Animal Spirits, the Economy, Attitudes and Business Opportunities

A few days ago--in the last decade--I wrote a post looking at animal spirits and the influence of human psychology on the economy.  (I am now on chapter 11 of the book and it is worthwhile to read and/or listen to.)

Five of these animal spirits are confidence,  a sense of fairness, corruption, money illusion, and stories.  As we now enter the new year and the new decade, we can look for a change in how businesses look at the world.  Confidence was shaken in 2008 and in 2009. 

Many businesses can be poised to take on new business opportunities if they develop a willingness to trust and can find trusted advisers to assist them in exploring the opportunities for change.

Those of us who are in business to provide coaching and consulting services to other businesses are now challenged by the evolving animal spirits of the new economy.  What, for example, are the right fees to charge for professional services?  If we charge what we used to charge, many businesses who could use the services will not think they can afford them.  If we reduce our fees to help businesses experiencing a lower profit-margin, will they realize that these are not our standard fees and, instead, are value-added fees to assist them to grow their businesses and to take advantages of new opportunities?

Attitudes in both business and schools are often resistant to outside coaching and consulting.  Our fee structures are not the same as those many decision-makers are used to.  Some schools develop relationships with local universities or community colleges and work with their faculty and graduate students.  Businesses may have a few trusted advisers they know from their circles of business contacts.

While social networking groups such as LinkedIn may offer opportunities for new connections, referrals and personal networking seems to be the most trusted source for new insights. 

We are still evolving into this second decade of the new millennium.  The concept of animal spirits is important in terms of being aware of the influences of human psychology on business and the economy and in helping professionals working in this economy to have insight into business direction and new business opportunities.

Constructive and Destructive Focus for Action--Building Positive Habits and Attitudes

As I reflect on what I hear and see in news media from around the world and in conversations of the people around me, I am reminded that people develop habits in their focus for action.  Largely these habits can be grouped into one of two areas, constructive or destructive.

It is much easier in video games to create "war" games with a destructive focus.  Taking away an opponent is easier than being able to construct something out of an idea.  Constructive video games are few and far between (at least in today's state of technology).  Movies may have more of a constructive focus, though many of those also focus on some kind of combat--in the old western movies the "good guys wear white hats."

In sports, people are looking for winners and losers with scores as the focus for winning.  In life pursuits it may be more challenging and many people are still looking for "winners" and "losers."

Today's economy in the USA looks at the housing market in terms of winners and losers.  Those who are being forced out of foreclosed homes are looked at as "losers."  While President Obama has several initiatives to help the U.S. economy, one of the initiatives is focused on giving tax credit of up to US$8,000 for first-time home buyers.  In recent news coverage on ABC World News, it showed new home owners closing on a foreclosed home.  The new home buyer is the "winner" and the "loser" is not even on the scene any more.

President Carter and the Habitat for Humanity movement focused on volunteers coming together to build homes for people who could not otherwise afford them.  This is an example of a constructive focus for action.  Volunteers in that movement leave the world a better place than it was before they started.  They are also taking into account "green-initiatives" so that the houses they build are better and safer than the requirements of existing building codes.  I lived in Hollywood, Florida, when Hurricane Andrew blew through in 1992.  Habitat for Humanity homes survived the hurricanes where many of the developed houses did not due to shoddy workmanship of people who didn't think their shortcuts would be discovered.

Another organization with a constructive focus for action is the American Red Cross.  As a volunteer with that organization for 33 years, I can safely say that the focus of the American Red Cross is constructive, helping people in times of disaster and in activities of daily living--teaching swimming and lifesaving and preventing drowning, teaching first aid and CPR and preventing accidents and accidental death. 

As I observe business opportunities and look at the job market in today's economy, I look for opportunities and jobs that have a constructive focus for action.  Our habits and focus will create our attitudes--in the form of a cycle.  If any one of these is destructive, we need to begin to change the other two and our attitudes will change as well.

We build habits as we make our daily choices.  It is up to us to take responsibility for our daily choices and decide to pursue a constructive focus for action rather than to take the "easy way" and choose a destructive one.