By ASHOK NALAMALAPU  – September 26, 2009

The current economy is impacting organizations in Maine and many parts of the world. People are losing jobs and businesses are closing. I wanted to learn what organizations could do in this economy and share that information with others.

I spoke with the CEO of Mercy Hospital, Eileen Skinner, and the CEO of Barber Foods, Bruce Wagner. I also attended a seminar on this topic. Here are few things to consider:

What can leaders do? Have new sets of eyes looking at the current business situation. Give discounts to customers who pay bills early and improve cash flow. Get a revolving credit line. Be more energy efficient and cut expenses. Get closer to the customer and go the extra mile to exceed their expectations.

Take a close look at the current status of your business and external environment. Leaders need to show confidence and make proper decisions with a calm mind and optimism. Remind the team that 91 percent of the people are employed and that there is business out there to explore.

Engage your organization fully, and take good care of employees. Focus on employees’ strengths rather than attempting to improve their weaknesses.

Skinner adds these recommendations: Assess your business and find your core strengths. Is your service or business model even relevant in today’s world? Focus on your strengths, not on improving your weaknesses. Stay focused on your priorities. Look for business partners and create synergy.

Keep the right resources directed toward the right objectives and look closely at your operating plan. What are the things you really need to do?

Shut down some things, look at overhead, unbundle anything you don’t need, have very stringent hiring guidelines in place. Be honest about expenses and decide what to cut and what to hold on to. As a last resort, ask employees to take a pay cut or unpaid vacations.

Send out newsletters regularly to all staff and keep them informed. Have open forums and let them ask any questions. Ask people what they are seeing on the front line. Try to create the notion that we are all in the same boat.

Wagner’s points include these: We can not control the external environment – and we have to expect the unexpected. As a leader it’s important to understand there are going to be companies that thrive during this time and there are going to be companies that fail. We have to become tougher and faster. You can’t assume things that were there for us yesterday will be there tomorrow.

Leaders need to find a way to be positive.  They should not be expressing fear. People are looking for leaders that say, “OK, this is tough but we can manage.” 

Employees need to know what the company’s goals and values are and what their role is in the company. Don’t tolerate underperformance. If performance hasn’t improved even after working with problem employees, move them into a position where they can be effective, or ask them to leave the company.

Make tough decisions, but do it with compassion. Management needs to be committed to making people successful, but if the individual hasn’t risen to the task, you do have to make those cuts.

Keep an eye on your finances. Look at the forecast, know how to slow production and save a big inventory bill.

If the business is in trouble, immediately improve cash. Once you are stable, stay focused on what delivers value and try to help your customers see that value.

What can employees do?

Skinner says they can can offer ideas to their organization. They can offer to take on a job that they weren’t doing before. The most flexible people stay the longest in any organization.

Being positive, proactive and productive would be more helpful than trying to preserve things the way they are and not being willing to learn new things.

Employees should think about a contingency plan in case of job loss or the business closing.

What would you do if you lost your job? Be thoughtful about how long can you survive on what you have. Always make sure you have your resum ready.

Wagner wants them to continue to invest in themselves. Whatever you invest in yourself you take with you when you leave the company. Be able to contribute more. Develop computer, writing and communication skills. 

In this challenging economy, we can’t do business as usual. We need to change our mindset and reinvent ourselves if needed.

By working harder and smarter and by being positive, we can help our economy grow and keep our organizations running well.

Thank them for the opportunity interview:  At the end of each discussion, whether it is a phone interview or a face to face meeting, thank the interviewer for the opportunity to be considered for this position.

Ask for the job:  Don’t assume anything.  When you are about to go your seperate ways, tell your potential new employer that you are very interested in the position and you are confident in your ability to perform the duties of the job.

Follow up with a thank you note:  When it comes down to deciding on two candidates of equal ability, it may be something as simple as a thank you note that gets you the offer.

Send an acceptance letter:  Once an offer is made, don’t let your guard down.  Send a letter/email to your new employer thanking them for the opprtunity that has just been given to you.  Let them know the day and time you are planning to begin employment and how to contact you should anything change.

In this competetive job market, it is often the little things that seperate you from pack and enable you to land that job.

Any suggestions or comments to improve this forum are welcome here. Thank you!