Two drivers of change - fear or opportunity. Which is it for you?

We all know the economic climate has fallen from a strong position. That is the truth! More businesses are closing down, more people are losing their jobs, and debts are mounting.

Is it better to call a spade a spade – “things are really bad” or to say “the good times are on their way back”? Perhaps you may even be philosophical -破财免灾 - pò cái miǎn zāi - you avoid some greater misfortune by losing some money.

There is certainly more than one way of handling the truth. The way you focus on it and how you communicate it to others leaves you with quite a few options. Your choice here will influence how you set goals and manage change. And if you implement early, you may prove quicker and smarter than your competitors.
Read on…___________

How would you describe the current business conditions? Might you say…“We are not skilled for this, the system is broken, our competitors are stronger, we are nearly broke. Good luck!”

Or…

“2009 will be difficult, but keep thinking, get out there and sell / cut costs / innovate, and we can still do well this year”.

The capitalist system readily acknowledges the boom and bust cycle. And most policy around it is designed to reduce the extremes, make events as predictable as possible. Through over-confidence (risky and greedy financial lending), the business system has lost control, at least for the moment. When will control return and how long will it take? These are the challenges facing us all.

While no one can deny the truth, we are being encouraged to defy the truth. Keep spending and do not let the downward spiral continue. Supply confidence even if there is justification for fear.
For change management, crises can be blessings in disguise. They force us to review. Success can blind us to opportunity, and numb us from innovation. Now is the time to plan some big changes. Logic says, minimise everything. Innovation says, go big and seize the opportunity.

To summarise this into a few take-aways:
1. Look reality in the face – briefly: How much do you need to know, looking at reports and data? You must do it, but this is only one type of information source, so research elsewhere as well. Your new ideas, solutions and energy will not jump out of a computer screen. Learn what you need to, and get out of the office and lead.

2. Keep setting goals: Working harder is one option, “go faster! go faster!” - and people sometimes do this to avoid the truth. Goals show that you are thinking, help you engage others, are a sign of confidence, and healthy for dispelling the gloom. Make them for both the short term (quick wins will encourage you and your team) and for as long term as your forecasting allows.

3. Manage change – and emotions: Making the business decisions is the first step, then comes the harder part – the implementation – often in the hands of others. If you change the business (technology, products, organisation, structure, etc.), do not assume you have changed the people.

You may be familiar with the mental and emotional path people take when confronting an unpleasant situation – denial (“this won’t affect me too much”), resistance (“I don’t like this”), acceptance (“what do I have to do”) and then commitment (“let’s go”).

Do not assume everyone understands your decisions or is in the same emotional stage. Actively assess how your teams are thinking and feeling. One person could be in denial, and the next person totally committed. Manage them in different ways. People will do as they are told, but if you want something more than grudging or fearful compliance, like creativity, then managing emotions is essential.

4. Change some habits - re-allocate your time: Disable your automatic pilot. You may not be able to do things the same way as last year. How did you spend your time last year, and doing what things? Where are you needed this year? Give time to people, building confidence and hope as you go.

Losing money is not the worst thing that can happen to you. Failing to learn from this situation is much worse. And failure to take hold of opportunity is a tragedy.

The Skillbiz Offer:
Throughout March 2009, Skillbiz is offering the first two clients to respond, a free 1 to 2 hour review and feedback on any people-related aspect of their business. Some suggestions include:
• Review your (or a subordinate’s) preparation and handling of a major negotiation
• Conduct a change management session with your team, to help you communicate, and help them embrace your decisions
• Plan your leadership actions from here – maybe receive feedback through a psychological assessment, discuss how to handle a difficult employee/situation.

Click here to briefly outline what you would like.