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 walked through my rosegarden. In some strange way, there were still roses in bloom,unlike most species whose leaves and stems were now on the compostheap. If you are like me, you’re looking back and asking, “Wheredid the year go?” Or even better, “What happened this year andwhy?”

For me, the world came into sharper focus based upon our clientwork in Europe this year, requiring travel to the U.K. once amonth. This experience has broadened and crystallized my evolvingworld 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 compression anddeleveraging is unparalleled.

In the five years before 2008, U.S. housing prices appreciated100%, creating a totally unsustainable economic model andunsustainable consumer expectations. This era of transition anddeleveraging will continue for at least another two to fiveyears.

People will be under intense pressure economically, socially andspiritually. To survive and prosper, each of us will have to answerthe question, “Can we learn as fast as the world is changing?” Thatis a very challenging thought with serious consequences.

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

The genius of Steve Jobs left us the legacy to continue toinnovate and create. Leaders need to invest in new technology thataccelerates the sharing of information and the creation of newmember and employee value.

Recognize when people are resistant to change. Don’t sacrificeany organization to provincial thinking or behavior that encouragessilos.

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. Below is my response.

At our board meetings, we asked important questions about how toidentify new opportunities for growth. This changed the culture andtone of the company to focus on opportunities for innovation and toaggressively and relentlessly pursue new markets and new people towork 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 awaybut 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 global contexthas created incredible learning and value for our clients.Attracting courageous people with strong character and the will tolearn is invigorating. The era of entitlement is over.

“Culture” appears to be the next buzz word. But do people reallyunderstand what it means? Culture is one action at a time. And it’shard. It’s hard to challenge yourself when you are exhausted. Andit’s hard to continue to grow.

Some of the most successful people we know have said that thisyear has been the hardest of their entire careers. They have had toreinvent their businesses and navigate extremely challengingwaters. This is what it takes today. Sorry, but it’s the honesttruth. Get ready to rumble in 2012. 

Stuart R. Levine is chairman/CEO of Stuart Levine &Associates
Contact 516-465-0800 or stuartlevine.com