We live in very economically unstable times. This has probably always been the case, but for a number of reasons, economic conditions now seem particularly unpredictable. The question is not why this is so, but how we should respond. Do we take a defensive posture or should we opt for a proactive approach?
When recessions are likely, there are usually two types of leaders: visionaries (strategists) and those who are financially driven. Financially oriented people often take a defensive stance in their decisions, trying to eliminate risk. Visionaries, however, operate from a different perspective. They see the impending recession as an opportunity to attract customers and increase market share, often taking an offensive stance instead of reacting defensively.
Followers of Jesus Christ have an advantage in determining how to respond: we know the One who knows the future, our Heavenly Father. In the Old Testament, Daniel was asked to interpret a disturbing dream of the king of Babylon. Daniel told him: «The great God let the king know what would happen after this!» (Daniel 2:45). We can ask the Lord for this kind of wisdom in planning for the future.
Key Personnel Decisions. When a recession looms, financially driven people tend to downsize or lay off staff. But the strategist sees the situation differently. After the terrorist attacks of September 11, 2001, the airline industry was devastated. Almost all major airlines began conducting mass layoffs. Southwest Airlines, however, did not. Their visionary leaders sought to ensure that their entire workforce was operational. Expensive in the short term, it allowed the company to expand quickly and profitably in the long term.
In 1 Peter 5:2 we read the admonition, “Shepherd the flock of God that you have, overseeing it, not under compulsion, but willingly and godly, not for vile gain, but out of diligence. Downsizing is sometimes unavoidable, but visionary leaders take a long-term view, taking good care of their people even in unfavorable times.
Considering market share. If a company has the financial capacity, a recession can be an ideal time to expand. An example from the past illustrates this point. While Blockbuster Video stores still dominated the video market, Netflix made a bold move during the 2008 recession. Their streaming video business not only gained market share, but also caused Blockbuster’s decline.
We find great wisdom in Ephesians 5:15: «So, look, proceed with caution, not as the unwise, but as the wise». If you have influence in your company and see your competitors abandoning their sales and marketing efforts, this could be a great opportunity to increase market share.
Supplier relationships are jeopardized. Many financially oriented leaders risk jeopardizing supplier relationships during a recession. They may start demanding price concessions while not paying their suppliers as quickly. However, a strategist can take a long-term view. Offering to pay suppliers earlier, or at least on time, can win favor that can help lead to price concessions or more favorable terms. This approach can also help build stronger relationships in the future.
As Proverbs 3:27 says: «Thou shalt not refuse a favor to a needy man, when thy hand is in power to do it». Instead of using and abusing your suppliers, consider paying them early or at least on time. You are more likely to form a friend for the future. We live in the present, but we should always keep the future in mind.
Copyright 2023, Unconventional Business Network. Adapted with permission from UBN Integrity Moments. Visit: www.unconventionalbusiness.org UBN is a faith in action at work, serving the international small business community.
Questions for reflection/discussion
- Looking at where you work, would you describe the overall operating philosophy as forward-thinking or financially oriented? Explain your answer.
- Have you experienced situations where company decisions were financially driven and made solely on the basis of immediate economic circumstances? What were the benefits (or consequences) of taking this view and acting on it?
- What are the possible risks of adopting a visionary approach in times of difficult economic situations? Have you personally experienced or observed any of these?
- In terms of striving to operate and manage a business or organization in the context of faith in God and His leading, how would you determine which approach – visionary or financially motivated – would be best?
NOTES. If you have a Bible and want to read more, consider the following texts: Psalm 37:3-7; Proverbs 2:6, 3:5-6, 11:14, 15:22, 19:20, 20:18; Matthew 6:25-34; James 1:5-8
Difficult task
Making decisions, both personal and professional, can be very difficult in times of economic turmoil. Who can you rely on for advice and counsel when faced with stressful and challenging circumstances? If you are a member of a CBMC group or belong to a group of committed followers of Jesus Christ, identify who you could turn to as trusted counselors in times of need.