Equal time
2001's year-end reflections more somber
East Bay Business Times - by David Goll
When events are so dramatic they cause an existential crisis for millions of people who only witnessed them on television, it's time for CEOs and senior managers to take stock of both their personal and corporate missions, business consultant Barbara J. Chan says.
With the start of a new year, Chan says it's a natural, as well as an appropriate, response to the Sept. 11 terrorist attacks that killed thousands and accelerated the downward spiral in the American economy that have made many people closely examine the paths of their lives.
"I spoke to a gathering of insurance industry people 10 days after the attacks," said Chan, who established the Barbara Chan Consulting Group in El Cerrito in 1986. "People came up and talked to me about how they were questioning the meaning of life and why they were in their particular business. Frankly, these are questions they should be asking themselves every day."
Since then, Chan has worked with such companies as Charles Schwab & Co. Inc., as well as UC-Berkeley and the University of California president's office to develop new business strategies and employee-friendly policies that make sense in a recessionary, post-Sept. 11 economy.
"I make a distinction between reacting to events and what I call `response-ability'," she said. "The latter is the ability to think critically about business decisions before taking action. Many companies over the past year have been simply reacting to the stock market. They don't stop to think critically whether they should go forward with a project, for example, based on sound business reasons."
Among her urgings to company leaders is the need to reassess the needs of their employees and clients, emphasize sound growth strategies over short-term profits and balance business needs with environmental stewardship.
And even if terrorism wasn't an overriding concern, Chan says it would still be a good time to reevaluate the paths many Bay Area businesses have taken over the past decade. The collapse of many dot-coms and the financial misfortunes of comparatively large and well-established technology firms make it imperative.
"People starting new companies with little or nothing in the way of a business plan were interested in making huge profits in a short period of time," she said. "Venture capitalists poured millions of dollars into these questionable business ventures."
But it wasn't just the newcomers who made a lot of missteps, Chan added.
"You saw the same thing happening with large companies, too, when they jumped into e-commerce and thought all they needed to do was throw a lot of (information technology) guys at those projects," she said.
Chan says companies like Schwab, known for its sensitivity to employee concerns, will continue to do well, despite economic challenges that could last well into 2002. When Schwab ran into financial difficulties and decided to lay off staff last year, Chan said the company conducted the "most compassionate downsizing" she had ever seen.
"They didn't lay people off on the basis of seniority, but on the skills needed to keep the company going," she said. "They offered a great severance package and outplacement services, and are giving those employees the first rights to rehiring. Managers met with their employees face-to-face to tell them the news, which is really important."
Pleasanton-based PeopleSoft Inc., one tech firm that has managed to avoid layoffs, is starting the year with a slow return to some sense of normalcy, Jim Heffernan, the company's manager of health and welfare benefits, says.
"Our people seem to be getting back on track and refocusing on the goals of the company," Heffernan said. "After all, in tough economic times, you want the company to remain as strong as possible so we can avoid things like layoffs.
"It's a balancing act, but life goes on. We have a business to run, too."
He said PeopleSoft officials have been understanding about employees who've been reluctant to travel or wanted to spend more time with their families over the past few months.
"I think it's a normal reaction to be reflective in times like these," Heffernan said. "We've all been reexamining our priorities."
Equal Time explores workplace issues. To comment or suggest stories, contact David Goll at dgoll@bizjournals.com or 925-598-1436.
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