The natural inclination of business leaders during an economic downturn is to cut people, programs and reorganize. Examples are in the newspapers and web sites daily: Alcatel-Lucent, AOL, Sprint, the airlines, Dell, Discovery Communications and many other companies as well as numerous medium and small businesses that never hit the media. There are alternatives to cutting and pulling back during a recession.

Strategy

Review its business strategy. Make sense? Can be run? Is it too "pie in the sky." And how to address their markets and their core business strengths? A clear strategic plan is the foundation for success in good times – and bad.

Implementation

The best strategic and business plans are useless without enforcement. Do you have measurements or parameters set to measure performance against financial and operational targets (objectives)? Given on target and that are not? Why? Who is responsible? What is being done to address the weaknesses of the performance?

Customers

It seems that during a downturn in the economy of companies of all sizes are rushing to put customers – those who pay the bills – last. No! This is the time to re-evaluate what your company is doing to delight its customers. No matter the business, product or service – your customers have options. Take steps to make the business of their First Choice. To do this, ask how you're doing and what you can do to improve it.

Cost and Expenses

Companies are racing to cutting costs and people when there is weakness in the economy. This is so easy that a child with a lemonade stand can. But often it is the right answer. First look at where resources are deployed. Most resources should be involved in driving revenue and delighting its customers. Keep overheads to a minimum. If this means redistributing and retraining, should be done. Second, before there layoffs cut contractors and consultants first and do the work in house. Also, salaries and bonuses cut in the top of the organization first. The biggest cuts should be among the greatest managers do not – the customer-facing employees and sales representatives. Finally, ask for input, people on the ground and in the back office usually know where the greatest opportunities exist for true efficiency. Ask them, act on its recommendations and recognize them for their ideas.

Speed

It's amazing to me to read what the U.S. made to mobilize resources in a very short time during World War II on the home front. The factories were making cars and refrigerators for tanks and aircraft in large quantities in amazingly short periods of time. This was before computers as we know them today. So why everything (except, perhaps, the internet) take so long today? The time frames required to develop new products and services are often years rather than months. Watch the weather as required in your business today and cut it by 25% to 50%, maintaining the same level of quality if not better. It can be done. And it's a competitive advantage.

Innovation

It is the natural tendency of businesses of all sizes to take fewer risks in times of scarcity. This includes new and innovative ideas for products, services, marketing and do business. The best time for risk taking and innovation is when the economy is challenging. Although most companies cut costs, which assume risks and encouraging innovation stand out among its competitors. And innovation is not limited to research and development or marketing, it should encompass all functions and aspects of any business.

Recession, recession economy weakened. All of these terms through the unit chills Most business people at every level. In fact, while money is tighter and reduce market opportunities, there are winners and losers in the economy both good and not so good. In addressing the following areas: strategy, execution, customers, costs and expenses, speed and innovation, any company – regardless of size, market or industry – can be a winner during this recession.

George F. Franks, III is the President of Franks Consulting Group, a Bethesda, Maryland management consulting and leadership coaching practice. George has over twenty-five years of experience working with companies of all sizes plus not-for-profit organizations and individual leaders. He is a member of the Institute of Management Consultants (USA) and many other professional and non-profit organizations. Franks Consulting Group is on the web at: http://franksconsultinggroup.com

George can be contacted at: franksconsultinggroup@gmail.com

Franks Consulting Group also publishes a free monthly e-zine on career, leadership and work place topics at: http://careerandleadership.com

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