Surviving a Downturn

Economic highs and lows move in cycles.
We see "boom and bust," ups and downs, over and over again.
This doesn't mean that your career has to
follow the fortunes of the economy exactly, though. There's a lot
that you can do to maximize your chances of staying employed
during a recession, and to ensure you're best placed once things
pick up again.
And here's the most interesting part: Most of the strategies you need are
useful during a strong economy as well. Anything that pushes you to pay closer
attention to your environment, and makes you a
more valuable member of staff, is good – no matter what.
The Two-Part Plan
A good strategy for an economic downturn
involves two basic elements:

Creating value as an employee.
Understanding your environment.

The strategies you'll learn in each area will
help you survive – and succeed – in your organization. Your
"survival" in your job may depend on your flexibility, cleverness,
and creativity. What's more, if you think about how to survive now, you'll
be well prepared to change direction if the need arises.
Creating Value as an Employee
It's a fact of life that downturns and
recessions often lead to layoffs.
As the economy weakens, companies have to cut
costs. And the result of that is job loss.

Your goal is to keep your job. What's the best way to do that? Do
fantastic work.
The first people to go are usually those who
contribute the least value. This is particularly true if you're
one of several people on your team with similar or identical job
descriptions. Who would want to lay off a star performer? Prove
your value in a variety of ways:
Work Smarter

Connect your work with the bottom line. Where you can, focus on
activities that directly generate revenue and profit for your
company, or directly benefit it.
Be flexible with your priorities. Economic instability leads to a
volatile environment – both internally and externally. Be prepared
to change your own priorities as organizational priorities change
Stand out from your co-workers. Be more productive than the rest
of the people on your team.
Be visible. The more people who know you and the quality of your
work, the better.
Promote yourself. Do more than expected, take on additional
work, and find ways to work closely with your boss.
Build interpersonal skills. People usually prefer to work with
agreeable, pleasant individuals. Help out, treat others with
respect, be friendly and supportive, and bring a positive attitude
to work every day.
Keep track of what you do. Be able to prove your value, and the
importance of your role.
Maintain a clean work area. This may sound silly, but
impressions are very important. When your work is neat, others may
assume you have things under control. Companies see this as a
valuable quality.
Control costs. When things
are going well, it can make sense to spend money reasonably
freely – this allows you to take quick advantage of new
opportunities. In a downturn, "cash is king". Be frugal, and
help your company cut costs sensibly.
Keep working positively. If there are rumors of bad news, many
people will get depressed and drift. Keep thinking positively and,
if change does occur, make sure that "you're part of the solution,
not part of the problem"

Doing a better job with the resources you have is only one part of
enhancing the value you offer. You should also acquire new skills
and become more valuable by increasing the depth and scope of your
contributions.
But remember that in a downturn, training budgets are typically
the first to be cut. Here are some creative ways to maintain a
continuous learning attitude
Keep Learning
Commit yourself to continuous learning.

Look for self-directed learning opportunities. Mind Tools is a great example!
Read everything you can about your field.
Share knowledge with your team and colleagues.
Learn about other departments. What work do they do, and what do
they need to complete their objectives? "Lunch and learn" sessions
are a great way to accomplish this – in other words, invite a
colleague to lunch to learn about what he or she does, or get
departments together in larger groups.
Volunteer. For maximum value, choose an area of work that you'd
like to learn more about and that would benefit your company.
Consider funding further education. It may be worth it to pay
for outside classes.

Remember that your co-workers are probably working hard too. To
survive a downturn, be prepared to do more and be more creative
than others. That means keeping a close watch on what's happening
around you and adjusting your plans accordingly.
Understanding Your Environment
You should be concerned about three key
"environmental" elements: your work environment, the "macro"
economy, and your personal environment.
Your Work Environment
Know what's happening around you, and look for ways to work
intelligently.

What is your department's reputation? Are you in a strong
position because of the work you do? Use some of the tips
mentioned earlier to increase the overall value of your work.
What is your boss's reputation? Working for an influential
person is a big plus during a downturn. Find ways to become known
by people with great reputations.
Look for changes in strategy and direction. Understand how these
changes may affect you and your team. When you're aware of what's
driving company performance, you can better adjust your work and
priorities to maximize your overall value. To learn more about
performance drivers, see Performance Management and KPIs (key
performance indicators). In particular, be aware that there's
likely to be a huge pressure for organizations to cut costs during
a downturn, which can mean the closure of unprofitable ventures or
programs. Be alert to this.
Watch for all job vacancies in your company. Job openings don't
necessarily have to be in your department, and the positions may
not yet be available. When you evaluate potential
intra-organizational career changes, keep in mind the total value
of the role and the skill set that you can transfer. 
However, be aware that if jobs need to be cut, it may be rational
for organizations to operate on a "last in, first out" basis.
Evaluate risks carefully before you make a move.


The "Macro" Economy
Just as your company's "micro" environment is important, so is
what's happening in the outside world. Understanding these larger
forces will help you make better long-term plans.

Look at your industry and other industries. Which are most
impacted by current events? Try to predict the downturn's effect
on your specific industry, sector, and company (don't be too
pessimistic – many different factors will affect this.) If your
company is on the edge of the affected area, you may be able to
relax more and wait for things to improve.
Analyze trend data about which careers are dying or becoming
more in demand. Figure out where your career fits in, and be
prepared to change directions if necessary. The sooner you start
planning, the better.
Prepare for dramatic changes. Think beyond your community, and
identify what's taking place nationally and globally. What big
risks are you facing? What opportunities are opening up that you might not have considered
before?

Your Personal Environment
Protecting yourself is extremely important in a downturn. If your
company goes out of business and/or you lose your job, you need to
know that you'll survive.

Update your résumé. You might never need it. But if you do, you
don't want to rush at the last minute to describe what you've done for the past 10 years.
Write one or two cover letters. Again, this puts you in a
position to act quickly if you need to.
Network, network, network. It's so important to develop a set of
people you can contact for information, ideas, and potential jobs.
Include family, friends, and colleagues as a way to learn about a
wide variety of opportunities. See Professional Networking to help you put together a great plan.
Think about ways to repackage your skills. Think about which
skills you can transfer to other fields and jobs. Assess the
opportunities, and look at how well your competencies match other
job requirements. Where there are gaps, make a plan to acquire the
knowledge and skills you need.
Remain calm and levelheaded. When times are hard, it's easy to panic and do something unwise.
It's also easy to ignore what's going on around you, and blindly
hope for the best. Make sure that you make decisions calmly and
rationally, based on the best information you have available to
you.
Look at all your options. This might be a good time to reassess your long-term career goals
and determine what kind of changes would work best for you.
Downturns create opportunities as well as problems.

Assess your personal finances. The ability to make a career plan and stick to it often depends on
having the economic resources to maintain your lifestyle. If you
suddenly get laid off, you should have at least three to six
months of living expenses set aside. This way, you won't have to
take the first job that comes along.
And don't count on pay raises or bonuses with a new job – you might end up with a pay cut, so look at the worst-case scenario when budgeting.
Realistically, many people don't have this level of savings. If this includes you, now's the time to review your finances, so that you can build up this buffer.




Key Points
While you don't control the economy, you can often control how the changes will affect you.
You have choices, so don't panic or let fear rule your behavior. Take some time to review your resources, and put yourself in the most employable position you can. Don't just settle for what happens to you.
Be proactive, think about your long-term career strategy, and be smart about your choices. You can survive and succeed in a downturn if you maximize your value, understand and manage key elements of your environment, and prepare yourself properly.