There is a process all businesses take, whether in real estate, aged care, banking, manufacturing, to manage the status quo in times of crisis. Crisies we are talking about depression, recessions, unemployment, falls in the economy, pandemic etc.
The interesting thing about this concept is there is a standard 3 step process that directors, principals, business owners take to ensure that you don’t lose your business. We naturally look to:
We head straight into a fight or flight mode. We stop the expenses, reduce overheads, cur spending and shut down whatever isn’t necessary.
We look to lock in recurring revenue streams, and extract every dollar we can to ensure some money is coming in
Once we had protected our business and protected the profit, we then looked to our people. We reduced salaries, cut hours stood down non essential staff and terminated those that weren’t necessary. Some leaders embraced their remaining team members, drew them in close and functioned as a well oiled machine, much like our business did. Other leaders focused on micro management and driving the team hard but ineffectively and then there were some that forgot about their teams altogether and left them to “do there thing”.
This process is all good and well, however, directors, principals and business owners don’t take the reverse approach when attempting to come out of depression recession, unemployment etc.
The risks of not putting people first as your current resource can be costly. Ensuring you have the right people in place is imperative as we start to look to our people who will drive profit and increase revenue and in turn, protect our business.