Let's face it: The economy is falling apart. Stock prices are tanking, the housing market is at rock bottom--and still going down--and Wall Street staffers look like they're
ready to jump at any moment.
Businesses both small and large are feeling the heat, with cost cutting, layoffs and corporate "restructurings" (read: layoffs) ruling the day. Of course, this has obvious
implications for communicators, with clients and agencies alike scaling back and/or trimming the fat, which inevitably challenges managers to maintain some sense of confidence and
morale among employees.
Yes, things are dismal (dare we say apocalyptic?), but it's times like these that senior managers must pull themselves together and lead their organization through tough times.
But, unless your organization offers free Xanax handouts in the lunchroom, soldiering on is easier said than done. Here are a few pointers to help you weather the storm:
*Think growth. It may be human instinct to downsize when times are tough, but that approach will only elongate your period of suffering. Rather, take advantage of the fact that
everyone is up against the same recession challenge by getting ahead of the game with aggressive marketing.
"The smartest organizations are the ones that spend more when times are tight," says Steve Cody, managing partner of Peppercom. "Because of the belt-tightening that's going on,
there won't be too many PR firms doing a lot of marketing, so it really is the smartest time." (See sidebar for ideas on marketing your organization during a recession.)
*Don't turn a blind eye. It may be tempting to ignore the constant coverage of economic woes, but communications professionals need to be proactive in learning what it all
means for their business.
"Prepare a worst-cast, 12-month cash-flow scenario. Assume a 10% to 20% drop in revenues and identify what changes you would make and when," Gregg Landers, director of growth
management at CBIZ Accounting Tax & Advisory Services, told BusinessWeek.This is a worst-case scenario, though, so don't immediately act on it; it's the equivalent of coming
up with a crisis plan "just in case." Still, it's worth knowing the numbers and having plans b, c and d to fall back on if necessary.
*Focusing on short-term gains will lead to long-term heartache. Full-blown pessimism won't fix your problems. Recessions don't play favorites in terms of the industries they
ravage, so a slight (or not-so-slight) dip in stock price (or any other measure of success), while not desirable, is still normal. Instead of taking a machete to your budget, ask
yourself what the real repercussions of these blips (missed earnings forecasts, etc.) will be in the bigger picture. Often you will find that going about business as usual will
give you added value in the long run, as opposed to cutting costs to see small savings in the here-and-now.
*Be proactive online. Web platforms are a great place to "retreat" if you don't have the financial resources to pour into more traditional outlets. Test creative ideas,
products or services online among targeted audiences, either through social media platforms or e-mail.
Video platforms such as YouTube are also cost-effective outlets--not to mention great exercises in becoming fluent in "digital." According to Andy Berndt, managing director of
Google's Creative Lab, "The act of uploading a video to YouTube is more valuable than a four-day offsite marketing forum."
*Send a positive message internally. Beyond marketing your organization to external audiences, you should spend money on making your employees feel valued, not expendable. Yes,
that means spending money, but retaining talent will save you tenfold down the line.
"Whether it's good times or bad, you really want to focus in on the best employees and make sure they are staying put," Cody says. "Maintaining a business-as-usual posture
sends a very important, nonverbal messages to the staff."
Cody illustrates this with the following example: During the last recession, Peppercom eliminated the free sodas and snacks in its break room to cut costs. It seemed like a no-
harm-no-foul decision, but it immediately caused employees' anxiety to spike. This time around, management took the opposite approach: It installed new, top-of-the-line coffee
machines to reassure employees that it's all quiet on the Western front.
*Be above-board with employees. There are things managers should do beyond keeping the break room stocked with freebies--namely, they should constantly reinforce their
strategies for enduring the downturn so employees don't feel like they're in the dark. Have monthly staff meetings to update your team, host weekly focus groups to hear their
ideas for improving business and meet with employees one-on-one to keep lines of communication open.
*Put valued clients on a pedestal. Recessions may mean trimming the fat for many organizations, so PR professionals have to go above and beyond to prove their value. Likewise,
clients should prove their own worth; if there is one in particular that is a thorn in your side, it's a good time to part ways. That leaves more time for valued clients and
customers.
"Take a look at your biggest clients and ask, 'What if they were to put this account up for review tomorrow? What would we do differently?'" Cody says. "Take a hard look at
your accounts and step up all your efforts."
Consider volunteering to spend a day shadowing your client so you can observe the impact the recession is having on his/her business. This will offer insight into what you can
do to make their business better and, in turn, make yourself indispensable.
"It's about finding out what the value-add is--anything and everything you can do to better understand their business," Cody says. "Whatever is the nirvana that justifies their
continued investment in your services--that's what you want to hone."
*Get out in front of your community. The current business climate isn't only shaking investor and employee confidence; it's rattling the psyches of consumers in your community.
By getting out in front of them with positive messages--even if it's as simple as donating to a local charity or sponsoring a community event--you can allay their fears and boost
their confidence in your organization.
Whatever the impact of the recession on your business, one thing is clear: Battening down the hatches sends the wrong message to all stakeholders. Cody boils it down to
this:
"'Steady as she goes' is not a successful formula in a downturn."
That advice, plus a good, strong drink at the end of the day, will do wonders. PRN
CONTACT:
Steve Cody, [email protected]
It's the Economy, Stupid
Need some ideas for keeping your organization top-of-mind among stakeholders when the economy is anything but accommodating? Consider these options:
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Home in on thought leadership: A recession is the perfect time to focus on the thought leadership of your organization (especially if things are slow on the client
front). Pick three topics to which you can speak authoritatively, and draft columns and articles. Use these to pitch to journals, newsletters, bloggers--anything that will get
your name out there and show that just because the economy is taking a nosedive doesn't mean you are, too.
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Apply for industry awards: Almost every communications-related publication and organization has its own roster of awards--apply to all of them. It's a great way to
establish credibility, and winning a few can do wonders for boosting the morale of employees and clients.
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Develop new products and services: When no news is good news in the business world, create some positive buzz by rolling out a new product or service. It shows that you
aren't marking time, and it just might be the exact thing a client needed to decide to stay onboard.