It is an interesting fact about economic downturns; issues that tend to be glossed over in good times now become financial hindrances that must be addressed. General prosperity sometimes underscores the ease that accompanies the desire to avoid making difficult decisions.

It is as if the good times provide a false sense of security for many organizations until the stark economic reality of the marketplace removes any illusion.

These difficult decisions almost always involve people, and therein resides the entrepreneurial dilemma. Entrepreneurs, given their natures, are generally positive, high-energy folks, typically seeing opportunity where most see doom and gloom. Their mantra of “When in doubt, sell harder” serves them in good stead in the marketplace for two main reasons.

The first is their ability to control and affect their definition of “selling harder.” The second is that their competition generally is retreating in the face of tougher times. Unfortunately, this inherent positiveness sometimes extends to their skill in personnel selection with disastrous results.

Successful entrepreneurs tend to be optimistic individuals and this optimism extends to their belief in the positive qualities of their employees. Theirs is often a shared bond of surviving growing pains with a subsequent camaraderie that cannot be ignored. What is overlooked, however, is that one aspect of surviving the growing pains is the continued demand for skill improvement and enhancement.

When an employee does not have the talent or desire to continue down this path, then the dynamic forces of the marketplace make the old skills obsolete. The interesting point here is that this is true for hourly employees as well as managers.

Successful entrepreneurs intuitively know that their ability to sustain their success is to always stay ahead of understanding and meeting their customers’ needs, better and faster than their competitors.

Most also intuitively know that this requires them to constantly challenge themselves in all the aspects of their business to stay ahead of or at least be current with trends and technological developments. So busy are they with the intensity of meeting this dual challenge, they often neglect to ensure that others are also so engaged.

Again, as long as things are going along OK, the neglect doesn’t appear to be a major problem. But with any market tightening comes intense scrutiny of capabilities, and then reality sets in.

Some entrepreneurs like to optimistically assume that with just a little time and a little training these historical neglect issues will go away. Please be advised, they will not.

The type of employees required to survive in today’s hypercompetitive environment are the ones who understand that their personal job security is also their personal responsibility. They are the catalysts for their own ongoing training to contribute their fair share to the organization's success.

Releasing folks to the marketplace is never a pleasant task. Two points, however, may help with a little urgency and perspective. The first is that your company's success is wholly dependent upon talent. The second is that only through talent can you guarantee anyone’s job security. A tough decision is still a tough decision, but now you know that you are making it for all of the right reasons.

John F. Riddell Jr., director of the Center for Entrepreneurial Growth-Hamilton County, writes each Tuesday about entrepreneurs and their impact on companies and the marketplace. Submit comments to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at business@timesfreepress.com.

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