There are always more questions than answers for the thoughtfully uncertain. Lately, however, even that truism is out of kilter.
CEOs and boards are under attack. We get it. But why does that mean leaders have to fall back on their heels? Is it because they’re scared, paranoid, beholden to investors or all of the above? The Cs have every right to be scared but running scared is not an option. We desperately need more to step up and act more boldly and broadly. Rolling over isn’t going to cut it nor is "going green," the latest bandwagon movement.
If investors don’t hold under-performing companies accountable, who will? Self-governing boards? Government? Management? Ok, this isn’t a trick question. None of the above. Investors and those who genuinely want to see more value are the only ones with an ability to impact change. Minus a few exceptions, companies and their managers can’t be left to their own devices. And that’s just it. Managers don’t always make leaders despite off-the-shelf training tools and off-site pow-wows.
Is a PEG coming to a company near you? Major private equity groups, or PEGs for short, are scouring the pads for businesses flush with cash flow that they can load up with debt and then turn around and sell. That much we know. What we don’t really know is how they do it entirely. Largely because they’re private. Maybe that’s a good thing? For more on the talent repercussions, please visit http://www.pointofviewllc.com/views_and_news.html.
Recession coming or merely another blip and dip in the gyrating global economy? Who knows. What we do know: The housing industry has a long way to go before hitting complete bottom, consumer spending continues to see-saw and the U.S. personal savings rate is negative. Employment, a lagging indicator, remains strong as does the stock market, a leading indicator. That combo. normally bodes well for growth but evidently not always. Could it be...we're in The New Economy that so many yammered about back during the Bubble?
