There is truth in the old saying, "Respond in haste. Regret in sorrow." When leaders fail to gather information and critically assess the long-term impact of decisions, severe errors are made. Consider the Big Three auto executives who knee-jerked their way on private planes to ask for a handout without ever having a plan. Now that's a bonehead mistake.
Before acting, stop and breathe. Think long-term strategy. Be cautious. Be proactive. Test your decisions by saying, "If this... then this..."

First, answers are often found at the floor level, not at the ceiling. Involve everyone in the search for efficiencies and innovations. Engage everyone in a common vision and mission. How refreshing to have the Obama team now posting discussions on the Internet and seeking input from a variety of people with differing viewpoints. Building transparency goes a long way toward building trust and making us all feel we are part of the solution.

Mistake #3: Cut. Cut. Cut
No company has ever downsized its way to greatness. Underserved customers and too much work to be done by too few people are examples of the costs of wholesale terminations. These are cuts that could have been done with a scalpel instead of a hacksaw. Canceling a meeting? This is the time to gather and candidly talk. Substitute Jell-O for Jamoca fudge and two-buck chuck for filet mignon but bring people together.  As for layoffs-if your organization or department can handle this-bring everybody together and lay out the facts. One very smart leader found that employees were willing to reduce work schedules, work half-time, and job share rather than have members of their team terminated.