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We've reached the point in this downturn where you can expect a bevy of stories about positive things you can do while times are hard. One such story appeared in Monday's Wall Street Journal with the headline: "Despite Cutbacks, Firms Invest in Developing Leaders." Here's the teaser.

"Despite layoffs and recession-starved budgets, many employers are investing in leadership-development programs, hoping not to be caught short of strong managers when the economy recovers."

Training budgets on the whole are on the way down. Bersin estimates that training budgets were cut ten percent last year. They expect further cuts this year.

The three companies profiled in the Journal story are all cutting back, too. But they think that leadership development is one of the things to keep.

Philips Electronics NV will continue its program for 30 high potential people. They'll keep the program closer to home to save on travel and use more insiders as trainers.

Estee Lauder is keeping its leadership development program going, but cutting back. They used to send 120 people to Vassar for two or three weeks in the summer. This year they'll send 60 and only for a week.

Canon launched its Canon Academy last year. This year they're expanding training to newly promoted managers using a combination of instructor-led courses and online training.

I think this is all good. I think companies should keep training during a downturn. Good training has a multiplier effect.

And this follows my basic rule that a downturn is the universe telling you to do what you should have been doing all along. After all, you shouldn't need a downturn to tell you to watch expenses.

I've got some advice for companies on leadership development during this downturn. But it's actually things they should have been doing all along.

Training isn't just skill development. Training is also the carrier of culture in your organization.

Leadership is an apprentice trade. You won't learn more than about twenty percent of it in the classroom and from books and online resources.

A downturn is the ideal time to give emerging leaders opportunities to learn and do productive things. Consider action learning projects that address real problems. There are plenty of problems to choose from.

Don't limit development opportunities to "high potentials." If you do then their high potential becomes a self-fulfilling prophecy since they're the ones who get all the learning. Spread some of that learning wealth around.

A downturn is the perfect time for leadership development. Do what you should have been doing anyway. Cut down on the fancy training and expensive travel. Increase the developmental assignments and pump up the feedback.

Wally's Working Supervisor's Support Kit is a collection of information and tools to help working supervisors do a better job. It's based on what Wally's learned in over twenty years of supervisory skills training. Click here to check it out.