Jim know how to navigate and win in in tough economic times. My first interview is with Jim Estill former CEO of Synnex. Not unlike me, Jim too is exploring new frontiers and will soon be announcing his new position. (Jim was still at Synnex when I interviewed him). Jim has been mentoring me for just over a year now. Recently, Jim has been through a very challenging time - personally, losing his brother and good friend and in business  - Synnex distributes IT and IT peripherals - which as you can guess, is at the mercy of the soft retail market). Through this Jim has continued to see the bright side of life and the glass as half full rather than half empty. Jim believes in taking action and provides invaluable tips on his blog on Time leadership at www.jimestill.com Below is a summary of my interview with Jim.
 
1) What is the number one thing you are doing right now to foster hope in your organization? 
SYNNEX is a very strong company and I continually reflect that to my people and my recurring mantra is:  "Strong companies will win through any down turn."

2) Where are you still investing?
I believe in investing in training and development in slow times because we can take people off the phones and our customer service level will not drop.  I also tend to invest where we see opportunity buys; for example, if one of our competitors is going out of a business unit.

3)     Where are you cutting back?
We size our business appropriately to the gross margin that we generate because sales are slowing.  In most cases it means general belt-tightening.  So far we have been able to do this primarily through attrition.

4)     What three things do you think are most important during tough economic times?
The most important thing through economic time is to realize that they never last so prepare for the future. 
The second thing is to realize is the whole world including ourselves tend to over-react.  It doesn't make sense to overreact during slightly tough economic time.
The third point is tough economic times are great times to put together plans to grow in the future.

5)     What would be your number one advice to business leaders?
My #1 advice is to do smart business.  This means not overreacting to the current economy.

6)     According to the conference board of Canada less than 25% of companies have a strategy and plan in this slow economy.
I am very surprised that companies do not have strategic plans to deal with the slowing economy.  I think at the time that the survey was done that may have been true but I think now as time goes on clearly more companies have a plan.

7)     First of all do you have a strategy and plan?
I absolutely have a strategic plan.  In our business (selling computers and consumer electronic products) we see consumers buying down. This means that people do not buy 70 inch brand name TVs; they might buy 42" slight off brand TVs.  People may not buy from Circuit City (which is now in Chapter Eleven) but they are tempted to buy from Wal-mart and Costco.
We put our energy into second tier, smaller products selling through a slightly lower end sales channel.
The other opportunity for us is to continue to support all of our customers because in many cases where are competitors are blowing up their businesses.

8)     Why do you think so few companies do?
I think few companies have strategic plans in general.  I am also not a huge believer in strategic plans that are forever.  All strategic plans are meant to be only that, they are a plan that are meant to be broken.

9)     How do you feel government could help improve the current economic state?
I don't believe we should look to the government to fix anything in our economy.  If anything, we should just ask the government to stay out of the business.

10)Where do you feel the economy will be a year from now?
Unfortunately I feel that the economy will still be very tight one year from now.  I think we are for a fairly long-term, fairly deep recession.

11)What do you think Canadian businesses need to do to thrive in a commoditized global market?
Canadian businesses need to do what all businesses need to do - they need to look at doing smart business.  This means driving efficiencies into business and doing things that are smart and make money.
One thing that all Canadian businesses can do is to focus in niches where they can gain competitive advantage.  It makes no sense to be in a business where you have no competitive advantage.
 
I hope you enjoyed Jim insights and are inspired to take action to grow your business. Have a great weekend! 
 
Shelley