Jim Citrin Leadership by Example

As 2008 comes to a close, "Slumdog Millionaire," the Oscar-contending film directed by Danny Boyle and based on the novel "Q&A" by Vikas Swarup, is perhaps the perfect antidote to the Bernie Madoff scandal and the economic crisis gripping the world.

While the film — which takes place in the most impoverished corners of India — won't put economies back on a growth track, recapitalize the banking sector, or recapture the millions of jobs lost in services and manufacturing, it serves as a poignant reminder of how tough things really can be in the world and what the most important things in life truly are.

Changing Priorities

Over the past couple of months, I've come to the conclusion that as difficult as the current economic predicament is (and how much harder it may still become), it provides the opportunity to reset our values and make necessary but long-ignored changes in our lives and work. That, I believe, is a worthwhile goal for 2009. With the new administration preparing to take over in a few weeks, the zeitgeist is all about getting back to basics and starting anew on a better track.

The era of unchecked consumerism and financial excess had the insidious effect of devaluing everything. Why save money when you could borrow to get whatever you wanted? Why hang on to clothes and appliances when you could just go to the store and buy new ones? Why make structural improvements to your business operations or deepen customer relationships when you could push more stuff to get the growth that Wall Street demanded?

In one fell swoop, these attitudes have ground to a halt. They've been replaced by millions of healthier conversations in conference rooms and around kitchen tables about how to save, conserve, and prioritize.

Making the Best of Bad Times

So, with all due respect and sensitivity to the devastation that the loss of jobs and savings means for retirees, workers, and families everywhere, I believe there's a genuine silver lining to this storm. While it's surely going to be a challenging year ahead, the question is how to turn the crisis into an opportunity. Here are three suggestions:

1. Take a fresh look at everything you do.

Replace some of the extraneous activities that have filled your time and refocus on making concrete improvements in areas where you may not have had the time or the will.

As an example, a president I spoke to recently has led his organization to carefully assess the company's current energy use and is implementing plans to maximize efficiency while minimizing the impact on the environment. By reducing energy consumption on the one hand — through changes in equipment and infrastructure — and increasing awareness of the importance of conservation on the other, the company has reduced consumption by over 10 percent from a year ago.

2. Re-engage with your customers and clients.

Take the time to truly understand what's important to them. Communicate with more empathy, authenticity, and consistency. Develop more compelling value propositions. I was struck, for example, by how one company has shifted the message of its marketing communications from its state-of-the-art products to how its offerings fit into improving family relationships.

You can write that off as simply an obvious adjustment of advertising to match the tenor of the market. But if these and similar attitudes are reflective of how people actually think, it will position you for improved business down the road.

3. Improve your organization and culture.

Rather than merely laying-off workers and ceasing new hiring, some companies are strategically assessing their talent needs and taking action. They are pruning the ranks of less productive employees and selectively recruiting stars that may have otherwise been impossible to bring on board in the past. Others are dedicating themselves to working together more constructively.

One CEO I know of wrote a communication to his entire company community laying out thoughtful plans for controlling spending this year and streamlining next year's budget. "Our ability to work together cooperatively and to show good will and thoughtfulness in the way we adjust to our new reality is a measure of our strength."

That is a powerful and productive message for 2009.