Lunar Letter / Corporate Bounce

Companies, like people, must Bounce back from challenging situations if they want to remain in business. It is imperative to rise and roar after falling or failing in order to soar with the eagles.

With his powerful, eloquent voice, Martin Luther King Jr. said:

“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.”

Similarly, the ultimate measure of a company is its capacity to Bounce back from difficult circumstances. Frequently, corporate cycles are very similar to those of a bouncing ball; they pass through periods of expansion, recession and recuperation.

While these stages are normally well defined and there are economic factors which exert influence, it is possible to positively influence these cycles to prolong those which are most favorable and Bounce back more rapidly from those which are negative. Diminishing the time when a company is at the bottom of a Bounce enhances profitability and increases employee satisfaction.

To achieve a more effective Corporate Bounce the following are fundamental:

  • A plan with Vision, Mission and Objective and a method of measuring adherence to those principles.
  • A plan which consists not only of words but also a definite course of action
  • A system which rewards innovation and doesn’t inhibit creativity
  • A compensation system which rewards outstanding employees
  • A hierarchy which streamlines the decision making process
  • A willingness to recognize weaknesses and limitations
  • An atmosphere promoting action and innovation
  • An organization which leverages its strengths
  • An environment without fear of criticism

We can say, “Sounds good in theory, but what about putting it into practice?” Decisions which positively influence a company normally come from owners and managers. It is also true that an idea which can make a tremendous difference between remaining in the depths of doldrums or brilliant Bounce can come from any level in the organization and at any time.

For these ideas to flow freely, it is essential to create an environment where people have confidence to express their creativity. Companies successfully implementing these strategies create an atmosphere conducive to Bouncing back and are those which change, innovate and actualize today, to be champions tomorrow

∞ Rob McBride ∞

LL I 21