Frequently as CEOs we are forced to respond quickly to an external threat. No doubt, the biggest threat, at the moment, is the effect of the recession on your company. Maybe we could take our time in the past to make measured decisions. Not anymore. The board, shareholders, clients and especially employees are all clamoring for duck and cover action. Protect their jobs. Protect the profits. Keep company value as high as possible. Under this pressure many of us, as CEOs, could easily make a few common mistakes. Let’s avoid the pain and gain the advantage to act quickly by avoiding these three mistakes.
1. “We are not affected.” Or the opposite: “It is a complete rout.”
First, look to see how you really are affected by the recession. Not all companies, industries or areas are affected the same. It is common to have a few business sections actually flourish in recession when so many are in decline.
Your preparation will make a huge difference in the severity of the effect you will suffer. One of the harder hit business sections is hedge funds. Most suffered tremendously for the risks they invested in. One fund, Soros, predicted the recession and prepared its portfolio. Their portfolio is still profitable just smaller.
You could do likewise. It’s not too late. Look objectively at the general economy trends and specifics in your profit chain for effects that could still disrupt your business. Then make appropriate plans. Start acting on your plan though or it may be too late.