Business leadership in global economic slowdown.

John F. Kennedy once said: "When written in Chinese, the word 'crisis' is composed of two characters. One represents danger and the other represents opportunity." Difficult times require fast reaction from one hand and managed change process plan, from the other hand.

It is also the time where business leadership is under enormous pressure, more than the usual, to perform in a decisive way to overcome and cope with the situation.

Some managers may choose the short term approach of dramatically cutting costs by reducing headcount. This is a very effective short-term approach which may contribute to mid-term profitability maintenance. However, it is definitely not a robust solution as the objective problem remains, and it will be much difficult to execute a growth plan with very limited resources and low morale (as a result of massive cut-downs with no long-term plan).

Profitability is not enough; it is the accelerating growth process that creates the sustainable value. The only way it could be achieved is via long-term approach.

Leaders should adjust faster and be even more agile. Sure, some immediate actions are required, but it should be part of long-term approach. Some may say that Crisis is a "great opportunity to learn" but the truth is that no one really likes recession. Leaders need to face reality and make sure that the teams are well informed and aware of the difficult situation. It is more likely that by sharing possible directions toward solutions, the teams would probably be very supportive of management’s decisions.

I am not suggesting that management or leadership is sort of popularity contest. What I say is that unpopular discussions or decision are part of the job of any leader. It should be fairly presented and shared with the teams. Eventually, it will result in support and commitment of team members.

Strong plan, supportive business leadership, empowered teams and healthy corporate culture should contribute significantly to better business preparedness in challenging times.