Courageous Growth During Economic Turbulence: Analyzing Two Competitive Companies

When the economy hits turbulent times, a lot of companies go into survival mode – layoffs, cutting costs, freezing hiring, and ‘turning off marketing’. However, companies that strategically expand during an economic downturn have an advantage over the competition.

?How do I know? I’ve lived it – on both sides.

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Two companies I’ve worked for went through similar economic downturns. They were both B2C subscription (SaaS) companies and approached a weak economy in very different ways.

?The first company had:

·?????No layoffs

·?????Secured a leadership position within the industry

·?????Grew revenue by 46%

·?????Bought by a Fortune 1000 company.

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The second company had:

·?????18% layoff of staff worldwide

·?????Closed multiple offices

·?????Reduced budgets or froze spending across multiple divisions

·?????Stopped projects to expand into adjacent business offerings

·?????Reported a 68% decrease in revenue

Very different outcomes for two similar companies in a similar situation. The difference in why one company prevailed over the other can be attributed to three main reasons.

?1.????Clear goals

The executive team focused on a few key goals and didn’t get distracted. It is hard to stay focused in a ‘normal’ economy. Opportunities arise and possible options present themselves all the time, especially if the company is growing. When the economy is not solid and the news constantly reports another company is laying off employees, it becomes exceptionally hard to remain focused.

Believing in the business strategy and executing on that strategy can seem daunting when facing a tough economy. There will be critics, naysayers, and pressures from investors, partners, suppliers, and sometimes even employees when executives put a stake in the ground around business goals. People will question the strategy, product offering, tactics, and more. It takes a strong leadership team to handle the critics and keep the company on track.

The specific goals we focused on were not a one size fits all template that companies can plug and play into today’s economic landscape. The goals that were defined, were unique to this company, the vision, product, and ideal customer profile (ICP). However, what stood out was not one of the three goals was revenue related.

Crazy, right? Not really.

The general categories of the goals that we focused on were about grabbing market share, building value for customers, and developing a superior product. Yes, in the end, these goals all contributed to revenue growth. These goals were not just semantics. They contributed to a mindset within the company for each employee to provide value for the customers and find ways to chip away at the competition. This was especially true when the competitor chose the survival mode path.

2.????Alignment throughout the entire company

Clear, defined goals are great but if employees don’t buy into them, they don’t mean a thing. The executive team met with the company as a whole and individual teams to reiterate the goals, share the reasoning behind them again, and reassure the teams that we were on the right path. They also didn’t want us to get distracted by the negative news that seemed to be everywhere. Not once did I hear anyone wondering if there would be layoffs or “what was going to happen”. That is 100% due to the executive team getting everyone aligned and focused on key goals.

The way the goals were conveyed did help achieve alignment as well. We were collectively focused on making a better experience for the customer and brainstorming across teams on how to gain ground on the competition. Instead of being nervous when a competitor made the news with layoffs, we looked at it as another opportunity to take customers away from them.

In addition, items that were on the ‘nice to have’ product roadmap were re-evaluated to see if they could give us a competitive edge with other competitors battening down the hatches. When economies turn on their head, features that were just nice to have can sometimes turn into value for customers who are also facing tough times on their side. Priorities shift during stressful times and the product offering also needs to in order to stay relevant.

3.????Build momentum and celebrate wins

Lastly, even when everyone is aligned and focused, building momentum that shows success towards those goals is critical. Plus, in a time of uncertainty, celebrating wins, however small, keeps the team focused on the goals and motivated to reach the next milestone.

Facing tough economic times is no easy task. Goals and alignment are great, but it takes hard work, dedication, and a team that is willing to pitch in and go the extra mile to get things done. It also requires rethinking how things are done, in what priority, and by whom. Employees in finance may be asked to QA a new feature set. An IT employee with a fabulous speaking voice may be asked to narrate the new product video.

The point is that when everyone pitches in and milestones are achieved, each and every employee knows they helped get the company there. The celebrations seem like winning the Super Bowl when in reality, it’s taking a moment to acknowledge the accomplishment, giving a shoutout to employees, and maybe grabbing a drink after work. Celebrations don’t need to be elaborate; they just need to happen so everyone knows their work is appreciated.

Crazy, unstable economic times are never fun for anyone. However, companies can emerge stronger if they are laser-focused, able to align employees, and build momentum towards their goals.

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Rhonda Giedt is a marketing executive focused on solving challenges to spur revenue growth in companies. She has experience marketing companies in SaaS, manufacturing, and 3D printing. She is also an avid sports fan of college football, golf, premier league football, and many others.

She is also an ambassador to the PEAK community and mentor to marketing and business professionals