6 Recession Resilience Lessons in Tech and Digital

Recessions bring fear and uncertainty of the unknown for business leaders, but unlike a pandemic, there is also more warning for business owners to rethink their strategies and plan ahead. And for employees to re-evaluate their options for growth as we all get prepared to ride through an economic slump.

As I continue to speak with clients and industry leaders about their concerns, challenges, and preparations; and, as someone who has been laid off during a recession, closed, started, and built businesses through downturns in the Tech industry, here are 5 lessons that I wanted to share with you from my journey when it comes to finding ways to create greater business resilience.

1) Keep Communicating with your Clients

If you are working in any kind of client-facing role now is the time to double down on connections and conversations with existing clients and prospective new ones to see how you can keep them happy and coming back for more. The nature of the problems you can help them solve are still going to be the same but "the how" will need to be explored further with them

2) Uplevelling your Vision, Strategy, Capabilities and Risk Management:

One of the biggest benefits of working in industries like Tech and Digital is that there is always scope for growth and innovation.

For greater growth opportunities that allow for innovation, there has to be a commitment to your vision, your capabilities and the benefits you can deliver.

This applies just as much to businesses knowing their identity as it does to employees who may need to position themselves better for new jobs and better work.

Fortune can favour the brave. The forecast may look bleak today, but with a consistent focus on the right activities, new possibilities can be created. Especially for people who are prepared to take regular action and calculated risks to ensure a smoother ride.

3) Your People and Values

We live in an imperfect world. Businesses may need to cut costs during downturns. If you need to go into survival mode in particular then it's even more important to decide who's staying with you quickly. You need the right support team.

If you're able to take more risks to thrive then take more time to hire the right people. Either way, it pays to be open, transparent, and to do the right thing.

Things will go wrong. It's ok not to know the answers and admit that you won't know either. Transparency, Authenticity, and Communication from Leadership are even more critical during such times because it helps build trust and loyalty.

All of this should also be BAU. It is easier for companies that already have reliable processes and a collaborative culture that embraces shared values that can help their teams ride through the good and the bad times more smoothly.

4) Be even more open to Partnerships, Collaboration, and Networking

You are not alone. Although there can be a temptation to get your head down and focus on what you know or think you know, growth and new ideas happen from exploring the unknown. Connections and curiosity to find effective ways to solve bigger problems, through specialisation help companies grow.

In the right circles, with the right value proposition and strategy, suppliers, complementary and competitor businesses are more likely to be open to newer ways to collaborate and partner with you. Or introduce you to others.

5) Prioritise, make decisions and Commit to things when you say you will.

It sounds obvious but this is one of the key Leadership criteria that many leaders struggle with due to various types of fear.

It's better to end up making the wrong decision than to make no decision. Especially when it comes to taking action and solving problems consistently to allow your team to build momentum.

6) Profits First

One of the most valuable books I read at the start of my entrepreneur journey was Profits first by Mike Michalowicz. All of the below need to be taken into consideration in the context of prioritising actions and core processes that lead not only to revenue but to greater profitability. And it's in these times, where cost increases and price reductions of goods and services need to be more carefully weighed up against risk and reward.