Is A Recession Ahead?  How to Prepare for the Unexpected

“The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown.”

2023 is the unknown. Every business owner I’ve known wants predictability.

The Fed continues to raise rates to curb inflation, and many large employers continue to lay off workers. McKinsey & Company published What is a recession? Including this image of what it looks like. Fortune joined in with How CEOs can lead in a recession and come out stronger: 5 powerful strategies from corner-office veterans. Fred Reichheld from Bain & Company posted this Big Ideas 2023: Battling Inflation, Companies Can’t Just Buy Growth encouraging the value of their NET Promoter System.

Every news and social media is sharing their views and opinions about the coming year, with expectations of a downturn in the economy.

RESILIENCY

Articles espousing the value of resiliency are prevalent, as the means to deal with a recession.

What is resiliency?

In 2012 I discovered I had Acute Myeloid Leukemia. I spent 7 months in the hospital. At the close of month 5, a doctor encouraged me to spend the time I had remaining with those I loved rather than endure a clinical trial. My experience provides me with valuable insights into resiliency.

The ability to be resilient through challenging times determines success or failure. Ryan Holiday’s The Obstacle is the Way provides examples of famous figures in history who were stoics and used obstacles to overcome their biggest challenges.

I learned by enduring 5 chemotherapies, and one clinical trial, resiliency is not something you pick up going through your obstacle. Almost always, it’s a prerequisite to being able to endure and then thrive afterward.

Preparation is necessary to overcome any challenge. Yes, you do gain valuable knowledge, experience, fortitude, and courage through your battle. More important I feel is having the habits, mindset, and courage prior to your encounter, to beat it in the first place.

PURPOSE

Resiliency starts with your purpose. As I shared in Without a (Core) Purpose Any Problem is Too Big, “when the purpose is big enough, the problems incident to its accomplishment are small enough to bear with grace.”

Do you have a purpose for yourself? Does your business have a purpose big enough to withstand the threat we face in 2023? Many businesses managed to survive and thrive in the past three years despite the turmoil of the pandemic. These companies had the proper foundation in place to weather the storm, defy the obstacles, and not only tolerate the issues, but find a way to overcome them.

These businesses had a purpose. They were inspired by a bigger emotional reason than fear to win despite the handicaps COVID provided.

My purpose was my family. Enduring what I went through helped me create a stronger purpose.

People and companies with a defining, inspiring purpose, get more accomplished in shorter periods of time.

DISCIPLINE

Most of the disciplines and habits I used to help conquer AML were resources and tools I was already using.

Participating in athletics, continuing to run, exercise, as well as my faith, and the use of affirmations, were powerful foundations to aid me in my journey.

Critical as well were the principles I used from my Scaling Up coaching practice. Utilizing the One Thing focus took on a more meaningful emphasis when you know your life depends on achieving it.

In The Discipline of Perception you’ll find a prescription from John D. Rockefeller, Ryan Holiday, and why the Scaling Up formula works so well. If you see the impending economic downturn as paralyzing you’ve already lost. Making mistakes isn’t mortal.  Failing to learn from them is.

The critical 3 Strategic Disciplines: Priority, Metrics, and Meeting Rhythms kept my focus on the process. In Atomic Habits, James Clear noted this is more important than having a goal.

Having a successful system keeps your team focused, prevents distractions, and rumors, and keeps your team resilient through turbulent times.

PLAN FOR SUCCESS

On January 11^th you can learn how to create the disciplines, differentiating strategies, greater accountability, and measurement required to buoy your organization through turbulent times. These resources and tools have proven so valuable you will not only survive, you will thrive, while others languish in mediocrity or failure. Attend our CEO + Leadership Bootcamp - Annual Planning Workshop to learn how to grow and improve your company and team’s performance.

To create an environment where everyone is inspired to give their best, contact Positioning Systems today to schedule a free exploratory meeting.

Growth demands Strategic Discipline.

Roger Martin wrote Playing to Win: How Strategy Works with Alan G. Lafley, two-time CEO of Procter & Gamble. Martin’s new book, A New Way to Think: Your Guide to Superior Management Effectiveness shares his belief Execution is the same as Strategy. We’ll explore why this belief should be a core foundation of your strategy, in the next blog.

Building an enduring great organization requires disciplined people, disciplined thought, disciplined action, superior results, producing a distinctive impact on the world.

Discipline sustains momentum, over a long period of time, laying the foundations for lasting endurance.

A winning habit starts with 3 Strategic Disciplines: Priority, Metrics, and Meeting Rhythms.   Forecasting, accountability, individual, and team performance improve dramatically.

Meeting Rhythms achieve a disciplined focus on performance metrics to drive growth.

Let Positioning Systems help your business achieve these outcomes on the Four most Important Decisions your business faces:

Positioning Systems helps mid-sized ($5M - $250M+) businesses Scale-UP. We align your business to focus on Your One Thing! Contact dwick@positioningsystems.com to Scale Up your business! Take our Four Decisions Needs Assessment to discover how your business measures against other Scaled Up companies. We’ll contact you.

NEXT BLOG – Execution – It’s the Same as Strategy