![\"\"](\"https:\/\/opexsociety.org\/wp-content\/uploads\/2014\/09\/Order-Today-NYC-2.jpg\")
<\/a><\/p>\nOf the \u201cBig-3\u201d, only Ford<\/a> feels that they can weather the storm and has refrained from taking any \u201cbail-out\u201d money from the taxpayer (although they have requested the option, if needed).The others, General Motors<\/a> and Chrysler<\/a> have begged and cajoled for help \u2013 which they received.Additionally, Chrysler has looked to an unobvious partner in Fiat (remember that GM recently shed its partnership interests in Fiat just a little over a year ago \u2013 paying roughly $2b for the privilege).<\/p>\n But we already know all of this\u2026<\/p>\n What of the other major automobile manufacturers such as\u00a0Toyota<\/a>, Volkswagen<\/a>, Nissan<\/a>\/Renault<\/a>, Honda<\/a> , etc\u2026?They seem to be weathering the storm better than their US counterparts \u2013 or at least staying out of the news.How is that?<\/p>\n And in watching the earnings-reports come through on Bloomberg<\/a> , I can\u2019t help but notice that most of the Fortune-1000 companies are not posting losses or burning through cash \u2013 just that their revenue and earnings are down, albeit in some cases significantly.<\/p>\n Obviously, share-price is one indicator of a company\u2019s position \u2013 and we all have seen share-value shed. But it is not the only inditor, and arguably it\u2019s not even the best indicator.There is also EBIT<\/a>, EBITDA<\/a>, and my personal favorite, free cash-flow from operations<\/a> .<\/p>\n If a company has a reasonably strong balance sheet, is still profitable, and is still enjoying free-cash-flow from operations in today\u2019s economic climate, wouldn\u2019t one conclude that they are going to survive the down-turn?Then why are so many companies not taking the opportunity to fortify and expand their positions in the marketplace?Why are so many companies not taking the time to repair or improve their ability to execute?Why are they acting as if the arrival of the four-horses of the apocalypse<\/a> is upon us?And why \u2013 when their cash can go so\u00a0much\u00a0further\u00a0today as compared to any period in recent history \u2013 are not more companies putting their cash to work instead of\u00a0under their mattresses?<\/p>\n Are these seemingly healthy companies going out of business?They sure are acting as if they are\u2026<\/p>\n And what of those companies who are a bit less comfortable in their circumstances?Are they hording what cash they have and hoping the \u201cslow-burn\u201d will see them through to better times?Is this what a leader would do?<\/p>\n How many times have we heard (or even said), \u201cI\u2019d love to improve xyz, but I can\u2019t now because we are too busy.\u201dWell, now is the time.<\/p>\n And sure it takes guts, but that\u2019s what a leader does and guts are what it takes.<\/p>\n By taking action and seizing the moment, this attitude and approach can serve a two-fold purpose.The first; the company improves its lot and ability to execute when the economy turns around (and it will) \u2013 thereby generating a return of magnitude to the company.And the second; the company can leverage its existing and knowledgeable resources into making these improvements \u2013 thus adding value to the company \u2013 instead of turfing them out by the body-count.<\/p>\n Mind-you, I am not a \u201cpro-labor\u201d person who is against lay-offs on general principle;nor am I \u201cpro-business\u201d who thinks that all riches should go to the folks at Headquarters.I like to think of myself as a pragmatist who learns from the past, lives in the present, and plans for the future \u2013 all for the enrichment of the entire organization and its value-chain.<\/p>\n I believe that lay-offs are but one tool to help bring in-line costs by eliminating excesses and redundancies.But I also don\u2019t believe that a company can be made healthy solely by shedding bodies.A true leader will look beyond the obvious and the here-and-now by seeing a vision for the future and following a path towards it \u2013 making sure to communicate it.<\/p>\n This brings me to Toyota \u2013 now the biggest automobile manufacturer in the world<\/a> .Toyota has thus far been able to navigate through these difficult times and still keep its \u201cno lay-off policy\u201d and workforce in-tact.Toyota is able to do this because \u2013 when the employees are not building vehicles (or whatever) \u2013 they turn their energy towards building the company, investing, and effecting operational improvements.This is a key component of the \u201cToyota Production System<\/a>\u201d (TPS) and \u2013 although not a guarantee of full employment as there has been some talk of Toyota actually going through a layoff<\/a> \u2013 the numbers are miniscule compared to others (1,000 employees on a workforce of 316,000 or 0.34%).<\/p>\n On a similar note, I was recently speaking with the head of operations of an oil company. He made mention that, \u201cYou can hide a lot of sins when oil is at $147 a barrel, but at $50 a barrel (or less) the tide goes out and exposes the rocks.\u201dHis company is dedicated to the continued increase in shareholder value \u2013 regardless of the price per barrel \u2013 and realizes that they cannot hope for the markets to do all of the work.They are committed to being proactive and making the investments today to ensure their future.<\/p>\n As \u201cRed\u201d said in \u201d Shawshank Redemption<\/em> <\/a> \u201c, \u201cYou either get busy livin\u2019 or get busy dyin\u2019.\u201d<\/p>\n What\u2019s it gonna be?<\/p>\n![\"\"](\"http:\/\/www.xonitek.com\/wp-content\/uploads\/2012\/03\/ParisJoseph-bw.jpg\" "\\"ParisJoseph-b&w\\"")
<\/a>Paris is the Founder and Chairman of the\u00a0XONITEK Group of Companies<\/a>; an international management consultancy firm specializing in all disciplines related to Operational Excellence, the continuous and deliberate improvement of company performance AND the circumstances of those who work there \u2013 to pursue \u201cOperational Excellence by Design\u201d and not by coincidence.\u00a0<\/em><\/p>\n