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6. Four generations in the workforce at once

For the first time in the history of the US labor market, there are four distinct generations in the workforce: Traditionalist – born before 1946, Baby Boomers – born between 1946 and 1964, Gen Xers – born between 1965 and 1980, and Millennials (also known as Gen Yers) – born between 1980 and 1999. In a way, this is a bit of good news to balance the bad news described in trend 5 above; the tight labor market presents more opportunities for older workers who might otherwise be pressured to retire before they were ready, which, in turn, gives employers another source for talent. However, throwing together such a diverse group of needs, experiences and values can create unique challenges for any organization striving to hone a competitive edge. Imagine the difference between a Traditionalist raised watching black and white television and a Millennial raised watching 30 second clips on utube. How does selling to each type differ? And how can each type relate to each other?

Managers will have to work hard to help the members of this melting pot labor force to understand each other’s gifts, insights and abilities. The unique perspectives of each generation can enrich the company and add value that will ultimately benefit not only the organization, but your customers as well.

7. Travel budgets will be slashed

The American Express 2008 Global Travel Forecast estimates that business travel costs will rise by at least 7% over the next 12 months. This growing intrinsic cost of business travel is creating concern for CFOs and others who are seeking ways to cut operating expenses and remain profitable under the pressure of relentless competition. Given the global scope of doing business, these increases present major challenges to the company bottom line. As fuel costs continue to spiral out of control, airlines are eliminating flights to cut their own operating expenses, and compensating for fewer flights by raising the price for a seat on a plane that will now be more crowded than ever. This development, combined with the already exasperating problems with long security lines and frequent flight delays, is forcing companies to step up their use of alternative meeting strategies while reallocating the savings to other projects.

Businesses today have an array of effective options for conducting meetings without traveling. Today, anything from strategic planning involving personnel from multiple corporate locations to sensitive negotiations with key clients can now be accomplished from the comfort and security of your own office leveraging web-based collaboration technology. The technology ranges from simple email and telephone contacts to highly sophisticated satellite or web-based conferencing programs. These new options save time and money, which provides valuable benefits in the battle to stay competitive and profitable.

8. US economic growth will slow

While some observers are still crossing their fingers and hoping the economy won’t sink as low as it could, most business leaders are preparing now for the likelihood of an economic slowdown that may have already started and could last at least through all of 2009. There is still a great deal of uncertainty because, even after months of analysis and hand wringing, it is still not clear just how much damage the economy has suffered as a result of the sub-prime debacle. Over $900 billion is tied up in sub-prime loans, and losses are expected to exceed $400 billion. Combine this with the clear threats posed by the worst US housing slump in 16 years, escalating fuel costs and accelerating competition for resources from exploding economies in places like China and India, and it does seem that the drag on the economy is certain to create a domino effect that will impact businesses for some time to come.

What does this mean for your business? Cost of doing business is going up; access to lines of credit will be harder to come by; competition for accounts becomes even more fierce; pressure from customers for you to discount products and services becomes worse than ever; margins are likely to shrink. The profit opportunities will still be there, but they will only go to companies who are nimble, flexible, aggressive, and skilled at partnering with customers in strategic ways that will create real value to help both parties thrive in uncertain times.

9. Good is not good enough

In light of the eight trends discussed so far, trend number nine begins to take on an ominous tone. Simply put, the standards you found acceptable in the good old days are no longer good enough. In the eye of the coming storm, the stakes are too high, the challenges are too formidable and the competition is too intense. You must radically refine your standards to demand more of yourself and your organization. Ask yourself:

• Are your customer relationships strong enough to counter creeping commoditization?
• What is your strategy for effectively responding to customers who are increasingly more knowledgeable, more sophisticated and more demanding?
• Do you have a proven plan to track, identify and respond to changes in customer purchasing patterns?
• Are your sales and marketing processes fully aligned? Are you sure?
• Do you have a specific, actionable strategy for finding and retaining talent?
• How will your organization take advantage of having four generations in the workplace?
• Can you continue to grow your business and receive outstanding results from every department while still reducing travel budgets?
• Most of all, do you have a specific, actionable, proven vision for continuing to grow your business in a slowing economy, when all your customers are talking about doing less instead of more?

These key issues are already beginning to impact the growth of your business, and if you are just now discovering how significant they are, you are already behind the curve. However, the situation is even more urgent than that. Not only is it imperative to address these trends immediately, it is critical that you find outstanding solutions for each one that will set you apart from your competitors and create exceptional value for your customers and your organization. Even above average or excellent solutions won’t be sufficient to keep you competitive in the storm that is already upon us. You must take whatever you once considered to be your absolutely highest standard and drive it higher and farther than you ever thought you and your organization were capable of achieving, and then push that standard even a few millimeters higher.