What if We All Chose Not to Participate in the Recession?

Most mornings, we wake up and feel pretty good...that is, of course, until we turn on the financial news. The doom and gloom pundits are busy spewing their morning chatter: highest unemployment in twenty years; some call for more government stimulus, others say less; some call for bailing out defaulted mortgages, others say don’t. It’s enough to make you want to go back to sleep or have a breakfast of Bloody Marys!

Recently, one of our favorite radio personalities stated that he has decided not to participate in the recession. Now, it’s hard to criticize a positive attitude, but the economic numbers aren’t any cause of celebration. A radio host can afford to be a bit flippant about the economy; after all, it makes for good debate with call-in listeners. But then we started thinking, why not look at the glass as half full? Even with 8% unemployment, 92% are employed; and yes, 7% of mortgages are in default, but 93% of us pay our mortgages every month.

The latest issue of Fortune magazine cites their identified 2009 “100 Best Companies to Work For” (several of which we are proud to say are featured in the revised edition of The Disney Way). The Fortune study is arguably the most extensive survey in corporate America, with more than 81,000 employees from over 353 companies participating. The final decision and ranking are both based on the survey as well as a detailed cultural company audit.

Of these top 100 companies, 70 are now hiring at least 50 positions! The top 50 companies have added over 38,000 jobs in 2008. We know from our extensive research at several of these companies that they are driven by long-term vision, mutual respect and trust, and compassionate customer centric service. We don’t know if these organizations have gone so far as to openly admit they are not participating in the recession, but we do think they see the glass half full, not half empty. Their posture is consistent in planning for long-term growth rather than reacting to short- term fear.

After 9/11, many of the hospitality companies experienced massive layoffs due to the sudden downturn in travel. Isadore Sharp, CEO and founder of the Four Seasons Hotels and Resorts, refused to lay off one employee. Four Seasons is one of the outstanding companies that is featured in the 2007 edition of The Disney Way. Shortly after 9/11, we interviewed Isadore who told us that he has invested a great deal in each and every employee. He went on to say that when the economy picks up, he will need these well- trained and loyal employees to meet the demand. However, Isadore took measures in the short-term to elevate decreased business, but without compromising the Four Seasons long-term future. The company put a freeze on new hires, slowed down or stopped new construction, and encouraged employees to take any accrued vacation. As a result of the 2001 attacks, Southwest Airlines took similar measures without laying off any employees. When the economy did recover, Southwest Airlines and Four Seasons were positioned to best serve their customers. We do not believe it is any accident that Southwest Airlines in one of the very few airlines to consistently generate a profit and that most authorities cite Four Seasons as the best luxury hotel chain in the world.

If you are a business leader, you can learn a great deal from these companies. Instead of reacting to short-term fear, plan for the long-term with cautious optimism.