Today’s post isn’t really Operations related.  In fact it’s not necessarily Financial Services related though it is related to finance…sort of.  It’s really about spending and consumer behavior.  My colleague, Elisa, alerted me to a recent article from Gallup, written by Dennis Jacobe.  The article talks about the “New Normal” when it comes to spending behaviors.

The article is a really interesting read – it’s well written and I enjoyed it a lot.  Also, it pairs nicely with the section on customer preferences in last month’s teleconference, Succeeding as a Head of Operations in 2010.

In the teleconference we mentioned that we’re seeing different generations impacted differently by the economic crisis.  For instance at this point in time of the crisis, Millennials, those born between 1982 and 2001 and are entering college or the workforce for the first time, are considered economically formative – they’re forming their spending habits.  Think about the impact that the last year or two has had on this group of young individuals as they’ve formed their spending habits and how the recovery will impact that.  It’s most likely to be different than baby boomers who long ago shaped their spending habits and have encountered multiple recessions. 

The Gallup article mentions surprise at the fact that “even older and upper-income Americans continue to report cutting back on their spending and worrying about spending too much.”  I guess I’m not all that surprised.  I get the feeling that no matter whether you’re older, younger, upper-income, average-income or lower-income everyone is locked down in “saving mode.”  That is unless you’re Tom Cruise or Bill Gates or someone who just won the lottery (keeping my fingers crossed that this is finally my week!).

I can tell you I’m definitely in savings mode!  Lunches with my colleagues at the newest restaurant?  Forget about it.  New basketball shoes that I desperately needed two years ago?  Eh, they can last one more year at this point.  That new car I was thinking about?  Not so much.  Now all I can think about is how I’m going to drive my old car until it falls apart!  Seriously, I picture myself driving somewhere in downtown Washington DC when my door literally falls off its hinges.

I look around and see plenty of people in the same mindset.  Over the last few weeks I’ve seen people unusually angry because they forgot a coupon or they missed the early bird parking by five minutes and had to pay two additional dollars.  Things that seemed insignificant just a short time ago no longer are.  That said, the outpouring of support for Haiti reminds me how incredible people can be, even in these trying times.

Take a moment to think about how you’ve reacted during this crisis and compare it to the reactions of your friends, kids, parents, grandparents even – how have they reacted?  Now think about how this crisis has affected your and their patterns of behavior moving forward.  What’s changed?  What’s now normal for you?