Watching the news can change your thinking in an instant.
But should it?
Times are always uncertain. That’s part of what makes business exciting—constant challenges, opportunities, and complexities.
It’s easy to relax during the good times—spending less time on scenario and contingency planning, ignoring signs of failure, skipping regular SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), overlooking team evaluations, etc.
We can take a page from special operations teams. They never lay back. They’re always up-skilling, drilling, maintaining fitness, running readiness drills, and engaging in scenario planning.
So, what is the message?
What’s happening externally—tariffs, a sliding US economy, global instability—should not affect how we operate and lead our companies.
This is the ideal time to dust off the playbooks (if they exist), reconsider how we meet and communicate, and plan strategically.
Ask yourself:
- Where do you stand with cash and capital resources? How is your relationship with investors and bank(s)? Don’t assume!
- Have you stress-tested your financial models? Spreadsheets lie.
- Are there opportunities to reduce non-essential expenses? Watch for Expense Creep.
- AI – Are you ahead or behind? (Most are behind.) Who’s responsible for this?
- Conduct a team analysis. Who aligns with your core values and skills—and who doesn’t?
- How effective is your internal communication?
- Is your culture supporting people? (Hint: They’re stressed too.)
- How well do you understand your competition? Are there opportunities for acquisition or increased market share?
- ABR – Always Be Looking, Key talent is out there – are you looking?
- What risks are being overlooked? (Cybersecurity, disaster recovery plans, etc.)
I heard a recent story that brought this into perspective.
It is about a company that took in Private Equity (PE) money, and lots of it. The leadership was then informed that they had new bosses, quickly given clear directives on deliverables that were due in 2 weeks. Develop complete plans and playbooks for revenue declining by 10%, 25%, 50%, and 75%. Cover every contingency, people, processes, strategy, SWOT analysis on every division. (Product lines). It began with a facilitated offsite meeting with the leadership team, then they dug in. Department by department. Take a look at the items listed above, that was a short list as to what was covered.
The Company was doing well, many felt this to be a waste of time and resources, but they had no choice, they had to deliver the goods!
After numerous redrafts, the contingency plans were approved then put onto the shelf as their profitable growth continued.
Then the bottom fell out. Revenue dropped quickly by 20%, then slowly to a 50% drop.
The plans that had been developed were needed, immediately. They were prepared and took decisive action. After licking their wounds, they began a period of layoffs and cutbacks, followed by strategic acquisitions and key hires. They began meeting more often, more honestly, more decisively. The next few years, they experienced explosive growth, gaining significant market share, innovative new products, culture growth, and alignment.
When were they pushed to prepare?
2007—just months before the crash of 2008.
Is your company ready?
Are we facing headwinds or tailwinds? Who knows? Plan for both – intensively and immediately!