After experiencing another challenging week with seemingly no end in sight, I asked myself, "What can we learn from all this?" As an executive recruiter and adviser to leaders, I'm expected to have a perspective gained from exposure to so many people asking themselves this very same question. Aside from the big picture related to the financial system and the political environment, everyone is being impacted by this recession in meaningful ways and there is much to be learned from how leaders are reacting to this crisis.
First of all, I'm struck by how consistent the issues are from one company and one leader to another. In previous recessions and downturns, the impact was felt much more significantly in one industry versus another and some seemed untouched and strangely detached from the challenges others were facing. Not this time - to a person everyone is directly impacted by this reset. Secondly, the reaction is the same - tighten the belt and spend money on only those things that are absolutely necessary. Regardless of how strong one company may appear on a relative basis, leaders feel a responsibility to reign in unnecessary spending. As you would expect, this means that almost everything is "on hold" waiting for some time in the future.
So, what can we learn? Interestingly, it is during times like these when we learn the most. In these inflection points where change is occuring very rapidly we see businesses as they are. As unnecessary spending is eliminated, we see what is absolutely necessary. We see those products and services that each business can't live without. As going concerns, these are the basic elements that will never go away, and the related business opportunities bring clarity to the key value that each of us bring to the party. In my business for example, the three things that never go away are: 1) executive coaching; 2) C-level searches for leaders who absolutely must be replaced; and 3) due diligence on behalf of a company attempting to hire a leader on their own.
Think about your own experience and the demands on your business. While you are likely involved in a multitude of activities, the key indicators of how you can best add value as a leader or a business are best seen in times like these. What is your value proposition and how can you improve your career or business by focusing on the necessary things that will never go away?
