Know you’ll get through it. Probably the most important thing to keep focused on is that there will always be cycles, not only in the economy but also in different industries. Understand how to manage through those cycles and also recognize that, as a general rule and for the majority of businesses, it will turn. But once you recognize that there is a downturn, [you need] to manage cash flow, to manage the operations, but also to continue to motivate individuals in the organization and to also be honest with the individuals in the organization as to how the company is performing. But again, there is a balance between what is communicated and making sure that you communicate honestly with the individuals within the organization.
In planning the communication, you have to be very clear and concise on what you want to communicate and the point you want to make to the audience. You have to say it several times. If you’re delivering a presentation, whether it’s a live presentation or a video presentation, it’s important also to release the text of the communication so that if there’s any uncertainty with the communication, if they want to go back and read it, they can read it. If there are questions, you have to deal with those maybe in a different format. You try to keep everyone informed of the direction of the organization, how the organization is performing on an overall basis — maybe not specifically, so that those individuals aren’t consumed with concerns that they may not have a position in the near future.
Address personnel issues quickly. You’re probably constantly reviewing performance in the organization and providing counseling and trying to help individuals who may not be performing at a baseline level be successful in that organization, but if they don’t have the right attitude or the desires and goals, sometimes you have to make those tough decisions.
You have to constantly review or evaluate the personnel within the organization and make sure that they’re performing at a baseline level. Theoretically, it should be ongoing all the time but, at a minimum, annually — preferably twice to three times a year on a more formalized basis. If an individual is performing, then there needs to be communication and there needs to be recognition. If an individual is not performing, then there needs to be counseling throughout the entire year, and if an individual doesn’t rectify the underlying problem, that’s when the company has to make the tough decision to make a change.
How to reach: Habif, Arogeti & Wynne LLP, (404) 892-9651 or www.hawcpa.com
