Managing by news

The US economy is in a tailspin. Each day brings worst news on business closings, earning disappointments, job losses and towns and people is jeopardy. Lives are being destroyed in this financial tsunami.

Here is a sampling of the business headlines today:

·         Recession, Job Losses Snow On Retailers’ December Sales

·         Obama Warns of Prolonged Crisis Without Stimulus Plan

·         Macy’s to close 11 stores nationwide

·         Fannie and Freddie give borrowers more time

·         US Jobless Benefits Program Swells to 4.6 Million

·         Publisher Meredith to cut 250 jobs, take charge

·         Cardinal Health Cuts Its Fiscal-Year Outlook

·         Walgreen to cut 1000 jobs outside its drugstores

·         Time Warner Cable expects to see red

·         Oil Falls a Third Day on Concern the Recession Will Cut Demand

Each news item brings with it a slug to our collective face – each hit desensitizes us to the pain and suffering of others as it is only human to get numb after a point. Till, some aspect of this storm hits us, we will continue along our respective paths – shaking our heads, feeling sorry and feeling helpless. What can one do?

Get over your fear. Try to lead, for crying out loud.

So called “leaders,” perpetuate a problem and convert it into a calamity by putting on blinders and following the herd. If everyone thinks it is an opportunity then it must be. If everyone thinks it is a problem it must be. If everyone is cutting back then so should I.

The name of the game? No bandwagon left behind!

The bandwagon lined up now is one of doom and gloom. We are all screwed so let me set the ball in motion by simultaneously wringing my hands and laying-off people – isn’t that the fastest way to get your balance sheet in order?

It is but with a big problem. It is incredibly short sighted. Invariably, you are hurting yourself in the long run. The impact on employee moral – those who are left behind are not at their peak performance – and lost institutional knowledge is tremendous and unnecessary. Let’s face it, the moment the winds start blowing in the other direction you will be lined up right behind that wagon – eager to catch that wave.

What have these mindless cycles of hiring and firing done to shareholder value? Who cares!