Peer groups can help business owners cope

You'd think the $12,000 that Doyle Research Associates, Inc., shells out so President Kathy Doyle can belong to one of Vistage International's chief executive peer groups would be an easy cut.

Think again.

"This is absolutely not the time I would consider dropping my membership," Doyle says. "Vistage started preparing us for the recession 16 months ago" with programs, training and coaching that "have helped me make decisions."

For Doyle, the combination of what amounts to an early trouble-ahead warning, and the opportunity to share tactics and ideas with peers means she "can't afford not to be" part of the group.

Headquartered in San Diego but with a membership office in Rosemont, Vistage provides peer group experiences for chief executives and key management players of small and medium-sized businesses. Groups meet monthly under the guidance of a Vistage group chair; monthly one-on-one coaching is part of the deal.

There is value in having other businesses owners to talk with, says Ray Silverstein, president of Chicago-headquartered President's Resource Organization. Peer groups "help people do things they don't always want to do in tough times," Silverstein says. "Your peer group will make you act."

For example, members of one of The Alternative Board local peer groups stressed that a member should "lay off key people," says Zbig Skiba, a TAB-certified facilitator. "He needed someone to tell him he couldn't afford" so much staff.

TAB, based in Westminster, CO, has 10 Chicagoland facilitators.

Vistage members have pretty much "decided not to participate in the recession," says Dennis Kleper, principal at Dennis M. Kleper & Associates, a Skokie law firm, and a Vistage chair. "We've been listening very carefully and aligning our strategies. Our members were prepared for the economic malaise."

Doyle isn't part of Kleper's chief executive group, but she was prepared for the downturn. Among the actions she has taken at her Chicago firm:

Restructuring the Doyle Research client base. The intent is to replace auto industry clients with ones in health care, where "We have been successful in building new business," and higher education, "which doesn't spend a ton of money - but we're looking for incremental dollars."

Keeping the marketing budget intact, but dollars have moved from print to the web. The focus now is on pay-per-click, search engine optimization and e-blasts.

An across-the-board 20 percent pay cut, announced in December and effective January 1. "Employees accepted (the cut) fairly well," Doyle says. "I positioned it not as doom and gloom but as our tactic to survive and position ourselves to thrive in 2010

The 401(k) match has been suspended for a year.

Peer groups can help. If you'd like to explore the concept, begin at www.propres.com, www.tabchicago.com and www.vistage.com/chicago.

Questions, comments to Jim Kendall, JKendall@121MarketingResources.com.