Are You a Dinosaur?

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

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

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

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.