THE EXPERTS' ADVICE:I'M REMINDED of a talk given by chief executive of Glen Dimplex, Sean O'Driscoll, at this year's MacGill Summer School, where he articulated an important notion for all business leaders to grasp in responding to the current downturn: a crisis is a time for fire-fighting, but also a time for thinking.

Fire-fighting comes easy to most of us; it is the natural emotional response. The adrenalin rises and we morph into our own versions of Horatio at the Bridge, frantically kicking into action – chopping costs, expenses, inventory and staff – all very necessary but also time-consuming, frustrating and draining of the human spirit.

What’s worse is the unintended consequence: it crowds out any time we might have for thinking.

I sense Wryce personifies the condition. Making decisions on the hop, he allows himself to be caught up in an emotional rollercoaster: feeling let down by the bank, insulted by suppliers, consumed with guilt about his departing staff and personally wounded by their understandable angst.

Wryce needs to give himself some space to think. And his first thoughts should be mostly of himself. Picking up a copy of Martin Seligman’s Learned Optimism: How To Change Your Mind and Your Life might be a good place to start.

And, then maybe follow up by re-reading Churchill’s 1941 speech at Harrow, and linger a while on those timeless words: “Never give in.”

In a word, Wryce needs to get his mojo back, before turning his thoughts to deciding on a new course for the business. And a new course is most certainly what is demanded here. The Celtic Tiger years proved an easy street for all construction related businesses. The next decade will be far more discriminating.

So, with his thinking cap still firmly on, Wryce needs to develop a new vision for the business embracing this reality and, follow up with a strategy that will give him an edge amid the inevitable competition that is sure to follow

But Wryce doesn’t have to think alone. Once he scales back operations, he needs to initiate a conversation with his remaining staff around his new vision and strategy.

He especially needs to let them in on his plans, solicit their input and try to find some quick wins to rebuild their enthusiasm for the job.

– Tom O’Connor

THERE ARE a number of actions Wryce needs to implement to save his business but before taking these on, he needs to rediscover his ‘can-do’ entrepreneurial spirit which helped him to build such a successful business in better times. His renewed positive attitude should be clearly visible to all those around him, including his staff, suppliers and customers.

First and foremost, Wryce needs to improve his relationship with his bank. He should sit down with his bank manager and explain all of the underlying fundamentals of his business. He needs to be clear, focused and have a forthright manner when renegotiating his banking facilities. With the bank on his side, he has a better chance of success. Also, with the help of his accountant, Wryce needs to build a new business plan.

He also needs to get out for face-to-face meetings with all of his key suppliers and customers. He needs to be as proactive as possible and look to renegotiate terms and credit facilities to fit with his new business model.

Before the recent boom and bust, Wryce seemed to have a good and trusting relationship with his staff. He needs to rekindle this now.

Is he communicating regularly with them? Are they fully aware of the extent of the challenges the business currently faces? By building a collective responsibility and ownership of the problem, they are more likely to succeed as a team. Unfortunately, this may mean further pain in the short term with some further redundancies and/or three day weeks for some employees.

In terms of winning new business, it’s vital that the most proactive communicators in the business remain upbeat and are out selling the company’s products. Wryce should also consider re-establishing direct sales to the general public as he did in his early days, particularly if he’s in the right location. He has the staff, the stock, and DIY is on the way up again. This could re-energise the business and would also be a consistent cashflow generator.

With a relatively small marketing budget, Wryce should also consider a website presence and advertising in the local press. He needs to keep in touch with the smaller builders and tradesmen, and look to provide them with good offers and niche products.

Ultimately, Wryce needs to rediscover the enthusiasm and energy that made the business such a success prior to the recent downturn. It’s essential that he doesn’t stick his head in the sand, waiting for the tide to turn. With a clear focus and a willingness to succeed, he has a real chance to build a successful business again.

– Jim Leyden

WRYCE REMINDS me of Dorothy from The Wizard Of Oz. He got caught up in the euphoria of his Yellow Brick Road and now he realises his Yellow Brick Road was built on very poor foundations.

Wryce’s business became increasingly complex and outgrew its original structure. Slimming down staff numbers has simplified the structure, but it may still not be appropriate. He therefore needs to carry out an objective, detailed review of each of the revenue-generating parts of his business and to thoroughly review their margins and cost structures.

Based on this, he will see the areas that remain inefficient and loss-making, and he will also identify the areas of future potential. He can then make informed decisions on each area, which will form a part of his overall recovery plan. This may involve some further painful decisions and discontinuing certain business activities. The recovery plan needs to focus on getting the business back to basics; doing the fundamental thing which made it successful in the first place.

Communication in a time of crisis is critical. He appears to have made the mistake of cutting some of the more expensive (longer serving) staff, who were loyal, while keeping on the less well trained, newer staff. This has fostered distrust, and if not faced up to, it will lead to much graver consequences for the business.

Wryce therefore needs to have a formal communications strategy. He needs to clearly communicate his vision and recovery plan to his staff, and treat them as the most valued asset of the business. They need to be central to the future direction of the business.

Wryce also needs to communicate openly and frequently with other stakeholders, including the banks and his suppliers. They need to see that he is in control and is the right man to guide the business back to recovery.

Most turnaround initiatives don’t succeed – not because of poor strategy, but because of a failure to properly implement it. Wryce needs to be visible to his staff and bring them along with him. He may also need to bring in an external professional who will project manage the changes, and take the pressure off him.

Finally, Wryce should not be afraid to ask for ongoing help. It’s widely acknowledged that running your own business is one of the toughest and loneliest things to do.

He should consider seeking out an experienced business mentor to help him through this. If he does these things, then just like Dorothy, he may find his way home.

– Shane Connors