Business in crisis

Recently, we have increasingly heard the word "crisis", especially this applies to business and entrepreneurship. It is impossible to deny the negative impact of the crisis, but also to overestimate. Below are 10 management errors that can be caused by alarmist attitude to the crisis per se.

Dismissal of talented employees. Dismissing efficient employees is a quick way to cut costs. What's next? The crisis will pass, then you will have to hire new ones who will have to be trained anew. The right option would be to agree with employees on a temporary reduction in payment. But if little work is foreseen, then keeping a large staff of managers will be unreasonable.

Reduced IT technology costs. Do not forget that we live in a world of information technology, the Internet, social networks, where consumers and sellers communicate, so saving on IT does not make sense. Naturally, it is not necessary to increase costs, but it is better to optimize current ones by analyzing the effectiveness of invested funds.

Risk reduction. Now the best option for management is an active search for new ways, methods and opportunities to expand activities. Stagnation is a terrible enemy of business, and especially in times of crisis, because it is a sure way to collapse, because if there is no development, degradation is taking place.

Stopping the development of new products. Costs will initially be slightly reduced, but what will happen, for example, in a year, when new and attractive products are needed? You just have nothing to offer the consumer amid farsighted competitors.

Change of leadership. The trend is that in a crisis, companies dismiss the former manager, who is focused on the growth of the company, and instead appoint another, who will reduce costs and lay off employees. The fact is that a change of leadership will lead to more or less paralysis of the company and further growth will have to wait a long time.

Stopping the development of new markets. The crisis will someday end, therefore it is better to be “on a horse”, one step ahead of competitors.

Change of company strategy from innovative to expectant. Temporarily, of course. But there is nothing permanent than temporary. It will be very difficult after the crisis to return to the previous course. The right decision would be to concentrate on promising projects as much as possible, to slow down a little.

Decrease in the level of "life" of employees. Speech about trifles - drinking water, food, pens, notebooks, all that makes up the visible part of the employees workspace.

Complex management structure. In a crisis, the best option is to simplify the structure of the management cabinet - this will increase the speed of decision-making.

Discontinuation of consulting services. In a crisis, management usually tries to reduce costs, but here the saying goes: whoever owns the information owns the world. It is better to be aware of everything that happens on the market, in obscure situations you do not need to save on competent consultants - the benefit of the new information will be more money spent on consulting services.