Crises, setbacks, obstacles—these will certainly be met by any executive in the course of his career. The measure of a man in such circumstances is not only how he copes with adversity, but also how he turns it to his advantage. Business is always a battle—for sales, improvements, efficiency—and an executive must lead very much as a general would: to win.
How do executives or businessmen act and react when they are at bay? There are certain fundamental principles which will greatly aid any businessman in meeting adverse situations and transforming setbacks into successes.
1. No matter what happens, do not panic. The panic-stricken individual cannot think or act effectively. A certain amount of trouble is inevitable in any business career—when it comes, it should be met with calm determination.
2. When things go wrong, it is always a wise idea to pull back temporarily—to withdraw just long enough and far enough to view and evaluate the situation objectively.
3. In the opening stages of any developing adverse situation, it may be necessary and advisable to give some ground, to sacrifice those things which are least important and most expendable. But it should be a fighting withdrawal, a retrograde action that goes back only so far and no further. It must never be a disorderly retreat.
4. Next, all factors in the situation must be examined with meticulous care. Every possible course of action must be weighed. All available resources—cerebral as well as financial, creative as well as practical—must be marshaled.
5. Countermoves must be planned with the greatest care and in the greatest of detail—yet with allowances for alternative courses in the event unforeseen obstacles are encountered. Counteraction must be planned on a scale consistent with the resources available—and the goals set must be conceivably attainable. It is well to bear in mind, however, that the impetus of a properly executed counterattack very often carries the counterattacking force far beyond the point from which it was driven in the first place.
6. Once everything is ready, action should be taken confidently, purposefully, aggressively—and above all, enthusiastically. There can be no hesitation—and it is here that the determination, personality and energy of the leader count the most.
The businessman—young or old—who guides himself according to these principles when he has suffered reverses will not remain at bay very long.
* Source: How to Be Rich by J. Paul Getty