Despite Gloom, Sun is Starting to Shine on Region's Economy
by Jan Quintrall, President/CEO BBB for the Spokesman Review, 2/15/09
Ten years ago, when I accepted the position of CEO at the Better Business Bureau, they lied to me. Those five board members told me the weather in Spokane was very similar to Colorado and I would just love the continued four seasons and feel right at home. Liars!
In Colorado you can count on your fingers the gray days in a year. The sun is a whole lot more involved in each day, and I really miss it. I love living in Spokane and my life here, but man, oh man, February really weighs on me. Toss in all the bad news about the economy and 2009 has been extra challenging so far.
So let’s take a mental trip to the beach with some good local news.
Real estate
Things are beginning to pick up. People are out looking and they are making offers; sales are happening. I make it a point to take the temperature in a number of industries as often as I can, and the reports are more positive from the real estate pros than they have been for quite some time. The number of Realtors has dropped, and those who still make this their profession are working harder, but the market is improving.
Financial stuff
The majority of banks are fine; only the massive failures get the headlines. Insiders tell me the bank failures are probably not over, but the healthy banks are ready to acquire the underperformers in many cases. And mortgage refinancing is going like gangbusters. If you want to refinance, plan on waiting four to six weeks to close, because there are that many people in front of you. If you have good credit, refinancing and buying is as easy as ever.
Investments
The 401(k) jokes are not as funny as I used to find them. I am not alone, and the BBB inquiry numbers support the fact that people are looking for advice on investments and retirement. This shows the majority are not burying the retirement fund in the backyard; they are just looking for new or additional guidance.
Cars
One of our local dealerships just about broke a sales record for January, and had it sold just two more cars, it would have. Yes, some dealers are really struggling, but not everyone is. Loans are available – again, to those with good credit – and certain models are selling. If you are in the market for a new truck or SUV, discounts are deep and there are folks taking advantage. And auto repair is humming. As we keep our cars longer, repairs become the norm.
Furniture
There are fewer furniture stores in the Spokane-Coeur d’Alene area than a year ago, but the survivors are reaping the benefit of less competition. After a dismal fourth quarter, the start of 2009 has been quite strong.
Business consultants
Yes, they are actually adding staff. When businesses need answers to new challenges, they often turn to consultants. And for good reason. As outsiders they have no ax to grind, and if the advice is bad, they get fired. Consultants can stay at the 30,000-foot level and not get stuck in the processes or the people. That kind of perspective is critical when challenges are looming. Plus, by hiring a consultant, a business does not take on the overhead of a staff person.
Employees
There are some fine people looking for jobs right now – victims of layoffs or business closings. That is good news for employers, and now is the time to upgrade your human resource assets if you can. When unemployment was under 3 percent, many hired the best of a less than optimal selection. Now the choices are better and we can get talent that was not available several years ago.
Economic downturns drive consolidation, and sometimes the market needs that culling. The strong survive; opportunity is out there for those who are in a position to take advantage. That is tough news when you are the victim of a downsizing or closing of a company. But there are industries in the recovery mode already.
One thing economists tell us is that the companies that jump ahead and lead their industry in the recovery win in the long run. Business has the tendency to pull back and put all sorts of things on hold. But it is those who sit by and wait to be sure recovery is really happening who will lag behind the leaders when business turns around.
What are you doing right now to be a leader? Good question to ponder on the beach.
Communication, Trust Can Help Ease Layoff Fears
by Jan Quintrall, President/CEO BBB for the Spokesman Review, 2/1/09
It was a normal (busy) day at the BBB office in Spokane. Phones were ringing off the hook. The cordless headsets my staff uses make it difficult to know if they are talking to a caller, a co-worker or themselves.
I walked up behind “Mary,” who was on the phone, and gently set my hand on her back. I made the universal gesture of “Come see me when you are finished” and walked back to my office.
Meanwhile, my vice president came in to discuss a couple of projects. When Mary finished helping the caller, she walked into my office only to see both of us seated, with one chair empty. All the color drained from her face. For a moment, her emotions were written large for all to read.
I was really surprised at her reaction, because Better Business Bureau management is pretty darn good at coaching and training before we ever take action to terminate anyone. I felt puzzled as to why she was so insecure. The more I thought about it, the stranger I found her reaction.
All I had wanted to do was to ask her to order office supplies for me.
At dinner that night I told my husband about the incident. As he often does, he gave me a dose of reality and made me understand how unsettling that kind of thing can be. I have worked at the top of the food chain for too long, and there are times when I lose perspective.
The following morning I walked into the morning staff huddle and brought up this incident to remind the older staff and let the newer employees know that we do not take action without a whole lot of warning, coaching and help first. But that was not the issue at all. It turned out Mary thought she might be the next victim of layoffs because of the challenging economic climate we all find ourselves in. And once I opened the subject, I saw that the entire staff is very nervous. What a wakeup call.
Like many other businesses, we at the BBB are doing more with less. We have fewer people on staff, and our communities continue to turn to us in bigger numbers every month. While our work grows, our support from the over-extended business community shrinks. I am very open and share our financial information with the staff on a regular basis so they know things are, well, let’s say interesting. But I underestimated the toll it is taking on them and their sense of security.
Even if your business has not had to lay off staff or eliminate positions, each morning’s news is full of massive cuts and general gloom and doom, and your employees are worried. How can leaders, managers and supervisors calm those fears?
•Transparency is critical. If you allow the rumor mill to answer the questions and set the tone, watch out.
•Do not make promises and guarantees about things that you cannot control: It erodes your credibility.
•Now is a good time to ask your staff for suggestions. They are wise – just listen to them.
•Create a culture that emphasizes you all are in the same boat, and let everyone figure out ways to best sail through these rough seas.
Take time to talk with them, and let them know you understand. When the group asked me if we were finished with layoffs, I told them I honestly hope so, but I don’t know. Yes, that made me feel quite vulnerable, now that I have confirmed that I do not have all the answers. But I bet they feel a whole lot more connected to the solution knowing they can trust me.
With trust come creative and often successful ways to connect to your customers and build your business. If your team feels they can be a part of the solution, most of them will roll up their sleeves and make the best of the challenge.
The most important message I saved for last: Your staff must know that management is in this with them, whether that means a salary reduction for the highly compensated, elimination of more than just entry-level positions, or even-handed benefit decreases.
How do we all feel when there are layoffs announced one day and a bonus for the CEO the next? That sends the message that while we might all be in the same boat, some of the passengers are rowing their guts out and some are in staterooms dining on caviar and drinking champagne. How hard would you row under those circumstances?
The good people we have working with us will ensure that we weather this storm, as long as honesty and respect are the first ingredients in the fuel we power our ships with.