Leadership Lessons In Difficult Economic Climate
May 27, 2009 | Sovestor
We are generally in agreement with his insights; however, we believe the following leadership actions are even more critical during economic downturn:
- Empower employees at all layers/levels to keep innovating not only on products and services but also on business processes and strategies
- Reduce management layers and corporate bureaucracy to minimum, trim unnecessary departments/areas, increase efficiency and effectiveness of business processes, and allocate/rotate employees to jobs that fit their training, experience and expertise.
- Revamp performance-based compensation package to be more shareholders-friendly by tying majority of the employees bonuses with return on capital of his areas of responsibilities.
- Reduce exposure or exit unprofitable product/service lines or divisions and refocus resources on developing and marketing high quality products/services that matter most to the company's long-term profitability and market shares.
- Increase quality, efficiency, and effectiveness of marketing efforts and customer service to ensure existing customers are happy and to gain market share from competitors.
- Top management team should be servant-leaders by being more proactive in understanding and satisfying needs of company's employees, customers, and shareholders without sacrificing company's long-term vision, short-term and long-term goals, market share leadership, and profitability.
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