Page 181 - Accelerating out of the Great Recession

ACCELERATING OUT OF THE GREAT RECESSION

Globalization will not be the only tenet of modern manage-
ment to be redefined. Business leaders will need to reflect on
some of their other commonly held beliefs as they adjust to the
new realities of business life.

■ HONING POLITICAL SKILLS ■

One of the new realities is the heightened involvement—and
intervention—of governments in day-to-day business affairs.
As a result, executives will have to think more carefully about
how to deal with politicians, who are regaining much of the
power and influence they once enjoyed in the corporate world.
Governments not only will intervene in trade and regulation,
but they also will represent a big and growing part of the econ-
omy. In some industries—such as infrastructure, health care,
and energy—good government relations have always been crit-
ical. But this will intensify and spread to other sectors.
Executives in all industries and regions will have to put more
emphasis on government relations—in order to influence not
only regulation but also the scope of future stimulus programs.

■ REVISITING THE SOCIAL CONTRACT ■

It is not only politicians who are regaining the kind of influence
they used to enjoy more than 20 years ago. Workers, too—and
with them the unions—are poised to regain some of their lost
influence.
The threat of globalizing production helped companies to
reduce the power of unions and to put pressure on wages and

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