Stephen H Baum Leadership

Funny how a deadline focuses the mind. I had a conversation this morning with Jim Blasingame, radio host and an incredibly valuable source of knowledge and insight for small business. Preparing for what is always a lively and challenging interview made me extract the juice from brainstorming sessions with my clients and Vistage CEO Group members.

In the summer of 2007, there were signs of the economy faltering. Businesses related to employment saw growth go flat. The mindset moved from growing every quarter to contingency planning and the beginnings of protective measures (e.g., force ranking of staff performance and identification of the bottom decile).

By late 2007, early 2008 the mindset moved to a strict fiscal fitness program. Reducing headcount, eliminating products and services valued least by customers, insuring receivables, outplacing even senior execs whose function is no longer essential until growth returns.

In the most recent brainstorming, the mindset has shifted again: to preparing for a one or two year siege. Extraordinary measures are being taken: renegotiating with health care providers (or replacing them); reducing capacity (preferring to be safe now even if missing out on growth when it reappears); getting “in the weeds” (the owner or CEO reviewing every item in the payables ledger and signing every check); meeting with customers and suppliers and creating new value by creating new ways to partner by sharing rolodexes. And through all of this, communicating, communicating, communicating so everyone understands and is on the same page. And remembering that the boss’ every move, gesture and tone conveys either calm and confidence or anxiety — so leading oneself before leading others.

There will be more posts on this subject in the days ahead.

That’s my view. What’s yours?