
The language describing the recent financial situation is characterised by qualities of pessimism, hopelessness and disaster. Writers seem to compete to invent the most frightening descriptions.
Search as I might, it has been difficult to find an article in the business press giving consideration to the human aspects or opportunities presented by this situation.
Humans faced with a major threat or change will respond in various ways. The range is large – from sheer panic to “coolness in a crisis”. Whatever else has happened our economic environment has changed dramatically. A recent analysis of 13 recorded recessions in Western Economies described a process of recovery usually lasting at least 12 months for stocks to recover 50% of their pre crash value, then a period of years to recover full value. (Limitless Research, Nov. 08).
Short-term considerations often moderate or preclude spending on Development/Learning. And this, despite evidence that a company’s willingness to invest in innovation and change gives it the best opportunity to adapt to a changing world.
Will a policy of hold tight until things improve be the most effective response? Given the negative effect on staff morale (who will be sacked next?) it would seem not.
Encouraging people at all levels in companies in solving the problems facing them would have several positive outcomes.
This is not a short-term fix. This is a change in culture.