Today, I spoke with a seasoned collections executive who called to collect money from my client……
Among other things, he told me that this year he has had three times as many clients but collected only half as much money as he has in other years…..
This question popped into my mind today: What would be the impact on the U.S. economy if most businesses were run efficiently instead of inefficiently?
It’s a question I’ll be thinking about and writing about–but probably not for a while because I just started a new Interim CEO engagement and will be extremely busy for a while…..
If you know me, you know I love being right, but lately, I wish I weren’t right so often.
When The Oregonian, interviewing me for a story about the Joe’s bankruptcy, asked whether I thought Joe’s could survive and/or might be sold to another company, I said, “No.” Yesterday, Joe’s started liquidating.
The evaporation of so many retailers is a scenario being repeated too often for three key reasons:
Perhaps, as a result of the current economic environment, we will see a return to good customer service. I’d really like to be right about that!
Thursday and Friday, I attended the Women’s Private Equity Summit (300 women and one very brave man). The conference covered the same kinds of topics that any current private equity summit would cover. Panelists talked about the impacts of uncertainty and where opportunities lie, even in the current environment.
Two comments struck me as being noteworthy:
One panel moderator asked, “How important is diversity in private equity recruiting?” Although most people immediately thought about race, gender, and “ethnic” diversity, one very insightful audience member pointed out that for the same reasons that private equity firms reduce their financial risk by diversifying their financial portfolios, such firms (or for that matter, businesses, in general) could further reduce their risk by ensuring that their teams include a diversity of skill sets and perspectives–regardless of race, gender, or ethnicity–so that multiple views would be more likely to be considered.
On a slightly different topic, another observer pointed out that women have been conspicuously absent in the leadership of the well-known failed and failing business enterprises that have led to the current economic crisis.
A friend sent me an interesting—if depressing—presentation about the economy (past, present, and future) that was made by Alchemy Partners to a turnaround group in England. To view the presentation, please click here.
What we are experiencing is nothing less than a restructuring of the U.S. economy.
In some ways, it is like the country is in Chapter 11. Some assets are being sold; some, liquidated.
One thing is very different from a Chapter 11, however: There are no rules for this kind of restructuring.
This week, I met with a potential client–clearly a really nice guy–who has run an exceptionally successful business for over twenty years. His company is widely recognized as the industry leader in its segment. The facilities are clean and well-run, and the workforce is loyal because the owner has always treated them well.
His market has suddenly declined by 50% because of “the economy;” i.e., forces totally out of his control.
Don’t we all wonder why companies that have been mismanaged are getting “bailed out” while those that have earned the right to be saved are hanging by a thread with no government help in sight?
Something is wrong with this picture!
