THE “NEW SUSTAINABLE ECONOMY”

February 28th, 2009. Published under Uncategorized. No Comments.

Some economists say in their most optimistic view the US has only reached the halfway mark in terms of layoffs expected for this recession. A growing number of economists also say that the US economy is not just shedding jobs temporarily, but may be undergoing a painful restructuring process that will eliminate some types of jobs for good.

Professor Peter Morici, of the University of Maryland’s Robert H. Smith School of Business stated: “We are seeing very large layoffs-the kind you get when companies don’t expect to be re-employing any time soon.” “They [represent] structural, not cyclical, changes to the economy. We’re looking at a permanently smaller economy with prolonged unemployment at an unacceptable level.”

This type of workforce can’t afford to bolster the economy. The dirty little secret that no politician wants to acknowledge, and only a few economists are courageous enough to declare, is that spending will be altered, if not permanently, for a long time. We are transforming into a “new sustainable economy.” Consumers will only spend for things they need or that add value. Businesses that offer these products and services will survive and businesses that don’t will cease to exist. There is no question that it will be a smaller economy, and perhaps Americans will have a different standard of living. Whether different will be viewed as for better or for worse solely depends on our evolving values. After all, we are the nation that exported consumerism. Made entire nations feel suddenly impoverished by comparison to families on Beverly Hills 90210.

What lies ahead will be a transition to sustainability in every aspect of our work and our personal lives. We will consume only what we can currently economically support. We will only consume resources at a level that is sustainable for the planet. We will develop a sustainable emotional existence, one that is not dependent on “happiness” we can purchase or swallow. We will work in a manner where our efforts are directly focused on ways to create value in our organizations and to make sure our organizations are focused on things that add value as if our lives depended on it. And now, they do.

Community Building – A New Approach to Leadership in the “New Economy”

February 14th, 2009. Published under Leading in the New Economy. No Comments.

It takes a village to survive in difficult times.  The wagons have to be circled, the gates of the fortress locked, and all able bodied citizens must prepare for battle.  A new contract must be forged with the workforce;  ”if we all just stay focused, creative and hopeful we can get through this together.”  This has to be more than talk.  Just like Mickey Rooney and Judy Garland rallied the gang to put on a show that will save the day, today’s leaders must inspire workers to achieve the impossible. 

It is time to redesign the company and its culture to compete in a new economy that is lean and tough, and will demand new ways of thinking about customers.  Customers will finally want just what they need and truly need what they want.   Consumers are beginning to understand that issues like global warming are fundamentally economic issues and they must balance short term goals with long term investments in infrastructure.  There are also consumers that are hungry for someone or something to explode the hope ignited by a recommitment to democracy in the U.S. 

Non-profit leaders have a lot to teach corporate CEOs about inspiring a workforce to create and contribute as if lives depended on it.  In the non-profit world lives often do, and the same can now be said in the New Economy.  Single mothers and former two-wage earners who are down to one wage are sitting in cubicles wondering if they will be next.

It can begin with a different approach to layoffs.  If you polled your workforce and asked everyone to take an across the board pay decrease in lieu of laying off a set number of people I believe the majority would take the cuts.  And then you use your workforce to reinvent the Company and be poised to take advantage of the next upturn.

Robert Maguire, the head of human capital services at CBIZ, a professional services company focusing on benefits, payroll and human resources, said that hiring freezes as well as salary cuts for some of the highest-paid executives, often can be better ways for companies to manage through a downturn.

Start building your Tribe today.  Gather your villagers; use their survival instinct to build your team, your department, your company, to create ideas, strategies and products for the New Economy.  Keep asking the question, “What do people really need.”  You will be the winner in the months ahead.

Check out Mark Hirschfield’s post:  http://markhirschfeld.wordpress.com/beating-the-bear-market-with-engaged-employees/