Are things getting better?

People ask me all of the time, “How is business and do you think the economy is getting better?” Based on my interactions with professionals and leaders and through my assessments of their businesses, I believe activity certainly has picked up. Managers are focused on making things happen at their companies. Many companies have already shown improved results from last year and expect better profits year-over-year. And many tell me they would describe 2010 as a “good” year.

Yet I am still hesitant to say, “Yes, the economy is improving”. There is still a guarded sense about making decisions. Even when decisions are made, the process is elongated. There is an uncertainty regarding the sustainability of their positive results. My personal observations seem to match the economic polls which measure consumer confidence. The Conference Board Consumer Confidence Index® which had been on the rise for three consecutive months, declined sharply in June. My financial advisory clients are disturbed by the continued high stock market volatility. The specter of higher taxes, a growing budget deficit, and continued high unemployment levels shapes perceptions of my clients, prospects, and friends. I also meet with executives in transition all of the time and several have landed good jobs recently (but new members of the clan are still joining). New college grads (including my son and most of his friends) are unemployed in droves. And almost nobody (I know one lucky person) is leaving a job for a better opportunity.

All of these factors conspire to temper good results and positive signs with the overall malaise of uncertainty. As a result, decision-makers just don’t feel good about the present situation and the challenges facing the economy. Yet, companies are starting to make investments and take on projects important to their success. This year I have worked with companies on initiatives to review business processes, institute training programs, enhance employee self-service, focus on population health, craft benefits offerings, formulate communications strategies, refocus on client engagement, enhance sales productivity, expand to new markets, develop new product offerings, and educate on financial issues. While not all these projects are in place, companies are realizing now is the time to reinvest in their businesses and move forward. So are things getting better? Definitely maybe.