Silent Death?

“Another business dying a silent death” Peter mentioned.

“What do you mean?” I asked.

?“This business is not doing well and the management is staying silent,” Peter answered.

“They do not know what to do and they are not looking for help. Ultimately, they will ask for support, but it will probably be too late. The business will either die silently or will be sold at a discounted price.”

It is no secret that the Covid 19 pandemic has disrupted the growth of Australian businesses, especially small and medium sized businesses. Some industries, for example IT and food delivery did very well. However, many, for example the retail and the tourism industries, did not.

After a series of lockdowns and regulations imposed by State Governments, Australian businesses have tried to replenish their cash reserves. However, the lack of demand for the services and products of these businesses has kept a lid on their recovery.

So, if you are leading a business that could suffer a silent death, what can be done?

First, accept keeping silent and doing nothing about the current predicament of the business is not an option.

As soon as the financial reports show an emerging downward trend over a consecutive 3-month period, help needs to be sought.

?Failing to do so is a major professional mistake. With each month that passes, it becomes harder and harder to reverse the trend.

We should remember that the first line of investigation always starts with the people. Not the money, not the processes, not the marketing and not the sales.

Concentrating on what people do, instead of the people themselves, is a mistake similar to the one made by doctors who focus on the symptoms instead of the disease.

If the business is not doing well, it means that the people are not pushing the levers that will change the direction of the business. Could it be that these people are skilled at operating during times of stability, but not in times of disturbances?

We all know that in times of war, the army takes over the control of the land, the air and sea. In the same manner, we have to ask: “Should the Board of a business in difficulty hand the reins to the executives of the company who are flexible and resilient to stress?”

The answer is “Yes.”

Every executive should be rated according to the following criteria: -

• Is visionary, creative, and big picture oriented.
• Has experienced a challenging environment in business and in life.
• Has the skills to lead and to build resilience in others during changing times.
• Wants to raise to the challenge.

To turn the company around, you need to do new things. This involves more risk and resilience. There is no way around!

Creative executives, who look at the big picture, will make suggestions that no one else has thought about. They will also be able to ignite enthusiasm at every level of the organisation.

?For these reasons, they need to be encouraged and be given more influence in the business.

Detail-oriented people may not lead during a period of instability, but nonetheless, they will also have an important role. They will be the ones who will implement the new processes and work at keeping the organisation stable.

In conclusion, in times of challenges, a realignment of influences is therefore primordial at all levels, from top to bottom.

Creative people will need to lead and, detail-oriented people will need to follow and do their best to create stability.

Once that period of difficulties ends, the leadership can return to the usual management practices handled by detail-oriented managers.