Here is an excellent article for our troubled times…
The conventional view is that, in hard times, business leaders have a responsibility to keep their eyes firmly on the bottom line, protecting workers’ jobs and shareholders’ investment. To do this, business leaders often focus on cutting costs since it is difficult to raise prices in times when consumers are especially price conscious. An auto manufacturer may use lower quality inputs, a consulting firm may staff fewer resources for a client, or a consumer goods manufacturer may cut back on quality checks. Alternately, or sometimes in parallel, businesses will try to raise prices through hidden fees
Do read the complete article. Vikram Akula, who runs SKS Microfinance, writes about his approach and experience. One would expect that a microfinance company would cave in to market pressures when the big and the ‘best’ (till yesterday) have fallen.
My take is that a leader must ask and answer this question: “what are we there in this business for?” He must stick it out. That is tough but if done consistently across the organization and also across it’s partners, employees, vendors and customers it is possible emerge as much stronger entity.
At Learning Leadership, our workouts aim to integrate these principles into Leader’s Agenda.