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Read about how to stay on track with your goals for 2009 in this week’s issue of our e-zine, Executive Insight Tip of the Week.

I was speaking with the managing partner of a law firm about managing expenses during this recession, and I was impressed by his rare combination of business acumen and sensitivity to people issues.

The specific issue was that his CFO is on a slash and burn tear, wanting to cut expenses without regard to context.

In particular, it was clear that the CFO was in the dark about the “back story” behind the human capital that he recommended cutting, while the MP was aware of all of the nuances.

Of course it’s important to manage expenses during this environment – frankly, we should manage expenses in the good times as well – but you can’t make cuts without truly understanding what you’re cutting and what the implications are.

I know firms that have cut reactively so close to the bone, that when the recovery comes, they will pay a price to catch up.

It’s not just about the numbers – it’s what’s behind the numbers.

I had a routine check up with a doctor today and upon walking into the office, learned he had retired. I knew that he was retiring eventually because he had brought a younger man into the practice last year. What I didn’t know was that the transition had actually happened.

Apparently, letters had been sent to patients several months ago, including an invitation to a farewell gathering.

Clearly, the intent wasn’t to ignore me – I’m sure my letter got lost in the mail – but I felt like something big had happened and I was the last to know. After a 25 year relationship, I arrived at the office to find out that someone else was my doctor.

I’m sure that the new doctor is competent and high skilled, but that isn’t the point.

• Why didn’t the he send a letter welcoming me to his new practice and say that he was looking forward a relationship?
• Why didn’t the receptionist say something when I called to make the appointment?
• Why didn’t the nurse say something when she took my vitals?

We know that one touch isn’t enough. It takes time and effort to acquire new clients, and when succession occurs, the cost of making the transition work well is much less than the cost of losing prior clients due to careless oversight.

Yesterday I made a presentation at the New York City Bar Association on time management and technology. It was attended by about 30 solo practitioners. In a survey of the participants, we learned that the most important time management issue was doing everything themselves.

This is a critical issue for all solopreneurs, microbusiness owners, as well as small business owners with small staffs. The familiar refrain of “I can do it faster/better/easier” results in serious problems.

If you are the talent, the rainmaker, the client server, you can’t take time doing things that could be done more effectively by support professionals (who typically do those tasks better than you do anyway). Holding on to every function in your business or practice is an ineffective use of your time. Here are some things to consider:

• Identify what you could delegate, if you chose to do so
• Identify resources that you can ask for help
• Track your activities for a week, and you’ll find even more things to delegate.

This will be the topic of an upcoming issue of Executive Insight, so stay tuned! And thanks to Dave Rosenbaum of Real-Time Computer Services for inviting me to make the presentation.

This is a great time to cultivate new business relationships, even though there may not be immediate opportunities to work together.

Take a genuine interest in the people you meet now. Be curious and thoughtful of how they’re responding to current challenges. They’re experiencing the same pain that you’ve seen in your own companies and with your clients.

Give them a reason to open up to you, and you’ll open the door for a future alliance.

A friend is struggling with a big decision about his professional future. He believes that even without the recession, his firm is existing hand to mouth and has a limited future. The CEO doesn’t have great business savvy, and ineffective decisions made over the years are coming home to roost now.

In spite of this, he has great loyalty to this company, and especially to the CEO.

Every word out of my friend’s mouth suggests that the best thing for him to do is to find another job where there is a better professional fit. And yet, he is paralyzed in the decision process, because he is living in his comfort zone.

Both my friend and the CEO of his company are making bad decisions. The CEO in the past, and my friend in the present, are making decisions based on emotions, not on what’s in his or the firm’s best interests.

A challenging environment requires crisp, objective decision making. Hoping for the best is a shaky strategy in the best of circumstances, let alone now.

I’ve just completed a special report entitled Recession Busting Tips – 21 Ways You Can Turn Around What You Do and How You Think During a Downturn.

You can get a copy by clicking the box next to my picture on this page and signing up for our Executive Insight Tip of the Week e-zine.

Today I spoke with a leader of a mid-sized company, who shared that the owners of his firm had their heads in the sand (my words, not his). They’ve taken perfunctory measures to deal with a meaningful drop in revenue: they’ve laid off people; they’ve reduced salaries; they’ve given the pep talks.

But what they aren’t doing is looking to the future and thinking strategically about how to get out of the hole that they’re in. This particular leader is enormously frustrated because he has spoken up and recommended several strong ideas, and is basically being ignored.

I think the owners are avoiding the ideas of this leader because they’re terrified of going out of business, and the course of “no action” is the most comfortable.

Inertia can feel comfortable, but it’s a disaster when revenue is down, cash flow has dried up, and key senior staff members offer help but aren’t being heard. Action always trumps inertia. If you’re in a situation like this, doing something is always better than doing nothing.

A lot of companies have made the decision to avoid downsizing through a reduction in employee salaries or realignment of responsibilities. These situations can be just as difficult as downsizing, because the employees worry about the next shoe dropping.

Leaders can do several things to manage these situations:

• Be transparent. For example, telling your staff that revenue is too low will help everyone understand the justification for salary furloughs. They may be upset, but they’re likely to be more grateful about having jobs.
• Be honest. If the cuts aren’t over, don’t say that they are. Tell your people that for now things have stabilized, but xyz needs to happen in order to turn the tide.
• Be sensitive. When certain jobs are realigned and de facto demotions occur, do what you can to reassure these employees. These people are hurt and embarassed, and as the leader, you set the tone for dignity and respect.

In our office, we get a little crazy setting goals. One of the things that we’ve learned is to set realistic goals, as opposed to overly aspirational, out-of-sight goals. We post and track our goals. In fact, every time we achieve one, it’s cause for a little victory celebration.

I know a lot of business owners and executives whose goals are “in their heads.” They may be able to achieve them without the posting and tracking, but they’re missing the celebratory moments that the team shares from the ongoing recognition of accomplishments.