“This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”

Those words, uttered by Franklin Delano Roosevelt in his first inaugural address in 1932 as the country struggled to emerge from the Depression, stands as a microcosm of our economy today. In the last two days, two CEO’s told me of deep fear for what the future might hold for their companies.

• Will they have to lay off good employees?
• Will customer marketing budgets be slashed further?
• What they be able to keep cash flow up?

In my opinion, company leaders need to take a close look in a mirror. They need to realize that, in reality, they have advantages today that they do not have in a booming economy:

1. A company needs A players. In a booming economy, A players all have jobs and are off the market. Today, they are available.
2. A company needs to gain market share. In a booming economy, competitors are strong and aggressive — hard to combat. Today, they are weak and feeble.
3. A company needs companies to buy. In a booming economy, budgets are flush. Today, budgets are tight, but the pains are greater than ever. Customers will still buy, but the conversation has changed.

This calls for a new and fresh approach. The thinking of the CEO needs to change.

In the interview with Jim Collins in the February 2, 2009 issue of Fortune, it was asked “But in a time of no credit and slowing demand, how does a company afford to bring people in?”

The famed management guru and author of Good to Great answered “(Hewlett-Packard’s answer) was ‘How can we afford not to?’ You have to make the wherewithal. If you do not get those great people, you’re not thinking long term enough. In our long term research…we find that great companies manage for the quarter-century.”

How does a company find the cash to pay A players? Maybe sell some assets — like a corporate jet or the boss’s Range Rover. Maybe bring the A player in as a short term consultant rather than a full-time employee. Maybe outsource some existing services to free cash. Maybe cut some salaries. There are many ways to raise cash. Go talk to your CFO and ask.

In my humble opinion, the questions and thinking need to change. Instead of thinking of how to conserve cash and hold on, the leadership needs to be thinking “How can we use this downturn to seize a strong competitive advantage? How can we find and recruit A players? How can steal market share and drive out competitors?”

Let’s talk. I’d love to discuss my ideas with you. (516) 284-4930 or JeffLOgden@gmail.com.