“I don’t know,” Denise continued. “If we are really going to be down another 20 percent in revenue, we are going to have to take some steps that I don’t want to take. This is the hardest thing I have ever had to do with my company. I can usually take things in stride, but I can tell this is affecting me. I am not a stressed out person, but I can feel this.”

“It is easy to get hung up in this market,” I replied. “You think your business is contracting because you did something wrong. This is no different than adding headcount and buying equipment when the market is growing, except we are having to reduce headcount and idle equipment when the market is contracting.”

“I know, but it feels bad.”

“Feeling bad is not going to help. I know it is difficult to imagine, but think about the worst thing that could possibly happen.”

Denise glanced sideways at me.

“Seriously,” I insisted. “What is the worst thing that could happen? Now, accept it.”

Denise’s stare became intense.

“The stress you feel is because you cannot imagine the worst. It puts you in a state of fear. When you can accept the worst, you can take positive steps to improve your position. Not from a state of fear, but from a state of acceptance.” -TF
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Working Leadership Online Schedule
January 26 – Orientation
February 2 – Goal Setting and Time
February 16 – Decision Making
March 2 – Planning
March 16 – Delegation

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“It’s strange,” Byron said. “A couple of years ago, we were on top of the world. We were the industry leader, now things are tightening. You just never know.”

“So, this was not predictable?” I asked.

“No, our growth curves just showed, no turning back. I mean, it wasn’t hockey stick growth, but continued growth just the same. We just didn’t think we would have to pull in our horns.”

“So, Byron, what’s the purpose for a forest fire?”

“What do you mean? How can a forest fire have a purpose?”

“From an ecological sense?”

Byron thought for a minute. “I have heard that when a forest becomes choked with undergrowth, a fire can clear it out. Though it appears devastating, that’s what brings on new growth.”

“What could that tell us about business cycles?” I probed.
“Sometimes the market gets overgrown and has to be cleared out?” Byron tested.

“Yes, in fact, if you look at macro economic climates, you will see very distinct cycles. Occasionally, there has to be a clearing of the undergrowth. So, what if you looked at your own internal business cycles, within your own company. What do you now see?”

Byron pondered. “I see that, as we grew, some of the things we created weren’t good for the long term health of the company. They seemed like a good idea at the time, but, perhaps, we were just creating undergrowth.”

“But the project you are talking about abandoning is a service that we have provided for more than a decade. Our customers have come to expect it. Heck, part of our reputation stands on it,” Byron protested.

“So, is it your moral duty to continue something that is no longer producing results? Or can you accept that, what you are known for, once served a market, but that market was temporary? And that proud service no longer satisfies a customer need.” -TF

Byron was thinking back. “I think we have done what you suggested. Every year, in our annual business plan, we look at the cost structure in each of our project areas. And each year, we find one or two things that don’t quite measure up.”

“What was the last project that didn’t measure up,” I asked. “And what did you decide about it?”

Byron’s curiosity turned into a muffled laugh. “You’re right. Now that I think about it, the people involved, in the last project going south, negotiated more time and actually spent a ton of market research money to find out that there wasn’t as big a market as they thought. Their dwindling net profit went underwater the more they studied it.”

“And now?”

Byron shook his head. “They are still holding on to some hope that the market will turn around.”

“The answer is NOT, how can we make another research study? The answer is, how can we get out of this? Or, at least, how can we put a tourniquet on the bleeding?” -TF
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The failure to accomplish a goal does not prove that more efforts and resources are needed. The failure to accomplish a goal may indicate that efforts should be stopped and a different path should be taken.

Old Indian saying, “When the horse is dead, it is time to get off.”

“I’m not sure what happened,” Byron explained. “Our company was voted the number one employer two years ago. We have the best employee benefits, we have the best equipment, we have roomy workspaces, our sales people get trip incentives. All of a sudden, to stay profitable, we have to lay some people off. The mood around here turned south very quickly.”

“Times have been good?” I asked.

“Up ’till now.”

“What happened?”

“Sales have been off. Suddenly all these great things about our company are costing us out of business.”

“When were the decisions made that put you upside-down on your cost structure?”

Byron had to think back. “Three or four years ago, I guess. Those were the best of times.”

“It’s in the Best of Times that we make our biggest mistakes.” -TF