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Economic Recovery and the "New Normal"

 

Many economic pundits believe that the economy might have bottomed out last month. While the wait can be long between hitting bottom and the first strong signs of a recovering economy, we have seen some signs indicating that the economy is on the upswing.

Bank liquidity, for example, is increasing as is evidenced by several large, money center banks successfully raising equity capital to pay back TARP funds. However, even with liquidity and the ability to lend, both money center and community banks are much less willing to lend than they were prior to the recession. This increased scrutiny and careful consideration by banks will likely remain for quite some time once the economy does recover. In other words, the “new normal,” has already begun.

May 2009 Survey of Advisors to Family

With that in mind, we invite you view the highlights and findings from our May 2009 Survey of Advisors to Family-Owned Businesses. We worked with the Family Firm Institute to survey advisors to family firms regarding both the perspectives of the advisors as well as those of their clients relating to the economy and their predictions regarding when economic recovery would really kick in.

Should There Be an “I” in Team?

Also available online is our article Should There Be an “I” in Team? In the article, we address why teams sometimes fall short of their goals, focusing on a recent article published in the Harvard Business Review titled “Why Teams Don’t Work” by J. Richard Hack. We touched on what to do to ensure the success for the teams that you lead. This success includes not only getting the right people on the team, but also providing the focus and tools needed to accomplish the team’s stated mission.

Is the Economy Affecting Your Decision Making Abilities?

Decision making is one of the most important and anxiety-producing tasks of business leaders. Add in the limitations and uncertainties inherent in a weak economy, and it’s no surprise that we have seen many professionals become frozen with fear and stop making decisions. If you find yourself in this category, we encourage you to check out the book 10-10-10 by Suzy Welch. In the book, Welch offers a framework for decision making that can help you overcome the fear brought on by the complexities of this important process. Welch suggests that you frame a decision based on its implications in 10 minutes, 10 months and 10 years. When you begin to explore and use this concept, we believe you will find that it sharpens your decision-making abilities not only for business issues, but for personal matters as well.

Perhaps the following quote will also fuel your decision-making process:

“If you limit your choices only to what seems possible or reasonable, you disconnect yourself from what you truly want, and all that is left is compromise.”
– Robert Fritz

Enjoy the warm weather. Let’s hope it serves to heat up the economy.

BlackmanKallickStrategyInsights.com

Sincerely,

Barry S. Cain, former Managing Director, Strategic Services
David Spitulnik, former Director, Strategic Services
Suzanne Lane, Senior Manager, Strategic Services
 

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.