Op-Ed: Charting A Prosperous Course In Uncertainty

by Patrick Cataldo, Associate Dean for Executive Education

Sure these are turbulent times. Headlines herald the coming year as a period that will be, at best, uncertain. Our heads spin from the prospect of a recession as the federal government works feverishly to come up with a plan to deflect the economic pain on businesses and consumers. The FUD factor—fear, uncertainty and doubt—is in the air, so thick it is palpable.

How do you chart a prosperous course in these days of disquieting unpredictability? How do you manage amid the mayhem?

There is no end to the troubling news. Consider these developments: The Dow Jones Industrial Average started the year off by losing 5 percent of its value, the lowest opening eight days since the early 1990s. Credit card debt is on the rise, as are corporate write downs. Oil prices are expected to rise and financial institutions like Lehman Brothers are announcing thousands of job cuts. Can there be any doubt that industry leaders are being forced to confront the challenges of uncertain economic and political times?

The World Economic Forum Annual Meeting 2008, which ended in Davos, Switzerland, this past week, acknowledged that the uncertainty is now an international phenomenon which is going to require global understanding and attention. When China gets a cold, the American economy shivers. While the forum rarely produces immediate answers, at least the world's influential economic leaders called for more global responsibility, and greater assistance in helping poorer, less developed nations. They engaged in healthy discussions on how to deal with global financial markets and the impending water crisis.

There is no question that a new brand of collaboration and innovative leadership is going to be needed to deal with the great economic problems of our world, including terrorism and climate change. Interestingly, amid the torrent of dark news we find rays of hope. Mortgage rates have fallen to historic lows, Microsoft's revenues hit a record $16.4 billion, the government appears to be acting quickly to deliver a stimulus package, there was a decline in new unemployment claims, and small manufacturers are desperate to find skilled staff.

So maybe the glass is half full at this point. No matter how you view the coming economic times, it is probably a good idea to concede that there are going to be rocky waters. Aren't there always? If you've lived long enough, you know that we have faced problems before, from gas lines to out-of-control inflation. Here are some things to think about as you help steer your business or organization through the challenging months ahead:

- Don't panic. Recognize that 2008 is not the first, nor will it be the last, period of uncertainty. Calm, well-informed action is always to be preferred over scattered reactions.

- Understand that personnel changes are inevitable, so commit to recruiting the very best people. Work hard to replace employees who leave with skilled, talented workers who exceed the skills of those who left.

- When new employees do join you, step up the pace at which they are integrated into the organization. Help them be as productive as possible as quickly as possible. Offer early training, support and encouragement.

- Project a climate of confidence with positive attitudes. Staying positive helps an organization maintain the energy needed to deal with problems and be successful.

- Overcommunicate. Remembering information is key to helping employees do their best work. It is always better to share information. You can also mix it up. For example, have breakfast or early evening meetings to underscore their importance.

- Put some fun back into the workplace, and put some creativity into it. At a worldwide meeting for a specialty chemical company, Jeff Wolff, the emcee for the event, dressed as a competitive cyclist and rode into the packed auditorium on his bike as the "Rocky" theme blared. When he took the stage, he talked about how Lance Armstrong overcame cancer to become a seven-time winner of the Tour de France. And, of course, he likened Armstrong's challenges to those confronting the company.

"In the years ahead, concern in management will shift once more to the structure, composition, and qualification of top management and of the people in it," wrote the great Peter Drucker. He wrote that in his book Managing in Turbulent Times in 1980. It still applies today and probably will for the foreseeable future.

Let us know about your concerns for the near- and long-term, and share your ideas for moving ahead in uncertain times by joining our blog, where the discussion will continue.

This article originally appeared in the Centre Daily Times.

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REPORTERS & EDITORS: For more information, please contact Wyatt DuBois in the Smeal College of Business Media Relations Office at 814-863-3798 or wed112@psu.edu.

Penn State's Smeal College of Business offers highly ranked undergraduate, MBA, executive MBA, Ph.D., and executive education opportunities to more than 5,500 students at all levels. Featuring academic departments of accounting, finance, marketing, insurance and real estate, management, and supply chain and information systems, the college is also home to major research centers such as the Center for Supply Chain Research, the Institute for the Study of Business Markets, the Center for Digital Transformation, the Farrell Center for Corporate Innovation and Entrepreneurship, the Center for Global Business Studies, and the Center for the Management of Technological and Organizational Change.

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