The Current Business Model Makes Us Powerless — Does It Need To Be This Way?
The most common ways of leading companies today is to take care of some people and not others. In face of economic threats, most leaders react with layoffs as if they are the only available strategy — and most of us think that’s the only way to do business. We accept it. Here is an example.
It’s not the only strategy and many CEOs have proven it. Here is an example.
The LIM victimizes us and puts us in a powerless position. We feel like we have to lay people off.
What the Use of Layoffs Exposes
In addition to the lack of creativity in identifying new options, the use of layoffs exposes a lack of contingency plans. Who is managing the risk of potential market downturns? Who is using profits to finance unexpected events and keep a company afloat? Some company leaders hold savings for rainy days.
While layoffs reduce some costs, they create different costs. For instance:
- leaders’ credibility – who trusts leaders who dispose of people in difficult times?
- organization’s image – what happens when customers choose to give their money in companies that take care of their employees when things go badly
- reactivity – when leaders have to take extra measures to prevent the spread of Covid, for instance, they incur higher costs because they hadn’t planned of doing those things; buying things when you need them are a lot more expensive than if you planned for them before being in a tight spot
- labor costs to identify the people to lay off with associated legal documents and the like
- recruiting costs for identifying people to return to the company when a crises is over
- productivity dips when people are laid off and people are hired later
- productivity dips for people who have not been laid off, who feel badly for their colleagues and fearful of being the next to be laid off
All this keeps us in survival mode, when we can thrive.
What’s the Alternative?
Think of ways to keep everyone afloat.
Ideate and use your smarts — in collaboration with your team to identify 3-5 viable ways to weather the storm.
Then think of ways to learn and become stronger during the Covid virus. How might you shine in terms of the services you do to reach out to people in need?
If you have hotels, what if you showcased your hospitality to the world by working with mayors or hospital leaders to transform your hotels to makeshift healing spaces, as an example.
How might you share your assets to help other company leaders that are struggling to meet demand for their services?
What if you asked each person on your team to think of ways they can help another colleague or client/customer without thinking about money right now. Then, when you come up with ideas, you can think of ways to finance those ideas through your company or with other companies, NGOs or governmental organizations.
Ideas surface in times of need. You’ll be amazed how creative you can be when you take layoffs off the table as an option to get through difficult times.
For more ideas, learn about human-centric leading.
Image from Pexel.com