The Wrap - The tough discussions that must be had

Richard Warner

August 1, 2008

F rom AirTran to Home Depot, and the AJC to the state of Georgia (and, yes, probably your company, as well), difficult discussions are taking place right now.

Tough economic times expose an organization's scary challenges and forces management to confront brutal reality. It's not fun. Confronting reality may force changes in your company's culture, its product mix and employee ranks. But when managers are honest with each other and are transparent with the rank and file, those difficult discussions can mean the difference between surviving and dying.

Consider the way Jimmy Tallent grew United Community Bank from one branch in bucolic Blairsville, GA, into a regional powerhouse. His management philosophy consisted of three words: "what is, is." When it came to decision-making, Tallent wouldn't tolerate sugarcoating or rationalizing about how things might turn out for the better.

I also remember well an interview we did with Chick-fil-A founder Truett Cathy and his son Dan about managing in tough times. When you think of Chick-fil-A, you probably think of a wildly successful quick serve restaurant chain with locations in more than half the country.

If you read business publications, you might know that Chick-fil-A's sales per square foot are about twice the industry average; that the family-owned company carries no debt; and is now hitting $2 billion a year in revenues.

But about 15 years ago, Chick-fil-A was in serious trouble. They had just moved into beautiful new quarters in College Park when McDonalds began offering its own chicken sandwiches. Higher demand boosted the price of chicken just as Chick-fil-A was absorbing higher overhead. The company was in danger of crashing and burning.

The Cathys and their management team faced their own brutal reality at a Lake Lanier retreat. Putting all the noise aside, Dan Cathy says they decided focus first on the big picture: why are we here?

The team decided to focus anew on their mission "to glorify God." Business decisions flowed from there. Clarifying and centering their mission didn't just save Chick-fil-A, it helped guide the company to prosperity.

A faith-based solution may or may not be the answer to your company's brutal reality, but you must confront that reality head-on. There's no escaping it, even if you try.

Every year, our family vacations at the same beach in North Carolina, and one of the first things we do when we get there is rent bicycles from a man who dropped out of the business world when times got tough several years ago.

"I had a heart attack and decided I'd move here and take it easy," he told me. "I rent bicycles half the year and take the rest of the year off. I don't need a lot of things in my life, and this quiet lifestyle suits me just fine."

This summer, I noticed a snazzy new bicycle rental store had opened up across the street, giving him competition for the first time. Even in paradise, you can't escape brutal reality.

Richard Warner hosts "Georgia's Business" on GPTV and is CEO of What's Up Interactive.