Business Relationships

Rats Deserting Sailing Ships

This image turns the metaphor on its head, and the people involved probably aren't really rats, but in tough economic times there is a tendency to avoid risk and stay with less-than-satisfying jobs.  When the inevitable rebound arrives, the exodus of talent can blow the doors off companies that have been complacent about retaining "A" performers.

The February issue of CFO magazine (www.cfo.com) nails the issue in its All The Right Moves article, recommending proactive measures during what are usually hunker-down times to help make sure that the arriving recovery does not "inspire a raft of departures."

The challenge and consequences go, I think, deeper than simply hanging on to desirable human assets.

Consider the impacts of sudden and unexpected key employee departures on business-as-usual business relationships.  They can range from unsettling to devastating.  Who do you turn to when your major customer's go-to person has gone-to somewhere else?  Who makes good on supplier problems when your "inside" contact is now on the outside?  More than your timbers are likely to be shiverin', matey, when you wake up to that kind of news.

The argument for building business relationships that transcend personal contacts (and schmoozing as a substitute for communication and collaboration) gets to be compelling when the downside of people moving on is fully explored.

What's your take on this, as we see, like crocuses in the spring, early signs of economic recovery?

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