I heard the phrase ‘running hot’ used for business the first time in 1998. We had started an internet ASP, had a great name and had acquired a large number of eye balls - visitors. Uniquely we were charging and receiving money for our solution. A Board Member suggested it was time to run hot, that is to bring in more investment dollars and increase the spend on marketing and sales.

Venture money was available but required a detailed plan on how exactly the money would be spent and how we would increase revenue with a specific date to become profitable. With the plan in place we were successful at ‘running hot’ we took the company International. At times, borrowing dollars to fuel growth works.

Our government is borrowing and investing large amounts of money intended to drive and rebound our economy - ‘running hot’. Our deficit is rapidly rising and unlike the Venture inestment that is written off due to failure, the dollars the government borrows must be repaid. And so they may, at least we all hope so. The elephant in the room is the question, exactly how do we pay the debt back? What is the specific plan? As business leaders we must ask the question just as we would for our own businesses. And if the answer is not complete or if it doesn’t make common sense we should react accordingly and fire those who put us in this situation.

By Patrick J. Swanick

Reprinted from Directors Monthly with permission of the publisher

©2008 National Association of Corporate Directors (NACD)

1133 21^st Street, NW, Suite 700, Washington D.C. 20036

www.nacdonline.org

 “The last few months have provided many lessons for good governance. The author, Patrick Swanick, a CEO and director, shares practical guidance for directors to earn and maintain the trust of their shareholders, participate in active oversight, and sustain and grow their companies in the marketplace.”

Read the full article…  

Patrick Swanick is currently CEO, Investor and Board Member at Gila Corporation. His 26 year career in the financial industry includes past CEO, executive and director positions with companies of all sizes. I recently met Patrick and found him to be a thoughtful Executive steeped in a deep understanding of the financial services industry who exuded the aura of integrity and ethics.

As executives we face a tough 2009 market. Yes, the economics appear to be unique but the reason we are here is based on a lack of ethics and integrity, we are here because of broken morals. Face it, Madoff to Wall Street to K Street – our moral foundation has a crack and as business leaders we have to fix it. By the way, this has been going on for 20 years…read “Liar’s Poker” by Michael Lewis. It is time to pay attention to history and stop repeating mistakes.

Patrick shared an article he wrote recently for ‘Directors Monthly’. I have received permission to share with you and have attached as a PDF for your review. I strongly recommend you download and take the time to read. Patrick has written for directors, but as executives and investors it is imperative we understand what our directors expect. I know that I expect more searches in 09 for directors with strong financial ability, proven corporate leadership skills and above all proven ethics.

Thanks Patrick.     

Read the full article…

Vote for the right reason. Vote for the candidate you feel will serve our country by defending our turf, our economy and our desire to succeed. Barriers to business including increased taxes and regulations managed by the federal government decrease jobs. Removing barriers, allowing business to thrive creates jobs. Proven - simple.

And whether we wake Wednesday morning to President Obama or President McCain we must find ways to come together a support our leader.

Good Luck!

“Government is like a baby: An alimentary canal with a big appetite at one end, and no sense of responsibility at the other.”  Ronald Reagan

According to most polls the United States is about to experience a cultural change to the liberal left. Liberalsm historically means more government intrusion and management of our lives. And our government’s track record of managing large initiatives successfully is not a good one.

Will we really change? If Congress, the Senate and the White House all go Liberal, we will. Will the change be as dire as some predict? Again, it is difficult to imagine the government successfully managing so much of our eonomy and our lives.

Reagan was right most of the time. As executive leaders we should all carefully consider the proposed changes before us and vote according to what we believe is best for the USA.

As I write this morning the US stock market is up over 5%. After suffering through the past two weeks there is hope the trend holds. But we are looking forward at a new financial landscape of decreased savings, increased US government financial regulation, tighter international monetary controls and uncertainty the changes and intervention will return our economy to what we have known and expected for so many decades.

Our country has experienced uncertainty before. Our forefathers must have taken a deep breath when they signed our Constitution flaming the ire of England. Lincoln spent many sleepless nights as he saw countless numbers of our men shed blood for the rights and equality of all men. The men and women of our country shuddered with fear as they learned of the devastation of Pearl Harbor and the list goes on. We have faced trial before and we will face trial again. It is life.

As leaders we should remember what kept our country moving forward in the face of uncertainty. It was the certainty of self and faith. In the face of change we must look in the mirror, smile and understand that it is up to ourselves to make our world work. Our culture has come to depend on government to solve all problems and frankly they can’t and as we have learned we can’t always trust the motives of our politicians. Luckily our forefathers understood this and established checks and balances so we could ensure self rule and self worth. We must rely on self and not forget our constitutional framework or the responsibility we all hold for making our systems work.

All those mentioned who have led or participated in meeting uncertainty head on had faith. Most carried a deep faith in God and all had a deep faith in the outcome of right. All people…liberty for all…equality…fairness…and that the power of our people must be certain.

When life is uncertain, be certain in your self and your faith in right. Our country has been built on this foundation. It feels that we have lost this understanding some in the recent past but the majority understands and holds it well.

I’m certain.