Stocks Drop
On the evening of July 28 I convinced my family to liquidate all our stock holdings into cash, which we did the following day. While many of you attended college for education, I went to U.C. Berkeley to play water polo. I left early and got a 5 year education on the floor of the Pacific Stock Exchange. My life experience gives me a different perspective than some people.
The stock market has dropped and economic uncertainties will continue, but you don't read this newsletter to hear my stock predictions or views on how to restore America before the dream is gone.
What does the stock market drop mean for you as a leader?
1. Opportunity. Economic uncertainly means opportunity for shrewd business people. Zappos, which was broke in 1999, grew through the dot-bomb economy of 2001-03 and the 2008-09 recession. They sell shoes! And not at the lowest prices, but rather a fair price. If they can make money selling shoes online during multiple economic downturns, then you can too.
2. Habits. In brief, you have to change your habits as a leader so you are more focused on your company culture. This has two key outcomes: (1) It improves the experience of clients doing business with your company so they buy more from you and recommend you to others; and (2) your employees become more engaged so their productivity improves, profitability increases, and personal fulfillment in their careers soar.
3. How. It is not easy, but the way to success is straightforward and systematic. Over the next few weeks we are introducing new low-cost and fairly priced programs to improve your company culture. Watch your Inbox.
We can do this, BUT it takes making a decision to do business differently and then following through.
MEETING IDEAS You have to be realistic about economic uncertainty, but not let the negatives blind you to the opportunities. The way through is to have a clear strategic plan and follow it systematically.
Here are some ideas for how you might discuss the current economic situation with your team:
1. What is the impact so far? Ask your people to confirm progress on client contracts and discuss possible extensions of business. Have everyone report back on their perception of your clients' confidence of current and next-in-line projects.
2. Focus more on value. Overcome fear with financial value. Too often we get focused on selling "stuff" rather than delivering a product or service that improves the life of the client, increases their profits or lowers costs. What is the REAL VALUE of each of our top ten products or services to our clients?
3. Find The Flaw. This is a simple game I recently created from a standard process. One person is responsible for convincing the others one of your top products or services offers a real financial value to your clients. The person starts by presenting why the item increases revenue/profit or lowers costs for your clients. The others can choose sides: (1) To provide additional information to support the person's claims of your offering's benefits; or (2) to question, debate the facts, and politely, professionally challenge the person's claims. THE GOAL: Identify ways to improve the ways clients are served; products and services are delivered; and employees are managed.
