This is an excerpt of the information contained in our e-book The CEO Playbook: Weathering the Storm. If you are interested in the full copy with 10 actions please contact us.

Sailors are constantly keeping their eyes on the weather so they can proactively prepare for impending bad weather.  CEOs can learn a lot from this approach.  The economy has been on a roll for the past several years with low unemployment, low interest rates and overall stability.  That seems to be changing.  The stock market has been particularly volatile in recent weeks, supply chain issues continue to plague businesses, fuel prices are out of control and inflation is running rampant with the CPI at over 8%.  Astute CEOs should be paying attention to these warning signs and preparing their businesses for potential rough seas ahead.

Rough seas or in business terms, a recession, doesn’t need to mean treacherous times for a well prepared business.  In fact, some businesses can leverage a downturn as an opportunity to win market share, acquire top talent and outpace competitors.  Below are five tactics that should be considered with volatility and a potential economic storm brewing on the horizon.

The last major downturn was back in 2008.  We have had fourteen years of smooth sailing and good times, despite the pandemic, war in Ukraine and social unrest.  Many CEOs and leaders today have never experienced a significant downturn in their tenure as a leader.  With experience as the best teacher, I would like to impart some wisdom from my past.  In 2008 I was leading organizational development and post merger integration for Doosan, a Korean Chaebol (Conglomerate) which had purchased Bobcat construction equipment and two other business units from Ingersoll Rand.  The company saw the global housing boom and construction growth as the ideal time to enter the US market.  Doosan paid $4.9 Billion for Bobcat and the other assets.  Not long after the deal closed, the housing bubble burst and the global economy went tumbling into a recession.  Demand for the Doosan/Bobcat products dwindled, and the organization was thrust into a dire situation.  We called an emergency meeting for the Doosan Infracore International leadership team to meet in Chicago to create a playbook to navigate the difficult times ahead.  I was tasked with structuring and facilitating the meetings.

I began with Our Burning Platform:  Why are we here?

·        The landscape has shifted

·        There are problems to solve

·        The organization is in a crisis

·        We don’t have much time

·        We must focus our efforts and engage our employees

·        We must prove the resolve of the organization

·        There is a call for leadership

THIS TEAM IS BEING COUNTED ON TO SOLVE THESE ISSUES

That was the first slide that I shared to kick off the meeting.  It was critical to create a sense of urgency. Next, I outlined the goals for the day:

1.       Create an aggressive plan to meet the EBITDA target and inventory reduction targets for 2008/2009

2.       Perform a core business strategy re-assessment and realignment.  What is core to our future?

3.       Develop a rally cry and reward system

At Groove Management we have created a CEO playbook for leading through tough times.  Below are three of our ten action items. We are providing this high level overview from the playbook:

1. Take Action Now:  Do not wait until the storm hits to batten down the hatches.  Prepare your organization and your crew for what might lie ahead.  Create a plan based on the potential severity and length of the potential storm ahead. Contact us to learn more

2. Headcount Freeze:  Too many organizations implement hiring freezes during tough times.  There is a big difference between a hiring freeze and a headcount freeze.  Freeze your FTEs not your hiring.  Contact us to learn more

3. Travel Frugally:  Forget about travel bans, instead alter your travel policy.  Require more notice before booking flights, require everyone to fly economy class, rent smaller cars, stay in more affordable hotels, and create lower per diems for food.  With a little bit of focus it is possible for employees to continue to travel, but at a much lower cost.  Contact us to learn more

      

Consider this just a teaser. We have created an e-book titled the CEO Playbook which we have shared with our clients. Please reach out to us for a free consultation if you are interested in receiving the e-book,