You go, Ram
Let’s give it up for respected management guru Ram Charan. The legendary consultant and author of such books as Execution (co-authored by Larry Bossidy), Charan has an article in the February 18 issue of Fortune titled “Ram’s Rules,” which gives his insights on how to manage a business in an economic downturn.
At the beginning of his first insight, “Keep building,” Charan states:
“When the top line looks shaky and the bottom line worse, the temptation is to go after discretionary spending. Fine – but do not consider product development, innovation, and brand building optional.”
What?!? Did he say brand building? I think he did. In the business world, there are a few companies (Apple, Starbucks, Ed Hardy Clothing) where brand building is treated as untouchable. How about in healthcare? How many hospital CEOs would agree with this strategy? When the census is down, when revenues are behind budget, when contribution margins are shrinking, how many leaders protect brand building at all costs?
As Ram says, “Sacrificing your future for a slightly more comfortable present is not worth it. If you keep building, you can come back strong.”
Amen, brother…