Managing People When Times Are Bad

As a person that has gone through many formal (e.g. MBA) and informal training, I realize that very few teach us how to manage the business in a downturn. Turn open the newspaper and you'll find talks advocating "how to build a brand that lasts", "how to increase sales easily" etc. Most of them are talking about how to do things in a normal economy.

But we know that currently the economy, especially Singapore, is in decline. There is no growth in the July to September 2013 Quarter. In short, hang cheng pai or 行情坏！

In bad times, here are the 5 things you must do to manage your team:

1. Need not use money as a motivator - because everyone is cutting bonuses, if you just maintain last year's bonus, you're already paying higher than market! 
2. Leadership is most critical. In good times, even if you have a lousy or absent leader, the business will still grow. But now if your managers are a little ineffective, you can see all the ill effects in the business. Like quality failure, customers payment not collected, etc. So it is now critical that all MDs, CEOs, GMs, Directors and Managers be MORE AUTHORITATIVE and LESS DEMOCRATIC. Because if you act based on democratic consensus, nothing will be done! It is human nature to procrastinate, so you as the leader must lead and push for things to happen! 
3. People must be LED to change and Managers must Manage Change. Set up a Change Management Department and leave no stones unturned. Change all things that are not working. Including clothing. 
4. Morale, Energy and Enthusiasm will be most important. Because morale is naturally sinking day by day, the manager must make it his job to boost moral everyday.
5. INSPIRE People to Do Their Best is a MUST. Your team will be no better than the inspiration you gave them. But inspiration is not about talk but action. Actually there are 8 ways to inspire people. Now it's the time to take real action... 

By Andy Ng of Asia Trainers, details at www.asiatrainers.com