Irish Management Institute (IMI) chief executive, Mr Barry Kenny, did not quite know what to expect from the 200 or so senior managers attending this year's management conference.

Investment had slowed, unemployment levels had climbed along with inflation, a strengthening euro had placed exports under pressure and, just for good measure, the US-led war in Iraq was siphoning billions of dollars out of the ailing global economy. It must have seemed that the conference theme - "survive and thrive" - was a touch optimistic.

In the event, however, Mr Kenny was, as he readily admits, pleasantly surprised by the direction the conference took over its two-day course.

He and his colleagues at the IMI had been concerned that the attendees, many of whom head companies with a global presence, would be weighed down with worry at the state of the Irish economy. He had anticipated a heavy focus on costs and, more particularly, the Republic's persistently high inflation rate.

Mr Kenny said while these issues were undeniably in the background, he had overheard few conversations focusing on the problems they can cause. "I think the mood is confident rather than worried," Mr Kenny said. "There's confidence in being able to add value."

Mr Kenny tells the tale of the US multinational with a plant in the Republic and another in Florida - the Irish staff are paid more but they are also more productive and more flexible. It is in this direction that Irish success is headed, he believes.

Of course, the mood at the event was lifted to a large extent by the optimistic presence of the Taoiseach, Mr Ahern, who opened proceedings with a carefully-worded and defiant address.

The speech - an undeniably rousing affair - acted as an injection of assurance for the delegates, many of whom had taken the opportunity the previous night of having a chat with Mr Ahern over a casual pint at the bar.

The conference was left with a sense, justified or not, that their various difficulties had been recognised at a level where it really mattered.

Studied comments from Mr Ahern on the importance of competition within the Republic's professions will not have gone unnoticed either, especially by the small number of senior lawyers attending the event.

Other speakers who generated much evening conversation among delegates were Mr Simon Burke, chief executive of London toy retailer, Hamleys, and Mr Willie Walsh, the man famed for transforming the fortunes of Aer Lingus over the past year.

While heading entirely different businesses, both explained how it was possible to succeed in difficult times and how a company could be turned around if the correct measures were employed. Chief among these, both men said, were effective communication with staff and a concentration on core activities.

Add to this the inspiring messages of management guru, Prof CK Prahalad, who urged attendees to cut the word "strategic" from their business lexicons and concentrate on reality, and the conference appeared to achieve its promise of bringing managers "back to basics".