What’s the Point?

Monday, June 1, 2009 | 2:53 p.m.

I was sitting on the patio on a wonderful spring afternoon, reading and reflecting on changes that I wanted to implement in my business when my son’s voice broke the silence.

“What’s the point, Dad?” he said. “What’s the point of learning geometry, Spanish or science?”

“The point,” I responded, “is to be the best you can be” (sounds like an Army commercial), “to become well-rounded and to develop the skills to be competitive in the economy -- to develop the ability to continually learn and take learning points away from every situation.”

If the economic slowdown of 2008-2009 has taught me anything, it’s that freedom should never be taken for granted. During successful years, I could get away with taking extra vacation, cruising through some days and not pursuing the opportunities that were presented. That freedom sure is nice, and when you own your own business it is one of the best perks that one can earn.

I didn’t get to owning my own business by asking, “What’s the point?” I got there by working hard, first in my studies and then in my early jobs -- learning everything that I could. I got there by developing a work ethic that valued learning and advancement through strategic thinking, not by taking even a moment off. I earned this freedom and now I have learned how easily it can be taken away -- even through no fault of your own.

The past six to 12 months have been some of the most difficult periods, yet some of the most educational, for me. At the same time, I’ve learned a lot about myself, my business partners, my employees and my clients. I learned quite a bit about the human dynamic and how stress causes people to act. The following are some things that hit home for me:

All businesses have difficult times. I have the good fortune to be connected with many different types of businesses across the United States. For each, there are good times and difficult times. Living in Las Vegas insulated my business from slow economic times for many years. I’ve observed others deal with tough economic situations in varying ways. Through this observation, I’ve learned that the businesses that put their employees first and stay positive are the ones that weather the storm best. The businesses that treat their employees, clients and other businesses with respect during difficult times maintain loyalty and work when the economy rebounds.

Stress affects everyone differently, but it does affect everyone. Everywhere I go, I see the effects of stress on people. These are good, hard-working people who are feeling the stress of losing their jobs, not being able to make payroll, or the stress of making changes within their businesses. Most of the time, you can see it on their faces, but some people are good at hiding the physical effects of stress. Some people let stress affect their decision making, while others blow up at the slightest piece of bad news. I’ve made it a point to cut people more slack these days as they learn how to deal with the stress in their lives.

Not changing when things change is insane. I think it is pretty clear that things have changed in our lives and are continuing to change as the world grapples with the first global economic recession. This external change requires each of us to adapt, change and understand the new challenges we are facing. I’m of the opinion that if we learn to be nimble and adaptive in our approach to business, we will be poised for success in a new economy. Stay true, however, to your values and the reasons you do what you do. Changing what you are doing or how you approach your business could yield great dividends.

How you treat others during tough times will define you. All companies must deal with business issues. Those issues include expense cutting, staff reductions, layoffs and furloughs, to name a few. While a business may need to lay people off or reduce benefits, I’ve found it’s not “what” but “how” these actions are conducted that will define the business for years to come. For instance, as a business owner, recognize that you will be the last man standing. What I mean is that of everyone in your organization, you are the only one who knows he will not be let laid off. Also, recognize that you don’t and can’t know how your employees are feeling during these times, so don’t patronize them. Handle cuts and layoffs with respect for the people. Give them time to deal with issues. Recognize that being laid off is traumatic and that being treated with courtesy and kindness during this time is one of the best ways to handle the situation.

Sometimes our rewards aren’t what we think they will be. As my company began feeling the effects of this downturn, I began to ask: “Why us?” I believe the firm has been doing many of the right things -- we have engaged, productive staff, and we have maintained our integrity through thick and thin. So, why us? I guess the rewards for doing the “right” thing are not always what we hope they will be. Maybe the rewards are not monetary. Perhaps the reward for doing the “right” things is a clear conscience -- knowing that you have always tried to make the best decisions with the facts presented. Maybe the reward is the ability to look in the mirror and still like what you see. Perhaps the reward is a good night’s sleep. Wouldn’t that be reward enough in these stressful times?

“Son, I guess the point is that through education and hard work you can put yourself in position to at least have a say in what affects your life and the extent to which it can affect your life. But, of course, you’ll only understand that as you get older.”

I’d like to hear from you:

• How are you dealing with the stresses of this new era?

• Do you have advice for maintaining and/or raising morale in our businesses?

• Have you developed a support network during these times?

Until next time …

Craig