A common saying in the business world right now is “survive till ‘25”, which is perhaps understandable given the uncertainty and low-growth most economies are going through this year. However, if you do want to come out of the recession full steam ahead ready to actually thrive in 25, then perhaps you should think about banning the phrase “survive till ’25” altogether.
Why you should avoid using “survive till ‘25”
I realise I’ve actually used this phrase extensively myself. It’s out in the market place, even the major banks are talking about it. Mind you, if you want a dose of optimism and a pick-me up in the current market, reading the commentary and predictions of the doom-mongers, sorry - I mean economists - is not the place to go.
However, let’s be quite frank about it, we can’t ignore that we are in a recession. It’s a fact, and the short-term outlook is somewhat Dickensian in being rather bleak. However, the more negative language we use, the more negative energy that creates in the workplace. The mantra “survive till 25” actually creates a lot of problems in itself, which go beyond the economic conditions.
The problems with “survive till 25”
1. Cutting the wrong costs
A lot of firms will cut all discretionary spend to get through these tough times. Perfectly logical. But what is discretionary spend? Well, let’s look at a list of what many firms will typically cut.
a) Training
b) Conference or events attendance
c) Marketing
d) Sponsorships
e) Catering
Now I’d like you to pause and re-read that list again but with the consideration of which of those activities contribute to your firm’s future growth and prosperity? As an example, is having a staff morning tea, while valuable to morale, further up the list to have as positive an impact on your growth aspirations as training or marketing activities?
I think we all know the answer to the question above, so I would urge you to reclassify as a business, with the needs of the business in the medium and long as well as the short term in mind, and reclassify what discretionary spend really is, in your organisation.
Management by spreadsheet preserves the cash flow you have but it doesn’t generate any future revenue. That’s surviving…..
2. People won’t leave (particularly the ones you want)
Firms need attrition. It’s healthy. Of course you don’t want too much staff turnover but unhappy or underperforming people leaving is great. Sometimes getting new people in is also a real lift for people and brings new ideas and a fresh impetus. Too much change is obviously not good, but too little leads to stagnation.
Continual talk of “just getting through the year” means just that. Which leads to…..
3. Diminished productivity
Our shared goal is to “survive till 25”. Let’s all as a group just get through this year. Hardly, Henry V at Agincourt Speech (courtesy of Shakespeare) or even Pacino in Any Given Sunday. Now clearly, we’re unlikely to deliver speeches like this in the workplace and they’d probably come across more like a scene from The Office if we gave it a try!
However, the idea of just getting through leads to doing only what’s needed, the bare minimum. It’s not intended that way, but that’s the effect. And what will that mean for your productivity? It’s likely to go down - and that is never a good thing.
4. You’ll mirror the market’s responsiveness
If you think it’s just you - right now it isn’t. Everyone I talk to has a story of people not coming back to them. Of clients or prospects asking for a quote and then agreeing it up to as far as you can go without signing - and then they turn into Casper – although ghosting is not friendly. Let’s be honest, it is rude and reflects really badly on the person doing it, and potentially also the organisation they work for.
It’s understandable, with budget constraints, uncertainty growing and business priorities changing, sometimes despite wanting to work with you, your clients cannot get sign-off to do so. But they should in every case communicate that to you.
We all agree with what they should do, and yet many people are also behaving the same way. Complaining about being ghosted on the one hand and then doing the same thing on the other.
5. You’ll start discounting.
Don’t do this. Whatever you do, don’t do this. If you have less work coming in, charging less for what you do have does not make for a positive cash-flow situation. There’s a lot to understand here, which is why you may also want to read my article, Pricing to keep the lights on, won’t keep the lights on!
Why you should focus on growth now to thrive in 25
Just saying let’s focus on how we’ll “thrive in 25” - rather than how will we “survive till 25” - is a big mind shift and it will help you to focus on some key areas that will help you going forward.
1. An emphasis on marketing
Studies have shown from previous recessions that those who spend the most on marketing during the down-cycle get the biggest uplift on the other side. Still think marketing spend is discretionary? If you have to make cuts, look elsewhere. Make marketing spend an untouchable and if you can, try putting more money and more focus in this area. Staying top of mind is essential.
2. Encourage people to spend more time with clients/prospects
Now is the time, if work is a bit flatter, to go out and see more of your clients and those in your network. Listen to what they are doing and experiencing. Find out what the short- and medium-term horizon looks like for them. The more listening and help you can bring them at the moment, the better.
3. Taking a positive position makes for a better work environment
It’s not fun working in a negative environment. While this year is tough, continually reinforcing that only makes it worse. It also increases peoples' concerns about their own job safety, which of course affects productivity.
So, try and be as positive as possible and try to speak in a more measured and optimistic way, rather than focusing on the negatives of the here and now. At least in the team or office environment. It’s okay – and important - to have conversations on a one-to-one basis with someone if you need that outlet.
Conclusion - Avoid focusing on “survive” if you want to thrive in 25
A small mind shift and change in language can actually help you change your focus on what is important right now and what you should be focusing on. It can help you make better decisions on where to save money, and where not to. Most people are experiencing a downturn right now, and just surviving may well not be the answer for the medium- and longer-term future of your company. If you can, try to keep that in mind when making decisions throughout the rest of this year.
