These are very difficult and challenging times. Quite possibly these are unique times and that means that there is no pattern to follow. It does not appear that this is just a normal and historical business cycle. The standard and predictable cycle where there is an economic slowdown soon to be followed by an economic recovery. It is difficult to define what actually is going on but it does not follow any historic pattern.

There are very good reasons as to why this current economic cycle is different than any cycle previously seen. The most prominent reason is that the playing field has been tilted. That is, many companies have misrepresented their balance sheets making it very difficult to understand the true financial position of some companies.  This has caused a crisis of credibility, which when combined with excessively large corporate and personal debt is causing the current economic malaise.

Now is the time when competent, effective, and imaginative management must emerge. Unfortunately there is little evidence of such management emerging. The predictable management actions are occurring, as they should be. The downsizing of companies and actions to reduce debt levels, by a variety of means, are well advanced. These are necessary actions but cannot be defined as imaginative.

There is a search under way to find actions to improve the profitability at most companies. Management in too many cases must be seen to be busy, and there is much to do, so they should be busy but too little is being done. It may be that management is substituting new thought and real analysis for being in motion.

Being in motion is very comforting and makes the participants feel important. Holding and attending too many meetings is part of being in motion. By visiting all or many of the locations of the company is being in motion. By being outside the office frequently for a variety or reasons is being in motion.  All of this motion consumes time and gives the appearance of immediate and decisive action. However there may be nothing new occurring but rather the same old plan, at a time when new plans are mandatory, but everyone is busy. This may be a good performance, good theatre, but may do little to assist a company is in need of strong management and a new direction.

It is a time when appearances have become more valuable than reality, which is a mistake.  The true value of management today may be in the boring activities of many hours of analysis and preparing multiple plans for the future direction of a company. This is challenging and often mind dulling work that in the past, particularly in strong economic times, has been delegated to more junior levels. Now at this time, in this economic climate that may not have any pattern, it is senior management that must develop multiple plans. Senior management must seek and discuss alternatives, some of which might be radical, almost endlessly to establish a direction for the company. Multiple plans must be developed that cover the range from conditions that deteriorate further to a sudden high demand for the products at a company.

Just being busy and seen to be busy will not work this time. It is necessary for a leader to be seen, and not hidden, and the effective the corporate leaders of today should be seen as thorough, organized, and conscientious managers working hard and without any executive trappings to develop a plan to improve the profitability of the company.

Real, in depth management, and not merely delegating all of the problems or only allowing sufficient time to just hear of problems. Stay in place and meet some of the challenges.



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