Periods of economic stress test the ability and capability of MNC and TNC and demands that they rise to the challenges. Crisis tests an individual’s abilities more than the good times ever do. Undoubtedly, most leaders will be tested by a few minor and major crises during their tenure. How the individual steers through such troubled times will show the mettle he or she is made of. The MNC and TNC of today are being tested on several levels, both internally and externally. While they may have some control over their internal environment, they certainly do not know what awaits them externally in the current volatile business environment. Loyal and hardworking employees are the best asset of any organization, and yes, even in the high tech era and in the computerized age. It is important to retain talent and more so during difficult times. Strengthen and retain what you have.
Pull your talent together and take decisive decisions. Do not let good talent get away. It will be more difficult to find them when the recovery comes, which will come, just as the sun will rise again tomorrow. Today, the MNC and TNC is expected to be pro-active in contingency planning, to anticipate and prepare responses. Expediency in the appropriate response can negate losses. As the Chinese word for crisis, Wei ji, is composed of two characters signifying “Opportunity” and “Danger”, the current crisis with its many downsides also offers opportunities. It is necessary for business leaders and MNC and TNC to seek out the possibilities in these challenging times. You must do this to remain relevant, sustainable and competitive. Corporate governance is a demanding role even during times of relative calm. It calls for balancing of internal and inter-business relationships and more so during a crisis, when courage and desire to lead well and effectively are put to the test.
Businesses are downsizing, retrenching and reducing the number of work days. Many of the institutions that were household names around the world have disappeared and the workings of their internal corporate culture has been shaken to the core. The faith and confidence of their employees, shareholders and customers has been shattered and it will be an uphill task to regain their trust and rebuild the company’s reputation. In the fast paced world of business, MNC and TNC must not only multi-task and cater to the varied and different demands on their time from the multitude of constituents; but they must be ahead of the business cycle in ensuring the continued survival of their businesses. While the bottom line and the financial performance of a company is important, there is more to running a corporation than just bottom lines. The continued survival of the company and that of the MNC and TNC will depend on the corporate governance and skills demonstrated in enhancing competitiveness and efficiency of the corporation; retaining and building confidence of their employees, maintaining trust of shareholders and retaining loyalty of customers.
In the current difficult environment MNC and TNC are required to deliver far more than they have done so in the past. A lot rests on your shoulders as business leaders – shareholders, employees, customers and the community at large demand total commitment from business leaders to deliver on your promise to provide the best service and quality products with honesty and integrity. They will accept nothing less.