The current economic turmoil will have its negative effects on individuals for years to come.
If you are in a position to make the hard choices, this is for you.
.If you are affected by those choices, I hope this helps you understand.
The company requires survival, and that survival requires certain decisions, most of which are distasteful.
On top of that, some decisions automatically eliminate certain future options of pursuit.
When we decide to abandon an operating market, we flush the sunk costs of opening it, and we make it very unlikely we will return.
If we had not opened it in the first place, we could always come in at a later date.
But exiting might be required.
As we choose to restrict capital expenditures, we automatically restrict potential growth.
As markets grow, we require new equipment or expanded facilities to accommodate it. If there is no money, there is no expansion, there is no growth.
This is the difficult choice.
As we address payroll considerations, we make similar restrictions in our future.
We presumably have competent people working in the right positions.
If we lay them off, chances are that they will end up working for another company and not be available to us in the future.
Worse, they may go to work for a competitor – in spite of any covenants they may have signed.
When we need to accomplish the work once again, we will be put in a required position of hiring and training someone to do the job.
Extra expense in the future is always the cost of replacing cost-savings of the past.
But, survival, now, is paramount.
We must make the hard choices that affect our future abilities to respond.
We also must try to minimize that future effect and make our decisions in line with our Mission.
Do not be impulsive in this most critical environment.
So, when survival is the requirement, make the correct decisions swiftly.
Do not hesitate and hope that the circumstances will change – they will, but not likely for the better, or not soon enough to be of any help.
Gauge the consequences, accept the risk, make the decision, take the action.