President & CEO Confidence Levels

As I observe how most corporate leadership is performing in our economy, concerns arise. Whether it's worry over the stock market, the government, or too much or too little bailout, our consumer and corporate confidence is at an all time low. Here's what I see many executives wanting to do:

1) Survive - live to fight another day; wait for stability
2) Protect cash - spend nothing unless it's direct expense or generates revenue
3) Take few risks - protect instead of create
4) Make no changes - the known is less stressful than the unknown
5) Attack expense - increase profits by cutting costs, and not growing revenue
6) Grow only the short term - if results are immediate, do it; if not, don't

Let's look at each of these with a bit of analysis:

1) Survival to me means we hold the status quo; we don't rock the boat, we wait for a less stormy sea. We pick a better time. This may be fine for the here and now, but hunkering down with a low profile is seldom the right thing to do in the longer run. We miss opportunities and we lose by wasting them.

2) Protecting cash is one of the most prudent things we can do in the short run. However, when we hit bottom and start recovering, we need to aggressively invest it. The return will be geometric because growth has been stuffed under the burden of our worry for so long. Are we at the low point now? I think we are very close.

3) Taking few or no risks does not mean we are static, but rather that we are actually back sliding. How did our organizations get to where they are now? Not by doing nothing. Again, this can work when used sparingly, but not with a steady diet. The trick is to do your homework, take well calculated risks, and reap the rewards.

4) Failing to change that which is broken is fatal. When we recognize policies, procedures, or routines that are flawed, we must take action. We cannot pretend that they don't exist. Our people see them too, and are demotivated when change doesn't happen. Fix it and learn. If it's still broken, then fix it again. Instill courage; that's what leaders do.

5) Cutting expense is another thing we must do in tough times. However, when we don't also invest in future growth, our folks may think there won't be much of a future. Morale continues to suffer. We again miss the opportunity to make money to offset our losses. We are growing, or we are contracting. Making mistakes of commission, rather than omission serves us so much better.

6) Living only for the near term can be short sighted, even if one's intentions are good. It can miss the solid, well planned things that make living worthwhile. Again, adjusting our sights higher and longer is easier as we approach the bottom, but I see some failing to act now, that will cost the company in the longer run. Continue to invest in your people and your customers. The preparation for future success starts now.

In the next article, we will look at the Sales Force and see how we might bridge the action gap on this list of leadership traits.