In today’s New York Times, economist and author Sylvia Ann Hewlett discusses the merits of flex time for both corporations and employees in the article, “Making Flex Time a Win-Win.” Much like my two-part blog post earlier this year that touted the benefits to your business of implementing a telework program, flex time too can be a powerful catalyst for increasing employee morale and productivity.

Hewlett points out that flex time is a win-win in today’s economy since many workers will be happy to take less pay if their managers give them a more flexible work schedule. So not only could employers save money by embracing a flex time program, they could also get more out of their employees.

Flex time can come in a number of forms. For example, it may mean working four days a week for a total of 32 hours, and receiving 80% of the pay. Women are particularly attracted to flex time as Hewlett notes, since they are increasingly out-earning their husbands, while still facing domestic duties at home (e.g., as a mother).

A successful female employee and mother typically faces the dilemma of either quitting her job or living with the guilt of not spending more time with her kids at home while they are young. If the mother decides to leave her job, then the company loses out on the talent and investment in that employee. Flex time can potentially keep her at work, contributing to the company’s success, while possibly helping the company save money at the same time.

Ms. Hewlett is the founding president of the Center for Work-Life Policy, author of nine non-fiction books on business, and winner of the Robert F. Kennedy Book Prize. She has taught at Cambridge, Columbia, and Princeton.

Her latest book, Top Talent: Keeping Performance Up When Business is Down,” was released in October. Jeffrey Kindler, Chairman and CEO of Pfizer: “The right book at the right time. With skill and conviction, Hewlett provides new insight into motivating your top performers during tough times and preparing your organization for renewed innovation and growth.”

As we have discussed here in numerous blog posts over the last year, tough times are exactly when your company should invest in its best performers and mine all the talent your employees have to offer. This investment can come in the form of enhanced incentive rewards programs, imaginative leadership training, and other innovative programs to spur creative thinking and performance.

It will require a management team who is willing to embrace change, e.g., how and when employees work — in short, a team willing to flex different muscles. I’m guessing you’ll like how the results will look on you and your company.

As business executives across the globe seek to chart an improved course in the wake of this past year’s economic meltdown, I call your attention to a new book on leadership that may serve as a helpful guidepost — Love Leadership: The New Way to Lead in a Fear-Based World (Jossey-Bass).

Love Leadership is written by John Hope Bryant, Founder, Chairman and CEO of Operation HOPE, America’s first nonprofit social investment banking organization. The book debuted at #8 on the “CEO Reads Top 10 Best Seller List,” and has been featured in Business Week and the Washington Post.

At the age of 26 in 1992, Bryant started Operation HOPE in Los Angeles in response to the LA riots based on the premise that his community needed a “hand-up not a hand-out.” Operation HOPE seeks to “eradicate poverty in our lifetime” through financial literacy education of inner-city and under-served children and adults.

Bryant himself grew up in Compton and South Central Los Angeles, CA and was homeless for six months at the age of 18. It is this humble background that Bryant has drawn upon to make him one of the most charismatic and successful philanthropic-business leaders of our time.

Bryant has advised the last three Presidents on the importance of financial literacy as one of the most effective tools to address poverty. Bryant is a Young Global Leader for the World Economic Forum, where he spoke at WEF’s closing session in Davos, Switzerland in February 2009. Operation HOPE’s major partners include a Who’s Who of global corporations, such as: Wells Fargo, Toyota, Microsoft, E-Trade, ING, and Citigroup.

David Gergen, former senior White House advisor to four Presidents and now Director of Harvard Kennedy School’s Center for Public Leadership, describes Bryant this way: “I have watched John Hope Bryant dazzle audiences from Harvard to the World Economic Forum. Now he pours his compassion and charisma into the pages of this book, delivering a powerful message about rediscovering our humanity.”

According to Don McGrath, Chairman of Bancwest Corporation: “In this book, he (Bryant) gives us a recipe for personal success driven by a simple notion: treating others with respect and dignity creates true long-term success. This message and his strategies for living it couldn’t be more timely as we address the failures of leadership that created today’s financial crisis.”

In Love Leadership, Bryant lays out his “Five Laws of Love-Based Leadership” — Loss Creates Leaders, Fear Fails, Love Makes Money, Vulnerability is Power, and Giving is Getting. As he puts it, “Leaders give, followers take. Giving inspires loyalty, attracts good people, confers peace of mind, and lies at the core of true wealth.”

Business leaders who understand and deploy these principles are most likely to succeed. Leadership based on fear is a short-term tactic that produces unreliable results, and can serve to damage the organization over time. Conversely, employees who are appreciated and respected will perform at a higher level under all conditions over the near- and long-terms.

Leaders who embrace the principles of caring and respect, will indeed love the results.

John Hope Bryant

One of my favorite art finds in recent years is the “Dummy Cat” by David Weidman, which hangs in my Manhattan apartment. It is a signed serigraph print, which I bought at an outdoor flea market in Chelsea several years ago for $40. You can buy one today from Weidman’s own website for $250.

It wasn’t so much the bargain that attracted me to the Weidman piece, but the fanciful cat itself. As an admitted cat lover (I have four), I of course liked the subject. But as an art enthusiast, I also liked the way you feel when you look at Weidman’s cat – it makes you smile.

Dummy Cat is a signature piece of Weidman’s, who today at age 87 has left quite a mark on the art, graphic design, and animation worlds over the last six decades. He began his career in the 1950s as an animator for the famed Hanna-Barbera studio in Los Angeles. He soon began working for himself, and in the decades that followed, created a unique and iconic style.

In December 2008, Gingko Press published The Whimsical Work of David Weidman – and Also Some Serious Ones. According to the publisher’s press release, Weidman’s “staggering body of work is as modern and visually stunning as it was forty years ago,” and added, “he never stopped experimenting as an artist.”

There is a lesson here for all of us, particularly those who are managing today’s businesses during trying economic times. Managers should resist the urge to hunker down, withdraw, and play it safe. Now is exactly the time to take a page from Weidman’s animated book – to re-double efforts, and challenge employees to create and to “experiment.”

You should also add “whimsy” to your corporate vocabulary. Nurture and celebrate those within your organization who turn dreams and fancy into innovative products and services – and in doing so, enable your business to grow and thrive.

With the current 8.5 percent unemployment rate, and pay freezes or cuts for much of the remaining 91.5 percent of the nation’s workers, there is no better time for companies to embrace creative pay-for-performance programs.

The current state of the economy is undoubtedly making even the best employees anxious. And anxiety breeds under-performance, which can exacerbate your company’s already mounting challenges. Freezing employee salaries doesn’t mean that you can’t reward over-achievers with other perks and pay incentives. Cash bonuses, stock grants, and highly desirable professional development opportunities are fair game and can provide the necessary catalyst for top employees while encouraging under-performers to step up their game.

You can also use the current economic situation as an opportunity to revamp your overall compensation structure. Does your current pay structure fully differentiate between your performers and laggards? Is your current pay plan designed to pay past performance rather than spur improved future performance? Does your current plan truly encourage innovative thinking and risk-taking or does it simply encourage loyalty to the boss?

Here’s a thought: Instead of simply freezing every employee’s salary this year, how about increasing the salaries of the top-performing 20 percent while lowering the salaries of the bottom 20 percent? Your total salary expenditures would remain flat, but your overall corporate performance would surely increase.

Turn adversity into an inspiring opportunity to make the necessary upgrades to your compensation program that will result in performance 2.0 for your company or organization.

Last month, Christie’s held the “Sale of the Century” auction in Paris of the art and furniture owned by world-renowned fashion designer Yves Saint Laurent, who died in June 2008 at the age of 71. Christie’s spent $1.2 million to host the auction at the famed Grand Palais near the Champs-Elysees, which drew over 30,000 visitors to the preview exhibition. The auction itself spread over three days and raised a record-breaking $484 million — even in the face of the global economic crisis. Saint Laurent’s lifelong partner, Pierre Berge, said that most of the profits from the auction would be donated to HIV/AIDS research.

The overwhelming interest in last month’s auction underscores the impact of Saint Laurent in the art and design world over the last five decades. Born in Algeria in 1936, Saint Laurent maintained a home in Morocco. At his request, Saint Laurent’s ashes were scattered near his Marrakech villa in the Majorelle botantical garden, which he frequently visited to find influence. His influence also came from the streets of major international cities. For example, he was known for “bringing the Parisian beatnik style to couture runways and adapting peacoats he found in Army-Navy stores in New York” into fashionable women’s jackets, according to the New York Times.

Corporate executives and managers could learn from the man who built the House of YSL. To succeed in business, you must change as rapidly as the markets and interests of customers change. Today’s haute couture can be tomorrow’s bargain-bin special. Same goes with your products and services, and how you do business.

Seek inspiration in both likely and unlikely places. Embrace the principle that the look and feel of a product is as important as its function. Leverage the latest Web 2.0 tools that your customers and clients are using. And those who are fortunate enough to have laurels, shouldn’t rest on them, not if your business is interested in being around tomorrow.

With the economy in shambles, Washington policy-makers should resist the urge to shut out the world’s best and brightest talent by making our country’s already archaic immigration policies even more so. The anti-immigration crowd is louder and more invigorated than ever with the U.S. unemployment rate over 8% and heading higher. What we need now is courage from our government leaders if our country is to ever crawl out of its economic hole.

American innovation has long been without rival. However, it is now being challenged by countries like China, India, and South Korea who fully appreciate this fact: the team which educates and employs the smartest people will eventually win the game.

The globe’s brightest graduates working in this country don’t take jobs away from Americans; they create jobs. In this week’s Business Week, Vivek Wadhwa, underscores this point in ‘America’s Immigrant Brain Drain’ article: “Although [immigrants] represent just 12% of the U.S. population, they have started 52% of Silicon Valley’s tech companies and contributed to more than 25% of the U.S. global patents.”

Will we help the U.S. employee by turning away the top 100,000 foreign-born graduates each year in math, science, and engineering? American workers and our students need to be challenged by the globe’s very best. World-class athletes cannot be world-class without competing against the best in the world. And the same is true in business and education.

I know first-hand about the state of our global competitiveness. I came to this country 31 years ago as a high school exchange student from Tehran, and brought with me much stronger math and science skills compared to my 12th-grade Michigan classmates.

If our country does not move quickly to put smart policies in place to attract and keep the world’s smartest individuals–while better educating our own kids–we will not only lose our global innovative edge, we’ll never get it back.