Yesterday we learned that U.S. GDP shrank at a rate of 6.1% in the 1st quarter of 2009. This follows a 6.3% decline in the 4th quarter of 2008 and marks the first time since the 1974-75 recession that we saw 3 consecutive quarters of negative GDP growth. Things seem bad all around.
As leaders during this turbulent time it is important to remain focused on the end goal and not become distracted by the “radiation” of the economic slowdown. Sure, dips in revenue make it difficult to imagine launching that new infrastructure project or hiring that new employee. However, while most are hunkered down or retreating in a futile attempt to meet short term budget or executive compensation goals, long range thinkers see this as an opportunity.
Rather than running for the hills, we should be utilizing this opportunity to cut the fat from the organization and reallocate those resources on projects and personnel that will prepare your organization to capitalize on the eventual turn in the market. It will happen, trust me. Someone else in your industry will be thinking this way. If it isn’t you, you’ll become a dinosaur or at least seriously left behind.
As technology executives, we shouldn’t be afraid to let our CEO’s know when we think we are looking in the rear view mirror rather than through the binoculars at the distant horizon. Be proactive in suggesting appropriate savings opportunities, while simultaneous revisiting the CBA (Cost-Benefit-Analysis) for the most promising projects. Be a champion for these initiatives.
