Decision inertia
When faced with a crisis a natural reaction is to stop making decisions or decision inertia. This is also true in business when faced with a crisis. Some people will say that leaving your options open is a good thing, and in some instances this may be true, however it is also true that it is often fear of the unknown that is stopping you opening one door and leaving the others closed.
Tony Robbins defines a decision as cutting off all other things – saying yes to one thing and no to the others. In other words, committing to a decision. We crave certainty but the only way to find real certainty is to embrace uncertainty and step into the unknown. Back yourself!
In a time of crisis in a business like most businesses are facing now with COVID19 it is vital that decisions are made. Go fast and go hard. If you suspect that sales are going to decline, and debtor days are going to lengthen then cut back your overheads now.
Waiting until the sales slow and the cash cycle lengthens, or waiting to see what happens in a week, a month or a year, is to me like watching a car crash in slow motion.
Cut back your overheads now and cut them back hard. Then when circumstances improve grow these expenses slowly. You might even find you come out of the crisis a lot stronger and leaner business.
Stephen Barnes is a business turnaround and recovery specialist, Board advisor and the principal of management consultancy Byronvale Advisors. He has over 25 years advising clients from new business start-ups to publicly listed companies and across a wide array of industries. He is a crisis manager that prides himself on quickly understanding the client’s business and issues and developing pragmatic solutions to complex problems. He is also the author of ‘Run Your Business Better’. To find out how Stephen can help you run your business better and quickly improve your business performance visit www.byronvaleadvisors.com.
