By BLR Founder and CEO Bob Brady
Faced with the seemingly endless tide of gloomy economic news, how can you stay in control? BLR CEO and founder Bob Brady says the answer is simple—but not easy.
Waiting for 2009 to Be Over
The presidential election may be over, and 2008 may be ending, but the recession that we’ve been feeling for some months is probably deepening. Not a day goes by without news reports of hiring freezes, layoffs, wage freezes, and reorganizations. They have replaced the challenges of the go-go years when it was impossible to hire and retain good staff. Our recent poll confirmed that pay increase budgets are down from earlier predictions. Conditions are not likely to be any better in the next year, so we’d better get used to it. It’s no fun and we don’t like it, but it is reality.
This threatens to be one of the deepest recessions of my (nearly 40-year) career, but we’re betting that this recession will not be as bad for BLR as the 2000-2001 cycle, when we faced the double challenge of structural changes in our industry (as publishing moved to the world wide web) and the “normal” downturn in the economic cycle. During that period, for the first time in the history of the company, we didn’t grow (we shrank by about 30 percent), we lost money, and we had to lay off employees. It was stressful, painful, and scary.
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The other recessions we’ve experienced were unpleasant, but different. We had to cut discretionary expenses and throttle back on some ambitious plans, but we always managed to keep moving forward.
But in all cases, even in 2001, we stayed focused and kept working on the things that mattered the most in the long term—listening to our customers and creating products that help them do their jobs. When good times returned, we were well positioned and ready to move forward. In the latest instance, we worked to develop our content websites, HR.BLR.com and its safety, environment, and compensation brethren. Work done during that period helped us prosper during the years that followed.
Lessons learned
So what do I draw from my experience? There are dozens of lessons, but here is my short list, for what it is worth.
- Be strategic (or “Keep your cool even if everyone else is losing theirs”). What matters most to your organization? For us, it is our products. To get new sales and renewals, we have to deliver useful, high quality services that help our customers save time and money. Your organization is probably different. Your job is to figure out your “secret sauce,” and make sure that that is the last place where cuts are made.
- Know what you can and can’t affect (or, “Don’t tilt at windmills”). There is no way that BLR, alone, can materially impact the overall economic cycle or the march of technology. On the other hand, we can affect how we manage our expenses and how we learn about and react to changes. Worrying about the future is inevitable, but don’t let it immobilize you.
- Move quickly and decisively (or “Fish; don’t just cut bait”). Businesses have to make money (even nonprofits need operating surpluses to maintain operations). If you look at your budgets and you’re at a deficit, you’ve got two choices: Act quickly to fix it so you can be ready and able to go on, or act slowly and prolong the pain. The latter may seem more palatable as you first survey the scene, but it rarely works.
- Keep your personal life under control (or, “No one ever died thinking they hadn’t spent enough time worrying”). This is very stressful stuff. You have a lot to do; you have to do it quickly; and you often have to hurt good people whom you value. But that’s the easy part. The hard part is dealing with the feeling that you aren’t in control. Events are driving the train. You are just an unhappy, unwilling passenger.
The feeling that you are not in control is what causes the stress. (You may think it’s all the work you’ve got, but consider: You’d be just as stressed if the world was collapsing and you had nothing to do.)
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OK, you can’t control events, so how can you stay in control?
It’s simple, but not easy. Control what you can control, such as your personal life and habits. Drinking. Eating. Sleeping. Your work habits. Exercise. Recreation. If your organization has an EAP, this may be the time to avail yourself of its services.
Our Job
With the unpleasant realities of layoffs and freezes of all sorts, HR is where the rubber hits the road. We’re there to help managers and supervisors make decisions they don’t want to make; and we have to help employees deal with realities they don’t want to face. Keep my four principles in mind, and don’t forget your own personal well being.
That’s my e-pinion. I’d love to hear yours. Rbrady@blr.com.