It’s the Customer, Stupid

November 06, 2009 0 COMMENTS

It’s hard to believe but 2009 is coming to an end. For many, 2009 can’t be over soon enough. For most businesses, it has been a challenging year. And while we’ve seen a rebound in the stock market, most companies are reporting earnings that, while they beat analysts’ estimates, are still significantly less than they were a year ago.

Many companies report their results on a calendar year, which means they’re in the middle or just wrapping up their budgeting process for 2010. So, as you look into your crystal ball, what are you predicting for the year ahead? Do you see an economic recovery?  What about the so-called “jobless recovery”? How will an economic recovery that doesn’t include jobs affect your business? Will things get better in the first quarter or the fourth? When will corporate spending return, since so many companies are beating earnings estimates by cutting costs?

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Penny-wise and Pound Foolish?

October 09, 2009 0 COMMENTS

I read the other day where Kenneth Feinberg, the Obama administration’s pay czar, is planning on limiting the compensation of top employees at firms receiving large amounts of government aid. Now the initial reaction of the masses might be that this is an excellent decision. In fact, my guess is that is exactly how the majority of voters would react and, since it’s a popular decision, it makes cutting executive compensation in government-controlled firms a very easy choice.

But easy isn’t necessarily right.

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