A NDP landslide and Wild Rose party minority. A stunned business community.
By 9 am today I had responded to numerous calls from CEO clients in Alberta and Ontario. One typically pragmatic leader was “rattled”. Another was so rocked he equated it to preparing for an impeding earthquake. You are in the executive seat. What is the best response and how do you navigate the next five years?
- Don’t react with anxious action
- Behave as if you know that you and your team will weather the building storm. Because you will. You have before.
- Speak confidently to your employees and anxious customers and investors.
- Don’t pull back.
- Reactionary spending cuts, particularly to discretionary expenses is not the answer.
- Thoughtful, systemic operational improvements that will result in sustained profitability is much more effective.
- Continue to plan for the long term. Most organizations will still be standing at the next election.
- At the same time – you know your business. Make the tough expense cuts where required. Don’t delay on taking the difficult action that you know you must do.
- Look for the opportunities
- The drop in oil and gas has precipitated conversations regarding consolidation and acquisitions. I am presently advising 2 clients on navigating due diligence.
- Does this expedite your plans to sell part or all of your business? Divest non-core services or und.er-performing assets.
- If you are contemplating acquisition, you may have additional opportunities in the next 12 to 36 month.
- Develop scenarios
- Seek input from your leadership team, trusted colleagues and 3rd party advisors.
- If you consider this a “crisis”, what scenarios did you previously identify to respond to unexpected situations? What can you potentially apply in the months ahead?
- Document and critique your potential responses to various “what if” scenarios.
- Influence all that you can
- Do not underestimate your ability to lead through turmoil and to excel in turbulent times. This is when leaders are made.
This situation and the new Alberta leadership is not permanent. Nothing is.
I am not naive. I was an Ontario business leader in 1987 under NDP leadership. It was challenging. My BC clients had to dig out from under NDP rule post 2001. I realize we are in for a rough road. However, I have great confidence in the judgement of my Alberta clients and colleagues. This province is led by a powerhouse of innovators, entrepreneurs and savvy business leaders. This will be one for the Alberta history books. Let’s be heroes and heroines when they tell the story.
I help mid-sized public, private companies and Fortune 500 companies accelerate profitability and revenues. I seize the opportunity in crises. I can help you and your team navigate the white water ahead.
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