CEO Spotlight: COVID-19 Q&A With Greg Greenwood
Greg Greenwood, CEO/ED Emeritus & Board Member, Blackstone Entrepreneurs Network
In an effort to best serve our Blackstone Entrepreneurs Network Members, we are asking various leaders to share their experience in former economic downturns and challenging times that affected their business. For our first COVID-19 CEO spotlight we interviewed Greg Greenwood, who serves as CEO/ED Emeritus and Board Member for the Blackstone Entrepreneurs Network.
Can you talk about your experience as a CEO in a previous economic downturn?
Yes, the subprime lending crisis in the 4th quarter of 2008 happened so fast it was hard to respond with effective timing. Our revenues immediately dropped by 40% and our bank called our working line of credit. It was a trying time for sure. We did a small layoff and I had to find creative ways to prop up our balance sheet into the 1st quarter of 2009 to secure new funding from a new bank.
If you have been through several economic downturns, what did you learn during the first one that you applied to the second economic downturn?
I think from both the 2000 telecom/dotcom bust and the 2008 subprime lending crisis, I learned how critical focus is for a business. Not that I have followed this lesson religiously since, but when things get out of alignment, I definitely go back to what the core business is and shoring it up to perform (and limiting my shiny object syndrome tendencies.)
How did you help to navigate the negative impact of what was happening to your employees?
I believe three things really matter relative to one’s team and culture in trying times: regular communication, clarity of message, and staying true to our agreed upon core values. Being consistent in these areas has provided our teams as much security as is possible given the difficult or negative circumstances at hand.
If you had to, how did you handle layoffs?
It’s never easy to instantly change someone’s life so abruptly, so I prescribe to being direct and to the point. And share the bad news with as much compassion as possible. Additionally, provide resources where they can get assistance, new job opportunities, Cobra insurance, etc. What I’ve learned is the human race is way more resilient that we tend to give credit. I’ve been pleasantly surprised at how well people have done in their next chapter(s) on the heels of being laid off.
How did you keep yourself centered as a Leader?
As I shared before, when times get challenging, sticking to the company’s agreed upon core values provides me with much needed congruence that otherwise would keep me sleepless at night. And for me personally, I need to get outside on my bike, walk or hike. I also meditate and read almost every morning first thing as a soft on-ramp to the day.
Additionally, in January 2009, I was having lunch with a good friend, Bob Neuman, and we were commiserating over the economic downturn. We were doodling on the paper table coverings at Ted’s Montana Grill, talking about strategies we could employ to get our revenues back up given that our products were non-essential. After we exhausted all the traditional sales and marketing ideas, we flipped our thought process around to empathize with our peer business owners and then the light went on. Let’s create something that serves ALL entrepreneurs, CEOs and business owners that are facing the exact same thing. What came of that lunch was Colorado Thought Leaders Forum, an organization that is now 10+ years old that brings timely, value-rich, content and connection to Colorado executives. All this to say, serving-back has been one of the most centering elements of my life and career.
Where did you find strength in the community?
During the 2008 downturn, I leaned on both my YPO and Vistage peers. I have always found strength and comfort by having peer groups where I can be transparent and vulnerable, and don’t have to be “on.”
What specifically came out of this support was developing a “rally cry” for 2009 that we would “Beat the current business cycle,” and we really did. By the end of the second quarter, we had secured 20% of the 40% business we had lost back, and were producing such significant profits we launched a national expansion strategy that even put the industry’s largest competitors on their heels. It was a really exhilarating time for our entire team, customers and even community to be thriving when our competitors were very slow in their recoveries.