Be a Good Manager ......

Not getting this information sent to you directly? Sign up for your FREE monthly Smartmanager newsletter today.   Sign up now! 
-------------------------------------------------------------

How to Be a Good Manager in a Bad Economy

Management Focus Shifts in a Bad Economy

Good managers inherently understand that solid management strategy doesn’t change with the economic climate. Good management will always be good management. However, a bad economy mandates a shift in focus while continuing to use tested, proven good management principles.
During a strong economy, management tends to focus on some or all of the following areas.

• Increasing profits
• Growth
• Improved and expanded technology
• Securing new customers
• Hiring increased, qualified employees
• New, better products and services

While enduring a bad economy, many companies must change their focus to some of the following concerns.

• Maintaining the current customer base, with a minimum of defections
• Better or lower pricing of products and services
• Operating efficiently with fewer employees
• Reducing expenses across the board
• Containing compensation and benefits costs of remaining staff
• Maintaining a profit level (or just break-even) that allows the company to survive

As you can see, many of these concerns represent a major shift in focus and philosophy. Once a company decides on this new action plan, managers at all levels must also modify their approach to operations. Using classic, proven management techniques modified to address a bad economy can help good managers remain successful even in the face of a national or international financial down turn. Here are some techniques to help you accomplish this goal.

Use Four Management Constants to Succeed in Down Economies
Stanford Professor Bob Sutton is an author who understands management theory and has done extensive research in the psychological and organizational areas of supervision. Sutton states succinctly what all experienced managers know intrinsically, "The best bosses understand that there is a difference between what they do and how they do it."

Professor Sutton further recommends the use of four consistently successful management (and human) abilities to focus beyond their personal needs and concerns to address the psychology of their employees during down economies.

Predictability and consistency
All humans, be they children, athletes, or employees, appreciate consistency in action and predictability in their lives. These traits can be very important in the workplace during bad economies. For example, assume your company is entering a downsizing or lay off mode of action. Regardless of the company’s desire for secrecy, rumors and misinformation invariably surface. A good manager can gently inform staff when cuts are coming and reassuring employees when they are not. Instead of the entire team constantly living in fear, this level of predictability can soothe many concerns.

Understanding and Communication
Always important, good communication in a bad economy is critical. Your staff will better tolerate unpleasant company decisions if they know the “why” behind these actions. A good manager will explain corporate decisions as often as necessary to achieve staff understanding. While most employees may still disagree or be fearful of these decisions, they typically handle these issues with much more professionalism because you communicated and they understood.

Control and Achievement
While neither you nor your staff can control the economy or company decisions made as the result of downturns, you can deliver some measure of control to your employees. This technique is particularly effective after a downsizing or lay off action. Work with your staff to break down the increased workload into smaller, manageable pieces. Employees can now concentrate on completing less intimidating tasks and earning a positive sense of achievement. Offering a feeling of control and encouraging achievement provides your staff with a belief that they are making a positive contribution to keeping your company alive and well during a bad economy.

Compassion and Honesty
Make it clear that you respect and appreciate those employees downsized and have complete confidence in those that remain. Displaying compassion for those teammates who have departed will typically translate into improved self-image for those remaining employees, who are now expected to work even harder to maintain efficient operations. Your expression of honesty, empathy, and confidence helps your staff retain a sense of team and motivation to perform.

These simple and effective management actions should help you maintain or improve your image as a good manager during the difficult periods in a bad economy. You will feel better about yourself as well. You’ve maintained the dignity and integrity of all employees – those who’ve stayed and those who’ve left – as well as your own humanity. You will not be afraid to talk to the “face in the mirror.”

Most would agree with Professor Sutton that managers should ask, “When I look back on what I did, will I be proud or ashamed?” You can still be a great manager in the throes of a bad economy by practicing good management – and human – virtues.