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Today's Economic Uncertainty Makes Waiting the Kiss of Death
July 2, 2010 [by Larry Chao]

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The ups and downs of global financial markets over this last quarter have made nervous investors scurry from equities into safer bets like U.S. Treasuries.  Their rationale:  Just too much uncertainty and fragile economic news, especially coming from the U.S.

Corporate bosses meanwhile tear their hair out trying to figure out where to focus and place their bets.  Customers, markets, opportunities are moving targets.  Most frustrating is that companies are too slow to react anyway.  The bigger one is, the slower one moves.

It is a jungle out there and for those waiting for stability, forget it.  The markets will never be straightforward again.  Even a crystal ball has limited value.  If it is not Greece sovereign debt-like crises, it will be Gulf oil spills or strengthening China currency issues that disrupt markets and add to ambiguity.  Opportunities and dangers come and go faster than ever.

We have become much too unpredictable and interdependent to rely on gradual change and predictable trends.  Life is living on the edge.  Betting smart and taking calculated risks is the name of the game.  Staying hunkered down and on the sidelines is one option – maybe for investors, but if you do it in business, you will be stampeded out of the race.

Today’s business environment is for the quick and persistent.  Having an open mind is the secret weapon, and focusing continuous energy in the right areas is more important now than ever before.  

Moreover, I know we try to patiently explain, train and nurture people to take on new skills, new attitude and to perform at a higher level and to deal with change.  Unfortunately, we expect too much.  Perhaps 20% of the people can make the transition, while the bulk of people are better off doing something else.  The faster people recognize this, the faster both employers and employees can move forward and be successful.

Most businesses are operating in quicksand.  They are just biding time, or are moving a a glacial pace, hoping that a trend or upswing in the economy will sweep them upward.  

But these up draft are rare and short lived.  Like professional athletes, companies need to stay on the balls of their feet seek out and pounce at opportunities, not wait like moray eels in their caves for the prey to swim by.

Being successful by staying put will rarely work in today’s tumultuous world.





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