International Process and Performance Institute

There is talk everywhere recently about “Stimulus.”  The word is so pervasive.  Even the most reclusive people are bound to hear this word at least once in any given day.  Yet what does it mean and can it really help us in these current economic challenges?  Stimulus, in the way I hear it being applied, assumes the economy is some kind of pump; by priming the economic pump, our economy will start working again.  I think not.  Our economy is not a pump and priming isn’t the answer. 

Our economy is by no means simple, but it is based on one very important ingredient: CONFIDENCE.  Show me a strong economy and I’ll show you a high level of confidence by the participants.  Conversely, show me a weak or unstable economy and I’ll show you very low confidence by the participants of that economy.  It doesn’t take a genius to understand what is lacking in our economy right now.

So what happened to our confidence, and more importantly, how do we get it back?  This time it started when poor lending practices of the last ten years caught up to the financial industry and they could no longer hide the problem.  By the way, I heard many a wise voice predict with uncanny accuracy those lending practices would blow up in the faces of everyone involved.  The institutions involved started failing and then our government suddenly realized there was a problem.   As is often true of politicians with an opportunity, they ran around yelling “the sky is falling” if we don’t jump in and save everyone.  Then the media stirred the pot even more and next thing we know, everyone hears and reads we have a full-blown financial crisis.  Within a short period of time, as if on cue, we actually start feeling a true full-blown crisis.  So I have to ask what came first; the actual crisis or the thought of one?  Perception becomes reality.  If you think about it, it doesn’t add up.  Poor lending practices of one industry leads to the collapse of an entire economy?  I don’t think so.  We talked ourselves into this mess.  We gave up our confidence and it won’t be as easy to get it back.

How do we get back our confidence?  Courage!  The Merriam-Webster Online Dictionary defines courage as the “mental or moral strength to resist opposition, danger, or hardship. It implies firmness of mind and will in the face of danger or extreme difficulty to support unpopular causes.”  My own spin on courage is the willingness and ability to do what we know to be the right thing, in spite of what everyone else is saying or doing.  As I talk with people in the business community, I hear a common theme which troubles me deeply and explains why the problem appears to be worsening.  Over and over again I hear the words, “We know we need to… (plug in some business activity here) and we have the budget to do it, but we are waiting to see what happens.”  Or, “we are waiting to see what everyone else does.”  This is the opposite of courage; it is full-on cowardice whether complicit or explicit!  To know what you need to do and not do it is cowardly and a travesty for everyone; the company, the employees, the shareholders, the community and the economy.  Cowardice is really the best word I can use to describe this behavior, but fear is at the root.  Susan B. Anthony said, “Cautious, careful people, always casting about to preserve their reputation and social standing, never can bring about a reform.” Think of it this way; courage builds up while fear tears down.

Courage has built many of the most successful companies past and present.  Courage has shaped many a personal career and fortune.  Thankfully, I am starting to hear wiser voices pointing out that smart businesses and leaders are taking advantage of the situation and not only surviving this economy, but thriving in it.  They will do this with action and not sitting back to see what others are doing.  They will be the ones “doing” while the others watch.  What we need right now is courage!  Be courageous my friends.  Do what you know to be the right thing in spite of those who tell you otherwise.  Robert Frost said, “The best way out is always through.”  Only your courageous acts will bring back the confidence we need for a healthy economy.