Truthfulness Will Sustain Firms
Recessions redistribute the market, regardless of whether you are doing well or poorly
By Howie Fenton -- Graphic Arts Online, November 1, 2009
How the mighty fall and the smart succeed
In preparing a presentation titled “Selling the Value of Print-on-Demand and Web-to-Print,” a slide from of one of our NAPL reports stopped me dead in my tracks. It shows a huge decline in printing firms following the 2001 recession. Almost half the companies that were doing well for years prior to the recession fell and never recovered.
Looking at this slide reminds me of two things. First, it reminds me of a cover story a few years ago in Business Week. The cover showed a picture of Jim Collins pointing like the old Uncle Sam recruiting posters that said, “I Want You.” But the words on this cover said, “How the Mighty Fall and How to Stay on Top.” The story was actually taken from his book by the same name.
It also brings to mind the famous opening line of Charles Dickens, A Tale of Two Cities. “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness.”
Both of these quotes accurately portray our data. Recessions redistribute the market. It does not matter if you're doing poorly or well; after a recession you can emerge as a leader or a trailer. You might be a leader and struggle (How the Mighty Fall), or you could emerge from the recession stronger and leapfrog ahead of the competition (the best of times).
In Collins' book he describes the characteristics of teamwork that's gone wrong and caused companies to fail: leaders asserting strong opinions without any evidence; team members passively accepting decisions but not actively trying to make the decisions work; team leaders asking few questions and avoiding critical input; team members seeking individual credit and self-interest rather than the team's interests; teams blaming someone when things go wrong; and teams failing to deliver results.
In contrast, Collins points to the kind of leadership that has helped companies succeed even through a recession. In sustainable companies everyone tells the truth in the organization to leaders; evidence supports decisions; teamwork is marked by active debates and feedback; team members stick with decisions once they're made; team members credit each other for success; failures are not focused on individuals and are considered learning experiences; and each team member is accountable for results and delivers them without excuses.
How are you managing your recession?
Fast and cheap vs. in-depth and paid
Is there a declining perceived value of new products and technology knowledge? It seems as though many organizations that once provided new product and technology information have scaled back.
Some of my contemporaries say that the Internet with its ListServes, blogs and social media options—which increases information availability and sharing at the speed of light—has shifted how people consume information.
Others say if they really need information, they can contact associations, peers, manufacturers and industry experts.
And it could be argued that new product and technology advances have slowed and are not as hard to keep up with as they used to be.
As Michael J. commented at my blog, “In an information-rich society, delivering information is less valuable. It's pretty much supply and demand. A Google search + trusted friends + Twitterings give as much, as fast, as was previously the domain of trade organizations.”
Michael is right when he says there is a large volume of information available online. If you're willing to spend time Google searching or making calls, more may be within arm's reach. However, we have to ask: How reliable, in-depth and valuable is that information? What's better: free and fast information or in-depth analysis that costs more? When your business is on the line because you're significantly investing in technology and/or equipment, there is value in in-depth, relevant and accurate information.
How the Mighty Fall and the Smart Succeed
09/30/2009How the Mighty Fall and the Smart Succeed
09/30/2009What do you do?
08/21/2008
