“The difference between a smart man and a wise man is that a smart man knows what to say, a wise man knows whether or not to say it.” Frank M. Garafola

Will the business survive this downturn? Will I be able to hang on to my job?  Common questions on the mind of all business owners and employees alike in these difficult times. It is only natural to have an heightened level of anxiety during stressful periods. However, if we were to hold all of that stress within ourselves and not have an outlet to release it, things could become ugly very fast. People begin to talk, rumors about layoffs begin to circulate, productivity levels fall, anxiety increases and just about any call from senior management begins to imply that you are about to be fired. All of this can be dealt with reasonably through effective communication. Senior management needs to provide all stakeholders with a clear and candid message about the health of the business and where it is headed. If a culture of candor has not been created in the organization this can lead to uncomfortable and awkward situations. Such an environment needs to be created.

Listed below are some ways to communicate effectively during such periods:

1. One on one sessions: Ensure that you have individual sessions with key players on the team, assess their current needs and answer any concerns they may have. I have found this to be a most effective strategy as it gives the person concerned a platform and ability to speak his mind, at the same time enjoy privacy about his concerns.

2. Group information sessions: Individuals who are responsible for broader functions like operations, marketing, finance and human resources should give talks on how the current situation is likely to impact the business and strategies that can be used to get through this period. Once again this provides the ability for individuals to get an idea of the company from different angles and provides valuable feedback.

3. Layoffs: Firing people is never easy and is something I really do not like doing at all (I don’t think anyone really enjoys it). However, when it needs to be done it should be done swiftly and as soon as possible. Delaying the inevitable is not a smart strategy and only compounds the problem.

4. Updates from senior management: I usually send companies I am involved with updates after every quarter. When times get tough I increase the updates to a monthly or even bi-weekly schedule depending on the situation. This keeps everyone focused on what is important and on the same page.

Depending on the structure of your business I recommend doing whatever is necessary to ensure that everyone is able to bring their concerns forward. Whether it is through group meetings, online forums or one on one sessions. Mechanisms need to be in place so that communication is made feasible as easily as possible. Failure to do so will further deteriorate the business and one could end up losing a lot of key players.