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Lessons f rom the Recess ion
4imprintcom
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Lessons from the Recess ionrsquos Most Successful Bus inesses
In his classic novel ldquoDon Quixoterdquo author Miguel de Cervantes said it best ldquoTo be
prepared is half the victoryrdquo
Itrsquos also half the battle As we build our business we hope for success and prepare
for the futuremdashwe prepare for the next big idea for the latest technology just
around the corner for the changing demands of our consumers Unfortunately
preparation for the future often doesnrsquot account for major unforeseen events
like natural disasters or the recent worldwide economic recession And sometimes
the bigger picture vision of the future eclipses the smaller more mundane details
like the basic b-school tactics needed to build a business initially
If this recession has taught us anything it has served to remind us
that these tactics are also required to sustain a business regardless of
economic climate The proof can be found in the handful of businesses
that have not only walked away from the battlefield of the last two
years relatively unscathed but are actually better off than before with
new investments new products or increased sales These businesses all
have one thing in common They were successful before things went
south they were positioned and prepared to forge ahead
Itrsquos time to get back to basics Take a few hintsmdash10 to be exactmdashfrom
the recessionrsquos most successful businesses to grow and sustain your own
business well into the future no matter what the future may hold
1 Bui ld a strong brand with loyal fo l lowersA brand is not just a logo Itrsquos not just a tagline a storefront a color palette
a brochure or a spokesperson A brand is an emotion or perception held by
someone outside of your business that describes the experience of buying your
product or using your service Businesses that understand this and successfully
relate to customers on an emotional level will likely find loyalty in customers who
buy (and buy again) and who recommend a brand to anyone willing to listen
Perhaps the best example of a business that ldquogetsrdquo branding is Applereg Apple is
one of the most recognizable brands in the world with one of the most vocal and
fiercely loyal customer bases This customer base is directly responsible for the
46 percent profit increase in Applersquos 2009 fourth-quarter and its revenues that
reached upward of $10 billion1
1 Kahney Leander ldquoApple Laughs At Recession Record Profits on Record Sales of Macs and IPhones
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In fact Apple CEO Steve Jobs himself is quoted as smugly
saying ldquoRecession What recessionrdquo as the fourth-quarter
numbers were announced2
If you ask branding expert and author of the book ldquoEmotional
Brandingrdquo Marc Gobe why Apple is so successful he will tell
you that itrsquos got little to do with products
ldquoWithout the brand Apple would be deadrdquo says Gobe
ldquoApple is about imagination design and innovation It goes beyond commercerdquo3
In an interview with Wired magazine Gobe explains that successful emotional
brands like Apple have been created in part with three very specific approaches4
bull The human factormdashThere is a strong humanistic corporate culture and
a strong corporate ethic Apple makes it clear that its brand and its
products are about people and community Apple aims to empower
people with technology and gives to like-minded causes such as donating
computers for education
bull A unique identitymdashFonts logos language and style are unique to the
brand and consistent in all communications across an extended period of
time Applersquos modern minimalistic styling and geeky-cool attitude is just
as apparent in ads as it is on its Web site and in its actual products like
the Mac operating system the iPhonetrade or the Macbooktrade
bull RelationshipsmdashThe business makes an ongoing effort to engage with
consumers and build trusting relationships Apple achieves this not only
in creating products that are built around people but in fostering a
community with a cult following Customer loyalty programs industry
blogs marketing efforts that build buzz and perks unique to Applersquos
products are all examples Theyrsquove succeeded in giving consumers the
sense that Apple canrsquot fully be understood until itrsquos experienced and that
itrsquos in this experience that Apple brings people together
| Cult of Macrdquo Cult of Mac | The Mac the IPod the IPhone - and the People Who Love Them 19 Oct 2009 Web 06 Apr 2010 lthttpwwwcultofmaccomapple-laughs-at-recession-sells-record-numbers-of-macs-ipods-and-iphones19035gt
2 Kahney Leander ldquoApple Laughs At Recession Record Profits on Record Sales of Macs and IPhones | Cult of Macrdquo Cult of Mac | The Mac the IPod the IPhone - and the People Who Love Them 19 Oct 2009 Web 06 Apr 2010 lthttpwwwcultofmaccomapple-laughs-at-recession-sells-record-numbers-of-macs-ipods-and-iphones19035gt
3 Kahney Leander ldquoApple Itrsquos All About the Brandrdquo Wired 04 Dec 2002 Web 02 Apr 2010 lthttpwwwwiredcomgadgetsmaccommentarycultofmac20021256677gt
4 Kahney Leander ldquoApple Itrsquos All About the Brandrdquo Wired 04 Dec 2002 Web 02 Apr 2010 lthttpwwwwiredcomgadgetsmaccommentarycultofmac20021256677gt
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There are additional components that successful brands like Apple have honed in
on such as
bull RelevancymdashThey offer products and services that connect to what
audiences deem important
bull AuthenticitymdashThey deliver on the expectations of consumers while
creating a brand product and services that might be rivaled but
definitely not mimicked
bull Thought leadershipmdashThey simultaneously focus on the demands of the
industry and customers in the present while identifying and creating
solutions to the demands of the future
A solid brand canrsquot be built overnight but if thoughtful care is put into
building it your business will develop an asset that canrsquot easily be lost
with the stock marketmdashthe power of emotional connections created by
successful brands is priceless
2 Def ine your niche and adjust as necessaryCF Martin and Cotrade has been manufacturing instruments since
1833mdashthey are the worldrsquos oldest-surviving instrument maker
and the United Statesrsquo largest producer of acoustic guitars
Martin Guitarstrade as the brand is most commonly referred to in
the US is known for instruments that sound good and look
good Many of its instruments also have a price tag to match
That was however until the economy dipped5
Previously Martin had defined one of its niches as an elitist
group of musicians and collectors but in 2009 found that this niche stopped
buying at the rates they once did People stopped spending So Martin identified
a new nichemdashmusicians and discerning guitar enthusiasts on a budgetmdashand
created a new product a guitar with the tonal quality the manufacturer is known
for but with a
bare-bones design that skimped on decoration while saving on production costs
The resulting guitar the Series 1 retails for around $1000mdasha veritable steal in
the world of guitars The result Orders surged worldwide and the Series 1 has
been permanently added to Martinrsquos line of inventory6
5 Smith Kimberly ldquoCase Study Lessons From Martin Guitars Three Ways to Survive a Downturnrdquo MarketingProfs Marketing Resources for Marketing Professionals 26 Jan 2010 Web 05 Apr 2010 lthttpwwwmarketingprofscomcasestudy164gt
6 Smith Kimberly ldquoCase Study Lessons From Martin Guitars Three Ways to Survive a Downturnrdquo MarketingProfs Marketing Resources for Marketing Professionals 26 Jan 2010 Web 05 Apr 2010 lthttpwwwmarketingprofscomcasestudy164gt
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Any business knows that its audience or its overall market needs to be defined
before any business or communications goals can be accomplished Itrsquos also known
that in offering or marketing products to a very specific segment a business or
particular product stands a better chance of success Itrsquos a successful business
though that realizes segmentations used to identify niches can change as the
priorities interests or needs of the individuals in that segment change These
businesses strategically build their products services and marketing plans to be
adaptable and to truly be of value and relevancy to customers no matter what
Allen Weiss founder of MarketingProfscom suggests beginning the
segmentation process by identifying a niche This can
be done by looking at the benefits offered by different
groups of customers and then separating them out based
on whether there are groups of customers who would care
about different clusters of these benefits7
Weiss then suggests basing segmentations off of usage
application and prior experience with the product category
brand loyalty buying situation and lifestyle8
ldquoYou will know that you have a good segmentation if the customers in the
different segments make tradeoffs differentlyrdquo says Weiss9
You also know your business has identified good segmentation and subsequent
niches if the segments are measurable and they are reachable by numerous
channels Good niches are sizeable and sustainable and often have needs that
arenrsquot being met by brands or products elsewhere
3 Know your industryRemember how just before the economy got really messy fuel prices skyrocketed
to record-setting highs So does Ford Motor Co In fact the entire automotive
industry took note as consumers abandoned gas-guzzling SUVs in droves for more
fuel-efficient compact cars and hybrids Foreign automakers for the first time
even shifted much of their focus on developing cars to meet this new demand
Recognizing a trend not just in consumer buying behavior but in the entire
industry Ford stepped up to the plate and became one of the first American
car companies to actively seek ways to reduce emissions and increase the fuel
7 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
8 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
9 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
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efficiency of its entire line up10
Additionally it has been speculated that the
grant money Ford was able to secure to explore
the technology required to make these efforts
possible provided a cushion that later aided them
in becoming the only car company to refuse bailout
money from the US governmentmdashdeeming it
unnecessary Indeed Ford sales in December of 2009
were up 335 percent from 200811
Knowing your businessrsquos industry isnrsquot about keeping up with the Joneses Itrsquos
about securing the information that will allow your business to offer competitive
products and services differentiate provide quality customer service select new
locations and learn from the mistakes of othersrsquo
To know your industry your overall marketing strategy should include plans
to monitor competitors and stay abreast of industry news through respected
industry publications blogs local and national news and participation in
professional associations Set up Googlereg alerts to monitor keywords or phrases
of your industry and the names of your tops competitors in addition of course to
your own name and team members
4 Understand your customersIn 2001 Leonard Lauder chairman of Esteacutee Lauder Companies noticed
somethingmdashlipstick sales were on the rise while the sales of other types of
cosmetics soured He watched this trend hold true over a course of a few months
as consumer spending dipped worldwide and developed a theory that has
since been dubbed by economists as the Lipstick Effect The theory asserts that
consumers donrsquot forgo luxury purchases in a recession or economic downtown
completely but rather they purchase smaller luxuries like designer lipstick Now
and after further research with the latest downturn economists say that the sale
of lipstick may actually be an indicator of the economy12
While interesting and it is interesting the theory is not the entire lesson of
Lauderrsquos original observation Lauder knew his customers well enough to
10 Walsh Dustin ldquoUS Needs to Value Manufacturing Base Then Rebuild It Bill Ford Saysrdquo Detroit News and Information - Crainrsquos Detroit Business 16 Feb 2010 Web 06 Apr 2010 lthttpwwwcrainsdetroitcomarticle20100216FREE100219906gt
11 ldquoAuto Sales - Markets Data Center - WSJcomrdquo Business News amp Financial News - The Wall Street Journal - WSJcom Web 06 Apr 2010 lthttponlinewsjcommdcpublicpage2_3022-autosaleshtmlautosalesEgt
12 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
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understand their buying habits Once he understood these buying habits he was
able to predict future trends and make correlations that directly affected the
product lines When the sales of lipstick edge up Esteacutee Lauder expands its lipstick
offerings to include new colors and new formulations and it even develops or
expands partner productsmdashsuch as lip conditioners lip liners brushes glosses and
plumpersmdashthat can enhance the lipstick experience13
The lesson here is that businesses canrsquot just draw the line at
understanding basic demographics of customers and market
segments instead businesses
bull Need to know customers well enough to identify buying
habits and predict patterns Know what motivates them
what discourages them what they want versus what they
need and what they can afford versus what they are willing to pay
bull Need to be proactive in conducting ongoing market research to get
this information and to cultivate relationships with customers by really
listening to customers through your own customer service channels
through social media monitoring and frequent surveys
bull Use this information to take advantage of timing to build relationships
and continue to meet the demands of customers before the demand is
actually voicedmdasha critical factor in satisfying customers and staying a cut
above the competition and forever relevant
5 Value your customersJust as important as understanding customers is valuing them Not only is it the
right thing to domdashbecause without them you wouldnrsquot existmdashbut customers
that feel as if their business is appreciated are more likely to become loyal brand
followers
In an industry rife with bankruptcies and layoffs that resulted in fewer flights
more cancellations and disgruntled passengers Southwest Airlines refused to
budge from its core beliefmdashthe value of customer service
ldquoThe mission of Southwest Airlines is dedication to the highest quality of
customer service delivered with a sense of warmth friendliness individual pride
and company spiritrdquo14
13 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
14 ldquoSouthwest Airlines - The Mission of Southwest Airlinesrdquo Southwest Airlines Web 10 Apr 2010
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The airline coped with the recession and past downturns by cutting costs where it
could demanding a consistent management style from employees and perhaps
most importantly it continued to invest in training programs for staff that
instilled and encouraged the positive attitude and customer focus the airline is
known formdasha program that requires $3 million in annual expenditures plus the
costs of upkeep and staffing of a 40000 square foot training terminal15
Customer service training was just the beginning While other airlines began to
search for every possible source of additional revenue like charging additional
fees for in-flight meals and tacking on services fees for checked baggage
Southwest continued to provide complimentary meals to certain ticket holders
and allowed all passengers to check two bags for free They refused to sacrifice
customer service for the bottom line While these may seem like small gestures
travelers appreciated them all the same After announcing it had seen a profit
throughout the recession and into the fourth quarter of 2009 its 37th straight
year of posting a profit
Southwest believes that it was able to maintain and grown business when other
airlines faltered based largely on these seemingly small gestures mdashgestures that
were once standard for all airlines but are now seen as extras in
the eyes of consumers16
This is not to say that Southwest wasnrsquot forced to take action to
reduce costs and seek revenue elsewhere The airline secured a
credit line froze certain hiring practices and implemented an
additional fee for unaccompanied minors and pets Southwest
strategically chose what to cut and where to charge extra in order
to stand behind its mission and in doing so filled a gap within the industry that
made customers feel valued and appreciated17
So what can your business do to get back to the basics of showing your customers
how much they mean to you Here are a few ideas
bull Make sure your customer service policy is in writing and easily accessible
to employees and customers on site and online This helps employees
know what is expected of them but also reassures customers of what
your business stands for and how they can expect to be treated
lthttpwwwsouthwestcomabout_swamissionhtmlint=GFOOTER-ABOUT-MISSIONgt15 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print16 Koenig David ldquoSouthwest Airlines Posts 4Q Full-Year Profit - ABC Newsrdquo ABCNewscom 21 Jan 2010 Web
10 Apr 2010 lthttpabcnewsgocomBusinesswireStoryid=9621566gt17 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print
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bull Give your employees authority to resolve customer service issues If
employees donrsquot have the power to make it right customer service
complaints are a moot point While not all employees are able to
change a process or a policy all employees should be able to make the
promise that someone will review the customerrsquos concern Employees
should also be given the ability to offer vouchers discounts free items
or replacement products as a gesture to show customers that their
happiness is important
bull Similarly know that happy employees equal happy customers Do what
you can to help employees to educate and train employees and to foster
a sense of pride in them Offering a sense of security when possible helps
toomdashit should be noted that Southwest has never not
once laid off an employee Ever
bull Develop a measurement of outstanding customer
service and reward employees who get it right
bull Listen to customers Donrsquot just wait for them to offer
up opinions or voice unhappiness make sure there are suggestion boxes
on site contact information on your Web site or a customer service-
specific phone number andor e-mail for assistance Adding virtual
customer service chats is an increasingly popular effort many retail
businesses are trying on for size too
bull Give a gift for no reason Thank-you notes are often hard to come by
these days let alone a personalized one from a business that simply
shows that someone took the time to say ldquoThanks for your business We
appreciate yourdquo When you can send a token of appreciation with this
note for added warm-fuzzy effects
bull Build relationships This part will come easy if you listen to your
customers and resolve issues by meeting the needs of your audiences
Once they see that your business values them and is invested in them
theyrsquoll be more likely to be engage through repeat purchases or positive
word of mouth and social media interactions
6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending
wherever possible But the recessionrsquos most successful businesses resisted this urge
Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos
right spending
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Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
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There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
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ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
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8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
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inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
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Lessons from the Recess ionrsquos Most Successful Bus inesses
In his classic novel ldquoDon Quixoterdquo author Miguel de Cervantes said it best ldquoTo be
prepared is half the victoryrdquo
Itrsquos also half the battle As we build our business we hope for success and prepare
for the futuremdashwe prepare for the next big idea for the latest technology just
around the corner for the changing demands of our consumers Unfortunately
preparation for the future often doesnrsquot account for major unforeseen events
like natural disasters or the recent worldwide economic recession And sometimes
the bigger picture vision of the future eclipses the smaller more mundane details
like the basic b-school tactics needed to build a business initially
If this recession has taught us anything it has served to remind us
that these tactics are also required to sustain a business regardless of
economic climate The proof can be found in the handful of businesses
that have not only walked away from the battlefield of the last two
years relatively unscathed but are actually better off than before with
new investments new products or increased sales These businesses all
have one thing in common They were successful before things went
south they were positioned and prepared to forge ahead
Itrsquos time to get back to basics Take a few hintsmdash10 to be exactmdashfrom
the recessionrsquos most successful businesses to grow and sustain your own
business well into the future no matter what the future may hold
1 Bui ld a strong brand with loyal fo l lowersA brand is not just a logo Itrsquos not just a tagline a storefront a color palette
a brochure or a spokesperson A brand is an emotion or perception held by
someone outside of your business that describes the experience of buying your
product or using your service Businesses that understand this and successfully
relate to customers on an emotional level will likely find loyalty in customers who
buy (and buy again) and who recommend a brand to anyone willing to listen
Perhaps the best example of a business that ldquogetsrdquo branding is Applereg Apple is
one of the most recognizable brands in the world with one of the most vocal and
fiercely loyal customer bases This customer base is directly responsible for the
46 percent profit increase in Applersquos 2009 fourth-quarter and its revenues that
reached upward of $10 billion1
1 Kahney Leander ldquoApple Laughs At Recession Record Profits on Record Sales of Macs and IPhones
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ers
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In fact Apple CEO Steve Jobs himself is quoted as smugly
saying ldquoRecession What recessionrdquo as the fourth-quarter
numbers were announced2
If you ask branding expert and author of the book ldquoEmotional
Brandingrdquo Marc Gobe why Apple is so successful he will tell
you that itrsquos got little to do with products
ldquoWithout the brand Apple would be deadrdquo says Gobe
ldquoApple is about imagination design and innovation It goes beyond commercerdquo3
In an interview with Wired magazine Gobe explains that successful emotional
brands like Apple have been created in part with three very specific approaches4
bull The human factormdashThere is a strong humanistic corporate culture and
a strong corporate ethic Apple makes it clear that its brand and its
products are about people and community Apple aims to empower
people with technology and gives to like-minded causes such as donating
computers for education
bull A unique identitymdashFonts logos language and style are unique to the
brand and consistent in all communications across an extended period of
time Applersquos modern minimalistic styling and geeky-cool attitude is just
as apparent in ads as it is on its Web site and in its actual products like
the Mac operating system the iPhonetrade or the Macbooktrade
bull RelationshipsmdashThe business makes an ongoing effort to engage with
consumers and build trusting relationships Apple achieves this not only
in creating products that are built around people but in fostering a
community with a cult following Customer loyalty programs industry
blogs marketing efforts that build buzz and perks unique to Applersquos
products are all examples Theyrsquove succeeded in giving consumers the
sense that Apple canrsquot fully be understood until itrsquos experienced and that
itrsquos in this experience that Apple brings people together
| Cult of Macrdquo Cult of Mac | The Mac the IPod the IPhone - and the People Who Love Them 19 Oct 2009 Web 06 Apr 2010 lthttpwwwcultofmaccomapple-laughs-at-recession-sells-record-numbers-of-macs-ipods-and-iphones19035gt
2 Kahney Leander ldquoApple Laughs At Recession Record Profits on Record Sales of Macs and IPhones | Cult of Macrdquo Cult of Mac | The Mac the IPod the IPhone - and the People Who Love Them 19 Oct 2009 Web 06 Apr 2010 lthttpwwwcultofmaccomapple-laughs-at-recession-sells-record-numbers-of-macs-ipods-and-iphones19035gt
3 Kahney Leander ldquoApple Itrsquos All About the Brandrdquo Wired 04 Dec 2002 Web 02 Apr 2010 lthttpwwwwiredcomgadgetsmaccommentarycultofmac20021256677gt
4 Kahney Leander ldquoApple Itrsquos All About the Brandrdquo Wired 04 Dec 2002 Web 02 Apr 2010 lthttpwwwwiredcomgadgetsmaccommentarycultofmac20021256677gt
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There are additional components that successful brands like Apple have honed in
on such as
bull RelevancymdashThey offer products and services that connect to what
audiences deem important
bull AuthenticitymdashThey deliver on the expectations of consumers while
creating a brand product and services that might be rivaled but
definitely not mimicked
bull Thought leadershipmdashThey simultaneously focus on the demands of the
industry and customers in the present while identifying and creating
solutions to the demands of the future
A solid brand canrsquot be built overnight but if thoughtful care is put into
building it your business will develop an asset that canrsquot easily be lost
with the stock marketmdashthe power of emotional connections created by
successful brands is priceless
2 Def ine your niche and adjust as necessaryCF Martin and Cotrade has been manufacturing instruments since
1833mdashthey are the worldrsquos oldest-surviving instrument maker
and the United Statesrsquo largest producer of acoustic guitars
Martin Guitarstrade as the brand is most commonly referred to in
the US is known for instruments that sound good and look
good Many of its instruments also have a price tag to match
That was however until the economy dipped5
Previously Martin had defined one of its niches as an elitist
group of musicians and collectors but in 2009 found that this niche stopped
buying at the rates they once did People stopped spending So Martin identified
a new nichemdashmusicians and discerning guitar enthusiasts on a budgetmdashand
created a new product a guitar with the tonal quality the manufacturer is known
for but with a
bare-bones design that skimped on decoration while saving on production costs
The resulting guitar the Series 1 retails for around $1000mdasha veritable steal in
the world of guitars The result Orders surged worldwide and the Series 1 has
been permanently added to Martinrsquos line of inventory6
5 Smith Kimberly ldquoCase Study Lessons From Martin Guitars Three Ways to Survive a Downturnrdquo MarketingProfs Marketing Resources for Marketing Professionals 26 Jan 2010 Web 05 Apr 2010 lthttpwwwmarketingprofscomcasestudy164gt
6 Smith Kimberly ldquoCase Study Lessons From Martin Guitars Three Ways to Survive a Downturnrdquo MarketingProfs Marketing Resources for Marketing Professionals 26 Jan 2010 Web 05 Apr 2010 lthttpwwwmarketingprofscomcasestudy164gt
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Any business knows that its audience or its overall market needs to be defined
before any business or communications goals can be accomplished Itrsquos also known
that in offering or marketing products to a very specific segment a business or
particular product stands a better chance of success Itrsquos a successful business
though that realizes segmentations used to identify niches can change as the
priorities interests or needs of the individuals in that segment change These
businesses strategically build their products services and marketing plans to be
adaptable and to truly be of value and relevancy to customers no matter what
Allen Weiss founder of MarketingProfscom suggests beginning the
segmentation process by identifying a niche This can
be done by looking at the benefits offered by different
groups of customers and then separating them out based
on whether there are groups of customers who would care
about different clusters of these benefits7
Weiss then suggests basing segmentations off of usage
application and prior experience with the product category
brand loyalty buying situation and lifestyle8
ldquoYou will know that you have a good segmentation if the customers in the
different segments make tradeoffs differentlyrdquo says Weiss9
You also know your business has identified good segmentation and subsequent
niches if the segments are measurable and they are reachable by numerous
channels Good niches are sizeable and sustainable and often have needs that
arenrsquot being met by brands or products elsewhere
3 Know your industryRemember how just before the economy got really messy fuel prices skyrocketed
to record-setting highs So does Ford Motor Co In fact the entire automotive
industry took note as consumers abandoned gas-guzzling SUVs in droves for more
fuel-efficient compact cars and hybrids Foreign automakers for the first time
even shifted much of their focus on developing cars to meet this new demand
Recognizing a trend not just in consumer buying behavior but in the entire
industry Ford stepped up to the plate and became one of the first American
car companies to actively seek ways to reduce emissions and increase the fuel
7 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
8 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
9 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
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efficiency of its entire line up10
Additionally it has been speculated that the
grant money Ford was able to secure to explore
the technology required to make these efforts
possible provided a cushion that later aided them
in becoming the only car company to refuse bailout
money from the US governmentmdashdeeming it
unnecessary Indeed Ford sales in December of 2009
were up 335 percent from 200811
Knowing your businessrsquos industry isnrsquot about keeping up with the Joneses Itrsquos
about securing the information that will allow your business to offer competitive
products and services differentiate provide quality customer service select new
locations and learn from the mistakes of othersrsquo
To know your industry your overall marketing strategy should include plans
to monitor competitors and stay abreast of industry news through respected
industry publications blogs local and national news and participation in
professional associations Set up Googlereg alerts to monitor keywords or phrases
of your industry and the names of your tops competitors in addition of course to
your own name and team members
4 Understand your customersIn 2001 Leonard Lauder chairman of Esteacutee Lauder Companies noticed
somethingmdashlipstick sales were on the rise while the sales of other types of
cosmetics soured He watched this trend hold true over a course of a few months
as consumer spending dipped worldwide and developed a theory that has
since been dubbed by economists as the Lipstick Effect The theory asserts that
consumers donrsquot forgo luxury purchases in a recession or economic downtown
completely but rather they purchase smaller luxuries like designer lipstick Now
and after further research with the latest downturn economists say that the sale
of lipstick may actually be an indicator of the economy12
While interesting and it is interesting the theory is not the entire lesson of
Lauderrsquos original observation Lauder knew his customers well enough to
10 Walsh Dustin ldquoUS Needs to Value Manufacturing Base Then Rebuild It Bill Ford Saysrdquo Detroit News and Information - Crainrsquos Detroit Business 16 Feb 2010 Web 06 Apr 2010 lthttpwwwcrainsdetroitcomarticle20100216FREE100219906gt
11 ldquoAuto Sales - Markets Data Center - WSJcomrdquo Business News amp Financial News - The Wall Street Journal - WSJcom Web 06 Apr 2010 lthttponlinewsjcommdcpublicpage2_3022-autosaleshtmlautosalesEgt
12 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
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understand their buying habits Once he understood these buying habits he was
able to predict future trends and make correlations that directly affected the
product lines When the sales of lipstick edge up Esteacutee Lauder expands its lipstick
offerings to include new colors and new formulations and it even develops or
expands partner productsmdashsuch as lip conditioners lip liners brushes glosses and
plumpersmdashthat can enhance the lipstick experience13
The lesson here is that businesses canrsquot just draw the line at
understanding basic demographics of customers and market
segments instead businesses
bull Need to know customers well enough to identify buying
habits and predict patterns Know what motivates them
what discourages them what they want versus what they
need and what they can afford versus what they are willing to pay
bull Need to be proactive in conducting ongoing market research to get
this information and to cultivate relationships with customers by really
listening to customers through your own customer service channels
through social media monitoring and frequent surveys
bull Use this information to take advantage of timing to build relationships
and continue to meet the demands of customers before the demand is
actually voicedmdasha critical factor in satisfying customers and staying a cut
above the competition and forever relevant
5 Value your customersJust as important as understanding customers is valuing them Not only is it the
right thing to domdashbecause without them you wouldnrsquot existmdashbut customers
that feel as if their business is appreciated are more likely to become loyal brand
followers
In an industry rife with bankruptcies and layoffs that resulted in fewer flights
more cancellations and disgruntled passengers Southwest Airlines refused to
budge from its core beliefmdashthe value of customer service
ldquoThe mission of Southwest Airlines is dedication to the highest quality of
customer service delivered with a sense of warmth friendliness individual pride
and company spiritrdquo14
13 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
14 ldquoSouthwest Airlines - The Mission of Southwest Airlinesrdquo Southwest Airlines Web 10 Apr 2010
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The airline coped with the recession and past downturns by cutting costs where it
could demanding a consistent management style from employees and perhaps
most importantly it continued to invest in training programs for staff that
instilled and encouraged the positive attitude and customer focus the airline is
known formdasha program that requires $3 million in annual expenditures plus the
costs of upkeep and staffing of a 40000 square foot training terminal15
Customer service training was just the beginning While other airlines began to
search for every possible source of additional revenue like charging additional
fees for in-flight meals and tacking on services fees for checked baggage
Southwest continued to provide complimentary meals to certain ticket holders
and allowed all passengers to check two bags for free They refused to sacrifice
customer service for the bottom line While these may seem like small gestures
travelers appreciated them all the same After announcing it had seen a profit
throughout the recession and into the fourth quarter of 2009 its 37th straight
year of posting a profit
Southwest believes that it was able to maintain and grown business when other
airlines faltered based largely on these seemingly small gestures mdashgestures that
were once standard for all airlines but are now seen as extras in
the eyes of consumers16
This is not to say that Southwest wasnrsquot forced to take action to
reduce costs and seek revenue elsewhere The airline secured a
credit line froze certain hiring practices and implemented an
additional fee for unaccompanied minors and pets Southwest
strategically chose what to cut and where to charge extra in order
to stand behind its mission and in doing so filled a gap within the industry that
made customers feel valued and appreciated17
So what can your business do to get back to the basics of showing your customers
how much they mean to you Here are a few ideas
bull Make sure your customer service policy is in writing and easily accessible
to employees and customers on site and online This helps employees
know what is expected of them but also reassures customers of what
your business stands for and how they can expect to be treated
lthttpwwwsouthwestcomabout_swamissionhtmlint=GFOOTER-ABOUT-MISSIONgt15 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print16 Koenig David ldquoSouthwest Airlines Posts 4Q Full-Year Profit - ABC Newsrdquo ABCNewscom 21 Jan 2010 Web
10 Apr 2010 lthttpabcnewsgocomBusinesswireStoryid=9621566gt17 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print
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bull Give your employees authority to resolve customer service issues If
employees donrsquot have the power to make it right customer service
complaints are a moot point While not all employees are able to
change a process or a policy all employees should be able to make the
promise that someone will review the customerrsquos concern Employees
should also be given the ability to offer vouchers discounts free items
or replacement products as a gesture to show customers that their
happiness is important
bull Similarly know that happy employees equal happy customers Do what
you can to help employees to educate and train employees and to foster
a sense of pride in them Offering a sense of security when possible helps
toomdashit should be noted that Southwest has never not
once laid off an employee Ever
bull Develop a measurement of outstanding customer
service and reward employees who get it right
bull Listen to customers Donrsquot just wait for them to offer
up opinions or voice unhappiness make sure there are suggestion boxes
on site contact information on your Web site or a customer service-
specific phone number andor e-mail for assistance Adding virtual
customer service chats is an increasingly popular effort many retail
businesses are trying on for size too
bull Give a gift for no reason Thank-you notes are often hard to come by
these days let alone a personalized one from a business that simply
shows that someone took the time to say ldquoThanks for your business We
appreciate yourdquo When you can send a token of appreciation with this
note for added warm-fuzzy effects
bull Build relationships This part will come easy if you listen to your
customers and resolve issues by meeting the needs of your audiences
Once they see that your business values them and is invested in them
theyrsquoll be more likely to be engage through repeat purchases or positive
word of mouth and social media interactions
6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending
wherever possible But the recessionrsquos most successful businesses resisted this urge
Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos
right spending
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Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
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There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
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ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
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8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
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inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
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In fact Apple CEO Steve Jobs himself is quoted as smugly
saying ldquoRecession What recessionrdquo as the fourth-quarter
numbers were announced2
If you ask branding expert and author of the book ldquoEmotional
Brandingrdquo Marc Gobe why Apple is so successful he will tell
you that itrsquos got little to do with products
ldquoWithout the brand Apple would be deadrdquo says Gobe
ldquoApple is about imagination design and innovation It goes beyond commercerdquo3
In an interview with Wired magazine Gobe explains that successful emotional
brands like Apple have been created in part with three very specific approaches4
bull The human factormdashThere is a strong humanistic corporate culture and
a strong corporate ethic Apple makes it clear that its brand and its
products are about people and community Apple aims to empower
people with technology and gives to like-minded causes such as donating
computers for education
bull A unique identitymdashFonts logos language and style are unique to the
brand and consistent in all communications across an extended period of
time Applersquos modern minimalistic styling and geeky-cool attitude is just
as apparent in ads as it is on its Web site and in its actual products like
the Mac operating system the iPhonetrade or the Macbooktrade
bull RelationshipsmdashThe business makes an ongoing effort to engage with
consumers and build trusting relationships Apple achieves this not only
in creating products that are built around people but in fostering a
community with a cult following Customer loyalty programs industry
blogs marketing efforts that build buzz and perks unique to Applersquos
products are all examples Theyrsquove succeeded in giving consumers the
sense that Apple canrsquot fully be understood until itrsquos experienced and that
itrsquos in this experience that Apple brings people together
| Cult of Macrdquo Cult of Mac | The Mac the IPod the IPhone - and the People Who Love Them 19 Oct 2009 Web 06 Apr 2010 lthttpwwwcultofmaccomapple-laughs-at-recession-sells-record-numbers-of-macs-ipods-and-iphones19035gt
2 Kahney Leander ldquoApple Laughs At Recession Record Profits on Record Sales of Macs and IPhones | Cult of Macrdquo Cult of Mac | The Mac the IPod the IPhone - and the People Who Love Them 19 Oct 2009 Web 06 Apr 2010 lthttpwwwcultofmaccomapple-laughs-at-recession-sells-record-numbers-of-macs-ipods-and-iphones19035gt
3 Kahney Leander ldquoApple Itrsquos All About the Brandrdquo Wired 04 Dec 2002 Web 02 Apr 2010 lthttpwwwwiredcomgadgetsmaccommentarycultofmac20021256677gt
4 Kahney Leander ldquoApple Itrsquos All About the Brandrdquo Wired 04 Dec 2002 Web 02 Apr 2010 lthttpwwwwiredcomgadgetsmaccommentarycultofmac20021256677gt
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There are additional components that successful brands like Apple have honed in
on such as
bull RelevancymdashThey offer products and services that connect to what
audiences deem important
bull AuthenticitymdashThey deliver on the expectations of consumers while
creating a brand product and services that might be rivaled but
definitely not mimicked
bull Thought leadershipmdashThey simultaneously focus on the demands of the
industry and customers in the present while identifying and creating
solutions to the demands of the future
A solid brand canrsquot be built overnight but if thoughtful care is put into
building it your business will develop an asset that canrsquot easily be lost
with the stock marketmdashthe power of emotional connections created by
successful brands is priceless
2 Def ine your niche and adjust as necessaryCF Martin and Cotrade has been manufacturing instruments since
1833mdashthey are the worldrsquos oldest-surviving instrument maker
and the United Statesrsquo largest producer of acoustic guitars
Martin Guitarstrade as the brand is most commonly referred to in
the US is known for instruments that sound good and look
good Many of its instruments also have a price tag to match
That was however until the economy dipped5
Previously Martin had defined one of its niches as an elitist
group of musicians and collectors but in 2009 found that this niche stopped
buying at the rates they once did People stopped spending So Martin identified
a new nichemdashmusicians and discerning guitar enthusiasts on a budgetmdashand
created a new product a guitar with the tonal quality the manufacturer is known
for but with a
bare-bones design that skimped on decoration while saving on production costs
The resulting guitar the Series 1 retails for around $1000mdasha veritable steal in
the world of guitars The result Orders surged worldwide and the Series 1 has
been permanently added to Martinrsquos line of inventory6
5 Smith Kimberly ldquoCase Study Lessons From Martin Guitars Three Ways to Survive a Downturnrdquo MarketingProfs Marketing Resources for Marketing Professionals 26 Jan 2010 Web 05 Apr 2010 lthttpwwwmarketingprofscomcasestudy164gt
6 Smith Kimberly ldquoCase Study Lessons From Martin Guitars Three Ways to Survive a Downturnrdquo MarketingProfs Marketing Resources for Marketing Professionals 26 Jan 2010 Web 05 Apr 2010 lthttpwwwmarketingprofscomcasestudy164gt
Blue
Pap
ers
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ers
copy 2010 4imprint Inc All rights reserved
Any business knows that its audience or its overall market needs to be defined
before any business or communications goals can be accomplished Itrsquos also known
that in offering or marketing products to a very specific segment a business or
particular product stands a better chance of success Itrsquos a successful business
though that realizes segmentations used to identify niches can change as the
priorities interests or needs of the individuals in that segment change These
businesses strategically build their products services and marketing plans to be
adaptable and to truly be of value and relevancy to customers no matter what
Allen Weiss founder of MarketingProfscom suggests beginning the
segmentation process by identifying a niche This can
be done by looking at the benefits offered by different
groups of customers and then separating them out based
on whether there are groups of customers who would care
about different clusters of these benefits7
Weiss then suggests basing segmentations off of usage
application and prior experience with the product category
brand loyalty buying situation and lifestyle8
ldquoYou will know that you have a good segmentation if the customers in the
different segments make tradeoffs differentlyrdquo says Weiss9
You also know your business has identified good segmentation and subsequent
niches if the segments are measurable and they are reachable by numerous
channels Good niches are sizeable and sustainable and often have needs that
arenrsquot being met by brands or products elsewhere
3 Know your industryRemember how just before the economy got really messy fuel prices skyrocketed
to record-setting highs So does Ford Motor Co In fact the entire automotive
industry took note as consumers abandoned gas-guzzling SUVs in droves for more
fuel-efficient compact cars and hybrids Foreign automakers for the first time
even shifted much of their focus on developing cars to meet this new demand
Recognizing a trend not just in consumer buying behavior but in the entire
industry Ford stepped up to the plate and became one of the first American
car companies to actively seek ways to reduce emissions and increase the fuel
7 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
8 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
9 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
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Pap
ers
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efficiency of its entire line up10
Additionally it has been speculated that the
grant money Ford was able to secure to explore
the technology required to make these efforts
possible provided a cushion that later aided them
in becoming the only car company to refuse bailout
money from the US governmentmdashdeeming it
unnecessary Indeed Ford sales in December of 2009
were up 335 percent from 200811
Knowing your businessrsquos industry isnrsquot about keeping up with the Joneses Itrsquos
about securing the information that will allow your business to offer competitive
products and services differentiate provide quality customer service select new
locations and learn from the mistakes of othersrsquo
To know your industry your overall marketing strategy should include plans
to monitor competitors and stay abreast of industry news through respected
industry publications blogs local and national news and participation in
professional associations Set up Googlereg alerts to monitor keywords or phrases
of your industry and the names of your tops competitors in addition of course to
your own name and team members
4 Understand your customersIn 2001 Leonard Lauder chairman of Esteacutee Lauder Companies noticed
somethingmdashlipstick sales were on the rise while the sales of other types of
cosmetics soured He watched this trend hold true over a course of a few months
as consumer spending dipped worldwide and developed a theory that has
since been dubbed by economists as the Lipstick Effect The theory asserts that
consumers donrsquot forgo luxury purchases in a recession or economic downtown
completely but rather they purchase smaller luxuries like designer lipstick Now
and after further research with the latest downturn economists say that the sale
of lipstick may actually be an indicator of the economy12
While interesting and it is interesting the theory is not the entire lesson of
Lauderrsquos original observation Lauder knew his customers well enough to
10 Walsh Dustin ldquoUS Needs to Value Manufacturing Base Then Rebuild It Bill Ford Saysrdquo Detroit News and Information - Crainrsquos Detroit Business 16 Feb 2010 Web 06 Apr 2010 lthttpwwwcrainsdetroitcomarticle20100216FREE100219906gt
11 ldquoAuto Sales - Markets Data Center - WSJcomrdquo Business News amp Financial News - The Wall Street Journal - WSJcom Web 06 Apr 2010 lthttponlinewsjcommdcpublicpage2_3022-autosaleshtmlautosalesEgt
12 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
Blue
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ers
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understand their buying habits Once he understood these buying habits he was
able to predict future trends and make correlations that directly affected the
product lines When the sales of lipstick edge up Esteacutee Lauder expands its lipstick
offerings to include new colors and new formulations and it even develops or
expands partner productsmdashsuch as lip conditioners lip liners brushes glosses and
plumpersmdashthat can enhance the lipstick experience13
The lesson here is that businesses canrsquot just draw the line at
understanding basic demographics of customers and market
segments instead businesses
bull Need to know customers well enough to identify buying
habits and predict patterns Know what motivates them
what discourages them what they want versus what they
need and what they can afford versus what they are willing to pay
bull Need to be proactive in conducting ongoing market research to get
this information and to cultivate relationships with customers by really
listening to customers through your own customer service channels
through social media monitoring and frequent surveys
bull Use this information to take advantage of timing to build relationships
and continue to meet the demands of customers before the demand is
actually voicedmdasha critical factor in satisfying customers and staying a cut
above the competition and forever relevant
5 Value your customersJust as important as understanding customers is valuing them Not only is it the
right thing to domdashbecause without them you wouldnrsquot existmdashbut customers
that feel as if their business is appreciated are more likely to become loyal brand
followers
In an industry rife with bankruptcies and layoffs that resulted in fewer flights
more cancellations and disgruntled passengers Southwest Airlines refused to
budge from its core beliefmdashthe value of customer service
ldquoThe mission of Southwest Airlines is dedication to the highest quality of
customer service delivered with a sense of warmth friendliness individual pride
and company spiritrdquo14
13 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
14 ldquoSouthwest Airlines - The Mission of Southwest Airlinesrdquo Southwest Airlines Web 10 Apr 2010
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The airline coped with the recession and past downturns by cutting costs where it
could demanding a consistent management style from employees and perhaps
most importantly it continued to invest in training programs for staff that
instilled and encouraged the positive attitude and customer focus the airline is
known formdasha program that requires $3 million in annual expenditures plus the
costs of upkeep and staffing of a 40000 square foot training terminal15
Customer service training was just the beginning While other airlines began to
search for every possible source of additional revenue like charging additional
fees for in-flight meals and tacking on services fees for checked baggage
Southwest continued to provide complimentary meals to certain ticket holders
and allowed all passengers to check two bags for free They refused to sacrifice
customer service for the bottom line While these may seem like small gestures
travelers appreciated them all the same After announcing it had seen a profit
throughout the recession and into the fourth quarter of 2009 its 37th straight
year of posting a profit
Southwest believes that it was able to maintain and grown business when other
airlines faltered based largely on these seemingly small gestures mdashgestures that
were once standard for all airlines but are now seen as extras in
the eyes of consumers16
This is not to say that Southwest wasnrsquot forced to take action to
reduce costs and seek revenue elsewhere The airline secured a
credit line froze certain hiring practices and implemented an
additional fee for unaccompanied minors and pets Southwest
strategically chose what to cut and where to charge extra in order
to stand behind its mission and in doing so filled a gap within the industry that
made customers feel valued and appreciated17
So what can your business do to get back to the basics of showing your customers
how much they mean to you Here are a few ideas
bull Make sure your customer service policy is in writing and easily accessible
to employees and customers on site and online This helps employees
know what is expected of them but also reassures customers of what
your business stands for and how they can expect to be treated
lthttpwwwsouthwestcomabout_swamissionhtmlint=GFOOTER-ABOUT-MISSIONgt15 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print16 Koenig David ldquoSouthwest Airlines Posts 4Q Full-Year Profit - ABC Newsrdquo ABCNewscom 21 Jan 2010 Web
10 Apr 2010 lthttpabcnewsgocomBusinesswireStoryid=9621566gt17 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print
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ers
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bull Give your employees authority to resolve customer service issues If
employees donrsquot have the power to make it right customer service
complaints are a moot point While not all employees are able to
change a process or a policy all employees should be able to make the
promise that someone will review the customerrsquos concern Employees
should also be given the ability to offer vouchers discounts free items
or replacement products as a gesture to show customers that their
happiness is important
bull Similarly know that happy employees equal happy customers Do what
you can to help employees to educate and train employees and to foster
a sense of pride in them Offering a sense of security when possible helps
toomdashit should be noted that Southwest has never not
once laid off an employee Ever
bull Develop a measurement of outstanding customer
service and reward employees who get it right
bull Listen to customers Donrsquot just wait for them to offer
up opinions or voice unhappiness make sure there are suggestion boxes
on site contact information on your Web site or a customer service-
specific phone number andor e-mail for assistance Adding virtual
customer service chats is an increasingly popular effort many retail
businesses are trying on for size too
bull Give a gift for no reason Thank-you notes are often hard to come by
these days let alone a personalized one from a business that simply
shows that someone took the time to say ldquoThanks for your business We
appreciate yourdquo When you can send a token of appreciation with this
note for added warm-fuzzy effects
bull Build relationships This part will come easy if you listen to your
customers and resolve issues by meeting the needs of your audiences
Once they see that your business values them and is invested in them
theyrsquoll be more likely to be engage through repeat purchases or positive
word of mouth and social media interactions
6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending
wherever possible But the recessionrsquos most successful businesses resisted this urge
Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos
right spending
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ers
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Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
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There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
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ers
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ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
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8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
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ers
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inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
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There are additional components that successful brands like Apple have honed in
on such as
bull RelevancymdashThey offer products and services that connect to what
audiences deem important
bull AuthenticitymdashThey deliver on the expectations of consumers while
creating a brand product and services that might be rivaled but
definitely not mimicked
bull Thought leadershipmdashThey simultaneously focus on the demands of the
industry and customers in the present while identifying and creating
solutions to the demands of the future
A solid brand canrsquot be built overnight but if thoughtful care is put into
building it your business will develop an asset that canrsquot easily be lost
with the stock marketmdashthe power of emotional connections created by
successful brands is priceless
2 Def ine your niche and adjust as necessaryCF Martin and Cotrade has been manufacturing instruments since
1833mdashthey are the worldrsquos oldest-surviving instrument maker
and the United Statesrsquo largest producer of acoustic guitars
Martin Guitarstrade as the brand is most commonly referred to in
the US is known for instruments that sound good and look
good Many of its instruments also have a price tag to match
That was however until the economy dipped5
Previously Martin had defined one of its niches as an elitist
group of musicians and collectors but in 2009 found that this niche stopped
buying at the rates they once did People stopped spending So Martin identified
a new nichemdashmusicians and discerning guitar enthusiasts on a budgetmdashand
created a new product a guitar with the tonal quality the manufacturer is known
for but with a
bare-bones design that skimped on decoration while saving on production costs
The resulting guitar the Series 1 retails for around $1000mdasha veritable steal in
the world of guitars The result Orders surged worldwide and the Series 1 has
been permanently added to Martinrsquos line of inventory6
5 Smith Kimberly ldquoCase Study Lessons From Martin Guitars Three Ways to Survive a Downturnrdquo MarketingProfs Marketing Resources for Marketing Professionals 26 Jan 2010 Web 05 Apr 2010 lthttpwwwmarketingprofscomcasestudy164gt
6 Smith Kimberly ldquoCase Study Lessons From Martin Guitars Three Ways to Survive a Downturnrdquo MarketingProfs Marketing Resources for Marketing Professionals 26 Jan 2010 Web 05 Apr 2010 lthttpwwwmarketingprofscomcasestudy164gt
Blue
Pap
ers
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ers
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Any business knows that its audience or its overall market needs to be defined
before any business or communications goals can be accomplished Itrsquos also known
that in offering or marketing products to a very specific segment a business or
particular product stands a better chance of success Itrsquos a successful business
though that realizes segmentations used to identify niches can change as the
priorities interests or needs of the individuals in that segment change These
businesses strategically build their products services and marketing plans to be
adaptable and to truly be of value and relevancy to customers no matter what
Allen Weiss founder of MarketingProfscom suggests beginning the
segmentation process by identifying a niche This can
be done by looking at the benefits offered by different
groups of customers and then separating them out based
on whether there are groups of customers who would care
about different clusters of these benefits7
Weiss then suggests basing segmentations off of usage
application and prior experience with the product category
brand loyalty buying situation and lifestyle8
ldquoYou will know that you have a good segmentation if the customers in the
different segments make tradeoffs differentlyrdquo says Weiss9
You also know your business has identified good segmentation and subsequent
niches if the segments are measurable and they are reachable by numerous
channels Good niches are sizeable and sustainable and often have needs that
arenrsquot being met by brands or products elsewhere
3 Know your industryRemember how just before the economy got really messy fuel prices skyrocketed
to record-setting highs So does Ford Motor Co In fact the entire automotive
industry took note as consumers abandoned gas-guzzling SUVs in droves for more
fuel-efficient compact cars and hybrids Foreign automakers for the first time
even shifted much of their focus on developing cars to meet this new demand
Recognizing a trend not just in consumer buying behavior but in the entire
industry Ford stepped up to the plate and became one of the first American
car companies to actively seek ways to reduce emissions and increase the fuel
7 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
8 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
9 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
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ers
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ers
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efficiency of its entire line up10
Additionally it has been speculated that the
grant money Ford was able to secure to explore
the technology required to make these efforts
possible provided a cushion that later aided them
in becoming the only car company to refuse bailout
money from the US governmentmdashdeeming it
unnecessary Indeed Ford sales in December of 2009
were up 335 percent from 200811
Knowing your businessrsquos industry isnrsquot about keeping up with the Joneses Itrsquos
about securing the information that will allow your business to offer competitive
products and services differentiate provide quality customer service select new
locations and learn from the mistakes of othersrsquo
To know your industry your overall marketing strategy should include plans
to monitor competitors and stay abreast of industry news through respected
industry publications blogs local and national news and participation in
professional associations Set up Googlereg alerts to monitor keywords or phrases
of your industry and the names of your tops competitors in addition of course to
your own name and team members
4 Understand your customersIn 2001 Leonard Lauder chairman of Esteacutee Lauder Companies noticed
somethingmdashlipstick sales were on the rise while the sales of other types of
cosmetics soured He watched this trend hold true over a course of a few months
as consumer spending dipped worldwide and developed a theory that has
since been dubbed by economists as the Lipstick Effect The theory asserts that
consumers donrsquot forgo luxury purchases in a recession or economic downtown
completely but rather they purchase smaller luxuries like designer lipstick Now
and after further research with the latest downturn economists say that the sale
of lipstick may actually be an indicator of the economy12
While interesting and it is interesting the theory is not the entire lesson of
Lauderrsquos original observation Lauder knew his customers well enough to
10 Walsh Dustin ldquoUS Needs to Value Manufacturing Base Then Rebuild It Bill Ford Saysrdquo Detroit News and Information - Crainrsquos Detroit Business 16 Feb 2010 Web 06 Apr 2010 lthttpwwwcrainsdetroitcomarticle20100216FREE100219906gt
11 ldquoAuto Sales - Markets Data Center - WSJcomrdquo Business News amp Financial News - The Wall Street Journal - WSJcom Web 06 Apr 2010 lthttponlinewsjcommdcpublicpage2_3022-autosaleshtmlautosalesEgt
12 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
Blue
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ers
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ers
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understand their buying habits Once he understood these buying habits he was
able to predict future trends and make correlations that directly affected the
product lines When the sales of lipstick edge up Esteacutee Lauder expands its lipstick
offerings to include new colors and new formulations and it even develops or
expands partner productsmdashsuch as lip conditioners lip liners brushes glosses and
plumpersmdashthat can enhance the lipstick experience13
The lesson here is that businesses canrsquot just draw the line at
understanding basic demographics of customers and market
segments instead businesses
bull Need to know customers well enough to identify buying
habits and predict patterns Know what motivates them
what discourages them what they want versus what they
need and what they can afford versus what they are willing to pay
bull Need to be proactive in conducting ongoing market research to get
this information and to cultivate relationships with customers by really
listening to customers through your own customer service channels
through social media monitoring and frequent surveys
bull Use this information to take advantage of timing to build relationships
and continue to meet the demands of customers before the demand is
actually voicedmdasha critical factor in satisfying customers and staying a cut
above the competition and forever relevant
5 Value your customersJust as important as understanding customers is valuing them Not only is it the
right thing to domdashbecause without them you wouldnrsquot existmdashbut customers
that feel as if their business is appreciated are more likely to become loyal brand
followers
In an industry rife with bankruptcies and layoffs that resulted in fewer flights
more cancellations and disgruntled passengers Southwest Airlines refused to
budge from its core beliefmdashthe value of customer service
ldquoThe mission of Southwest Airlines is dedication to the highest quality of
customer service delivered with a sense of warmth friendliness individual pride
and company spiritrdquo14
13 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
14 ldquoSouthwest Airlines - The Mission of Southwest Airlinesrdquo Southwest Airlines Web 10 Apr 2010
Blue
Pap
ers
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ers
copy 2010 4imprint Inc All rights reserved
The airline coped with the recession and past downturns by cutting costs where it
could demanding a consistent management style from employees and perhaps
most importantly it continued to invest in training programs for staff that
instilled and encouraged the positive attitude and customer focus the airline is
known formdasha program that requires $3 million in annual expenditures plus the
costs of upkeep and staffing of a 40000 square foot training terminal15
Customer service training was just the beginning While other airlines began to
search for every possible source of additional revenue like charging additional
fees for in-flight meals and tacking on services fees for checked baggage
Southwest continued to provide complimentary meals to certain ticket holders
and allowed all passengers to check two bags for free They refused to sacrifice
customer service for the bottom line While these may seem like small gestures
travelers appreciated them all the same After announcing it had seen a profit
throughout the recession and into the fourth quarter of 2009 its 37th straight
year of posting a profit
Southwest believes that it was able to maintain and grown business when other
airlines faltered based largely on these seemingly small gestures mdashgestures that
were once standard for all airlines but are now seen as extras in
the eyes of consumers16
This is not to say that Southwest wasnrsquot forced to take action to
reduce costs and seek revenue elsewhere The airline secured a
credit line froze certain hiring practices and implemented an
additional fee for unaccompanied minors and pets Southwest
strategically chose what to cut and where to charge extra in order
to stand behind its mission and in doing so filled a gap within the industry that
made customers feel valued and appreciated17
So what can your business do to get back to the basics of showing your customers
how much they mean to you Here are a few ideas
bull Make sure your customer service policy is in writing and easily accessible
to employees and customers on site and online This helps employees
know what is expected of them but also reassures customers of what
your business stands for and how they can expect to be treated
lthttpwwwsouthwestcomabout_swamissionhtmlint=GFOOTER-ABOUT-MISSIONgt15 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print16 Koenig David ldquoSouthwest Airlines Posts 4Q Full-Year Profit - ABC Newsrdquo ABCNewscom 21 Jan 2010 Web
10 Apr 2010 lthttpabcnewsgocomBusinesswireStoryid=9621566gt17 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print
Blue
Pap
ers
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ers
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bull Give your employees authority to resolve customer service issues If
employees donrsquot have the power to make it right customer service
complaints are a moot point While not all employees are able to
change a process or a policy all employees should be able to make the
promise that someone will review the customerrsquos concern Employees
should also be given the ability to offer vouchers discounts free items
or replacement products as a gesture to show customers that their
happiness is important
bull Similarly know that happy employees equal happy customers Do what
you can to help employees to educate and train employees and to foster
a sense of pride in them Offering a sense of security when possible helps
toomdashit should be noted that Southwest has never not
once laid off an employee Ever
bull Develop a measurement of outstanding customer
service and reward employees who get it right
bull Listen to customers Donrsquot just wait for them to offer
up opinions or voice unhappiness make sure there are suggestion boxes
on site contact information on your Web site or a customer service-
specific phone number andor e-mail for assistance Adding virtual
customer service chats is an increasingly popular effort many retail
businesses are trying on for size too
bull Give a gift for no reason Thank-you notes are often hard to come by
these days let alone a personalized one from a business that simply
shows that someone took the time to say ldquoThanks for your business We
appreciate yourdquo When you can send a token of appreciation with this
note for added warm-fuzzy effects
bull Build relationships This part will come easy if you listen to your
customers and resolve issues by meeting the needs of your audiences
Once they see that your business values them and is invested in them
theyrsquoll be more likely to be engage through repeat purchases or positive
word of mouth and social media interactions
6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending
wherever possible But the recessionrsquos most successful businesses resisted this urge
Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos
right spending
Blue
Pap
ers
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ers
copy 2010 4imprint Inc All rights reserved
Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
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ers
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There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
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ers
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ers
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ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
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ers
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8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
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inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
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Any business knows that its audience or its overall market needs to be defined
before any business or communications goals can be accomplished Itrsquos also known
that in offering or marketing products to a very specific segment a business or
particular product stands a better chance of success Itrsquos a successful business
though that realizes segmentations used to identify niches can change as the
priorities interests or needs of the individuals in that segment change These
businesses strategically build their products services and marketing plans to be
adaptable and to truly be of value and relevancy to customers no matter what
Allen Weiss founder of MarketingProfscom suggests beginning the
segmentation process by identifying a niche This can
be done by looking at the benefits offered by different
groups of customers and then separating them out based
on whether there are groups of customers who would care
about different clusters of these benefits7
Weiss then suggests basing segmentations off of usage
application and prior experience with the product category
brand loyalty buying situation and lifestyle8
ldquoYou will know that you have a good segmentation if the customers in the
different segments make tradeoffs differentlyrdquo says Weiss9
You also know your business has identified good segmentation and subsequent
niches if the segments are measurable and they are reachable by numerous
channels Good niches are sizeable and sustainable and often have needs that
arenrsquot being met by brands or products elsewhere
3 Know your industryRemember how just before the economy got really messy fuel prices skyrocketed
to record-setting highs So does Ford Motor Co In fact the entire automotive
industry took note as consumers abandoned gas-guzzling SUVs in droves for more
fuel-efficient compact cars and hybrids Foreign automakers for the first time
even shifted much of their focus on developing cars to meet this new demand
Recognizing a trend not just in consumer buying behavior but in the entire
industry Ford stepped up to the plate and became one of the first American
car companies to actively seek ways to reduce emissions and increase the fuel
7 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
8 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
9 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt
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efficiency of its entire line up10
Additionally it has been speculated that the
grant money Ford was able to secure to explore
the technology required to make these efforts
possible provided a cushion that later aided them
in becoming the only car company to refuse bailout
money from the US governmentmdashdeeming it
unnecessary Indeed Ford sales in December of 2009
were up 335 percent from 200811
Knowing your businessrsquos industry isnrsquot about keeping up with the Joneses Itrsquos
about securing the information that will allow your business to offer competitive
products and services differentiate provide quality customer service select new
locations and learn from the mistakes of othersrsquo
To know your industry your overall marketing strategy should include plans
to monitor competitors and stay abreast of industry news through respected
industry publications blogs local and national news and participation in
professional associations Set up Googlereg alerts to monitor keywords or phrases
of your industry and the names of your tops competitors in addition of course to
your own name and team members
4 Understand your customersIn 2001 Leonard Lauder chairman of Esteacutee Lauder Companies noticed
somethingmdashlipstick sales were on the rise while the sales of other types of
cosmetics soured He watched this trend hold true over a course of a few months
as consumer spending dipped worldwide and developed a theory that has
since been dubbed by economists as the Lipstick Effect The theory asserts that
consumers donrsquot forgo luxury purchases in a recession or economic downtown
completely but rather they purchase smaller luxuries like designer lipstick Now
and after further research with the latest downturn economists say that the sale
of lipstick may actually be an indicator of the economy12
While interesting and it is interesting the theory is not the entire lesson of
Lauderrsquos original observation Lauder knew his customers well enough to
10 Walsh Dustin ldquoUS Needs to Value Manufacturing Base Then Rebuild It Bill Ford Saysrdquo Detroit News and Information - Crainrsquos Detroit Business 16 Feb 2010 Web 06 Apr 2010 lthttpwwwcrainsdetroitcomarticle20100216FREE100219906gt
11 ldquoAuto Sales - Markets Data Center - WSJcomrdquo Business News amp Financial News - The Wall Street Journal - WSJcom Web 06 Apr 2010 lthttponlinewsjcommdcpublicpage2_3022-autosaleshtmlautosalesEgt
12 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
Blue
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ers
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ers
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understand their buying habits Once he understood these buying habits he was
able to predict future trends and make correlations that directly affected the
product lines When the sales of lipstick edge up Esteacutee Lauder expands its lipstick
offerings to include new colors and new formulations and it even develops or
expands partner productsmdashsuch as lip conditioners lip liners brushes glosses and
plumpersmdashthat can enhance the lipstick experience13
The lesson here is that businesses canrsquot just draw the line at
understanding basic demographics of customers and market
segments instead businesses
bull Need to know customers well enough to identify buying
habits and predict patterns Know what motivates them
what discourages them what they want versus what they
need and what they can afford versus what they are willing to pay
bull Need to be proactive in conducting ongoing market research to get
this information and to cultivate relationships with customers by really
listening to customers through your own customer service channels
through social media monitoring and frequent surveys
bull Use this information to take advantage of timing to build relationships
and continue to meet the demands of customers before the demand is
actually voicedmdasha critical factor in satisfying customers and staying a cut
above the competition and forever relevant
5 Value your customersJust as important as understanding customers is valuing them Not only is it the
right thing to domdashbecause without them you wouldnrsquot existmdashbut customers
that feel as if their business is appreciated are more likely to become loyal brand
followers
In an industry rife with bankruptcies and layoffs that resulted in fewer flights
more cancellations and disgruntled passengers Southwest Airlines refused to
budge from its core beliefmdashthe value of customer service
ldquoThe mission of Southwest Airlines is dedication to the highest quality of
customer service delivered with a sense of warmth friendliness individual pride
and company spiritrdquo14
13 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
14 ldquoSouthwest Airlines - The Mission of Southwest Airlinesrdquo Southwest Airlines Web 10 Apr 2010
Blue
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ers
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ers
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The airline coped with the recession and past downturns by cutting costs where it
could demanding a consistent management style from employees and perhaps
most importantly it continued to invest in training programs for staff that
instilled and encouraged the positive attitude and customer focus the airline is
known formdasha program that requires $3 million in annual expenditures plus the
costs of upkeep and staffing of a 40000 square foot training terminal15
Customer service training was just the beginning While other airlines began to
search for every possible source of additional revenue like charging additional
fees for in-flight meals and tacking on services fees for checked baggage
Southwest continued to provide complimentary meals to certain ticket holders
and allowed all passengers to check two bags for free They refused to sacrifice
customer service for the bottom line While these may seem like small gestures
travelers appreciated them all the same After announcing it had seen a profit
throughout the recession and into the fourth quarter of 2009 its 37th straight
year of posting a profit
Southwest believes that it was able to maintain and grown business when other
airlines faltered based largely on these seemingly small gestures mdashgestures that
were once standard for all airlines but are now seen as extras in
the eyes of consumers16
This is not to say that Southwest wasnrsquot forced to take action to
reduce costs and seek revenue elsewhere The airline secured a
credit line froze certain hiring practices and implemented an
additional fee for unaccompanied minors and pets Southwest
strategically chose what to cut and where to charge extra in order
to stand behind its mission and in doing so filled a gap within the industry that
made customers feel valued and appreciated17
So what can your business do to get back to the basics of showing your customers
how much they mean to you Here are a few ideas
bull Make sure your customer service policy is in writing and easily accessible
to employees and customers on site and online This helps employees
know what is expected of them but also reassures customers of what
your business stands for and how they can expect to be treated
lthttpwwwsouthwestcomabout_swamissionhtmlint=GFOOTER-ABOUT-MISSIONgt15 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print16 Koenig David ldquoSouthwest Airlines Posts 4Q Full-Year Profit - ABC Newsrdquo ABCNewscom 21 Jan 2010 Web
10 Apr 2010 lthttpabcnewsgocomBusinesswireStoryid=9621566gt17 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print
Blue
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ers
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ers
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bull Give your employees authority to resolve customer service issues If
employees donrsquot have the power to make it right customer service
complaints are a moot point While not all employees are able to
change a process or a policy all employees should be able to make the
promise that someone will review the customerrsquos concern Employees
should also be given the ability to offer vouchers discounts free items
or replacement products as a gesture to show customers that their
happiness is important
bull Similarly know that happy employees equal happy customers Do what
you can to help employees to educate and train employees and to foster
a sense of pride in them Offering a sense of security when possible helps
toomdashit should be noted that Southwest has never not
once laid off an employee Ever
bull Develop a measurement of outstanding customer
service and reward employees who get it right
bull Listen to customers Donrsquot just wait for them to offer
up opinions or voice unhappiness make sure there are suggestion boxes
on site contact information on your Web site or a customer service-
specific phone number andor e-mail for assistance Adding virtual
customer service chats is an increasingly popular effort many retail
businesses are trying on for size too
bull Give a gift for no reason Thank-you notes are often hard to come by
these days let alone a personalized one from a business that simply
shows that someone took the time to say ldquoThanks for your business We
appreciate yourdquo When you can send a token of appreciation with this
note for added warm-fuzzy effects
bull Build relationships This part will come easy if you listen to your
customers and resolve issues by meeting the needs of your audiences
Once they see that your business values them and is invested in them
theyrsquoll be more likely to be engage through repeat purchases or positive
word of mouth and social media interactions
6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending
wherever possible But the recessionrsquos most successful businesses resisted this urge
Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos
right spending
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
Blue
Pap
ers
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Pap
ers
copy 2010 4imprint Inc All rights reserved
efficiency of its entire line up10
Additionally it has been speculated that the
grant money Ford was able to secure to explore
the technology required to make these efforts
possible provided a cushion that later aided them
in becoming the only car company to refuse bailout
money from the US governmentmdashdeeming it
unnecessary Indeed Ford sales in December of 2009
were up 335 percent from 200811
Knowing your businessrsquos industry isnrsquot about keeping up with the Joneses Itrsquos
about securing the information that will allow your business to offer competitive
products and services differentiate provide quality customer service select new
locations and learn from the mistakes of othersrsquo
To know your industry your overall marketing strategy should include plans
to monitor competitors and stay abreast of industry news through respected
industry publications blogs local and national news and participation in
professional associations Set up Googlereg alerts to monitor keywords or phrases
of your industry and the names of your tops competitors in addition of course to
your own name and team members
4 Understand your customersIn 2001 Leonard Lauder chairman of Esteacutee Lauder Companies noticed
somethingmdashlipstick sales were on the rise while the sales of other types of
cosmetics soured He watched this trend hold true over a course of a few months
as consumer spending dipped worldwide and developed a theory that has
since been dubbed by economists as the Lipstick Effect The theory asserts that
consumers donrsquot forgo luxury purchases in a recession or economic downtown
completely but rather they purchase smaller luxuries like designer lipstick Now
and after further research with the latest downturn economists say that the sale
of lipstick may actually be an indicator of the economy12
While interesting and it is interesting the theory is not the entire lesson of
Lauderrsquos original observation Lauder knew his customers well enough to
10 Walsh Dustin ldquoUS Needs to Value Manufacturing Base Then Rebuild It Bill Ford Saysrdquo Detroit News and Information - Crainrsquos Detroit Business 16 Feb 2010 Web 06 Apr 2010 lthttpwwwcrainsdetroitcomarticle20100216FREE100219906gt
11 ldquoAuto Sales - Markets Data Center - WSJcomrdquo Business News amp Financial News - The Wall Street Journal - WSJcom Web 06 Apr 2010 lthttponlinewsjcommdcpublicpage2_3022-autosaleshtmlautosalesEgt
12 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
understand their buying habits Once he understood these buying habits he was
able to predict future trends and make correlations that directly affected the
product lines When the sales of lipstick edge up Esteacutee Lauder expands its lipstick
offerings to include new colors and new formulations and it even develops or
expands partner productsmdashsuch as lip conditioners lip liners brushes glosses and
plumpersmdashthat can enhance the lipstick experience13
The lesson here is that businesses canrsquot just draw the line at
understanding basic demographics of customers and market
segments instead businesses
bull Need to know customers well enough to identify buying
habits and predict patterns Know what motivates them
what discourages them what they want versus what they
need and what they can afford versus what they are willing to pay
bull Need to be proactive in conducting ongoing market research to get
this information and to cultivate relationships with customers by really
listening to customers through your own customer service channels
through social media monitoring and frequent surveys
bull Use this information to take advantage of timing to build relationships
and continue to meet the demands of customers before the demand is
actually voicedmdasha critical factor in satisfying customers and staying a cut
above the competition and forever relevant
5 Value your customersJust as important as understanding customers is valuing them Not only is it the
right thing to domdashbecause without them you wouldnrsquot existmdashbut customers
that feel as if their business is appreciated are more likely to become loyal brand
followers
In an industry rife with bankruptcies and layoffs that resulted in fewer flights
more cancellations and disgruntled passengers Southwest Airlines refused to
budge from its core beliefmdashthe value of customer service
ldquoThe mission of Southwest Airlines is dedication to the highest quality of
customer service delivered with a sense of warmth friendliness individual pride
and company spiritrdquo14
13 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
14 ldquoSouthwest Airlines - The Mission of Southwest Airlinesrdquo Southwest Airlines Web 10 Apr 2010
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
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ers
copy 2010 4imprint Inc All rights reserved
The airline coped with the recession and past downturns by cutting costs where it
could demanding a consistent management style from employees and perhaps
most importantly it continued to invest in training programs for staff that
instilled and encouraged the positive attitude and customer focus the airline is
known formdasha program that requires $3 million in annual expenditures plus the
costs of upkeep and staffing of a 40000 square foot training terminal15
Customer service training was just the beginning While other airlines began to
search for every possible source of additional revenue like charging additional
fees for in-flight meals and tacking on services fees for checked baggage
Southwest continued to provide complimentary meals to certain ticket holders
and allowed all passengers to check two bags for free They refused to sacrifice
customer service for the bottom line While these may seem like small gestures
travelers appreciated them all the same After announcing it had seen a profit
throughout the recession and into the fourth quarter of 2009 its 37th straight
year of posting a profit
Southwest believes that it was able to maintain and grown business when other
airlines faltered based largely on these seemingly small gestures mdashgestures that
were once standard for all airlines but are now seen as extras in
the eyes of consumers16
This is not to say that Southwest wasnrsquot forced to take action to
reduce costs and seek revenue elsewhere The airline secured a
credit line froze certain hiring practices and implemented an
additional fee for unaccompanied minors and pets Southwest
strategically chose what to cut and where to charge extra in order
to stand behind its mission and in doing so filled a gap within the industry that
made customers feel valued and appreciated17
So what can your business do to get back to the basics of showing your customers
how much they mean to you Here are a few ideas
bull Make sure your customer service policy is in writing and easily accessible
to employees and customers on site and online This helps employees
know what is expected of them but also reassures customers of what
your business stands for and how they can expect to be treated
lthttpwwwsouthwestcomabout_swamissionhtmlint=GFOOTER-ABOUT-MISSIONgt15 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print16 Koenig David ldquoSouthwest Airlines Posts 4Q Full-Year Profit - ABC Newsrdquo ABCNewscom 21 Jan 2010 Web
10 Apr 2010 lthttpabcnewsgocomBusinesswireStoryid=9621566gt17 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print
Blue
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ers
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ers
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bull Give your employees authority to resolve customer service issues If
employees donrsquot have the power to make it right customer service
complaints are a moot point While not all employees are able to
change a process or a policy all employees should be able to make the
promise that someone will review the customerrsquos concern Employees
should also be given the ability to offer vouchers discounts free items
or replacement products as a gesture to show customers that their
happiness is important
bull Similarly know that happy employees equal happy customers Do what
you can to help employees to educate and train employees and to foster
a sense of pride in them Offering a sense of security when possible helps
toomdashit should be noted that Southwest has never not
once laid off an employee Ever
bull Develop a measurement of outstanding customer
service and reward employees who get it right
bull Listen to customers Donrsquot just wait for them to offer
up opinions or voice unhappiness make sure there are suggestion boxes
on site contact information on your Web site or a customer service-
specific phone number andor e-mail for assistance Adding virtual
customer service chats is an increasingly popular effort many retail
businesses are trying on for size too
bull Give a gift for no reason Thank-you notes are often hard to come by
these days let alone a personalized one from a business that simply
shows that someone took the time to say ldquoThanks for your business We
appreciate yourdquo When you can send a token of appreciation with this
note for added warm-fuzzy effects
bull Build relationships This part will come easy if you listen to your
customers and resolve issues by meeting the needs of your audiences
Once they see that your business values them and is invested in them
theyrsquoll be more likely to be engage through repeat purchases or positive
word of mouth and social media interactions
6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending
wherever possible But the recessionrsquos most successful businesses resisted this urge
Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos
right spending
Blue
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ers
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ers
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Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
Blue
Pap
ers
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ers
copy 2010 4imprint Inc All rights reserved
There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
understand their buying habits Once he understood these buying habits he was
able to predict future trends and make correlations that directly affected the
product lines When the sales of lipstick edge up Esteacutee Lauder expands its lipstick
offerings to include new colors and new formulations and it even develops or
expands partner productsmdashsuch as lip conditioners lip liners brushes glosses and
plumpersmdashthat can enhance the lipstick experience13
The lesson here is that businesses canrsquot just draw the line at
understanding basic demographics of customers and market
segments instead businesses
bull Need to know customers well enough to identify buying
habits and predict patterns Know what motivates them
what discourages them what they want versus what they
need and what they can afford versus what they are willing to pay
bull Need to be proactive in conducting ongoing market research to get
this information and to cultivate relationships with customers by really
listening to customers through your own customer service channels
through social media monitoring and frequent surveys
bull Use this information to take advantage of timing to build relationships
and continue to meet the demands of customers before the demand is
actually voicedmdasha critical factor in satisfying customers and staying a cut
above the competition and forever relevant
5 Value your customersJust as important as understanding customers is valuing them Not only is it the
right thing to domdashbecause without them you wouldnrsquot existmdashbut customers
that feel as if their business is appreciated are more likely to become loyal brand
followers
In an industry rife with bankruptcies and layoffs that resulted in fewer flights
more cancellations and disgruntled passengers Southwest Airlines refused to
budge from its core beliefmdashthe value of customer service
ldquoThe mission of Southwest Airlines is dedication to the highest quality of
customer service delivered with a sense of warmth friendliness individual pride
and company spiritrdquo14
13 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt
14 ldquoSouthwest Airlines - The Mission of Southwest Airlinesrdquo Southwest Airlines Web 10 Apr 2010
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
The airline coped with the recession and past downturns by cutting costs where it
could demanding a consistent management style from employees and perhaps
most importantly it continued to invest in training programs for staff that
instilled and encouraged the positive attitude and customer focus the airline is
known formdasha program that requires $3 million in annual expenditures plus the
costs of upkeep and staffing of a 40000 square foot training terminal15
Customer service training was just the beginning While other airlines began to
search for every possible source of additional revenue like charging additional
fees for in-flight meals and tacking on services fees for checked baggage
Southwest continued to provide complimentary meals to certain ticket holders
and allowed all passengers to check two bags for free They refused to sacrifice
customer service for the bottom line While these may seem like small gestures
travelers appreciated them all the same After announcing it had seen a profit
throughout the recession and into the fourth quarter of 2009 its 37th straight
year of posting a profit
Southwest believes that it was able to maintain and grown business when other
airlines faltered based largely on these seemingly small gestures mdashgestures that
were once standard for all airlines but are now seen as extras in
the eyes of consumers16
This is not to say that Southwest wasnrsquot forced to take action to
reduce costs and seek revenue elsewhere The airline secured a
credit line froze certain hiring practices and implemented an
additional fee for unaccompanied minors and pets Southwest
strategically chose what to cut and where to charge extra in order
to stand behind its mission and in doing so filled a gap within the industry that
made customers feel valued and appreciated17
So what can your business do to get back to the basics of showing your customers
how much they mean to you Here are a few ideas
bull Make sure your customer service policy is in writing and easily accessible
to employees and customers on site and online This helps employees
know what is expected of them but also reassures customers of what
your business stands for and how they can expect to be treated
lthttpwwwsouthwestcomabout_swamissionhtmlint=GFOOTER-ABOUT-MISSIONgt15 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print16 Koenig David ldquoSouthwest Airlines Posts 4Q Full-Year Profit - ABC Newsrdquo ABCNewscom 21 Jan 2010 Web
10 Apr 2010 lthttpabcnewsgocomBusinesswireStoryid=9621566gt17 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
bull Give your employees authority to resolve customer service issues If
employees donrsquot have the power to make it right customer service
complaints are a moot point While not all employees are able to
change a process or a policy all employees should be able to make the
promise that someone will review the customerrsquos concern Employees
should also be given the ability to offer vouchers discounts free items
or replacement products as a gesture to show customers that their
happiness is important
bull Similarly know that happy employees equal happy customers Do what
you can to help employees to educate and train employees and to foster
a sense of pride in them Offering a sense of security when possible helps
toomdashit should be noted that Southwest has never not
once laid off an employee Ever
bull Develop a measurement of outstanding customer
service and reward employees who get it right
bull Listen to customers Donrsquot just wait for them to offer
up opinions or voice unhappiness make sure there are suggestion boxes
on site contact information on your Web site or a customer service-
specific phone number andor e-mail for assistance Adding virtual
customer service chats is an increasingly popular effort many retail
businesses are trying on for size too
bull Give a gift for no reason Thank-you notes are often hard to come by
these days let alone a personalized one from a business that simply
shows that someone took the time to say ldquoThanks for your business We
appreciate yourdquo When you can send a token of appreciation with this
note for added warm-fuzzy effects
bull Build relationships This part will come easy if you listen to your
customers and resolve issues by meeting the needs of your audiences
Once they see that your business values them and is invested in them
theyrsquoll be more likely to be engage through repeat purchases or positive
word of mouth and social media interactions
6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending
wherever possible But the recessionrsquos most successful businesses resisted this urge
Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos
right spending
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
The airline coped with the recession and past downturns by cutting costs where it
could demanding a consistent management style from employees and perhaps
most importantly it continued to invest in training programs for staff that
instilled and encouraged the positive attitude and customer focus the airline is
known formdasha program that requires $3 million in annual expenditures plus the
costs of upkeep and staffing of a 40000 square foot training terminal15
Customer service training was just the beginning While other airlines began to
search for every possible source of additional revenue like charging additional
fees for in-flight meals and tacking on services fees for checked baggage
Southwest continued to provide complimentary meals to certain ticket holders
and allowed all passengers to check two bags for free They refused to sacrifice
customer service for the bottom line While these may seem like small gestures
travelers appreciated them all the same After announcing it had seen a profit
throughout the recession and into the fourth quarter of 2009 its 37th straight
year of posting a profit
Southwest believes that it was able to maintain and grown business when other
airlines faltered based largely on these seemingly small gestures mdashgestures that
were once standard for all airlines but are now seen as extras in
the eyes of consumers16
This is not to say that Southwest wasnrsquot forced to take action to
reduce costs and seek revenue elsewhere The airline secured a
credit line froze certain hiring practices and implemented an
additional fee for unaccompanied minors and pets Southwest
strategically chose what to cut and where to charge extra in order
to stand behind its mission and in doing so filled a gap within the industry that
made customers feel valued and appreciated17
So what can your business do to get back to the basics of showing your customers
how much they mean to you Here are a few ideas
bull Make sure your customer service policy is in writing and easily accessible
to employees and customers on site and online This helps employees
know what is expected of them but also reassures customers of what
your business stands for and how they can expect to be treated
lthttpwwwsouthwestcomabout_swamissionhtmlint=GFOOTER-ABOUT-MISSIONgt15 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print16 Koenig David ldquoSouthwest Airlines Posts 4Q Full-Year Profit - ABC Newsrdquo ABCNewscom 21 Jan 2010 Web
10 Apr 2010 lthttpabcnewsgocomBusinesswireStoryid=9621566gt17 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
bull Give your employees authority to resolve customer service issues If
employees donrsquot have the power to make it right customer service
complaints are a moot point While not all employees are able to
change a process or a policy all employees should be able to make the
promise that someone will review the customerrsquos concern Employees
should also be given the ability to offer vouchers discounts free items
or replacement products as a gesture to show customers that their
happiness is important
bull Similarly know that happy employees equal happy customers Do what
you can to help employees to educate and train employees and to foster
a sense of pride in them Offering a sense of security when possible helps
toomdashit should be noted that Southwest has never not
once laid off an employee Ever
bull Develop a measurement of outstanding customer
service and reward employees who get it right
bull Listen to customers Donrsquot just wait for them to offer
up opinions or voice unhappiness make sure there are suggestion boxes
on site contact information on your Web site or a customer service-
specific phone number andor e-mail for assistance Adding virtual
customer service chats is an increasingly popular effort many retail
businesses are trying on for size too
bull Give a gift for no reason Thank-you notes are often hard to come by
these days let alone a personalized one from a business that simply
shows that someone took the time to say ldquoThanks for your business We
appreciate yourdquo When you can send a token of appreciation with this
note for added warm-fuzzy effects
bull Build relationships This part will come easy if you listen to your
customers and resolve issues by meeting the needs of your audiences
Once they see that your business values them and is invested in them
theyrsquoll be more likely to be engage through repeat purchases or positive
word of mouth and social media interactions
6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending
wherever possible But the recessionrsquos most successful businesses resisted this urge
Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos
right spending
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
bull Give your employees authority to resolve customer service issues If
employees donrsquot have the power to make it right customer service
complaints are a moot point While not all employees are able to
change a process or a policy all employees should be able to make the
promise that someone will review the customerrsquos concern Employees
should also be given the ability to offer vouchers discounts free items
or replacement products as a gesture to show customers that their
happiness is important
bull Similarly know that happy employees equal happy customers Do what
you can to help employees to educate and train employees and to foster
a sense of pride in them Offering a sense of security when possible helps
toomdashit should be noted that Southwest has never not
once laid off an employee Ever
bull Develop a measurement of outstanding customer
service and reward employees who get it right
bull Listen to customers Donrsquot just wait for them to offer
up opinions or voice unhappiness make sure there are suggestion boxes
on site contact information on your Web site or a customer service-
specific phone number andor e-mail for assistance Adding virtual
customer service chats is an increasingly popular effort many retail
businesses are trying on for size too
bull Give a gift for no reason Thank-you notes are often hard to come by
these days let alone a personalized one from a business that simply
shows that someone took the time to say ldquoThanks for your business We
appreciate yourdquo When you can send a token of appreciation with this
note for added warm-fuzzy effects
bull Build relationships This part will come easy if you listen to your
customers and resolve issues by meeting the needs of your audiences
Once they see that your business values them and is invested in them
theyrsquoll be more likely to be engage through repeat purchases or positive
word of mouth and social media interactions
6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending
wherever possible But the recessionrsquos most successful businesses resisted this urge
Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos
right spending
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
Not just willy-nilly spending though Strategic spending Cutting back in certain
areas and reallocating funds to invest in ideas that generate new income and
position business for a recovered economy
Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker
Pure Digital Technologies Inc for $590 million in March of 2009 followed by a
$34 billion offer for video conference company Tandberg ASA in September
Then it opened up its wallet again in October to snag Starent Networks Corp
a wireless equipment manufacturer for $29 billion Whatrsquos
more Cisco expanded its internal start-ups too recognizing
the potential to generate $1 billion per year Thatrsquos some major
spending for a recession yet Ciscorsquos profit rose 23 percent by
2010 and stock went up 53 percent18
Robert Lloyd senior vice president of Cisco shares that economic downturns
often provide immense opportunity While everyone else is cutting back and
saving businesses that have the courage to continue to invest in innovation
can do so with relatively little competition or with little to lose Additionally
businesses with the courage stand to take advantage of a new market share that
didnrsquot exist before but was created with the new economic situation19
ldquoIt takes the courage to make decisions that perhaps good economic times allow
us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut
but to continue to buildrdquo
Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly
where the growth opportunities are especially in times when sales and leads
begin to cool20
ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo
says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe
double-down in those areas that just make sense And you donrsquot get distracted
with the view that everythingrsquos about cuttingrdquo21
18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt
19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
20 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
21 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
There are other efforts businesses can take to create an environment that fosters innovation in any economic climate
bull Leadership should expect and support creative thinking Without support
from the top down employees may lack motivation to seek the next big
idea and the funds that are often required of innovation may be hard
pressed to find if not allocated or approved by the C-Suite
bull Understand that perfect is the enemy of innovation Employees need to
know that not every idea is going to work and thatrsquos okay Demanding
perfection in each new idea will make people less likely to create and
unwilling to take risks for fear of failure
bull Know that innovation is a team effort even after the
support from leadership is secured Consider holding team
brainstorming sessions on a regular basis to share and build
off of ideas that could lead to better processes products or
services or new ones altogether
bull Encourage professional development in a variety of fields
Donrsquot limit learning to strictly areas that relate directly to
an employeersquos job Allow them to explore and expand other
skills sets that broaden experiences and offer an alternative
viewpoint or a new knowledge base Well-rounded employees that have
a wider well to draw from hold the potential for greater innovation
The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether
7 Be indispensible In good times the economy can support a number of different businesses offering
the same services and products but in not-so-good times the environment can
shift to one of too many businesses and not enough customers Itrsquos the businesses
that become indispensible to the market and to its customers that will make it
through the gamut of economic climates like Ford Cisco Southwest and others
have done
Bestselling author and marketing expert Seth Godin explains in his book
ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves
indispensable in order to survive in the new post-recession economy
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
ldquoWe can all agree that the worker who puts widget A into widget B all day is a
factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the
same insurance form every day who plugs numbers into a spreadsheet every day
is a factory worker as well All of these jobs can be taught from manuals And
as soon as a job can be written down in a manual you can find someone else to
perform the task more cheaplyrdquo22
While his book is aimed at the individual his ideas really do transcend to
businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers
Innovation understanding customers knowing the industry and conducting
ongoing evaluation of customer demand all help to make a business
indispensible Doing so will provide the knowledge and resources necessary to
offer products and services customers simply cannot live withoutmdasheven when
they begin to spend less elsewhere
To make your business indispensable consider taking the following initiatives
bull Be dependablemdashBy becoming reliable a business is likely to find
customers and clients who return because
they have come to count on you
bull Stay connectedmdashKeep in touch with
customers and clients regularly Personal
notes are nice but even regular direct
mailings or opt-in e-mail marketing counts
Remind customers and clients that you are
there and why they do business with you
bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition
like other factors discussed in this paper are subject to change based on
the economy competition or changing consumer habits Revaluate this
proposition to determine if itrsquos the message that needs to change or the
product itself
bull Be different be the best and dominate the market when things are
good so yoursquore the business people will come back to when the climate
changes
22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings
true A businessrsquos employees are important players in its success and itrsquos important
that they feel valued secure and engaged
If staff cuts are inevitable businesses need to be mindful of the morale of those
still hard at work As mentioned previously happy employees equal happy
customers and customers are ultimately the driving force that determines success
or failure in a recession
Additionally a recent survey conducted by workforce solutions provider Kelly
Services found that businesses with positive management strong morale and
active communications have succeeded in making their workforce more engaged
and more loyal in spite of the uncertainty caused by falling profits and layoffs23
Involve staff by being as open and honest as possible about the financial situation
of the businessmdashbe sure to always present this information with strategic plans
for moving forward which will help focus everyonersquos efforts and quell uneasiness
if the outlook isnrsquot too rosy
Be sure that staff members are shown the impact of their work on the entire
businessrsquos bottom line This helps foster a sense of pride but also can serve
to reiterate the importance of an employeersquos role which should boost
motivation and morale
Lastly reward staff as a way of involving them Reward success with small
gifts like gift cards or branded items or larger gifts like bonuses or extra
vacation time Also make sure that your business is creating opportunities
for everyone to learn from failures Focus on what the business is doing to
ensure a different outcome next time or how your business is recovering
from a failure Doing so will help foster innovation as discussed previously
and it shows employees that there is always value in their efforts
9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and
running with it It survived the economic downturn of the dot-com bust in 2001
and then took those lessons learned and applied them more recently with the
knowledge that the economic pendulum swings both ways You always have the
power to change a situation and knowing that everything is temporary should
23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt
Blue
Pap
ers
copy 2010 4imprint Inc All rights reserved
inspire your business to act thoughtfully and to aggressively stick to optimism in
rougher times
ldquoThe solutions that win over consumers today may well be the ones they hold
onto when the pendulum swings backrdquo suggests James Moed an economic
strategist24
Looking at business from this perspective may also provide an equally optimistic
employee morale or perceived customer service by reiterating your dependability
to customersmdashldquoWe will always be here for yourdquo
So if your businessrsquos sales slouch or the demand slows keep in mind what every
successful business of the recession did not domdashthey did not stop in their tracks
and throw up their arms in surrender Instead they played the hand they were
dealt by knowing that things will change as they always have so itrsquos best to be
strategic now in order to prepare for what lies ahead
10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea
While being mindful of the basic b-school tactics of establishing a business yours
will be better prepared for looking around the corner and aheadmdashwhether it is
sunny skies or rainy storm clouds
These ten tips have hopefully provided some inspiration for
getting back to basics and moving forward with an aim for
success and the need for sustainability The recessionrsquos success
stories were thoughtful about their brands their products
and their people long before the recession hit When it did
hit they didnrsquot change much They did what they knew
worked They found victory in preparation and so can you
24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt