According to the Wall Street Journal on Friday, October 24^th, former Federal Reserve chairman Alan Greenspan admitted, in front of a congressional hearing, he made ‘a mistake’ in his hands-off regulatory philosophy and this may have worsened the current economic slump in the United States.  He further stated his “shocked disbelief” that financial institutions had failed to protect themselves.

Fortunately, for Alan, he is a wealthy guy and this economic downturn isn’t going to affect the quality of his life.  Finger pointing and passing the blame onto others is a common practice in the halls of Congress (as it is on Wall Street and in corporate America), so it was definitely big of Alan to admit he made a mistake with his policies. 

But what about the rest of us?  We’re the ones who will pay the price for those mistakes. 

It’s true Alan’s ego may be bruised but he can still have dinner at the best restaurants, stay in five-star hotels and travel the world by private jet, if he wishes. 

As business people we seek out the experts in order to run the business in a smart and efficient manner.  These experts often tell us what to do and how to do it.  And because they are experts we accept what they have to say.  But should we be that agreeable to embracing such information all the time? If we listen without using good common business sense we can put ourselves into a terrible financial situation – just like the national and worldwide financial systems did. 

You, the CEO, company president or business owner, know your business better than anyone else.  Don’t ever let anyone sell you an idea that just doesn’t feel right.  Before you make any drastic changes in your business, think it through, test the idea out to make sure it will work before you fully embrace any major changes or programs.  Always have a back-up or an exit plan, just in case for those “what if” situations that can and do occur even with the best business plans. 

If along the way, you do make a mistake in your business, do what Alan Greenspan did.  Admit to the mistake, take ownership of the mistake and set the example with those you work with not to finger point or lay blame where it does not belong.  And then, get back to business doing what you do well and never make the same mistake again.