It doesn’t matter if you are a corporate executive, own a business or are an employee, business has changed. During the past year we have all heard people say that they are anxious for things to get back to “normal” or “to the way it was”. This is the new norm. Things are different and they will continue to evolve.
During a meeting this week, an executive complained that as the CEO of a publicly traded corporation he must sign the financial statements each quarter. He remarked “do you realize that I am not signing as the CEO, but I am signing personally that the financial statements are accurate?” He continued “every time that I sign those documents my house and personal property is on the line”. He was complaining about Sarbanes-Oxley (SOX) requirements and other regulations put into effect as a result of Enron, WorldCom and other companies that misled their investors. In effect, he was complaining that he has to do his job to make sure that the financial information distributed by the corporation that he runs is, to the best of his knowledge, accurate.
Another change is the reality of high unemployment rates. A government report this week suggests that unemployment will stay relatively high for quite some time and that it will take until at least 2018 for unemployment to decrease to the 5 to 6% range. Further, the new employment reality suggests that over the next decade many employment opportunities will be project based rather than ongoing employment. There will be more solo businesses, consultants and independent professionals. People will continue to change jobs and change careers more frequently. Further, many benefits will change significantly; as independent contractors many will not have paid holidays or paid vacations, and health insurance will become more difficult to obtain.
A third sign of change and the need for us to adapt is the reality that the US position as the top economic power continues to change as that power and influence transfers to the new economic powers. This is a concept that will be difficult for many Americans to fully grasp. In 2008, the President advised Americans that the government needed to make loans to US car companies, banks and insurance companies in order to avoid certain economic catastrophe. While many of the banks have repaid significant portions or all of their loans and many have returned to paying high bonuses, General Motors (GM) sales are improving but the US government still owns 61% of the company.
GM is planning to sell more than $1 billion worth of shares in the Middle East and Asia and China’s largest car company is negotiating to acquire a stake in GM. As a result, the US governments stake in GM will be reduced to approximately 35% but the fact remains that a significant amount of the stock will be held by SAIC Motor Corp and Middle East and Asian investors.
Most people have a preference to keep things the way they are and they have a natural resistance to change. That is one of the reasons that change initiatives in organizations fail more often than not. The most successful change initiatives often occur when the stakeholders are all fully informed and they agree to adapt. Regardless of the change taking place, whether it be a change in employment opportunities, the skills required to perform a job, the benefits offered, the requirements for a business to act ethically, outsourcing of jobs, or foreign investment/acquisition of US businesses, the businesses and individuals who assess the new opportunities and adapt will be the ones that succeed.
