The following two passages are from an article on HarvardBusiness.org. It is titled: “The Secret of Success in a Failing Economy”. It is very timely, and I have written an article that will be in the January issue of Support World magazine addressing this same issue. My article will be titled: “Don’t Make Bad Decisions in a Bad Economy”. The points are the same; never stop investing in your people or the things that are important to your customers. I will let you read the excerpts. Let us know what you think?
“The more jarring message comes for companies and their leaders. We're still early into the downturn, but already big companies are reacting the way they always do. They are encouraging their highest-paid, most-experienced performers--that is, those with the most practice--to be the first to leave. Last year, in perhaps the most famous example of this brain-dead, knee-jerk policy , Circuit City, the giant electronics retailer, announced its so-called "wage management initiative." The plan: fire its most talented and experienced employees in favor of younger workers making less money. Of course, customers who visited the stores looking for advice got much less of it, which meant they took their business elsewhere. The result? Last month, Circuit City filed for bankruptcy.”
“How's this for a secret of success? You don't survive a downturn by encouraging your most experienced people to leave. Perhaps more business leaders can resist this wrong-headed practice--and hold on to those employees who have had the most practice in their careers.”
Makes a lot of sense, doesn’t it? I’m no Harvard grad; but this is a no brainer!
Rich Hand
Executive Director of Membership
ICMI
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