Tips from CEOs – How to survive the economic downturn

I have been reading an outstanding book called ‘The Secrets of CEOs’.  The authors, Steve Tappin and Andrew Cave, interviewed 150 top global CEOs who have over 1,000 years of leadership experience between them.

These CEOs believe that the economic downturn will last, at least, until the end of 2009. 

These were the CEO top recommendations on how to survive this trying time:

1.     Keep the balance sheet strong. 

• - Cash is king.
• - Focus on working capital management.

2.     Avoid surprises

• - Lay your cards out on the table from the very beginning.  Declare current and expected losses early.
• - Make sure people face the bad news
• - Get extra luggage overboard 

3.     Focus intensely on performance and talent

• - Talented people do not stop being high maintenance simply because there is a downturn.  Stop nurturing them at your peril. 

4.     Catch the tide

• - You need to act fast.  Be alert. 
• - Manage in real time
• - Develop short and effective communication lines. 

5.     Be bold

• - The downturn can bring great opportunity – low price mergers, low cost investments.
• - After the downturn, the early bird will get the worm.

‘A manager’s job is to manage in the good times and the bad times.  Great managers use difficult times to position for competitive advantage.’

 Archie Norman, former CEO of ASDA

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