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Article
The Learning Experience
By
Ron Zimmer
Senior Consultant
The past 18 months have been a
learning experience for us all. (A gross understatement for some.)
When it was personal, some of it was hard learning―tough
love. At other times, it was observational learning
. . . as in, glad I didn’t do that.
We saw that
dramatic change can happen. Giants can fall, personal wealth can
disappear, unemployment happens, and survival can become a priority.
We have been reminded that economic cycles are still a reality. And
looking back now, some of the indicators are so obvious―inflated
oil/gas prices, the real-estate bubble, sub-prime mortgages, default
swaps, and so on. For some, it confirmed their “I told you”
warnings. For others, there has been a loss of innocence.
So, what have
we learned? I’m sure the list will vary by individual, but for me:
Ethics are
important. They always have been. We are in an industry where
confidence, stability, and trust are critical. Personally, I am
angry that a few people and companies have tarnished everyone’s
reputation. We must do better; our promises must be sincere.
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Understand risk better.
Charts, graphs, and analytics are not always enough. Ratings
agencies are not sufficient. We still need to factor in human
behavior (good and bad), use common sense, and realize there are
still more unknowns. Consider the bigger picture; a more
holistic view. Include the short and long term, the local and
international, and other possible scenarios. |
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Our customers have changed.
Some have less to spend; lots have higher expectations and more
choices. Many are skeptical and all have better access to
information. More customers are nearing retirement, and the
younger generations are technologically savvier. In some areas,
minorities are becoming majorities. We need to constantly
evaluate their needs and wants. |
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Balance is important.
Investments should be stable and diversified and returns not
taken for granted. Being in a single marketplace is more risky
than having several growth opportunities. Life is short and
should be about more than the office. |
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We have learned to manage better.
Overall, managers are more thoughtful about making decisions.
They are requiring real cost-benefit analysis. They weigh
consequences, trade-offs, and doing without. Many organizations
have learned they can live fine on less. |
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Be prepared. Never
underestimate Mother Nature! The Gulf Coast storms, Haitian
earthquake, Iceland’s volcano, and Nashville’s flood are just a
few examples. We provide a valuable service to our clients in
helping them protect their assets. Helping our family and
neighbors is our personal contribution. |
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Don’t panic. Be
patient. Hard to believe in the darkest of times, but cycles
have downs and ups. Brace yourself during the fall and prepare
for when things get better. It looks like the economy is
recovering: get ready. |
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Be grateful
that it was not worse.
Appreciate each day. Love your family, appreciate your friends,
and value your customers. We are all in this together. |
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