Are you, or your clients, in a "doom loop"?

"Doom loop" is my new favourite phrase (I've cadged it from US consulting alpha male, Alan Weiss).

It's that cutting back on essentials "because of the economic situation" that in turn makes your own economic situation worse, not better. I was talking to a paper recycler a couple of weeks ago who explained that demand for pulp was down as "people weren't advertising anymore." What?!! Either advertising works, in which case you should do more of it to see you through the downturn, or it doesn't, in which case you shouldn't do it anyway.

I'm finding this with private sector prospective clients. We talk through what they need to do, what savings it will deliver, agree a price and then... nothing. It often turns out that some redundancies have been made and there is a perception that getting a consultant in would be insensitive. What?!! Only if you see a consultant as an unnecessary luxury in which case you shouldn't be employing them anyway. If the consultant can protect your business by cutting costs and delivering positive competitive advantage, then get them in! Quickly! (I would say that, I know...).

I'm not saying it's easy - I've invested a stack of money in personal development this year to beat the recession and, while it is working, the decision was a very difficult one to take. I've got an invoice for next year's subscription to the ENDS Report in my in-tray - very pricey for a magazine, but what use am I uninformed?

Anyway - here's a great article on why you should innovate your way out of the recession. Keep out of that doom loop!