It is common for businesses and individuals to make mistakes. What is success without the lessons we learn from mistakes? However, in the midst of a crisis or major changes, some mistakes can be avoided so we do not waste our resources unnecessarily.
While we cannot control all the mistakes we make, we can surely avoid some of them, so that our business can still survive in times of change and challenges. Here are the 7 mistakes we can avoid, especially during a crisis.
The first mistake is laying off talent for the sake of cost-saving. While many businesses consider it normal to lay off people when the outlook turns dire, doing so just to save costs could end up costing your company more. Often, businesses do not hire to compensate for the lack of human resources because that would mean straining financial reserves even more.
What ends up happening is that the workload of those who were laid off gets dumped onto those who remain. This adds to their already heavy workload and the overall quality of the work produced by the company could suffer. Just because business has slowed down doesn’t necessarily mean there is less work.
The second mistake is reducing investments in training and development. Most businesses see learning as “good to have” rather than a “must-have” and therefore cut it during a crisis. The reality is, for people to face the challenges ahead, they must be able to respond with speed. The only way to do that — especially if they lack prior experience — is through learning.
A recent article by McKinsey, "Covid-19 and Reskilling the Workforce", cites a survey in which 87% of executives said there were skill gaps in the workforce and half of them were unsure how to address those issues. In light of the impact that Covid-19 has had, the article said, solving these gaps becomes crucial in helping organisations and people adapt to rapid changes. Learning and development may not be the immediate answer, but it is a starting point.
The third mistake is chasing every sales lead. Before the current crisis, we may have been focusing on sales leads that took a lot of time and effort but ended up delivering nothing. While it is still okay to do this to nurture contacts and keep the company’s name in the minds of prospective customers, in today’s situation, it may cost us more than we anticipate.
We cannot always predict which way a sales lead may go, but we can find tell-tale signs. It is important to keep in mind that our potential customers will also be facing change. Understanding this and how they’re reacting to the situation can help you narrow your focus so you know where to devote your effort.
The fourth mistake is ignoring long-term strategy and focusing on the short term to survive the current situation. Yes, surviving today’s situation will require you to set and meet short-term goals, but to survive further challenges in the future, you still need to have a long-term strategy in place. A balance of both can ensure the survival of the business for the long term.
The fifth mistake is not communicating. This is straightforward enough: not communicating information about changes to your people can cause panic and you may face a drop in morale and productivity. No one likes to run toward nothing with no direction.
The sixth mistake is remaining rigid in the face of change. This is unsurprising because if things have worked out for the company so far, why change? This attitude persists even during a crisis at many organisations. They’ve survived so far, and they can survive this — right? The problem with this mindset is it instills a belief that everything around us cannot touch us, when in reality, no matter how successful your business is today, it could all crumble tomorrow.
The final mistake is repeating history. Given all that’s been said and done, it is human nature to forget what has happened and repeat those mistakes over and over. While we may have not faced this exact situation and crisis before, it is important to learn from similar experiences of the past and move forward.
To conclude, I’d like to share a quote I read the other day in a Bloomberg article from Jude Boudreaux, a senior financial planner at a company called The Planning Center. He said: “The biggest advice I give people in uncertain times is to take all of the things going on in your head and write them down.”
I also want to impart this advice as mistakes are usually made because we are to quick to jump to solve things without realising what we need to solve.
Arinya Talerngsri is Chief Capability Officer and Managing Director at SEAC — Southeast Asia’s Lifelong Learning Center. She can be reached by email at arinya_t@seasiacenter.com or https://www.linkedin.com/in/arinya-talerngsri-53b81aa. Explore and experience our lifelong learning ecosystem today at https://www.yournextu.com
