Some tools to combat stalled economy in ’10

PBN Staff

01/09/2010

If we’ve learned anything over the past couple of years, it’s simply that nothing is easy. No matter what the product or the industry, doing business – and staying in business – is no picnic.
That may not change much in the next year or so, either. Most Americans seem to think that a cold economic winter will be around for a while.
But we do ourselves a disservice if we believe that the macroeconomic climate necessarily determines whether we succeed or fail. John and Peter Greene came back into the ground- transportation business just as the recession hit and corporate travel was being grounded. Yet, John and Peter Greene’s new company, ETS International, which serves the Greater Boston market, went from zero to 60 in nothing flat and has shown enormous growth in 2009.
The reason for such success is simple – incredible focus, in-depth experience and a vision of what can happen if you work at it hard enough.
Here are some other qualities that can contribute much to business success:
&#8226 No one is exempt when it comes to performance. Few CEOs earned more respect than A.G. Lafley of Proctor & Gamble. For years, he was an icon of American business if there ever was one. But when the 2009 numbers sagged, he was sacked. It’s the same story with Bank of America’s CEO Ken Lewis, who literally built the first truly “national” bank in U.S. history. But when BofA hit the wall, he was history.
&#8226 Unsupported action leads to disaster. During the recession of the early 1980s, Coca-Cola panicked as its 52 percent market share plummeted to 24 percent. In response, the company threw out its 100-year-old formula and came up with a taste more like that of its rival, Pepsi-Cola, in an effort to stop its losses. It’s still known as the dumbest decision ever made by a company. After three months, the old formula was back, and it’s still known as Classic Coke. &#8226 Perceived value is real value. Even in the most difficult of circumstances, experts often advise against major price-cutting and advocate a value-driven strategy. Hyundai, the auto manufacturer, is amassing new customers with its value, safety and 100,000-mile assurance program. It was the same with Applebee’s restaurants. When its customers dropped down to fast food, business sank. But Applebee’s responded with a value offering “two meals for under $20” that is pulling back lost customers.
&#8226 Urgency is in. Not long ago, someone overheard an employee say, “Well, the customer just needs to understand that …” No matter what we may think, that’s a killer comment, as are these: “We can take care of that tomorrow” or “Do we really need to do that?”
&#8226 Never listen to those who think they have all the answers. Anyone wanting answers should spend their time listening to talk shows. What they won’t hear, however, is anyone asking questions and it’s questions that uncover problems and help make improvements.
&#8226 Doubt your perspective. When urged to change General Motors’ deeply inbred corporate culture, its former CEO, Fritz Henderson, is reported to have said, “But that’s all I know.” This candid response told the story. He and his management team were prisoners of their own perspective.
&#8226 Watch out for the subversives. These people are skilled at undermining and derailing action. They’ll do just about anything to avoid getting things done. Using clever delaying tactics, they always find an excuse for not getting around to reviewing a project, preparing a proposal or following up. The best solution is to help them find a job with a competitor.
&#8226 Encourage customers to pick your company’s “brain.” Every business has proprietary information that must be guarded. At the same time, sharing ideas, insights, experience and helpful information is one of the most effective ways to draw prospective customers into a company’s orbit. White papers, newsletters and timely bulletins are the tools for communicating value to prospects. Just remember not to hog-tie prospects by asking for information too soon. &#8226 Watch out for bandwagon thinking. A marketing consultant tells of a meeting at which the sales manager said the company needed to get into social media or be left in the dust. Although he was making an important point, it’s also “bandwagon thinking. And it’s dangerous because it’s seductive, taking our minds off reality-based issues. A few years ago, e-mail blasts were the “answer,” with companies wasting billions of dollars on endless lists and frenzied distribution – all with little or no results. The consultants often do their best to make us feel we’re out-of-date if we don’t move instantly – and buy their services. The way to avoid such costly traps is to do your homework first.
While going through comments about “what the recession taught me,” several ideas stand out:
&#8226 “Leftovers make really great meals.”
&#8226 “Security is an illusion.”
&#8226 “There’s a difference between needing and wanting.”
The recession was a “shake-up” call, forcing us to realize that maybe we just thought we were giving our all.
The tasks ahead may be more demanding than ever and certainty of success may always be a question. Yet, we have the tools to put a troublesome economy behind us, if that’s what we decide to do. &#8226