Communicate – don’t hunker

Sage words from Fortune magazine in “How to Manage Your Business in a Recession” (January 19 issue):

The instinct of most executives is to hunker down in uncertain times, keeping quiet until they believe they have some answers. That’s the opposite of what’s needed. In a recession all of a company’s constituencies are nervous: Employees are worried that they’ll be fired, suppliers that they won’t be paid, customers that quality will decline or prices rise, investors that the stock will tank, communities that operations will close down. Your silence just makes them worry more.

Good managers respond by communicating even more than usual. They find that they needn’t have all the answers, but they do need to say what they’re thinking and be honest about conditions.

It may be preaching to the choir to say “get out and communicate” to investor relations folks, but it’s good advice for reticent CEOs and CFOs. To see the other nine tips for tough times, view the story.

Advertisements

Tags: , ,

One Response to “Communicate – don’t hunker”

  1. Agoracom - George Says:

    Dick, my blog post to this effect on October 7th was very well received:
    http://blog.agoracom.com/2008/10/07/best-ir-practices-during-market-turmoil/

    It was the subject of a keynote speech I gave at a PIPEs conference in New York the following month:
    http://blog.agoracom.com/2008/12/07/agoracom-keynote-investor-relations-speech-from-pipes-conference-2008/

    I hope these help those who are sitting on the fence. Communicating during this “quiet” period should yield some great results for you.

    Regards,
    George

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: