Letting people go is always difficult, but during this these times of financial duress the reality is that businesses, both in and out of our industry, are having to do what they need to do to survive. Its not what the people being laid off want to hear, that word “survive” when the notion just became all too real.

We often hear our clients ask for “out-of-the-box” thinking, and my question in return is always, “Well, how far outside the box do you want to go? A foot, or a mile?” Below are a few thoughts that we shared that may be applicable for the smaller shops of 20 or less.

We are playing in a paradigm we have never seen … It mirrors 2008 in some ways, but there is no bailout for a pandemic disease. Right now, is when your clients need you to be calm and thoughtful. You and your business deserve the same. So have a plan. It will give you the guardrails you need and will give you the boundaries to make decisions moving forward. Respond to this situation, do not simply react. Sound familiar?

Remember, these are unorthodox. Here goes:

1. Manage the money; Manage the mayhem – If you are the CEO of a small shop, you must take a harder look at the financials than ever, that’s obvious. But look at them from a personal perspective in order to benefit your professional position. If you pay yourself a salary based on need-to-bill (NTB), what could you and your family really get by on? What do you need to keep the lights on at home, and at work? What is the bare minimum? What percentage that does work out to? Let your team know you’re going to take a pay cut.
   • Now, as a problem-solving measure, ask your team if they could do the same. What do they need to get by in this time and does the remaining revenue cover it? As the leader, if you are demonstrating, for the health and future of the team, and before you make any decision to lay off staff, you can proffer this request.
   • Does this save that person you may have had to lay-off? Does it help you make it through the next 60 days? 90 days?
2. Unlikely bedfellows – If you are a member of an organization like PRSA, or the PR Council, are there two to three agency leaders you have solid, trustworthy relationships with? Do you typically bounce ideas off them? Talk agency business and strategy? Then bounce these off them because it’s time to put everything on the table…
   • Is there an opportunity that can come shared work, amplification of areas of expertise, contract engagements, or even, if circumstances warrant, a temporary merger?
   • First, consult an attorney on how to do this. There obviously must be transparency, but there must be NO poaching of clients, employees or the like. The percentage of the business of the business you bring to the table is what you leave with. And set a timeline. 90 days, 120 days … whatever it may be, but be clear.
   • Ideally, are there agencies that you compliment? IE, you do Consumer and they do B2B? You do earned and they do paid, etc. This way you are supplementing each other, not competing. It could also be the initial selling in of new services for your clients … remember, we want to be problem-solving right now for clients, deepening our relationships
   • This may also allow you to continue to meet the current payroll, if you desire.
   • Again, completely unorthodox, but desperate times …
3. Preserve the partnership – Those clients that have shut it down or have had to reduce budgets … keep the ideas coming. Not with the aim of selling in new creative, or programming, but in the spirit of partnership. As agency management, we always want our clients to treat us like partners, not vendors. But how often do we extend that same courtesy?
   • If you keep the ideas coming, or that thought leadership piece you think they may get value from, send it over … exude partnership right now … they will remember and it will bear fruit down the road.
   • You may not be their agency of record for this period, but you can still be their partner, their friend and a resource for counsel … help them in order to help you …