The 5 Stages of Coping with the Recession – Shock, Assessment, Plan, Support, Rebuild

The current recession and the ensuing loss of jobs and financial insecurity can be very scary, if not devastating, especially given the size and scope of this economic downturn. It seems it is all everyone is talking about. And most marketing executives are not expecting the economy to improve until 2010, according to a survey by Marketing Sherpa.

As a business owner and a consultant who coaches companies on organizational effectiveness and improving efficiencies, the recession has affected me on a number of levels.  I recognize that the best practices I normally recommend to clients are just as relevant for my own firm, and even for our family facing the worst economic crisis in memory.

Like any traumatic or life changing event, dealing with the recession has many stages that one goes through:

1. When the shock hits remember there is always Hope

When the bad news hits, whether it about job loss, potential bankruptcy or just tough economic belt tightening, we all begin to function in a state of shock. The first reactions are, “How do I process this…How should I react…What do I say to people?” Then, as the news starts to settle in, the next questions become, “Can we get through this and what should we do next?” It seems like most of the people, governments and organizations around the world have been functioning at this level through the last quarter of 2008…in a state of shock.

Hope can be like a ray of light that can guide you out of shock and help focus on decisions and positive actions that are required. Hanging on to hope can be difficult with the media blasting the latest doom and gloom statistics each day. But, being realistic is key. Don’t bury your head in the sand, hoping that the economy won’t affect you. Instead, a positive sense of realistic hope can help propel you to proactively seek out opportunities to survive and potentially prosper in this difficult time.

2. Take a critical and realistic assessment of the situation

Too often, companies just react, cutting a percentage of their workforce or expenses. In the case of governments, they throw a ton of money at the problem, without really doing a proper assessment of the situation and the impact their reactions will have on the future health of the company or country. It is critical that you better understand how to address the challenges you face by going through your own Discovery Process. As in a traditional SWOT analysis, review your Strengths, Weaknesses, Opportunities and Threats. Assess what has been successful or not in the past. Explore and look externally for ideas and potential solutions that might work for you. Seek out information by talking to experts that can help you deal with your specific challenges.

3. Develop your Roadmap

Develop a vision of where you want to be and compare this to where you are today. This will help you identify the gaps that will provide the foundation of your roadmap. A roadmap helps determine your “best fit” course of action, based on your circumstances and vision. It outlines the strategies that you should use to help you get a new job or help your company through the economic slow down.

Planning your course of action in detail with milestones and contingency plans to help you keep the course, especially if things get more difficult. Part of your plan may include major cuts in expenses to deal with the short term situation, but this may put your business at risk, have serious side effects or make recover that much more difficult. Other solutions should be considered, including moving to more cost effective methods. For example, moving some of your marketing budget from traditional media to modern social and digital media can help save significantly on overall costs. Another strategy is to review your current processes and structures to look for opportunities to improve effectiveness. Technology can also play an important role in helping to make your firm more efficient. Today, using supportive technology doesn’t have to cost a lot. There are many online Web applications that help companies improve their operations without having to invest significant dollars in technology.

4. Tap into Support Networks

A wealth of knowledge, expertise and support exist outside your doorstep. Professional experts both free and paid for can provide valuable resources in helping guide you through the difficult times. Today there are so many ways to access free information and support. The Internet provides an endless array of Web sites, blogs and podcasts dedicated to providing helpful information on every topic imaginable. Outsource expertise to fill internal business gaps without investing in additional headcount. Tap into social media and join associations or groups to share information and ideas for solutions. Or create a group yourself. Use mentors who you admire and trust. This could be a career counselor, successful entrepreneur or inspiring business leader. Listen to advise from caring and supportive people – surround yourself with positive energy that helps support a proactive approach to dealing with your situation.

5. Take Time to Recover and Rebuild

Recognize that the journey you are on can be educational and result in real positive change for you and / or your business. Take stock in these changes so you don’t lose perspective when things get back to normal. Celebrate the small victories as you go along. This will help you maintain the momentum needed to get through the difficult times. Take time out to rejuvenate. Too often we are so focused on the end goal of getting ourselves out of the situation that we put ourselves and our organizations under incredible stress which can be very harmful in the long term. Once the economy begins to turn around, reassess the situation and begin to plan for your recovery.

Posted by: Lianne Bridges

Lianne is a founding partner of Bridges Horizon, providing Marketing Transformation Consulting Services. Lianne has spent the past 20+ years managing and consulting across an array of sectors from B2B to Not-for-Profit, including such world-class organizations as: Aeroplan, Bombardier, Pfizer,  Nabisco, Plan International, Southam News, United Technologies, the YMCA and Alcan, to name a few.