9/20/24
5 C’s for Surviving a Downturn in Business – Verne Harnish
- Communicate Daily – Airbnb went into a daily huddle 7 days a week when they lost $1 billion in bookings during the pandemic. The key is looking at data and making decisions DAILY.
- Customer Contact – double down on connecting with clients and finding out how to help them – they might be struggling as well. “Hidden Champion” firms have twice the number of employees directly supporting customers than other firms. Give to receive.
- Clean Up and Catch Up – a downturn is a good time to clean up sloppy processes, eliminate needless activities, and play catch up with systems. Simplify, simplify, simplify.
- Cash, Cash, Cash – review ALL recurring expenses that may have creeped into costs; ask all employees to find ways to reduce their expenditures; seek lower cost solutions; and tighten up billing and collections.
- Calm and Considerate – above all, take a few deep breathes, only risk money (not your health), and remain calm and considerate. “Leaders absorb fear and exude hope” – it’s your job.
September 20, 2024
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