GOVERNMENT RELATIONS

Leading Business for Success

September 2001

Donald J. Pfundstein*
for New Hampshire Business Review

I started this article on Monday, September 10. I was focused on the need for business leadership in the education financing debate. Respectful of the hard work of many on this issue, it was nevertheless apparent to me that a cohesive business strategy was still necessary. It was clear that as consumer confidence plummeted, earnings diminished, layoffs mounted, plants closed, capital retracted, and vacancies increased, business tax receipts would fall. The only questions were how far would tax collections fall and when would the descent start? Without leadership it seemed obvious that the Legislature would simply increase the effective rates of business and property taxes. By the following morning as the events of the terrorist attack unfolded, my focus was no longer relevant even to the business tax junkie.

Now that two weeks have passed since the heinous assault on our American way of life, the need for business leadership is even more important. Business leadership must now focus not simply on protecting against increased business taxation, but the essence of business and our capitalistic democracy.

Leading business forward will require discipline. The following may help you get there.

1. Provide an opportunity for employees to share their thoughts and reflections on the tragic events of September 11. Assuring an organization's talent that management cares is not only the right thing to do but will over the long term facilitate a return to high levels of production. If you haven't already expanded your efforts to listen to family and colleagues, this is a good time to do so.
    
2. Leaders don't hide behind closed doors or communication technology. Just as the American public has been encouraged by the visible presence of Mayor Rudi Giuliani, employees and customers alike are comforted by the personal presence of an enterprise's management team. Returning to normalcy is not only the patriotic thing to do, but it will provide the personal comfort necessary to put the enterprise back on track. The terrorists want to ruin our American way of life — returning to it is the one thing we can all do to help assure their defeat.
    
3. Leaders must work smarter. Longer hours may be necessary but "prioritized relevancy" is what is really needed. Ask yourself what is really relevant. Prioritize your time so that you are dealing only with those issues which are truly relevant. For example, combing budgets and vendor accounts for cost saving opportunities may make sense, but the leaders should be focused on what their employees and customers do and say about the tragedy. This is how you will identify what is now truly relevant.
    
4. Lately, much has been written about social capital. The spirit of community is what will enable us to sustain our way of life and bring the terrorists to justice. Focusing on relationship management is essential during this time. Leaders should not increase their "wine and dine" time, but must focus on what is relevant to their customers and other stakeholders and respond specifically and quickly to those needs. While uncertainty and fear tend to paralyze us, providing relevant, quality and promptly delivered products and services will help in some small way to increase our comfort level and erode the crippling paranoia.
    
5. Ask yourself often what are the effects of the events of September 11 on business and personal behaviors? How is the world different today than it was just two weeks ago? Leaders who consistently ask and answer this question with the input of their employees and customers will not only sustain the business but position it for growth as we lead ourselves through these challenging times.
    
6. Finally, consider what modifications to your business plan are necessary as a result of what you learned. Returning to normalcy doesn't necessarily mean business as usual. In fact, business as usual may be setting a course for irrelevancy and eventual extinction. The world is truly different. You must understand how so and adjust your plans accordingly.

The strength of our country lies in the hard and creative work of a free people. A capitalistic democracy needs to be guided by great political leaders, but its most fundamental underpinning — a vibrant economy shaped by a solid business sector — requires business leaders focused on success.

*Donald J. Pfundstein is admitted in New Hampshire.

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