COMMENTARY

Business' Role in War:
Get Things Back on Course

April 2003

By Donald J. Pfundstein*
for New Hampshire Business Review

I started my September 2001 column the day before the 9/11 attacks. Finishing it was challenging. But I think I got it right. The key themes remain relevant today.

Watching Web-based or TV video of the war in Iraq leaves one with a somewhat surreal feeling. Aside from the paramount concern for the well-being of our troops and innocents everywhere, it's not easy knowing what to do. Should one get lost in the athletic contests and other entertainment venues? Should we contemplate the Red Sox's annual but temporary meteoric rise to pre-eminent status among their peers? (This really could be the year). Or should we take care of business?

Taking care of business makes sense. Going about life or business as usual is not the normalcy we seek. In fact, business as usual may be setting a course for irrelevancy and eventual extinction. The world was changed by 9/11. That surreal feeling you have been recently experiencing only reinforces the truth that things have changed.

"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."

Those were the words I chose in the aftermath of the terrorist attacks. They are true today. I am of the view they will continue to be true so long as we fight for the American way of life. These words also hold the clue to how we should move forward in the business sector.

First, focus on context. What is really going on out there? Consumer confidence has been further eroded by understandable concerns over the war. The jobless recovery seemed in trouble prior to our troops leaving Kuwait. The equity market's uncertainty seems matched only by lotteries to guess when business will restart its capital investment. Interest rates remain historically low, but home refinancings may be the next bubble.

Inflation remains under control but deflation concerns are now no laughing matter. A "double dip" seems more likely than even a month ago. In short, these are challenging economic times. The geopolitical uncertainties have exasperated the weaknesses in the economic fundamentals.

Leading business through these challenging times requires enhanced focus on "prioritized relevancy." Ask yourself repeatedly, "What is really relevant?" Prioritize everything. Personally deal only with those issues that are truly relevant. The other important matters should be delegated. If not worthy of delegation, forget about them.

By focusing on your three core constituencies — employees, customers and competitors — business leaders are more apt to achieve "prioritized relevancy." What are your employees telling you? An organization's talent is its critical asset. Treat it as such. Listen to what you are being told. Avoid managers. Talk to your people who actually interact with customers.

Emphasizing relationship management is essential during this time. What is relevant to your customers? What changes have they had to make due to competitive pressures in their markets? How have efficiencies changed the way they do business? What are your customers' needs? How can you service them? Successful business leaders repeatedly ask and answer these basic but vital questions.

Identify your competitors' strengths and weaknesses. Can you differentiate yourself in a market in which they enjoy success? Evaluate whether focusing on existing strategic customer relationships makes the most sense.

We are all in this together. The 20-year old marine may have a different short-term duty than you, but your charge is just as important. By taking care of business, you are helping to protect the underpinnings of our democracy. That's why our fighting men and women are risking their lives. The very least we can do is try to get things back on course — rebuild our economic engine so our freedoms prevail through the resulting strength. Your part in fighting the war is taking care of business.

*Donald J. Pfundstein is admitted in New Hampshire.

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