10 Things

10 Things
ABOUT TOUGH TIMES
Barry SalzBerg

10 Things
ABOUT TOUGH TIMES
Barry SalzBerg
C H I e F e X e C U T I V e O F F I C e r
D e l O I T T e l l P

As I completed my first year as CEO, the U.S. and global economies
had entered a downturn the likes of which I’ve not seen in my 31 years
here. Even more jarring is the fact that this now-official recession
began in a year that certainly ranked among our best ever. Suddenly,
we have had to switch gears from good times to tough times.
So what are some secrets to good leadership in a situation like this?
In this 10 Things I have distilled what I think are some useful lessons
learned from a host of downturns: the early ’90s, the dot-com bust, and
the aftermath of 9/11, among others. These are lessons that apply both
to our dealings with our clients and our people.
Many younger colleagues and new partners at Deloitte * have never
experienced a downturn and have never had to take the actions that
times like these require. And some long-timers may need some
refresher tips.
One important point: In a downturn, the pressure to stretch boundaries
always increases. When we look back on today from the better times
down the road, we will want to remember that we never for a moment
compromised our standards of quality and integrity, no matter what
the pressures might have been to do so.
Hopefully, this booklet will serve as a reminder to “old hands,” as well
as a primer for a new generation as we make our way through this
recession and prepare for the upturn and the prosperous years that
most certainly lie ahead.
*As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries.

- 1 -
S w i t c h Ge a r S
It’s difficult to move suddenly from good times to bad. Many younger
leaders have never been through anything like this, while some older
leaders may be out of practice or reluctant to come to grips with the
reality of hard times. In any event, we as an organization are faced with
a multitude of difficult facts of life. And that calls for the decisiveness
of “downturn leadership” – that is, leadership that is quick to grasp a
situation, and equally quick to take appropriate action.
What are the characteristics of downturn leadership, and what is the
magnitude of the challenges leaders face? For one thing, in a downturn,
the stakes are higher. The toll on everyone is greater, the conversations
more charged, and the decisions more daunting. In short, the altered
landscape requires leaders to tap into different and perhaps long-unused
skill sets rising to a new level of intensity, both in helping others stay
focused on the tasks at hand and in making the critical decisions required.
As we deal with a downturn, here are some of the things we need to
ask ourselves: Just what actions are and will be warranted by the scale
and scope of the situation? What is similar and what is different this
time around? What can be gleaned from past lessons? What absolutely
needs to be done right now? What can wait?
Downturn leaders need to take on more; we must stay close to our
people on the front lines and engage with our clients more actively.
Napoleon once observed, “Adversity is the midwife of genius.” We
must be ever vigilant to recognize and seize any opportunities that
might be masked by difficult times.

- 2 -
F i n d a wa y t o wi n
Going into Super Bowl III in 1969 the New York Jets were 18-point
underdogs. But Jets quarterback Joe Namath hadn’t quite gotten that
message. “We’re gonna win this game,” he said. “I guarantee it.” And
Namath and his team delivered on that promise, beating the Baltimore
Colts 16-7. In many ways it was because the Jets simply refused to lose.
That same refuse-to-lose attitude needs to drive our business – doubly
so in tough times. When capital markets tighten and tensions increase,
clients become skittish and objectives more elusive. It is then that leaders
need to become more immersed than ever in the details of the business,
working more closely with clients, being alert for hidden opportunities –
taking every advantage of ways to win in the marketplace. And leaders
must strongly drive expectations at every level, providing a clear
understanding of what success looks like.
Of course, refuse-to-lose is also about staying in the game: no retreat – no
surrender. Consider the three Apollo 13 astronauts when an oxygen tank
exploded thousands of miles from earth. The odds were heavily stacked
against them. And yet, Gene Kranz, lead flight director for Mission
Control, told his somber ground team, “Failure is not an option.”
And so for four days, almost without sleep, the engineers on earth and
astronauts in space never stopped improvising. Finally, the three men
splashed down safely. Why? Because the entire team found a way to win
by never giving up. That’s the kind of tenacity tough times require.

- 3 -
B e th e r e F o r cl i e n t S
Take a moment and try to imagine the downturn from a client’s
perspective. Their customers are hesitant to buy. Their stock is taking
a beating. The future is uncertain. Pressures are mounting all around.
Suddenly, survival mode strategies become common conversation.
Now imagine the peace of mind that we bring to the struggle – being
there as a trusted ally, ready to climb right down into the trenches.
However, to enable that kind of close collaboration, we need to have
not only a constructive outlook but also a keen understanding of just
what our clients are facing.
At the same time, we need to realize the importance of never
compromising our standards in the work we do for clients. After
all, reputations (and companies) are built not only on seeing the job
through to a successful completion, but they are also built on quality
and integrity – forged by objectivity and uncompromising values.
In much the same way that a cornerman coaches a fighter in the ring,
we offer clients the acuity of our trusted inside/outside perspective –
a panoramic view of the competitive arena from a vantage point
of relative calm. We must capitalize on that objectivity and, when
appropriate, bring in experts from other disciplines so clients can see,
in practice, the power and value of our multidisciplinary model.
When all is said and done, being there for clients means focusing
on them not as nameless, faceless organizations, but as individuals to
whose success we are vitally committed, both in good times and in bad.

- 4 -
P r o j e c t co n F i d e n c e
a n d re a c h ou t
As I’ve said more than once, when I’m on an airplane and we hit
turbulence, I look at the flight attendants to see how they are reacting.
If they seem calm, which is most of the time, I remain calm. But
if they start scurrying, I start worrying. The same goes for how our
people observe us as leaders, especially when storm clouds appear.
Project confidence. Pay attention to what you’re communicating.
Realize the power of humor to hearten and lighten the mood.
Convey the fact that “this too shall pass.”
First and foremost, use your emotional intelligence, especially when others
may be withdrawing or even shutting down. Reach out. Make the time.
During a downturn, when people are especially vulnerable, it is more
important than ever that we all stay connected with one another.
I don’t claim this is easy, especially when so many other urgent matters
are competing for our attention. Yet the ability to keep going and to
keep others moving forward is one of the hallmarks of a downturn leader.
Because in tough times, we can be sure people are watching and taking
their cues from us. In fact, they are watching our every move.

- 5 -
t e l l it St r a i G h t
In a downturn, truth can be the first victim, followed closely by trust.
But if there’s one thing that can help turn the tide, it’s the power of
straight talk to our people.
Look at the dynamics. Emotions running high. Message boards on
overdrive. Rumors rampant. With little good news and the possibility
of cuts on the horizon, it can be all too easy for leaders to wall
themselves off – to be “too busy.”
To combat this temptation, we need to communicate more often and to
deliver the news straight, unvarnished, and, whenever possible, face to
face. Never underestimate the power of your physical presence.
This is precisely what I’ve been doing in my Straight Talk “town hall”
series, and I’ve been doing it with a spirit of candor that I believe can
be duplicated at all levels. Maintain an open door policy. Institute
“office hours.” Or simply ask some of your people out for coffee. Be
creative. But find a way.
True, people may not always like what they are hearing, but deep down
they will appreciate the candor and respect you are showing. Why?
Because, in a world filled with spin and hype, they’ll see that you’ve
taken the time and made the effort to give it to them straight.

- 6 -
c o S t cu t t i n G al o n e
w o n ’ t cu t it
As those of us who have lived through a downturn or two know,
we can’t simply cut our way out. Ultimately, we’ve got to grow our
way out. In fact, cost containment and growth should be seen as
complementary actions – especially during times like these.
To be sure, cost cutting is an important aspect of a downturn strategy
and a strong signal to our people, demonstrating that the organization
has a full grasp of the situation and is dealing with it. But if our
actions end there, we are sending the wrong message: namely, that we
are an organization merely trying to hold old turf, not one ready to
break new ground.
That is why growth is so critical – especially during uneasy times, when
people are constantly worried. Energizing and future-focused, growth
plans speak volumes about how we intend to prevail. Instead of perceiving
just a hold-and-protect message, people see an organization bent on
only one direction – up. What’s more, once this message gets across,
people can better visualize their own roles in blazing that upward path.
Thus, when we think of containing costs, we simultaneously need to
think about growth and all that comes with it. It’s by striking the
right balance between the two that we will shake off the doldrums,
motivate our people, and win the future.

- 7 -
o u t -na v i G a t e ,
o u t m a n e u v e r , ou t -th i n k
“They’re not biting.” “The water’s too rough.” “The weather’s not
letting up.”
People have long been drawn to the sea, and while many have set sail
even in the stormiest weather, others have found a host of excuses to
remain docked or hug the shore. A similar situation can be found in
economic environments such as the one we face today; some make bold
moves, while others find reasons to simply stay put.
Time and again it’s been shown that those who venture forth with a
vision and seek out new worlds of opportunity reap rewards for themselves
and others far beyond those who will not sail outside the harbor.
So, we must make sure we have the right bearings, refocus our sights
if necessary, change course when appropriate, and find ways to navigate
the current situation toward new possibilities. A confident plan of
action will demonstrate to clients and potential clients that we have
the qualities they look for most in a professional services organization –
especially in hard times.
Faced with new realities and uncharted waters as we are today, we must
not hang back. We must steer doggedly forward, focusing on innovation,
quality, service, and, of course, profitability. Above all, we must be
resolute in our determination to reach our objectives and emerge stronger.

- 8 -
m a k e ev e r y da y co u n t
After a downturn, some organizations will come out on top, and we
need to make sure that we are among them. One important thing we
can do toward that end is ensure that everyone is decisively engaged at
all times – that no one is left on the sidelines.
In other words, everyone must play a full-time part. Cut costs where it
makes sense, improve processes, find ways to generate revenue growth,
and raise the bar on teaming. At the same time, focus nonstop on flawless
execution. As far as I’m concerned, there are no better times than
tough times for reevaluating and retuning our organizational engines.
The fact is, in a downturn our people will want to feel more counted
on, just as they will want to work even harder. Give them that
opportunity. Ask them how they can uniquely contribute, then let
them feel the power of their own involvement.
Giving people a renewed sense of purpose and direction improves
morale. It enables people to reprioritize and seek out new opportunities.
In turn, it helps them better understand what they can expect from
the organization. The result: the kind of top-to-bottom accountability
that truly makes each person, and each day, count.

- 9 -
r e F r e S h
Unless we’re careful our work-life balance and health can be casualties
of a downturn. Do not let that happen.
Healthy people make for a healthy business – and more satisfied
clients. Healthy people are also a key hallmark of our brand and what
clients can expect from us. So, take some time to de-stress. Spend more
quality time with your family. See your friends and reconnect with
your closest friend – you. In short, see to it that you carve out the time
to recharge and replenish.
Keep in mind the fact that, amid the insecurities of hard times, people
may resist taking paid time off – at their peril and the organization’s as
well. Leaders need to make sure this doesn’t happen. If we’re to attract
the best people and the best clients, we all need to be at the top of our
game – fresh, not frazzled.
The same holds true when it comes to nurturing our remarkable
partnership. Think about it. When times are tough, what client would
want to hire yet more tension, stress, and negativity? I have a one-word
solution: refresh.

- 10 -
P u t Fi r S t th i n G S Fi r S t
If there is one thing I have learned in my more than three decades
here it’s that loyalty and commitment to the organization are the
underpinnings of Deloitte’s success, and ultimately of our success as
individuals. This is something we can’t lose sight of, even in tough
times. Thus I urge you always to put the organization first.
This is not only a sign of true maturity but also the “true north”
of leadership. It’s also a mark of the caring, engaged leadership that
people ultimately remember and respond to.
Consider the example of Lieutenant General Hal Moore. In 1965, as a
lieutenant colonel, he personally led 450 men of the 7th Cavalry in
arguably the fiercest battle of the Vietnam War. What was one of the
secrets of his brigade’s esprit de corps? Hal Moore promised his soldiers
that he’d be on the first chopper in and that he’d stay with them until
the last chopper was out. And, with that pledge, his forces prevailed
against staggering odds.
Think of the power of Moore’s promise. It was his commitment to his
troops that made the difference in the outcome of the battle. He put
his military unit above himself. In like manner, when we put the interests
of Deloitte first – perhaps more than ever in difficult times – we ensure
the ongoing strength and vitality of this organization.

-notes-

Copyright ©2009 Deloitte Development LLC. All rights reserved.