A couple of weeks ago I was settling into my Sunday morning routine – coffee, the L.A. Times crossword puzzle and the Sunday morning news shows. Chris Wallace was interviewing three CEOs on their views of the economy and I thought, “Good! Now I’ll get to hear from people in the real world, not just the economists and government pundits.” Here are excerpts from these interviews.

Fred Smith, CEO of Federal Express: “Well, I think the recession has bottomed out. We have a very unique view of the economy. We have our express company that operates all around the world, our ground company that’s tied in with retail, and our freight company that’s tied in with the industrial sector. We’re beginning to see some pickup in all three of those areas. Asia is very strong, led by China. There’s no question that the economy at least has stabilized, albeit at a lower base.”

John Chambers, CEO of CISCO: “We get to see what’s going on in medium-size businesses and larger companies. … The second quarter we began to see pretty good upturns of sequential growth, good balance in the U.S., Asia very solid, as is Latin America. The economy is clearly recovering. The question is, do we put Americans back to work and have we made the changes during this downturn to position our country on the global basis from a competitiveness point of view?”

Steve Odland, chairman of Office Depot: “Office Depot’s customers are small businesses, and so we’ve been a barometer of the health of the small business sector. What we’ve seen in this sector, the small business customers have been hurt disproportionately in this downturn, because housing is a traditional source of liquidity for these people. They start their businesses with a second mortgage and fund them with home equity lines of credit. As that credit has dried up, these businesses have not been able to recover … and I’m worried that we’re not going to until the liquidity returns to the small businesses.”

Wow. It struck me then – perspective is everything. These CEOs were not stating universal “truths”; each was giving his opinion of the economy based on the world as he sees it through his unique lens. Each was responding to what is happening in the environment within which his company conducts business. What one was experiencing was not necessarily the same for the other two. And based on their experiences, each formed an opinion about the state of the economy and presented it as the answer.

So what’s the take-away?

Regardless of whether I am presenting or receiving information, and depending on what particular information I’m looking at, it’s important to remember that more than one thing may be true. It will benefit me to look at things from multiple perspectives and not mistake my unique view as the one and only.

What is your perspective?

Have you heard this phrase recently? Seems to be all the rage and it has caused me to ponder, which current realities will be short lived and which ones will cause fundamental and permanent changes in society, business, government, and thus, our lives? In other words, what is the new normal?

Apparently, the answer depends on whom you ask.

I’ve heard it described as “an end to the excesses and showy consumerism of the past.” A colleague used the phrase when I mentioned I had traded in my Lexus for a Volkswagen earlier this year.  According to him, what I had done clearly represented the new normal, defined as less conspicuous consumption, less living beyond our means and more conservation of our natural resources.

On the other side of that coin, I know people who have the means and are now afraid to show it. The new normal for them appears to be playing down their wealth so as not to be vilified or appear politically incorrect by those whose new normal is “less is more.”

And then there are those who believe that the new normal will be bigger government and more reliance on it for basic goods and services. That is good or bad depending on which side of the political/philosophical spectrum you are.  Will this mean higher taxes and more regulation? Will it mean everyone has health insurance regardless of personal circumstances?

Some industries are shrinking so fast, caused not just by the economic downturn, but also by other forces such as how we use technology. Will certain industries disappear altogether?  What new industries will pop up in their stead?
Will we really spend less and save more in the future, not just because we’re fearful today, but also because it’s the new normal? How will that change our buying habits and therefore the business environment? What will retirement look like in the new normal? What will life be like for our children?

Several things became clear to me as I’ve asked, listened and reflected on this topic. First, while we may each see the same things happening around us, our life experiences and our beliefs influence our interpretations of what they mean. Second, our personal interpretations of these events will then impact our actions.  (Do I put my money back in the stock market? Should I lay off more employees?  Do I tough it out or cash in? Should I buy now or wait?) Third, the only thing that seems certain is uncertainty. I know there are new opportunities for all of us out there in the landscape of the new normal…I just wish I knew what they were!

I’d love to hear from you…what is your new normal?

The men and women recognized that evening shared an unwavering determination to succeed. Some overcame severe financial setbacks, while others just refused to take “no” for an answer. Some revitalized existing companies in “old” industries; others created entirely new markets. They represented a wide range of industries, including technology, construction, retail and consumer products, services, and healthcare.

These entrepreneurs shared several common traits, which I believe landed them as finalists for Entrepreneur of the Year. Those similarities are:

o    Clarity and strength of vision – they could see what success looked like and they knew it was possible, even when people told them it wasn’t.
o    A steadfast resolve to stay the course and follow their dreams.
o    A firm belief in the opportunities created by our free enterprise system and the ability to spot trends and capitalize on them.
o    An understanding that taking care of relationships with customers, employees and the community is integral to success.

I left the event inspired and revitalized by these incredible men and women.

One final note: Two NAWBO-OC members were among those honored that evening. Congratulations to Susan Johnson, CEO of Susan’s Healthy Gourmet, who was a finalist in the Retail/Consumer Products category, and to Henry Walker and the entire Walker family at Farmers & Merchants Bank for the Lifetime Achievement Award. It was a reminder that I don’t need to wait for annual awards to be inspired by and learn from great entrepreneurs. They are all around me at NAWBO-OC!

There’s been plenty written about the entrepreneurial spirit. It is said that the entrepreneur has an abundance of passion and ambition, that she is not afraid to fail and will not take no for an answer. She has a sense of urgency, the ability to tune out the negative and see opportunities everywhere. When you ask an entrepreneur why she started her business, she immediately jumps into her story, eyes lit up as if she were reliving that exciting time in her life.

Do you know this person? I do.

Entrepreneurs have been a bit hard to find in the past few months, having gone underground to nurse their wounds. It’s as if they had been sucker-punched by the swift downturn of the economy, left paralyzed and trying to regain their breath. The good news is that I’m starting to see them resurface, and this gives me hope.
Entrepreneurs are the forgotten heroes in these times. They are everyday men and women who are willing to put everything at risk to fulfill their dreams. They create products and services that the rest of us use every day, and in doing so, they also create the majority of jobs in America.

The entrepreneurs I talk to are not asking for a rescue or a handout. They just want a playing field that is free of unnecessary obstacles and penalties (read: those created by a well-meaning but often-clueless government). They want the opportunity to succeed or fail on their own merits, and they are willing to risk it all in the process.

I fervently believe we will recover on the efforts and indomitable spirit of entrepreneurs. And I hope we will get out of their way and let them run!

I have spent quite a bit of time car shopping recently. What surprised me was that in this day and age, and particularly in this economy, not much had changed in the basic business model.

Good economic times cover up a myriad of sins: sloppy business practices, antiquated business models and loss of customer centricity, to name a few. So even though it’s good business to always look for ways to be efficient, stay relevant and attuned to market trends, it’s essential in an economic downturn. It’s a question of who will survive and thrive, and who will not.

Comments to my last blog illustrated how others are adapting to today’s economic environment in order to survive. Jan Norman’s Feb. 21 article in the OC Register profiled several business owners who are adjusting and shaking things up in order to withstand the recession. And recently, I participated in a meeting with NAWBO-OC board members (all business owners) brainstorming how we could redesign our special annual event for these unusual times, while still providing an incredible experience for our members, our corporate partners and the women business owners we honor.

It seems to me that if, as a business owner, you are not questioning the basic premises of your company, you’re going to hit an even more difficult road ahead. What could you be doing differently, more efficiently? How could the business model change to enhance value to the customer? What should you stop doing today? What should you start doing or offering? What are the new needs of customers? How can you stand out from the crowd? How can you make it easier, even necessary, for the customer to buy?

Will you stay in the game by reinventing and reinvigorating your business? Or will your business die because you are holding on to what worked in the past?

How have you reinvented your business to meet the times?

A friend of mine, Larry Cassidy, recently wrote: “… as a brand new Marine Corps infantry officer in 1959, one of the first things I was taught was to never, ever (EVER!) hit the deck and hunker down in an ambush. Those who obey that first instinct die! Period. We were taught to fight our core instincts, and fight our way out, from the very first shot. We would lose a few by launching an immediate counter-attack, but we would all die if we simply went to ground. I never had to use that training for the reasons it was taught (thank God!); now, 50 years later, it seems very useful.”

When I read this I reflected on the many recent discussions with friends, colleagues and clients, and on my own observations of all of the different ways people are responding to the constant bad economic news. I keep asking myself,
“Where exactly is the balance between the two extremes I’m torn between?” One extreme is hunkering down to wait it out, possibly even shrinking, downsizing and downgrading – sort of like curling up in a fetal position in the trenches. The other extreme is the belief that by just keeping positive thoughts I will create the right energy to survive and thrive in this environment, like all of those examples of abundance in “The Secret.”

Neither one of these approaches resonates with me. The first, in its extreme, is fear based, myopic and reactionary. The second is head-in-the-sand and wishful thinking at its worst. So I, like many of you, am finding my path crossing back and forth between these two very different approaches. I refuse to ignore what is really happening. I will cut my expenses and will probably not lease another Lexus this year. On the other hand, I know that there are new and exciting opportunities out there and that I have to be above ground to see them. I may increase expenses in certain areas like marketing, and I’m finally motivated to learn about Social Media, so I can reach more people less expensively.

This is new for all of us. Some of us will hit home runs, and all of us will make some mistakes. I’d love to hear what you are doing and invite you to share so we can learn from each other.

The weekend before Thanksgiving, I participated in the Susan Komen three-day, 60-mile walk in San Diego. A few days before the event, I was questioning why in the world I had agreed to it. I wasn’t sure I could go the distance, I didn’t know what to expect of the event or my body, and I hadn’t trained – yikes!

Then I arrived and … wow!

It’s difficult to describe what it’s like to be surrounded by several thousand people with a common goal and feel their energy move through you. All of a sudden I knew I could make it. The vision became clear, and I felt the support of my team as well as all the other participants, those people I did not know but who were there for the same reason. I saw walkers giving someone in need a Band-Aid from their precious supply, getting a teammate’s lunch when she couldn’t walk any farther or slowing down to keep a fellow walker company along the journey. I witnessed the community come out to cheer us forward, many with their small children, and offer us sustenance to boost our energy as they raised signs thanking us for our efforts. I felt appreciated, acknowledged and supported for doing something important.

Having a shared purpose created an excitement and an alignment of energy that, in turn, created powerful results. Many of us reached beyond our normal capacity and endurance, and achieved what we didn’t think was possible.

As business owners, we’ve heard and read about the power of alignment, of having a shared vision and purpose. Well, I just experienced that power. And I believe in these challenging times, the survival of our businesses may depend, in part, on creating that vision and shared purpose that everyone can rally around.

As I’m listening to our leaders debate solutions to our financial crisis, I must admit that I don’t have a strong sense of assurance that many of them really know what to do. It was clear during the congressional hearings when, as the cameras panned the room, they periodically landed on leaders who looked like deer in headlights.

As I usually do, I turned my observations to the business environment and started asking, what makes a good leader during times of crisis? Here are just a few of my thoughts.

Be seen and heard often: Visibility and clear, straightforward communication are vital, even when you don’t have all of the information or know all of the answers. Think Rudy Giuliani after 9-11.

Stay calm and focused: Have you ever wondered how some people can be so calm, even when their own personal safety or that of their families is threatened? Good leaders must be able to exhibit self-control, suppress their own fears and focus on the welfare of many.

Keep a positive outlook: This is tricky because we can easily spot the leader who is just giving us the “spin.” It’s so important to create context and perspective, acknowledge the challenges ahead, and exude confidence and assurance in the solution and outcome.

I’d love to hear from all of you out there. Have you had to lead your organization out of a crisis situation? Or perhaps you have experienced being successfully led. What makes a good leader during a crisis?

So what does this have to do with running a business? As a customer, have you ever felt like a dropped baton?  Somehow you’ve fallen through the cracks, or you keep getting bounced around from one person to another, or have been forgotten altogether.

In most businesses, “hand-offs” between departments and people are necessary to serve the customer or manufacture the product. These hand-offs are equivalent to a baton pass. A baton pass in business could be as simple as transferring a customer call from the receptionist to accounting, or as complex as handing off custom design specs to production.  How well your company handles these baton passes will contribute to your customers’ overall satisfaction and the cost effectiveness of your processes.  In other words, they will be a major factor in your company’s success.

In relay teams, each team member expects the others to do their part well and to meet a specific standard of time. They don’t necessarily practice their individual sprints together. What they do practice together is the baton pass between team members. Each member understands how best to hand off to the next person to create the best chance of success. Standards are set for performance of the baton pass and if one member drops the baton, the entire team loses.

In your business, do you know how many baton passes occur to serve the customer or produce your product? Can you streamline and cut down on that number?  Do you have performance standards for each hand-off and do you train on and practice each of them?

I picked up two common threads between the two talks. First, values and ethics must be defined, then taught.  Second, it’s all about behaviors, not words.  So what does that mean to the typical small business?

Many small businesses credit the good reputation of the owner or founder for their success. Yet, we jeopardize that very reputation when we don’t spend time on the “soft” things such as defining and teaching our values.  For example, if I say that my company works with integrity, is responsive to the customer and is focused on quality, I’ve just listed three values that my company and I stand for.  But if I haven’t spent any time with my employees, suppliers or even my customers about what that means to me, then I’ve left each of those values up to the interpretation of the listener.  Does “responsive” mean I’ll return your call within 1 hour, or 24 hours?  Does “integrity” mean that I won’t cheat you on price or that my actions mirror my words….or both?

Employees of UPS spend time at the beginning of each meeting talking about something in their policy book. What does that policy mean?  What is the intent? What is the expected behavior? This is how UPS helps define and socialize their values into the company to ensure employees are on the same page and in sync with the intended behaviors.

Values are just words until they are put into action.  Just make sure it’s the action you intended.