WBJ Business Leaders Navigating Rough Waters
Even for some of the most accomplished people in the Central Massachusetts business world, times are tough. At the Worcester Business Journal's Business Leaders of the Year reception Wednesday night, the honorees discussed just how bad things are and what they're doing to keep their companies strong.
The event attracted about 200 people to the Beechwood Hotel in Worcester and was sponsored by the Clark University Graduate School of Management.
"I've never experienced anything quite like this," said Charles P. Conroy, executive director of the Doctor Franklin Perkins School in Lancaster and nonprofit business leader of the year.
Conroy said the school has been hit hard by state and local government cutbacks and will have layoffs in the next two weeks.
Robb Ahlquist, who was chosen as small business leader of the year along with wife Madeleine Ahlquist for their work as owners of the Worcester Restaurant Group, said business has been slowing since last year. In early 2008, he said a survey showed that 59 percent of people planned to eat out less; that's now up to 100 percent.
Neil McDonough, president and CEO of Spencer manufacturer FLEXcon and the big business leader of the year, said his company and its competitors experienced a sudden drop in business in late 2008. Meanwhile, J. Christopher Collins, senior vice president and general counsel for Unum, which won the corporate citizen award for its work in the Worcester area, said his company has been less affected than others in the insurance industry. Still, he said, Unum expects its growth to flatten out in 2009.
All four business leaders said communication with employees is crucial during a recession.
"You have to be honest but not scary, because people are on edge," McDonough said.
McDonough added that it's easy to overstate the economic situation, noting that 7.5 percent unemployment still means 92.5 percent of workers have jobs.
Collins said the media tends to make the economy look worse than it is.
"Sensationalism sells more than education," he said.
The panelists also said it's important to keep moving forward with new products and continued marketing efforts to get through the bad times and come out stronger when the economy recovers. Ahlquist said the Worcester Restaurant Group is putting extra effort into training to improve patrons' experience and encourage them to visit its restaurants more often.
The honorees seemed largely skeptical about government efforts to improve the situation. Collins said he's worried that the backlash against irresponsible corporate practices could have unintended consequences for companies that have behaved responsibly.
"There's quite an anti-business climate out there right now," he said.
Ahlquist said he's concerned that state measures like a proposed meals tax increase could harm the restaurant industry.
Click here to see exclusive photos of the WBJ's Business Leaders of the Year event.
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