There cannot be many people who have not been affected by the economic crisis both foreign and domestic. From banks collapsing to falling interest rates and mortgage foreclosures, business closure and rising prices, the outlook has been grim for a considerable length of time with some even speculating on a double dip recession. The latest round of events resulted in the United States losing its top-tier AAA credit rating from Standard & Poor’s in an unprecedented blow to the world’s largest economy in the wake of a political battle that took the country to the brink of default. The move reflected the impression of a deterioration in the global economic standing of the United States, which has had a AAA credit rating from S&P since 1941.
Having said all that, there are business that even through these hard times are not only managing to stay afloat and remain relatively unscathed by these events, but based on sound financial governance and business strategy, combined with an excellence of service to their respective clients and consumers are in fact growing business in real terms.
How is this achieved? As Michael Eisner commented during his role as CEO of the Walt Disney Company, “Typically, and predictably, companies will commit to a new venture during boom times only to find themselves opening for business two or three years later when the economy has moved into a down period, Investing aggressively in new business during hard times is more daunting. The key is to do it in a core business and to believe deeply in what you’re doing.
Michael Eisner understood the concept of a great plan and strategy with an utmost belief his product
Good business sense is by no means confined to the modern day, in the case of the renowned author Charles Dickens, born in Portsmouth England in 1812. Charles Dickens did not invent the urban poverty that we now call “Dickensian.” He did not dream up the poor Victorian orphans that populate his fiction. Nor the appalling conditions in factories characterizing the Industrial Revolution. Nor the injustice of the debtors’ prisons. He simply saw these things unfolding around him in mid-nineteenth century London, and then he thoroughly documented them in the form of larger than life novels. He initially had the good fortune of being sent to school at the age of nine, but this term was very short lived when his father, who was the inspiration for the character of Mr Micawber in ‘David Copperfield’, was imprisoned for bad debt . Charles was sent to work in Warren’s blacking factory and endured appalling conditions as well as loneliness and despair, the experience was never forgotten and became fictionalized in his novels, penning the quote from Mr Micawber “Annual income twenty pounds, annual expenditure nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
Charles Dickens understood the concept of a sound fiscal policy
We can turn to Franklin D. Roosevelt one of Americas most beloved Presidents and President during the great depression, who radically, and quickly transformed his government. How did he do it ? One secret to Roosevelt’s success was his ability to understand his audience or indeed as they could be called his clients or customers. Utilizing thirty speeches given over the radio (and later TV) during his presidency, his fireside chats, as they were later named, allowed FDR to speak directly to the American people as if they were close friends. The chats were crucial to building support for the New Deal, and later, to mobilizing the nation for War. Many Americans came to feel like they were partners in their government with a man whose warm and understanding voice came right into their living rooms.
FDR understood the concept of understanding your market or end user to create a partnership
Whilst these examples are simplified and for illustration purpose only, and whether influence and advice or guidance is taken from successful captains of industry, Presidents or illustrators and interpreters of true life, enterprise should never lose sight of the unspoken partnership that exists between the company and the client, retain a sound fiscal policy and plan for success, or indeed risk the fate of Mr. Micawber
Tony
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