Water Cooler Conversations

Written by Pat Perry
President, ERC 

Well, we all got what we were not wishing for – a down economy, layoffs, and a deep recession.  We can all give ourselves a collective “pat on the back” for once again repeating history right on schedule.  It is ironic that the fear of job, business and financial losses caused many reactionary decisions over the past year that resulted in job, business and financial losses.

A quote attributed to a local business person from last week’s newspaper summed it all up perfectly - “We do not plan on making any new investments until the economy gets better”. 

Hello…?

That is exactly the thinking that helps keep this mess going. When are we going to learn?

So many people are holding on to their money and making cautious decisions, waiting for someone else to get the economy rolling.  Seems like an awful lot of people ran for the hills this past year and they are nowhere to be found today. 

The fear-based behaviors exhibited over the past year remind me of some adults taking a dip at the local pool.  They wade cautiously until they become accustomed to the pool temperature.  They do this knowing full well that they would incur less “pain” by just jumping in – yet we go against our better judgment, and take a too long of a time to enjoy a good swim.

You see where fear got our economy – clearly in the dumpers.  Fear based decisions are not a good tactic and never have been in the history of our country.  Perhaps it is time to try a truly
America strategy – creative, innovative and courage based decisions regardless of economic conditions.

Many “experts” believe we have hit bottom and will recover slowly over the next several years.  They are probably right given human nature. 

We love prosperity but seem to be afraid of doing the things necessary to get and stay there.   Go figure.

Written by Pat Perry
President, ERC 

Many moons ago, I spent considerable time in
Southern California.  Surfing is very big in that area and I made friends with a few surfers.  They have an interesting perspective on life to say the least.

I vividly remember a conversation one evening with one of the local surfers who had won some regional competitions and was regarded as one of the best athletes in San Diego.  He was imparting his “surfer wisdom” to me, helping me understand what it was like to master the art of catching a big wave.  I asked him if he was ever concerned about sharks, sharp coral reef, etc.  “No, man”, he replied.  He continued, “but I am always concerned about the second wave”. 

“Second Wave”, I asked.

“Yea, if you wipe out, you have to watch out for the next wave.  If you don’t watch what you are doing, that’s the one that can take you down.” he replied.  Then about a minute later, without any provocation, he stared at me and repeated his “sage” advice, “you gotta watch that second wave dude - that’s the one that’ll kill ya.”  An interesting conversation with an interesting guy.

So what does this have to do with anything -  everything actually.

Over the past year, your business has either gotten badly hit with the “first wave” (a tough economy), you are riding it out or just managing to stay afloat.  Regardless, it’s the “second wave” you will need to watch – top employees leaving some organizations in “waves”.  They will leave a number of poorly managed organizations when times get better and the job landscape changes significantly.  These employees are currently watching how their employers respond to the recession. Are their employers’ reactive and making poor decisions relative to the business and their workforce or are they being proactive and making the most out of a challenging situation?

Organizational choices made during the recession have far reaching implications down the road.  The smart organizations are trying to make all the right moves now, recognizing that in the not to distant future they will need their top talent to ride the next economic wave up.  Well run organizations will be positioned to make the most out of an economic upturn and be an attractive workplace for these top performing employees in exodus of poorly managed companies.

I really believe that one day many executives will look back at this period of time with regret – being reactive rather than being proactive and seizing the many opportunities to make the most of a challenging situation.  They are managing in fear, paralyzing themselves and their organizations.

Bold, decisive moves are needed now.  There is no better time.  Time is ticking and this economy will improve…and…when it does, the organizations staffed with top people are going to zoom ahead of their competition. They are getting ready right now. 

Riding the first wave is critical to being able to catch the second one.  My surfer friend would agree and would provide a patented  “nice ride dude” for riding the wave properly.

Surf’s up.