Everything I Know About Surviving the Recession I Learned from Tom Hanks

By John Favalo, Managing Partner, Eric Mower and Associates (EMA), Group B2B
June 2009

Given the effects of this recession, most people I talk to think the environment is awful: loss of business, loss of jobs, loss of confidence.  Not pretty at all.  But it could be worse.  It could be a matter of survival.

Everything I know about surviving this recession I learned from Tom Hanks.  Tom Hanks starred in the film Cast Away.  If you think going through this economic submersion is a bum trip, think what it must have been like for an overweight, citified American to find himself stranded on a deserted and uncharted island.

OK, I know what you’re thinking:  Tom Hanks?  What the hell’s Tom Hanks got to do with this recession? 

A lot. 

The Cast Away scenario was actually a warm-up exercise that one of our EMA account teams recently staged for a client.  The purpose was to brainstorm ideas for generating incremental revenue without spending incremental dollars.  Because the client is deep in the residential/commercial construction market (and you know the state of that segment) we thought a “lack of hope” scenario was an appropriate challenge.

Of course, you don’t need to be in the construction business to feel like all is lost.  The shoe fits even if you’re in manufacturing, metalworking or machining, or assembling trains, planes or automobiles.  So go ahead and put yourself in Tom’s shoes—err, bare feet—for a minute.  You’re in the worst possible situation.  Your plane goes down in a violent storm.  All are lost but you.  Here you are in the middle of nowhere, with nothing but the clothes on your back and a few FedEx boxes washed to shore.  No shelter, no cell phone, no Whole Foods, not even a convenience store.  Nothing … but doubt.  What would you do to survive … AND return to a better life?

In what Tom Hanks’ character did to live through unthinkable hardship—and make it back—provides us with a great model for surviving this recession, returning to normal, and even moving ahead.  Let’s take a look at how he managed it.

Face Reality and Move On

A brutally frank assessment of the situation is a must.  You have to stand up to the facts and shift quickly to survival mode.  Doing that may not be pleasant; in fact, it may be crushing.  But don’t waste time feeling sorry for yourself.  Tom didn’t dwell on the negative for too long. Giving up, regardless of the odds, was not an option.

See the World Differently

It’s one thing to recognize that everything has changed.  It’s another to accept a new reality: It’s not business-as-usual anymore.  The surroundings and conditions are very different.  Same-old, same-old won’t do the trick. You may even need to recast your business model.  Tom had to set a new vision for his life.  He had to recalibrate his priorities and goals. He had to work on making progress, however small, every single day. 

Mind the Basics; Concentrate on the “Must Dos”

Finding food, building shelter, making clothing, learning to build a fire—these work on a deserted island.  In “Seize Advantage in a Downturn” from the Harvard Business Review’s February 2009 issue, Boston Consulting Group’s David Rhodes and Daniel Stelter suggest what works in today’s landscape: maximizing your cash position, managing customer credit tightly, aggressively managing working capital, reducing costs, increasing efficiency, re-evaluating product mix and pricing strategies, reining in planned investments, considering selling assets, and managing the top line as well as the bottom.  Tom had to “make do” with what he had. In fact, when he realized that he didn’t explore everything he had (he didn’t bother immediately opening all the FedEx boxes washed ashore), he found some things that would have mitigated some of the difficulties.  Moral for you: Be sure to look in all the “boxes” around you.  Reinvent.  Use, reuse, and repurpose.

Learn New Skills (but if you don’t succeed at them, keep trying)

When you’re flat-nosed against a new paradigm, all the knowledge you’ve collected over time may no longer apply.  At least it might not apply in the same way.  Don’t rely on convention. Now is the time to be a student, eager to learn, AND be a teacher, eager to push new ways. Tom had to figure out—fast—how to hunt, sew, build a raft, navigate, and more.  What do you need to learn and try?  What are you waiting for?

Find Friends and Partners (Remember Wilson?)

You don’t have to do it alone.  Tom didn’t, even though he was the only human on the island.  Tom created a friend, Wilson, from a volleyball.  Wilson provided companionship; someone to talk to and commiserate with.  Wilson provided sanity.  Look for your Wilsons.  They may be in your sales channels.  They may be among companies like yours but non-competitive.  They may be technology partners or have different but complementary skill sets.  Regardless, look for ways to partner, to develop new and unique offerings that are economical and easier to access. Multiply your capabilities and resources without the attendant costs.  Collaborate and evaluate, but be prepared to let a friend go when it’s time, just as Tom did with Wilson.

Deal with Opportunities and Emergencies Quickly

These days, things happen in a blink.  The right opportunity can pass or minor trouble can balloon in no time.  Don’t take too long for objective assessment.  Gather up your best and brightest by phone, by video, by tomorrow.  Sketch scenarios around options, weigh the circumstances, the investment and the upside/downside, and take appropriate risks.  When the weather looked right, Tom launched his raft.  He had to face setbacks but he continued to balance risk/reward until he broke free.

Identify Your Greatest Threat (but remember your prison may be your escape route)

Is your company or marketing strategy particularly vulnerable to a competitive salvo?  Too often the assumption in severe downturns is that everyone stays the course and remains quiet.  What would you do if a key adversary suddenly announced a new pricing strategy that disadvantaged your offering?   What if your primary technology supplier recalled parts found only in your products?  What if the currency rates took a dramatic dive or drive?  Make sure you look hard at the events that could have major strategic consequences and have in place one or more game plans, just in case. The turbulent ocean was Tom’s biggest barrier, but he soon realized that it was his only means of escape.  As you review options and sketch scenarios, try flipping things upside down in order to see things from a different and possibly beneficial perspective.

Use Good Guidance (don’t forget the metrics)

Tom scratched his days “in captivity” on a rock.  Simple advice: Keep track of things. Employ the most appropriate and accessible metrics.  Tom wasn’t a meteorologist but he looked for patterns and timed them appropriately to plan, to eat, and to sail away.

Don’t Waste Anything … Live Lean

Unless you’re very lucky, there is no excess of any resource.  You must condition yourself and your team to use everything down to the scraps.  In many of the world’s cultures, every part of every food animal is used: meat, bones, pelt, organs, everything.  And while that thought may be unsavory and extreme, the concept is not.  The only way to stretch the little you may have is to use a little less every day.  Supplement what you do have with what EMA client Jeff Hayzlett, CMO of Kodak, calls “OPM” – Other People’s Money.  Look for ways to get your brand exposed for free or for far less than the going rate, like generating content or PR that is picked up by other media outlets; partnering in ways that exposes or promotes your brand as part of a larger program for a smaller price; or developing co-op deals that divide the costs and multiply the message.  Tom learned that he could get by with a lot less, yet remain strong in body and mind.

Stay Fit, Stay Healthy, Stay Focused, Stay Determined to Succeed.  And you will.

Tom’s Cast Away did all these things and survived.  Do the same, physically, mentally and metaphorically.  That’s why some 40 years ago, EMA’s CEO, Eric Mower, adopted the phrase “Press On” as the company’s operating attitude, based on this exhortational passage from an unknown author:

"Nothing in the world can take the place of persistence.

Talent will not;
Nothing is more common than unsuccessful people with talent.

Genius will not;
Unrewarded genius is almost a proverb.

Education alone will not;
The world is full of educated derelicts.

Persistence and determination alone are omnipotent."

Indeed, Press On.  Had he not, the cast away would be exactly that.

About the Author:

John Favalo is Managing Partner of the Group B2B Division of Eric Mower Associates, and a past national BMA Chairman.

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Updated:
27-Jun-2009