Your Own Stimulus Plan – Everyone Takes a Hit

Joseph Bear and Robert Stearns probably believed they and Harold Mayer started a global brokerage firm to live forever.  Bear Stearns is the financial giant that imploded and a year ago was purchased by JPMorgan. From predator to dinner is sort of an odd but accurate look back over the eating of Bear Stearns by JPMorgan.

The Bear Stearns disintegration, now well documented, is, in my opinion, a clear telltale everything has changed severely.  The business climate is volatile.  It, however, is chivalrous.  The change is past tolerances are unacceptable.  The refrain has to be about metamorphosis.

We have a stimulus action plan (yesterday’s post).  The driving philosophy becomes transformation in business practices.  Technology and hunts for new and profitable business models continue with fervor.  There is some genuine new thinking in the marketplace.

It is time, however, to renegotiate old covenants.  Honesty with vendors and business associates about relationships and productivity is fair.  Circumstances each of us face reopens previous discussion and even agreement. 

Gannett Company spread cost cutting with unpaid leave for everyone.  The plan was certainly far more tolerable than termination for many.  Gannett opened a verboten discussion and challenged an agreement.  Everyone at the company took one for the team.

What laws prevent us from what discussions starts re-examination of  contracts.  Is there a better and less costly method to do the same thing?   Do contracts prevent change?  There is renegotiation. 

Discussions revisiting closed topics include everyone, vendors and unions.  Remember everything has changed and every cost demands justification.  Police your plan.

Hard times are here.  Hard decisions are necessary.  Everyone takes responsibility in some fashion.  Minimize the hit everyone takes and I believe there will be surprises in regard to whom is willing to renegotiate.  Everybody wants to survive.  Survival is the purpose of your own stimulus plan.

Broadcast Newsroom Computing adds some knowledge tomorrow.

James Rowe

Rowe and Company, LLC

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One Response to “Your Own Stimulus Plan – Everyone Takes a Hit”

  1. Recent evidence for this tranformation in business practices comes from the G20 and the WBCSD. On the world stage or within individual supply chains, a more cooperative spirit is permeating business relationships. The new economy is facilitating concessions as a matter of mutual self interest.

    http://thegreenmarket.blogspot.com/2009/04/business-cooperation-for-climate-change.html

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