Subscribe to the Three Star Leadership Blog

The Working Supervisor's Support Kit is a collection of information and tools to help working supervisors do a better job. It's based on what Wally's learned in over twenty years of supervisory skills training.

For weekly tips and resources pointers, check Wally's Three Star Leadership Letter

Request your free copy of Wally's Special Report: Managing Headcount in a Downturn.

Find out more about having Wally speak to your company or convention.

Find out more about Wally's coaching services.

Mark Twain had it right. "History does not repeat, but it does rhyme."

That's what makes managing in a downturn tough. We know some things that have worked before, but we also know that, in many ways this downturn will be different.

We know that downturns are like the Chinese character for "crisis." They're made up of both danger and opportunity. In the last downturn several companies leaped from the bottom to the top of their industries in profitability. Many companies have used downturns to do things they knew they should do all along.

From experience, and careful study, we know some of the things that work. We know that stripping away expenses is crucial. We know that this is the time to pay attention to your core business. It's a time to hew to the line of strategy.

If everything was the same as before, we'd know what to do. It might not be easy, but it would be clear. Alas, this downturn, like every other one, will be unique.

Companies are going into this downturn leaner than ever. There's less room to cut expenses.

Work has become more collaborative and team-based. Individual knowledge and relationships are key to competitive advantage.

And, this time, there won't be much credit available to cover a shortfall in revenue. Banks seem intent on shoring up their balance sheets while they let other businesses twist in the wind.

There are some tactics that should work.

Make cash the king. Forget "accounting profits" and anything else that doesn't show up in your bank account.

Concentrate on the core. Forget expansion. Forget snapping up "synergistic" opportunities. Get better at what you do well.

Make targeted and carefully analyzed cuts. This is not the time for "across-the-board" anything.

Hang on to as many good people as you can. Their knowledge and relationships will help you get through the downturn and position for the upturn.

Follow the example of Nucor. Involve all your people in coming up with innovative ways to meet the challenges of this downturn. When you cut salaries and benefits, start at the top.

For more details on this, including a look a the distinguishing tactics of companies, like Nucor, that have managed to keep their workforces intact through downturns and decades, request your free copy of my Special Report: Managing Headcount in a Downturn.

Wally's Working Supervisor's Support Kit is a collection of information and tools to help working supervisors do a better job. It's based on what Wally's learned in over twenty years of supervisory skills training. Click here to check it out.

Request your free copy of Wally's Special Report: Managing Headcount in a Downturn.

Request your free copy of "Meeting the Challenges of the Boomer Brain Drain: An integrated approach."

Wally Bock has helped people learn to be great bosses for more than a quarter century. His latest book, Performance Talk: The One-on-One Part of Leadership, makes learning key leadership principles almost effortless by teaching through a story and providing lists of resources for further growth.

Click here to find out more about Wally's coaching services.

For weekly tips and resources pointers, check our Wally Bock's Three Star Leadership Letter.

Click here to find out more about having Wally speak to your company or convention.