November 2008
What Should a CEO Do in a Downturn?
Here are the bullet points from two key speakers at the recent Los Angeles Business Journal CEO Conference & Expo:
Kei Matsuda, Senior Vice President & Economist, Union Bank of California
- Remember that all economic downturns end ... eventually. Do not lose your long-term strategic perspective. If you do not have a strategic plan, get one.
- Preserve your strength. Manage your financial capacity. Protect your most valuable assets, e.g., your business, your "exit strategy," or your retirement plan.
- Stay on top of the economic news. Pay attention to local data, not just the national information.
- Talk to your banker. Know your funding options. Know the health of your financial institution and their plans for the future.
- Leadership is critical. As a CEO, you must be prepared to lead.
Julio Melara, President and CEO, Time for Action
- It takes endurance. The "race" of life, our business, or our relationships is about long-term thinking.
- Stay focused. Do the things you can to grow and/or strengthen your business.
- Enlarge your leadership capacity by continuing to grow as a leader. It will increase your opportunities.
- Find areas in your business where you can re-calibrate, re-engineer, and re-design to become more efficient and productive.
- Create a culture of excellence if you don't already have one. It's contagious, it can be felt by your clients, it attracts talent, and it creates an environment that is motivating.
- Create a "Wow" factor for your clients. Exceed your clients' expectations.
- Remember that what your company provides, whether it's a product or a service, is always about solutions and the experience.