Monday, March 23, 2009

Reading, Racing and Weck

I'm doing a lot of reading these days...everyday I read the New York Times, Wall Street Journal, Sports Business Daily and many other blogs that come through my RSS feed; I am making my way through Atlas Shrugged (this has been a few months in progress, but one of the best books I've ever read); I read Fortune, Forbes, Fast Company and few other magazines. I read a majority of these items on my Kindle (one of the greatest pieces of technology around) and love being able to have all of this information at my fingertips.
I read a very interesting article in the March 30th issue of Fortune:
Layoffs cost more than you think
Cutting jobs may seem the fastest, easiest way to manage in a recession. But it's really one of the most expensive.

The article goes through 5 ways layoffs are more costly in the long run:
  1. Brand Equity Costs
  2. Leadership Costs
  3. Morale Costs
  4. Wall Street Costs
  5. Rehiring Costs

So while companies think they are saving money now, they are creating weaker work environments and marginalizing their brands, services and value. It will be interesting to follow and see what some of the companies that cut so many workers do when the economy turns around and if they can keep up with those who invested in people and a strong foundation. My guess is two thing will happen:

1. New brands/service leaders will emerge and take market share from the cost dumping companies, and those companies will drive their industries and shape the future of consumption.

2. The companies who dumped people to cut expenses will over-spend trying to regain top talent, creating micro bubbles; those bubbles will quickly burst because recent history will show that in the face of difficulty, they sacrificed the foundation of a company to get by.

Ok, on to the fun stuff...I was back on the bike racing laps in Central Park this past weekend. While I did not win, I did not crash and had a good time while getting in some good speed and intensity training. As always, I took a few flyers off the front of the pack and almost got one solo effort to stick, but I was caught and hung in the field until a group of three got away and no one felt the need to chase. So, I kept blasting off the front to try and bridge and/or get the pack to close the gap catch the break. There was little motivation to catch the break and they made it to the end (just barely).I am off to try my hand at some racing in a different venue this weekend when I head to our home upstate and race Saturday in an event just down the hill. Then it is off to New Orleans for the New Orleans Ironman 70.3 next week; it will be an interesting test and I hope to hammer the bike and survive the run...great strategy eh?

Finally, It's Monday and I'm chilling with Weck. We are 4 1/2 months and one curious dude...nap time is over!

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