leadership incorporated blog

June 4, 2009

Devastating Mistakes Businesses Make in This Economy: #4

Filed under: Uncategorized — inspiredtosucceed @ 7:30 am
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Confusing expenses and investments. The path to success in this economy is not paved with savings. Yet, companies are freezing budgets unilaterally, not making the necessary distinction between consumable expenditures, which deliver short-term benefits, and investments with the long-term power to create future business. Businesses that come out intact on the other side of this recession will have figured out how to adapt and build for their future.

Solution: Evaluate expenditures based on potential ROI, rather than on cost alone.  Seek out products and services, which will increase the value the organization provides, as well as its visibility.

June 1, 2009

Devastating mistakes businesses make in today’s economy: #1

Cutting with a blowtorch instead of a laser. In the epidemic rush to cut staff, it’s shortsighted to let essential talent go. As a result, over 50% of workforce adjustments do not achieve their intended objectives. Too often, the company finds itself without the resources to recover and build for the future.

Solution: Think before you cut. Don’t automatically assume that a layoff is the best way to reduce operating costs. And don’t offer incentives for leaving. The best people will go, knowing they can find other work. The weakest will remain.

Sharon Rich is the founder of Leadership Incorporated and Layoff BounceBack. Her companies offer coaching and training programs designed to empower organizations and individuals in transition to create successful futures.

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