Kavan Choksi: Tips for Businesses During a Recession

Kavan Choksi: Business Best Practices During a Crisis

The world has gone through different economic recessions and crises, from the Asian financial crisis 1997 to the collapse of the U.S. financial markets in 2008 and this most recent COVID-19 pandemic. In business organizations, survival became the name of the game. However, how should senior executives and leaders lead their organizations during these trying times? Today, Kavan Choksi shares some critical workforce management points when adapting, becoming agile, and making winning teams in your businesses out of unfortunate circumstances.

First, Kavan Choksi says you have to prepare a contingency plan.

Create action steps based on corporate function and operating unit such that the steps are clear and everyone knows what to do. This plan involves headcount and hiring changes; compensation, benefits, and incentive plan adjustments; and asset divestitures. It also includes expense cutbacks, a hierarchy for cost-saving initiatives, as well as considering other options, such as outsourcing non-core activities that aren't strategic to the business.

Next, you have to keep your people motivated.

During financial difficulty, Kavan Choksi says that employees will naturally be worried about job security, especially in the private sector. Help keep them calm and put their psychologies at ease without sugarcoating the situation. It starts by communicating with them regularly, encouraging them to open up to their managers, and continue participating in company activities and learning initiatives.

Lastly, see it as a teaching moment.

Uncertainty during a financial crisis naturally breeds anxiety – but it can also be an opportunity to learn, engage workers better, and make them stay laser-focused on the job at hand. Urge everyone to contribute better and see how their job fits into the business strategy and its mission to survive amid the hard times. If there's agility, people will solve problems instead of mourning over them and innovate for the years to come, Kavan Choksi adds.

For insights on business, economics, and finance, follow this page of freelance business management consultant Kavan Choksi.