Harnessing human potential. (From the Editor).

After months of debate surrounding exactly what the financial markets are doing, there finally seems to be a consensus. Despite the Enron scandal and various other investigations involving questionable business practices, bullish expectations have trumped the odds. Both Towers Perrin's and Watson Wyatt's economic surveys forecast a solid economic recovery for Canada in 2002. Towers Perrin says that on average, investment managers expect real GDP growth to be around 1.9%. Watson Wyatt sets growth at 1.5%. Overall, there should be modest growth across the board for the year, strengthening our economy and the Canadian dollar.

To benefit from these modest gains, companies have to be savvier than their competition, managing growth intelligently and systematically. This involves strong leadership, good communication networks within a company (regardless of size), and proper encouragement to create future leaders.

In his article, "Managing knowledge assets," Preston Cameron discusses how systematic approaches to knowledge sharing can improve a business's performance. Whether it's creative ideas or data and procedures, it's essential to disseminate critical knowledge to maintain and develop a company.

Some of the best, most productive people in an organization are creative, driven individuals. But although these people are top producers, it is often hard for them to lead others to achieve that same consistent success. They need coaching to become leaders, and managers have to make that one of their strategic initiatives -- for the sake of the company's future. Sheila Goldgrab explains how in her article, "Coaching your stars to be leaders."

Clare Isman, FCMA, understands the importance of human resources planning. As she says, "When you're working on the human side of business, you recognize that it's always changing, it's never static. People are a key ingredient in any business." She is one of the innovative CMAs we feature this month in the article, "Sound leadership."

The challenge set by all of these articles is how to produce excellent leadership through strong interpersonal skills. During dips in the business cycle, it can be hard to maintain these essential communication channels in your firm. In our Management trends column this month, Rick Mazur offers a few key points on how to deal with turbulence in the business cycle. Despite the good forecasts, keeping these pointers in mind will help you to navigate a variety of potentially difficult situations.

Robert Colman

Editor-in-Chief