When business is tough, the worst thing a leader can do is pretend it’s
not happening, says Maurice Healy, Chief Executive of IT services business Calyx Group.
Healy has been through a few recessions in his time, not that anyone ever uses that word, he says. ‘I was there in the early 1990s and in 2000–01 and it does mean things have to change. Our core business has to be able to adapt to the changing demands of our customers. There is always that bit of restructuring that has to go on.’
Since spearheading a management buy-out of Calyx last year, Healy has pursued an active acquisitions strategy. He is not expecting a downturn to steer him off course. ‘At such times there is always a time lag between what people think they can sell for and what buyers are willing to pay and there will be a time when M&A activity goes quiet. We will continue to engage in negotiations but we will get stuck on the price,’ Healy says.
Experience tells him that whatever happens, neither he nor his colleagues should assume things might get better in a few months. ‘You have to work on the basis that today is the reality and this is the situation you have to deal with. This means including the senior team in the solution and making sure they do the same with their teams.’
Having faced up to the problems, leaders should be prepared to take the hard decisions as early as possible and then move on. ‘Don’t have death by a thousand cuts. That’s the worst thing you can do,’ Healy says.
‘I have been through situations where we’ve done things half-heartedly believing things will get better, only to have to do more a few months later. And this is what creates huge uncertainty within the business. It’s important for everyone to know where they stand and believe you, and then they will move forward with you.’
Not being prepared to take tough decisions will have a knock-on effect on customers and suppliers. ‘Between 60% and 70% of our staff are in touch with customers and suppliers; if they are worried and uncertain, they will speak about it and that message will come across to the customers.’