The January issue of Eurobiz Magazine just came out with my latest column, entitled “Slowdown Survival”. Eurobiz is the publication of the European Chamber of Commerce in China. The article describes approaches SME’s are taking to managing their China operations in these challenging economic times. Some of the tactics companies have taken to hold steady through 2009 include:

-restructuring their business entities to either reduce costs or to boost revenue streams;
-reducing operating hours while holding on to staff;
-asking staff what it can do to reduce costs (of course, this one usually results in a unanimous “turn the thermostat to freezing!);

I even include some of the approaches we are taking in our own company to reduce overhead, including:

-using the bullet train to get into Shanghai (35 minute ride each way), or out to Nanjing or even Xuzhou;
-managing our outsourced IT outfit as though it was an internal department.

Of course, the classic knee-jerk reaction to most recessions is “to fire the bums!” The “bums,” of course, being the non- or under-performing staff. I write in the article that an HR Manager friend – a Chinese fellow with many years experience working for multinationals in China – makes the point, “”you have to keep your core staff for the future, even if you lay off employees. The core is always protected.’”

Sometimes it difficult to remember during tough times that a new tomorrow will dawn. Best to prepare for it now.