In a down economy, do we isolate or build community?
Posted: February 13, 2009 Filed under: Thriving in a Down Economy, World View | Tags: Community, Economy, Global, World Leave a commentThis is the central question for all of us in the next few months.
We face this choice as communities and nations.
Each year the World Economic Forum brings together business, political and other leaders for a late January conference in Davos, Switzerland. The 2009 forum’s website has webcasts of the various sessions which can be downloaded. More about the forum in another post in which I’ll share some of the sessions I found particularly interesting.
One of the themes which emerged from the Forum this year is concern that in the face of the global downturn there will be a rise of economic nationalism and protectionism. The evidence that free trade grows the global economy is now pretty clear. While there may be winners and losers for a period of time, the expansion of the global economy provides opportunities for all parts of the world to improve the standard of living of their people. This has been called the virtuous cycle. Expansion in ever widening circles as we open ourselves to the greater interdependence of a global economy.
It follows then, that when free trade is restricted, global growth slows making it harder and harder for any part of the world to enjoy a better life. This vicious cycle spirals inward in ever decreasing circles of less and less for everyone.
A friend in a hard time . . . is a friend for a long time
Posted: February 10, 2009 Filed under: Thriving in a Down Economy Leave a commentTimes of hardship are when we form some of our deepest, longest lasting relationships. When we are feeling vulnerable we are open in different ways than when we’re secure and our defenses are up. In change management terms, hard times can “unfreeze” us – open us to change.
And with change comes opportunity for those who see it. Now is exactly the time to build deeper relationships with your current customers. Go to them – before they come to you. Ask them what you can do to help them with the pressures they are feeling in this downturn. Just asking may well set you apart from many of your competitors.
Help your customers use less of your product
Posted: February 12, 2008 Filed under: Thriving in a Down Economy Leave a commentSounds counter intuitive, but in a down economy this is exactly what you can do to align with customers.
What we all need to do, as individuals and organizations, is reduce our cost structure. That is the opportunity of this economic crisis. We are really forced to challenge all of our assumptions about about what we must have, the way we must do things.
So you know that your customers need to reduce their costs. If they haven’t let you know already, it is just a matter of time. They’re likely to be telling you they need to cut back on what they’re paying you. And here’s the choice:
Either you cut your price or reduce the quantity they buy from you.
Rick Gage 