boost your profit margin. Concord Idea |
| first hand exposure to what it takes to win the survival | | | | Corp. ( number 42 on the Profit 100 ranking ) is able to |
| game is more likely to bring you the expertise you | | | | produce memory at 33% of the cost of its |
| need at this time.I can hear you asking "are you for | | | | competitors. Its 2000 profits were in excess of |
| real?" Absolutely! If you can't free up at least 3 hours a | | | | $800,000. It would be a shame to overlook this virtual |
| week to focus on strategic issues because the latest | | | | gold mine within your organization.The Bottom Line |
| technical glitch, customer or employee complaint keeps | | | | Survival involves:* getting a clear picture of where you |
| landing on your desk, it's a huge red flag that you can't | | | | want to go,* building a management team that shares |
| afford to ignore. You need a super strong team at the | | | | your vision and communicates it clearly,* getting your |
| director and management level that's competent | | | | team to pull in the same direction and generate |
| enough to handle the latest crisis and keep you | | | | valuable ideas and solutions.You'll reap the rewards in |
| informed. If you don't have that, then you've just | | | | the form of:* high morale, |
| identified your first area of focus for your survival | | | | * reduced turnover, |
| strategy sessions.Talent Recruitment is not an HR | | | | * a committed team focused on your goals, |
| IssueDuring an economic downturn, companies often | | | | * an improved bottom line.When the economy |
| overlook the importance of a solid talent recruitment | | | | recovers, we hope that some of these strategies will |
| strategy. This is not the time to become complacent. | | | | help your company be a survivor.The Rules of |
| An effective team will be your important weapon in | | | | SurvivorThe goal of the game is to survive. The last |
| your fight for survival.As a result of the downsizing | | | | player to remain on the island at the end of the game |
| that's going on, a growing pool of qualified, talented | | | | wins $1,000,000. The game begins when 2 teams of |
| people is available on the market. We haven't seen this | | | | strangers are left in a rough terrain. There is no |
| in years. Organizations have the opportunity to | | | | opportunity for planning before the game begins. Each |
| thoroughly screen and assess candidates to ensure | | | | team has minutes to gather whatever supplies they |
| appropriate skill level and corporate culture fit. Pinpoint | | | | can grab and trek across rugged terrain in search of |
| the key competencies that you require in your | | | | their campsite. Exhausted and hungry, they must work |
| management team. Clearly define your requirements. | | | | together to construct some make shift dwellings, get a |
| Incorporate behaviour based interviews, rigorous | | | | fire going (without matches) and figure out what |
| reference checks and work samples into your talent | | | | they're going to eat in the middle of nowhere. The |
| recruitment strategy.Apply the same diligence to your | | | | inevitable jockeying for position and politicking begins |
| promotional decisions. This is not the time to let the old | | | | almost immediately. |
| boys' network come into play. You need top talent | | | | |