Fortunately, the Great Recession was the sixth recession that Derrow and some of his executive had been through. It wasn’t their first rodeo — even if it was the deepest he’d experienced in a leadership role — and Ohio Transmission Corp.’s team has gained insights into how to manage through a recession that are still valuable today.
“The lessons we’ve learned on those more recent ones certainly come into play,” he says. “We learned better how to deal with people. We learned better how to manage the changes we have to make — the speed with which we have to make them, the communication level we have to have.”
Derrow says it’s important to avoid repeating your errors, while keeping in mind that you’re going to make mistakes this time that will apply to the next slowdown. Everyone’s situation is different, and there’s no one right answer.
“I learned a long time ago that there isn’t a right way to do much of anything,” he says. “There’s a whole bunch of right ways.”
And no matter how bad it gets, remember that recessions and depressions always end, so do your best to stay positive.
Manufacturing is still important in the United States, and the trend of onshoring is likely to accelerate. The benefits of that should ripple out through the economy.
While not every company will survive, as business recovers, you’ll want to be a position to capitalize on any opportunities, Derrow says. Don’t make the mistake of ignoring what’s going on. It’s a dynamic environment, so don’t be shy about working hard and positioning your company correctly.
“It’s so easy to get wrapped up in, ‘This is the way our business is, so when things get back to whatever normal is, we’ll go back to doing that,’” he says.
In addition, if you’re reasonably confident your business is going to survive, your employees need to know it.
“They need to know that there will be opportunity,” Derrow says. “They need to know you have their back. They need to know you’ll be honest. But if things have to happen, you have to say so. You can’t lie to people; they’ll never trust you again.”
Takeaways:
- Empower your team to generate critical flexibility.
- Manage through a crisis with speedy, tailored decisions.
- Seize your opportunities and stay open to new ideas.
The file:
Name: Phil Derrow
Title: President and CEO
Company: Ohio Transmission Corp.
Born: New York City. My family moved from New Jersey to Columbus when I was 3.
Education: Bachelor’s in marketing from The Ohio State University
What did you want to be when you were a kid? I am old enough that I remember the Apollo program. I was 9 in 1969. I’ve always had a thing about airplanes. I was one of those kids that always looked up in the sky when I heard an airplane. Sixty years later, I’m still one of those kids that looks up in the sky whenever I hear an airplane.
When I started college, I thought I’d be a fighter pilot. Unfortunately, at that time, they didn’t let you in if you didn’t have perfect vision.
What was a challenging management skill for you to learn and why? How to hire people better than me. The first time I needed to do that, I didn’t do it particularly well. It wasn’t that I didn’t want to, it’s just I didn’t understand what I was trying to accomplish.
Where might someone find you on the weekend? I have been spending a lot of time in my woodworking shop behind my house.
I am an active pilot, so I fly regularly. We fly — my wife and I, and family — all over the country. I’ve even flown high-performance airplanes. Up until COVID-19, I was supposed to fly a plane supersonic, but that got pushed back.
In the wintertime, you’ll find me in Jackson Hole, Wyoming, skiing, and you’ll find my wife and I occasionally in Florida.
