The Economic Times Q & A Session with Robin Sharma on the Economic Crisis

Q: 1) How are corporations reacting to the global economic slowdown?
A: 1) The people and organizations I work with across the world as a leadership advisor are going through a period of intense turbulence. Most businesspeople are extremely concerned over what will happen over the next 2-4 quarters. And of course, every organization is engaging in a process of rethinking the way they are doing business in this economy as well as doing a lot of belt-tightening to get through this phase.

Q: 2) Are their responses adequate or inadequate to the financial crisis? What do they need to do?
A: 2) That depends on the organization. The best companies have de-risked significantly, so they are in relatively strong positions at this point. They'll not only weather the storm but leverage the tough times into opportunities to build their businesses. On the other hand, the companies that didn't see this coming and overextended themselves will of course face intense challenges. There's a lot we can learn from the way we've been doing business over the past 10 years and the imperative of building organizations that are not only disciplined around economic fundamentals but built around a model that is sustainable.

Q: 3) What kinds of programmes are corporations asking you to prepare for them and their employees?
A: 3) Given the economic pressures, Sharma Leadership International Inc. has been deluged with requests for my workshop presentation called "High Performance Leadership in Really Turbulent Times." Many Indian businesses have contacted us to arrange for events as they want their employees to stay motivated, focused and engaged as we advance through this rough period.

Q: 4) What are your suggestions for corporations in India, and around the world, in times of crisis? How should they tackle it?
A: 4) First, remember that "rough seas make better sailors". The best businesspeople have been through down cycles and it has made them wiser and more effective. Second, don't focus too much on all the negativity as it will impair your decision-making capacities and demoralize your team. Focus on the opportunities. And third, remember that, as Southwest Airline's Herb Kelleher has said: "The business of business is people." Develop your people and over communicate with them and take good care of them in these hard times. Too many businesses do things that discourage their people when things get rough, rather than invest in them.

Q: 5) How are the individuals/employees responding/dealing with the crisis and how should they respond to it?
A: 5) Well, as I travel the globe, I see employees being very scared and confused. More than ever, organizations need really good leaders. Jack Welch said it well in New York City a few weeks ago: "The job of a leader is to give a vision to a scared organization." Smart companies get that in this time, they need to grow and develop leaders at all levels of the organization. If every employee begins to see themselves as leaders of their area of responsibility, the whole company will move ahead with passion, focus and effectiveness rather than succumb to the panic that is destroying mediocre organizations.

Q: 6) What is your suggestion for people who have lost their money/fortunes in the current meltdown?
A: 6) Remember that you are not your money and you are not your things. Yes, it's hard to lose what you've worked so hard for. But most people have so much more to be grateful for than they are currently noticing. Take care of your health. If you lose your health due to the stress of this crisis, you'll have nothing. Focus on the opportunities versus all the problems. Every adverse condition contains an even bigger opportunity for those businesspeople with the wisdom to look for it. As I wrote in "The Greatness Guide": problems reveal genius. Remember that "this too shall pass". This is a cycle we are going through and though many of my clients feel like the turbulent times will never end, they will.

Q: 7) What personality changes should they adopt to tackle the situation?
A: 7) Remember to have the mindset of a champion. Nothing is more important during this time than what you focus on and how you think. Leaders stay remarkably focused on the fundamentals and their game plan when everything around them is falling apart. It's also smart to "protect your mindset" at this time of emotional disruption. As much as possible, do not surround yourself with other businesspeople that do nothing but talk about all the fear and panic of the markets. Leaders are contrarians and it's mission-critical during this time to run your own race and stay focused on winning here.