Incentive Encounters: Taking Advantage of Truth in Tough Times

Incentive Encounters: Taking Advantage of Truth in Tough Times

When times get tough opportunities appear

By Terry Epton, CITE, DMCP I know that sounds like a "come-on" from a financial management company, but allow me to explain… In the incentive business, experience is the best teacher. As we gain it, we see forward better, primarily because we have learned by our mistakes. However, the intrinsic value of this experience is often outweighed by ill advice and people’s lack of confidence in their own decision making. This is illustrated by a popular saying: "The definition of stupidity is doing the same thing over and over again and expecting different results." In short, wise executives learn from their experiences and mistakes, the not-so-wise ones…well, you get the idea. Hidden Value A strong economy can cloak the value of individuals to organizations. It is much easier to hide poor business attributes when business is good. It is when times are tough that we can see clearly who is the most valuable to an organization. This is a time to evaluate work habits, talent, potential and the attitudes of our staff and colleagues. People who procrastinate will suffer greater losses when the competition increases. When the shine of easier deals fades, the basic truth about one’s value to the organization is revealed. Thoughtful leaders may find themselves working for somewhat smaller, yet more powerful, companies as a result of these challenging times.

I have often defined "ethics" as the gray area that exists between doing what is morally right and what is technically illegal. We have in each of us an internal gauge that monitors how deep we believe others and ourselves tread into that gray area. I have observed in past difficult times, for instance the period following 9/11, that people can move deeper into those gray areas depending on the economic pressures that come to bare. (We all have the human capacity to rationalize our actions.) The opportunity here is to see the true nature of the people and the businesses we work with and around. We can see most clearly the true nature of suppliers, clients, industry partners, competitors and ourselves when tested. It's one thing to be a savvy manager who can buy better, negotiate shrewdly and spin situations in their favor. It is another thing altogether to knowingly take advantage of others with the intent to gain advantage in the marketplace via misrepresentation, lies or deception. Our company's New Orleans office learned a great deal as a result of people’s actions and decisions following hurricane Katrina. Likewise our New Orleans customers, business colleagues and suppliers learned much about who we are and the things for which we stand. Just the "Right-Size" To use your experience in order to gain ground on less savvy competitors is perhaps the biggest opportunity available during rough times. I recall a wise mentor who told me during a tough period in the late 80's, "Terry, this will be a winter that culls the herd." In other words, the strongest and most innovative managers and companies will survive, and the weakest will be lost. When things get better you should be prepared to grow and prosper. Often during difficult times, "right-sizing" is apt to occur, to cause a company's expenses to come in line with anticipated revenues. Many choices must be made and each is an opportunity to improve your business and its prospects for the future. The past and present loyalty of employees, clients, partners and suppliers is a major factor in maneuvering through this type of decision making process. But being "lean and mean" doesn't mean being "lean and stupid." We are often asked to define the added value that we bring to our clients. Loyalty, a proven ability to accept responsibility and a history of treating your customer's challenges as your own have great value during these lean periods. Customers who have right-sized will rely more heavily on their suppliers. Therefore, does it make sense to get "mean" and dole out everything you do to find the "lowest bidder" exactly at the time you need your suppliers to know you best, when you need to trust them more? The inherent value of an ongoing partnership will reveal value far beyond what will likely be available from the "lowest bidder." Experience has taught me this important lesson. You'll need to negotiate, drive hard bargains and be aggressive. That's part of the reason of why it's called "work." What I will avoid doing, is making the same mistakes over and over again. Value is not about low prices—and it is far harder to find during difficult economic times. Chief Executive Officer of USA Hosts, Ltd., Terry Epton has been an executive in the incentive industry for 26 years and is an online columnist for INCENTIVE. As past Chairman of the Board for The New Orleans CVB, Terry is deeply involved in marketing and hospitality Industry leadership of New Orleans. Twice President of ADME, the Association of Destination Management Executives and long time member of SITE, Terry served on the Society's International Board for two terms and as an officer for four years. Mr. Epton is a Trustee on the IRF, Incentive Research Foundation. Terry was named "Incentive Travel Personality of the Year" in 1999. With both the Certified Incentive Travel Executive (CITE) designation and the Destination Management Certified Professional (DMCP) designation, Mr. Epton believes strongly in on-going industry education and community involvement. *** By Terry Epton, CITE, DMCP www.managesmarter.com