The importance of "not panicking"

Tough economy continues to pose unique challenges. In normal conditions the challenges have a certain level of predictability. In today's scenario, predictability is non existent.

Its also quite an experience watching senior business executives in various businesses react. Understandably, different people have different "stress threshold". The real trouble starts when business veterans start "panicking". Its not easy not to panic when your revenues have gone down by 30% - your bank has cut your credit line - your account receivables position has spiralled out of control. An uncertain future and constant dosage of gloom and doom stories compound the restlessness.

Panic is bad because it has a domino effect. Attempts have to be made very consciously to look at the bigger picture (easier said than done). Data helps. Rational thinking helps. Smart Advisors help. Taking more time for critical decision making helps. In today's world, where businesses are so very interconnected and interdependent, any hasty action is bound to have a much larger impact than what one might expect.

Its important to control a situation before panic creeps in. Its easier said than done. However, its do-able. In prevailing economic conditions, all of us need to act and think differently and have to be responsible for not only our actions but also the "overall outcome of our action".

- Udayan Bose  

Comments

[manikandan iyer]

Dear Sir,
i really liked your lecture and i thank you for sharing your experiences with us. iam doing my MBA from IBS hyderabad. I have a question for you. You highlighted about the panicking by companies in your blog. i just wanted to ask you why u have not recruited anyone from our college. i heard that the two people that your company recruited from our college were not selected? (im sorry if im wrong)..or do u think that we people from IBS certainly lack something which you recruiters are looking for????