KDK Musings 10 18 10

For those of you who have read, NEWS FROM...KULPER & COMPANY over the years, I just want to say that my new blog will augment NEWS FROM... and perhaps even allow members of the KULPER contact network ( see the CONTACT tab on our website to sign up) and others who land on our website, to keep in closer touch with me.

Today's news about Citibank is very interesting. After the past two years of the bank's front and center role in the financial crisis, the news that net profits are increasing --despite lower revenues---are being viewed by investors and the general public alike, as yet one more tangible signal that the economic crisis is diminishing. Remember when "We the People" were being told that government wanted to be in charge of the banks, industry and every other aspect of our economy? Socialism was a heart beat away---we were being told that the sky was falling, Armageddon was here and that NLCS games would no longer be broadcast on cable---yes, that last one did happen! Were it not for the backing of the Federal Government during the financial crisis ---led by the unprecedented debt overhang of the general public---and a totally out to lunch regulatory authority---would we be perhaps looking at unemployment in the 20% range and perhaps a full fledged Depression, instead of an early stage recovery?

Now, there are many who will say that the role of Government is to serve the people and get out of the way of progress--oh, and keep taxes low, low and then, lower, too. Others will say that the role of Government is to provide a means by which the average person can be assured of fair access to health care, education and an ever increasing standard of living for every citizen. Personally, I like both arguments. What if Citibank had not been assisted when the need was there? Would we be wallowing in Depression now or standing on the edge of a recovery? Thankfully, I don't know the answers to these big questions....but I do have an opinion. My opinion is that rational people eventually find a reasonable way through a challenge and these same rational people have a way of paying attention to history, follow the law as best they can and believe that the future will be brighter. The American people are indeed, very able to find increasingly better solutions to the problems that are always emerging. In this process sometimes we make the right moves during a crisis and sometimes we don't. Think WWII, or the Marshall Plan, or Viet-Nam or Katrina or the Gulf oil spill---or, so many other moments in history when government was called upon to lead the way. Part of the issue is that the media, in its desire to sell advertising will always hype the negative and play down the positive. Politicians who like to get elected or re-elected, have discovered that negative advertising works better than stating their views, simply and clearly. The founding fathers knew that trick, too--read about the Adams /Jefferson battle for the presidency of 1800. The barbs back and forth were pretty vicious back then, too and they didn't have TV to help them out. So, "We the People" need to take heart in the thought that our collective wisdom will win out (eventually) and that our country will move in the right direction.

I doubt that there will be much front line fanfare about the today's Citibank announcement but, I would encourage you all to pay attention to how the DOW greeted it....today.....and how the DOW will continue to greet similar news about the economic recovery, over the coming weeks. Citibank is not alone, either. GM ---another recipient of "bail out" money is also looking a lot better these days; the shareholders notwithstanding who took a big hit when GM, "failed" and was taken over by the Federal Government as the receiver of last resort. What would have happened had the Federal Government stepped aside and let these paragons of our economy simply go out of business--as some leaders called for? Not a pretty picture.

The excesses of too much debt that caused all the problems in the first place emanated from an unrealistic view of the future---assets would just keep going up in value and even people with no ability to repay their loans would somehow be able to do so--or if they didn't, the lender would still be OK because the underlying assets would only be worth more--and after all don't we want our economy to grow? The SEC, OCC, FDIC mucking around will only restrain trade and create fewer jobs and...and...and...we need less government--and lower taxes --that is truly the answer to enduring economic prosperity! Have we all learned our lesson? Will the excesses of the past keep us from a new headlong plunges into truly irrational excesses? No, I don't think so. But yesterday's financial crisis---that mushroomed only 2 years ago---is not looking nearly as life threatening as it did 12 months ago, or even 6 months ago. That is largely because our Federal Government in a truly bi-partisan and courageous manner did in fact make many good moves--so, let's give them some credit. As president Reagan might ask: " Are we better off now than we were 2 years ago?" Good question: the American people will have a response on November 2. As the IBM motto would say: THINK--and then, vote.

It is a pleasure to write about the big challenges, for sure, but I am running a search firm and perhaps you have important questions for me about the search business. What would you like to know about executive search consulting as it relates to your business or career? I will be glad to respond. I am hoping to update my blog at least once per week---and more frequently, when the muse dictates.

Do you want to know what a search consultant would advise if you are planning to grow your business at this time? How do you improve your chances of actually hiring the "right people" for an expanding business or higher education institution when the need is critical? Would you rather do your own recruiting? How do you know if your efforts are working out? How do you measure the cost/benefit of using a search firm? Have you ever found yourself in great new job that suddenly ain't so great--- after just 6 months?

There are truly endless questions that we can try to address in this blog. The goal of my practice is to be the best executive search firm our clients and candidates will ever experience. We have had quite a few successes and we have learned from our mistakes along the way, too. We want to build long lasting mutually beneficial relationships---and that has happened and continues to happen. So, send in your questions if you wish.

One final word for today. I want to express my sincere condolences to the family of Howard Tuckman, PhD, former Dean of the Rutgers School of Management, Virgina Commonwealth University Business School and Fordham Graduate School of Management. Howard was a good friend and active member of the KULPER & COMPANY Advisory Board. His warmth, kindness and sage advice will be greatly missed. Godspeed, Howard...our prayers are with you and your family.

Peace,
Keith D. Kulper
President
KULPER & COMPANY, LLC