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Managing in tough times

By Michael Stern 27th February 2008

Let's mark this down as one of the most unusual economic slowdowns in Canadian history

In central Canada, with the loonie at parity with the U.S. dollar, growth is stalled. While Canadian manufacturing is under siege as never before, the resource boom continues in the West. Still, housing and construction are holding up better than in the U.S., where edgy realtors are probably already speed-dialing Saskatchewan grain farmers to peddle estate homes in Vegas.

So how do managers and executives respond to this unusual slowdown? Despite the uncertainty, they still have to produce results. And they have to calm jittery staff - even though the statistics say many of them would have no problem getting another job. In fact, knowledgeable executives and information workers still face a sellers' market for their skills - which makes a leader's job even more demanding.

Here's how you balance these conflicting challenges:

• Recognize that things have changed. With cash short due to the subprime-mortgage meltdown and this year's credit crunch, you have to produce results with fewer resources than you had last year. Get used to it.



• Mobilize your strongest resource: people. Markets may be sluggish and marketing dollars fewer, but motivated people guided by a creative plan can more than fill the gap.



• Give the leadership speech. Yes, there are challenges ahead. As with Henry V's noble "band of brothers," your organization may be outnumbered and outgunned. But if they have clear objectives and a bold strategy, your team has a chance to achieve greatness of Shakespearian proportion.



• Follow up with ongoing, truthful communication. Let people know how things look: what's not working, where the trouble spots are, what you're doing about them. Even bad news is better than no news. If you don't give people information, they'll fill in the blanks with scenarios far worse than the truth.

Amid this uncertainty, employees still need to keep their careers on track. They want to be compensated properly, and they're looking for opportunities to advance. In past recessions, when there were few prospects elsewhere, employers neglected those needs. Today, your best people are in demand by your competitors, and the boomtowns of the West would be glad to lure them away.

So the second half of your leadership mission —developing your people— remains a priority. The good news is, you are halfway home. By communicating regularly, you are showing respect for your employees; treating them as partners, not mushrooms.

But you still have to attend to their development needs. This is a perfect time for good people to make their mark.

• Find creative tasks for those who want to shine. Let them know that expanding relationships with your best clients and winning new customers from the competition are achievements that count double in tough times.


• Don't shy away from giving people stretch assignments. Just ensure they have the support to reach their goals, and have results-based rewards that will make their efforts worthwhile.


• Go against the flow. When markets shrink, the training budget is often the first to get cut. Give your people the learning, tools and incentives they need to work more productively.


• Delegate more. People like to be stretched. They want to be groomed for better things. Remember: jobs that may be routine (or even a chore) to you constitute development for someone else. And if you're going to move up the ladder, you need proven talent ready to take your place.


• Recognize that developing and training employees consumes more of your time. Simply issuing orders is much faster than allowing your people to generate solutions. But if you are serious about developing people, you must allow more time for discussion, mentoring and listening. Some meetings will take twice as long; but it's a small price to pay to retain good people and empower them to surpass expectations.

However the simplest, yet often the hardest thing to remember about slowdowns is they don't last forever. During the time they are here, though, they offer a unique chance to sharpen the saw and boost your competitive position.