Management steps to get through a belt-tightening period

Managing staff during an economic change can present your firm with many opportunities. Here some insights on what you can consider doing now from the authors of The Performance Power Grid: The Proven Method to Create and Sustain Superior Organizational Performance.

• Take a positive view. Owners who use their time to improve their business and seize every possible opportunity – rather than wasting it by constantly worrying –will make it through the economic downturn. If you play your cards right, you may come out of these difficult financial times with an even more prosperous business than before.
  
  
• Manage compensation increases. Exclusive of partner distributions, most firm leaders again stressed the need for some restraint – certainly more than in previous years. In several instances, leaders say they have convened management committee meetings to review guidelines for increases offered to existing support staff and associates.
  
  
• Intensify partners’ involvement either in managerial terms or in policy-setting and monitoring responsibilities. This is useful for a number of reasons, not the least of which is a better understanding and tempering of what are often unfounded fears among owners.
  
  
• Monitor billing and receivables more closely. Reducing the time between providing services and collecting payment takes on even greater significance in uncertain times. Watch your cash flow to make sure that the firm is making the collections it should.
  
  
• Turn marketing tasks into client-service activities. Marketing efforts should concentrate more than ever on existing clients. Since clients are far more insecure these days than most will let you know, this is an excellent opportunity to respond to unexpressed needs.
  
  
• Strengthen the cultural ties that bind. Tough times challenge collegiality and unity, so owners are all responsible for managing cohesion now – this is no longer the responsibility of just the managing partner.
  

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