Business Resources
How the Top 100 decided not to waste 2009
By Pamela D. A. Reeve, Chair, The Commonwealth Institute
Late last year we surveyed the Top 100 Women-Led Businesses in
Focus on Positive Steps
In reading the nearly seventy responses, I was struck by the resilience of these business leaders. When asked how they responded to the downturn (ie: what changes, realignments they implemented), the focus was on positive steps:
-Nearly 40% created something new in 2009—new products, new services, new divisions, new organization design. Innovation and investment continued.
-Many reported a sharper focus on quality, and the notions of flexibility, customization, adaptability was a common theme
Overall, while fighting the daily battles, cutting costs, consolidating facilities and laying off employees (some of them long-tenured)—these women were at the same time creating the foundation for the future.
Focus on the Customer
A strong second theme we recognized is the focus on the customer. Comments that support this include “we’ve taken the approach of ‘no job too small’ in the hope that [customers] will remember us when budgets expand.” The flexibility mentioned above has also been applied creatively to pricing and packaging to secure or improve customer value.
Top 100 and Top 50 companies also stepped up their communication with customers in 2009. Top management actively engaged in face-to-face meetings. Improved reporting systems for clients were developed, relating the companies’ work to the client’s needs. There were more training and education seminars for customers and education of employees about improving client communications. Use of the web, including social media, increased with a goal of staying closer to the customer.
Focus on employee engagement
The third theme is employee engagement. Economic necessity forced critical evaluation of staff, and respondents report the value of that and keeping the best people. When describing the “winning formula” for motivating employees, the word communication came up hundreds of times. Candid discussions about the state of the business—good news and bad news; brainstorming for problem identification and solution; more empowerment; clear goals and accountability—for the CEO and management as well as employees, were all cited. One CEO said, “I don’t know if I have a winning formula. I do know that I have had to jump out of my comfort zone a great deal during the past year and a half. I have had very candid talks with customers, workers, vendors and subcontractors. I think my employees know my philosophy is “honesty is the best policy. As long as I stay positive they stay positive….”.
Focus on finding a silver lining
The fourth theme we explored is “Where’s the silver lining?” Many positive themes can be drawn from the comments. Most often, CEOs mentioned how they are running leaner—meaning more cost efficiently, yes, but also faster and with more focus. Virtually everything about the business was reassessed—strategy, structure, customer interaction, business model and investments. They also recognize there is a plethora of talent available to them in the marketplace, and are going to take advantage of that to help maintain customer focus in 2010. It was clear that the Top 100 and Top 50 realize that tough times could come again, so CEOs are planning to have more in the rainy day account (which may result in that jobless recovery everyone is talking about).
Responses to “What is one positive thing the economic downturn has done for your business?” revealed that events of the last year have not squashed our sense of humor. One CEO said “are you kidding???” Another said they found it helpful to remember the saying “never waste a good crisis.” Another said cutting staff “quelled superfluous employee chatter”—but added “people have really brought their best teamwork to the office.” Yet another said “just surviving in this economy has boosted our clients’ confidence.”
Looking Ahead
Looking at 2010 goals, most CEOs again cast a positive light:
- “to be a stronger company”
- “continue to lead in our space”
- “expand our markets”
- “promote my two new divisions and to have the best year I have ever had”
- “develop a better work/life balance”
- “getting back to a 20% profit margin”
- “we anticipate a very exciting and challenging year in 2010”
Growth and profitability targets dominated these responses. There was very little sense of the hunker down mentality.
Advice for aspiring CEOs and business owners
Finally, we asked “What advice would you give an aspiring CEO or business owner?” There were many gems of wisdom in the responses:
-“You need to realize there are good AND bad times. Sometimes you lose sight of that. And when times are bad, it looks like there is no end in sight. But if you and your team pull together, you can weather the downturns and still maintain your position in the business world.”
-“When preparing the budget, prepare a second budget that reflect the changes you would make if you lost 20% of your current revenue. Do the hard thinking in advance. ..It is much more easy to implement quickly when you already have a plan in place.”
-“Lay out your strategy, communicate it clearly and do not compromise for short term gains.”
-“Keep in mind everyone can be replaced, including you. Don’t be afraid to get the wrong people off the bus, and never have an overinflated value of your own self-worth.”
-“Don’t quit—never give up—your dream is worth pursuing no matter how hard the times. Have faith in yourself.”
I don’t know about you, but I was inspired by these women who are making business happen every day, and I am proud to be associated with them.
