When your business slows down, how does your organization react?

Our reader poll today asks: When your business slows down, how does your organization react?

• We frantically try to boost revenue by trying a lot of new things – 7%
• We’ll push core sales and marketing efforts even harder – 19%
• We’ll tighten our belts and cut expenses dramatically – 26%
• We’ll continue with our plan but build contingency plans if things don’t go well – 38%
• We continue with business as usual and ride things out – 10%

Riding it out. When business slows, it’s easy to freak out and start pursuing every opportunity you can think of to drive performance. The risk is you dilute your focus and can possibly pursue things that are inconsistent with your company’s strategy. While in the short term that might generate some cash, long term it can muddy your focus and harm long-term performance. Many of you report taking some action like reducing expenses or putting plans in place so you can act quickly if things continue to get worse. Regardless of which actions you take in reaction to a business slowdown, at least slow down and be deliberate in your choices. Understand the longer-term implications (like cutting investment in R&D now could harm your long-term product pipeline and create a future crisis; or cutting training investments now can lead to unskilled workers or higher attrition in the future). Don’t let fear rule your decision making. Be deliberate and understand the consequences of your choices.

– Mike Figliuolo at thoughtLEADERS, LLC

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These results were originally a SmartPulse poll in SmartBrief on Leadership which tracks feedback from more than 240,000 business leaders. Get smarter on leadership and sign up for the SmartBrief on Leadership e-newsletter.