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Chief executives should look on the bright side of the recession to motivate staff, says a leading finance chief. Steve Freer, chief executive of CIPFA, told a SOLACE regional event last week: ‘It's easy to indulge in accidental scaremongering, talking of cuts of 40%. We have to inspire belief and optimism in order to have motivated organisations. We have to be positive and optimistic, despite the formidable challenges.' Advising on how to handle the recession to West Midlands chief executives, Mr Freer added: ‘We have to see ourselves in the business of both improving services and saving money. The key point about leadership is being ahead of the curve. We can't change the public finances but we can change our organisations and the way they respond. That's where we must focus our efforts.' He warned there could ‘come a time' when settlements would be minus-5% and when a reduction of only minus-3% would mean ‘we'd be getting the champagne out.' But he added: ‘We have to travel that journey but we do we have to do so with moans and groans? The most painful gap is between expectation and reality. ‘The key to leaders is how we manage these expectations.' Earlier, SOLACE president, Trish Haines, told the seminar: ‘People would feel we were letting them down badly if we weren't seen to be making all the efficiencies we can before making cuts.' Ms Haines, Worcestershire CC chief executive, added: ‘If we can come out of the recession as part of the solution, then people won't forget that. But if we fail to deliver, then we'll have sunk the reputation of local democracy.' * CIPFA and SOLACE are preparing a paper on the impact of budget cuts due in September.

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WHITEHALL

Use recession to inspire staff, urges CIPFA chief

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