While the economy has made strong rebounds in growth following the COVID-19 pandemic lockdowns, it would be best to assume that change is the new norm. With New Zealand’s market experiencing a continued slowdown and businesses tightening their budgets, it’s easy for leaders to prioritise short-term solutions to solve immediate concerns over thinking about the long-term growth of their organisation instead.

Understanding the long-term perspective

As a business leader, it’s important to maintain a clear focus on long-term strategic objectives and avoid getting lost in the day-to-day operations. This focused approach not only creates opportunities for growth during challenging times but also positions businesses with strong foundations to thrive, while weaker competitors may struggle.

“Companies who have done the right things to survive challenging times will have the opportunity to thrive,” Hart says, suggesting that the board and C-suite set time aside to explore opportunities for mergers, acquisitions, or introducing new products and services that fit the current market conditions. The ultimate goal is to position the business for success when the market inevitably shifts, and a proactive approach will yield positive results that reflect well on your leadership.

Risks of short-term solutions

We get it, these short-term solutions will bring immediate results to keep you above the line – but what are the long-term drawbacks of immediate ‘solutions’ like minimising teams and scaling back on engagement efforts?

• Decreased employee engagement and motivation, leading to lower productivity and innovation
• Loss of valuable interpersonal relationships and collaborative efforts that contribute to the workplace environment, hindering the achievement of wider business goals
• Increased time, efforts, and associated costs of recruiting and onboarding new team members

Balancing short-term needs with long-term goals

So, how do we achieve the best of both – keeping an eye on the big picture while solving immediate concerns? Let’s think of key focus areas and their low budget solutions:

1. Communication: Set regular meetings with your stakeholders, relay any challenges and limitations with honesty, share both wins and losses, and collaborate between teams to find creative solutions.
2. Optimisation: Leverage AI and automation to handle decision-making processes and offload administrative tasks, e.g. automated invoice approval and payment processing can reduce delays and errors for finance teams and programmed employee onboarding can help streamline and free up time for HR teams.
3. Employee engagement: Autonomous working environments can help employees feel trusted and empowered, continuous feedback through open lines of communication such as surveys to voice concerns or opinions and recognising individual and team wins is an effective way to boost morale.
4. Creative L&D: Consider internal opportunities; start small and prioritise any skill gaps. Encourage cross-training between teams, shared learning sessions or working groups, and mentorship opportunities between senior and junior employees.

Getting ahead of the curve

Ask yourself, are there contingency plans in place for future scenarios? Bridget O’Toole, a former Chief Operating Officer, says, “As early as possible, it’s key to consider scenario testing.”  From thinking about changing customer demands to sudden reallocation of resources; O’Toole urges leaders to consider all possible “what ifs” with clear and precise strategies to help anticipate and respond to potential challenges as they arise.

To mitigate any losses and ensure the business’ resilience and continued long-term growth, O’Toole advises leaders to consider “diversity of clients, financial reporting, competitor analysis, and diversity of products on offer.” Understanding market trends and communicating the financial health of your company will help all leaders make informed decisions about resource allocation and strategic initiatives, increase stakeholder confidence, manage risk, and evaluate company performance, and adhere to financial reporting regulations. These considerations will serve as a compass for you to navigate a turbulent economy.

By thinking ahead and creatively using the resources you have at your disposal, navigating budget constraints while maintaining a long-term perspective is possible. Reach out to our team to discuss how we can help you chart a course for business success.

For a more detailed guide on what actions you can take during uncertain times, we’ve gathered insights from 26 seasoned business leaders across industries who’ve weathered the storm before, from Board and C-Suite to Heads and Managers. Find out their key strategies for leading teams and businesses through periods of uncertainty here.