The current financial crisis is expected to be long and wide reaching. Every day there is new news and it all seems bad. Every media source appears to be trying to break new bad news. Most people have not been through such a crisis before. I, on the other hand, have been through such a crisis before when Southeast Asia melted down in 1997. Currencies dropped 80 percent in value in a matter of weeks, many banks collapsed, nearly every bank demanded loan repayment and unemployed people were eating tree leaves to stay alive. Some advice follows:
- Focus on one week at a time. Just get through the week and make some progress toward your goals. Long range thinking has little value because you can not accurately predict the future in such a complex environment.
- Be more concerned with your physical safety. Crime, civil disobedience and even terrorism may increase as people opt for extreme measures to achieve their personal goals.
- Be more concerned with your physical condition. Periods of extreme and constant stress are physically debilitating--even for you.
- Preserve cash. Anyone's job could be at risk with every company downsizing to survive.
- It can always get worse! It can always get worse! Conserve your energy, safe guard resources and limit emotional reactions. Emotional reserves are your most limited resource. Hold something back and stop over reacting to the small stuff.
The Asian financial crisis was the single most significant business event in my career. I learned a lot about crisis management, people, courage and managing emotional energy. You will also learn a lot from the current financial crisis--but you have to survive it first.
