By Bert Zethof

Every one of The Surge Group breakfast dialogues yields a new insight. And this morning's event in Victoria, BC, was no exception.

One of the participants is facing declining market demand and he asked the group for advice on how to "right size" his company. He received a number of thoughtful and practical ideas:

- avoid the knee jerk reaction of cutting staff and look for expenses to cut instead
- keep the people who have the potential to grow and lead their units
- keep the people with a positive attitude who remain enthusiastic even in tough times
- plan to diversify so that you aren't hurt by the next downturn
- ensure adequate resources to maintain customer relationships and be ready to deliver when customers are able to buy again
- understand your customer's purchase mechanisms - spending freezes may not apply in all cases , e.g. while their direct spending may be frozen, employees may still be able to use personal credit cards and be reimbursed
- be open with your staff and you will find them taking ownership and solving the problem, e.g. volunteering reduced work weeks, offering new revenue ideas
- maximize the return on your assets, e.g. if you are a kitchen utensil shop, use the evenings and weekends to stage cooking classes
- share resources with friendly competitors

What is interesting, is the diversity of suggestions. The term "right sizing," which suggests reducing the number of employees, may lead a manager to cut staff and not even think about other innovative ideas.