For some, these are hard economic times we live in: Government debt is increasing, tax revenue is declining and prices for goods and services are increasing. Businesses and consumers are feeling the pressure. Almost all economic sectors have shed jobs and some continue to do so. Many companies and families are forced into bankruptcy. Hope has been lost, resulting in others taking avoidable, yet irreversible drastic actions. Where there is life, there is hope. By Nimroth Gwetsa, 09 December 2014.

Hardship affects companies and people differently depending on their economic situation. Most companies can withstand the pressure. Human beings are naturally resilient. However, the resilience for some companies and people has severely waned after experiencing persistent lack of sales and job losses. Successful sales for companies and job security for people give a sense of purpose and meaning to their existence.

All companies and human beings would experience life threatening situation or economic devastation in their lifetime. Some would experience both, but no one is immune from experiencing at least one. I can make these statements boldly because life teaches us and has taught many before us that nothing in this world lasts forever. For those yet to experience life threatening or economic devastation, even good times would not last forever. Forewarned is forearmed.

Living life without expecting devastation is failing to prepare for disaster. Expectations of hardship, especially in good times, should inspire companies and people to prepare adequately for the worst. Preparation in good times cushions against the worst the future could bring.

How then can companies and people cushion themselves against calamities?

Economic hardship is the absence of growth. It is not the presence of draught. Draught or lack comes when “things” run out. Things run out when there is insufficient supply to demand. Mismatch in supply and demand is a symptom of a lack of growth either in the management of demand or supply or both. Nevertheless, without growth, resources cannot be preserved. In which case, available resources (reserves) would be depleted and this would ultimately lead to increased failure and hardship.

Growth could be seen as potential, which when fully realised leads to prosperity. Potential needs to be exercised to be tangible. The realisation of this potential creates resources which, when well-managed and preserved, provide insurance against financial difficulties in future.

Lack of growth manifests itself the moment companies and people inadequately apply themselves. This happens when many “good things” previously done are now trivialised. For companies, the rot begins when more emphasis is placed on company’s internal rules and procedures at the expense of focusing also on the impact of its effort on customers and what customers are telling them. For employees, the threat of job losses begins when they become secure in their jobs and no longer exert themselves but have little regard for the company’s welfare. Ultimately, growth would be diminished when there is increased consumption of available resources. It is like spending on vain luxuries at the expense of growing good assets.

The recipe for growth and success is clear then. Potential should be fully realised so growth could emerge from such efforts. Growth chases bankruptcy away. Companies cannot grow unless they focus on improving their internal operations, offerings and customer services, while having regard to competition and prevailing operating conditions. People cannot achieve job and financial security unless they fully increase and improve their performance. Companies should not relax their efforts because of weaknesses of competition. Likewise, employees wishing to secure their jobs and earnings should not be discouraged by actions of lazy ones. They should improve their contributions to the company.

Companies and employees should use their past performance to improve their next performance. The effort would be noticed. Even if it goes unnoticed and unrewarded, their good deeds would not be in vain. They would reap what they sow. Time is the only factor impacting on when the reward for good effort would be earned.

Unprofitable “growth” is not good growth. In companies, when growth is realised at the expense of quality and costly operations, such growth would eventually be unprofitable. Likewise, employees realising career growth at the expense of their health and welfare would actually be losing out. Good growth focuses on overall gains achieved. Good growth comes when good things are increased and bad things decreased. Good growth is an outcome of increasing good things such as productivity; sales; quality and customer satisfaction among others, and decreasing losses; redundancies and rework among others.

Realising growth would be unprofitable if nothing is preserved to spur on another growth and to provide insurance against future financial losses. With knowledge of winter following summer, it would be unwise to consume all summer produce without preserving some for the barren season. Investing in relationships could provide some insurance needed to overcome periods of severe lack. From a human perspective, even such relationships are usually conditional. Something has to be given to gain something back. Even if it is unconditional, lessons are expected to be learned and such failure should not be repeated in future. In other words, growth in knowledge and wisdom is expected and help would not be given unconditionally for same failures in future. Therefore, preserving some gains during seasons of plenty should be inevitable to avoid future disaster.

Companies and people alike should be circumspect about lifestyle and investment choices they make. The outcomes of which could spell future disaster or prosperity. Performance would be considered good if realised by those impacted by it, especially those rewarding such performance. Employees giving their best performance and improving their knowledge and abilities would gain job security and financial reward. Even if the company they work for closes, it would be easier for them to be placed elsewhere.

Profitable growth from which some resources should be preserved to ensure growth and prosperity is primarily depended on:

1. Decisions made;

2. Performance exerted; and

3. Behaviour displayed.

Companies and people alike should decide that unless there is growth, there would be no lasting prosperity. All efforts should be focused on achieving growth while balancing factors that impact on that growth. The decision should influence priorities set for important initiatives the company and employees should focus on to realise good growth.

Knowing priorities of important initiatives to focus on would be worthless if no effort is exerted on them. Sloppy execution is not the answer either. Sloppiness leads to rework and losses would be incurred. The quality of effort exerted determines the success or failure of those initiatives and their outcomes.

Good effort exerted should be inspired by presence of good attitude. Good attitude influences good behaviour. Knowing what needs to be done and doing it would be inadequate if accompanied by bad attitude. Bad attitude is like a toxin slowly poisoning the entire system. There needs to be a shift in attitude and behaviour from “how much could I get away with by doing the minimum” to “what is the best I could do and achieve with what I have”. The former is based on complacency and leads to poverty. The latter is based on an enterprising spirit and leads to prosperity.

For companies that have just been closed and people who lost their jobs, it is not the end yet. Seed remains dormant until it is placed under soil and watered. Take lessons from past mistakes and losses. Work on relationships and be prepared to take on “low status” assignments to start again. Time may be moving slowly to your discomfort, but it is certainly moving steadily enough to help you get firmly rooted to withstand future storms.

Take courage and focus on your immediate task of making the right decision that you will start again and will endure. Then do all you can to be the best in what you would be doing. Finally, change your behaviour and attitude to look for opportunities for growth in everything you are exposed to. Like a dormant seed, always look for opportunities to grow even when exposed to little cover and water.

To those companies still in operations and employees still employed, heed the lessons and preserve resources for the inevitable draught season that would follow soon after the occurrence of the next expected season of prosperity.