This is part of a series of posts I wrote in October 2008 concerning the arrival of the Global Recession...
Conclusion:
To conclude, this is an opportunity for the beginners and small time folks to make it big. Open your eyes and study the environment you are in. You have got everything to gain right now. It is all in your hands. Take the plunge. Remember the Lord and go forward in what you do. Nothing is too late for you to do anything about it if you are doing something about it right NOW!
Showing posts with label root steps. Show all posts
Showing posts with label root steps. Show all posts
Thursday, August 13, 2009
Root Step 10- Final decision on Staff Requirement:
This is part of a series of posts I wrote in October 2008 concerning the arrival of the Global Recession...
Root Step 10- Final decision on Staff Requirement:
The crucial decision for any organisation is always regarding the cutting of jobs. But here, I have given this the last priority because if the above steps are followed as mentioned, then by the time you reach the 9th step your door to a smooth business operation in this crisis situation is wide open and you need not even think of making this kind of a decision. You still have your employee family with you. But one in ten, if you still happen to find yourself in a situation where you have to go forward with this decision, then please do it with utmost respect.
Like I said earlier, unless not in a one day emergency, first give a 6 months’ notice period to the staff in those positions which you feel has to be removed from the company. No biased decisions please. Conduct a performance appraisal based on the actual performance of the employees, announce the entire process and then make the decision. But as you do this, please give them your full support that they will be given offers again as soon as the company pulls up its socks. Also you can use your influence and refer them to various Human Resource Consultancies so that it will be an encouraging factor for the employees.
And while this happens you run the risk of creating insecurity in the minds of the rest of the employees. Once again, I urge you to explain the entire reason behind this move but also tell them the truth that it’s fine if the remaining is willing to stay back even though they just witnessed what happened, but there is very little possibility of a huge salary hike during this period. At the same time, if the company comes up, then a salary hike with the dues and perks should be assured to those remaining.
Let’s face it, the majority of the remaining staff are bound to leave despite the promises because the times are uncertain and to them a recovery may not be possible at all, especially after seeing their colleagues being shown the door, and even if there is a recovery it may take a long time which is a very long wait for them. No one can be blamed here. Neither the management nor the staff. But don’t fret, because even if they leave you can always hire freshers who are ready to work for entry level salaries. So in this way, staffing problem can also be solved. But this is a decision only to be taken in the worst of the worst times.
Root Step 10- Final decision on Staff Requirement:
The crucial decision for any organisation is always regarding the cutting of jobs. But here, I have given this the last priority because if the above steps are followed as mentioned, then by the time you reach the 9th step your door to a smooth business operation in this crisis situation is wide open and you need not even think of making this kind of a decision. You still have your employee family with you. But one in ten, if you still happen to find yourself in a situation where you have to go forward with this decision, then please do it with utmost respect.
Like I said earlier, unless not in a one day emergency, first give a 6 months’ notice period to the staff in those positions which you feel has to be removed from the company. No biased decisions please. Conduct a performance appraisal based on the actual performance of the employees, announce the entire process and then make the decision. But as you do this, please give them your full support that they will be given offers again as soon as the company pulls up its socks. Also you can use your influence and refer them to various Human Resource Consultancies so that it will be an encouraging factor for the employees.
And while this happens you run the risk of creating insecurity in the minds of the rest of the employees. Once again, I urge you to explain the entire reason behind this move but also tell them the truth that it’s fine if the remaining is willing to stay back even though they just witnessed what happened, but there is very little possibility of a huge salary hike during this period. At the same time, if the company comes up, then a salary hike with the dues and perks should be assured to those remaining.
Let’s face it, the majority of the remaining staff are bound to leave despite the promises because the times are uncertain and to them a recovery may not be possible at all, especially after seeing their colleagues being shown the door, and even if there is a recovery it may take a long time which is a very long wait for them. No one can be blamed here. Neither the management nor the staff. But don’t fret, because even if they leave you can always hire freshers who are ready to work for entry level salaries. So in this way, staffing problem can also be solved. But this is a decision only to be taken in the worst of the worst times.
Root Step 9- Devise Tactical and Trust Building Discounts and Offers:
This is part of a series of posts I wrote in October 2008 concerning the arrival of the Global Recession...
Root Step 9- Devise Tactical and Trust Building Discounts and Offers:
A major step towards saving your neck in these battle zones, including taking a big risk of cutting down on the prices of your products. You can also go back to traditional methods and provide samples or freebies in order to promote your product. Special offers and discounts will definitely attract the public who are fed up of seeing price rise headlines everywhere they go. This is a big risk but the odds are towards you and the public will surely respond with a huge sigh of relief which will be something of a new fad in this economic hit crisis situation. This is why I still say it is a time of opportunity for the small guys to come up!
Root Step 9- Devise Tactical and Trust Building Discounts and Offers:
A major step towards saving your neck in these battle zones, including taking a big risk of cutting down on the prices of your products. You can also go back to traditional methods and provide samples or freebies in order to promote your product. Special offers and discounts will definitely attract the public who are fed up of seeing price rise headlines everywhere they go. This is a big risk but the odds are towards you and the public will surely respond with a huge sigh of relief which will be something of a new fad in this economic hit crisis situation. This is why I still say it is a time of opportunity for the small guys to come up!
Root Step 8- Adopt ONLY necessary Cost Cutting measures:
This is part of a series of posts I wrote in October 2008 concerning the arrival of the Global Recession...
Root Step 8- Adopt ONLY necessary Cost Cutting measures:
Having decided on the business model and chosen appropriate distribution channels, the next step would be to list down the day to day necessary activities or purchases and their expenses, and then cross out the less necessary keeping the most necessary activities back on the paper. In other words, eliminate the entire extra and un necessary activities happening in the office which was costing you all this time.
If you have 3 telephones in the reception, remove the one which is being the least used so you don’t need to pay the extra monthly rentals. Replace the high voltage bulbs with latest energy saving bulbs. You not only reduce your bills but your contribution to Global Warming will be even lesser. Issue strict orders to the staff not to keep the lights or systems switched on when no one is in the room. Provide only limited stationery items and charge them a nominal amount if they go over the limit. This will bring a discipline and also act as a reminder to everyone that there are only limited funds for stationery as well and so they must use it rationally.
Company sponsored parties can be limited to once in 6 months rather than on a monthly basis. These steps may sound silly but if you can explain the seriousness to your staff as explained earlier, then they will wholeheartedly accept these new decisions and see to it that the company runs strong even during the stormy times.
Root Step 8- Adopt ONLY necessary Cost Cutting measures:
Having decided on the business model and chosen appropriate distribution channels, the next step would be to list down the day to day necessary activities or purchases and their expenses, and then cross out the less necessary keeping the most necessary activities back on the paper. In other words, eliminate the entire extra and un necessary activities happening in the office which was costing you all this time.
If you have 3 telephones in the reception, remove the one which is being the least used so you don’t need to pay the extra monthly rentals. Replace the high voltage bulbs with latest energy saving bulbs. You not only reduce your bills but your contribution to Global Warming will be even lesser. Issue strict orders to the staff not to keep the lights or systems switched on when no one is in the room. Provide only limited stationery items and charge them a nominal amount if they go over the limit. This will bring a discipline and also act as a reminder to everyone that there are only limited funds for stationery as well and so they must use it rationally.
Company sponsored parties can be limited to once in 6 months rather than on a monthly basis. These steps may sound silly but if you can explain the seriousness to your staff as explained earlier, then they will wholeheartedly accept these new decisions and see to it that the company runs strong even during the stormy times.
What you can do as a Small Business Firm- get back to your Root Steps
This is part of a series of posts I wrote in October 2008 concerning the arrival of the Global Recession...
Root Step 1- Change your mindset- See the market situation as an opportunity from a fresher’s eye:
Leave your office for a moment and drive away to your favourite place. It could be a restaurant, a park, your bedroom, whatever. But just go away from your office and sit down in a place where you don’t have anyone to disturb you so you can think peacefully, and see the entire world system revolving around you, from a whole new perspective. Close your eyes and forget that you are the CEO or Manager or Director. Start imagining yourself as a fresh college graduate who wants to make his/her mark in the business world.
You’re fresh, the world is old and the events are new. What are you going to do now? How to start a new business? Which product would you like to invest in? Where are you going to find lenders? Which area do you have in mind? Do you think it would be wise to start an ice cream parlour just because you love ice cream? Or would you open a financial consultancy firm so you can sell your financial wisdom to the investors who are worried sick during this crisis time? Or perhaps you may want to start an agricultural farm because you know how the prices for vegetables are soaring each day and maybe you can be the person who sells it at subsidised rates thereby ensuring daily customers.
It’s your call. Which industry is booming now? Which is slumping? What do consumers want? Which product is required most at which area? You think about it and take the decision. There’s no point looking back and worrying now. But look back if you want to take something useful like the courage you had the first time when you stepped out to do something new, to take the venture into something which you never did and to take the risk when you knew that you were still inexperienced- a fresher. Start thinking like a fresher and you will be surprised at the fresh ideas that come into your mind.
Root Step 1- Change your mindset- See the market situation as an opportunity from a fresher’s eye:
Leave your office for a moment and drive away to your favourite place. It could be a restaurant, a park, your bedroom, whatever. But just go away from your office and sit down in a place where you don’t have anyone to disturb you so you can think peacefully, and see the entire world system revolving around you, from a whole new perspective. Close your eyes and forget that you are the CEO or Manager or Director. Start imagining yourself as a fresh college graduate who wants to make his/her mark in the business world.
You’re fresh, the world is old and the events are new. What are you going to do now? How to start a new business? Which product would you like to invest in? Where are you going to find lenders? Which area do you have in mind? Do you think it would be wise to start an ice cream parlour just because you love ice cream? Or would you open a financial consultancy firm so you can sell your financial wisdom to the investors who are worried sick during this crisis time? Or perhaps you may want to start an agricultural farm because you know how the prices for vegetables are soaring each day and maybe you can be the person who sells it at subsidised rates thereby ensuring daily customers.
It’s your call. Which industry is booming now? Which is slumping? What do consumers want? Which product is required most at which area? You think about it and take the decision. There’s no point looking back and worrying now. But look back if you want to take something useful like the courage you had the first time when you stepped out to do something new, to take the venture into something which you never did and to take the risk when you knew that you were still inexperienced- a fresher. Start thinking like a fresher and you will be surprised at the fresh ideas that come into your mind.
Think and Do Differently!
This is part of a series of posts I wrote in October 2008 concerning the arrival of the Global Recession...
Think and Do Differently!
However, these suggestions will only give you a half chance to survival as it completely meets only the physical and tangible needs. These are practical steps put into practice. So what is this other half? - It’s your mind! Surprised? Well, you have to be surprised because it will make you rethink and reassess the entire crisis situation. This is why a small business firm can still stand on their ground while the big guns fail. After all, you started off with nothing, didn’t you? So why not go back to your roots now? If you feel that you have to make some changes, then go ahead. But remember to follow some guidelines which will cause a shake but not loss of trust, from your creditors, manpower and stakeholders who make up your real assets.
ROOT STEPS:
Think and Do Differently!
However, these suggestions will only give you a half chance to survival as it completely meets only the physical and tangible needs. These are practical steps put into practice. So what is this other half? - It’s your mind! Surprised? Well, you have to be surprised because it will make you rethink and reassess the entire crisis situation. This is why a small business firm can still stand on their ground while the big guns fail. After all, you started off with nothing, didn’t you? So why not go back to your roots now? If you feel that you have to make some changes, then go ahead. But remember to follow some guidelines which will cause a shake but not loss of trust, from your creditors, manpower and stakeholders who make up your real assets.
ROOT STEPS:
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