This economy is really driving even the most efficient and effective leaders crazy. In my 29 years as a consultant I have seen a number of cycles like this, but “uncle” already. Lets get to the next period of growth.
What can organizations do to ride out the storm? A number of my clients have saved money, improved their financial performance and enhanced their competitive positions by the selective use of outside consulting firms. But here is my caution. A number of companies begin to depend on “outsourced” services and over time they become part of the overall operating strategy. Some of these services are provided at a much higher rate than is necessary to pay.
Here is where your management and negation skills come into play. Review and revise every contract relating to any type of outsourced service. Now is the time to strike a deal on equipment, supplies and people. Most firms like ours have experienced a decline in revenue, but are still in business to service our many clients. When asked, we have negotiated favorable and more cost effective terms with our clients. As we have come to realize, we are all in this lifeboat together. And by working together, each team plugging the leaks, we can weather this economic storm.
Two years ago, I was writing about the “Perfect Storm” hitting Florida effecting economic growth. No labor to speak of, low unemployment, exploding house prices, poor quality education, and unpredictable stormy weather all had a negative impact. Regardless, thousands of people a month were still heading south to the “Sunshine State” which continued to offer a better than average economic forecast. Now, the economy is generally at a standstill except for the biotech and healthcare sectors. Hospitals and other entities should take advantage of these conditions. Stock up on talent as there is more available at the best price possible. Negotiate with any staffing related agency and work with them to get favorable rates. Realign your business, and make retention a big part of your strategy.
During the downturn, the real leaders emerge. Take the steps necessary and evaluate how your consulting partners will work with you to contribute to your economic well being in these most difficult of times. Consultants know this, without our clients we have no business.
Post Views: 694
