Tuesday, October 13, 2009

Survival – Transferring the lessons of a troubled economy to an emerging economy

We are going to be bold and pronounce the end of the recession and the beginning of an emerging economy. Signs from retail sales to the stock market whisper that the worst is over and we are on the road to recovery. I even had a friend predict that 2010 is going to be a big economic growth year! Although that may be a bit too optimistic, we feel confident writing that the economy is beginning to emerge from the worst of the recession.

Throughout the recession, people have scurried to adjust to the risks and/or realities of unemployment, less credit to maneuver the tight times, and fears and frustrations of uncertainty. Some have done better than others. So, as we look to a brighter future we have to ask what we have learned from this experience and how do those lessons translate to safer, more stable, times.

In many ways the recession was a gift to remind us of some of the fundamental truths that had eluded us during the tidal wave of economic growth that preceded it. As we emerge from the recession, these fundamental truths should stay a part of our every day consciousness.

1. Live within your means and prepare for a rainy day. The fundamental budgeting principles of spending less than we make and saving enough money to cover at least six months of expenses are still correct. During the pre-recession period we relied heavily on debt to help us live outside our means and we relied on the ever increasing value of our homes as an investment – even using our homes as a bank (reverse mortgages, refinancing, etc). Getting back to more conservative spending and saving is a smart path regardless of the economy.

2. Loyalty makes sense. Blind loyalty is just plain stupid. You are part of the success of your company so being loyal to the company is good, but it does not mean you should ignore warning signs of tough times or outside opportunities that support you and your long-term goals. Your company needs you, but they will live without you, if they need to do so. Can you say the same?

3. Never let your career path get stalled. Everyone knows that before making a move to a new employer a lot of reflection should take place. Quick, unplanned moves can get you in to positions that don’t fit and alienate employers who did. But, staying with a company should also require reflection. Even if you have never had a thought of leaving and you think you are with the perfect place, you should regularly review your role with the company, where you career is heading, what skills you need to add to stay in touch with the needs of your industry and how you can leverage your role in the company. Ignoring your own professional growth can leave you less marketable in good and bad economies.

4. Be a squeaky wheel when it makes sense, but don’t lay your body in the way of progress. It is important to be alert to ways to help your company do things more effectively, efficiently and in line with its mission. In tough times, that kind of smart thinking can insure your position. Finding appropriate ways and times to express those opinions is important. It is also equally important to know when your opinion has been heard and is not the way the company is going. Continuing to throw yourself in the way of progress or digging in your heels when change comes your way is detrimental for you, your employer and your colleagues.

These are just a few truths to consider. For fuller explanations, more truths, and more tips, stay tuned for our upcoming series on this topic!







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