Tough Times Hurt More Than Just the Bottom Line
In the current harsh economic climate the one thing on everyone’s mind, both business owners and individuals, is money. Cash flow, debt repayments and investment losses to name just a few, along with “how we are going to dig ourselves out of this financial rut that we are stuck in?”
And yes, whilst money is most definitely the main concern here, a recent statement by Dr Simon Moss from Monash University highlights the fact that we must try to not let our financial worries impact on other areas of the business.
Understandably, executives and business owners across Australia, and indeed around the world, are becoming increasingly stressed about how to handle the “money” side of things. On top of that, another thing to be aware of at times such as these, is that it is only human nature that we are more likely to make the wrong decisions when put under pressure.
Dr Moss says that stress causes the shut down of the mechanisms in our brain that help to provide a broader perspective and insight when addressing a problem or making a decision.
Consequently, decisions that are made during a stressful time can potentially have a long lasting and damaging impact on a business.
Essentially, these decisions are seen to be made with the business’s short term survival in mind, and without necessarily pausing to consider how they might affect the company’s long term goals and intended direction.
Bad or wrong decisions that are made in stress and haste can result in unfavourable situations such as reduced productivity or progression, unhappy employees, poor recruitment choices or below average customer service standards. This could be due to the fact that a majority of executives and business owner’s attention is focused on how to just stay ahead.
It can be seen that in uncertain times, employees respond better to leaders and managers who aim to provide guidance and vision, rather than emotion-driven “quick fixes”. It is important that managers learn to trust their intuition when making theses important decisions. They have got to their current position based on their business acumen and skills and should rely on that accrued knowledge to get them through the tough times. If nothing else, admitting that they do not have the ultimate solution and seeking further advice in order to arrive at a conclusion will be better regarded by all those involved in the long term future of the business.
The Quinn Group provides legal, accounting and financial planning advice to businesses and individuals. As well being a Chartered Accountant and practicing lawyer, the Director, Michael Quinn, also acts as a consultant, coach, educator and mentor. If you would like professional advice on the best decisions for yourself or your business in these tough times please contact us on 1300 QUINNS or click here to submit an online enquiry.