The wine industry is faced with one of its most challenging periods in decades. The culprit this time isn't a disease threatening the vineyards or an oversupply of fruit resulting in inflated inventories. It's not even from the typical rising costs of materials or labor. The challenge we are facing is our severely depressed economy. From a wine industry perspective, the effect has been a seascape change in wine buying habits. We have gone from a relatively healthy market trading up in price points to one that is now trading down at an alarming rate. Inventories of luxury-priced wines are bulging. Distributors and wholesalers are resisting taking on more product until they deplete their inventories. Although consumers continue to purchase wine at record-setting levels, their purchases are being made at price points that are dramatically reduced.

Historically, the wine industry has been relatively immune to economic woes. But not this time. Consumer confidence in our economy remains low; and as a result, consumers are spending less on non-essential items. The wine industry is now, like virtually every other industry in America--and the world, for that matter--hunkering down, reducing costs, adjusting business models, doing things more efficiently. Already we've seen cost-cutting initiatives throughout the industry and across every function. Wineries must do more with less, be more efficient, but without compromising quality.

So, why, in this period of economic turmoil, should you be concerned about your top talent? Why should this be a top priority when jobs are scarce and unemployment is approaching a level not seen in decades? Why should you be concerned about retaining your best and brightest talent when employees are just "happy to have a job?"

Well, first, do you really want employees who are "just happy to have a job?" Not if your vision is to be successful in the long-term. The wine business is resilient and has withstood the test of time. While there may be fallout, repositioning of brands, new pricing strategies and even innovations and changes we can't necessarily foresee, the wine industry will survive and prosper. In fact, the wine industry may see early recovery as consumers begin to gain confidence in the future of the economy. However, economists are predicting that prices, especially those of non-essential products, may never return to the levels we have previously seen. Wine industry leaders of the future are not just "still functioning." They are approaching their businesses with a renewed focus and intensity that requires employees to adapt, change and contribute to new growth models.

In these demanding times, you most likely rely on a relatively small group of people in your organization to help you address the tough issues, identify opportunities, find creative solutions and implement necessary change. This small group of people are your key players, your brightest and best, your Top Talent. They are the future of your organization. These are the players you need on your team to not just survive the difficult time but also for you and your organization to be in a position to seize opportunity when the times turn. And you need them to be totally engaged.You need their hearts and their minds. You need their loyalty and trust. So how do you make this happen? This is where the Gut Check comes in.

GUT CHECK

We all have our own opinions, perspectives and viewpoints that we may or may not share openly with others. However, whether or not we share them, our viewpoints manifest themselves in our actions. And our actions define who we are to those around us. It's important to take a look at viewpoints--take a "Perspectives Gut Check"--to ensure your perspectives and/or those of your management team are not detrimental to engaging your top talent.

PERSPECTIVE

• There are very few jobs out there so employees have very few opportunities to leave and find another job. We don't need to worry about people leaving.

While true that the job market in the wine industry is tight, top talent is in demand regardless of economic conditions. Smart competitors are always on the lookout for the best and brightest. Make no mistake about it, top talent is in demand--especially in this market.

• If people leave the company, so what? It saves me having to go through a restructuring or reduction in force.

Not so quick. A recent study conducted by a nationally recognized testing and training organization (Source: Leadership IQ), concluded that almost half (47 percent) of top-performing employees are actively looking for jobs while only 18 percent of low performing employees and 25 percent of middle performers are actively looking around. Think about those statistics. If financial viability indicates a need to reduce your work force, you have significant control over who remains with the company. However, if you reduce force by attrition only, you run the risk--a high risk--of losing top talent and having remaining workforce that is dominated by poor to mediocre employees.

And even if you don't need to reduce staff, beware! The statistics say close to 50 percent of your top talent is already on the lookout for better opportunities!

• I don't have time to worry about the people. I'm too busy trying to save the company.

It sounds obvious but often overlooked: If you don't have people, you don't have a company! And if you don't have good people--great people--you can't have a great company. In difficult times, everything you do must be done better than the competition. Now more than ever, it is critical to focus on the people that bring the most value to the organization. And to be well positioned and competitive when the market turns, you need to be ahead of the curve. That requires the brightest and the best to be on your team.

• The less people know about what's going on with our business, the better. Besides, I don't have time to talk to them anyway.

Studies have shown that one of the most important contributing factors to a motivated and committed workforce is communication. And in difficult times, it becomes even more important. What employees don't know, they make up. What they make up is usually worse than reality. Communication with your top talent is especially critical. Don't assume that the individuals you consider your top talent know that they're your top talent! If they don't know that they are valued as key to your organization, not only will they probably be looking for another opportunity outside your company, but you are most likely not getting their full potential of performance from them.

• Everyone has to suffer. We need to take away all "extras," benefits and perks.

Tightening the belt is necessary. Cutting off the blood supply is deadly! Yes, removing extras and perks may be necessary and often one of the easiest places to find savings. However, do so wisely. Get input from your top performers and understand what is important to them. Communicate what you are doing and why you are doing it. Don't forget that often it's the little things that gain the most commitment!

TOP TALENT

We've already identified the high performers in your company as "your go-to people." Challenging times prove to showcase your best performers. We all know that it is relatively easy to manage and lead in good times. However, it is the periods of uncertainty and adversity that showcase the top performers, where the "cream" rises to the top. Wineries that recognize, develop and value top talent will be best positioned to sustain this economic downturn and, more importantly, will be positioned to thrive as the economy recovers.

RETAINING TOP TALENT

There are the obvious factors why top performers leave for new opportunities, such as a position with increased scope in responsibility and accountability, greater compensation and/or more growth potential. Fundamentally, however, top performers often leave because of how they are treated, especially during this often stressful period of economic uncertainty.

Top performers are, rightfully so, usually chosen for difficult and critical assignments. (You would not choose a poor performer to take on a difficult and critical task!) Often, however, top performers are chosen and assigned the most difficult and demanding tasks or projects with little support, guidance or appreciation. It is the top talent, the highly valued employees, who often work long hours and weekends with little recognition; and it is these same valued employees who are often the recipient of the bosses' wrath and criticism when things don't go as anticipated, regardless of the circumstances. These are your high performers: the critical go-to people in the company.

Savvy competitors seek work environments that are unsupportive and unappreciative of people as an opportunity to poach top talent--especially in this economic climate. Today, it is even more important that you retain and motivate your top talent. When these times turn, and they will, you need to make certain your organization is well positioned to meet the challenges of the future with outstanding talent.

CHECKLIST

• Know your perspective. Focus on your actions and their impact on your high performers. Don't assume anything.

• It's not just about the money. Money usually isn't what matters most to employees. Top performers recognize it's belt-tightening time. Involve them in cost-cutting decisions whenever appropriate and possible.

• Recognize. Don't criticize. Your top people typically take on the most demanding work. Try being more appreciative and supportive of their work before delivering a potentially damaging comment.

• Communicate. Communicate. Communicate. Be honest and straightforward. Keeping people in the dark, skirting issues or sharing only part of the story raises the level of apprehension and fuels rumors and speculation.

• Engage and challenge your top talent. Use your top talent to problem-solve, address the issues and examine new business strategies and solutions. Working side by side with senior leadership reinforces their value to the organization. It's a good way of insuring a long-term commitment from your top performers.

• Invest now, not later, in recruiting top talent. Successful organizations recognize that one of the best times to invest is when others are selling. The same holds true for investing and acquiring top talent that will deliver results in the future.

THE FUTURE IS NOW

These small and special groups of high-performing employees are crucial to the success of your company today and into the future. Identify them, protect them and invest in them. The very success of your business depends on it. wbm