Stephen H Baum Leadership

We took a hiatus from the blogosphere, but we are back. There is simply too much that demands comment and too much to share from our frequent conversations with business owners and CEOs.

It is still not clear to my community that the stimulus package will stimulate any time soon. After our monthly group meeting this week, I will report our members’ current time horizon for recovery. However, for now most of the for-profits are still reducing capacity (more than just cutting costs), continuing outsourcing, yet capitalizing on opportunities to acquire key talent (individually or an earn-out of a distressed company).

And most have also taken a page from Obama — grace and calm under duress. One of the biggest challenges has been to help managers and employees understand the tough choices being made without instilling panic. This has required frequent communication, making the CEO’s thinking visible and conducting a real education effort about how the cash flow and P&L work when demand drops.

Most of the CEOs in our peer advisory group are far better connected (with bankers, economists, other CEOs) than those within the company). The education effort includes compelling stories and insights from such contacts.

That’s my view. What’s yours?