Let's Get It Right This Time
how to operate in a rising economy

Looks like it's 1998 all over again. The economy seems to be rising and people are working hard not to be overly optimistic. The employment rate has not taken off yet, but several other indicators show that 2004 and beyond could very likely be a prosperous period.

The question is, "What are you going to do about it?"

Here are some suggestions on how to deal with a rising economy, mainly based on how poorly we collectively handled it from 1998 - 2001.

Technology Supports Acceleration, It Doesn't Create It
The rise of the internet fooled a lot of people back in 1998. They thought that creating a company with .com in it guaranteed them a financial safety net. The collapse of the dot-com phenomenon caused a lot of people to run from technology. Both extremes were ill-founded. Technology, created well and used effectively, definitely plays an important role in supporting the acceleration of business success. Today I can write my issue of this e-newsletter and tomorrow it goes out to hundreds and hundreds of subscribers. That's support! E-Bay has become a monster success because of its ability to leverage technology. The key here is that technology is a supporter of acceleration, not a creator of acceleration. The technology does not determine what is of value to other people, nor does it determine how best to use itself. Invest in technology, use it wisely, but understand its role. It is part of your support staff, not your strategic guide or implementor.

Apply Your Passions and Talents, Don't Chase Stock Illusions
Sadly, many people left jobs they enjoyed back in 1998 - 2000 timeframe to jump on the dot-com hayride. Unfortunately, by 2001 many of those jobs went haywire. Be careful this time. A great career is built on applying your talents, values and passions toward work that you find to be purposeful and rewarding. I could expound on that statement, but for the most part that pretty well covers what it takes. Great careers are ruined when people chase the latest "hot" job, even though it doesn't fit their values, passions or talents. All that job chasing reminded me of the original "fool's gold" chase back in the late 1800s when prospectors gave up their life savings to search for gold.

Ask yourself five questions,

1. What values do I want guiding my behaviors?
2. What am I good at doing?
3. What do I have passion for doing?
4. What is the minimum income I need to earn?
5. What line of work allows me to feel purposeful and fulfilled?

Write down your answers and make sure that any job you take fits within those parameters, not the "promise" of potential stock returns.

Invest Wisely, Leverage Low Interest Rates
I distinctly remember in the summer of 2000 an article about the rise in yacht sales and luxury automobiles. Apparently, people really needed those yachts and Mercedes more than they had ever realized. Remember all the money that was spent on December 31, 1999? A lot of cash flew out the window that night. I'm all for investing wisely, especially when you gain an appreciable asset like a new home at unbelievably low interest rates. The key is to think through your spending and make sure that you will still feel it's a good investment when you wake up the next day.

Hire For The Long-Term, Not The Quick-Fix
In the mad dash to get smart people on board, corporations threw everything but the kitchen sink to attract and retain employees. In this mad dash, little attention was paid to whether or not the employees' value system matched up with the desired values in the organization. The attitude was, "There's a lot of money to be made right now, and we need people that can do certain things." Just a few years later, the employees either spurned the organization for brighter pastures or were fired for lack of business. Who exactly won in that transaction?

When you hire, make sure your hires pass the ten-year test. That is, if you had to keep these people for ten years, would your organization and its customers be better or worse off than they are right now?

Good times are a comin'! Let's be sure to handle them better than we did the last time.

Republishing Articles

Each month my e-newsletter gets republished in approximately 20 blogs, on-line publications, and internal publications for businesses, universities, and not-for-profit organizations. If you would like to republish all or part of my monthly articles, please send me an e-mail at dan@thecoughlincompany.com with "Republishing Article" in the subject heading. I will send you the article in a word document. All I ask is that you include my name as the author of the article and a short paragraph at the end of the article about me with a link to my website.

Take care and have a great month!

Dan Coughlin

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