“Hunker down” was a catch phrase of sorts around these parts in 2008, as Houstonians spent the second week of September bracing for the worst hurricane to hit the area in decades. Assuming a defensive position to resist difficulties or settling into a location for an extended period of time may be the prudent approach to take in the midst of a severe weather event.
But as we weather the most severe global economic crisis to strike in 80 years, being defensive, resistant to difficulties that could eventually yield promising opportunities, or retreating are simply not viable options. Particularly not for an organization that is serious about retaining market share in the midst of the crisis and achieving growth once recovery is complete.
2009 has been an interesting one for our industry, as the economic uncertainties prompted organizations to scale back on services and resources and to play wait-and-see in anxious anticipation. It was an instinctive and natural hunkering down response to a deteriorating economy in desperate search of a bottom.
There is nothing new, nor pleasant, about down-cycles in our economies. How we respond to those cycles can determine our overall health and ultimate growth potential. One certainty is that once an economy dismantles and resurges, it is never the same. During that transitional period, smart organizations reshape themselves to best exploit the new model.
The optimum time for making the hard choices to scale back on resources and service is when that cycle is on the horizon, not in the midst of it.
I believe our economy is in recovery mode. Year-end activity reinforces that belief. October marked the highest expansion in our manufacturing sector in 3 ½ years. Steel exports are growing by double digits for the first time in months, a strong indication developing countries are showing signs of vitality as they address their infrastructure needs. When full recovery will be achieved is anyone’s guess, and that, in itself, is part of the thrilling challenge in dealing with economics.