A small group of corporate heavy-hitters has come together to sound the alarm for increased spending and focus on energy research and innovation in the U.S. (New York Times, June 10, 2010).

Seven of the country’s most respected business leaders have formed the American Energy Innovation Council, including luminaries such as General Electric CEO, Jeff Immelt, and Microsoft Chairman, Bill Gates. Their message: the U.S. Government needs to “triple investments in clean-energy technologies to boost the nation’s economic competitiveness and protect the environment.”

We’ve heard similar calls for action on clean-energy investment in recent years from a variety of voices from business and academia. What makes last week’s announcement unique, however, is the coming together of major corporate leaders from disparate sectors around a common “business plan.” And the fact that it was announced against the backdrop of our nation’s worst oil spill in history adds further to the uniqueness of the moment.

The plan calls for a tripling in clean-tech funding in nuclear fission, solar, wind and fossil fuels. It also proposes the formation of an independent energy strategy board, which would develop an energy plan and oversee large-scale demonstration projects as part of the “New Energy Challenge Program.”

The Council recommends a $20 billion commitment over 10 years for the Challenge Program, which would “unleash significant private sector resources as projects are developed.” Additionally, it suggests that the Federal Government create Centers of Excellence to “foster multidisciplinary collaboration amongst scientists, universities, federal laboratories, and other public and private institutions.”

In addition to Immelt and Gates, the Council also includes: Chad Holliday, Chairman of Bank of America (and former CEO of DuPont); Ursula Burns, Chairman and CEO of Xerox; Norm Augustine, Chairman of Lockheed Martin; Tim Solso, Chairman and CEO of Cummins Inc.; and John Doerr, a leading energy venture capitalist and partner at Kleiner Perkins Caufield and Byers.

The group clearly faces some stout headwinds in making the case to Congress and the Obama Administration to spend more federal money on energy research at a time of unprecedented budget deficits. Yet, we know that the barking dog is usually the one who gets fed first. And when you have seven notable best-in-breed barkers, it’s hard not to at least give the group and their plan a serious look.

At a time when the public is less inclined to believe our corporate leaders, I am ready to take these leaders at their word. They know the path to energy security will be long, and as Jeff Immelt puts it, “the world is not going to wait for the United States to lead. This is about innovation; this is about competition; this is about energy security.”

I hope someone listens and heeds the call.

Today we all should take a moment to remember the tens of thousands of military men and women who died fighting for our country.

Memorial Day comes only once a year, but the freedoms we enjoy as a result of the ultimate sacrifice of others are with us every day.

Our country was founded on the principles of freedom as affirmed in the First Amendment to the United States Constitution, which provides for five freedoms: religion, speech, press, to peaceably assemble, and to petition the government.

America is also home to the world’s best free enterprise system, which continues to serve as a beacon to those who want to take an idea and a dream and start a business. Our history books are replete with stories of individuals from every walk of life, from every corner of this country and the globe, who started businesses in the U.S. and took them to soaring heights and sometimes back again.

It is our freedom to both succeed and to fail in business that has long been the hallmark of our country’s strength and its economic might. And as long as we are able to preserve these important principles, we will continue to be a great and prosperous nation.

So a tip of the hat to those who made all this possible — our fallen soldiers, and to the families and friends they left behind.

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.