Got off the phone yesterday with a friend who has been let go from a firm that seemed to think cutting expenses is a strategy for dealing with the new normal.
Business has been bad for this company, it’s in the construction segment. Been bad a long time. Going to be a bad segment for some time to come. At my friend’s request I met with the senior management about a month ago, in an attempt to get them to create some changes that might change their results.
They were too afraid of change so the discussion went nowhere. Their ‘Strategy’ was to cut head count and cut salaries.
That’s not a strategy, it’s a defensive reaction. That probably should have been addressed long ago. But by waiting so long it’s going to drive how they do business and will probably make things even worse. (I believe Jim Collins would say they are in stage 3, Denial of Risk and Peril, or Stage 4, Grasping for Salvation).
They are going to keep doing things the same way, with less resources than before.
Make sure you aren’t doing the same thing. Figure out how to do things differently and then make use of your resources accordingly. Just don’t cut to cut. Never really works.
What are you going to be doing differently to deal with the New Normal