Monday, November 10, 2008

Denying the Existence of the Recession

One of the ways all of us deal with things we don't like is to ignore the existence of that which we don't like.

If our weight has gone up, we may not climb on a scale.

If we have bad news to deliver to a client, a friend, or loved one, we may choose to just put the news out of our mind.

Is denial of reality a coping mechanism that you use regularly in various aspects of your life?

If you are a regular user of denial as a coping mechansim, then it is highly, highly likely you are denying the recession and all the consequences of the downturn.

I wish I had a dollar for every person who tells me that they will not get laid off.

When I ask what they are doing to make sure that they don’t get laid off, few are able to cite any significant changes in the value they are creating for their employer. And, even if you are creating more value, the continuation of your job is subject to numerous factors beyond your control. Companies are closing divisions and laying-off everyone in the division. And, a record number of companies are being liquidated out of existence.

Having no personal Plan B, in the event of a layoff, is as careless for yourself and your family as driving without a spare tire (or never flat tires). Or, as careless as going whitewater rafting without a life jacket.

"It can't happen to me" is literally the famous last words for too many people.

The reality of this recession is beyond question. My earlier series outlined six reasons why this recession will be deeper and longer than most are predicting. And, every day there is more evidence to support this hypothesis.

Fortunately, what is not as clear is how the recession will impact you. If -- instead of denying its existence -- you embrace the existence of the recession and make smart adjustments to your behaviors, you can not only survive this recession, you can be among those who will prosper in spite of the recession.

Up next: In my next post, I will cover the most common of all attitudes about the recession, fearing its existence.

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