Greetings! Worrying about problems (like the economy )serves no gain - but doing something about it will. While many of the companies the CEOs I work with have seen moderate to significant improvement in their business positions, the political, market and overall economic gyrations in recent weeks has intensified, once again, the level of concern most feel about the future. Few if any I know have felt that we had moved beyond the economic storm we've endured and have set sail for smooth seas, but the sense of safety is being overshadowed with a greater sense of caution. 
In business, as in any aspect of life, worrying over things we cannot control tends to tax the resources we need to apply to those things we can and can compromise our effectiveness to lead. Ignoring concerns or denying their existence is foolish and not the answer either. The surest, most effective way to deal with any problem is to identify it, gain whatever understanding you can about the nature and extent of the problem and then be able to take action accordingly. The problem with the general economy being the problem is that most of us have a limited technical understanding of the situation and limited access to meaningful facts and data. Most of our information is filtered through the bias of journalistic reporting and whatever spin or agenda is being placed on the story being presented. On top of this, we rightfully feel powerless to doing anything significant. The economy runs by forces that seems to have a life of their own and by policy that is set in the chambers of government. We may find some satisfaction in laying blame - but by actually solving anything. Within my community of Vistage Chairs there has been a widening discussion about this - given the scope and position of our members throughout the United States and around the world. And while we are not a political organization, our mission is clearly pro-business and founded in a principled approach to caring about our CEO members, and those, in turn, who they care for and about. Accordingly there is a growing sense that there is something we can and should do. As leaders of small and mid-size companies we are all acutely aware of what happens when fiscal fundamentals are out of balance. We all understand that effectively managing risk requires managing our levels of debt, expense, revenue and best utilization of our assets. There is nothing all that different from what Mary Meeker, partner at KPCB and a former analyst at Morgan Stanley, refers to as USA, Inc. I urge you to have a look at a video overview of a report recently created that, without any political leaning or suggestions regarding policy, paints a very clear and well documents picture of our economic conditions in terms that any good business person can not only understand - but will find difficult to ignore. Watch the Video, USA, Inc. by clicking this link: http://www.kpcb.com/usainc/ You can also download a copy of the complete report here - or at the Website cited above. This information should be a catalyst for CEOs of small and middle-market companies - who represent the heart of the American economy - to demand a different standard of responsibility from our leaders in Washington. This is not about partisan politics. The answer isn't a political agenda. And it is clear that there are differing opinions about the adjacent social and public policies that guide our nation, but the issue of fiscal responsibility transcends those issues and amounts to a core shift in how we do the business of government, and ultimately in the end how strong our nation will remain. Peter White, in an article you can also download here speaks eloquently and forcefully to this issue in his article that appeared this past Friday in the Atlanta Chronicle. I encourage you to read this as well: We Did It In 1941 and We Can Do It Again So, What to do? Howard Schultz, CEO of Starbucks, according to an editorial appearing in this past Saturday's New York Times ( www. Nytimes.....) suggests that we all boycott all campaign contributions. As CEOs and business leaders we can send a loud, clear message. Not by hedging one candidate over another - but by stating with our checkbooks that the political wrangling amounts to incompetence and is wholly unacceptable. If you are politically inclined, send a copy of the USA, Inc. to your elected officials in Washington - and let them know this is not only how you feel, but something we need them to act on. It couldn't hurt. You can also share this with your colleagues, friends and your employees. Education about this issue is the first best way to begin to solve it. On a less political note, look at your company, your personal finances and your employees needs. Anticipate what would happen in an environment of higher interest rates, higher income taxes (both will undoubtedly be coming) and even another recessionary period on the horizon. I can't predict the future -but having our "houses" in order ahead of time is just prudent and sensible. Educating your workforce to protect themselves financially is as much a benefit to them as it is to your company. I also have long suggested to the CEOs who are owners of privately held companies to diversify their personal assets and income potential beyond the companies you run. While your own company may indeed be an investment you feel you can control, and that demonstrating faith in your own leadership with plenty of skin in the game is both important and a good thing, the truth is that too many of us leave our families vulnerable to economic or market conditions that can undermine the value and even the sustainability of our own companies. It's not a matter of "playing it safe" - it's just being sensible. This is something I speak to from personal experience. If I seem at all pessimistic in my views today, I am sorry. In truth I am entirely optimistic. I believe the solution to the problems we face today reside in the experience, insight and resolve of the people who contribute more value to our great nation than any other sector of society: the men and women to lead our small and mid-size companies. For it is in these companies that we drive innovation, grow employment, strengthen our communities and make America strong. As always, wishing you a great and successful week ahead. 
Philip R. Liebman Managing Director, Strat4 Group Chair, Vistage International | 
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