Some businesses emerge stronger after lean times. Will yours join them?

Xero is a case in point – founded in 2006, it not only survived the 2008 Global Financial Crisis, but emerged as a game changer in cloud-based accounting software. This was largely due to it focusing on innovation, action and investment. Similarly, Mainfreight emphasised company culture during the GFC, ensuring key talent was retained and a strong team was in place to drive the business forward, which then resulted in global expansion.

How businesses respond right now is crucial. It requires shifting away from a reactive and “hunkering down” approach to identifying and acting on strategies to thrive. This may involve innovation, technology, diversification and market expansion, but the people component is just as vital.

The following outlines key strategies:

Set the vision and get buy-in

A fundamental aspect of leadership is to set the vision and do so visibly. Most leaders think they do this well, however, their teams will report that the focus isn’t clear and therefore it doesn’t receive the necessary commitment. Be deliberate in knowing and communicating why your team/business exists, what success looks like and where you are heading. Aim to overcommunicate this – typically when you think are overcommunicating, the team will think the communication is about right. 

Focus on values and strengths

Knowing what is important to you and the values that drive your business and its decisions is very powerful when done well. This is the stuff that your people connect to and what builds culture. Run a process to set your values, include your team and then live by what you’ve said. Likewise, understand what your strengths are as a team/business and lean into these. This will build an identity within the business and establish a strong reputation outside of it, which can become a powerful competitive advantage. 

Maintain culture

A strong culture is both a key retention and talent acquisition strategy. In Ron Friedman’s research and book, The Best Place to Work, he outlines three core focus areas:

• Relational Connectivity. Be intentional about establishing connections and enhancing communication touchpoints with your team. Research shows that when staff feel supported by their colleagues, they are less likely to experience challenging events as stressful. Schedule time for this and even re-engineer their physical workspace if that helps.  
• Grow competency. Be intentional about developing your people. Have access to opportunities for people to grow and develop, ensure that development plans are in place, give feedback, hold one-on-ones and provide mentoring and coaching. Tools such as personality profiles, 360° reviews and team sessions also grow people. It’s about a culture of development rather than a bunch of external training courses.
• Autonomy. Be intentional about giving people autonomy and choice. It boosts motivation and enhances performance on complex tasks – delegate, allow people to define their own approach, encourage input and provide meaningful context for their roles. If not, team members will be left demotivated and disengaged, and performance will drop – not what we need right now!

Talent acquisition

A mistake leaders often make during difficult economic periods is to put a hold on recruitment initiatives, which can result in vital talent not being secured. The talent market has eased, so there is an opportunity to source the right people to drive your business forward.

Our Baker Tilly Staples Rodway HR teams can support you with developing your people, culture and capability – wherever you are in New Zealand. Get in touch with our team of experts today!