When Companies Should Step on the Gas

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Big-spending advertisers such as Ford (F), Verizon (VZ), and AT&T (T) seem to be betting on a better economy as the year goes on. Demand for the upcoming fall season's TV advertising inventory is up some 15 percent, with prices increasing in the high single digits. The more the economy heats up—even if only for a short time—the less inventory will be available for all advertisers in every medium—and the higher prices will go. Companies that can make commitments now will get more for their money.

Recruitment. To the casual observer, it's the driver who wins the race. Those who know understand that there's an entire team behind every winning car. The higher the stakes, the more options the best talent will have, so it's important always to be one step ahead in planning for your human-asset needs. In the case of employment, we may still be on a curve, as hiring by private companies has slowed in recent months. Demand will one day catch up with supply and the best people will go first. And fast.

Race strategy. Intensity and adrenaline are great assets, but they can also cloud your vision. In some F1 races it's advantageous to take more pit stops, rather than fewer. The cars can then run with lighter fuel loads and the timing of the stops can be used to improve competitive position. Don't neglect the need to refuel, change your tires, and reconfirm your tactics by taking the appropriate mental pit stops, alone and with your team. The best drivers are the wisest ones, not merely the fastest.

It appears that we're on a stretch of straight track at the moment, however briefly. Knowing there's always going to be another hard turn ahead, when should you step on the gas? The short answer in today's unpredictable economy is simple: whenever you can.

Steve McKee is president of McKee Wallwork Cleveland Advertising, a firm that specializes in helping stalled companies rekindle growth. He is the author of the new book, When Growth Stalls.

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