If you’re reading this, you don’t need to be told how crazy things are now. Commodity prices are rising and most people are feeling the effects of this economic downturn.
We are not quite in recession, although most analysts predict that this could happen in 2023.
At American Management Services, we advise owners on how to customize a plan to protect the integrity of their business during any crisis.
Our economy is trying to get out of the covid-19 pandemic. Now all business owners are facing inflation, rising fuel and food costs, rising interest rates, labor problems and supply chain challenges.
We have worked with owners, guiding them through every economic downturn, downturn and recession for nearly forty years. This survival plan is based on our experience and guidance to these owners.
With our proven experience, we are confident that following this guide will work for you as well.
In this two-part series, we will go through the three key areas that are essential to your business. We will also give you strategies that you can implement from today.
You need to focus on protection:
- Your people
- The integrity of your operations
- Your liquidity
In this article, we will focus on protecting your people.
These three areas need to be worked on together, and each depends on the success of the others in order to work. We call them “closed.”
Protect your people
Develop your own leadership regime:
Maintain common sense
Be realistic with your current situation, then design, develop and implement practical and achievable plans to overcome the challenges. You need to be a functional and consistent leader in practice, not just on paper.
Develop Manpower Look Ahead plans to ensure you have the right amount of manpower to work efficiently for the dollars spent on labor.
Great name, but it’s a schedule you create – usually two weeks in advance – where you can see activities and goals for specific projects.
This goes without saying, but most owners neglect to communicate their plans to their employees.
Once you’ve developed a plan (if you need help, see this article), communicate with your staff, especially if you have people working from home.
I work from home
Use technology and productivity metrics to ensure that your stay-at-home staff maximizes their productivity. I recommend that you apply daily and weekly reporting requirements to hold your employees accountable for the goals you have set.
Recruitment, training and retention
When inflationary winds blow, the misfortune of one company is an opportunity for another. You may have the golden opportunity to find and hire new talent.
In addition, you have an exceptional opportunity to train and develop new and existing employees to occupy roles and positions in your organization. We urge you to take advantage of this time!
Integrate recruitment, training and retention into your daily routine.
Develop reward-based rewards
We believe in pay for performance, even in the best of times, and we certainly believe in the same in the current economic environment.
Productivity is vital to survival in relation to your labor costs: Develop an incentive-based compensation plan to ensure maximum productivity. We talk about this in more detail here.
Your staff will be highly motivated to generate results, no matter how much revenue may be affected.
You don’t want to be left in the ditch. Watch next week to learn how to protect the integrity and liquidity of your business. Click the “Follow” button here on Forbes to make sure you don’t miss our next steps.