Prospering in Tough Times

Attracting Great Mentees

2009-04-13T17:17:00.002-04:00

As powerful as having great mentors is having great mentees, for when we “teach” we learn.

I am blessed to have a busload of great mentees, or protégés. They range in age from 21 to 66. Yes, indeed some are older than me (there is no rule that mentees must be younger). And, some are almost young enough to be a grandchild. The breadth and diversity of the group so enriches my life. Our discussions are constantly stretching my thinking in all kinds of different areas.

So how do I find great mentees? I find them everywhere. I find them in my clients. I find them at seminars I attend. And, I have even been known to be proactive in “adopting” someone whose book or article or speech I particularly enjoy.

Where do I find the time for my mentees? That is easy, as I find the time for all the things that are important to me. And, my mentees are very important to me! I carry a list of my mentees with me and when I am on the road and have a space in my schedule, I drop them a note or schedule a catch-up phone call. And, when they reach out to me, I make a special effort to be quickly available to them.

Like with other aspects of my life, my mentee relationships often evolve to be long term ones. I have been married 35+ years; I have client relationships that are 10+ years (one is 25+ years); and I have mentoring relationships that are 20+ years. The fabric of my life is supported by the long term relationships which I enjoy.

I am grateful for the kind words I get from time to time from my mentees. But, I am even more grateful for all that I learn from their trials and tribulations. And, I get incredible energy from watching them succeed (and my busload of mentees experience a lot of success!).

One of my early role models was Zig Ziglar. Many years ago, he drilled into me the philosophy that:

You can get whatever you want in life,
if you will help enough others get what they want.

I am strong believer that we perform roles in life best when we are skilled at both sides of the relationship. The best leaders also know how to be good followers. The best speakers know how to be great listeners. And, the best mentors know how to be a good mentee.

My life is enriched by my mentoring relationships, on both sides of the relationship. So too can yours be .

In these tough times, having great mentoring relationships, on both sides of the relationship, is important to having the kind of support team that is key to achieving prosperity…in every sense of that word.

Coming Next: In this twelve part series, I will be addressing each of the types of members of a great personal team. In my next blog post, I will be sharing information on Selecting the Right Role Models. The series starts here.

Attracting Great Mentors

2009-04-11T19:45:00.002-04:00

In interviewing peak performers from all walks of life, for my weekly radio show on Peak Performance, I always ask my guests to share the role that being mentored has had in their success. Consistently, my guests cite having great mentors as being very important to their success.

As a result of my radio show experience, I love asking people that I meet about their mentors. As a result of this informal research, I have become a believer that there is an incredibly high correlation between those who have had the benefit of mentors and success. But, here is the important point. In the vast majority of cases, the mentee selected the mentor!

Many of us grow up with the image of the magic moment where a successful person reaches out and says “will you let me mentor you to success.” Well, successful people figure out that they need not wait for the magic moment. Often, the mentee initiates the mentoring relationship. In many cases, they never even ask to be mentored…they just start absorbing the wisdom of the mentor and consistently express their appreciation for what they are learning. From such a beginning, a fuller mentoring relationship often develops.

I have been blessed with having an incredible group of mentors. Not one of these relationships was started with a mentor offering or by my requesting a mentor relationship. For me, the key was my being open to receiving the wisdom of the mentor and being prepared to consistently reflect my appreciation for the interest in my success being taken by these successful people.

In essence, I have come to believe
that mentors…like friends…are a gift you give yourself.

I can’t imagine going through life without having a couple at any one time.

If you want to learn more about the power of mentoring, my favorite book on the subject is Power Mentoring, How Successful Mentors and Protégé’s Get the Most Out of Their Relationships. This book does a great job of explaining how mentoring has changed in recent years….including the change of one having mentor(s) younger than oneself.

One of the best ways to learn to be a great mentee is to mentor others. Time and time again, when I recommend to professionals without a mentor to attract a mentor by becoming a mentor, they report that shortly after they started mentoring, a mentor came into their life.

These are very challenging times. Navigating these whitewater times solo is just not smart. If you don’t have a mentor, make the choice to attract one or more mentors. If you are fortunate enough to have a mentor or two or three, make sure that you let them know just how much you appreciate their help.

Coming Next: In this twelve part series, I will be addressing each of the types of members of a great personal team. In my next blog post, I will be sharing information on Attracting Great Mentees. The series starts here.

Are You Surrounded by The Right People?

2009-04-04T22:05:00.003-04:00

The quality of your life is, in large part, a function of the people with whom you spend your time.

Never has this truism been more true than in these challenging times. Think of these as whitewater times. Wouldn’t you want to be navigating whitewater with as fine a crew in your raft as possible? Well, why wouldn’t you want to be navigating these tough times with as fine a crew as you can attract?

One of things that I have learned from my years of research on personal peak performers is that:
high performers are very proactive in surrounding themselves with the right team.
Peak performers build and maintain a team that provides quality support in every aspect of their life. Their teams include quality:

1. Mentors
2. Mentees
3. Role Models
4. Mastermind partners
5. Coaches
6. Accountability partners
7. Colleagues
8. Clients or customers
9. Professional advisors
10. Family & friends

In the coming blog posts, I will be sharing how each of these is important to your being the best you can be. For now, I just want to get across the message that:

your performance is a function of the quality of your team.

And, the quality of your team is one of your most important life choices.

So, how great is your team? On a scale of 1-10 (high) in each of the ten kinds of team members, score your current team. If you don’t have anybody in any of the categories (for example, you don’t have anyone is a mentee), give yourself a zero in that category.

If your score is less than 70, than I am confident that you could make a quantum leap in improving your performance, in all dimensions of your life, by putting in place the right team and opening yourself up to absorbing their wisdom.

If your score is more than 70, I am confident that you are someone who is doing well with the talents with which you are blessed. Congratulations! But, even you can improve your results in life by looking at how you can improve the quality of your support team. For example, if you have a coach, have you outgrown your coach? Are any of your mentors losing the impact they have historically had on you? Are you in a Master Mind group that has lost it’s way? Etc. Etc. Lifting your score by twenty percent, will…I am confident…have a concomitant improvement in the results in all dimensions of your life.

Life is a team sport. Our success in life is every bit as much a function of the quality of our team as it is in our singular capabilities. Those who will prosper in these tough times will be those who choose to surround themselves with a great team.

The choice is yours!

Coming Next: In this twelve part series, I will be addressing each of the types of members of a great personal team. In my next blog post, I will be sharing information on Attracting Great Mentors.

Givers vs.Takers

2009-03-31T07:30:00.003-04:00

Have you noticed that the response to the downturn by some people is to become a hoarder? Some people hoard their wealth, their contacts, their compliments and everything else like a squirrel hoarding nuts before winter sets in.

Hoarding is a very natural defensive behavior to an expected period of shortage.

On the opposite end of the spectrum are people who have stepped up their sharing and giving to others. These people approach life, even in a downturn, with a philosophy that the world is abundant and prosperity comes to those who open themselves up to the world.

These people are givers, and are in sharp contrast to those who are takers in life. Givers share their contacts, their time, their expertise and even their money with others. They do so with a philosophy that was best summed up, for me, many years ago by Zig Ziglar:

"You can get whatever you want in life, if you will just help enough others get what they want."

I am so blessed to be surrounded by givers. They nourish me in so many ways. And, I am so grateful for their presence in my life. This is not by accident...for I walk through life with Zig Ziglar's sage advice top of mind.

Of course, we all want to be viewed as more like givers, than like takers. But, what are you? What would an honest friend say about you? What does the composition of your circle of relationships say about what you are?

Like in good times, I believe that prosperity will primarily flow to the givers, even in these tough times.

The choice of what you are is up to you.

Dennis Rodman Fired on Celebrity Apprentice Show by Donald Trump

2009-03-30T10:04:00.001-04:00

With a busy consulting practice, and a very active speaking and writing calendar, watching TV is a relative rarity for me. My wife and I do enjoy watching Donald Trump's Celebrity Apprentice on Sunday evening.

Last night's show was very poignant what with the high drama of a boardroom scene that featured a quasi-intervention for the benefit of Dennis Rodman, former NBA basketball star and famous showman.

Words will not do justice to what played out on tonight's show. Watching Donald Trump, Ivanka Trump and some of the celebrities deal so lovingly with Dennis in an effort to start him on the path to dealing with what was portrayed as a real drinking problem was very moving. You can watch the Week #5 show online here. (One only has to view the last 15 minutes to see the drama and get the point.)

Reality TV certainly has a lot of modeling of bad behaviors that likely contribute to some of the sadder moments of our society. Kudos to producer Mark Burnett and Donald Trump for using the show as a platform for some positive role modeling - getting across the destruction of alcoholism and the beauty of friends who have the courage to do an intervention of someone needing help with their drinking.

The star of tonight’s episode was Jesse James, himself a recovering alcoholic. James has been impressing me every show for his stand-up style and brilliant creativity. But, tonight showed why Jesse is the class of the show.

I was particularly moved as I had spent the day planning an intervention with a friend who has started a downward spiral from another form of addiction.

In these tough times, many will unfortunately fall prey to addictive behaviors of all kind.
Getting a loved one, friend or employee to professional help for their addictive behavior is so, so important.

A list of some of the leading helpful resources is displayed half-way down on the right column of this blog.

Getting someone the help they need will bring you a prosperity far beyond what money will likely ever bring you. And, that is what this blog is all about.

Watching a friend in a downward spiral from addictive behaviors? Learn how to do an intervention and get your friend some help.

Leaking Money Like a Sieve

2009-03-26T04:08:00.004-04:00

Is your business or the business of your employer leaking money like a sieve?

I am continually amazed at how often I see businesses that are concerned about not having enough business, while at the very same time they are destroying that business that they do have.

Previously, I posted about the Bellagio Hotel in Las Vegas as an example of this situation. Since that post, I received communication from other guests having similar problems. (And, the Bellagio has chosen to never respond to my follow-up communication with executive management. Amazing!)

Now, my point is not, per se, the Bellagio. It is about businesses just leaking money like a sieve.

Let me give you another example. I am a huge fan of the free newsletter, Early to Rise. I like their free content, respect their paid programs, and I have long admired their business.

I signed up for a year long program they sponsored with consultant Bob Cox. I enjoyed year of Cox's program and in December received notice that if I wanted to continue in the program, I did not have to do anything, my charge card would continue to be billed monthly.

Come January, I noticed communication from Cox had stopped (and so too had the monthly charge). When I received nothing in February, I became concerned and so I submitted an online trouble ticket. As I recall, their site said I would hear back within a week. Two weeks later, I had heard nothing.

So, this time I called customer service, rather than using their non-responsive online customer help function. The customer service rep was very nice and after some research said that the problem was my credit card had failed to go through. Interestingly, they apparently don’t send out an automated notice when a car is declined (which in long programs can happen for things as simple as needing an updated card expiration date). I must admit I don't check every month on these types of programs to see to it that the card they have is still valid.

So, I tell the customer service rep that I want to continue with the program and give him a current credit card. It is now a couple of weeks later and I have heard nothing from the program. When I get my credit card statement, I will find out if they are billing me and, if so, start the customer service process again.

How silly. More accurately, how sad! This is a multi-million dollar business leaking money. Driving away a client who likes their product as result of apparently lacking adequate back-end systems (of the form that businesses 1/100 their size routinely have).

My point is not to attack Early To Rise. I am using them as a real example of another fine company that has bad service problems. Something I see every day.

Is your business leaking money? Is your business driving away customers who want to do business with you?

PS This is just another example of the opportunities in these tough times. How about being a money leak fixer for businesses?

Help for Laid Off Employees

2009-03-21T18:34:00.003-04:00

As the unemployment situation grows...and I believe it will continue to get worse before it gets better, each of us is likely to have a relative, close friend or neighbor who experiences the trauma of losing their job at this time when jobs are so hard to find.

We face to two choices with these friends...we can turn the other way and make like we don't see their misfortune, or we can extend a helping hand.

Ron Leiber recently wrote a terrific column in the New York Times on this subject: Layoff's Duty to The Less Fortunate. Beyond Ron's thoughtful list of tips, he has posted a a fine list of recommendations from Amy Baker that originated from a time when she was laid off.

Because I am so grateful for my very active consulting business and compassionate about those losing their job for no reason of their own doing, I have chosen to extend the helping hand, rather than just turn away and ignore the problem.

My personal focus with people in this situation is to inquire about the support network they have in place.
Ultimately, getting re-employed is more than a one person task in these trying times.

It is critical that a person quickly put in place the right support team and make good use of such a team. The role of the right team is to provide both emotional support and substantive assistance.

Amy Baker's list is so good that I will now also use her wonderful list in my efforts to help friends in this situation.

Here is the wonderful thing about helping people who have been laid off. Not only will you be helping your friends, but you will also experience a sense of gratitude that will help you in many dimensions of your own life.

Prospering in tough times is about more than just hoarding the largest pile of money in these tough times!

False Evidence Appearing Real - FEAR is All Around Us

2009-03-15T13:31:00.005-04:00

I am sure that you have noticed that fear surrounds us. Not since 9/11 have I seen so much fear among the general population. Fear of losing a job. Fear of not being able to find a job. Fear of having wages or benefits reduced. Fear of having a medical emergency and being without health care insurance. Fear of having to work way past 65 in a work place that often exhibits unsaid age bias. Fear of losing your home. Fear of losing more of your retirement funds. Etc. Etc.

In connection with my work with peak performers, I have been studying the emotion of "fear" for many years. As you know, fear can trigger physiological defensive reactions that are quite helpful...they even could be life saving. But, fear also can be debilitating. What I am seeing a lot of is people whose fear is debilitating...people who could improve their productivity and quality of life if they could manage fear better.

What fears do you currently have that are being counterproductive to your prospering in these tough times?
My most powerful lessons in managing fear came through my six Outward Bound wilderness experiences (the lessons from which were described in a series that starts here). Each of these 10-12 day experiences contained elements that forced me to deal with a variety of fears (heights, cold, heat, whitewater, etc.). From these experiences, I learned about the power of looking at fear through the prism of the acronym F.E.A.R., False Evidence Appearing Real . I have learned to challenge feelings of fear with the test of "is this just False Evidence Appearing Real?"

Well, I know most readers of this blog are not about to go off on an Outward Bound experience to learn how to better manage their fears. A quicker and less expensive way to learn more about managing fears is a wonderful book by Joseph Bailey, Fearproof Your Life, How to Thrive in a World Addicted to Fear.

Bailey does an excellent job of explaining fear and of laying out specific ways to break away from the tyranny of living in continual fear.

These really are tough times for so many Americans. But, they need not be times that you fear. Manage your fear and you will be taking an important first step in embracing the recession, the subject of a four part series that starts here.

Hole in Sidewalk Story

2009-03-13T18:59:00.002-04:00

Many coaches and some of the addiction recovery programs like to use a short powerful poem that is a wonderful metaphor for how to live life...especially in these tough times. Recently one of my coaches, the very talented Jennifer Sabin, reminded me of this powerful poem by the late Portia Nelson. The following poem is from Nelson's book There is a Hole in My Sidewalk:

''Autobiography in Five Short Chapters

I. I walk down the street. There is a deep hole in the sidewalk.I fall in. I am lost. . .I am helpless. It isn't my fault. It takes forever to find a way out.

II. I walk down the same street. There is a deep hole in the sidewalk. I pretend I don't see it. I fall in again. I can't believe I am in the same place. But, it isn't my fault. It still takes a long time to get out.

III. I walk down the same street. There is a deep hole in the sidewalk. I see it is there. I fall in . . . it's a habit. My eyes are open. I know where I am. It is my fault. I get out immediately.

IV. I walk down the same street. There is a deep hole in the sidewalk. I walk around it.

V. I walk down another street."

Portia was a multi-talented artist and real Renaissance woman who upon her death the NY Times called "one of the most beloved New York night club performers of the 1950's." She was also a songwriter, painter, actress, and author.

In today's environment, holes abound. The question is do you keep falling in the same hole? Or, the same type of hole?

Or....are you taking graduate level courses in tough times, learning from your experiences, and appropriately shifting your direction?

The Snowball is Rolling Faster

2009-03-05T08:06:00.003-05:00

It has been five months since I wrote about the snowball lesson.

Here we are almost two months into a new administration and the snowball is still gathering speed. The economy just keeps getting worse. Regretfully, we do not appear to be close to yet hitting bottom. The reasons I cited five months ago in my series as to why I expected this downturn to be severe and long lasting become ever more apparent. Yuk! Yuk! Yuk!

Those looking to Washington for a solution could be in for a long wait. Our President's financial team is doing little to inspire much confidence. Every day, I become more concerned that Treasury Secretary Geithner has been unable to get his senior team in place. Adding to that disability, the press reports that National Economic Council Chairman Larry Summers learned little about controlling his immense ego from his relatively short tenure as Harvard President (I am not in Washington so I can't know for sure if the press reports are correct, but anyone who would let himself be proposed as the Economic "Czar," as Summers did, certainly is suspect for having a major ego problem). And, reportedly Paul Volcker is not really being listened to. Already some pundits are referring to the liklihood that the gang will beome known as "the gang that couldn't shoot straight."

Let me be clear. Solving this world wide economic problem is beyond the capabilities of any one person. Teamwork is needed every bit as much as raw intellect. And, we all know that teamwork is not something for which Washington is known.

So, does that mean I expect the end of the world is near? Hardly!

I continue to believe that each and every one of us has the capability to chart a personal plan for prosperity. The best course of action is the one that I learned from Outward Bound many years ago, self rescue.

From time to time, I report the bad news on this blog so that readers will get the message of how important it is for individuals to promptly take the right actions. If one thinks that a turnaround in the economy is imminent, one can be lulled into inaction.

The vast, vast majority of my posts are positive stories of individuals who are leading the way through their actions. The recently concluded series on people who "get it" is a composite of men and woman, from a variety of vocations, who are taking actions to help themselves and to help others to prosper. And, my earlier series on Lessons from the Masters likewise shared tips from some very capable thought leaders.

I am a huge believer in the strength of the human spirit.
I believe we are in the early stages of the latest reinvention of our economy here in the United States. Those individuals and companies that embrace this reinvention will prosper.

Those that fight this reinvention are likely to suffer long and hard.

The choice is yours. I choose to embrace the reinvention. I hope you will do likewise.

Ali Brown Gets It!

2009-02-28T16:06:00.001-05:00

Ali Brown definitely gets it! Ali is yet another example of an individual who understands that there is a very real economic downturn occurring, but she has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Ali Brown is teaching entrepreneurs how to use the internet to accelerate the growth in their business. Among the things that I so respect about Ali is the quality of the information that she dispenses in her free newsletter and the quality information products that she has produced. Depending on how fast one wants to grow on the internet and how much "hand holding" one needs, Ali's company has developed a product, seminar or coaching service to fit one's needs. Smart!

Now, there are a ton of internet mavens offering entrepreneurs the keys to instant riches. In fact, one of the few bright spots in our economies is all the people claiming to be millionaires and eager to show others how they to can become overnight successes. By contrast, Ali Brown consistently makes the point that growing an internet business is serious WORK and requires diligent effort over an extended period of time. She shares that Brian Tracy philosophy that success is not about luck but instead all about preparation and perspiration.

The challenge for entrepreneurs has long been to distinguish between the quick buck artists who promise instant wealth and the advisors whose advice is credible. Think about all the areas in which an entrepreneur needs to make the right choice: lawyer, accountant, tax advisor, investment advisor, marketing advisor, systems consultant, internet advisor, etc, etc.

The quality of the choices that an entrepreneur makes about his or her mentors, advisors and consultants will have an enormous impact on an entrepreneur's success.

Entrepreneurs are critical to the recovery of our economy. Emerging business must be built in keeping with the times, or they will not even launch successfully. The successful emerging businesses will not be flying into Washington on their private jets, ala the big automotive companies and the big financial institutions, to ask for handouts from the Federal government.

Sure, it takes a lot of start-ups to have the ripple effect of, say, General Motors. But, these are times when there can be a lot of successful start-ups. Millions of laid of managers are going to learn that there just aren't corporate jobs available that make good use of their talent, especially at decent compensation. Many will come to realize that entrepreneurship is one of the best ways to control one's destiny in this economic meltdown. The smart ones will make good choices with regard to the advice they get. And the really smart ones will look to advisors who provide quality free advice and a series of ways to gain even more advice at reasonable rates/costs. Ali Brown is a role model for just such an advisor.

Coming next: I will be saluting leading coach to the coaching and therapy worlds, Lyn Grodziki, in the next and final installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Kat Tansey Gets It!

2009-02-23T08:38:00.003-05:00

Kat Tansey definitely gets it! Kat is yet another example of an individual who understands that there is a very real economic downturn occurring, but she has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Kat Tansey is an author and radio talk show host who is dedicated to helping midlife woman find the magic in their lives, even in difficult times. Kat’s passion about helping others to survive, thrive and even prosper in these times is a great example of people whose approach to prosperity starts with helping others.

Kat’s second book, Choosing to Be, Lessons in Living from a Feline Zen Master, was recently released and is quickly becoming a best seller. This heartwarming story shares Kat's experience in literally saving herself from a severe unknown illness (at the time), which would later be discovered to be Chronic Fatigue Syndrome. She attributes her being saved to lessons she learned from her two beloved cats, Catzenbear and Poohbear.
Kat is also co-host with Nancy Marriott of the terrific radio show, Finding Magic in Midlife, where every week Kat & Nancy interview leading authors and coaches, as well as of women experiencing success in their careers, relationships, and health. Their show airs on Exceptional Wisdom Radio which has a rapidly growing audience of listeners who appreciate they can schedule their listening at their convenience through the wonders of internet radio. Her shows are also available, for free, at the ITunes store.

In tough times, it is all too easy to become very self-centered. I admire people who are dedicating quality time to helping others through these tough times.

Prosperity is more than the size of your bank account.

Besides being of service to others with your investment in helping others, you will be helping yourself by creating a powerful reminder for all that you do have. Your "gratitude cup" will runneth over!

Kat gets it! And, I hope that so too do you.

Coming next: I will be saluting leading entrepreneur advisor, Ali Brown, in the next installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Cheryl Richardson Gets It!

2009-02-21T07:58:00.005-05:00

Cheryl Richardson definitely gets it! Cheryl is yet another example of an individual who understands that there is a very real economic downturn occurring, but she has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Cheryl Richardson is an extraordinary woman. She is a best selling author and leading role model for life coaches. As an example of the latter, this week Good Morning America did a series with her coaching the staff of Good Morning America. What life coach wouldn't die for the kind of exposure seen here?

High media visibility is nothing new for Cheryl. She was featured on Oprah for a year with her life makeover segments. She has had two PBS specials. She regularly appears on the morning talks shows where you can easily observe the love and respect that the hosts have for Cheryl.

So, the fact that Cheryl is prospering in these times is not surprising. Cheryl has been doing right by people for many years. Whether it be a book or a seminar, Cheryl's products are always a fantastic value. Reasonable price and extraordinary delivery!

Consider her latest offerings. She recently launched her latest book, The Art of Extreme Self Care.

Not only is the book perfectly timed to meet the needs of her fans, it is beautifully packaged and written, and offered at a price that is a great value.

Besides being one of the most compassionate people that I know, Cheryl is also a very, very savvy business woman. Along with the launch of her book, Cheryl partnered with Hay House to offer a year long teleclass program that meets monthly. Once again, the program is well packaged, well delivered, and offered at a price that is both affordable and a great value. (Because prior classes are recorded for later listening, it is not too late to join me and others in this program by registering here.)

Cheryl is so not about money that I almost hate to even discuss the obvious economics. But with close to 1000 enrollees in the teleclass program, Cheryl has another income stream (in addition to book royalties), and one that leverages her expertise by enabling her to do the teleclass from home in just a couple of hours of work a month.

The concept of "prospering in tough times" is not just about one's income. Cheryl is doing nicely in that category. But, the greater prosperity comes from the tens of thousands who will be helped by her divinely timed book and the thousand who will benefit by the monthly teleclass program. And, that is on top of the 50,000 plus who participate for free in her world wide life makeover groups.

Cheryl is not cowering in fear over the economic downturn. She has embraced the realities of the situation, tailored her products/services to the times, and is out making a difference in the lives of tens of thousands. She is a role model for prospering in tough times. Prospering in every sense of the word!

Are you letting your fears of the economy stand in the way of your prospering? Have you embraced the realities of the situation and tailored your offerings to the times (whether as a business owner, or as an employee? Are you focused on helping others through these tough times?

Coming Next: I will be saluting radio talk show host (and also best selling author), Kat Tansey, in the next installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Michael Feuer Gets It!

2009-02-20T17:33:00.003-05:00

Michael Feuer definitely gets it! Michael is yet another example of an individual who understands that there is a very real economic downturn occurring, but he has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Michael is one of my favorite columnists. Every month, he writes a terrific business column which appears in each of the regional issues of Smart Business magazine, a national publication targeted to C-level executives in major markets across the country.

I respect Michael for all he has accomplished as an entrepreneur. In 1988, he co-founded OfficeMax and over the ensuing sixteen years grew it into a retail powerhouse with almost 1,000 stores worldwide, and with annual sales approximating $5 billion. In 2003, his "baby" was sold to Boise Cascade Corp. for almost $1.5 billion. He then launched another start-up, Max-Ventures, a retail/consumer products venture capital operating and consulting firm.

But, I respect Michael even more for the wisdom he communicates in each monthly column. Two tablespoons of sage business advice with a dollop of inspiration.

His latest column was entitled It’s Time to Start Working Smarter, Not Just Harder. Wow...did this column resonate with me.

Everywhere I go I hear people, in all manner of vocations, talking about how they are working so much harder. But, enterprises don't succeed on how hard people work. The best organizations prosper because they do the right things...and they do them quickly and efficiently. So Michael reminds readers of the new realities of business:
"Success will be measured by results achieved in days, weeks and months, rather than the traditional long-term, five-year plan for every major undertaking."

Michael encourages all executives, managers and even employees to embrace these new realities. Michael rejects "business as usual", and does so even more passionately than my plea on this subject last month.

Michael really does get it!

As I hope you have seen throughout this series, there is a growing group of guys who do get it. But, understanding the new reality is not limited to guys. In many ways I believe woman thought leaders are getting it every bit as quickly...if not more quickly. So the balance of this series will feature examples of woman who "get it!"

Whether you are a man or woman, the question is do you "get it?" Have you absorbed the changes in the business world and in our society and adjusted your thinking to align with the new realities?

Coming Next: I will be saluting best selling author and renowned life coach, Cheryl Richardson, in the next installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Mike Robbins Gets It!

2009-02-19T19:52:00.004-05:00

Mike Robbins definitely gets it! Mike is yet another example of an individual who understands that there is a very real economic downturn occurring, but he has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Mike Robbins is a rising star in the self-development world. Mike's first book, the Focus on the Good Stuff; The Power of Appreciation was a best seller.

Two years later, his second book is about to be published and it is so timely. Be Yourself, Everyone Else is Already Taken: Transform Your Life with the Power of Authenticity can now be preordered from Amazon.

Think about the examples of lack of authenticity we read about every day in conjunction with our financial system (Madoff et al), our sports (Alex Rodriquez et al), our political system (too many to list), etc. Think about what this kind of behaviour by "role models" is doing for future generations.

Now none of us can cure the world...but what we can be, as Ghandi said, the change we want to see in the world. And, therein lies the power of Mike's latest book. Just in time...an author, who is known for walking his talk, serves up guidance on how to lead an authentic life. Truly divine timing. Never has there been a time where there was a greater need for authentic role models, in every area of our lives.

Mike is a great example of someone who will prosper in these tough times. Mike is all about serving others...through his writing and speaking.

Prosperity is not just about the size of your bank account. Prosperity is about realizing the awesome blessings with which we all are bestowed.

In tough times, it is all to easy to be all about oneself. As counterintuitive as it may seem, I believe that prosperity will flow to those who serve others. Too altruistic? Well, what is a job? Is it just a paycheck, or is it an opportunity to be compensated for your service to others?

Mike Robbins gets it! Are you serving others to the best of your ability...or have you decided to prosper in isolation?

Coming Next: I will be saluting successful entrepreneur Michael Feuer in the next installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Ken Potalivo Gets It!

2009-02-18T12:09:00.002-05:00

Ken Potalivo definitely gets it! Ken is yet another example of an individual who understands that there is a very real economic downturn occurring, but he has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Ken Potalivo is a well known executive coach who runs Pro Growth Team, an organization that assembles and supports groups of talented professionals in their pursuit of growing their business.

I was introduced to Ken's work through Bob Tormey, one of the most talented financial executives that I know and a real champion of Ken's work. Since I counsel professional service firms and their partners (a closely related market to the one in which Ken operates, I always very carefully read Ken's blog posts.

His latest on the potential waste in all the networking going on really struck my hot button. In Beware of Networking, Ken alerts his readers that:
"In a challenging economy, it is easy to get caught up in the vortex of networking with the belief that more is better. In reality, it can end up costing you a great deal of time and energy and possibly your business if it is not properly directed."

Amen! I have vented before on the misuse of networking, especially in connection with job searches. I use the word 'vent" very intentionally as it breaks my heart to see networking so misused....by so many.

I am delighted that Ken is up on his soap box educating professionals that networking is at best a mean to an end, not the end all.

Following the herd is never my idea of the right path. Heck, the herd may just be headed to the slaughter house.

Going crazy networking will certainly have you traveling with the herd, if that is where you want to be.

Ken has it very right. Create a thoughtful plan for prospering in tough times and then decide exactly the role networking will play in helping you achieve your plan.

Sound wisdom from a very, very smart man!

Coming Next: I will be saluting one of my favorite author/speaker Mike Robbins in the next installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Mark Cuban Gets It!

2009-02-12T10:53:00.006-05:00

Mark Cuban definitely gets it! Mark is yet another example of an individual who understands that there is a very real economic downturn occurring, but he has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Mark Cuban is one of the most successful entrepreneurs of the last twenty years. He was the co-founder of MicroSolutions, a leading national systems integrator, which he later sold to CompuServe. Mark subsequently co-founded Broadcast.com, the leading provider of multimedia and streaming on the internet. That company was sold to Yahoo just four years later for five billion dollars worth of Yahoo stock! Two years later, Cuban co-founded HDNet, an all high-definition television network on DIRECTV.

In January of 2000, Mark purchased the Dallas Mavericks and quickly turned that NBA basketball team into a perennial championship contender. Mark holds the record for owner fines from the NBA for his proclivity to "tell it like it is." Love him or hate him, one has to respect all that Mark has accomplished in his business career.

Recently, Mark posted a great challenge on his blog, Blog Maverick. He calls his challenge the Mark Cuban Stimulus Plan Open Source Funding. He challenges entrepreneurs to post business plans that will stimulate other entrepreneurs, because of his belief that entrepreneurs will play a key role in leading the way out of this downturn.

Now besides offering to fund a plan(s) he really likes, Cuban is stimulating entrepreneurs with both his challenge and his very thoughtful list of business requirements. His requirements focus on creating a business model that is quickly cash flow positive. In a world where so many are looking for bailouts and handouts, I so love Mark Cuban's idea of getting people focused on self-help (my December post on self-rescue has turned out to be one of the most popular of the posts todate).

Just with his challenge, Mark Cuban is likely to stimulate a whole bunch of businesses created to prosper in these tough times. Brilliant. Just plain brilliant!

Mark Cuban definitely "gets it."

Coming Next: I will be saluting executive coach Ken Potalivo in the next installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Brad Swift Gets It!

2009-02-10T21:53:00.005-05:00

Brad Swift definitely gets it! Brad is yet another example of an individual who understands that there is a very real economic downturn occurring, but he has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Brad is the founder of the Life on Purpose Institute which does wonderful work helping people to find their passionate purpose. He is also the author of Life on Purpose: Six Passages to an Inspired Life.

Brad and some of the life coaches he has trained co-host a weekly radio show Living and Working on Purpose broadcast on Exceptional Wisdom Radio. And, Brad writes a thoughtful blog about Living a Life on Purpose.

Among the things I admire most about Brad Swift is that he is one of the pioneers at recognizing that there is opportunity for all kinds of social good to come from this downturn. As I do, he expects more people to question what their life is really all about because of the circumstances they are now experiencing. The rampant materialism that has driven much of our society in the last decade is likely (hopefully) to be offset, in part, by a greater focus on spirituality.

I love that Brad has stepped up his personal giving by increasing the ways that the fine work of the Institute is available at costs affordable to people at any income level.

Brad is a wonderful reminder that "prospering in tough times" is not just about money. Some of those who will proper most in this downturn will be people who understand that serving others is a path to prosperity.

Coming Next: I will be saluting entrepreneur extraordinaire Mark Cuban in the next installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Lennox McIntosh Gets It!

2009-02-07T19:27:00.003-05:00

Lennox McIntosh definitely gets it! Lennox is a wonderful example of an individual who understands that there is a very real economic downturn occurring, but he has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Lennox is the Guest Service Manager at the Marriott Courtyard in Aventura, FL. Largely because of Lennox, I make this hotel my choice when traveling to South Florida to work with one of my very favorite clients.

Even in the good times, Lennox worked diligently to make sure I understood that my business was appreciated. In these tough times, he has picked up his game and even does more to make sure that guests know their business is truly appreciated.

In my case, I am always greeted with a heart warming smile and Lennox's genuine, cheery welcome...one always using my name. Throughout my stay, Lennox is always looking out for me...always there to resolve anything that might be the least bit wrong.

Lennox understands that I, and every other guest, have a choice of hotels, especially in these tough times. He is being a smart businessman by making sure that I choose to keep on coming back to "his" hotel. And, he does so in a way that lifts the spirits of anyone coming in contact with him.

His consistently excellent performance is in sharp contrast to the two front desk employees I recently wrote about in connection with my recent stay at the Bellagio Hotel in Vegas.

(As much as I would miss him, Marriott should put Lennox in charge of training front desk managers nationally...he really is that good! )

Are you letting the times get you down? Or, like Lennox McIntosh, have you picked up your game and taken your personal performance to a higher level? A higher level that will not only help you to prosper, but also serve as an inspiration for others as to how to prosper in tough times.

The prosperity choice is yours...it really is!

Coming Next: I will be saluting life coach Brad Swift in the next installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Jim Brickman Gets It!

2009-02-06T10:49:00.005-05:00

Jim Brickman definitely gets it! Jim is a wonderful example of an individual who understands that there is a very real economic downturn occurring, but he has chosen to prosper nevertheless. And, prosper in the full dimensions of the word!

Thursday night, my wife and I went to see Jim in concert in Pittsfield, MA. Jim Brickman is a great song writer, a fabulous entertainer, and "America's Romantic Piano Sensation." He is rightfully proud of the fact that he writes songs of promise, hope and love.

We had seen Jim in concert, at the same venue, almost exactly two years earlier....at a time when the economy was humming. I estimate that the crowd Thursday night was off like 30% from his prior visit. Nevertheless...and this is the learning point...Jim gave every bit as much as he did on his prior visit.

Jim entertained us with a medley of his many hit songs, as well as material from his newest release, Ultimate Love Songs, The Very Best of Jim Brickman

Jim was accompanied by his long time friend, the very talented vocalist, Anne Cochran.

Besides being a talented musician, Jim is a very savvy businessman. Instead of folding up his tent in tough times, Jim is working harder than ever to grow his following of fans. He is touring from town to town putting on a terrific show and encouraging fans to join his community. And, he keeps writing songs of promise, hope and love...songs that are even more beneficial in these times.

Are you letting the times get you down? Or, like Jim Brickman, have you picked up your game and taken your personal performance to a higher level? A higher level that will not only help you to prosper, but also serve as an inspiration for others as to how to prosper in tough times.

The prosperity choice is yours...it really is!

Coming Next: I will be saluting hotelier Lennox McIntosh in the next installment of my series on examples of individuals, from all walks of life, who "get it." The series starts here.

Great Recesssion 2009

2009-02-05T15:59:00.004-05:00

Well, it is official. At least in my world (for what that is worth). We have, regrettably moved beyond a "mere" recession and are now entering the territory of "the Great Recession of 2009."

Now, I am not an economist. So my label may not sync with the labels economists want to use. But, I see lots of pain, and I foresee much more pain coming our way. We have yet to hit bottom and the recovery, as I predicted many months ago, will be long. Long as in "years!"

I am not yet ready to conclude that what we are seeing will equal the Great Depression. But, I do believe that before it is over, this downturn will be commonly viewed as the mother of all recessions. Hence, my label of "The Great Recession."

Problems abound. Notwithstanding the best of efforts by our new President, Washington is acting like business as usual. Bloating a stimulus bill with pork, as both the House and Senate did, is simply outrageous and demonstrates that many Washington politicians will put their own interests above the interests of the country. Where are our true patriots at a time we so badly need them?

And, what about my friends from the business world who are so clueless what with their slowness in stopping the personal pig-outs, even as they are laying off thousands of people. Where are our true business leaders at a time we so badly need them?

This country is faced with the toughest turnaround I have ever seen in my thirty plus years of working with major corporate turnarounds. And that is before the crash in commercial real estate values which is likely to be every bit as impactful as the decline in residential real estate values. Add in the ripple effect which is touching more and more industries and we have a real mess.

One could get depressed by all the malaise and by the lack of leadership. I choose not to do so. Like many Americans, I have chosen to run faster...to work harder...to create even more value for my consulting clients...to try to be of personal assistance to even more friends and family members.

I refuse to surrender to the circumstances!

I am not ignoring the circumstances. For my clients, and for myself, I am devising and implementing strategies to prosper in tough times.

I am hardly the only one doing so. Every day, I am seeing individuals...from all walks of life...who are smartly noting the changed circumstances and making the changes needed to prosper in tough times. And by prosper, I don't mean just prospering economically. These individuals are prospering in all dimensions of their lives by the choices they are making.

Washington will hopefully eventually realize that business as usual is a path to disaster. Business leaders will hopefully also realize that the time for business as usual is long gone. But, my hope today rests with the individuals who are doing their part to make our country strong again. By taking good care of themselves and spreading prosperity through their efforts with others.

In tribute to the spirit of such individuals, for the next week I will be paying tribute to some individuals, from all walks of life, whom I see as leading the way in recognizing the need for change and then getting on with leading the way. Individuals whom I admire for the choices they are making. Individuals who perhaps can inspire you to take your own performance to a higher level. Individuals who "get it."

Coming Next: I will be saluting musician Jim Brickman in the next installment of my series on examples of individuals, from all walks of life, who "get it."

Mass Media Induced Fear???

2009-02-01T18:41:00.002-05:00

In the past, I have written about my disdain for those who choose to paint the current downturn as primarily a phenomena of mass media. Today I received another email sales pitch with this headline "Are you buying into the fear being sold to the masses by the media about the economy...

There is no doubt that the media is frequently biased toward negative news. But, to suggest that the media is "selling fear of the economy" ignores the reality what all of us are seeing firsthand, almost every day...layoffs of our friends, relatives, and neighbors. That is not a media created fantasy. These job loses are real! Just ask anyone who has lost their job.

This economy is in terrible shape and getting worse. That is reality.

But the fact that the general economy is doing poorly does not mean that you have to do poorly. The basis of this blog is that:
Opportunities abound for those who understand the dynamics of the downturn and take advantage of the opportunities created by the downturn.

Divorcing yourself from information on what is happening is not the way to prosper. Understand what is happening and exploit the changes that are occurring.

The next time someone tries to sell you something by suggesting that this mess is just a product of the media...hold on to your wallet! The storyline may have a certain appeal, but I suggest...respectfully...that you do business with those whose opinions you can trust. And, describing the economic mess as merely a product of the media is not something you should trust.

Husband Lazy ???

2009-01-31T14:21:00.002-05:00

One of the ways that I guage what is going on in our society is to periodically review what terms are being searched for most often on Google. What people tell you is on their mind is one thing. But, what they search on tells yet another story...and frequently the truer story.

Recently, my attention was drawn to the headline of this post by one of my Google reviews of most frequently searched terms. No sooner than having been made aware of this notion, I began hearing - first hand - the stories that go something like this:
Husband (or significant other) gets laid off...husband goes into a funk...and husband just lazes around.

Meanwhile the wife is holding down a full time job and is still doing the vast majority of the household chores.

Sound familiar? I hope not!

I feel for the woman who are going through this kind of situation. They are really dammed if they do , dammed if they don't. If they try to nudge the husband, they are likely to get a fair amount of resentment. (The male specie, by and large, is not keen on receiving guidance.) And, if they do nothing, they are unlikely to get much change from the husband.

Best advice I can offer is that women in this position get help on how to deal with the situation...from a professional (coach, therapist, etc.) if possible, but if not possible, then from a thoughtful friend. What I know is that a person can't let the situation add to the load already being carried. Remember, Cheryl Richardson's thoughtful guidance that in these challenging times it is more important than ever that extreme self care be our priority.

Best advice I can offer any husband in this situation is get over your layoff. If you can't do so quickly without counseling, then get counseling! In this economy, many a good person is getting laid off. The measure of a person is not whether they are getting laid off but what they are doing about getting re-employed. And, what they are doing - in the interim - to carry their fair share of the burden of operating a household.

I am a huge believer in the notion that life was meant to be shared. Shared so as to make the good times more enjoyable. And, shared so as to make the challenging times more doable.

If you are in a relationship, are you carrying your fair share of the load?

Supply and Demand Changes Present Recession Opportunties

2009-01-30T06:29:00.003-05:00

Everywhere I turn, I see opportunities for companies and individuals to take advantage of market changes due to changes in supply and demand relationships in a given market segment.
Savvy companies and savvy individuals will understand these new market dynamics and figure out how to make them work to their advantage.
Let me share a couple of examples.

I am seeing some companies recognizing that formerly short supply labor is now so plentiful that they can upgrade their employees...at every level. Companies doing so have great opportunities for improved productivity, as well as improved customer service.

But for every company I see lifting their expectations of their employees, I am seeing even more companies frozen like a deer in headlights. These companies seem more focused on making cuts in employee levels than they do in getting dramatically more from their employees.

Or, take the change in supply and demand in the commercial real estate market. I am seeing some companies getting quite aggressive at demanding renegotiation of their leases with commercial property owners to reflect new supply and demand relationships.

But for every company I see being aggressive at lease renegotiations, I am seeing so many other lessees treating their leases as sacrosanct.

A similar pattern is playing out with individuals.

Some individuals are stepping up their performance dramatically to save their job or, even better yet, to set themselves up for job advancement. While others remain seemingly oblivious to changed conditions (as with the Bellagio Hotel example that I wrote about in a recent post).

Those living in the past...and those focused on new realities. Those frozen in worry...and those choosing to prosper by taking advantage of changed circumstances.

Change represents such great opportunities for the astute, especially those who are also agile.

The Power of Less

2009-01-27T23:25:00.005-05:00

In these tumultuous times, it is often tempting to try to work faster in order to get more done.
As counterintuitive as it may seem, the answer for many people may be to do less, in order to create greater results.
First time author Leo Babauta has written a terrific new book, The Power of Less.

Babauta makes a very compelling case for limiting oneself to the truly essential in business and in life.

This is one of the finest books on the subject of time management to be written in the last decade. It really is that good!

In these tumultuous times, simplifying our lives can be important part of the road to prosperity.

Bellagio Hotel Misses the Opportunity

2009-01-25T12:17:00.003-05:00

I just attended the Distressed Investment Conference held at the Bellagio Hotel in Las Vegas. The Conference was important to my continuing efforts to understand the distressed market for my consulting clients and for my other blog, Restructuring 2.0.

Everywhere I go, I see examples of companies and individuals getting the message about the opportunities in a downturn, as well as of companies and individuals not getting the message. I saw both at the Bellagio. My experience is illustrative of the opportunities that are being squandered because of some not getting it.

When I made my reservation to stay at the Bellagio, host hotel for the conference, they were offering on the net a special of "stay two nights and get the third night free." I decided to take advantage of the opportunity.

Upon checking in, my hospitable clerk confirmed that the third night would be free and would be taken care of at checkout. He then nicely offered me an upgrade, at a very attractive price I might add. I decided to take advantage of that offer.

Note...I am starting to feel really good about the Bellagio. Both on a personal level for the amazing deals I am getting, but also at a consulting level that "they get it about the downturn being an opportunity to take market share away from competitors."

Over the ensuing three days, I repeatedly observed very hospitable and attentive service. My admiration for the Bellagio kept growing.

Saturday morning, I had an early flight back east. So I checked out early. I was pleased to see no line. The front desk clerk was quiet but professional. She printed out my bill and handed it to me. But, I noted that they had charged me for the third night, which was supposed to be free.

I called the mistake to the clerk's attention and she said she would print out a new bill. But, interestingly she offerred no apology for the billing mistake.

When she handed me the corrected final bill, I told her that I was disappointed that I had to be the one telling them what our arrangements were. Her response was something to the effect that "that is the way our system is." The consultant in me couldn't resist suggesting nicely to her that she pass on to management my view that such is not right. Her facial look made very clear that she wouldn't be passing on anything and that she would prefer I just leave (there was no one else waiting to be served).

I decided I would make my suggestion directly to management. I asked to speak to a manager. The manager came around to meet me face to face (rather than speaking to me from behind the desk). Smart.

It quickly became apparent that the manager didn't see any problem. After all, I had gotten the right final bill. She informed me that the clerk had missed the notation on the screen when processing my checkout. Now, I make plenty of mistakes...so I can appreciate the clerk missing. Of course, the clerk never owned up to missing anything, instead deciding to "trash" her employer ("that is the way our sytem is").

The manager's facial expression and comments quickly told me that she didn't see any problems...not in customer's having to remind the hotel of the free night or in an employee blaming the company rather than owning up to her oversight. She said she would speak to the employee but did so in a way that seemed more designed to just want to get me out the door.

I am much more forgiving of the frailties of front line personnel. I expected much better from a manager at the Bellagio.

So here is the moral to this story:
The Bellagio loses an opportunity to dazzle me due to two employees who apparently view customers as the problem.

Heck...no big deal. I am just a single customer.

Or, am I one of a number of Bellagio customers being served up for Steve Wynn's new hotel (as most readers know, Mr Wynn formerly owned the Bellagio and built the gorgeous Wynn a couple of blocks down the Strip).

Heck, in these days, a single disatisfied customer can tell friends...or post their story to a blog.

If you are a business owner or manager, are your efforts to adjust to the changed markets being sabotaged by some employees who don't understand that the only thing standing between them and being unemployed is a customer or two?

If you are an employee, are you sabotaging the efforts of your colleagues and your employer with your "I can't be bothered" attitude.

This downturn presents such great opportuntites for those who understand the new market realities. I have long believed that the customer is king (or queen). In this economic environment, every customer needs to be treated like a king!

Are You a Dinosaur?

2009-01-23T13:18:00.004-05:00

Everywhere I turn, I am seeing dinosaurs. Good people, but people who see the world as it has been, and act in ways more consistent with times long gone.

I see business owners who are seeing things through the prism of their past experience, rather than drawing on their experience to fashion winning strategies for what is before them.

I see business executives who are doing likewise.

And, I see workers who are doing likewise.

Dinosaurs became extinct because they did not adopt to a changing environment they faced. People who do not quickly adapt to our changed environment face a fate almost as bad as extinction.

Let me be clear:
I am subject to the same risk of becoming a dinosaur as you are.

Like you, the lens through which I see the world is potentially clouded by years of experience.

But, I am determined to prosper in these times. I am committed to opening my eyes and mind to new realities. Each and every day, I am gathering new data points as to what is transpiring in the business world, in our society, etc. And, I am working more diligently than ever to process the data points.

You see, I have made a commitment to not become a dinosaur. What about you?

Investor Fraud Cases Just Keep Getting Discovered

2009-01-22T20:10:00.002-05:00

Today's news that the SEC has filed fraud charges against Florida hedge fund manager Arthur Nadel is just the latest of fund frauds to be unveiled. Similar frauds have been unveiled in Pennsylvania, Indiana, and Texas in recent weeks.

The latest reported frauds are small compared to the Madoff fraud, but no less troublesome.

Regretfully, I am expecting many more of these frauds to be uncovered over the next six months. It is now clear that the underbelly of society was very active at taking advantage of the stock market euphoria that went on in recent years. Most of these type frauds should become self evident within like six months as investors seek to draw down investments due to their needs, and/or become more suspicious based on the publicity around these frauds.

But, here is what is really scary. These frauds were being perpetrated at a time when the economy supported legitimate business activity.

I am convinced that the dysfunctional economy will create a whole new wave of frauds.

Well intentioned, relatively honest people will find themselves with their backs to the wall...and some of these, will unfortunately choose the fraud route.

Just another of the sad societal effects of the economic meltdown.

New Hope

2009-01-20T09:50:00.003-05:00

Today's inauguration of Barack Obama is uplifting the spirits of America, as can easily be seen by the record crowds braving the cold in Washington, DC and people everywhere glued to their TV sets to watch the happenings in our nation's capital. And, that is a great thing for our country needs a healthy dose of cheer after so many months of sour economic news.

The challenges before our new President are immense and he will need the help of all Americans to restore this country to its full greatness. As well said today by the lead editorial in USA Today;
"Obama takes oath amid great pride, promise, problems"

I am encouraged that, at every turn, the President is communicating that the turnaround will not be quick, and will not be easy. The sooner everyone absorbs this message, the sooner recovery will begin to start to take hold. The sooner people assume personal responsibility for their prosperity, the sooner our country will prosper.

This is a wonderful day to feel a new sense of hope. But, let no one forget that hope without action is not a cure.

What will you be doing differently, tomorrow, when the images of the inaugural splendor start to disappear in the rear view mirror?

Benefits of Recession

2009-01-17T23:19:00.002-05:00

One of the many things for which I am perpetually grateful is the wonderful mentors that surround me. The wisdom of my mentors keeps my own thinking on track, no matter what else is going on around me.

Yesterday was a double treat in that I spent time with two of my mentors. In the afternoon, I had the pleasure of meeting with Mark DiSalvo, CEO of Semaphore and one of the smartest entrepreneurs that I know. (Sempahore is a Boston based consulting firm that advises clients on value creation in distressed VC funds and in portfolio companies.)

Friday evening, I was with another of my mentors: the fabulous Cheryl Richardson. Cheryl spoke at the launch event for her new book, The Art of Extreme Self Care. I love her new book as explained in an earlier post.

I was struck by the fact that both Mark and Cheryl articulated their hope (and expectation) that the current economic malaise is likely to produce societal changes that will be among the benefits of the recession. I am seeing the early signs of the same thing.

As just one of a number of examples which I could site, it appears that families are going to be forced to pull together to deal with the hardships emanating from the economic woes. That is a good thing!

Now, I am not a blind optimist! I am expecting divorce rates to climb as partners forced to start their wealth building anew will decide that they want to start with a new partner. That will be tearing some families apart. But, at the same time, I expect that more and more people will realize that the best cure for their woes is to not expect a Washington personal bailout, but instead to take personal responsibility for making good things happen. As they take such responsibility, I fully expect them to look to their family structure for all manner of support.

Let me be very clear. Long term societal benefits don't pay one's mortgage, or put food on the table. I got it! My point is solely that I expect a lot of good to come out of the recession. Your challenge...and mine...is to adjust our sails to take advantage of the winds of changes that are unfolding so as to prosper in the tough times immediately before us.

Business As Usual in this Recession?

2009-01-15T19:26:00.005-05:00

I certainly hope that there are not many managers or business owners thinking "business as usual." In my regular forays into the market to assess changing conditions so I can better advise my clients on strategies, I see all manner of companies reacting to the downturn. That is the good news.

The bad news is that most are scaling back business as usual...but still doing business as usual.

The winners in this extended downturn will be those companies that completely rethink their business. Completely!!
Take the retail industry as one example (I have written about this industry in an earlier post on the impact of the recession on retailing). Retailers are scrambling to cut, cut, cut. But, what I am not seeing as much of is the complete rethinking of business models. Store locations, store size, store inventory levels and a host of other strategic issues need to be rethought. And quickly! Then there needs to be detailed planning as to how one transitions from today's model to the model of tomorrow. Quickly!
Business as usual, scaled back, is not what the winners will be doing.
Not at the business level or at the individual level.

Is your business or your employer changing to reflect the changing times that show every sign of being with us for an extended period? If not, what are you doing to get the powers-to-be to see the light?

These are truly times of wonderful opportunity for those with the vision to see things as they need to be in a changed world, the courage and skill to get constituencies to the right place, and the determination to make change happen. Quickly! But, thoughtfully!!

Building a Network BEFORE You Need One

2009-01-14T22:41:00.001-05:00

I haven't done a survey on the subject (or read one done by anyone else), but my experience is that the vast majority of people pay little heed to their network until they need one.

Like I expect you are, I am getting an increased number of contacts from people I worked with years ago and haven't heard from since then. Now because I believe that those of who are employed need to try to do what we can to help those who are not, I respond to these contacts. But expecting people who you haven't talked to in 20+ years to do wonders for you is far from an ideal situation.

Having an effective network is like having money in a bank. You need to put "currency" in your network bank in the good times so that you have "currency" to withdraw in the tough times. The currency of networking is the good deeds you have done for others.

One of my mentors, the wonderful Zig Ziglar, taught me many years ago that:
You can get whatever you want in life, if you will help enough others get what they want.

Want to have support if you lose your job, or your business fails, then make your deposits starting TODAY! Give and you will be in a position to get.

It is never too late to start saving, and it is never too late to start giving.

In the last week, what have you done for contacts outside your immediate family to help them deal with these tough times?

Effective Networking Techniques

2009-01-12T13:54:00.006-05:00

You can see light bulbs going off all across the country. People are waking up to the fact that they need to have an effective network to prosper in these tough times.

Unfortunately, so many people are clueless as to effective networking. It is one of those important life skills that, regretfully, are not taught in school or college.

Fortunately,
effective networking is a skill and, as such, can be taught.

(I have been teaching this skill to high-end professionals for some time).

Rather than pontificate about my own beliefs about effective networking let me recommend three of the best books I have ever read on the subject. All three are first rate. Before you invest another hour on networking, I strongly recommend that you read one of these three books. The two hour investment in reading through any one of the books will pay huge dividends.

My very favorite book on networking is Click, Ten Truths for Building Extraordinary Relationships by George Fraser. George does a great job of explaining the philosophy of "giving" that is the foundation for success in networking.

A close second is The 29% Solution, 52 Weekly Networking Success Strategies by Ivan Misner. This book is solid on the philosophy and very strong on the action steps needed to build a powerful network.

I hate to rank one of the three as "only" my third favorite as Jeffrey Gitomer's Little Black Book of Connections is well done, as are all of Jeff's books. (I think his best ever is his latest, Jeffrey Gitomer's Little Teal Book of Trust.)

No matter how badly you believe that you need to get networking immediately, please take the time to read one of these three books before you go off building a network like an amateur. Better yet, don't just read one of the books, implement the strategies! Become a master networker!! And, not just until you get a job. Power networking is all about being a giver, and that is something you can be with or without a job.

Many, many years ago, one of my mentors, Zig Ziglar, drilled into my mind "you can get whatever you want in life if you will help enough others get what they want."
Commit, today, to live this philosophy for the rest of your life and you will prosper, no matter how difficult the times.

Coming Next: Building a Network Before You Need One, the third in this three part series on networking.

Networking for Jobs

2009-01-10T09:24:00.002-05:00

I expect that everyone reading this blog has noticed an increase in the networking efforts of current friends. This most often manifests through requests for connecting on Facebook or LinkedIn. And, it is not just current friends requesting to link; I am hearing from friends that I have been out-of-touch with for more than twenty five years (that is nice benefit of this malaise).

The reason for the sudden interest in networking is obvious. Networking has long been championed as one of the best ways, if not the best way, to find a new job.

The question is whether traditional networking will work equally effectively in this downturn.

I think not. But, what do I know in a world where so many of the traditional rules are changing so quickly.

Networking made lots of sense to me when there are jobs available and the person looking for a job networked to find the proverbial "needle in the haystack." But, today, jobs are so scarce that networking to find a job is not likely to be as effective as in other times.

If I was without a job, I would network effectively, but I would couple that with an aggressive effort to convince an owner or manager that I could do a given job better than the incumbent. Ouch. Not the nicest of thoughts, in some ways. But, hasn't almost every job most of ever gotten been a matter of convincing someone we would to do a better job than the incumbent.

It is in targeting taking a job away that networking can be very powerful method of succeeding with this approach. Friends are generally willing to help when we ask them for something very specific. Merely asking friends to let you know if they see anything for you underutilizes your network.

Ultimately, the willingness of your network to help you...whether to find a job or to help you in some way to unseat an incumbent...is a function of the quality of your network.

I see so many people thinking that the name of the game is to build the biggest Rolodex, or the greatest number of contacts on LinkedIn. The secret of the best networkers has long been quality over quantity.

Coming Next: Building an Effective Network, the second in this three part series on networking.

Blame for the Recesssion

2009-01-09T22:01:00.002-05:00

We live in a society that loves to blame others for our own ills. Can you believe that one of the most popular searches on Google is "blame for the recession."

Given the magnitude of the economic meltdown, there is plenty of blame to go around.

It is fashionable to blame "greedy wall streeters." But, greedy wall streeters could not have pulled this off were the rest of society not acting equally greedy.

Much of society was looking to be quick millionaires by leveraging up and hoping that asset values would rise quicker than debt costs. As a result, many were susceptible to all manner of scams, from outright frauds like Madoff to less benign investment schemes.

And, Washington politicians and bureaucrats did little if anything to stop us from our excesses. On either side of the aisle!

The better Google search might be "who doesn't share some of the blame for this economic meltdown."
But, what I can't figure out is why assigning blame is really important.

If you are fortunate enough to have a job, seems to make more sense to focus on saving your job.

If you have lost your job, seems to make the most sense to focus on finding a job.

How we got here is somewhat important so as to learn from the past. But, more important is for each person to quickly get on with self-rescue. Quickly!

Regular readers of this blog know that I believe that the sooner one embraces the recession, the sooner one will be on the road to prosperity.

Recession vs Depression

2009-01-06T00:17:00.001-05:00

With the announcement each day of the latest bad news about the economy, it is only natural that many are beginning to wonder whether we are entering a depression.

I am not sure it makes a big difference what the economists want to call it. I get absolutely no comfort that some would emphatically suggest that we are not in a depression and that it is "only" a recession.

I am reminded of that very old sick "joke" about the difference between a recession and a depression. A recession is when your neighbor can't find a job. A depression is when you can't find a job.

As I travel the country serving my consulting clients, I am seeing a level of pain that I have not seen in my lifetime. And, my analysis of market factors for my clients has me convinced that this downturn will be long and deep, a belief I have stated here often since the inception of this blog last year.

Even the Fed, which is cautious about exacerbating the problem through negative talk, is now publicly reporting they expect this downturn to be a multi-year event.

Call it what you want. My bottom line is that I believe strongly that the sooner one repositions oneself to prosper in the downturn, the sooner one will experience prosperity.

Let the pundits debate whether it is a recession or a depression. Put your energy into crafting and then executing a plan for prospering in tough times.

Heck, it will be easy enough to go back to your good times plan when the good times eventually come.

Not Partcipating in the Recession

2009-01-05T23:25:00.002-05:00

Regular readers of this blog, who don't otherwise know me, have likely concluded that I am someone with a very positive attitude. And as you might expect, one of the keys to such an attitude is too surround oneself with other can-do types.

As a result of the quality and nature of the people who are closest to me, I am frequently hearing the mantra that I am "not participating in the recession."

I love when I hear a friend, or for that matter anyone, express this attitude. But, I have grown leery about how some who express this view will do in the length and deep downturn I am on record as expecting.

I have come to recognize two types who are expressing this mantra. One type is espousing the mantra but doing little to adjust to meet changing circumstances. The other type has this correct attitude AND a solid action plan for adjusting to the changing times.

Reminds me of the Law of Attraction division. There are those that put their full faith in the concept, but expend little effort to make things happen. Then, there are those that have the faith and the right actions. For the latter types, the Law of Attraction does provide results.
Merely saying you are not participating in the recession is unlikely to lead to prosperity. Coupling that attitude with the right changes will lead to prosperity.
So, what about you? Are you participating in the recession? Or, have you decided to not participate? And if you have decided not to participate, do you have the action plan and requisite commitment to make the changes necessary to prosper in these tough times?

I am hoping that each of my friends are in the latter category. As I hope that you are!

Protect Job in Bad Times

2009-01-04T21:57:00.002-05:00

With every new announcement of layoffs, it becomes ever more important that if you have a job, you should protect yourself...best that you can...from losing your job.

One of the most popular of my blog posts was a post on 5 Tips for Saving Your Job, published back in October of last year. Recently, I came across an excellent book on the subject by executive recruiter Stephen Viscusi. Bulletproof Your Job can make the difference between having a job and being a part of the tragic rising unemployment statistics.

I expect that some employers will be reading this thoughtful book with the thought of using it as a template for the higher expectations they can have of employees in this labor market. Which means this is book is a must read for anyone with a job.

What is fascinating to me is to think of the higher productivity that could be achieved in this country if Viscusi's recommendations became the norm for the behavior of employees.

Achievement Journal Power

2009-01-03T22:57:00.003-05:00

Millions of people around the world are believers in the power of journaling. So too am I. And in 2009, I will be using the power of journaling as just one of many tools to assure that the year is a great one for me.

Now, as you may know, there are many forms of journaling. I learned a lot, over the last year, about the various forms of journaling from Kay Adam's Journaling for a Better Life weekly radio show on Exceptional Wisdom Radio . Kay is the founder of the Center for Journal Therapy and widely regarded as one of the world's leading experts on the power of journaling.

Blogging is a form of public journaling. And, in 2009, writing this blog 4-5 times per week will be as helpful for me, as I hope it will be for readers of the blog.

I am also using an "achievement journal" for the first time in 2009. I was introduced to this concept by the writings of the fantastic Judi Moreo. Judi created the first achievement journal I ever saw as a companion to her book You Are More Than Enough. Her achievement journal is a beautiful tool.

I will be using my own unique achievement journal as a way to record my successes throughout 2009. Besides giving me the positive reinforcement of a sense of progress, it will also be a powerful motivator to get big things done on a regular basis. I am just not the kind of person that wants to have a week go by without a listing or two, or three, in my achievement journal.

If you haven't yet learned about how journaling can help you, especially in challenging times, I highly recommend that you learn more about journaling. Kay Adam's radio show will quickly convince you of some of the many benefits of journaling.

Best Day of My Life?

2009-01-01T19:00:00.002-05:00

Well, certainly this will be the best day of the new year. Geez, it is the only day of the new year.

But, best day of my life? Wow, that is one tough standard. OK, so let us relax the standard just a tad. Has this been one of the best days of your life?

If 2009 is going to the best year of our life,
then we need to have a lot of days that are
among the very best days of our life.

As I write this in the early evening of the first, I have to say that this day has been delightful and I have done some important thinsg to help others, but hardly a day that ranks as one of the best days of my life.

Fast forward, multiply the kind of day you had today by 365. In my case, based on what I have done so far today, the resulting multiplication leaves me far short of having one of the best years of my life. Ouch!

So, I face the kind of choice that all of us face when we set a goal and quickly fall off track. I can give up...or I can resolve to quickly get back on track.

That is an easy choice for me. What about for you?

I am getting back on track...right now. I am off to write some LinkedIn recommendations that will start the new year off right for people who are important to me.

What is something that you could do, yet today, that would make this a productive day for you?

You can "save" the day. It is within your power, as it is for me, to make it a good day, even if not quite one of the best days of my life.

A defining moment in our life...one that happens almost every day...is what we do when our day is not shaping up to be one of the best days of our life.

We can resign ourselves to be less than our best, or we can quickly get back on track.

Best wishes that you make your day one of the best in your life and your year one of the very best in your life.

PS Want to make 2009 one of the best years of your life? Then read the six part series, Countdown to New Years, that concluded yesterday. The series starts here.

Step-by-Step to the Best Year of Your Life

2008-12-31T14:50:00.005-05:00

Yesterday, I wrote about the importance of making every day a great day in order to make 2009 the best year in your life. Today, I want to close out the year, by sharing with you one of the things that contributed to making 2008 such a great year for me, and my family.

About mid-year, I was introduced to the music of Michael W. Smith. Quickly his music became a favorite of mine. And, one song in particular became almost like a theme song for me.

That magical (for me) song is Step-by-Step from Smith's Worship Again album.

To say I have listened to this song frequently is an understatement (ITunes actually calculates the number :) ).

The song has become a powerful reminder to me that great things in life, in any field of endeavor, are accomplished step-by step.

We live in an instant gratification world. We are continually bombarded with messages that there is an easy way to get anything we want. We have seemingly become a world looking for "magic pills."

Smith's song is my antidote to that bombardment. His song is a constant reminder that progress comes from consistently taking a series of steps. Step-by-step.

I don't believe that there is any magic pill, or simple solution, to prospering in '09. I will be following my plan for achieving my SMART Goals, step-by-step.

I am prepared that there will be potholes that I will hit. And, when I do, I will do my best to quickly straighten myself so as to conitnue down the road. Step-by-step.

As I close out my posts for 2008, I want to express my deep appreciation for those whose support make this blog and all my other activities possible. If I started listing all those whose support I enjoyed in 2008, I would miss my planned New Year's eve celebration with my wife and Scotty. I am blessed with such wonderful support, from my loving family, from my two coaches and many mentors, from my protege's and friends who so energize me, from my clients who stretch my thinking, and from the Divine Spirit that guides me.

Best wishes for a healthy and prosperous 2009!

This was the sixth and final post in the series Countdown to New Years. The six part series started here.

PS, If you have a friend or loved one that could benefit from this blog, please share it with them. Together, we can make a difference in the lives of others...the foundation of true prosperity.

Prospering in a Recession

2008-12-31T13:58:00.002-05:00

I am encouraged! More and more people are doing Google searches on how to prosper in a bad economy. I am encouraged because that means a growing number of people are deciding that they want to make the changes so as to prosper in these tough times. And, that is a very good thing.

The purpose of this blog is to be a resource for your learning specific ways to prosper in this bad economy. The wisdom I share comes from leading authors, consultants, economists, and life philosophers, as well as from personal observations from my consulting work with leading professional service firms.

I am hardly a guru on these times. These "whitewater times," as I like to call them, are unlike anything I have experienced before. Like most readers, I am trying everyday to understand the new rules that are being written in business, politics, and every other dimension of our lives.

What you will take away from this blog will depend on your current situation. Those who have recently lost jobs, may want to read my tips in Finding a Job in a Recession. And, those who have been searching for a while without success, will want to consider my recent post Can't Find a Job.

Those who have a job will want to make they keep the job they have, and my post Saving Your Job has tips for helping you do so.

Business owners and executives will find me writing often on ideas for improving your business. My recent post on Increasing Market Share in a Recession has been one of my more business popular posts. From time to time, I write about ideas about specific industries and their challenges. This series can be accessed here.

Many of my posts are designed to help everyone regardless of your perspective. Many found helpful my series on Why the Downturn Will (Regretfully) Be Deeper and Longer than Commonly Expected. That sobering series was hopefully balanced by my thoughts on the Abundant Opportunities in this Recession.

But, this blog is about much more than my own views. One of the most popular series has been Lessons from the Masters featuring the wisdom of Wayne Dyer, Cheryl Richardson, Seth Godin, Cal Ripkin, Jr. and many more. And, of course, your comments are always welcome. Readers of this blog regularly add very thoughtful commentary.

So as the year draws to a close, I want to pledge that throughout '09 I will be trying to make this blog a gracious oasis from the tough times. Each week, I hope to present a balanced mix of "hard" information and "soft" encouragement - all designed to help you find your own path for prospering in these tough times.

Wishing you all the best in '09 and hoping that you will make '09 the best year of your life.

365 Ways to Make 2009 the Best Year of Your Life

2008-12-30T09:43:00.005-05:00

Hopefully, my last post has you thinking about making 2009 the best year of your life, notwithstanding dire economic predictions that abound. And regular readers of this blog know of my strong belief that to do so, you will need to have (1) SMART goals, and (2) the right support team.

I have long been big on SMART goals and the right support team. But, because I expect 2009 to be a challenging year, I have been determined to add a tool or two to increase the likelihood that 2009 will truly be the best year of my life.

I have a lot that I want to get accomplished in 2009...in my businesses, in my personal life, and with the launch of my program telling about the story of Scotty and his amazing wisdom. I need to bring my "A game" if I am to score well in 2009.

Recently I read a fine article in Success magazine on how North Carolina basketball coach Roy Williams motivate his team. One particular quote from Coach Williams really got me thinking:

"If each of us works every day to be the best we can be on that day and then come back and do the same tomorrow, then we have a better chance of being our very best at year's end."

Hardly profound, at first reading. But, definitely profound when I reflected and was reminded that the total progress we accomplish in anything is the sum of the steps we take toward a goal.

The quality of your 2009 year will be a direct function of the quality of your months, your weeks and ultimately of the days.

Of course, I have long known this. But, I have to admit that in the past I gave up on too many days. Somewhere along the line as the day unfolded, I would give up on it being one of the best days of my life. I started every day with the right attitude...but I did not maintain that attitude throughout the day, even in the face of unexpected obstacles.

Hall of Fame hitters make every at-bat count. I have decided to make every day count. Every day. Every single day. No matter what obstacles I encounter.

And, because I believe that if one is serious about any change, one starts immediately, I adopted this attitude immediately upon reading and reflecting on the William's wisdom. I am comitted to shaping every day into one of the very best days of my life.

What about you? Do you let days slip by? Weeks slip by?

The environment, likely in 2009, leaves precious little room for any of us to do less than our best every single day.

Coming Tomorrow: Step-by-Step to the Best Year of Your Life, the sixth and final post in the series Countdown to New Years. The six part series starts here.

Best Year of Your Life in 2009?

2008-12-29T18:01:00.003-05:00

Traditionally, many people resolve each year, at this time, to make the next year "the best year of my life." In view of all of the misfortunes that played out in '08, it would ordinarily be easy for many to reasonably expect that '09 would be much better. But, we go into '09 with a consensus economic view that is as pessimistic as any we have had in the last twenty years, if not since the Depression. So, is it really realistic to hope for "the best year of my life?"

Well, if you measure your life strictly in economic terms, then such a resolution is likely to bring disappointment. However, the notion of prosperity reflected in this blog goes far beyond mere economics.

Ben Stein, the well read columnist of the NYTimes concluded one of his most recent columns with this sage advice:

"We are more than our investments. We are more than the year-to-year changes in our net worth. We are what we do for charity. We are how we treat our family and friends. We are how we treat our dogs and cats. We are what we do for our nation and our community. If you had $100 million or $100,000 a year ago and now you have a lot less, you are still the same person. You are not a balance sheet, at least not one denominated in money, as was explained to me recently."

If you are more than a financial balance sheet, then 2009 can be the best year in our life, at least for most of us. We have the opportunity to:

1) Be in the best physical and mental condition of our life, or certainly of recent years.
2) Have the best relationships ever with our loved ones.
3) Treat everyone with more respect and compassion than we ever have.
4) Do more for our community than ever.
5) Serve our employer or clients better than ever, if we have a job or clients, and if we don't to make the best pursuit we ever have.
6) Etc. Etc.

Yes, if indeed you are more than a balance sheet, 2009 can truly be the best year of your life.

And, I know that if you go into the year thinking anything less, it is highly likely that you will be right.

I am absolutely determined to make 2009 "the best year of my life." I hope you will make a similiar choice.

Tomorrow, I will share with you one of the secrets I recently learned from North Carolina basketball coach Roy Williams about how to create a best year of our life.

Coming Tomorrow: 365 Ways to Make 2009 the Best Year of Your Life, the fifth post in the series Countdown to New Years. The six part series starts here.

Support for New Year's Resolutions

2008-12-28T09:18:00.006-05:00

As important as having the SMART goals (or resolutions) discussed in the previous post is having the right support team to help you stay on the path to accomplish your goals.

In my experience, few people are able to accomplish a really big goal all by themselves.
Life has a way of dealing all of us unexpected setbacks. With the right support team, one can get the guidance and encouragement to quickly get back on the right path.

There are a five different forms of available support:

Coach or therapist
Mentor
Partner
Mastermind Group
Support group focused on the specific area of the goal (e.g., AA for those looking to stop drinking).

Of course, your family can play an important support role. However, I don't often see change happening successfully when the family is the only support force.

Personally, I am a big believer in surrounding myself with the right support. I benefit tremendously from having two coaches, being in two Mastermind Groups, and participating in four different business support groups. And, I have a cadre of mentors, protege's and partners that keep me continually focused on making the changes important to my well being, in all aspects of my life.

Do you have the right support structure in place to help you make your New Year's resolutions come true? If you are expecting better results in '09 than you accomplished in '08, do you have a better support team in place?

Coming Tomorrow: Making 2009 the Best Year of Your Life, the fourth post in the series Countdown to New Years. The six part series starts here.

Success with New Year's Resolutions

2008-12-27T20:12:00.005-05:00

A New Year's resolution, in its most simple form, is a goal.

I have been helping businesses and individuals to achieve their goals for more than 25 years. I have witnesses some spectacular successes, both on a business and individual basis. And, regretfully, I have witnessed even more failures. Through these successes and these failures I have come to believe...and strongly believe, at that...success with any goal comes from having (1) SMART goals, and (2) the right support system. In this post, I will comment on the former, and tomorrow I will comment on the latter.

Many years ago, someone...I wish I could remember who...introduced me to the concept of SMART goals. SMART is an acronym for what goals must be to be successfully implementable.

Now, all kinds of consultants and coaches have tweaked what each of the five letters stand for. But, fundamentally the concept is that goals must have certain characteristics in order for there to be a high liklihood of succesful implementation.

I can't point to a definitive study that proves that by having the following five attributes a goal is more likely to be successfully implemented. But, my twenty five years of working with individuals and businesses on implementing their goals suggest that the following are a solid foundation:

S stands for specific. You will increase your likelihood of success with a goal, or a New Year's resolution, when it is specific. "I want to lose weight" is a generality. "I want to lose twenty pounds" is much more specific.

M stands for measurable. "I want to lose twenty pounds" is both specific and measurable. By making a goal measurable, you facilitate monitoring of progress. Without being measurable, how can you monitor progress and ultimate success?

A stands for action. The key to attaining any goal is action. So a well stated goal should include, or be supported by, the specific actions that will be taken to achieve the goal. So a better goal statement would be "I want to lose twenty pounds by exercising 30 minutes per day, every other day, and eliminating all manufactured snacks." Note how the inclusion of actions makes the goal come alive.

R stands for realistic. We are an incredible machine. And, when we ask our mind to do things that it believes are not possible, our systems will not support pursuit of the goal. Goals must be realistic...for you. They can be "stretch" goals, but they must be grounded in reality.

T stands for time-phased. In order for progress to be monitored, there must be specificity with regard to the date by which the goal must be attained. So continuing with the weight goal example, a better statement of the goal would be "I want to lose twenty pounds, by next December 31, by exercising 30 minutes per day, every other day, and eliminating all manufactured snacks throughout '09." By adding in the time dimension, we can chunk our goal down into smaller time periods, against which we can measure our progress. 20 pounds over twelve months equates to a little less than two pounds per month. Two pounds per month is realistic in that it is within what is considered to be a reasonable weight loss range for a healthy person.
So, are your planned resolutions (or goals) for '09 SMART?
Translate your resolutions into SMART goals and you will significantly increase the likelihood of succeeding with whatever are your goals. Get the right support for your SMART goals (the subject of my next post) and you will have dramatically increased the likelihood of your achieving your goals in 2009.

Coming Tomorrow: New Year's Resolution Support, the third post in the series Countdown to New Years. The six part series starts here.

New Year's Resolution Failure

2008-12-26T20:17:00.002-05:00

We are now entering Resolution Week...the name I have coined for the week between Christmas and New Years. The week when so many of us think about what we want to make as a New Year's resolution. Kind of like a birthday wish before blowing out the candles...only a bigger deal.

So with all good intentions, we think about all that we want to change in our lives. Our weight. A habit, such as smoking, that we want to stop. Relationships we want to change. For many, the list of "dream" changes is long.

But, heck this is (soon to be) New Years. A fresh start. Filled with all kinds of new possibilities. Ahhhh, hope springs eternal.

But, the sad fact is that studies have shown that most have broken their New Year's resolutions within weeks, if not days.

Health club memberships skyrocket about this time of the year. Actual attendance at health clubs is strong in January, and by February is starting to taper back to the core group of members that workout year round.

So the obvious question is:
Why do so many well intentioned people fail with their New Year's resolutions?

The most basic answer lies in a concept that was taught to me, many years ago, by Tony Robbins. Tony has long proclaimed that if you really want to change anything you must start immediately. Immediately!

If something is important enough for you to change, then why would you wait?

I so often have people tell me that they will start a new program next week or next month. What that tells me is that they are not really serious about changing.

If one is serious about losing weight, for example, one could...and should...start today. Putting the start off to next week, or to January 1, or to next month is just proof that the person does not want the change enough.

Change is difficult for most people. If one doesn't want to change enough to start immediately, then it is doubtful that one will have the willpower to take all the steps to root the new behavior.

Planning a New Year's resolution or two? If you are serious, really serious, about the changes you want to make, you will start today. Your start may not be perfect, as you may be missing some needed assistance. But, nevertheless, you can get started today.

In those famous words from Nike, "Just Do It."

Coming Tomorrow: Success with New Year's Resolutions, the second post in the series Countdown to New Years.

The 80/20 Rule - Increasing Market Share in a Recession

2008-12-26T17:56:00.004-05:00

One of the most often cited rules of business success is the fabled 80/20 rule which has long been used by speakers and authors to help people focus on the important.

Originally conceived by the nineteenth century economist, Pareto, in its original construct what became known as Pareto's Principle suggested that -- commonly -- 80% of an enterprise's revenue came from 20% of its customers. The logical conclusion coming from such a ratio is that one's primary focus should be on the 20% of the customers, rather than paying tons of attention to the other customers.

Well, although this may apply to some businesses, there are many businesses where this rule clearly does not apply. As just one example of where it does not apply, a supermarket doesn't get 80% of its revenues from 20% of its customers. Nor does a McDonald's restaurant. Nor do most retailers.

But, the underlying point is still a good one. Every business should focus on the customers that really make a difference to the business, especially in these challenging times.

Lately, I have been seeing a lot of businesses who should use 80/20 for a new construct. These are the businesses that have lost 20% of their business. Many who have done so, for example the domestic auto companies, are crying doom.

Now, I don't want to make light of losing 20% of one's revenue. For many companies, absent a dramatic change in the expense structure of the business, a 20% loss in revenues will throw the company into a loss position.

But, who says that if industry volume is down by 20% that one's revenue has to decline by a similar percentage. If industry volume is down by 20%, then that means 80% of the market is still available for those willing to go after it. The challenge in this economy is to take market share away from competitors, and to do so on a profitable basis. Certainly not easy! But, far from impossible.
I see far too many business owners and managers accepting the notion that they should expect their revenues to decline by an amount similar to those of the industry. That is fatal logic!

Think 80/20. Eighty percent of the market still exists after a twenty percent decline in industry or market revenues. Instead of crying over the loss, focus all your creative energy in taking market share away from competitors.

It can be done. And, it is being done by aggressive companies...right now!

Of course, not every company can't take market share away from others. There will be winners (or market share) and there will be losers. For the losers, lights out will likely be the result. So, there is a lot at stake. We are operating in a time when only the strong will survive.

Prospering in a Bad Economy

2008-12-24T09:53:00.003-05:00

As economic woes mount in the U.S. and around the world, more and more people are wondering whether it is really possible to prosper in a bad economy. Over two million people have searched Google on these terms, in the last month alone.

Now some may call me an optimist. But, my consulting clients pay me to be a realist, charting strategies to help them prosper in these times. To help my clients, I am continually scanning the market looking for pockets of opportunity. And, I continue to see wonderful opportunities for those who understand that almost all the rules that we have learned are being replaced by new rules.

Companies trying to sell the same goods and services, at the same prices, that they offered in good times are not likely to prosper. And individuals offering the same skills to employers, at the same salary, are also not likely to prosper.

Regretfully, many companies and many individuals are having trouble shedding what worked well in the past. They are looking at the world through the prism of their past experiences and past successes. How sad!

All of us...individuals and companies alike...face new realities. New needs. New economic constraints. New buying patterns. Etc.

Those who understand these new needs and fashion compelling offerings will prosper. Some are already doing so. Others will, hopefully, soon do so. Regretfully, many will fail to do so as they will be looking at the world through yesterday's rules. Kind of like trying to drive your car forward while looking in the rear view mirror.

The road to prosperity begins with having the right attitudes for these challenging times. The recently concluded series Lessons from the Masters is a great starting point for adjusting your attitude to support personal prosperity in 2009. And, throughout 2009, I will be regularly sharing with you my observations about what I see happening in the market...both the good and the bad. As I do so, I welcome your comments and suggestions.

Happy holidays to all and I will be back on Friday to start a new series Countdown to New Years.

Madoff Fraud Update

2008-12-22T19:09:00.004-05:00

With each passing day, another institution steps forward to disclose that they too have been caught up in the Madoff Fraud. The latest being the disclosure by Tremont Group Holdings, a part of the insurance giant, Massachusetts Mutual Life Insurance, that their clients lost over three billion dollars as a result of the Madoff Fraud.

It doesn't take a genius to see that the number of impacted parties and the size of the impact is quickly making this the full employment act for forensic accountants and lawyers.

Lawyers battling it out as to who knew what, when, and who should have known what, when will play out over many, many months, if not many years. But such battles can obscure that the real tragedy here is the individuals and charities that have been wiped out by this massive fraud. Sometimes, I think that lawyers...in their zeal for new business...can lose sight of the fact that at the heart of every tragedy are real people who have had their hopes and dreams crushed.
I am proud of the fact that one of my clients, the fine Florida law firm of Berger Singerman, was one of the first law firms to publicly address the personal tragedies, of the situation, in a holistic, deeply caring way. Their Madoff Alert speaks for itself.

Can't Find a Job?

2008-12-21T08:43:00.002-05:00

It has been two months since I posted on Find a Job During a Recession with its ten tips. Since then, the economy has continued to deteriorate and job losses have increased. The struggles of people to get re-employed are very real, as is the pain when people making a real effort are unsuccessful.

I have been making sure I allocate time to trying to help those who reach out directly to me. In trying to help friends, I have come to believe that:
the job search process is yet another relic from the past that needs to be re-invented.
The most common advice being given by career counselors seems to be "network, network, network." Inherent in that advice is the premise that there are jobs and that one networks to find the proverbial needle in the haystack. Perfectly appropriate advice for the times fading in the rear view mirror.

But, today the number of openings is miniscule. People who have jobs are holding onto them for dear life. They have stepped up their performance and are working diligently to avoid giving their employer any opportunity to lay them off.

I have come to believe that the economy is reaching the point that the only way to get a job is to take a job away from an incumbent. Ouch! Not a nice thought, but the reality of today's market.

In essence, you have to convince an employer that you can do a given job much, much better the incumbent. With the total number of jobs shrinking by the day, you can't rely on job growth to create opportunities. And, you can't count on job mobility to do likewise. You have to go after a "seat" that is already filled.

Now your mission is not to "per se" take a job away from an incumbent. But, that is the effect. Your mission is to demonstrate that you could and would do a much, much better job than one of the incumbents.

Now networking can help identify some targets for this approach. But, classic networking for the purpose of finding an open “seat” is a perfectly appropriate strategy….for a different era. And, yet that is what the crowd is largely doing.

Sad! Really sad!! Following the crowd is seldom the way to go. In this case, it seems to me to be the complete wrong way to go.

Joyce Meyer Wisdom for Tough Times

2008-12-20T21:19:00.002-05:00

For the last three weeks, I have been sharing wisdom from some of the very best coaches, life philosophers, and authors. This post is the final in the series Lessons from the Masters. And, it is appropriate that I conclude on a subject near and dear to my heart, and with a source of great wisdom, Joyce Meyer.

In these challenging times, few things are more important than being at personal peace. There is much one can choose to be angry about from the boss that terminates you to the Wall Street crowd which may have contributed to the devastation of your retirement fund.

Anger will do little improve to your lot in life. In fact, I have more often witnessed it destroying people. Anger destroys all kinds of relationships, as well as ones health.

Now, few if any people get up with a plan for the day to be angry at the world. But, it is easy to slide into such a mindset as we encounter the potholes of life. And, that is why it is so important to counter that possibility with a plan to, as Joyce Meyer suggests in her excellent book In Pursuit of Peace, aggressively pursue peace.

At the conclusion of this book, Joyce suggests that we

"make a commitment to to pursue peace from this day forward: to discover all you can about what your Peace Stealers are, to know yourself and face the truth that will set you free."

For many centuries, all forms of wise men (and women) have proclaimed the virtues of peace. No one has ever made a serious case that anger or hostility is a better way than peace.

Are you at peace in these challenging times? With yourself, with others and with your Divine Spirit?

Marshall Goldsmith Wisdom for Tough Times

2008-12-18T23:37:00.005-05:00

One of the issues I think about often, for myself and for my clients, is how so often our past success breeds our future failure.

When we have heard the cheers, it is frequently difficult to change...this is what is called the "success trap."

One of my favorite illustrations of the success trap comes from the very talented, wonderfully articulate, and so classy NASCAR driver Jeff Burton. Some years ago, as I recall, Jeff had led all the laps of a race until the final two when he got passed and had to settle for runner-up. When asked by a reporter how he could possibly lose after leading so many laps, Jeff replied with this profound statement:

"I haven't yet learned how to adjust when I am winning."

For all of us, adjusting when we are winning is counter-intuitive. Why change when we are winning?

We must change to reflect changed circumstances. In Jeff Burton's case, the track condition was changing and his car needed to be adjusted to take advantage of the changes. In today's environment, all us of need to make changes.

Marshall Goldsmith wrote a terrific book which dealt with this phenomena as it pertains to our performance at work. What Got You Here Wont' Get You There is especially relevant in today's corporate world where one personal performance problem could have you on the "cut list."

Are you about to be the victim of the success trap? Is your past success breeding your future failure in this world where so much is changing, so quickly?

Coming Tomorrow: The exceptional wisdom of Joyce Meyers. You can read the entire series of Lessons from the Masters by starting here.

Joe Caruso Wisdom for Tough Times

2008-12-17T21:54:00.006-05:00

One of the many challenges of the current economic and financial environment is that so many of the "rules" are being rewritten. Many an executive has been surprised by very different business responses -- to actions -- from consumers, business customers and even the Federal government.

To me the current environment reminds me of running a river in whitewater. So much is so unpredictable.

Must human beings prefer predictability. Predictability provides us with comfort...or put another way, we are very uncomfortable when things are not predictable. When things are not in our control.

I am a huge fan of Joe Caruso, an author and life philosopher who introduced me to the benefits of finding strength, meaning and happiness in an out-of-control world. Joe explains these benefits in his terrific book, The Power of Losing Control.

In this book, Joe tells the story of his being diagnosed with cancer and entering a period of his life where he lost much of the control we enjoy in our daily lives. From this position, he taught himself the benfits of letting go of the things one cannot control.

Whitewater rafting can be terrifying...or thrilling. It is likely to be the latter only when one lets go of the notion of trying to control the situation, and instead to "go with the flow."

None of us can control the economy. What we can control is how we choose to respond to this economic meltdown.
I have chosen to embrace the recession, instead of fearing it.

What is your choice?

Coming Tomorrow: The exceptional wisdom of Marshall Goldsmith. You can read the entire series of Lessons from the Masters by starting here.

Fed Slashes Interest Rates

2008-12-17T09:46:00.003-05:00

Well, the government intervention mentioned in my post on Sunday about the Madoff Fund Collapse was quick to occur. Yesterday, the Federal Reserve slashed the Federal Funds rate to a target range of 0-.25%, a dramatic reduction from the former rate of 1%. In the last fourteen months, the rate has been cut 10 times in an effort to stimulate the economy.

Although the magnitude of the rate cut seemed to sit well with the stock market, as a pragmatist, I see much to be concerned about with the size of the reduction and with the new target. As to the size of the reduction, the Fed has clearly signaled that they are very concerned about the snowball of a declining economy that just keeps getting worse. Beyond the size of the reduction, the Fed's accompanying statement was equally ominous, “The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.”

Although clearly a necessary move in light of the direction of the economy and the size of the Madoff fraud, a target of 0% means that the Fed can no longer use interest rate movements to bolster the economy. Although it still has tools available, an important tool is effectively used up.
Our economic policymakers are up against a plethora of problems...any one of which, by itself...would do real damage to our economy. Together they are crippling our economy.

We have witnessed the collapse of our investment banking firms, then the effective insolvency of the commercial banking system, and now we will likely see the meltdown of hedge funds.

Every day, in almost every way, I become ever more concerned that the pessimistic view of the economic future that I wrote about back in October is regretfully becoming painfully real. I continue to believe that smart companies and prudent individuals will stop asking how long the downturn will last and will instead get on with positioning themselves to prosper in tough times that are likely to last for years. Anyone doing "business-as-usual" with an expectation of a quick tunraround is sure to experience sever financial pain.

Judi Moreo Wisdom for Tough Times

2008-12-16T22:15:00.004-05:00

Although the financial elements of the economic meltdown are getting primary focus in the press and in people's discussions about these challenging times, it is the people aspects of these times that concern me most.

Economic stress will quickly produce stress in other aspects of people's lives. And, it is the relationship stresses that concern me most. I worry about the out-of-work spouse who starts taking their anger out on their children. I worry about what a job loss can do to a marriage relationship. And, I worry about the family relationships that will be adversely impacted by economic woes of one or more members of a family.

One of the segments of the population that I worry about most is middle aged women who will be cast aside by husbands forced to start their wealth building again (to be fair, there will be women also casting aside their husbands when they learn their net worth has evaporated in this economic meltdown). Many of these women have been out of the job market for years and will now need to quickly find a job in an environment where jobs are very difficult to find. Ouch!

To women of all ages, finding themselves starting over, I highly recommend Judi Moreo's excellent book, You Are More Than Enough.

I am a fan of so many authors that I almost hate to ever recommend a single book. But, for the woman who finds herself cast aside and needing to quickly reposition herself, the guidance of Judi Moreo is a great starting point. Judi communicates a wonderful mix of "can do" attitude with very practical suggestions on getting on a better track of life.

Life is, often, not fair. All of us, from time to time, experience events and circumstances that we don't deserve. How we handle those events and circumstances determines our future. Never has that been more true.

The good news is that there is a wealth of wisdom that is available for those who choose to improve their future.

Are you aggressively using the resources available to help you prosper in tough times? Or, have you resigned yourself to be a victim of the times?

Coming Tomorrow: The exceptional wisdom of Joe Caruso. You can read the entire series of Lessons from the Masters by starting here.

Marci Shimoff Wisdom for Tough Times

2008-12-15T22:36:00.004-05:00

For many people, these are unhappy times. Many have lost their jobs, some through no fault of their own. Most have had their retirement funds devastated by the market downturn, some have had theirs wiped out by the Madoff Fraud. And, even those who have been fortunate enough to avoid one of these direct blows have friends or relatives who have serious blows.

It has gotten to a point where it almost feels rude to be happy in such tough times. But, here is the conundrum...unhappy people seldom experience prosperity, at least in my experience.

So I believe it is important to be happy even in tough times. And, when it comes to explaining the importance of happiness, one of my very favorite authors is Marci Shimoff, author of the terrific book Happy for No Reason.

Although written for a different time, this book is especially relevant in these challenging times. Marci's step-by-step guide for building a happiness "home" is just what the doctor ordered (or should have) as a prescription for these challenging times.

Yes, I feel deep compassion for those who are struggling...but, at the same time, I am resolute and unapologetic that I choose to be happy, notwithstanding the tough times.

Coming Tomorrow: The exceptional wisdom of Judi Moreo. You can read the entire series of Lessons from the Masters by starting here.

Hedge Fund Fraud Impact on Recession of 2008-2009

2008-12-14T07:22:00.002-05:00

Even before the Madoff fraud hit the news, hedge funds were feeling enormous financial pressure. Some relatively modest fund meltdowns, low recent returns, and heavy investor demands for withdrawals has put even well established funds under pressure.

The Madoff fraud is the crowning blow. The direct impact is to make sophisticated investors wonder if any of the hedge funds can really be trusted in view of their virtually non-existent third party regulation. The indirect impact is to call into question the capabilities of the due diligence really performed by funds of funds ("FOF's"). With some estimating that approximately one half of hedge fund investing is through FOF's, any tarnishing of the capability of these entities is very problematic.

Couple the hedge fund industry problems with investor independent need for withdrawals to meet investor liquidity problems of their own and you have the recipe for yet another disaster in our financial institutions. Liquidity demands on the funds will necessitate rapid sale of assets, in a market that is not kind to sellers of any kind.
I fully expect that it will get as ugly for the hedge funds as it has been for the investment banks and commercial banks. If not even uglier, as I don't see a political appetite for rescuing these funds.

And, the snowball just keeps picking up speed.

Madoff Fund Collapse Creates a Black Monday?

2008-12-14T07:21:00.006-05:00

The purpose of this blog is not to provide investment advice. In fact, we expressly disclaim that the blog should even be used for such purpose. However, commenting on aspects of the financial meltdown is a regular part of the blog.

Although the Madoff fraud news broke last week, the financial market impact will likely play out over the next couple of days. I full expect that the chaos likely to play out in the financial markets, tomorrow and the remiander of the week, will fully test the mettle of the Fed and the Treasury Department.

The ripple effects of the Madoff collapse can be expected to play out starting on Monday. And, it is likely to be very ugly.

The first ripple ring is those that directly lost money. These individuals and institutions will have liquidity issues of their own. They will also lose the confidence of their lenders, thereby starting a death spiral where liquidity just completely dries up in an instant.

The second ripple ring is likely to come from a loss of confidence in hedge funds and all manner of attempts to pull money out. Desperate people will be looking for ways to circumvent any contractual limitations on their ability to make a withdrawal claim at this point. Inflows to hedge funds are likely to slow dramatically. This combination means that many hedge funds...even beyond those directly impacted...are likely to have severe liquidity needs. Absent the Fed opening the Discount Window to the hedge funds (a scary thought in view of the absence of regulation [as proven by Madoff]), hedge funds are likely to be dumping all manner of assets in a desperate attempt to meet liquidity needs. Very ugly!

The third ripple ring is that the expected flight to safety will put tremendous downward pressure on prices of all manner of securities, thereby creating yet another ripple.

Absent very adroit government intervention, Monday has the potential to go down in history as one of the most monumental days in financial history.

I am praying that I am very, very, very wrong.

Madoff Fraud Ripple Effect on Recession

2008-12-14T07:18:00.003-05:00

The Madoff ponzi scheme which is unfolding in NYC looks like it could have a ripple effect very similar to the damage inflicted by Lehman Brothers collapse this past summer. Although not as large as Lehman, the fact that it was a Ponzi scheme means the percentage losses will be even greater.

As if the economy was not snowballing downward enough, this fraud will be a nasty accelerant. This is a huge fraud....aparently a couple of times larger than Enron (which was not a total fraud as here).

Regular readers of this blog know that rising fraud is to be expected with the downturn. But, this fraud predates the downturn. So my takeaway is that if people will cheat their close friends in good times, just imagine what they will do when under severe distress.

I am writing this from the Boca (FL) area where I happen to be as this story breaks. The Boca/West Plam area, along with the NYC area look to be the epic center of the fraud. In NYC, the impact will be spread because of the size of the wealth community. I expect the impact in South Florida to be much more severe.

The South Florida economy was already reeling worse than the norm...this is yet another kick in the teeth for business owners and residents in this area.

But, the ripple effects of this fraud will be much, much more far reaching. I regret to say that this is yet another factor that validates my previous views that this downturn will be more severe than most have expected and longer loasting.
So is this the beginning of the end of the world...hardly!

I continue to see business owners and individuals that are positioning themselves to not only survive, but to thrive and even prosper in these tough times. Have you made the choice to prosper in these tough times?

Corrine Bucher Wisdom for Tough Times

2008-12-13T17:28:00.003-05:00

One of my many blessings is the number of coaches that are among my friends, protege's, master mind partners, and mentors. Hardly a day goes by that I am not benefiting, in some way, from an interaction with a coach. And, that is above and beyond my work with my two personal coaches.

This year, I had the good fortune to be in a group coaching program where I met one of the most impressive coaches I have met in some time. Corrine Bucher, who specializes in coaching mothers balancing raising young children with career demands, is a fantastic person and an even more fantastic coach. I learned so much from her watching her navigate through Mary Allen's group coaching program.

In addition to an active coaching practice, Corrine is raising two young children and managing the household in a family where her husband's career has him often on the road (sound familiar, ladies?). Even with all that is going on in her life, Corrine is an advocate for the importance of extreme self care. And part of her personal self care is to regularly surf in the Pacific Ocean.

One of Corrine's gifts to our group
was a surfing metaphor
...that of leaning into a wave,
even as your mind is fearing the wave.

I have had the benefit of watching the great results that Corrine creates in her life when she "leans into" that which she fears.

This economic meltdown is very real. It is absolutely normal to have fears about what all of us are seeing happen around as friends lose their job, business are shuttered, etc. What matters most is how you handle those fears.

Those who prosper will be those who lean into it....i.e., those who embrace the recession, rather than run from it.

Are you leaning into it? Are you embracing the recession and seeing the new opportunities being created? Or, are you frozen in fear?

Coming Tomorrow: The exceptional wisdom of Marci Shimoff. You can read the entire series of Lessons from the Masters by starting here.

Outward Bound Lesson #2 for the Recession

2008-12-13T17:16:00.001-05:00

As I see more and more friends impacted by the economic meltdown, the challenges we all face remind me - more and more - of some of the challenges I have faced on my six Outward Bound experiences. And, I am reminded of some of the powerful lessons I learned from my Outward Bound experiences.

Back in October, I wrote about one applicable lesson - the importance of having the right mates in tough times.

Watching industry after industry appeal to Congress to "save their industry" reminds me of yet another important Outward Bound lesson. That is the lesson of "self-rescue."

I will never forget the first time my canoe capsized in very challenging whitewater. As I bobbed to the surface of the wildly churning river, I spotted one of the instructors in a canoe about 10-15 yards away. I called out "help, help."

Back came the words I will never forget "self-rescue Dave." Just then I bobbed underwater again and when I came back up I again yelled "help help."

And, again back came the words "self-rescue Dave." At which point, I finally got the message. I was expected to rescue myself. At which point, I quickly concluded I needed to swim to the nearest shore. Which I did, albeit not without great difficulty.

My instructor always hovered nearby, but he sent a clear message that:

it was up to me to save myself.

It is a lesson that I have never forgotten!

It is a lesson more CEO's need to learn. Flying to Washington in a private jet to ask for a bailout, as the automakers did, is hardly demonstrating a commitment to self-rescue.

Unfortunately, ours is a society that likes to blame others for our failures. And, likes to expect others to rescue us from our failures.

Are you a business owner or executive counting on Washington to save your company, or are you committed to self-rescue as if your life depended on it?

Are you an individual out of work and counting on others to save you? Or are you pursuing finding a job as if your life really depended on it?

The surest way I know to save oneself, or one's company, is to practice self-rescue. Asking for assistance from others is smart, but ultimately we all have to reach down deep and use all of our strength to do our part.

This is the second in an ongoing series commenting on the lessons I learned from Outward Bound that are applicable to these tough times. Next up, the importance of service to others.

T. Harv Eker Wisdom for Tough Times

2008-12-12T21:33:00.003-05:00

Regular readers of this blog have hopefully come to understand that I believe that "prospering" is much more than just a money thing. Some of the most "prosperous" emerging from this downturn will be individuals who have distinguished themselves by all the people they have helped to weather the downturn.

Notwithstanding my core belief about the nature of true prosperity, dealing with our thoughts about money are more important than ever. And, few are more articulate on the psychology of money than T. Harv Eker, author of the New York Times best seller Secrets of the Millionaire Mind.

Although published in 2005, during a much better economic scenario, this book is perhaps even more relevant in these tough times. Eker's seventeen ways that rich people think and act differently from poor and middle-class people are as relevant today as they were in 2005.

Here is one example of Eker's seventeen theories (#5):

Rich people focus on opportunities.
Poor people focus on obstacles.

Now, I am witnessing all manner of rich people being financially destroyed in this meltdown. But, I absolutely believe that many if, if not most, who lose their fortunes in this meltdown will be among those that most quickly create fortunes in the years to come. For they have what Eker contends is a "Millionaire Mind."

What kind of mind do you have? Are you fretting about the meltdown? Or are you looking for ways to embrace the downturn and to seize the opportunities being created as a result of the meltdown.

Coming Tomorrow: The exceptional wisdom of Corrine Bucher. You can read the entire series of Lessons from the Masters by starting here.

Mary Allen Wisdom for Tough Times

2008-12-10T23:07:00.005-05:00

In tough times, it is more important than ever to surround oneself with a great support team. The times are just too tough to be going it alone.

An ideal support team should include a coach, a mastermind group, and a couple of mentors. I so believe in the importance of a good support team that I have two coaches, two mastermind groups and a deluxe group of mentors (and awesome protege's who are constantly stretching my thinking).

One of my two coaches is the fantastic Mary Allen whose work with clients on everyday inner peace is first rate. Mary is the author of The Power of Inner Choice.

I have just concluded a year long group program with Mary that was terrific. The program's focus was everyday inner peace. I am looking forward to starting a new program with Mary and a new group in January.

Mary has helped me improve my ability to maintain a sense of inner peace even among the most trying of circumstances. Tough times will create many trying circumstances and I am glad I am equipped with the skills learned through Mary's group program.

Inner peace...if you don't have it, get some help developing it. Prospering in tough times is highly unlikely if you are at war with yourself (and others).

Coming Tomorrow: The exceptional wisdom of T. Harv Eker. You can read the entire series of Lessons from the Masters by starting here.

Seth Godin Wisdom for Tough Times

2008-12-09T19:48:00.004-05:00

Regular readers of this blog have undoubtedly figured out, by now, that I am a voracious reader (and reviewer on Amazon where I post reviews of the best of that which I read).

Reading....like my client work...stretches my mind. I read with a challenging frame of mind, constantly asking does the author have it right (there is a ton of BS that one must filter through to get to real wisdom).

In a rapidly changing world, stretching one's mind is very important. And, no author stretches my mind more frequently than Seth Godin. His books are terrific, but his blog is even better yet. Every single blog posting is a delightful morsel of wisdom, with a perspective that is constantly stretching my thinking.

If you have the time to read just one blog (beyond this one :) ), my recommendation for business people would be Seth's. He really gets it! And, I hope you do also.

All the rules are being rewritten at 100 mph!

If you are playing by the old rules, you are likely destining yourself to failure. You will be losing your job, if you haven't already done so. Or, your business will be failing, if it hasn't already done so.

Those who will prosper in these tough times will be those who quickly grasp the new rules and fashion strategies to win with the new rules.

Coming Tomorrow: The exceptional wisdom of Mary Allen. You can read the entire series of Lessons from the Masters by starting here.

M.J. Ryan Wisdom for Tough Times

2008-12-08T18:52:00.004-05:00

M. J. Ryan is one of my favorite authors, and a well regarded personal coach. Each of her books is a treasure trove of practical advice, most often woven around concept of the importance of having an attitude of gratitude.

One of my personal favorites of her books is Attitudes of Gratitude - How to Give and Receive Joy Every Day of Your Life.

In challenging times, having an attitude of gratitude is not always easy. In fact, it can be downright very difficult.

How does one have an attitude of gratitude when ones retirement account has lost, for example, 50% of its value?

How does one have an attitude of gratitude when one has just been terminated from their job?

How does one have an attitude of gratitude when one's business revenue is down, for example, 30% and profits have turned to losses?

All around us, people are experiencing these kinds of pain. Some will respond with personal depression, even thoughts of suicide; while others will soldier on with their attitude of gratitude shining bright.

In her book, Attitudes of Gratitude, M.J. reminds us that:

"gratitude births only positive feelings - love, compassion, joy and hope. As we focus on what we are thankful for, fear, anger, and bitterness melt away, seemingly without effort."

The key to creating the attitude of gratitude is to get crystal clear on all you do have, rather than on what you no longer have.

I am fortunate in that my attitude of gratitude is reinforced every day because of the fact that my wife and I have chosen to care for Scotty, a multiply disabled man who lives with us and has taught me so much. As I watch Scotty deal with his disabilities, and all the while wear such a beautiful smile, I can't help but to be reminded about just how blessed I am...to be able to see...to be able to walk...to be able to talk. Etc. Etc.

What about you? Is your attitude of gratitude shining brightly?

Are you a beacon of strength and compassion for your family, friends and co-workers?

I am absolutely convinced that those who prosper most in these tough times will be among those whose gratitude is abundant...even when things aren't going their way.

Coming Tomorrow: The exceptional wisdom of Seth Godin. You can read the entire series of Lessons from the Masters by starting here.

Cal Ripkin, Jr. Wisdom for Tough Times

2008-12-07T19:25:00.004-05:00

Tough times require perseverence and when it comes to perserverence, Cal Ripkin, Jr. is one of the better examples from the world of sports. Ten years ago, Cal voluntarily ended his streak of consecutive major league baseball games at 2,632. Three years earlier, he had broken the consecutive game record of Lou Gehrig that most thought would never be broken in a day and age with high paid superstars.

In 2007, Cal Ripkin, Jr. published his fine book and wonderful primer on perseverence, Get in the Game - 8 Elements of Perseverence that Make the Difference.

It would be easy to dismiss Cal's book as just a series of platitudes. But, Cal Ripkin's success, both on and off the field , remind us that this is a man who walks his talk. He earned the respect to make statements like the following resonate with us.

"Never let anyone outwork you. Don not take for granted that you have a job."

Are you taking your job for ganted?

Are you taking your customers or clients for granted?

Are you taking your friends for granted?

These are times where nothing should be taken for granted. Those who prosper in these tough times will be those who are focused on adding continuous value to all of their relationships, both business and personal.

Coming Tomorrow: The exceptional wisdom of M. J. Ryan. You can read the entire series of Lessons from the Masters by starting here.

John Wyland Wisdom for Tough Times

2008-12-06T18:41:00.007-05:00

John Wyland is a fantastic artist, and a savvy businessman. I love his marine life art which can be seen and purchased at Wyland Galleries. Here is an example of one of his bronze sculptures commemorating the spirit of the 2008 Olympic Games in Beijing and entitled ''Faster, Higher, Stronger."

Jack Canfield, in his terrific book The Success Principles, quotes some universal wisdom from John that is even more applicable in tough times:
"There are two types of people - anchors and motors. You want to lose the anchors and get with the motors because the motors are going somewhere and they are having more fun. The anchors will just drag you down."

Time for a tough question. Are you an anchor or a motor, for others, in these tough times?

The question was not what you want to be viewed as. What are you actually viewed as by friends, co-workers, etc. ?

Are you certain enough as to what others would say that you would put it to the test with some friends, co-workers, etc.?

And what about those with whom you spend the most time? How many anchors are in that close group?

In these tough times, you want to be surrounded by motors. To be surrounded by motors, you need to be a motor for other motors are not likely to tolerate anchors in these tough times.

Coming Tomorrow: The exceptional wisdom of Cal Ripkin, Jr. You can read the entire series of Lessons from the Masters by starting here.

Kevin & Jackie Freiberg Wisdom for Tough Times

2008-12-05T18:10:00.005-05:00

Best selling authors Kevin & Jackie Freiberg are enemies of "business-as-usual." And, never in my lifetime...and likely yours...has there been a better time to adopt a strong aversion to business-as-usual.

With so many of the norms of business and finance being tipped on their head by this economic decline, it is illogical for anyone to be pursuing a "business-as-usual" approach. Yet, I see so many companies and so many individuals making relatively small tweaks to their strategy and tactics.

In their latest book, Boom - 7 Choices for Blowing the Doors Off Business-as-Usual, the Freibergs advocate that individuals make a conscious choice to make a difference in their work by making the right choices...choices that blow-up business as usual.

So what about you? Are you motoring through the emerging tough times largely doing the things you did in good times?

Other than cutting back on expenditures, what substantive changes have you made to your personal strategies and tactics?

And, if you are an executive or business owner, what changes have you made to your business strategies and tactics?

If you are tweaking, rather than quickly reinventing, then it is highly unlikely that you will be one who prospers in this servere dowturn.

Coming Tomorrow: The exceptional wisdom of John Wyland, the renowned marine life artist. You can read the entire series of Lessons from the Masters by starting here.

Jack Canfield Wisdom for Tough Times

2008-12-04T21:10:00.004-05:00

One of my favorite writers and speakers is Jack Canfield. Co-author of the Chicken Soup for the Souls series, Jack can always be counted on for very pragmatic advice on how to improve one's performance, in any situation.

Jack's most recent book, The Success Principles, is one of my all time favorite books on success. Published three years ago, this book is as relevant for tough times as for the more favorable times that existed when the book first came out.

Jack's thesis is that there are time proven principles for personal success, which if followed, will inevitably lead to success. As he likes to remind us
"The principles always work if you work the principles."

Jack Canfield is not suggesting that doing the same thing things you did in good times will work in tough times. It is the principles that will work, not all the strategies and tactics that may have been sucessful in the past. Changed times require changed strategies and changed tactics.

Are you working the success principles (either Jack's 64 or your own), or have you let the tough times throw you off your game?

Coming Tomorrow: The exceptional wisdom of Kevin & Jackie Freiberg. You can read the entire series of Lessons from the Masters by starting here.

Tony Robbins Wisdom for Tough Times

2008-12-03T23:11:00.006-05:00

When it comes to having the right attitude for tough times, Tony Robbins is one of the people who quickly comes to mind. For over 30 years, Tony has been teaching people how to use fears to empower us, rather than freeze us.

There is a fine interview with Tony Robbins in the January 2009 issue of Success magazine.

I have learned a lot from Tony over the years. But, by far the most lasting wisdom from Tony Robbins, for me, has been his reminder of the importance of "massive action." Tony is long on advocating having the right set of beliefs. But, he is passionate about the importance of "massive action" both for physiological reasons and for the results that come from such actions.

Have the tough times got you curled up in fear, or have you dramatically increased your productive actions?

Do you have yourself in the best physical and mental condition of your life so you can sustain the level of activity required to prosper in tough times?

If you are employed, have you stepped up the amount of value creating activity you are putting out for your employer?

If you are unemployed, are you really, really working hard to get re-employed?

If you own a business, have you stepped up dramatically your commitment to action?

And, if you are starting a business, are you consistently investing massive action?

Coming Tomorrow: The exceptional wisdom of Jack Canfield. You can read the entire series of Lessons from the Masters by starting here.

Bob Tormey Wisdom for Tough Times

2008-12-01T22:50:00.006-05:00

With the initial posts in this series being about authors and coaches, I thought it would be fun to switch gears and reach into the business world for an opinion as to what it will take for any of us to prosper in these tough times.

One of the financial executives I respect most is Bob Tormey, a Restructuring CFO with the professional service firm of Tatum LLC. Bob, who hails from the Los Angeles area, is a very, very astute observer of what is happening in the financial world, especially as to his personal sweet spot of middle market companies.

When I recently asked Bob what he thought about these tough times, he reminded me that:

"Life’s tests are not tests of ability, but tests of character."

Bob was quick to point out that the quote sounded like something he must have read somewhere, and certainly we have all seen variations on this theme by any number of authors and speakers.

Bob and I went on to discuss how, in past downturns, white collar criminal activity had increased, just as bank robberies have historically done. Some executives will, regrettably, succumb to the "need" to produce attractive financial data and falsify data. Some may even be ordered to do so by a superior.

This is just one manifestation of Bob's sage caution. This downturn will test the character of all of us, each likely in different ways.

How is your character holding up so far (I am on record as saying we are still early in this downturn)?

What if any values have you compromised with the rationale that the tough times are making it necessary to do so?

And, what checks and balances do you have in place to make sure that you don't compromise your values in the future?

Coming Tomorrow: The exceptional wisdom of Tony Robbins. You can read the entrire series of Lessons from the Masters by starting here.

Wayne Dyer Wisdom for Tough Times

2008-11-30T23:50:00.004-05:00

Wayne Dyer, the prolific author and life philosopher, has had an enormous impact on the development of my own life philosophy. And, he is an important part of the story of the Wisdom of Scotty, a keynote presentation I will be bringing to fund raising events of charitable organizations in 2009.

There are many things that I have learned from Wayne that are useful in dealing with these turbulent times. But, that which comes top of mind is his reminders that "teachers will appear" when we open to the wisdom of the universe.

The tough times are sure to bring out the best in some people, and the worst in others. In the former group will be people who summon up courage and compassion beyond what even they knew they had. These will be people who can inspire you to follow their lead and to operate with courage and compassion.

In the latter group will be those who succumb to their fears and stresses and bring pain to others. These people will be "teachers" of what you don't want to be like.

These are rapidly becoming times like none most of us have experienced in our lives. We can benefit from the wisdom of new teachers....who will appear...if we have an open mind.

What new teachers have come into your life recently?

What kinds of teachers do you need to come into your life to help you prosper through times?

Is your mind truly open to new teachers coming into your life?

Coming tomorrow: The exceptional wisdom of Bob Tormey. You can read the entire series of Lessons from the Masters by starting here.

Kat Tansey Wisdom for Tough Times

2008-11-29T12:27:00.005-05:00

When it comes to understanding change, I know of few people who understand it better than my dear friend Kat Tansey. On both a professional and a personal level, Kat has had experiences that make her someone worth listening to when it comes to the changes one needs to make to prosper in tough times.

On a professional level, Kat is a co-author of Winning the Change Game. And because of her years of experience in the field of organizational and personal change she was chosen earlier this year as the Exceptional Wisdom scholar on the subject of change.

On a personal level, Kat experienced a traumatic series of changes that are chronicled in her just released book, Choosing to Be, Lessons in Living from a Feline Zen Master. This heartwarming story shares Kat's experience in literally saving herself from a severe unknown illness (at the time), which would later be discovered to be Chronic Fatigue Syndrome. She attributes her being saved to lessons she learned from her two beloved cats, Catzenbear and Poohbear.

Kat believes those who prosper in these tough times will be those that understand that "Being" is as, or more, important than "Doing." Kat believes that one of the most signifigant problems with tough times is that we can easily slip into a state of fearful reacting and frantic doing. As Kat likes to remind her coaching clients:
What happens when you have the misfortune to step into quicksand? The more you struggle, the faster you sink.

Those who prosper in these tough times will make time to get themselves centered about the things that are really, really important in one's life. Their actions will then spring from their knowing of what is really important.

What is interesting is that Kat, like Cheryl Richardson, believes that everything starts with taking care of oneself. In good times, or in tough times.

Have you significantly stepped up your efforts at taking care of yourself?

Coming tomorrow: The exceptional wisdom of Wayne Dyer. You can read the entire series of Lessons from the Masters by starting here.

Cheryl Richardson Wisdom for Troubled Times

2008-11-28T19:38:00.007-05:00

Over the next two weeks, I will be sharing what I am calling Lessons from the Masters. Every day, I will feature one tip for personally prospering in tough times from people I respect as being among the wisest people that I know. Some are close friends, some are a mentor to me, and others are people who have somehow adopted me as their mentor. No single person can have all the answers for how to prosper in these tough time, as these times are so unique. But, I hope that by offering up this montage of tips, readers will be able to fashion their own game plan for personally prospering in these times.

First up in this series is a woman whose wisdom I respect enormously and who has made a huge difference in my own life, my friend Cheryl Richardson. Cheryl is a bestselling author and well known speaker. She has been featured on Oprah many times, has had two of her own PBS television specials, and has her own weekly radio show on Hay House Radio.

Cheryl’s latest book will be released in the next month and is perfectly timed for these tough times. The Art of Extreme Self Care is sure to become another best seller for Cheryl Richardson.

The thesis of Cheryl’s book and her recent speeches is that it is not enough to just commit to take care of one’s self. Our goal must be to practice EXTREME self care, especially in turbulent times.

In her typical divine fashion, Cheryl advises readers and attendees at her speeches that taking care of ourselves is not selfish; if by doing so, we then take care of others. In these troubled times, your loved ones, friends, co-workers and community will need your help even more. To be able to help them, you must make taking care of yourself...physically, mentally and spiritually...your highest priority.

Exceptional wisdom from a highly respected thought leader.

Coming tomorrow: The exceptional wisdom of Kat Tansey.

Recession Proof Businesses

2008-11-28T13:11:00.002-05:00

I am honored to be listed on this page of top resources for info on Recession Proof Businesses. I am listed with some top talent. But, the truth of the matter is that:
I don't believe that any business is really recession proof.

The depth and severity of this economic downturn will test the mettle of all executives and all business owners. Sure there are some businesses that will naturally do better in the downturn...but, there are no sure things in this economic snowball.

The closest thing to a sure success, in business or at a personal level, will be those that skillfully embrace the recession. See my recent series of posts on Embracing the Recession to learn why "embracing" is so important.

Dave Carpenter Selected as Host of the Restructuring America Radio Show

2008-11-27T22:05:00.003-05:00

Boston based Exceptional Wisdom, Inc. has selected Dave Carpenter to be the host of its newest weekly radio show, Restructuring America. Every week, Dave will be interviewing leading players involved on the front lines of restructuring American companies to enable them to survive, thrive and hopefully prosper in these tough times, and beyond.

Having himself previously been on the restructuring front lines for 25 years, Dave Carpenter is well equipped to ask his guests the penetrating questions that will give listeners an insight into how this economic downturn will play out. His guests will include leading restructuring attorneys, consultants and investment bankers.

The show airs live on Exceptional Wisdom Radio, every Friday at noon (EST), starting in January. Because Exceptional Wisdom Radio is internet radio at its very best, listeners can also listen, at whatever time they desire, by using any one of the convenient means of access.

Dave Carpenter Shares the Wisdom of Scotty at Charitable Events

2008-11-27T22:04:00.002-05:00

Because of Dave’s concern about the impact of the recession on charities, he has committed to making twenty presentations…in 2009…of The Wisdom of Scotty at no cost to non-profit organizations.

The Wisdom of Scotty is the heartwarming story of what transpires when a multiply disabled young man (Scotty) meets a successful business consultant (Dave Carpenter). Besides having some very powerful life lessons, the story is unique because of the unexpected role reversal wherein Scotty becomes Dave’s teacher.

It would be wonderful if Scotty could tell his story directly to audiences. However, because of the severity of his disabilities, it is Dave who is left with the responsibility to share Scotty’s profound wisdom with the world.

Dave Carpenter is a gifted communicator who can be the highlight of you charitable fundraising event. He has long been a popular speaker and highly regarded consultant in the corporate world where he is best known as someone with a special talent for taking the complex and making it simple to understand (and implement!). You can learn more about his many activities by visiting the LinkedIn profile of Dave Carpenter. And, you can get information here on booking Dave to speak at your event.

Dave Carpenter Presents Strategies & Tactics for Prospering in the Recession

2008-11-27T22:01:00.002-05:00

This blog has been designed to help executives, entrepreneurs and everyone else to learn an approach to prospering in tough times. It is intended to be more than just a “feel good” site. The challenges of this economic downturn, for both business and individuals, are very real. In fact, they are as severe as anything I have witnessed in my life time. Businesses and individuals need strategies and tactics relevant to the severity of the circumstances.

I feel very, very fortunate that my entire life seems to have been amazing preparation for these times. My six Outward Bound wilderness experiences have been great preparation for surviving in challenging environments. My work with Scotty, a multiply disabled young man for whom my wife and I are his caregivers, has taught me valuable life lessons about the role of the right attitude, especially under challenging circumstances. My twenty five years on the front lines of the Restructuring world has taught me the strategies and tactics that are critical to saving a company. And, my dozen years of advising growth companies has helped me to hone my understanding of what it takes to start and grow a successful business, no matter the circumstances.

Because of the pain I see so many companies and individuals feeling, I decided to launch this blog. Through regular posts, I will be sharing my best thoughts on what I…and others…believe will be the strategies and tactics for surviving, thriving, and even prospering in these tough times. Does Dave Carpenter have all the answers? Hardly! Like every one of you, I learning new lessons every day. But, as I observe, and even sometimes stumble about, I will share my very latest thinking on what it will take to prosper in the 2008-2009 recession.

Here are the top posts, that readers have communicated as being the most helpful to date…some of the posts deal with business issues, others deal with personal dimensions:

To learn more about my background, you can visit the site of Dave Carpenter. Or, you can read the LinkedIn Profile of Dave Carpenter.

Your thoughts, comments and observations to any of my posts are most welcome, as is your recommendation of this blog to family, friends and co-workers.

Thanksgiving Blessings

2008-11-27T07:10:00.007-05:00

In challenging times, it is sometimes easy to forget to take the time to be appreciative of all that we do have, as opposed to focusing on what we don't have. Without a doubt, there is more pain being experienced throughout the U.S., and even around the world, then there was one year ago. But, almost all of us nevertheless have much for which we can...and should...be appreciative.

So, on this Thanksgiving Day, I want to wish everyone in the U.S. a wonderful holiday. May the joy of sharing some turkey and trimmings with family and friends triumph over any hardships you are enduring.

Today is also a great day to think about the fact that we are blessed year-round. Gratitude is one of the most powerful forces known to mankind.

There is no masking of the challenges so many families are feeling. But, the sun will rise tomorrow. It really will! And, many people around the world will awaken and reaffirm their conscious choice to prosper in these tough times. Will you be one making that choice?

Up next: Over the next week, I will be sharing tips...from people I respect immensely...as to specific things we can all do, on a personal basis, to position ourselves to prosper in these times. Tomorrow, a lesson from someone very, very special in my life.

Recession Impact on Retail

2008-11-24T23:21:00.002-05:00

If there is an industry that is taking it on the chin in this downturn, it is retail. Like in most industries, while many are suffering, some are prospering (ala Walmart).

As with other industries, some of those prospering will do so because their market position supports continued business in a downturn. That is not luck...that is being strategically smart! After all, until the most recent extended period of prosperity, the U.S. economy has experienced downturns every 8-10 years. Prudent management will build companies that can prosper in good times or bad times.

Beyond strategically thoughtful market positioning, retailers are long overdue for the kind of re-engineering of their businesses that so many other U.S. industries need. The good times have masked the fact which has long been known by savvy retailers that the industry has many fundamental problems.

For years, easy credit for developers had retailers opening new stores at a rapid clip, with each new store often cannibalizing sales of existing stores. The result was not enough customers to support bloated occupancy costs.

We are overstored in the U.S., especially with internet shopping draining off a steadily increasing share of total retail sales.

But, the fundamental problems of retailing go far beyond being overstored. Changing media habits of consumers has reduced the efficiency of traditional advertising. Most retailers have lost the "fun" element in thier business model. And, many retailers have trained their customers to just wait for sales or coupons.

Most troubling of all, most retailers have been slow to embrace comprehensive customer loyalty programs that would have any of us wanting to keep going back to the same store. Couple this failure with store service experiences that are often void of any evidence of customer appreciation and it is no wonder retailing is in the dumps. For far too long, good times have masked the fundamental problems of this industry.

I remain convinced that 30-50% of the retail chains in this country will not only go bankrupt by February of 2009, but ultimately disappear from the retail scene. That is the bad news.

The good news is that the downturn will foster a new group of winners...retailers who create business models that reflect the changing face of retail.

Business models that will cater to changing consumer buying patterns and that support the company prospering in good times or bad times.

Retailing isn't dieing. Retailing, as we have known it, is what is dieing.

And that is a story line that will play out in industry after industry.

Recession Impact on Automotive Industry

2008-11-22T20:07:00.006-05:00

It doesn't take a genius to see that the automotive industry is being severely impacted by the recession. Many consumers are scared, and consumer credit is as tight as we have seen in decades. As a result, auto sales have plummeted.

The thesis of this series is that companies and individuals should be embracing the downturn...i.e., making the most of the changed circumstances.

So what is the automotive industry doing? Well, at least the (once)Big Three of GM, Ford and Chrysler are off to Washington to tell lawmakers that the Federal Government must bail them out or there will be a catastrophe across the land. Not exactly the kind of thinking that I am suggesting is involved with adjusting for the changed times.

Speaking of not adjusting, the CEO's of the Big Three were discovered to have each flown solo, by private jet, to the Washington (DC) hearings.

What were these three CEO’s thinking? It is precisely this kind of thinking that has me, and many others, believing that the Big Three do not deserve any special treatment. (I come to that conclusion with a very heavy heart for the ripple effect that will impact so many from a bankruptcy filing by any one of the three.)

I love the wisdom of Seth Godin and his recent blog post on What To Do About Detroit is a good example of embracing change in the automotive industry. Supporters of a government bailout will undoubtedly scoff at his mind stretching idea…but, then again, lets all scoff at CEO’s who don't understand the importance of personal role modeling in challenging times.

For a less radical approach to dealing with the challenges of the auto industry, consider Jack and Suzy Welch's recent Business Week column, GM - A Case Against the Bailout.

The point is that more of the same is only going to bring more of the same. Business and executive jets as usual are hardly evidence of adjusting for changed times.

Next up: A look at how the retail industry is responding to the recession.

Recession Impact on Restaurants

2008-11-21T20:43:00.004-05:00

Consumer survey after survey report that one of the areas of discretionary spending that is most often targeted by consumers for reduced spending is restaurants. A perfect industry to test my hypothesis that good businesses can prosper in these tough times....if they will embrace the recession and adjust their way of doing business to take advantage of the downturn.

Now, my consulting work has me traveling a significant portion of the time. As a result, I eat in restaurants much more frequently than most people. I am certainly seeing many restaurants and chains that are being significantly impacted by the downturn. And, most restaurant companies are publicly reporting reduced customer counts and lower average checks.

The deteriorating results are to be expected when chains just continue doing business “as usual.” Consider my experience at a delightful, all you eat salad & pasta bar chain in South Florida.

Recently, I visited one of the restaurants in this chain at 7PM on a Sunday evening. The place was packed! Actually, I should not have been suprised for they have long offered a great value at a fair price. And, as you would expect, the “all you can eat” feature is sure to be attractive in tough times.

After passing through the salad line and being rung up, I (and other guests) faced about a 3 minute wait for tables to open up. Mind you, this was a non-holiday Sunday evening!

Here is one chain that shouldn’t be hurting…in fact it should be taking gobs of business away from casual dining restaurants.

Regretfully for the chain, they were treating things as business as usual. There was no apology or explanation for the wait. Now, 3 minutes is not the end of the world. But, the point is that this restaurant is missing an opportunity to turn their crowds into a plus. Where were the magic words validating my visit “Sorry for the short wait, as you can see people are really responding to our wonderful value meals. Will this table be acceptable for you?”

At no time did anyone thank me for visiting…perhaps tolerable in good times, inexcusable in tough times. And where was my “bounce back” coupon to give me a reason to make my next restaurant visit back to them?

Sadly, this chain…at least on that Sunday night…was doing the same-O…rather than adjusting for the times and capitalizing on the downturn.

Times have changed dramatically and those businesses, in any industry, that don’t quickly adjust are not likely to make it to the point when good times return.

Some restaurants are in sectors and/or locations where failure is almost preordained in these tough times. But, sadly, others are dooming themselves by ignoring the winds of change.

Next up: A look at how the automotive industry is responding to the recession.

Obama Embraces the Recession? Why I Certainly Hope So!

2008-11-16T20:10:00.001-05:00

Set aside politics. What is the mindset of President-elect Barack Obama about the recession?

Last week, in my series on Embracing the Recession, I discussed four possible mindsets: denying the existence of the recession, fearing the recession, accepting the recession, and embracing the recession.

Now I claim no particular insights into the mindset of the President-elect. But, what should we all hope that Barack Obama has a mindset?

How would you feel about President-elect Obama taking Office at such a critical time with a mindset of denying the existence of the recession? I certainly hope that will not be the case!

Or, how would you feel about him taking Office with a mindset of fearing the recession? Do we really want our leader cowering in fear? I certainly don’t!

Or, how would you feel about him taking Office with a mindset of just accepting the recession? That would be painful and I, for one, certainly don’t want that!

What I hope, and expect, is that President-elect Obama is a leader who will embrace the problem and draw upon our country’s strengths and experiences to fashion strategies and tactics that will stop the snowball of the recession and create permanent improvements in our economy and our world-wide competitive position.

Now, President-elect Obama is extremely well spoken and is certainly not someone who needs others to speak for him. But, I was encouraged by the recent statement by his White House chief of staff, Rahm Emanuel, when talking about the economic crisis:

“You don’t ever want a crisis to go to waste; it’s an opportunity to do important things that you would otherwise avoid.”
Our country has many fundamental financial problems that have festered for far too long. Let us hope that President-elect Obama rallies the country around taking the hard medicine needed to reduce our energy dependence, improve our global competitiveness, and to restore global faith in our financial markets.

Embracing the recession is not about being happy that the downturn has occurred. Instead, it is about using the downturn to accomplish what previously might have been thought of as not possible.

I am confident that the President-elect will embrace the recession. Let us hope that enough of our leaders in Congress do likewise.

And on a very personal note, let me hope that you also choose to embrace the recession...to position yourself to prosper in these tough times.

Next up: Over the coming week, I will be sharing examples of companies that are embracing the recession and contrasting these examples with companies - in the same industries - who don’t seem to be stepping up to the plate. First up, a look at how the recession is impacting the restaraunt industry.

Embracing the Recession

2008-11-15T21:02:00.005-05:00

Hopefully, the three previous posts in this series have convinced you that you do not want to be one of those denying the existence of the recession, fearing the recession, or even accepting the recession. Any one of those states of mind will lead you to a place you do not want to be.

I am personally committed to embracing the recession. And, I am equally committed to get my consulting clients, my mentees, and even dear friends to join me in embracing the recession. And likewise, I hope to convince regular readers of this blog...and even you... to embrace the recession.

Now, please don't confuse "embracing" with celebrating. I am not happy to see the devastation that is occurring in companies, in families, and in individuals. I am saddened by the devastation that has begun and will likely continue for quite some time. I am fully expecting to witness a lot of pain…especially from those who choose not to embrace the recession.

Embracing is the act of accepting the reality of the circumstances and drawing on your skills and experience that can be creatively used in the circumstances to fashion winning strategies and tactics.

Embracing the recession is about stepping into the circumstances, rather than running from them.

I am already seeing winners who are stepping into the tough circumstances and adapting their plans and actions to align with the tough times. Over the next week, I will be sharing examples of individuals and companies that are embracing the recession, tailoring new strategies and tactics for the changed times. Individuals and companies that are quickly demonstrating superior results.

What is stopping you from embracing the recession? Are you afraid to be committed to prospering in the face of so many friends, co-workers and neighbors already having accepted the worst? Or, are you just plain too lazy after years of cruising through the easy times?

Up next: Tomorrow, I will share why I believe President-elect Obama is seemingly embracing the recession! And, why all of us ought to hope that he is!!

Accepting the Recession

2008-11-14T20:04:00.003-05:00

The third response to the deepening recession is accepting it.

Accepting things as they are is one of the most common coping mechanisms that we often use to deal with things we don't like. By accepting things as they are, we reduce the fear and anxiety of the circumstance. Thus we reduce the stress from the circumstance.

Many people wander through life accepting their lot in life. Some become almost numb to disappointment by just rationalizing everything with the idea that “it just wasn’t meant to happen (for me).”

Although such an attitude can be helpful in reducing stress, it does little to help one make the most of circumstances. Not happy with your income level….worry not, just accept it. Not happy with the behavior of your children…worry not, just accept it. Not happy with your golf game….worry not, just accept it. Not exactly the approach you see from a winner like Tiger Woods who restructured his swing while at the top of the game in his quest to get even better yet.

So, are you just accepting the personal consequences of the economic downturn?

How far does your acceptance go? Have you accepted you will lose your job, or that your salary will be cut significantly?

If you are a business owner, have you accepted that your revenues will decline precipitously, or…even worse…that your business will fail?

More often than not, we get what we expect in life. We do so, because we adjust our actions to our expectations. And, our actions greatly influence our results. That is why the notion of the self-fulfilling prophecy has so much validity.

What actions are you taking that likely doom you to negative consequences from this downturn?

Up next: Tomorrow, I will cover the fourth...and least common...of the attitudes about the recession, embracing its existence. Yes, "embracing" the recession, an attitude that can help you to be one of those prospering from the downturn.

Fearing the Recession

2008-11-12T11:31:00.002-05:00

In my last post, I shared my views about those who are denying the recession. I see even more people fearing the recession.

And, lets be clear, there is much to potentially fear about this downturn.

I say "potentially" fear as fear is such a debilitating emotion that it must be held in check.
I see so many people, in all walks of life, frozen in fear about the recession. Instead of embracing the recession, they are terror struck.

I have seen this reaction from factory workers, from retail workers, and even from professionals such as lawyers, bankers, and consultants. I have seen it from those much younger than me, people my age, and people much older than me.

Now fear can be a wonderful safety mechanism for us as it can be a catalyst for us to act, such as when our fear triggers our instinct to flee a life threatening situation. But, it also can literally freeze us in our tracks. The latter can incapacitate us, and even can destroy our health...when we live in fear for extended periods of time .

Have fears of the recession and its effects frozen you in your tracks? Are you glued to the TV watching the latest news about the recession, rather than plotting and executing a new course of action?

If -- instead of fearing the existence of the recession -- you embrace its existence 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 third of the common attitudes about the recession, accepting its existence.

Denying the Existence of the Recession

2008-11-10T14:50:00.007-05:00

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.

Embracing the Recession of 2008-2009

2008-11-09T17:01:00.008-05:00

I have just completed an intensive week on the road visiting with clients and counseling partners of my clients. As I had marketing tune-up sessions with high-end lawyers, consultants and investment bankers, I observed a wide range of attitudes and emotions about the recession. The experience stretched my own thinking as to who will prosper in this downturn.

Of course, everybody's situation is unique. Skills, experience, current financial position, current job platform, energy, and adaptability are among the factors that will play a role in how someone will do in the downturn. But, probably most important factor is one’s attitude.

Attitude always plays a very, very important part in how we deal with any situation.

Let me be as clear as I can be. Attitude alone will not rectify every problem situation. But, the right attitude can -- and will -- make a huge difference in any situation.

I have found it useful to think of how entrepreneurs, managers and professionals think about the recession as a spectrum ranging from denial through embracing the recession.

Specifically, I see people as falling into one of four categories with respect to the recession:

1. Denying
2. Fearing
3. Accepting
4. Embracing

In each of my next four pasts this week, I will cover one category of this spectrum of attitudes. For each, I will share some of the behaviors that would suggest that an individual is in a given category. And, I will share how you can move forward along this spectrum to become one of those embracing the recession.

The notion of embracing the recession may, at first blush, strike you as being very strange. But, I hope to show you that embracing the recession is absolutely key to prospering in these tough times.

Are you embracing the recession?

Up next: Tomorrow, we will cover the riskiest of all attitudes about the recession, denying its existence.

Capturing the Right Clients and Customers in this Recession

2008-11-05T23:42:00.001-05:00

These are times that are testing, and will test, the mettle of all business owners and managers. Especially in tough times, there is no easy money to be made, in any industry. But, in most industries, I am seeing new winners emerging very quickly. New winners who are being quick to grasp the changing paradox.

In the world of B-C (businesses selling to consumers), the winners are recognizing that the consumer is being forced to choose necessities over luxury items. Now, obviously there is a continuum on the spectrum between these two extremes, and a continuum that changes constantly as a given consumer’s income changes. For example, the consumer who has traded going to Starbucks for coffee to going to McDonalds for coffee has implicitly decided that Starbucks is a luxury item, but coffee is…for the time being….still a necessity. Another consumer, may decide that coffee itself is a luxury and give up drinking coffee entirely.

In the world of B-B (businesses selling to businesses), the winners are recognizing that their clients are in survival mode and are totally focused on helping their client to survive and prosper in these tough times.

Any businesses with an attitude that the world revolves around their needs is ripe for quickly becoming extinct.
As is often the case with tough times, one needs to quickly get back to the basics. Serve the needs of your customers or clients well and you will be able to survive, thrive and even prosper in tough times.

You don’t have to take my word for it…you can already see it happening in the markets, both consumer and industrial. Which is why these really can be great times for those with the agility to embrace the changing market conditions.

Taking the Right Business from Your Competitors

2008-11-04T23:11:00.003-05:00

The quest for taking business from your competitors must be pursued expeditiously, but with proper caution.

Because of the times, much of the business of your competitors is not business you should take. In fact, that which you get from competitors most easily is, many times, their worst business.

Customers or clients taken from competitors who will not pay a fair price for your goods or services will only increase your challenges.

Consider, for example, the long time client of a competing law firm who suddenly finds you attractive. Is this a client who has sound reasons for changing to your firm…or might they just be looking for an opportunity to pick a fight with their existing firm so as to justify (in their minds) walking away from what they owe their existing law firm?

Or, is this a client which is rebelling against your competitor setting payment terms of the kind that you should be demanding in these times of economic uncertainty?

The quest to stabilize revenue declines, due to the downturn, must never overtake sound business judgment!

These days, almost every customer or client, which is not paying C.O.D., is a risk. Payment risk must be very, very carefully factored into your new client acquisition startegies. In these times where "cash is king," payment terms must be carefully established and then implemented.

Focus your new business generation activities on the very best clients of your competitors. And, do not lose sight of the important goal of being timely paid for goods delivered or services rendered.

Up Next: How to Capture Your Competitors’ Best Clients.

Taking Business from Your Competitors in a Downturn

2008-11-03T22:22:00.002-05:00

Sure the economy has gone soft. In industry after industry, total industry demand is declining. For some industries, like -- for example -- the new housing industry, the decline is precipitous. But, for many, many industries, total industry demand is currently off by "only" 5-10%.

Now if you keep using your playbook from the good times (i.e., the same strategies and tactics), it is highly likely that you will experience a revenue decline of 5-10%, if not more. And for many industries, a loss of 5-10% in revenues can easily swing a profitable business to a money losing business. Ouch!

However, unless you have a significant market share (say above 50%), then a decline in total industry revenues need not translate into a loss of equal amount in your sales. It is time to take market share away from your competitors. Right NOW!

If your life depended on it, I fully expect most of you owning or managing a business could identify specific ways to take business away from competitors. Well your life may not depend on doing so, but the economic life of your business may very well depend on it!

The good news is that some competitors will not change their playbook out of a belief that this is just another media overreaction (it is not!). Others will not change because they are expecting (or at least hoping) that the downturn will quickly pass (it will not.) Others will be wedded to the strategies and tactics that made them successful and will be unwilling to make necessary changes. Others will be too kind hearted and unwilling to make the hard decisions. And, others will be ill equipped to devise winning strategies and tactics for these whitewater times.

The bad news is that some competitors will make changes, including some that could be just plain dumb…like lowering selling price to below their marginal costs. You don’t have to out hustle all your competitors…you need to out hustle enough to grow market share, profitably, in the face of shrinking industry demand.

In many industries, the winners have already started hustling more. Are you? Have you changed your strategies and tactics to fully reflect the downturn? Are you aggressively implementing your new plans? Do all of your employees understand the importance of having a much greater sense of urgency in implementing your plan? Are you, and your employees, embracing the needed changes, or fighting them?

Or have you resigned yourself that a market contraction is the death knell for your company?

The choice is yours!

Abundant Opportunities in the Recession of 2008 - 2009

2008-11-02T22:45:00.005-05:00

Last week, I shared the six reasons why I believe the 2008-2009 recession will be longer and deeper than any of us hope, than the government is now publicly stating, and most economists are currently predicting.

Prophet of gloom? Hardly!

I believe that there are abundant opportunities to prosper, both financially and developmentally, during this recession. Planning how to do so must begin with a realistic assessment of the situation, hence the week-long series devoted to a situational assessment.

The challenge, for all of us, is that the actions that brought us success over the last decade are unlikely to bring us success in a radically different situation.

Financially, I believe prosperity will come to those who are involved with businesses that

1) provide goods or services that are specifically tailored to the downturn, or

2) provide other goods or services in a manner such that they are materially different than that provided by competitors.

Examples of the former would be businesses that deal with foreclosed homes, repossessed autos, defaulted loans, etc. etc.

Examples of the latter would be businesses that provide customers or clients with exceptional value. Consider, for example, the casual dining restaurant sector which is having extreme difficulties. Well, tonight I ate at an “all you can eat” salad/pasta bar that was jam packed. Literally, there was a five minute wait to be shown to your seat…on a Sunday evening, no less. For comparison sake, after dinner, I walked next door to one of the big name casual dining traditional restaurants and it had only a handful of customers. Ouch!

In the last decade, business success was much easier than it is likely to be in the next two to five years. This downturn will test the skills of all owners and managers. In a growing market, differentiation is important. In a declining market, meaningful differentiation is absolutely imperative.

Those owners and managers who can break away from past success patterns and plan and implement strategies attuned to today’s environment will do well. Perhaps not as well as in recent years, but still well.

The greatest challenge will be those whose business model is difficult to change quickly because of the nature of their industry. Executives in those industries will be severely tested.

Up Next: Over the coming week, I will be sharing specific strategies for tuning your business to win in this new environment. Tomorrow, I will address taking business from your competitors in a downturn.

The U.S. Recession Shows Signs of Becoming a Truly Global Recession

2008-11-01T20:31:00.006-04:00

This is the final post in a six part series, running this week, on why you can expect that the downturn will be deeper and longer than currently expected by most. Over the past week, I have shared why I have come to this conclusion. Here is Reason #6.

The problems within the U.S. economy that need to be solved in order to slow the accelerating snowball and begin the return to a healthier economy are significant, in and by themselves. However, making the problems much worse is that the malaise attacking our economy has gone global.

On a daily basis, we are learning that more and more countries around the world are experiencing a recession. The economies of China, Japan and Korea have weakened. So too with countries throughout Europe. Russia’s economy has slowed. And even the economies of the oil rich countries of the Middle East are experiencing some discomfort as reduced demand and lower prices for oil occurs.

As if the U.S. economic problems were not difficult enough to fix, now the repair must play out on a world stage where consensus on any issue is always very, very challenging.

Those who say the U.S. government has more tools to use in avoiding a downturn of the magnitude of the Great Depression seemingly ignore that the U.S. does not control the world economy. We have become a country, like most, that is inextricably woven into the fabric of a global economy.

Further exacerbating the complexity of that problem is the specter of worldwide deflation…an economic force every bit as challenging as inflation…if not more so.

And even if all the economic policymakers were in agreement as to what needs to be done to strengthen the global economy, would respective political agenda’s foster consensus implementation? On a timely basis? I wish I could be more optimistic such would be the case.

So there you have it, six reasons why I believe the economic downturn will be deeper and longer than most are currently expecting. Deeper and longer than any downturn since the Great Depression. Regretfully.

I hope I am very wrong!

The Ripple Effect is Accelerating the Downturn

2008-10-31T19:47:00.004-04:00

This is the fifth of a six part series, running this week, on why you can expect that the downturn will be deeper and longer than currently expected by most. Each day, I will post about one of the six reasons why I have come to this conclusion. Here is Reason #5.

I spend much of my working time out in the market(s) assessing developments for my clients. In recent months, I am witnessing that industry after industry is being impacted by the initial problems in the housing industry. Like ripples emanating from a pebble entering the water, or dominoes tumbling the next, industry after industry is being impacted.

The housing problem has devastated the financial industry. The problems of the financial industry has in turn squeezed consumers with the result being retail, tourism, automotive industries, and many others are being adversely impacted. Now, these problems are spreading to a wide variety of manufacturing industries. And now they are spreading to service business where companies in all kinds of industries are demanding significant price concessions from service providers. In the U.S., we now have a multitude of industries in deep pain…many more industries than in recent recessions. Which is why I believe that this downturn will be deeper and longer than currently expected by most.

Up Next: The final of the six reasons for pessimism about the duration and depth of the downturn; The U.S. Recession Shows Signs of Becoming a Truly Global Recession. Follow this series all week as I layout one of the six reasons every day. And, remember that although I believe that these are tough times, I believe that…with the right actions…the agile can prosper. Stay tuned to next week when each daily post will address specific ways businesses can prosper in these tough times.

Problems Causing the Recession Are Complex

2008-10-30T19:38:00.008-04:00

This is the fourth of a six part series, running this week, on why you can expect that the downturn will be deeper and longer than currently expected by most. Each day, I will post about one of the six reasons why I have come to this conclusion. Here is Reason #4.

Many prognosticators on the likely depth and duration of the downturn hypothesize that the downturn cannot reach the depths of the Great Depression because of all the tools that the government now has to slow the downturn. Well, as covered in my last post, I am not encouraged by the results of the turnaround efforts to-date.

My pessimism as to the likely depth and duration of the downturn…or should I say my “realism”…is based, in part, on what I believe to be the complexity of this downturn. Let’s take just one problem, of the many problems, as an example: How do we fix the housing problem?

Does the government just indemnify the holders of toxic paper. If so, what about those who have lost money along the line from this toxic paper, i.e, past holders of the toxic paper? Or, is this to be like musical chairs and whomever has the problem when the government finally acts, gets bailed out?

Or, go down a level and focus on the challenges of dealing with the ultimate borrowers. David Leonhardt of the NYTimes wrote a very thoughtful article on the conundrum of dealing with this group in his October 22 piece. His construct for analyzing the problem is to divide those with housing loan (mortgage) problems into two groups: (1) those who may not be able make payments, and (2) those who have the cash flow to make payments but question the sanity of continuing to make payments on a property where the mortgage debt far exceeds the fair market value of the property. Do both deserve to be bailed out? What do we do with those who have recently lost their homes? Do we just say “sorry, you weren’t in the chair when the music stopped.”

After studying just this one problem, i.e., that of the housing market, Leonhardt ends his analysis and article with this sage conclusion:

“But this financial crisis is not going to be solved by a magic bullet. It is going to require a smorgasbord of programs – some aimed at homeowners in trouble, some aimed at the credit market, some aimed at the job market – as well as a whole lot of time and patience.” (emphasis added)
The more the federal government involves themselves in direct bailouts, whether at the company level or the individual level, the more the risk of disparate treatment. Disparate treatment means debate, and lobbying, and other actions that introduce more risk of yet more delay and more unfairness.

And, this is true in many other industries beyond housing. Already there are screams from some financial institutions that the bailout efforts are favoring a chosen few. You have the auto industry clamoring for direct bailout of their industry. Are they really more deserving than say the restaurant industry? Or the appliance industry? Or???

The policy implications of the turnaround moves that need to be expeditiously made are immense. There will be fortunes made and lost based on the decisions made. And, where there is so much at stake, the risk for poor judgment, or even corrupted judgment, increases.

I am not an economist. I am not a social scientist. And, I am certainly not a politician. What I know is turnarounds. And, from my vantage point, this is the most difficult turnaround since the Great Depression. And that leads me to conclude that the downturn will be deep and relatively long in duration. And, I get absolutely no satisfaction in reaching that conclusion.

Up Next: The fifth of the six reasons for pessimism about the duration and depth of the downturn; The Ripple Effect is Acceleration the Downturn. Follow this series all week as I layout one of the six reasons every day. And, remember that although I believe that these are tough times, I believe that…with the right actions…the agile can prosper. Stay tuned to next week when each daily post will address specific ways businesses can prosper in these tough times.

The 2008 Election Break in Recession Turnaround Efforts

2008-10-29T21:13:00.004-04:00

This is the third of a six part series, running this week, on why you can expect that the downturn will be deeper and longer than currently expected by most. Each day, I will post about one of the six reasons why I have come to this conclusion. Here is Reason #3.

Turnarounds are all tough stuff. And the turnaround of the U.S. economy, faced by our government, is as large and complex as I have ever seen. By far!

To stop the snowball effect of any distressed situation takes an intense effort by a group experienced and skilled in the nuances of turnarounds. The intensity of the effort needed for success cannot be overstated. Because of the snowball effect, the natural pattern is for more and more things to go wrong.

Well, speaking of going wrong….here we are at full crisis mode and voila we interrupt this for an election. An election that will result in a new President, many changes in Congress, and a whole new administration.

Even if some of the key turnaround players are retained in an unusual bi-partisan collaborative effort, our federal government is, through no one’s fault, about to have a massive change of players.

So here we have a turnaround effort that is already struggling to get traction about to enter into a period of change of hands. Ouch!
The "hands" scheduled to leave Washington in January have to be focused on their own personal situation especially with job prospects so generally poor. The incoming hands will be looking to get situated and can be expected to be cautious about making decisions for which they can later be criticized. That is a lot of focus on other than the economic crisis. More ouch!

Now, there is no one to blame for this situation. It is not anybody’s fault that the economic crisis coincided with a Presidential election. This is just the circumstance. And, a circumstance that must be factored into any assessment as to how deep and how long this downturn will be.

Turnarounds seldom, if ever, happen in a perfect situation. That is, in part, why they are so difficult to effect. That is why the snowball of problems so often continues to pick up speed notwithstanding well intentioned efforts by executives, and restructuring professionals.

And, that is why this long time restructuring professional believes the downturn will, regretfully, be deeper than most currently expect and longer in duration. I wish it were not so…and I truly hope to be wrong. Very wrong.

Up Next: The fourth of the six reasons for pessimism about the duration and depth of the downturn; Problems Causing the Recession Are Complex. Follow this series all week as I layout one of the six reasons every day. And, remember that although I believe that these are tough times, I believe that…with the right actions…the agile can prosper. Stay tuned to next week when each daily post will address specific ways businesses can prosper in these tough times.

Recession Turnaround Efforts Not Yet Getting Real Traction

2008-10-28T22:41:00.006-04:00

This is the second of a six part series, running this week, on why you can expect that the downturn will be deeper and longer than currently expected by most. Each day, I will post about one of the six reasons why I have come to this conclusion. Here is Reason #2.

For 20+ years, I was on the front lines of restructuring companies of all sizes, in a plethora of industries. And, for the last 10+ years, I have counseled leaders in the Restructuring industry as they have worked to restructure companies throughout the country. I have seen 100’s of restructurings, up close and as they say “personal” from all different positions. I have been a lender, represented creditors, assisted trustees, and even been the executive in the hot seat making the operating decisions. And, if there is one thing of which I am certain as a result of all this experience with restructurings is that

turnaround’s are very, very difficult!

The problems facing our economy are many, many times more complex than the largest of my restructuring assignments. And, so I have to conclude that this turnaround will be difficult and protracted.

Turnarounds are difficult for many reasons, not the least of which is the snowball effect. Notwithstanding the best of efforts, more often than not the snowball of problems picks up speed before it can be stopped, or even significantly slowed .

I want to believe the Federal Reserve and the Treasury Department are making progress. And, I am sure they are. But from my vantage point…and that certainly isn’t on the very front lines…it sure seems like the snowball is picking up speed.

Turnarounds call for decisive action, and implementing new processes by the government is almost, by definition, likely to be slow. Treasury won congressional approval for the $700 million rescue plan on October 3. But three weeks later, an asset manager has not yet been put in place. Certainly not slow by government standards. But, in the world of turnarounds, this is glacial speed, even as the snowball just keeps rolling faster downhill.

My pessimism about the likely duration and depth of the economic downturn is, in part, based on my conclusion that to date, the turnaround efforts are not yet getting real traction.

That doesn’t mean that those on the front lines are doing a bad job. Or will not eventually get traction. But, after three months of intensive action, it certainly appears that the snowball is still gathering speed.

Now, I have been on the front lines where adrenalin has you hoping and expecting that your actions will soon take hold. Many a turnaround professional has dreamed of the quick turnaround. But, seldom…very seldom…is that what happens. Turnarounds are tough stuff! And, this may well turn out to be one of the toughest of all time!!

Up Next: The third of the six reasons for pessimism about the duration and depth of the downturn; The 2008 Election Break in Recession Turnaround Efforts . Follow this series all week as I layout one of the six reasons every day. And, remember that although I believe that these are tough times, I believe that…with the right actions…the agile can prosper. Stay tuned to next week when each daily post will address specific ways businesses can prosper in these tough times.

The Hole is Much Deeper Than Currently Acknowledged for the 2008-2009 Recession

2008-10-27T09:40:00.005-04:00

This is the first of a six part series, running this week, on why you can expect that the downturn will be deeper and longer than currently expected by most. Each day, I will post about one of the six reasons I have come to this conclusion. Here is Reason #1.

Any assessment of how long this downturn will last must begin with a realistic assessment of the starting point. That is, how bad is the current situation?

Most economists believe that downturns are a necessary "evil" for adjusting an economy. For reducing inflation, or for dealing with any other fundamental economic problem. Downturns are like draining the pus from a boil, or…in economic terms…curing the problems coming from a bubble.

So...to begin to understand how long this downturn will last and how deep it will go, one must first understand what is the problem that needs to be worked out and how severe is it.

Many point to housing prices as the bubble and the fundamental that must be worked out. I agree there is, indeed, a housing bubble that needs to be worked out. But, I believe that the Recession of 2008-2009 will go down as a poster child for problems with our credit markets. Those problems are unfolding, and will likely unfold further, in the coming months.

Much has been made, of late, of the problems of U.S. commercial banks and investment banks. But, I believe that the problems run deep throughout the financial services sector. AIG was just the tip of the iceberg of distressed insurance companies. Hedge funds are likely to be the next wave of distressed becoming a front and center problem, and it will not be just a handful. Mutual funds will be next as their values are ravaged by the losses on their investments in the financial services sector. And, the list will go on. And on.

The core problem is toxic paper. Trillions of dollars of it. Paper in the form of obligations, i.e., debts, for which there is no responsible borrower and/or adequate collateral.

Securitization made it possible for an originator to make a loan and to sell it off with little or even no recourse. Quite a change from days long since gone when as a banker I made a loan, I had to collect the loan. My career success depended on being able to collect the loan without any loss of principal. (What a novel concept that is in recent years.)

And, many loans since the advent of securitization were made with questionable borrowers, or on an effective non-recourse or limited recourse basis (as with equity sponsors who did not have to guarantee the debt of their portfolio companies).

The toxic paper problem has been exacerbated by all manner of creative parsing of the risks through many varieties of derivative products, thereby creating more toxic paper and ultimately piling toxic paper on toxic paper.

Now if the toxic paper problem is not enough, the problem has been compounded by the high leverage that has become pervasive in all manner of entities in our economy, from consumers, to businesses to financial institutions. At the 20X leverage that some financial intermediaries have been utilizing, even a 5% decline in collateral value means the equity cushion is effectively wiped out. At 10X leverage, a 10% decline in collateral means the equity cushion is wiped out. And, we all know that collateral value in homes, as well as with many other assets, are off by more than 10%. In many cases, by much, much more than 10%!

Now it is perfectly understandable why regulators are not standing on the mountain top and officially announcing that many of our financial institutions and intermediaries are insolvent using any measure of fair market valuation of assets. That is news that the financial markets do not need to hear from an official source. But, as every day, the regulators report on the need to deal with yet another troubled financial entity, it becomes ever clearer just how many financial institutions are insolvent. And, just how deep the hole is. It is very, very deep.

End of the world deep? Of course not! But quickly fixable? Not likely!

Up Next: The second of the six reasons; Recession Turnaround Efforts Not Yet Getting Real Traction Follow this series all week as I address one of the six reasons every day. And, remember that although I believe that tough times will be with us for quite some time, I also believe that with the right actions the agile can prosper.

Why The 2008 Recession Will Be Deeper and Longer than Currently Expected

2008-10-26T17:09:00.007-04:00

My MBA in Finance and years working in, and alongside, the banking industry hardly qualifies me as some economic guru or grand wizard of forecasting. However, my clients expect me to guide them as to business conditions and resulting strategies for attaining and sustaining market leadership. So...every day I am forced to try to make sense of business conditions, in markets across the country.

Now, let me start by saying that I wish I could be an optimist about the overall economy. I would be delighted to be able to join those who make the case for how things will bounce back as soon as a new President is in office. I respect those that want you to believe that much improved policy making will avoid anything like the Great Depression, a view recently widely reported as being espoused by Olivier Blanchard, the respected and very thoughful chief economist of the International Monetary Fund.

Such optimism seems kindly as it has the potential to bolster consumer and executive confidence. But, such optimism really can be quite cruel if people are not adjusting their business and/or personal strategies and tactics to reflect the evidence I see that this is going to be a deeper and longer recession than we all hope it might be.

I don’t know precisely how long the economic downturn will last. But, I do know that people who don’t trim their sails to prosper in a down economy are highly likely to experience a ton of pain.
Seems far better to position oneself to prosper in a tough economy than to keep running one's business and personal affairs as if we were still in the good times.

After all, keep in mind that if you trim your sails for tough times, you can always re-trim when good times eventually come back. And, they will eventually come back. Of that I am sure.

Please, please do not confuse my pessimism about prospects for the overall economy with my staunch belief that companies and people can prosper in tough times. Monetary fortunes have been made in past downturns and will be made in this downturn. And, at least for me, there is more to prosperity than just economic success. There are greater opportunities...than at any time in the last fifty years...for people to make a real difference in the lives of others, by being a beacon of light in these tough times.

Ivan Misner, in his terrific blog – Networking Now, recently captured what I believe to be the essence of the opportunity for those who believe in self-determination.” If you tell yourself, ‘I can’t succeed in this economic downturn,’ you’ll very likely prove yourself correct. But if, instead, you focus on specific solutions to the particular issues, challenges and opportunities of your business, your niche market, your current and prospective customers . . . you are very likely to enjoy more success than all the naysayers put together would have predicted.”

Although I see some people paralyzed by the fear that Misner talks about in his post, I see even more people who are delaying taking prudent steps out of their belief/hope that "this too will soon pass." And, that is why I want to share, over the coming week, six reasons why I believe the 2008 recession will extend well into 2009, and that tough times will last even longer.

My hope is that every reader will, at minimum, accept that some of my reasons have enough merit to suggest that is prudent to adjust strategies and tactics to reflect the likelihood that tough times will be with us for quite awhile. And, to reflect the likelihood that times will get worse before they start to get better.

Up Next: The first of the six reasons; The Hole is Much Deeper Than Currently Acknowledged. Follow this series all week as I lay out one of the six reasons every day.