As we go deep into the fourth quarter of this year, I'd like toreflect upon lessons learned as well as thoughts for the new yearand beyond. This morning, after Thanksgiving Day, I walkedthrough my rose garden. In some strange way, there were stillroses in bloom, unlike most species whose leaves and stems were nowon the compost heap.

If you are like me, you're looking back and asking, “Where didthe year go” or even better, “What happened this year andwhy?” For me, the world came into sharper focus based uponour client work in Europe this year, requiring travelling to the UKonce a month. This experience has broadened and crystalizedmy evolving world view and perspective

Mankind has evolved through the Stone Age, the Dark Ages, theIndustrial Revolution, the Technology Revolution and now thecommoditization of intellectual capital being driven by technology— once again changing the way we live, work, think andbehave.

People 200 years from today will look back on this era as aprofound turning point in society. This period of compressionand de-leveraging is unparalleled. In the five years before2008, U.S. housing prices appreciated 100% — creating a totallyunsustainable economic model and unsustainable consumerexpectations.

This era of transition and deleveraging will continue for atleast another two to five years. People will be under intensepressure economically, socially and spiritually. To surviveand prosper, each of us will have to answer the question, “Can welearn as fast as the world is changing?” – a very challengingthought with serious consequences.

In response to this question, here are a few recommendations forthe new year:

1. The genius of Steve Jobs left us the legacy to continue toinnovate and create. Leaders need to invest in new technologythat accelerates the sharing of information and the creation of newmember and employee value.
2. Recognize when people are resistant to change. Don'tsacrifice any organization to provincial thinking or behavior thatencourages silos.
3. At a recent board meeting when discussing how to ensurecontinued growth, an employee asked what we had done at our firm tobe up 51% in top line collections, down almost 30% in expenses andup almost 73% in net income. Provided below is myresponse:

• At our board meetings, we asked important questions about howto identify new opportunities for growth. This changed theculture and tone of the company to focus on opportunities forinnovation and to aggressively and relentlessly pursue new marketsand new people to work in the firm;
• We listened to one board member, Liz Levine, our 26-year-olddaughter who represents a different demographic , to change ourwebsite and our marketing approach;
• We instituted new systems that ensured transparency andaccountability in the internal operations of the company, resultingin controlling profit margins;
• Culturally, we enforced our ethics policies which gave us theconfidence to make difficult business decisions;
• Based on these seismic changes, we began to attract moreenergized, high level thinking people who were being worn out withlarge competitive organizations consumed by bureaucraticthinking;
• We continued to start every conversation by asking what is bestfor the client;
• We invested in new initiatives that did not pay off right away,but simultaneously focused on content development, partnerships anddistribution channels;
• We traveled to over 20 cities and attended over 15 to 20learning seminars that were formative in our strategic, leadershipand governance thinking and helped us to develop an edgy point ofview;

Engaging with technology has provided a greater understanding ofthe profound change in the world. Seeing things in a globalcontext has created incredible learning and value for ourclients. Attracting courageous people with strong characterand the will to learn is invigorating. The era ofentitlement is over.

“Culture” appears to be the next “buzz” word. But dopeople really understand what it means? Culture is one action at atime. And it's hard. It's hard to honest. It'shard to challenge yourself when you are exhausted. And it'shard to continue to grow.

Some of the most successful people we know have said that thelast year has been the hardest of their entire career. Theyhave had to re-invent their businesses and navigate extremelychallenging waters.

This is what it takes today. Sorry, but it's the honesttruth. Get ready to rumble in 2012.

Stuart R. Levine is chairman and CEO of Stuart Levine &Associates LLC, a strategy, leadership and governanceconsulting firm.