The S.O.B. Speaks

AIRINC NAMES STEVE BRINK AS PRESIDENT

2009-01-12T05:38:00.001-08:00

AIRINC NAMES STEVE BRINK AS PRESIDENT

Cambridge, MA (USA)—January 8, 2009—We are pleased to announce that Steve Brink has been appointed President of AIRINC. We are confident that Mr. Brink's vast experience and global vision will help AIRINC become the trusted source for workforce globalization. His technology expertise and his emphasis on proactive solutions fit well with AIRINC's long-term strategy.

Over the last 20 years, Mr. Brink has built businesses that utilize leading-edge decision support software and value-added databases. These products and services provide organizations with insight on global workforce optimization. In early 2008, he left his role as Global Leader of Information Product Solutions for Mercer Consulting to become the Executive Vice President of RAF Capital, a portfolio management company of HR consulting, software and information firms.

On his new appointment, Mr. Brink states, "I am excited about joining AIRINC. As a former competitor and consultant, I know that AIRINC is widely regarded as the highest-quality solutions provider and a terrific partner to their clients around the area of workforce mobility. I hope to enhance AIRINC's extensive products and services with my significant background in innovative software solutions, data products and services that address challenges of hiring, retaining and growing a global workforce."

AIRINC CEO Jim Reid said of Mr. Brink, "Steve is a top talent in the field of HR with a proven track record of success. He has an outstanding focus on the challenges faced by organizations on the issue of global talent. Steve adds another element to our already highly experienced consultants. He will be key in developing new and innovative products and services that address the many issues faced by multinational organizations."

Mr. Brink began his role on December 1. For a detailed background on his career,
please click here.

Press inquiries regarding Mr. Brink's appointment should be directed via email to press@air-inc.com.

Dream Job

2008-12-02T07:20:00.001-08:00

If you could have any job in the world, your dream job, what would it be?

Well, I just accepted my dream job.

This week, I start as President of Associates for International Research (AIRINC). AIRINC is a human resources consulting firm dedicated to facilitating global mobility. Since 1954, AIRINC has provided organizations with superior cost-of-living services for their cross-border transfers. Today, AIRINC offers a wide range of expatriate compensation services, ranging from data delivery and database management to policy seminars and compensation program design.

Why is this my dream job? Well, simply, it consists of many items that I write about in this blog.

First, the people. This is a great group of people. People with passion about what they do. People who are devoted to sharing knowledge in this important area of HR. The AIRINC team has knowledge leadership at all levels of the organization.

Second, the opportunity. AIRINC has years and years of proven value in the HR industry. With all of the success, I still see significant opportunity for AIRINC to further assist clients with global workforce issues.

Third, the world. I have lived almost 20% of my life outside of the USA. I consider myself a global citizen. I know in my bones the positives and challenges of cultural exchange. AIRINC focuses on helping people work across borders and cultures. AIRINC knows Global! I want to be a part of that.

Four, private ownership. One of the most frustrating things that I faced as a global leader in a large public conglomerate company is the short-term focus on results. Budgets are built on short-term financial wins versus long-term profitable growth and the value proposition to the customers. AIRINC is a private company with a proud tradition of partnering with customers and retaining quality people. AIRINC is built on the values that I believe are critical to running a business.

I hope I succeed at my dream job; I hope I add value and direction to this amazing group of thinkers. I am excited and nervous. It's like my first day at a new school; my first date with my wife; or watching my kids succeed at anything. Crazy, but I have butterflies in the stomach.

With my new challenge, I will be taking a sabatatical from public blogging. I may revert back to a private blog – as this one started. Any feedback is welcome.

Thanks for reading this blog!

Today

2008-12-01T06:29:00.000-08:00

Today is the first day for the rest of your life!

sorry short, but some news tomorrow! Stay tuned.

Joke of the Weekend XXXI

2008-11-29T05:26:00.000-08:00

TOP TEN Ways to Know You Are Dating a Consultant

1. Refers to those "intimate moments" as "Win-Win situations"
2. Valentine`s Day card has bullet points
3. Can`t be trusted with the car (too accustomed to beating up rentals)
4. Celebrate anniversary by conducting a performance review
5. Ends any argument by saying "let`s talk about this offline"
6. Tries to call room service from the bedroom
7. Congratulates your parents for successful value creation
8. Takes a half-day at the office because, "Sunday is YOUR day"
9. Talks to the waiter about process flow when dinner arrives late
10. Referred to the first month of your relationship as a "diagnostic period"

Leaders need to Lead in these downtimes

2008-11-26T07:29:00.000-08:00

It is amazing to me how often when the times are not as good as in the past, leaders make some strange decisions . . . oh my, we need to cut expenses and "I" know which expenses to cut. The result is that short-term decisions impact long run revenue opportunities. Oh yes, short term bonuses might look good, but this is about the long term viability of the business and a contract with people who have worked so hard to build a business.

I have been through recessionary times in the past, my advice to new leaders is to gather the troops and tell them the straight story. The revenue in the future is not looking strong so we need to cut expenses in line with our revenue projections. So, we have two choices, what ways can we increase revenue without investments and second, where can we lower our expenses. The people closest to the clients and the actual daily work are the best to help provide insight into what might be revenue opportunities and where some expenses could be lowered. I have always been pleasantly surprised by the suggestions that really made a difference. My favourite one was from an assistant who had a great idea about saving money on shipping our products which ended up saving significant dollars. When I asked how come you never raised this before . . . the answer "no one ever asked".

Leaders! Don't crawl into your office and stay in the dark. Get out! Involve and ask your team what actions can affect short term results. Leaders lead in downtimes, but leading is also listening and involving the entire team!

Stop, Close your Eyes

2008-11-25T07:06:00.001-08:00

Out running today, listening to Flobots' "Handlebars" and trying to figure out the lyrics . . . also thinking about what I have to be thankful . . .

It's American Thanksgiving Day on thursday .. .

Stop. Close your Eyes. (well, do after reading the posting . . . )

Take the time to think about what you have to be thankful for . . . I know I am so blessed and thankful for all that I have (health, wonderful spouse and family, friends, shelter, food on the table, a job, etc.).

So often, we focus on the things we don't have or are not right in our lives. This week, take the time to focus on the good things.

Similarly, as a leader or manager . . we focus on people's weaknesses and how to improve them, whereas we don't focus on their strengths and look for ways to leverage them . . . it is better (and usually easier) to leverage a strength then improve a weakness.

So, this week, focus on your "strengths" (i.e., things to be thankful) and set aside your weaknesses for a few days (I am sure they will still be there when you return).

And for those that are about to do year end performance reviews, have a discussion around the strengths and ways to leverage those to help the business in 2009!

Speeding Ticket

2008-11-24T04:33:00.000-08:00

For the first time in almost 15 years, I received a speeding violation. I do have an excuse. I was on a new highway (on my way to a golf charity event BTW) and the speed limit went from 70 to 55 and I just did not see the speed reduction sign.

In most states, you can pay the fine OR take a defensive driving course and the ticket is off your record (both are practically the same price). Well being as competitive as I am, I want a clean record, so decided on defensive driving course. You can spend an entire weekend day at an training seminar or take it online. I decided "cool", I will take this online, no problem, be easy and wont waste an entire day of my life. I was wrong.

The online course was suppose to take 6 hours, somehow it took me almost 9 hours to do this online course. It just went on and on and on . . . you could not skip and each page was timed . . . it was totally frustrating. And I am not a happy camper. The other deal was that at the seminar you do not have to take a test, but online you do . . . so if you failed, you have to take it again. YIKES! Now, that is pressure.

The point of this is that as a leader (or anyone), sometimes a "course" (or decision) might seem easier when in fact, it might just be a more pain in the backside. The "grass is not always greener on the other side". Next time, I am just going to pay the fine.

Joke of the Weekend XXX

2008-11-22T07:09:00.000-08:00

> An elderly man in Louisiana had owned a large farm for several years. He
> had a large pond in the back. It was properly shaped for swimming, so he
> fixed it up nice with picnic tables, horseshoe courts, and some apple and
> peach trees.
> One evening the old farmer decided to go down to the pond, as he hadn't
> been there for a while, and look it over.
>
>
> He grabbed a five-gallon bucket to bring back some fruit. As he neared
> the pond, he heard voices shouting and laughing with glee. As he came
> closer, he saw it was a bunch of young women skinny-dipping in his pond.
> He made the women aware of his presence and they all went to the deep
> end.
>
>
> One of the women shouted to him, 'we're not coming out until you leave!'
>
>
>
> The old man frowned, 'I didn't come down here to watch you ladies swim
> naked or make you get out of the pond naked.' Holding the bucket up he
> said, 'I'm here to feed the alligator.'
>
> Some old men can still think fast.

Tortilla Chip, Chocolate and Beans

2008-11-21T08:56:00.000-08:00

I am planning to have lunch with my oldest son today at school. I will be bringing a nutrious McDonald's Happy Meal (I am sure he will be the envy of the table). It is a great opportunity to meet with his school friends and do something special for him (especially since I have been traveling so much recently).

Earlier in the week, I had lunch with my youngest son. He wanted Chick-fil-A (I just think he really likes those commercials with the cows mispelling "eat mor chikin"). It was a nice experience (well almost). When you sit down with a bunch of six-seven year old kids, they want your attention, so I was spending most of my time opening plastic bags, buttering bread, etc. (actually, I felt like a million dollars and in this economy that's alot). Anyway, one of my son's friends (we will just call him Sean for now) was showing how he experiences different combination of foods. NOTE: the school meal was tortilla chips, separate container of cheese, beans, milk and banana (okay this is Texas). These tortilla chips were the kind that are shaped like a bowl (for easier dipping of the cheese I suppose). So, he would pour some of his chocolate milk in the chip and eat it . . he then on the next one decided to add chocolate milk and then a bean . .. luckily I had finished my meal. However, he loved it!!! Well, to each his own. Most of the other kids, did the proper dipping of chip into the cheese and eating, and then drinking milk separate . . . and eating the beans with a fork.

Why this story and how relates to leadership? Everyone is different, and you need all kinds. Where is the excitement if everyone believed the same, never disagreed on issues. So, when you are hiring, look at the current team, do you need to spice it up a little bit . . . it's time to hire a Sean-type into the team! Innovation is good, and those who are usually innovators are the ones that are not adverse to trying new things!

Now, if there is a way of making this tortilla chip choccolate combination into a product . . . Hmmmmmm. And I wonder if I will learn something new today at the lunch of a bunch of 8 year olds!

Seasons

2008-11-20T04:53:00.000-08:00

Unless you have been on the moon (and even then), you know that the global economy is suffering right now. If you are not being laid off, your salary increases and bonuses will be minimal. You might be miserable!

There is hope. I believe that this is a great time to make opportunity hires. I know it sounds opposite of what you think. However, when times are going well, why would you want to change employers, you are doing well, getting promoted, receiving bonuses, higher salary increases . . . be crazy to look elsewhere, right?

As an Executive, this is the time that you are on the look out for one of those great hires that will help your business in the long term.

So, this works both ways, executives that are looking . . . and employees who might be wanting another challenging role. Now, all you have to do is find each other (you don't do that sitting on your hands).

Business cycles are like seasons. We went rapidly from Autumn to Winter this time; things are looking dark, cold, just plain yucky. You hunker down in your home and rarely venture outside. Whereas, Spring will eventually come, a rebirth . . . warm, maybe a little rain though. . . but those will bring beautiful flowers. Okay, not the best analogy, but I think you get the point. This too shall pass. There are those that enjoy the winter, it is a challenge, they embrace the challenge of winter. As I have said before, there are tremendous opportunities in these times. The problems might be different, but when there are problems/issues, there is opportunity. There are two types of people when facing these kinds of changes: (1) those that retract and lay low and put up with what is happening to them, and (2) those that view change as opportunity, those that might stick their neck out a little more than others and want to control their own destiny. While the first one is the safe approach (risk averse), the second one is more risky with the rewards/gratification is significant higher. Both are fine and one is usually wired into you, so if you want to do #2 but wired as #1, you will have to work much harder to make it happen. Which one are you?

I can't wait till Spring though!

Same thing, different view

2008-11-19T04:00:00.000-08:00

Okay, I admit it. I am a huge Woody Allen fan; enjoy his movies tremendously. Whew, I said it, it's out in public!

Traveling across the Atlantic, I watched the movie, Annie Hall. You youngsters, you probably have not seen it but it is a good movie, so watch it. Anyway, there is a scene about a couple who are having marital problems, they decide for each to seek counseling. The movie has a split screen, man talking to a counselor on the right side, and the woman talking to another counselor on the left side of the screen. Each counselor asks their "patient" . . . "how many times a week do you all make love?"

Man: "Almost Never, about three times a week"

Woman: "All the time, about three times a week"

Great scene . . . same "action" but opposite views.

So, why am I talking about this . . .

Well, the same thing happens in our work relationships, especially between leaders and employees. Certain actions take place (e.g., expense cuts - why does someone cannot take a business trip to the next city, but someone else can fly across the globe, certain promotions - why did X get promoted, they are not deserving, reduction in force - why that person and not that one, etc.). It is important for leaders to understand how their actions will be viewed, not necessarily change any decisions. However, a clear communication is important, otherwise people will not see your perspective.

. . . and for me, "almost never" . . .

Focus

2008-11-18T06:25:00.000-08:00

I woke up at a little before 5am this morning.

I decided to get a run in . . . before the day really started.

It was dark (although the full moon was nice).
It was cold. (in the 30's)
No ipod today.
No running with the dog.
It was extremely quiet.

Lots of things are on my mind, I might be making some significant decisons soon. As I ran, I thought about each issue and "addressed" them and then went to the next issue. As I was ending the run . . . I was "my goodness I am already back home that was quick". It was a very productive run (although not as nice as my run in Bordeaux on Sunday, running through the vineyards of St Emillon).

What's the point? Well, sometimes as leaders or professionals, you just need "quiet time", no phones, meetings, disruptions . . . to set aside a time to focus on those issues that you are failing in finding time to address. I like to focus on these during my runs, others like other activities (biking, swimming, etc.) or going to a library or quiet room. It is sometimes hard to find time during these busy days, but don't forget to take the time. You will feel much better afterwards. I did. Run On!

planes, trains and automobiles

2008-11-17T07:24:00.000-08:00

Well, I have been on vacation. If anyone has seen the movie "planes, trains, and automobiles", you may be able to relate to my trip home (oh, BTW I am not back yet).

Between the rent-a-car GPS being in Japanese, to the Air France strike (which I ended up getting last seat on a train to paris, of course the worst seat on train, by the car door that opened every 5 seconds, and then flight to USA delayed from 9am to 7:30PM (yes, that is almost 12 hour delay, it has set a record for me), of course I did not account for a 12 hour connection time (silly me), so will miss my connection.

But you know what, in my old age, I am okay with this. (Yikes, is this a new me?) In life and business, you are thrown obstacles and challenges, many out of your control. If life and business went perfectly, it would not be any fun. Right? Be patient, enjoy the "extra" time, meet someone new, and remember to appreciate the times that do go well!

I did have a great vacation. Good company, great food, amazing wine, beautiful places!

Joke of the Weekend XXIX

2008-11-15T09:43:00.000-08:00

Are You a Professional?

The following short quiz consists of 4 questions and will tell you whether you are qualified to be a "professional."

Scroll down for each answer. The questions are NOT that difficult.

1. How do you put a giraffe into a refrigerator?

The correct answer is: Open the refrigerator put in the giraffe and close the door. This question tests whether you tend to do simple things in an overly complicated way.

2. How do you put an elephant into a refrigerator?

Open the refrigerator put in the elephant and close the refrigerator. Wrong Answer!

Correct Answer: Open the refrigerator, take out the giraffe, put in the elephant and close the door. This tests your ability to think through the repercussions of your previous actions.

3. The Lion King is hosting an animal conference. All the animals attend except one. Which animal does not attend?

Correct Answer: The Elephant. The elephant is in the refrigerator. This tests your memory.

OK, even if you did not answer the first three questions correctly, you still have one more chance to show your true abilities.

4. There is a river you must cross. But it is inhabited by crocodiles. How do
you manage it?

Correct Answer: You swim across. All the crocodiles are attending the Animal Meeting. This tests whether you learn quickly from your mistakes.

According to Anderson Consulting Worldwide, around 90% of the professionals they tested got all questions wrong. But many preschoolers got several correct answers. Anderson Consulting says this conclusively disproves the theory that most professionals have the brains of a four year old.

Laughter

2008-11-13T22:55:00.000-08:00

We don’t laugh enough at work (especially in these days of a troubled global economy). We spend at least 8 hours a day working, at least 5 days a week, at least 48 weeks a year (assuming you get four weeks vacation). We all need to have more fun at work.

At an all employee meeting several years ago, we had the FUN DOCTOR come to present and he was terrific. He illustrated several simple ways to have fun each day at work . . . ways to “spice” up the office. I think all the employees got something out of that presentation (which was a risk . . . but seemed to be a good reward). There are many things you can do to bring fun into the work place, you just need to think outside of the box.

Yesterday, I laughed more than I have in a long time. Why? Yes, I am on vacation, but it was Old colleagues coming back together (maybe drinking a few bottles of wine helped) . . . we talked about the fun times at work that we shared. When you think about it, the times when you do get together with work colleagues in a non-work environment, you do spend quite a bit of time discussing the fun times that happened.

Well, it is time to make those fun times now, so there is something to talk about in the future. What are you going to do today to have more fun at the office?

On Vacation

2008-11-13T08:43:00.000-08:00

I am currently on vacation in Bordeaux, France.

In the past, I have posted about work colleagues being friends. This trip is a statement of that as I am joining some past colleagues who are my friends for some wonderful wine and great food. It no longer matters who reports to whom because that does not matter anymore . . . however, now, we all can just say we are friends.

When you work on a business together, there is a special bond (similar to a team sport), you set a plan, implement the plan and assess the results. I am glad that I can call former work colleagues as friends.

So, when you look around who you work with, will you still be friends a year or more after you all have gone your own ways?

Moments

2008-11-12T06:56:00.000-08:00

When you think back about the top three moments (i.e., good things that happened to you, your team, your unit) in your business life, what is the common theme? Think about it.

They probably were not events that you were handed "the moment" . . .

It probably was not something that was totally planned or expected . . .

No.

It was something that you (and your team) were working hard. You were "going for it". It might have been risky because you did not know the ultimate outcome would be. The moment happened because it was a nice surprise from good work (and maybe a litle luck -although I believe you make your own good luck).

So remember, if you want more moments, Go for it. Be a little risky (yes, that risk reward balance).

Usually, when we have moments, we do not celebrate enough . . . so celebrate celebrate celebrate! They are too far and few between.

Now, what are you waiting for . . . go make a moment!

Everything is an Negotiation

2008-11-11T04:42:00.000-08:00

Why does it seem that everything is a negotiation? It seems frustrating so often, because "gosh darn it" you know you are right and being fair and the answer is just staring at everyone, but somehow no one but you see it. You seem to be the smartest person in the room!

Yes, I do feel this way sometimes . . . okay, maybe I feel this way many times.

However, I definitely not the smartest person in the room. It is important to see the perspective of others, they are probably feeling the same way (being the smartest in the room) but from their vantage point. In any decision where there involvement of multiple parties, the outcome needs to be what is best. Yes, good question, best for whom (see knew you were going ask)?

The business decision needs to be what is the best interest of the organization. Okay, but what if you disagree on what is in the best interest of the organization? Well, you need to go back to the vision and fundamental strategy of the organization (hopefully one does exist . . . ) and then enter the decision discussions (aka negotiation). If you depersonalize the business decision and focus on the strategy of the organization, the negotiation turns into a positive discussion and will end up with a good solution (and not exactly what you originally felt).

It is human nature to personalize business decisions, what is this going to mean for me . . . good, bad, or indifferent? I can tell you it is not easy to depersonalize the decision but if you can and focus on what is right for the organization in context of strategy, you will end up being less frustrated and a positive outcome will be achieved.

Need Direction

2008-11-10T03:44:00.000-08:00

Persian Proverb: When it is the darkest, you can see the stars!

When I have been in the bleakest of times, times where I was in the droldrums .. . I have found direction. The old saying, "light at the end of the tunnel". So, realize if you have been laid off or currently feel frustrated, you are in the right time to search for your new direction. Don't despair! There will be a light at the end of the tunnel.

At the darkest time, it is time that allows you to think differently and look inside yourself to find what you what your life to be.

This could also be when you, as a leader, lead a business which is not doing well. It is a wonderful time to look for a new or renewed direction for the business. You may have to take a few steps back to move forward again.

Joke of the weekend XXVIII

2008-11-08T05:41:00.000-08:00

The Americans and Japanese decided to engage in a boat race. Both teams practiced hard and long to reach their peak performance levels. On the big day they felt ready. The Japanese won by a mile.

The American team was discouraged by the loss. Morale sagged. Corporate management decided that the reason for the crushing defeat had to be found, so a consulting firm was hired to investigate the problem and recommend corrective action.

The consultant's finding: The Japanese team had eight people rowing and one person steering. the American team had one person rowing and eight people steering.

After a year of study and millions spent analyzing the problem, the consulting firm concluded that too many people were steering and not enough were rowing on the American team. So as race day neared again the following year, the American team's management structure was completely reorganized. The new structure: four steering managers, three area steering managers, and a new performance review system for the person rowing the boat to provide work incentive. The next year, the Japanese won by TWO miles!

Humiliated, the American corporation laid off the rower for poor performance and gave the managers a bonus for discovering the problem.

Together is Better

2008-11-07T07:16:00.000-08:00

I have found a new running buddy. He is a 26 year-old athlete who played college baseball and is a family friend. I think I am getting him addicted to this running early in the morning. Some highlights:

- when you want to sleep in and not run, you can't. Instead, someone is waiting for you.
- Someone who is in definitely better shape and runs a little faster than you do, and pushing you a little harder . . . makes you a better runner
- Running goes faster when you have someone to talk to along the way. When you are approaching the end, it's like "wow, we are already here".

As with a running buddy, a leader needs a team or colleague(s) for the same motivation and success

- the entire team and unit is motivation in itself . .. the team is dependent upon you. Business is not necessarily an individual sport.
- Colleagues (who might know more than you on some subjects) will push you and in the end you will have a better product (plus you might have learned something new)
- We face challenges all the time in business, those times seem to be easier and quicker when you accomplish it as a team, instead of doing it alone!

Dont do it alone, find a team or buddy!

Evaluating Job Offers

2008-11-06T06:31:00.000-08:00

As you develop a network of colleagues, you may asked to provide advice to someone on job offers. In addition, I have been lucky to have job offers in the past (and hope in the future). The advice I give is to focus on seven key elements.

1. Content of the Position
-What are responsibilities and authority of the position, the day-to-day activities, the what is to be done and how is it to be done.
- imagine what you will be doing in a month, six months, two years
- you should be honest with yourself and look at the negative aspects of the position (and there are such aspects to every job)

2. Challenge of the position
- Does the position provide the opportunity to make a significant difference to the success of the unit or the organization as a whole, immediately, short term, long term?
- You have to be realistic and recognize whether there's too much challenge or whether the tensions and stress connected with the challenge may more than you want, particularly if the stress is likely to be sustained over a long period.

3. Work environment
- you need to assess the climate and environment of the position, department or organization.
- remember you will not be working in isolation and what happens around you is important and will have a major impact on how you will operate, whether you will be happy and whether you will succeed or fail.

4. Chemistry
- How well will you get along with your direct supervisor, peers, colleagues, subordinates.
- are your values aligned with the organization?

5. Concern for Results and People
- Your reputation and future, livelihood, and job satisfaction are at stake and thus, you should be concerned about whether you are investing yourself in the right company.
- Ideally, an organization that has an outstanding future and strives to be better no matter how good it is now. The best can get better!
- Does the organization go beyond profits, and concern for the people who work there?

6. Compensation
- Not this is at #6, but will be different for different people, especially at different stages of their career.

7. Location
- If there is relocation involved (which so many executives turn down positions that require relocation), assess the impact on family, change in lifestyle, climate, removing oneself from family and friends.
- Assess the community where you will be living

Maybe these seem obvious, but changing jobs or selecting a new one is an important decision.

BLAH!

2008-11-05T07:07:00.000-08:00

If you have children, you know that your kids bring every kind of illness home from school. (Cough). Well, I got the typically headcold that moves down to the chest . . . (cough). I ache all over . . .

I promised a friend (cough) that I would run this morning, which I did. However, I sure did not feel like it (cough) . . . at the beginning, in the middle or at the end. I did finish (cough). Tomorrow is another day.

It just reminds me (cough) that as a leader/manager, you have to do things that you do not feel like doing, but you do it (cough). . . and you do it the best you can . . . It could be budgets, it could be distributing increases with a limited amount, it could be letting people go.

Remember, tomorrow is another day. (cough) You have to have "bad" days, so you have can have those great days. Here's hoping you have a great day.

Virtual Leadership Training

2008-11-04T05:12:00.000-08:00

Most of people get promoted into a leadership or management positions feel that they did not receive enough training. While some training can help, it is very difficult to train for the constant "putting out the fires" scenarios. Most of the learning is from on the job experience. Here is an article on video games providing those experiences of being in a leadership position. Interesting.

From MMO To CEO
Matthew Kirdahy
Forbes.com

http://www.forbes.com/leadership/innovation/2008/07/16/leadership-online-videogames-lead-cx_mk_0716ceo.html

Sean Conover has two jobs. One is at a computer forensics lab in suburban New Jersey; the other is in a fantastical galaxy inhabited by 250,000 intelligent life forms driven by power and greed. In one place, he takes orders. In the other, he gives them.

There are many more like Conover, and with good reason. It's in this virtual space where tomorrow's business leaders are being born. Mom may mock videogames no more.

The experience of playing online role-playing games can mold and shape real-world business leaders. Any of the tens of millions of people playing "World of Warcraft," "EverQuest" or "EVE Online" will tell you these games are about serving a greater purpose. Sure, you're free to explore at will and engage enemies from dungeons to mountain tops, but the majority of players with common goals band together to take perilous risks and build empires.

When Conover gets home from his 9 to 5 job, he logs onto a virtual world as "Darius Johnson," chief executive of "Goonfleet," a corporation composed of more than 2,800 players in "EVE."

The leadership experience has challenged Conover the same way the modern CEO is challenged. He worries about economics, employee morale, production, training and even a succession plan, which he's devising. (After all, the next guy has to be able to weather the storm too.)

There are hundreds of helpful online games out there. Gamers will pay as much as $15 per month to play. Some games are offered for free; others only ask players to pay for various in-game elements to enhance the experience, one that may ready you for the C suite.

According to a May Harvard Business Review article, titled "Leadership's Online Labs," there are an estimated 50 million registered online gamers worldwide in the genre commonly called "massively multiplayer online role-playing games" (MMORPGs or MMOs). "World of Warcraft" maintains the largest subscriber base at 10 million. "EVE" has 250,000. The report also cites the Palo Alto Research Center, saying these gamers--who are 85% men and are, on average, 27 years old--spend 22 hours a week playing.

The article's authors, Byron Reeves (Stanford University), Thomas W. Malone (Massachusetts Institute of Technology) and Tony O'Driscoll (North Carolina State), found that leadership in online games offers a sneak preview of tomorrow's business world. In fact, they said these games exhibit leadership abilities crucial to the future of business.

Among these games, "EVE" is structured most like the real world. Groups of players that come together to reach a common goal are called "corporations," which can then form alliances with other corporations.

Sometimes, reality mimics fiction--or at least videogames. CCP, the publisher of EVE, formed a nine-member Council of Stellar Management, to which the players elected Conover. The council functions much like a board of directors for the game. CCP even hired an economist full time to study the behaviors of EVE.

Conover admitted that while the game's business environment, set in outer space, behaves like one in the real world, there are some major differences. "EVE" and most games like it encourage risk-taking, but "you can take risks in a videogame that in business [would make] the shareholders revolt," he said.

Then there's the obvious.

"Essentially, my job is to make sure [the members] are having fun," Conover added. "For some it's mining an asteroid, for most it's shooting people," he said.

Hilmar Veigar Petursson, CEO of CCP, said the game is meant to develop a person's core leadership skill set. "EVE" caters to a hardcore audience. "There isn't a lot of difference [between] what you can apply within the game and out of it," he said. "It's more about social skills than gaming skills. It's very hard to stay on top."

Michael Morhaime, CEO of Blizzard Entertainment, owned by Activision Blizzard, maker of "World of Warcraft," said his game provides people with a chance to assume leadership roles when they might not have had the opportunity in real life. This is apparent in the formation of guilds, where communication is paramount. Players band together to form groups for economic and social reasons.

Morhaime said that for this reason, he thought fans who enjoyed the single-player experience of previous Blizzard titles would shy away from "World of Warcraft." He found the opposite to be true. "The reason behind that is it's such a social experience," he said.

These games can also fuel the entrepreneurial fire.

Some gamers, like Trey Ratcliff, may be inspired by the experience and start their own company. Ratcliff is a former "EVE" player who is now CEO and co-founder of John Galt Games. He said he always had an entrepreneurial spirit and even ran a company before he played "EVE," yet he drew on his experiences in gaming and as a professional consultant to pursue a leadership role in business.

Ratcliff said his company is developing an online game called "Web Wars." He's keeping the major details quiet, but did say it would be free to play, with in-game options to spend money. Plus, it's sure to incorporate all of the leadership challenges the genre presents to online gamers worldwide. "Every human has this genetic predisposition as a leader, artist, whatever it might be," Ratcliff said. "You can nurture that nature much quicker with MMO's. There were all these great leaders out there [who] never had a vehicle to have them rise to the top."

Until now.

Leadership outside of business

2008-11-03T05:15:00.001-08:00

This past weekend, I attended a Cub Scout campout with my sons. Yes, this was a real camp out (tent, out in the wild, campfire, etc.). My back is still hurting (I bought a blow up mattress to sleep on, however, during the night the air all came out).

There were many activities during the day and night. I was picked to lead one of the activities, building a rocket that we would launch under air pressure. I am still not sure how I got picked, in these kinds of activities I am normally happy being a helper.

Anyway, I found myself enjoying leading this group of eight year olds.
- the kids were very focused on getting the project complete
- everyone contributed
- good ideas were built upon other good ideas and in the end had a great "product"
- after completion and carrying over the rocket, you could see the team was proud of their accomplishment
- when it was launched, the exultation that was experienced by the team was so rewarding to me (even surprised myself)

Bottom line: again, the same leadership techniques can be used in all scenarios, does not have to be business (settting out a vision/goal, keep focus, get all members to contribute in their own special way, listen to all ideas as ideas together produce a better product, all are proud when they accomplish a good result, nothing is better than shared success).

In my current individual contributor role, I do miss leading a team (maybe I will just get involved in leading more activities).

Joke of the Weekend XXVIII

2008-11-01T05:24:00.000-07:00

For those Project Managers out there . . .

Project Management Proverbs

1 It takes one woman nine months to have a baby. It cannot be done in one month by impregnating nine women.

2 Nothing is impossible for the person who doesn't have to do it.

3 You can con a sucker into committing to an impossible deadline, but you cannot con him into meeting it.

4 At the heart of every large project is a small project trying to get out.

5 The more desperate the situation the more optimistic the situatee.

6 A problem shared is a buck passed.

7 A change freeze is like the abominable snowman: it is a myth and would anyway melt when heat is applied.

8 A user will tell you anything you ask, but nothing more.

9 Of several possible interpretations of a communication, the least convenient is the correct one.

10 What you don't know hurts you

11 There's never enough time to do it right first time but there's always enough time to go back and do it again.

12 The bitterness of poor quality lasts long after the sweetness of making a date is forgotten.

13 I know that you believe that you understand what you think I said, but I am not sure you realise that what you heard is not what I meant.

14 What is not on paper has not been said.

15 A little risk management saves a lot of fan cleaning.

16 If you can keep your head while all about you are losing theirs, you haven't understood the plan.

17 If at first you don't succeed, remove all evidence you ever tried.

18 Feather and down are padding, changes and contingencies will be real events.

19 There are no good project managers - only lucky ones.

20 The more you plan the luckier you get.

21 A project is one small step for the project sponsor, one giant leap for the project manager.

22 Good project management is not so much knowing what to do and when, as knowing what excuses to give and when.

23 If everything is going exactly to plan, something somewhere is going massively wrong.

24 Everyone asks for a strong project manger - when they get them they don't want them.

25 Overtime is a figment of the naïve project manager's imagination.

26 Quantitative project management is for predicting cost and schedule overruns well in advance.

27 The sooner you begin coding the later you finish.

28 Metrics are learned men's excuses.

29 For a project manager overruns are as certain as death and taxes.

30 Some project finish on time in spite of project management best practices.

31 Fast - cheap - good - you can have any two.

32 There is such a thing as an unrealistic timescale.

33 The project would not have been started if the truth had been told about the cost and timescale.

34 A two-year project will take three years, a three year project will never finish.

35 When the weight of the project paperwork equals the weight of the project itself, the project can be considered complete.

36 A badly planned project will take three times longer than expected - a well planned project only twice as long as expected.

37 Warning: dates in a calendar are closer than they appear to be.

38 Anything that can be changed will be changed until there is no time left to change anything.

39 There is no such thing as scope creep, only scope gallop.

40 A project gets a year late one day at a time.

41 If you're 6 months late on a milestone due next week but really believe you can make it, you're a project manager.

42 No project has ever finished on time, within budget, to requirement
Yours won't be the first to.

43 Activity is not achievement.

44 Managing IT people is like herding cats.

45 If you don't know how to do a task, start it, then ten people who know less than you will tell you how to do it.

46 If you don't plan, it doesn't work. If you do plan, it doesn't work either. Why plan!

47 The person who says it will take the longest and cost the most is the only one with a clue how to do the job.

48 The sooner you get behind schedule, the more time you have to make it up.

49 The nice thing about not planning is that failure comes as a complete surprise rather than being preceded by a period of worry and depression.

50 Good control reveals problems early - which only means you'll have longer to worry about them.

51 It's hard to remember your job is to drain the swamp when you're up to your a--e in alligators.

Damn it, would you make a Decision!

2008-10-31T06:42:00.000-07:00

Too many times, it takes too long to decide on major or even minor actions. Yes, decisions deserve careful study, gathering of the facts, assessing alternatives, but after all the analysis, the leader/manager who hesitates too long will be lost. Competition may overtake you and a late excellent decision may be no better than an early good decision.

In support of the World Series of baseball, let's use a baseball analogy.

Decision making is difficult, but can be very rewarding. The person who steps into the decision maker's batter's box confidently, challenges the pitcher, and takes the best swing is more likely to get the extra base hit than the person who is not confident, prone to be overpowered, and simply seeks to not look bad.

In the end, the ultimate test of an executive is their judgement and ability as indicated in the decisions they make, and how they make, implement, assess, and fine-tune or change them.

May all acquaintances never be forgot

2008-10-30T06:22:00.000-07:00

I have been in London this past week and was able to connect with some long-time colleagues (some I have not seen in over three years). All are doing well and all are at new companies (one starting his own business). It is amazing that when you catch up with people, they have improved their situation (whether personally, financially, living where they want to live, doing something different that they always wanted to do, etc.) So there is hope for all of us, we just don't realize it.

It was interesting that most of the conversations were about the present and future. Little was discussed about the "good old days". Yes, there were questions around "hey how is so and so doing" or "remember that time when . . .".

The point of this post is that as a leader, I am proud how people continue to grow in business and their personal life. People that maybe I had a very small part in helping them along as a colleague/leader. I know, they no longer report to me but we had established a relationship that was more than a boss to subordinate but one is based upon mutual respect that continued over time. It seems when you work together accomplishing great things, you do create a bond that is difficult to be broken.

Yes, I have angered people in the past and might not have always made the right decisions, but it is nice to see that people respond to my email to have a drink and catch up after so many years. As a leader, I do my best to treat people with dignity and respect and it is a pleasure to catch up with old colleagues and hearing about their new adventures. Building a network is important and the best network is the one that is filled with people I have worked with. So, if you want to improve your network, reach out to an old colleague today (right now) and reconnect via email, text message, facebook, linkedIN, etc, you will be glad you did!

What have you done lately?

2008-10-29T04:26:00.000-07:00

I periodically hear from people who talk about their past successful track record and accomplishments . . . constantly. (it is kind of like a high school star athlete who never quits talking about how great things use to be). Yes, that wonderful track record gave them credibility in getting the new position . . . and may have made a long-lasting contribution to the business (that's great). And others may sing their praises since they left because they were maybe more valuable than people realized at the time. In my view, they are entitled to the acclaim and reward that they received (hey, they earned the promotion, big bonus, etc.), but after a while, it is time to get over it. If you hear somebody mentioning all of their accomplishments on their former job, they are in trouble . . . especially if there is no mention on any accomplishments with the present job!

The old applause and accolades last only so long. You need to earn your applause in each job and each year. Again, "what have you done lately?". Hey, it is okay to talk about the old accomplishments, but just don't forget about making some new ones (plus it will give you more to talk about in the future).

The Silent Majority

2008-10-28T08:52:00.000-07:00

How many meetings have you been to where there is one person who speaks louder than everyone else? Consequently, it is so loud that you feel that this is the majority opinion of all in the room.

As a leader, it is important to focus on more than the vocal few (whether clients, staff, other leaders, etc.). If you don't and remain based upon the few, you just might be making decisions based upon limited and sometimes wrong information. Get out there! Talk to people and ask questions, gather feedback and input from those that are not as vocal (or what I call the silent majority). If more people support the vocal few, you will be more confident in your strategic decisions. If they do not support the vocal few, learn what are the real issues and maybe you need to segment your clients or staff to address different issues.

Yes, it is hard work to gather feedback. It is easy to listen to just a few. Do your diligence and you will be more successful for it!

Not Feeling Productive?

2008-10-27T12:18:00.000-07:00

I was talking to an old colleague last week. They felt a feeling of not being as productive as they could be. It was a feeling of not being sufficiently challenged, stimulated or excited by the job now and as you look down the road: a feeling that present and future problems and opportunities are not new or taxing or that they are actually downright boring. They had a belief that energy, creativity, talent and potential are not being tapped as fully and as frequently as possible. They look a year from now and do not see a lot of upside by doing what they are currently doing.

Does this sound familiar?

You can change this Manager's "malaise". Here are a few ways.

1. Change and vary the breadth, depth and type of assignment. Worse case, it is a new company, but before that try a new special project to mix things up from the past.

2. Gain new knowledge. Attend a conference, seminar, training. Do something that will advance your skill set.

3. Lead a task force on an important issue.

4. Gain an opportunity for a short-term or long-term travel assignment.

5. Exercise

6. Help set ambitious and tough objectives for you and your unit and strive to attain them. This will get you going (unless there are frustrating hurdles that will prevent the success as that could make the feeling worse)

7. Do a lunch that is not work-related.

There are many more but bottom line, you are in a funk and need to find a way out. Doing the exact same things will not produce new results, so you must change something about what you are currently doing.

Joke of the Weekend XXVII

2008-10-25T07:54:00.001-07:00

Lots Of Overtime

BOSS: 'And how long did you work in your previous place of employment?'

JOB APPLICANT: 'Thirty years.'

BOSS: 'Hang on a minute! It says on your application form that you are thirty-two years old. How could you have worked there for thirty years?'

JOB APPLICANT: 'I did a lot of overtime.'

Curiosity

2008-10-24T05:04:00.001-07:00

As you may know from previous postings, I have two sons (8 and 7 years of age) and two older daughters. All parents have wonderful children stories and I periodically share these on this blog and relate it some way to leadership. This is another one.

Earlier in the week, my 8 year old was taking a bath. I was out of town and my wife was "close by" in his room and decided as she was waiting for him to finish, she would polish her toes (red by the way). She accidentally left her nail polish on his desk in the room.

The next evening, he asked to take another bath (those with boys know how they hate to take a bath, so back to back bathings was a very strange occurence). She said "Sure". He then asked "Can I wear my water shoes in the tub?". SIDE NOTE: If you don't know what water shoes are, they are thin slip-ons that prevent slipping at a pool or helps walk on rocks at lakes/rivers/swimming holes (which Austin has many). She said "Sure", and did not ask why the bath nor why the water shoes, although he did wonder.

Here is what happened. After school, he found the nail polish on his desk that his mother had left and decided hey, I wonder what it is like to polish my toe nails, it looks kind of fun. After he did it, he was shocked to find out that it did not come off by rubbing it off. He tried to wash it off at the sink, again, with no luck. So, he thought if he took a bath and soaked, it would wash off (just like his paints he uses to paint pictures). He did not want anyone to see, so the reason about wearing water shoes.

Now, he would have never had said anything if it wasnt that his mother saw the nail polish and noticed the nail polish bottle and some red spots on his desk and went to the bath tub and asked if he had used the nail polish on something (thinking the worse, on walls, etc.). As my wife says, you would have thought a huge burden was lifted when he showed her his toes (my wife has a great way of remaining calm and not laughing, but if it was me, I would have been on the floor laughing (oh, OTFLOL). He explained what happened and he has been trying his hardest to get it off for the past hour but nothing is working. She explained about nail polish remover and they removed the nail polish together. He was extremely relieved. However, he did not want anyone to know, his brother, his dad, etc. Well, I needed a good laugh this week and my wife shared the story with me. My readers can keep a secret, right?

Okay, so why post this story? (1) luckily, he doesnt read the blog (not sure anyone actually does), (2) there are leadership lessons on several fronts, but one in particular. When you make a mistake, do not "hide" the issue if you cannot resolve the issue yourself. This is the worse possible thing that you can do. Yes, even if it is embarrassing, it is best to find someone that you can share with and resolve the issue. It will be a huge relief when you resolve the issue. Oh, and as a leader, follow my wife's example and not mine (as I would have been laughing, where my wife was a true leader by focusing on resolving the issue and not making fun of him).

Quality in Tough Times

2008-10-23T07:10:00.000-07:00

As I have said, when times are tough, those organizations with solid foundation/relationships and quality products/services will weather the storm, i.e., a house made of brick versus hay. It is also a good time to focus on efficiency within your own organization, are there processes that can be put in place to make the operations more productive. Many times, we continue to operate as we do because we do not have time to step back and revisit how we do things. We are entering a time where we can do that and produce products faster and with higher quality.

And, if you are a small business, read this article.

The Crisis May Be a Boon for Some Small Businesses

From cheaper real estate to old-fashioned attention from banks, small businesses owners may see some good times ahead
By Gene Marks
Businessweek.com

http://www.businessweek.com/smallbiz/content/oct2008/sb20081020_489867.htm?campaign_id=rss_smlbz

Yes, it's definitely bad out there. And it will probably get worse. But most small business owners like me can also find some hopeful signs coming out of the financial nightmare gripping this country. I'm talking about people who have been running businesses for a while, who employ people, and have customers. Startups are a whole other thing (and good luck to them at the present!). It's those established business owners who will see some benefits of this mess in future months. Here are a few reasons why.

We're about to have a better relationship with our banker than we've ever had.

Know how over the past few years banks have been ignoring us, chasing the big money? Remember when we used to get tickets to the ball game or taken out for a round of golf? It's going to come back. Suddenly, those boring little local banks that lent money to small businesses with actual assets are looking pretty smart right now. Surviving institutions, their egos bruised and their credibility in ruins, are going to want to be just like them. Look for a change in the way the banking industry operates. A little more humble. A lot more relationship. They've taken their eye off the ball, chasing those subprime mortgage pots of gold for too long. Prepare for a resurgence of the old fashioned banker. Our businesses will be better off because of it.

We'll forget about stocks for a while.

In the good old days of the Dow 14,000, it looked as if the sky was the limit. Hey, why not take that extra cash and invest it on Wall Street? Who cares about that peeling paint and underpaid manager? We don't need those product enhancements or new machinery. There's money to be made with that guy from Merrill Lynch (MER)!

Well, we've all been burned a bit. And that guy from Merrill Lynch is serving me pepperoni slices at the local pizza shop. We've learned a lesson. Maybe investing our excess funds in better equipment or our people is a better long-term investment than that mutual fund holding securities in a company I've never heard of. Now that the stock market has lost its shine, business owners will start doing what we should have been doing all along. Reinvesting our money into our own companies is good for…us.

We'll rediscover our balance sheets.

Those bankers I mentioned before? Well, not only will they be paying more attention to us but they'll be paying even more attention to our financial statements. Those quarterly numbers and covenants from our loan agreements that they always seemed to overlook because they were too busy chasing those other big deals? They'll be looking at them now, trust me. Get ready to face some scrutiny. The last thing these bankers want is to get burned again.

But this is not a bad thing; it's a good thing. Quarterly financial statements and debt covenants are not a punishment. They're great metrics to help evaluate the profitability and value of a company. Shouldn't we have been paying close attention to all of this in the first place? It'll be more difficult to get credit for those companies that probably shouldn't be getting credit in the first place. There will be better financing opportunities for those companies that deserve it. It's time that we all get more disciplined. More prudent. More focused. Our bankers are now going to require this. And for good reason.

We're going to raise our prices.

Why? It won't be just to keep up with inflation (which is probably going to happen from all the money flooding the system by the Fed). It'll be because all of those idiot competitors of ours, without financing and facing a slow economy, are going to start choking on the fumes of their sputtering businesses. Suddenly, not showing up to jobs and doing shoddy work is going to mean something.

We knew they didn't know what they were doing. And now they're going to live down to their expectations. We've always known we do better work. And that our prices are worth it.

But how can we possibly prove it when some knucklehead with half the experience is also charging 20% less? Watch them fall. And watch our prices rise. Recessions and financial crises have a way of pruning the fat from the economy. The strong survive, and rise we shall.

We'll have a little more respect for regulation.

Small business owners, like myself, are loath to give the government credit for anything. We hate red tape and all the things that bureaucracy can to do to a capitalist society. We don't like big government spending or large tax increases. It's just part of our DNA.

But even this right-of-center writer has to have a little respect. It's not 1929 or 1907. There's the Fed and the Treasury and the Securities & Exchange Commission. No, they're not perfect. But they've kept the system going at a time when, historically, it would have imploded spectacularly.

They've so far coordinated pretty well with foreign central banks. Congress is raising the FDIC insurance coverage on our bank accounts. They're stepping in to do something to right all those bad loans. And they're making it easier for Warren Buffett to make even more money. I'm happy for Warren Buffett, too—he seems like a really nice guy. They have proven to me that there needs to be a role for regulation in a capitalist society.

We'll grab some space, too.

One day the newspapers are crying because real estate is so high no one can afford it. The next day they're crying because prices have dropped.

Well, we're not crying. The bursting real estate bubble means that we can finally, finally, finally buy that building or rent that space at a reasonable price. Not that overly inflated fairy tale of a price we were offered just a year ago. Now's the time to look for bargains. And the bankers will loan us the money…after they've protected us both by doing the appropriate amount of due diligence.

This year's going to be tough while the economy rights itself. But better days for small business owners are on the horizon. If we're lucky, we've got a few bucks in the bank and a few good employees still working hard for us. With that combination, smart business owners, and their newfound banking friends, will take advantage of this financial crisis and turn it into a long-term success.

Thrive in Tough Times

2008-10-22T06:47:00.000-07:00

I could not have said this any better. This is a good post. We are and will face some tough times, thinking outside of the norm could provide you a competitive advantage. As I have said before, if you focus on providing solutions to client problems at a solid value to price ratio, you will be successful.

How Great Leaders Thrive in Tough Times
Posted by David Mammano

http://blog.inc.com/start-up/2008/10/how_great_leaders_thrive_in_to.html?partner=rss

Chester Arthur, who served as President of the United States from 1881 to 1885, will never be regarded as one our great leaders. In fact, many Americans would be hard pressed to identify him as one of our presidents.

Arthur, who served after President Garfield was assassinated, may well have possessed the basic qualities of a great leader. But the time of his presidency was fairly stable, so he was never called upon to step up.

Tough times, on the other hand, are when great leaders show their stuff. If you look at many of the famous leaders throughout history, you'll notice they became famous because they navigated through seemingly impossible times. They held the flashlight at the end of the tunnel.

Legendary leaders such as Abraham Lincoln, Susan B. Anthony, Franklin Delano Roosevelt and, more recently, Rudy Giuliani come to mind. All were faced with incredibly complex or catastrophic situations. Instead of cowering in indecision, they reacted boldly and aggressively. They threw conventional wisdom out the window and developed their own playbooks on the spot.

So what does this have to do with entrepreneurs? In short, it's time to step up as leaders of your enterprises. Extremely difficult economic times are here and may be here to stay. You're time to shine is here.

So what is a business leader to do? The reflexive action is to take a hatchet to the budget, impose layoffs and halt all plans for growth. These steps are relatively easy to take, so leadership skills rarely come into play. And often, they are exactly the wrong things to do.

But great leaders know that only dead fish swim with the current. So they work harder to get through trying times, searching for more creative solutions and inspiring their coworkers to stay engaged. They also take some time to pause and think because they know they shouldn't react impusively. Only then do they act.
So how am I trying to live up to this leadership ideal? After pausing to think, I'm taking the following steps:

1) I asked my coworkers to help me look at our expenses and figure out where we can cut. Engaging the staff in this process is crucial. They need to understand that it's a time for sacrifice, and they'll be happy to be part of the process if you let them.

2) I'm looking for new opportunities that arise from the economic problems we're facing—new trends or market needs that will rise up because of the hard times.

3) I'm enhancing customer service to make sure the people who already love what we do don't slip away. It might be hard to find a lot of new business during a recession, so we need to work even harder to convince our current customers to sit tight?

4) I'm doing more marketing, not less. Many companies reflexively shut off their advertising efforts during tough times. I'd rather shut off the water supply than my marketing. With fewer customers in the market, we need to fight even harder for those that remain! Plus, if my competitors stop advertising, I'll get more bang for my buck in the ad market. And if the market is less cluttered, our marketing efforts stand a better chance of getting noticed.
Bottom line: Don't be depressed about the tough times ahead. Get excited and view it as an opportunity to test your skills as a great leader! Chester Arthur would have relished the opportunity.

ROE: Return on Enjoyment

2008-10-21T04:58:00.000-07:00

When are you the happiest at work? Is it the end of the day and you are ready to go home? (not good BTW).

When I step back and examine the most enjoyment I have/had at work, I categorized work/project into three sections: Planning, Building, Finishing. Yes, this is simplistic.

With Planning, this is the idea phase, e.g., brainstorming for a solution, where you are working to solve a new problem or creating a new market. This phase has enjoyment, able to think anew and don't have the added pressure to actually build it.

With Finishing, this is the closing phase. This might be finding out that you won an account or that the product is created and now its time to roll it out. This phase has a sign of accomplishment as you are delivering the product/services.

With Building, this is the creation phase. The Idea becomes reality. As you implement/build, you run into challenges that must be addressed. The enjoyment for this phase is the creation of value.

When I review these three, the last one has the highest return on enjoyment for me. It might just be the most difficult phase but this is where teams come together to build value. When I look back on my leadership roles, the times we implemented the vision/goal was most enjoyment. Each time, the results might not have been the best, there were many doubters, but there were a few people who believed and came together to create a foundation of future success. At the time, it might not have seen the happiest, but in hindsight it did have a high sense of enjoyment and accomplishment.

Bob the Builder really rocks!

Start a Company in Recession

2008-10-20T06:22:00.000-07:00

What is your dream? Do you have an idea that you think would be successful if . . . only . . . you took the risk? This article below discusses that the best time to start a company might be during a recession.

Starting Up in a Down Economy

Nobody loves a recession*. But many successful entrepreneurs say that, in retrospect, they were lucky to have launched their businesses in tough times.

By: Ryan McCarthy, Nadine Heintz, Bo Burlingham
Inc.com

http://www.inc.com/magazine/20080501/starting-up-in-a-down-economy.html

Case Study No. 1: How Method Weathered the Dot-com Bust
* A recession is commonly defined as two consecutive quarters during which the country's gross domestic product shrinks. It is too soon to say whether the economy is in a recession now.

When they look back on the early days of their start-up, Adam Lowry and Eric Ryan remember that a lot of potential investors laughed at them. The Bay Area, where they were living, was awash in Internet start-ups. Each week in 2000 brought another glitzy launch party or news that the scantest of business plans had attracted venture capital. Even office landlords were demanding equity from their dot-com tenants. Lowry and Ryan, who wanted to start a company to make -- of all things -- humdrum household products, were decidedly out of step with the times. "You had the sense that there was this real historical thing going on in the region, even if it was not going to end well," says Ryan.

Still, Ryan and Lowry felt they had a good idea. Method, their start-up, wouldn't sell just any household products. Its soap and cleaning supplies would be made from environmentally friendly ingredients and would come in chic packaging. Compared with the products of giants like Procter & Gamble (NYSE:PG) and Clorox (NYSE:CLX), Method's merchandise would be hip. So the partners passed on interesting and potentially lucrative job offers and pooled $100,000 in personal savings to get started.

You know what happened next: The go-go New Economy abruptly ran out of steam. Dot-coms ran out of money, layoffs were rampant, and the entire city of San Francisco seemed to suffer from an economic hangover. People started to worry openly about a recession.

Like most business owners facing hard times, Lowry and Ryan focused on their costs. They were expert bootstrappers, mixing cleaning solution in a bathtub, bottling it themselves, and driving around town to restock shelves. They would accost any store manager who would listen to their spiel. They returned to some stores three and four times before they got an order, and little by little their sales pitch improved. And the partners noticed something else: Compared with the situation a year before, when there seemed to be five start-ups for every idea for a business, the competition was relatively muted. "Starting a business in a recession is like vacationing in the off-season," says Ryan. "It's a little less crowded, and everything starts going on sale."

By spring of 2001, Lowry and Ryan had gotten small-batch production on track and had hired a CEO named Alastair Dorward. But Method's debt stood at $300,000, split among the three men's personal credit cards. Payments to their vendors were three or four months past due, and at one point Lowry and Ryan had just $16 left in the bank. "We had to appeal to the inner entrepreneur of each of our vendors," says Lowry. "We had to sell them on the fact that Eric and I could do something that had never been done before."

Lowry and Ryan also tried again to raise money, and with VCs falling out of love with dot-coms, they found that there was more interest in their idea. In early September 2001, the partners received a term sheet for $1 million -- a sum that would allow Method to get current on its bills and then begin to expand. They were set to close the round on September 11. Needless to say, the deal didn't go through right away; the partners finally closed in November. And there were some serious strings attached. Lowry and Ryan would receive $550,000 up front. Of that money, the legal fees associated with the transaction would eat up $110,000, and $300,000 would go to pay outstanding vendors' bills. That left Method with $140,000 in capital. To get their hands on the remaining $450,000, Lowry and Ryan were obliged to meet a key milestone: They would have to add distribution to 800 stores by March, which was just five months away.

The tenuous nature of Method's financial situation was underscored at the dinner Lowry, Ryan, and Dorward hosted to celebrate the deal. The partners gathered their investors plus their lawyers and accountants at an expensive restaurant in San Francisco. When the bill came, Lowry's credit card was declined. Then Ryan's card was declined. And Dorward's. Their backup cards were declined, too. "It's a good thing Eric knew the owner of the restaurant," says Lowry. "We convinced him we were good for it -- that that guy over there was about to give us a million bucks."

Method did make it into 800 stores by March -- though just barely. When Lowry and Ryan got the remainder of their Series A funding, they paid off old accounts and then jumped right back into fundraising mode. With the recession in full swing, venture capitalists were being very picky when it came to making new investments. But Method, which had been ignored barely 18 months earlier, was suddenly a Bay Area darling. "It was really interesting," says Lowry. "We used to be completely off investors' radar screen, but when the bubble burst, people were clamoring for us. Our business plan wasn't some sort of ad-based or online thing that was hard to understand. Our model was, 'Hey, we're going to make this cool product, and if you think we can sell a lot of it, then it's a good investment.'"

Being able to raise money in 2001 undoubtedly put Method on the growth path. By 2006, the company had $71 million in sales, and today the founders are pushing to reach $100 million. But Lowry and Ryan look at the period before they raised money, when they struggled and nearly drowned, as pivotal. In retrospect, the fact that they had to hone their pitch in countless meetings with store managers and vendors was fortuitous. They were practiced enough that by the time their big break came -- pitching Target for national distribution -- they didn't blow it. Which raises the question: Did the recession actually make Method better? The founders think so. As Ryan puts it, "The hungriest wolves hunt best."

. . .

Case Study No. 3: Hard Lessons Learned From Clif Bar's Fast Start
Gary Erickson couldn't have cared less about the state of the economy as he drove across the Bay Bridge in September 1991. What he needed was a name for his new energy bar. The next day, he was going to a cycling industry trade show. Bike shops figured to be his main retail outlets, so this was a chance to get buzz. Without a name, he might as well stay home.

Then, as he made his way to the office of his package designer, it came to him: Clif. It was his father, Clif, who had instilled in him the love of the mountains, who started him skiing at the age of 4, who was responsible for all of his outdoor passions, from rock climbing to bike racing. It was perfect. And so Clif Bar was born.

Although he didn't know it at the time, Erickson started his business in the middle of a recession. The downturn began in July 1990, four months before it dawned on Erickson that he could make a better-tasting energy bar than PowerBar, which had the market to itself back then. By the time he shipped the first Clif Bars, in February 1992, the recession was officially over, although the hard-times mentality lingered long enough to ensure Bill Clinton's election that fall.

"The economy, stupid" may have been as much of a boon for Erickson's start-up as it was for the Clinton campaign. Erickson found, for example, that contract manufacturers were delighted to do business with him. Would that have happened if they hadn't been worried about their own sales at the time? Perhaps. It would certainly have been more difficult for him to have signed them up if the economy had been booming and they had had all the work they could handle. He could have found himself pleading with vendors to take on a start-up that might not have survived long enough to pay its bills.

And unlike the owner of an established business, who faces a number of distractions in a recession, Erickson was free to focus on developing the bar, marketing, finding distributors, and so on. When you're starting out, you naturally worry most about the possibility of failure, and so you devote your energy to avoiding it, which means making sales and generating cash.

What people seldom prepare for is the possibility of success, especially when times are tough. (Boom times are different. In the late 1990s, it often seemed that most entrepreneurs were already figuring out how to spend the money from their future IPOs.) And yet success brings with it dangers of its own, as Erickson soon discovered.

Today, Erickson says a "cocktail" of factors made it possible for him to start Clif Bar back in 1991. Without any one of them, he probably would not have launched the business. To begin with, there was the wholesale bakery he had founded in 1986, at the age of 29. He named it Kali's Sweets & Savories, after his grandmother, Kalliope. It made Greek calzones and cookies, all from his mother's recipes. He sold them to specialty food retailers in the Bay Area, such as Peet's Coffee. By 1991, the bakery employed 10 people and was doing close to $300,000 a year in sales but had yet to break even. Erickson estimates that it was losing from $10,000 to $20,000 per year -- a situation that was no doubt aggravated by the recession. He worked nights and drove the delivery truck on Tuesdays and Fridays. By day, he continued to work full time at a bicycle company. To help manage the business, he brought in Lisa Thomas, a bookkeeper for his brother's foundry. Grateful for her involvement, he made her a co-owner of Kali's, with 50 percent of the stock.

Erickson doubts he would have been successful with Clif Bar without the education he received at Kali's. "Your entrepreneurial M.B.A. begins when you start your own business and sign a check, hoping it doesn't bounce," he says. "If Kali's had never happened, I'd probably still be working for a bicycle company."

Of course, that job in the bike industry was another ingredient of the Clif Bar cocktail. "I was involved in industrial design and manufacturing there," he says. "I ran a facility with 40 people. I knew how to manage a P&L. So none of that scared me. And I understood the market that PowerBar had developed, so it wasn't hard to visualize that I could draft off their wheel, as we say in bike racing."

Bike racing was the last part of the cocktail. One weekend in November 1990, a friend invited Erickson on a 125-mile ride that turned out to be 175 miles. He had brought six PowerBars with him. After he ate the fifth one, Erickson found a 7-Eleven, where he devoured half a dozen powdered doughnuts. Right then, he had an epiphany: He knew he could make a better-tasting product.

Erickson spent the next 15 months developing his energy bar while Thomas looked after Kali's. Working with his mother in her kitchen in Oakland, he tried various flavors and used his bike-riding buddies as taste-testers. Meanwhile, he found a bakery that had the necessary equipment to make the bar and was eager for the business. Once he had figured out the bar's size and shape, he went to work on the packaging and kept at it right through the trade show in September 1991, which was a big success. More than a thousand bike shops expressed an interest in carrying Clif Bar.

It took another five months to launch. By then, Erickson had two distribution agreements in place, but his expectations were modest. "PowerBar was doing probably $6 million or $7 million a year at the time," he says. "I'm thinking, Gosh, if we could grab 20 percent of their market share, we could get to $1 million, maybe even $2 million, and laugh all the way to the bank."

In February 1992, Erickson shipped the first 30,000 Clif Bars to his distributors -- and the product took off. Sales totaled $700,000 in the first year and $1.2 million in the second. In 1994, he blew past his initial goal of $2 million in sales. And around that time, he discovered his first costly mistake. It involved his two distributors. Erickson felt their performance was faltering, and he wanted to bring distribution in-house. The problem was, he didn't have a contract with either company. Out of naiveté, haste, or reluctance to spend money on a lawyer, he had done both deals on a handshake, and the distributors' understanding of what they had agreed to was different from his. He wound up settling with both of them at a total cost of $2 million.

The second mistake took a longer time to reveal itself and was much more serious. In launching Clif Bar, Erickson had neglected to set it up as an entity separate from Kali's. As a result, he and Thomas each owned 50 percent of the stock. The full consequences of that decision -- or nondecision -- became apparent in 2000, when Erickson turned down an offer of $120 million for Clif Bar.

Thomas wanted to accept it, and as an equal partner, she could have brought down the company if Erickson didn't accede to her wishes. In the end, parting ways with Thomas cost him more than $80 million, including interest, legal costs, and noncompete fees -- all for a mistake that could have been easily avoided in 1991.

"I could have left her as 50 percent owner of Kali's and told her this was a new business, which it was," Erickson says. "Instead, I just rolled Kali's into Clif Bar."

Lessons in entrepreneurship don't get much more expensive than Gary Erickson's -- at least not for people whose companies survive. Despite the burden of the buyout, Clif Bar managed not only to survive but to prosper. This year, Erickson expects sales to top $200 million. Succession is the big question on his mind these days, although he does wonder about the possible impact of a third recession in 18 years. Somewhere, after all, another start-up could be taking aim at Clif Bar, and a recession might be just what it needs.

Joke of the Weekend XXVI

2008-10-18T09:25:00.000-07:00

Happy to provide from a friend from downunder . . .

YOUR YEARLY DEMENTIA TEST

It's that time of year again, time to take the annual senior
citizen test.

Exercise of the brain is as important as exercise of the muscles.
As we grow older, it's important to keep mentally alert. If you don't
use it, you lose it!

Below is a very private way to gauge your loss or non-loss of
intelligence

Take the test presented here to determine if you're losing it or
not. The spaces below are so you don't see the answers until you've
made your answer.
OK, relax, clear your mind and begin.

1. What do you put in a toaster?

Answer: 'bread.' If you said 'toast,' give up now and do
something
else. Try not to hurt yourself.
If you said, bread, go to Question 2.

2. Say 'silk' five times. Now spell 'silk.' What do cows drink?

Answer: Cows drink water. If you said 'milk,' don't attempt the
next question. Your brain is over-stressed and may even overheat.
Content yourself with reading a more appropriate literature such as
Auto World. However, if you said 'water', proceed to question 3.

3. If a red house is made from red bricks and a blue house is
made from blue bricks and a pink house is made from pink bricks and a black
house is made from black bricks, what is a green house made from?

Answer: Greenhouses are made from glass. If you said 'green
bricks,' why the hell are you still reading these??? If you said
'glass,' go on to Question 4.

4. It's twenty years ago, and a jet plane is flying at 20,000 feet
over Germany (if you will recall, Germany at the time was politically
divided into West Germany and East Germany ). Anyway during the flight,

TWO engines fail. The pilot, realizing that the last remaining engines

are also failing decides on a crash landing procedure.
Unfortunately, the engines fail before he can do so and the plane
fatally crashes smack in the middle of 'no man's land' between East and West Germany .

Where would you bury the survivors? East Germany , West Germany or 'no
man's land'?

Answer: You don't bury survivors. If you said ANYTHING else,
you're a dunce and you must stop. If you said, 'You don't bury
survivors', proceed to the next question.

5. Without using a calculator - You are driving a bus from London
to Milford Haven in Wales . In London , 17 people get on the bus; in
Reading, six people get off the bus and nine people get on. In Swindon , two people get off and four get on. In Cardiff , 11 people get off and 16 people get on. In Swansea , three people get off and five people get
on in Carmathen, six people get off and three get on. You then arrive
at Milford Haven. What was the name of the bus driver?

Answer: Oh, for crying out loud! Don't you remember your own
name?
It was YOU!!

Now pass this along to all your friends and pray they do better
than you.

PS: 95% of people fail most of the questions.

Involve Others

2008-10-17T05:08:00.000-07:00

I really like the following post. When the chips are down, dont try to "go alone". Involve the staff, they have some good ideas! Many times, leaders think they have to make the decisions "top down", but the people on the front line might have more clarity to how an issue can be addressed.

How to Cut Budgets Without Destroying Morale
Posted by David Mammano

http://blog.inc.com/start-up/2008/10/how_to_cut_budgets_without_des.html?partner=rss

I am not sure if you noticed but budgets are being cut. My company, Next Step Magazine, gets most of its revenue from colleges, student loan companies and the military advertising. We've already seen the student loan companies disappear due to the liquidity crisis. As the recession deepens, we need to be prepared to feel the pain from other advertiser cuts as well.
So far, we're hanging in quite well. But just a few bad few months can reverse a small business's success. So what is a maverick small business guy to do? (Sorry, just wanted to say "maverick.") Cut the budget, of course. The last thing you want to do, however, is cut payroll and thereby derail the morale of your coworkers. The first thing to do? Engage everyone in the process.
That's what I did yesterday. We held a non-mandatory budget cut meeting. Since Next Step has an open book management philosophy, everyone knows every line item in the budget anyway. So about half the staff showed up to offer their thoughts on what we can cut.
They shared some great ideas and seemed to feel excited to be part of the process. They thought of things that I hadn't. Their ideas ranged from postponing new computer purchases to having the staff volunteer to bake birthday cakes instead of the company buying them.
My role was to shut up and listen. Of course, that was not entirely possible, but I think I did quite well!
Bottom line, I expect their suggestions to save us around $50,000 a year, which will be a real help. And it also helped that the staff was involved. Nobody likes heavy-handed, top-down decisions that don't allow for any feedback. Granted, you won't be able to implement every suggestion you get from your staff. But the environment you'll create by sincerely listening can make the hard times ahead feel that much less painful.

CEOs on the Global Economy

2008-10-16T05:38:00.000-07:00

How bad is this economy going to get? Well, this Fortune article below, does not have a positive outlook. Cash is king now. We will get through this, i.e., weather this storm, but you need to make sure you have the staying power and focus on adding value for the price of your products.

Global CEOs brace for the worst
At a Fortune conference in London, top brass see a downturn that could last for years.
By Stephanie Mehta
www.fortune.com

http://money.cnn.com/2008/10/08/news/economy/globalbummer_mehta.fortune/index.htm?postversion=2008100916

LONDON (Fortune) -- Forget bolstering consumer and investor confidence. Governments and central banks may need to figure out a way to boost CEO confidence, too.

At a Fortune gathering here this week, chief executive officers of large global companies and some of their top advisers expressed grave concerns about the state of the world economy, and are preparing for at least a couple hard years ahead.

"For the last 3 ½ to 4 months I've been asking people to operate as if we were going into a recession," said Ian Livingston, CEO of BT (BT), the telecom company that ranks 116 on the Fortune Global 500 listing of the world's largest corporations. "I wasn't anticipating things would be as bad as they are."

Livingston, whose company provides phone, video and broadband services, says the company certainly will feel an impact from a sustained economic downturn: If people don't have jobs, they will spend less on communications services.

Same with smaller companies: no credit means businesses don't expand, which translates into fewer data and phone services for BT to sell. Livingston is even guarded when he talks about BT's bright spot, sales to corporate customers.

Though BT last quarter said orders from big customers remain strong, "if big companies get hit hard they will pull back," he acknowledged.

Sector by sector tsunami
Livingston's cautious view is echoed by dozens of CEOs interviewed by Steve Tappin, a managing partner in executive search firm Heidrick & Struggles' global CEO practice and author of The Secrets of CEOs.

Tappin says the chief executives he spoke with after the credit crisis materialized (but before the banking system really started to break down) were preparing for battle.

"There's a tsunami that's gone through sector by sector," Tappin said. "Many CEOs think this is going to be a multiyear downturn."

Some are expecting two to three years of hard times while others tell him "this is something we're not going to see again in our careers."

Even executives from still-growing emerging markets are uncharacteristically muted in their remarks on the global scene.

Girish Paranjpe, co-CEO of outsourcing giant Wipro (WIT), says growth in countries like India, China and Brazil can't for slowdowns in mature markets.

The emerging economies "will mitigate" the pain, he said. "I don't think they will offset it." For Paranjpe, who used to run the Wipro division that serves financial-services customers, the breakdown of the banking sector has hit particularly close to home. "I know many of the executives personally," he said, "and some of them are now unemployed."

Dream

2008-10-15T05:19:00.000-07:00

If you have a dream or something that you always thought about doing, the best time to begin the journey is today . . . not tomorrow, or next week or next month or next year. Today is the first day of the rest of your life. So, what are you waiting for?

Sometimes as leaders, you make a decision based upon limited information that sets a path forward. However, the path is not the right one as more information is gathered. You can continue to take the path (make the best of it) or make a decision to reverse your decision, backup and do over. Yes, it might not be pleasant, but it might be the best path to move forward. I would caution that you don't have too many chances for do over's.

Fortune Cookie

2008-10-14T06:17:00.000-07:00

I had a nice chinese dinner with my daughter when I was in Boston last week. At the end of dinner, as is tradition, we both received a fortune cookie. Now, they are usually silly and fun. They ususally provide a good laugh. My "fortune" was "Look forward to great fortune and a new lease on life!". Hey, that was a good one. Right, like this is really going to happen (plus, one new lease on life in a year is enough). Anyway, I have a great fortune as it is, healthy family, good friends, etc.

While this was silly, I have to admit . . . it made me feel pretty good. I know that this is not a "true" fortune, but it provided an uplift (okay, you can call me silly as well).

As I walked back to hotel, I contemplated why something so silly gave me positive energy. Was it that I was troubled and somehow this provided a diversion? Well, I thought it was simple (and for which leaders need to provide all the time), a vision of the future possibilities is uplifting . . . we often get so stuck in the weeds and troubles of today that we (or maybe it is just me) don't lift our heads up to see why are we doing what we are doing and what is ahead of us. Leaders, do not forget to provide that vision of the future (i.e., the Fortune Cookie for your unit) for each individual and the unit as a whole! It will be a rallying call (and positive energy) for the unit and staff who are working hard each and every day.

To Give, Is to Receive

2008-10-13T04:20:00.000-07:00

I had an interesting experience this past weekend. No, it was not the #5 University of Texas Longhorns versus the #1 Oklahoma University Sooners football game in Dallas, Texas. Yes, we attended the game. Yes, Texas won 45 to 35. Yes, it was a great game with Texas now being rated #1 in the country (not sure for how long). No, it was the next day.

We decided to go to Six Flags over Texas, this is an amusement park, with lots of rids and roller coasters. As we were buying tickets, we had lots of options to optimize the cost with the number of people and since it is towards the end of the season, there were some additional options. Anyway, we figured out (through solid mathematical assessment routines) that if we bought three late year season passes, that we would get a free additional day pass for each season pass. We had a total of five people in our party. If you do the math, we had a free day pass that would not go used. So, what would you do? Save for another day, just keep it, give it away . . .

I decided to give it to the family behind us in line. You would have thought they won the lottery, they were so thankful. I try to explain to them that we got that one pass . . . free and it was no big deal. However, the mother of the family was just so thankful (I think we may be part of their extended family now).

It just shows you that what you may feel is of no value (or free) could be of substantial value to someone else. As this relates to this blog, there are little things that leaders can do (that might be "cheap" or "free", like a compliment when someone does a good job) but is seen as a tremendous value to a staff member. I am not saying that I am a super charitable person as I probably don't give enough as I should, but the feeling I got after we went on our way in the amusement part was a super feeling (and made my day). So, I got more, then I actually gave, which I think is a good thing and reminded me that to give, is to receive!

Joke of the Weekend XXV

2008-10-11T03:31:00.000-07:00

Smith goes to see his supervisor in the front office.

"Boss," he says, "we're doing some heavy house-cleaning at home tomorrow, and my wife needs me to help with the attic and the garage, moving and hauling stuff."

"We're short-handed, Smith," the boss replies. "I can't give you the day off."

"Thanks, boss," says Smith, "I knew I could count on you.

Making Tough Decisions

2008-10-10T04:52:00.000-07:00

All of us are faced with tough decision periodically. Well, I am faced with you (although this is actually easier because either decision that I make, will be a good decision, how often is that the case).

I found this article, which is a simple way to make decisions. It hit home to me, because many decisions are about you.

How to Make Smart Decisions in Less Than 60 Seconds
by Steve Pavlina
www.stevepavlina.com

http://www.stevepavlina.com/blog/2007/07/how-to-make-smart-decisions-in-less-than-60-seconds/

Sometimes we face tough decisions that involve one or more unknowns. We can’t know in advance what the consequences of each alternative will be. This is especially true of big decisions like quitting a job, entering or exiting a relationship, or moving to a new city.

When faced with such a decision, what do you do? If you can’t figure out the consequences, can you do any better than guessing?

Usually what people do in such situations is freeze. Even when you don’t like what you have, you may worry that the alternatives are worse. In a way every decision involves a choice between maintaining the status quo vs. making a change. When we can’t be certain a change will work out for the better, by default we stay put.

Let me give you a very simple method of making these kinds of decisions. In most cases it takes no more than 60 seconds to evaluate any particular path.

For each alternative you’re considering, ask yourself, “Is this really me?”

What you’re asking is whether each path is a fair expression of who you truly are. To what degree does each option reflect the real you?

Decisions are acts of self-expression

When we look at choices as being more than just paths — as being creative statements of self-expression — certain decisions become much easier to make. You may say to yourself, “This path isn’t going to be easy, but I know this is the right way to go because it’s who I am.” Or you may conclude, “No matter how I try to represent this to myself, I know that deep down this isn’t who I am. This just isn’t me.”

It’s very important to separate this evaluation step from the act of summoning the courage to act on this knowledge. It’s OK to acknowledge you’re in a place you don’t want to be, even when you lack the ability to do anything about it right now. The courage to act comes later.

Here are some ways you can apply this method:

Is this job really me?
Is this company really me?
Is being an employee (or enterpreneur or investor or business owner) really me?
Is this relationship really me?
Is this city really me?
Is this house really me?
Is this book I’m reading really me?
Is this shirt/dress/tie really me?
Is this friend really me?
Is this hobby really me?
Is this car really me?
Is this food really me?
Is this habit really me?
Is this spiritual or religious belief really me?
Is this level of fitness really me?
Notice that you can apply “Is this really me?” to decisions both big and small. This is something you can use every day, even when you’re just deciding what groceries to buy.

Say a few syllables

If you have trouble deciding if a decision is really you, just describe its attributes out loud. In the words of the Three Stooges, “Say a few syllables.”

For example, when you’re thinking about changing careers, describe the new career you’re considering. Is it safe or risky? Bland or exciting? Social or solitary?

Now consider whether those same adjectives could describe you as a person? Are you safe or risky? Bland or exciting? Social or solitary? Is this career really you?

Sometimes this can get a bit silly, but I’m certain you’ll gain some interesting insights if you just humor me and do it.

If you’re feeling bold, do the same for your your closest relationships. It will teach you a great deal about which people are the best fits for you. If your current relationship feels a bit off, this process will show you why. You’ll be able to see where your true self and your current reality are misaligned.

A personal example - shopping for a desk

Three weeks ago Erin and I moved to a new house, and I wanted to get a new desk for my office. (My old desk was 14 years old and so worn down that charities didn’t even want it. I opted to use it for martial arts practice until it was a pile of sawdust.) This time I wanted a high-quality desk that would last me a long time instead of the particle board special I bought for $99 after college.

I made a detailed list of criteria for what I wanted, took measurements of the available space, and gave myself an unlimited budget. I browsed through many local furniture stores and searched through office furniture web sites, but nothing really grabbed me. I started thinking maybe I should have a custom desk built, but that seemed like overkill. I started to get a bit frustrated, and my new home office remained deskless for several days. I thought to myself, “This should be an easy problem to solve, especially with no fixed budget. I must be making this harder than necessary somehow.”

Eventually I stepped back and asked myself if there was a better way to find the right desk. I didn’t want to settle for something I didn’t like, but I realized that instead of trying to find something that met my far-too-anal list of criteria, what I really wanted was a desk that would suit me, something that would reflect the kind of person I am.

So I decided to make the decision by looking at each candidate desk and asking myself, ”Is this really me?” I went back to the same local stores, and it was an amazingly different experience. Instead of looking for what I wanted, I looked for who I was. I looked around for something that was me in the form of a desk.

Yeah, I know that sounds weird. In fact, I actually wanted to find a desk that was a bit weird. If it wasn’t a little weird, it wouldn’t be me. When I saw a desk that I thought anyone would appreciate, I knew it wasn’t for me.

Normally I hate shopping, but I actually enjoyed the experience this time. I’d probably enjoy shopping a lot more if I always did it this way. I’d look at a very ornate and classy desk, and I’d say, ”That’s not it. I’m not an ornate and frilly person.” I’d see a heavy, solid desk that only Superman could lift and say, “That one is too heavy. I’m lighter than that.” I’d see the cheap particle board furniture and think, “Nope. I’m more durable and tougher than that.”

That sounds a little like the story of Goldilocks and the Three Bears, doesn’t it?

Eventually I sat down at an unusual desk that caught my eye. It was an elegant mix of glass, metal, and wood. It felt almost familiar when I sat down, but in an alien sort of way. I wasn’t quite sure what to make of it. It definitely wasn’t love at first sight, but there was a compelling infatuation. I became very curious about it.

This was a desk I’d previously bypassed because at a glance I could tell it didn’t fit my initial criteria. This time when I asked, “Is this me?” the answer didn’t come back as an immediate yes. I had to think about it. I described the desk to myself. I said, “This desk is clean, efficient, organized, transparent, flowing, intelligent, creative, and well-constructed. Some people would love this desk, but others would find it rubs them the wrong way. I’m not sure if I like it, but it certainly grabs my attention. I could never be bored in a room with this thing.”

I soon realized this was the right desk for me because I was describing myself. Having used it for a couple weeks now, I’ve grown to really love it. It’s just so me.

So here was a decision that was important to me – I’ll use my desk a lot, so it’s worthwhile to get a good one — but I was making the decision way too complicated. Asking, “Is this me?” cut through the complexity and allowed me to figure out my true criteria. Every desk I considered helped me converge on the final solution.

Again, I fully realize this must sound plenty weird to someone who’s never tried it. So don’t be someone who’s never tried it.

Positive reinforcement

When making decisions via the “Is this me?” method, you’re using an idealized version of yourself for the comparison. This is your best self. It’s who you are in your dreams and goals, who you want to be.

What happens when you begin to fill your life with people, places, and objects that reasonably reflect your true self? By osmosis you’ll begin to take on more of those qualities yourself. Just sitting behind my new desk makes me feel more organized, efficient, and creative. It’s a constant reminder of the kind of person I strive to be. Even when reality falls a bit short, I keep coming back to this daily positive reinforcement. I don’t even have to think about it. For further thoughts on this line of thinking, see the article Environmental Reinforcement of Your Goals.

I’ve been using this “Is this me?” method a lot lately. I recently taught it to Erin, and she’s been telling me how much she likes it too. When we go furniture shopping, we’ll look at a piece and say, “Is this really us?” So far we always seem to be in agreement. It’s a great way to make sure we’re on the same page.

Look around you. What can you say is really you? What isn’t? What can you do about it?

10,000

2008-10-09T04:56:00.000-07:00

The blog reached 10,000 views yesterday (while the Dow stands below 10,000). I want to thank you, the readers. While many topics are not great or creative, I do hope that you take something away from the postings or you think about something slightly different than you have in the past. I have found writing this blog is cathartic. I try to share ideas, past and current experiences, and thoughts on what I think a leader should be (and yes, something I would like to continue to strive to be as I am not perfect).

Lots still going on in my business life. I am surprised that I have posted every week day (and weekend) since first of April. Again, thanks for reading.

Start a new business Now in this environment?

2008-10-08T04:17:00.000-07:00

I have said this several times. There will be ups and downs in the economy, that is capitalism, ensuring that resources are being used in the most effective and efficient way. You do not need to be a Rocket Scientist (or Economist) to know that the global economy is struggling and there are issues that need to be addressed.

With any change, there is opportunity. Companies have problems that need solutions, granted, they are different problems (and solutions) when the economy is struggling versus when it is growing rapidly. All companies are problem solvers, there is a problem/issue in the marketplace(i.e, demand), and companies provide the solutions (whether its how do you get from Boston to New York, i.e., multiple solutions, drive a car, fly, take a train, etc.).

In this environment, look for the new problems to be solved, not what you have to sell (demand driven versus supply driven). When I saw this article below, it made sense. If you have a unique solution to a current problem, wouldn't it be a good time to start a business? Yes, it is a simple article but I think you get the point. (oh, I have known many people all over the world who are entrepreneurs and that is just not an American thing.)

Starting a Business in a Downturn
It might go against your instincts, but starting a business in a soft economy has advantages.
by Karen E. Klein
Business Week.com

http://www.businessweek.com/smallbiz/content/oct2008/sb2008106_319606.htm?campaign_id=rss_smlbz

To many people, the idea of starting a new business right now sounds about as attractive as going all in on the stock market. But Peter Justen, a serial entrepreneur and founder of MyBizHomepage, which provides online financial tools to small companies, says it just might make sense. He spoke recently to Smart Answers columnist Karen E. Klein about the advantages of lessened competition, great deals on real estate (BusinessWeek.com, 8/22/08) and office furniture, and a ready labor supply. Edited excerpts of their conversation follow.

Conventional wisdom these days advises entrepreneurs—all of us, really—to hunker down and wait out the financial storm. Why isn't that good advice?

It's always a matter of perspective, and there's always a way to prosper during a downturn. Years ago, I went to my first boss and complained that the market was bad and I couldn't sell anything. He told me: "Successful people joke and laugh it off, and unsuccessful people complain about how bad the market is." I've never forgotten that.

Isn't this a terrible time to try to get funding for a startup?

Risky startups have never gotten funding, so what's changed? There are 27 million businesses in the U.S. and the vast majority of them are not credit dependent. Their credit line is a Visa card, savings, and friends and family. Good credit will get good loans and that's how it should be. Those who don't have good credit need to be more creative.

What are some of advantages of starting up in a downturn?

The real estate market is slowing in most regions of the country, which allows for small businesses to get retail, office, and warehouse space at reduced costs. It's also easier to negotiate for landlord build-outs, signage, and parking.

When it comes to setting up a business, you can find great deals on nearly new furniture, copiers, fax machines, computers, and office fixtures at auctions where companies who ramped up too fast are selling for a fraction of what they paid. We're growing and we just got new office space. We bought furniture at auction for about 10¢ on the dollar.

Unemployment rates continue to rise. Is this a good time to attract employees?

I think there's a flight to safety, and there's a certain comfort level with small companies. There isn't the job security in the big companies that there once was. In tough times, businesses lay off good employees who are willing to accept pay cuts for employment with a company that offers other benefits, like a shorter commute, an improved lifestyle, or more interesting work. There used to be a stigma about going to a small company, then it [had] cachet during the technology boom, and then it became a stigma again, and now I think it's more attractive.

Isn't it tough to go it alone and be a business starting up when no one else is trying it?

We're Americans. Entrepreneurship is in our DNA. You're right that when the economy tightens, fewer people are likely to start businesses. But what that means is that you can do a competitive regional analysis and know that your niche is protected, for a while at least. Grand openings, ribbon cuttings, and groundbreakings are likely to get a lot more media and general attention in your community.

What about marketing?

There's going to be some softening in ad rates, and again, you can take advantage of that. There's also less advertising competition, so you'll get greater visibility. And, in a down economy, writers, designers, and ad agencies are looking for work and may offer reduced rates.

The other thing we recommend is partnership marketing, where you co-market your products through someone else's database. We have a local pizza parlor owner who goes to the high school and hands out coupons to all the kids. For every coupon that's cashed in, he makes a donation to the school band. So he gets tons of kids coming in from the band, and their parents, and their friends.

So, are you in charge?

2008-10-07T05:07:00.000-07:00

There are different types of leaders, but more importantly there are different types of leadership positions. When you are weighing a new leadership role or assessing your current one, there are four attributes that scale the leadership role. How you been in a role where you had all the accountability but no responsibility to get something done . . . not good and most likely you probably were not successful (although it can be done, but makes it difficult on you). When you examine your role or another's person role (or even your supervisor's role), think about how important or level of these attributes as it will help you think about what is ultimately important to you personally as a leader.

These attributes of the leadership position are Responsibility, Accountability, Position of Authority and Personal Power. Let's quickly talk about each one.

Responsibility is the obligation to do assigned tasks. The person is responsible for being proficient at his or her job. The leader is responsible for what employees do or fail to do, as well as for the resources under their control.

Accountability is answering for the result of one's actions or omissions. It is the reckoning, whereby one answers for his or her actions and accepts the consequences, good or bad. Accountability establishes reasons, motives and importance for actions in the eyes of the leaders and employees alike. Accountability is the final act in the establishment of one's credibility. It is important to remember that accountability results in rewards for good performance, as well as the downside for poor performance.

Authority is the legitimate power of a leader to direct staff to take action within the scope of the leader's position. The owner of the organization has the authority to make decisions.

Power is the ability to exert influence in the organization beyond authority, which is derived from position. The supervisor's personal power could include job knowledge, personal influence, interpersonal skills, and ability to get results.

If you were to set a 10 point scale for each, how would you rate yourself on your needs in the leadership role. My career coach was helpful in me thinking this through and am not doing real justice to this discussion but hope it helps you think about your leadership role and your needs to achieve what you would like.

Is Risk within you?

2008-10-06T04:07:00.000-07:00

There have been several postings about risk taking on this blog. When you take risks, you can experience the highest of the highs, but also the lowest of the lows, that is what risk is. I found this article on risk. How large a Risk you are willing to take is within you, sometimes not taking the risk is could even be worse (this person from Russia in the article). However, most of us will not take a major risk but will step out of your comfort zone in a calculated way (and to me that is risk taking as well and actually a good thing, because you never want to look back and say "what if"). Risk-taking forces you to look to the future and not behind.

The Greatest Risks They Ever Took
Brett Nelson
Forbes.com

http://www.forbes.com/entrepreneurs/2008/10/01/jpmorgan-gucci-letterman-ent-manage-cx_bn_1001riskgreatest.html?feed=rss_entrepreneurs

What is anything worth? Easy: The amount of fear, pain and suffering you are willing to risk to get it.

But of course we know the math is infinitely more complicated--especially for those suffused with fear, greed and hubris that inevitably fog the equation.

The crisis on Wall Street, now coursing like a virus throughout the broader economy, is testament to our collective innumeracy when it comes to estimating risk. Complicating matters: a vast web of impenetrable financial contracts putatively designed to "absorb" risk (and reap billions in transaction fees) by sprinkling it throughout the entire financial system. Thanks to such securitization, thousands of people moved into homes they couldn't afford. No cash? No worries--there's plastic. And the band played on.

So the question remains: What's worth the risk? In search of illumination, we asked a slew of strivers--entrepreneurs, politicians, athletes and show-business types--what they consider to have been the riskiest moves of their lives.

Their responses were as diverse as their careers, but all support the same conclusion: The best results come to those willing to take a chance--an important reminder for entrepreneurs, financiers and political leaders as the global economy braces for even rougher weather.

Several subjects spoke of moments when their careers hung in the balance--the sputtering start-up, a challenging job offer or the decision to walk away from what they knew to pursue far grander dreams.

Some sneered at death, or at least dismemberment. Take Kit DesLauriers, the first person to ski from all seven summits. Of her descent from the top of Mount Everest, she says: "There were no safety nets, no fixed lines established, freezing winds. We had to spend an unplanned night at 26,000 feet, with very little food and water. The next day, we skied the Lhotse Face, 5,000 feet of blue ice on a 50-degree slope ... At one point, we ran out of oxygen. I kept telling myself: 'Don't sit down and die. Just keep going.' It's really easy to let your mind get a hold of you, but the journey taught me we are much more than our minds."

In 1992, Puneet Nanda, chief executive of Dr. Fresh, maker of oral care products, then based in New Delhi, decided to brave the burgeoning Russian market. "Everybody there had to pay a Mafia fee," he recalls. "These ex-KGB guys controlled everything."

One day, he continues, a new Mafia boss came by and chopped off his office manager's hand; later, thugs roughed up Nanda in his own home. Nanda fled Russia, but not the fight. Dr. Fresh products now sell in 42 different countries--including, just as of August, Russia.

Richard Jackson, chief executive of Jackson Healthcare--which provides clinician staffing, anesthesia management and heath-care IT services for U.S. hospitals--has a story for risk-taking entrepreneurs hunting for suddenly cheap assets. Two years ago, Jackson decided to acquire World Health Alternatives, a publicly traded medical-staffing firm which was then twice the size of Jackson's company.

Jackson recalls: "It was a hairy deal: [World Health] was pulling in $300 million in annual revenue but losing $1 million per month and rapidly approaching bankruptcy; its financial documents were inaccurate, the CEO had quit after some suspicious ethical behavior and the FBI was getting involved. But I believed we had the industry expertise to turn the business around. We paid $43 million for the company in 2006; last year, it took in $18 million on $220 million in sales. It was a huge risk--and an even bigger success."

Michael Chasen, co-founder of Blackboard (nasdaq: BBBB - news - people ), an education technology company, went so far as to jeopardize his new marriage. Despite making nice coin at KPMG, Chasen and college buddy Matthew Pittinsky decided to start their own company making software to facilitate instruction at schools that were outfitting fully Internet-wired classrooms and dormitories.

"The biggest risk was telling my fiancé one month before our wedding that I was going to quit my high-paying job to gamble on a 'big idea' with my old college roommate," says Chasen. "Not exactly what she had signed up for." (Happy ending: They still tied the knot. "Risk averted," he adds.)

Still others we spoke with considered smaller, even mundane challenges to carry enormous risk. Case in point: Brian Binnie, whom Forbes.com interviewed for the first iteration of this article in 2007. Binnie piloted the craft that rocketed 69 miles above the earth in pursuit of the $10 million Ansari X Prize, funded by the likes of First USA Bank, a unit of JPMorgan Chase (nyse: JPM - news - people ), and author Tom Clancy.

Ironically, the sky-scraping aviator's greatest risk was among the most down-to-earth: speaking in front of a public audience. "The choice between a poke in the eye or the opportunity for public speaking sends me into serious deliberation," admitted Binnie. (Still, an invitation to appear on The Late Show with David Letterman proved too tasty to pass up.)

Who better to assess risk then a guy who gets paid big bucks to do just that? When asked last year about his greatest risk, gold-plated venture capitalist Tim Draper, co-founder of Draper Fisher Jurvetson, recalled not one of his sizable bets on a promising (but by no means proven) young company; rather, he mentioned the time he mustered the courage to board an unknown, unsaddled horse.

"I don't remember all the risks I have taken, since if they worked out, they were no big deal," said Draper.

That's one way of looking at it.

Joke of the Weekend XXIV

2008-10-04T04:14:00.000-07:00

A crow was sitting on a tree, doing nothing all day. A small rabbit saw the crow, and asked him, "Can I also sit like you and do nothing all day long?"

The crow answered: "Sure why not." So, the rabbit sat on the ground below the crow, and rested.

All of a sudden, a fox appeared, jumped on the rabbit and ate it.

Management Lesson:
To be sitting and doing nothing, you must be sitting very, very high up.

How long will your market be around?

2008-10-03T05:48:00.000-07:00

I just like this article. It contains how a business can survive through excellent service while others vanish in a technology disruptive environment.

The Last Typewriter Repairman?
Gramercy Typewriter has survived by diversifying into laser printer repairs, but its reputation for customer service has been its saving grace
by Stacy Perman
Businessweek.com

http://www.businessweek.com/smallbiz/content/sep2008/sb20080925_900705.htm?campaign_id=rss_smlbz

Every business day, as he has done for the past 49 years, Paul Schweitzer, 69, travels the streets and skyscrapers of Manhattan making "house" calls, carrying his black leather tool bag by his side. Schweitzer, who insists on wearing a suit and tie while on his rounds, is one of the last of his kind: the typewriter repairman.

In 1932, Schweitzer's father opened Gramercy Typewriter in Manhattan, selling and repairing typewriters. "At one time, there were millions of typewriters in the city," says Schweitzer, who began working for the family business in 1959 and took it over when his father retired in 1975. "You would go in an office and there were a hundred desks and each one had a typewriter," he says.

Over the years, Gramercy earned a reputation for quick repairs and excellent customer service. The elder Schweitzer gave out wooden rulers that bore the company's name and logo as advertising. The shop's client base spanned from the tip of Wall Street up to the top of Harlem.

Surviving the IBM Selectric
The Schweitzers were quick to adapt to changes. The first big one came in 1961, when IBM (IBM) introduced the Selectric typewriter. The Selectric used a typeball that could be changed to display different fonts. The ball replaced the traditional pivoting type bars and the need for a moving carriage with a paper roller. Gramercy, like every other repair shop, had to learn how to fix and overhaul the new machines. Aside from new iterations of the Selectric, for the next 30 years, the typewriter business remained relatively steady.

Then came the introduction of the personal computer in the 1980s. Gradually, businesses began replacing their typewriters with desktop computers. By the early 1990s, the shift practically had made the typewriter obsolete. A number of Gramercy's competitors went out of business. "When I started, the Yellow Pages had six pages of typewriter repairmen, today there is maybe half a page," says Schweitzer. "If an office had 200 typewriters, now they had 40," he says. Although the number of machines continued to dwindle, "They still needed repairs." Gramercy gained business as other repairmen shuttered their shops.

While Schweitzer carried on, he noticed that most of the offices that he serviced were purchasing Hewlett-Packard (HPQ) laser printers along with their computers. Recognizing that those printers would break down and need repairs, Schweitzer took Hewlett-Packard-sponsored training courses to learn how to fix the machines and added that to the firm's service menu. Before long, he included fax machine repairs as well. As Schweitzer made his rounds, he informed customers that he was also available to repair these office staples. Schweitzer, who to this day has never owned a computer or used e-mail, says diversifying has allowed his company to retain a good number of its clients, with about 75% of the business now involving printer repairs.

New Interest in Typewriters
Despite these dramatic shifts, Schweitzer insists there is a surge of interest among young people who have found their parents and grandparents' old typewriters in basements and attics and have taken to the machines. At the same time, he says a market has developed around buying and selling typewriters online. Schweitzer also says that many of the offices he services still use the old machines for certain kinds of documents and customers still stop in his shop throughout the week. On a recent afternoon, an older gentlemen trudged up to the fourth floor of Gramercy to explain that his IBM Selectric was broken and inquired whether it could be fixed. Another recent customer was an artist who created an entire art exhibition using a manual Royal typewriter from the 1930s and in doing so ended up busting the star key.

These days Schweitzer spends most of his mornings doing house calls. By noon he returns to his shop and eats lunch, and if there are no more office stops to make, he dons a blue apron and works on typewriters in the back-room workshop, then knocks off around 4:30. There, the walls are lined with old IBM Selectrics and boxes stacked with parts and ribbons. Scattered about are a handful of old Underwood, Corona, and Royal manual typewriters from the 1920s and '30s. The work he does on typewriters now consists mostly of chemical washings and replacing parts like keys, feet, and ribbons from hard-to-find manufacturers.

Schweitzer says he continues to run his business because he enjoys it. He says walking up and down subway stairs carrying his 30-plus-pound tool bag has kept him fit throughout the years. Not ready to retire, Schweitzer still takes enormous pride in being able to bring old machines back to life. Recently, he overhauled a broken 1920s-era Underwood that a customer wanted restored to working order as a birthday present for her husband.

"Hanging In There"
Although he hopes to pass the business on to his son, Justin, Schweitzer has been around long enough to know another shift or two is ahead. "I'm thinking, what is the next thing after printers?" he says. "Maybe they will be voice-activated? Or maybe people will get so disgusted with the breakdowns and failures they'll go back to IBM typewriters. I'm waiting to see what happens next. We're hanging in there."

Ideas are "cheap"

2008-10-02T05:32:00.000-07:00

Everyone has ideas. You have been there. In a "brainstorming" meeting, ideas are following all seem great and will make the unit bigger, better and "more money". After the meeting, everyone goes back to their day job . . . until the next brainstorming meeting when similar ideas are discussed.

Have you ever had that feeling that if one more person brings you another great idea, you will go crazy. It is hard enough to get the stuff done on your current to-do list.

The point is ideas are "cheap" but implementation is hard. You must undergo real changes to the manager/workforce to make it happen!

In a book called "Management of the Absurb" by Richard Farson, it discusses how we stifle creativity and the change that needs to happen in the follow ways:
1. We play intellectual games
"define that term", "on what authority do you make that claim?"
2. We judge and evaluate
"it was better the last time" (he also mentions thta both managers and employees dread evaluations that performance reviews have come to have nothing to do with actual performance . . . I am not so sure about that, but could see if for some)
3. We deal in absolutes
"we've always done it that way" or "we dont make exceptions around here"
4. We think in stereotypical ways
"men are rational, women are intuitive". All of these stereotypes condition our reactions and make it difficult for us to see the possibilities for change.
5. We don't trust our own experience, and we train our employees not to trust theirs. We tell them, "you're not ready to take on that responsibility," and gradually they do come to disregard their own experience and defer to the judgement of others.

If you do the same thing in the same way, you will get the same results. If you have a "great" idea, you, management, and the organization must adapt and change to make it a reality, otherwise, nothing will be different.

Interestingly, the people who do implement change or are willing to change are the ones that sometimes end up being on the outside looking in

Selling in Tough Times

2008-10-01T07:17:00.000-07:00

I found this article and thought it was relevant to some recent postings on leading in tough times. While I do not believe salespeople should be the first to get whacked (unless they are not performing well), there are some interesting insights here. I do believe that the Software as a Service (SaaS) is an excellent opportunity for companies producing them and those clients that want lower cost of ownership for software applications.

How To Sell In Tough Times
Glenn D. Porter
Forbes.com

http://www.forbes.com/entrepreneurs/2008/09/30/sales-energy-software-ent-sales-cx_gp_0930glennportertoughtimes.html?feed=rss_entrepreneurs

Salespeople are often the first to get whacked when the economy goes south.

But here's some good news for busted Wall Streeters--and any other commission chasers laid low by the latest economic crisis: Salesmanship is a transferable skill.

If you can sell stocks, bonds and financial derivatives, you can sell real estate, technology, autos and tooth brushes. That's because the fundamental tools are the same.

Salespeople know how to frame a discussion. They know how to ask the right questions and, with a little discipline, shut up and listen to the answers. They can relate to people. And they have the courage to ask for business and try new things.

So what happens if--and when--you lose your job? First, you go have a martini and a big steak dinner. Then you look for a growing market to attack.

So where's the growth? In tough times, any product or service that promises to boost productivity (or to save money, however you want to look at it) is worth a look.

Some promising areas: alternative and sustainable energy sources, such as wind power. (Old company raider Boone Pickens imagines massive fields of wind mills in the western U.S.) Such an infrastructure requires engineering, construction, software, spare parts and maintenance providers--they all need salespeople.

The same goes for battery and bio-duel technologies. We don’t know who will win the alternative-energy game, but we do know there will be plenty of competition for years to come.

Another hot area: software as a service. SaaS providers charge monthly subscription fees, rather than more expensive upfront licenses--a cash-flow booster for small businesses in tough times. Some of the fees are so low you can use a credit card to cover them.

Not that you should forget the old standbys: companies that sell to public utilities, educational institutions, health care and infrastructure providers. We're not talking "credit default swaps" or other sexy doohickeys like that, but you want to put a decent dinner on the table, right?

For those still on the payroll, get in touch with your loyal (and solvent) customers. Immediately. Anticipate how the troubled economy might affect them, because it will.

Preempt trouble and engender even deeper loyalty by crafting some new pricing schemes. Take another look at long-term contracts. Assuming they haven't fallen on especially hard times, find creative ways to allow valued customers to keep buying. Worse case scenario, accept products or services in lieu of payment.

A final thought in this environment: Watch receivables like a hawk. Your commissions depend on it. You don't have to whip out the bludgeon, but a sales pro should be able to politely squeeze a customer's payables department.

I'm not going to kid you: Things aren't looking good out there. But it doesn't matter. Because no matter what, salesmen do one thing: They sell.

So stop reading and pick up the phone.

Bailout or no Bailout

2008-09-30T07:38:00.000-07:00

I try to stay out of politics on the blog as I try to discuss leadership issues. On this bailout, aka rescue plan, I have to draw a fine line.

The big talk over the last week has been about the recent bailout situation, which I find interesting. It is a little confusing as the Republican and Democratic parties seem to be split among themselves, some saying if we dont have a bailout, the end is near. While others say, no bailout is needed.

There will always be ups and downs in the economy. Those that are older, have seen several slowdowns and recessions (1981-1982 comes to mind); those younger, it might be your first one. When we are on an up, there will be a down. When we are in a down cycle, there will be an up down the line. This is what is called capitalism (i.e., Adam Smith's invisible hand). Some government intervention can minimize the downs if done correctly (although we did see during the Great Depression, government intervention caused the down to more of a downer). Is this bailout plan a good government intervention or too much intervention that will delay the inevitable? In a business that needs credit to acquire companies, I definitely see a reduction of available credit. It my view, something needs to be done, but not sure about this existing rescue plan, as I do think there are some other alternatives.

This brings me to the issue of leadership in this situation. If you have a solid service or product, you will be fine in ups and the downs. If you do not have a solid business, focus on building up your base in this situation. Remember: There are opportunities in both cycles. If you have more strategic control (a differentiator that keeps the clients to your services/products), you will be terrific shape. Be smart. Don't be too risky. Look for opportunities that leverage your strengths

Success has many "owners"

2008-09-29T06:28:00.000-07:00

Why is it? When there is a celebration of the success of a venture or project, you have to look for a very large room to acknowledge those who contributed greatly (or to some slight degree as well as those who think or claim they did). Every one wants a piece the glory no matter how small. I know I interviewed several people from a competitor who had a successful product. It seems that each person I spoke to was the chief contributor of this successful product (how can that be?). We all want to be part of a winning team and as years go by, we tend to exaggerate our management contributions.

However, when there is failure, one needs only a very small room to invite those to commemorate the defeat or to evaluate the lessons learned because many will shun the invitation or claim that they had little or no part in the decision or action. The main reasons for failure suggested by those involved:
- poor or unclear planning
- lack of sufficient authority or staffing
- lack of thorough, accurate, and timely information
- failure to decide or act decisively

While we can learn from successes, it is more important to learn from our failures (I know I sure have) because we probably analyze them much more and learn some valuable lessons.

Bottom line: A successful project involves many people (one that seems destined to fail has people jumping ship, so if you see people conveniently leaving the project, watch out). You can take your chances and try to the hero who singlehandedly tackled the issues rather than sharing the responsibility and glory. However, the odds are rather good you may be standing in that small room by yourself!

Joke of the Weekend XXIII

2008-09-27T06:02:00.000-07:00

Managers and Engineers

A man flying in a hot air balloon realizes he is lost. He reduces his
altitude and spots a man in a field down below. He lowers the balloon
further and shouts, "Excuse me, can you tell me where I am?"

The man below says, "Yes, you're in a hot air balloon, about 30 feet above
this field."

"You must be an engineer," says the balloonist.

"I am. How did you know?"

"Everything you told me is technically correct, but it's of no use to anyone."

The man below says, "You must be in management."

"I am. But how did you know?"

"You don't know where you are, or where you're going, but you expect me to be able to help. You're in the same position you were before we met, but now
it's my fault."

The Invisible Obvious

2008-09-26T06:51:00.000-07:00

If you think about the most important discoveries or the best management decisions, they usually came from taking a fresh look at what people take for granted or can not see because it is too obvious. It has probably happened to you as well. When WHAM!, the solution is so obvious that is almost embarrassing why it took you too long to figure it out. The phrase "too close to the problem to resolve it" comes to mind.

You probably have heard the story of the oversized truck that had become wedged under a low bridge. Engineers were brought in to see how they could remove the truck, but had no luck. A small boy in a car stuck in traffic gave advice to authorities by the "obvious" suggestion that they could lower the truck by letting some air out of the tires.

As a leader, a fresh look at the obvious (and being open to non-traditional ways of thinking) is one of the most valuable things that you can do. This is why it is important to periodically bring "new blood" into your organization because they could provide that fresh view into the invisible obvious.

Leader versus Leadership

2008-09-25T06:22:00.000-07:00

When we think of the leader, we imagine a commanding figure . . . whether a room-dominating figure, always sitting at the head of a conference table, or behind a large clean desk . . . bottom line: a leader who takes charge, aggressive, no-nonsense, etc.

Such images of leaders get us into trouble because it is not reality and it sets up a leader who will not be successful. The REAL strength of a leader is the ability to gain the strength of the group (not of the single individual). Relying on one person (e.g., the CEO) to provide all the leadership builds expectations that can never be met. Correspondingly, the group is denied its powers, thereby, leading to overdependence on the manager. When dependence is created, the leader's response is to micromanage, getting into areas of control and responsibilities that represent a poor use of time and may far exceed his/her capabilities. The result is the ultimate reduction of the productivity of the group.

A good "leader" provides a collective vision and acts as a servant to the people in the group to make sure the objectives are met (resources, addressing hurdles, providing guidance, being supportive). Whereas most of us have an image of the strong leader, the most successful leaders are actually servants to the group.

In Chaos Lies Opportunity

2008-09-24T07:35:00.000-07:00

Many leaders have a quick knee-jerk reaction to a downtown economy. It's time for a reduction-in-force, or cut back all expenses, etc. Well, there may be good reasons for this, but if you are a business leader and your business has strong fundamentals, it might be a time for looking for some solid opportunities. Don't retrench, instead think about how you can grow in the downtimes.

Here is a good article written by two senior directors from Bain on just this topic.

http://online.wsj.com/article/SB122212072533364749.html

In Chaos Lies Opportunity
By DARRELL RIGBY and STEVE ELLIS

Lehman Brothers' headlong pitch into bankruptcy protection, Merrill Lynch's dramatic sale to Bank of America and the U.S. government's rescue of AIG have battered financial markets. But in the turbulence lies opportunity.

Like dangerous curves on a racetrack, economic downturns create more opportunities for companies to move from the middle of the pack into leadership positions than any other time in business.

Unlike straight-aways where leaders can thrive on raw power alone, steep curves require strategic finesse. That often results in dramatic differences in performance as leaders steer out of the curve.

With a clean balance sheet, a clear cost advantage and adroitly hedged fuel costs, the discount carrier grew at the expense of rivals. As others eliminated capacity and jobs, Southwest lowered fares to gain market share. It boosted advertising to trumpet its price advantage and built solid relations with labor by avoiding layoffs.

Southwest is not unique. About 24 percent more firms moved from the back of the pack to the front in the 2001 downturn compared with the subsequent period of economic calm, according to an eight-year study by Bain & Company that analyzed the net profit margins and sales growth of more than 2,500 companies. Meanwhile, about one-fifth of all leadership companies—those in the top quartile of financial performance in their industry—fell to the bottom quartile. By comparison only three-quarters as many companies made such dramatic gains or losses after the recession.

Recessions hit some industries harder than others, so staying alert matters. The variations get amplified in a globalizing, interdependent economy. That adds both opportunity and complexity. The opportunity is to shift focus to economically healthier regions, as Johnson & Johnson, GE and IBM did in the second quarter of 2008, reporting solid performance outside the U.S. The complexity arises from having to make long-term investments in global operations with less certainty than ever about where you will be exposed when the next downturn hits.

Many industry leaders fall from the top during recessions because they assume that a strong market position is an insurance policy against trouble. That approach breeds overconfidence. Executives postpone taking precautions or reach for the same levers they pulled in the past -- like hedging their bets by diversifying. When the downturn hits hard they usually over-react. They slash costs and staff indiscriminately, cut capital expenditures, squeeze suppliers, and avoid strategic acquisitions. Then when conditions improve, they must spend heavily to regain momentum.

The better approach: slow in, fast out—like a good driver heading into a sharp curve. Winners in recessions tend to brake quickly heading into a downturn by managing costs carefully and consistently. It's like downshifting to a lower gear to slow momentum and increase responsiveness. They focus on what the company does best, reinforcing the core business and spending to gain share. They aggressively monitor the competition to ensure they have the best possible line through the curve. That sets them up to accelerate at the apex of the curve, when the economy starts to improve. The farther you can see and the quicker you can turn, the faster you can safely corner.

In the 2001 recession, Intel Corp. timed its acceleration effectively to pull away from Advanced Micro Devices Inc., its scrappy rival in the chip business. Heading into the recession, AMD's heavy investment in product design was paying off, with AMD's revenues growing three times faster than Intel's.

Then the recession hit, catching the entire industry with too much capacity. As AMD's lack of profitability prevented it from investing in new production facilities, Intel seized the advantage. It invested in new facilities with state-of-the-art production capability and spent heavily to advertise its P4 processors. In the ensuing years, Intel's relative cost position improved dramatically and AMD had to slash 15 percent of its workforce. The momentum AMD had built quickly evaporated and a re-energized Intel remained the industry leader.

Another characteristic of companies adept in a downturn: they make bargain acquisitions to build up their core, even when it means taking calculated financial risks. As markets improve, they are well-positioned to accelerate. The latest example: Bank of America's planned acquisition of Merrill Lynch, which may turn out to be "the strategic opportunity of a lifetime," in the words of Ken Lewis, Bank of America's CEO.

For most industries, the optimal time to hit the brakes and downshift was months ago. The questions to be asking now are: Where is the apex of the curve, and how hard should we accelerate to take advantage of competitor mistakes? Who is in trouble and dumping valuable assets in order to survive? Can we add great people who are now available?

The companies with the right answers to those questions will have the inside track coming out of this downturn

Pressure Presentations

2008-09-23T06:58:00.000-07:00

One of the important elements of a leader is to be able to present (whether to internal group or client/propects). Here is an article on delivering presentations under pressure.

How to Deliver a Presentation Under Pressure
After watching business pitches at recent tech conferences, communications coach Carmine Gallo prepared tips for make-or-break situations
by Carmine Gallo

http://www.businessweek.com/smallbiz/content/sep2008/sb20080919_919248.htm?campaign_id=rss_smlbz

Last week, dozens of entrepreneurs pitched their startups and technologies to influential investors and members of the tech community in hopes of raising money and attracting attention at two different important conferences—TechCrunch 50 in San Francisco and DEMO fall in San Diego. After attending the TechCrunch event in person and watching a number of the DEMO presentations online, I tried to turn what I had observed into five tips for anyone making a business presentation under pressure. While you might not have plans to pitch your company to an investor anytime soon, the odds are likely that you will have to pitch to a potential partner, customer, employee, or lender who can make a big impact on your company in the near future.

1. Keep it brief. TechCrunch limited pitches to eight minutes. DEMO gave its startup presenters even less time—six minutes. DEMO also charged an $18,500 fee to present. That's a little over $3,000 per minute. Try this exercise. If you had to pay $3,000 a minute to pitch your idea, what would you keep, and what would you cut? It might seem like a difficult task but it is an important one. You see, our brains are wired to tune out after a short amount of time. Brain researcher John Medina says the typical audience member gets bored in 10 minutes (BusinessWeek.com, 7/7/08). Venture capitalists have told me the same thing: If entrepreneurs cannot pitch their companies in 10 minutes or less, the message needs to be refined.

2. Don't override the memory buffer. Geoffrey Moore is the bestselling author of Crossing the Chasm and Dealing with Darwin and is a venture capitalist at Mohr Davidow Ventures. He has seen hundreds of presentations. He told me that entrepreneurs "try to squeeze a 2MB message into a pipe that carries 128kb per second." In other words, too many people overload their presentations. Remember, your brain can only absorb so much information at a time—keep your pitch simple and clear.

3. Set the stage for the conversation. According to Moore, most entrepreneurs fail to intrigue investors because they jump right into explaining their product without setting up the problem. "You need to create a new space in my brain to hold the information you're about to deliver," says Moore. "It turns me off when entrepreneurs offer a solution without setting up the problem. They have a pot of coffee—[their] idea—without a cup to pour it in."

I was thinking about Moore's advice when watching the DEMO pitch from Kevin Fliess, the founder of travel Web site TravelMuse. He began his presentation by setting the stage: "The largest and most mature online retail segment is travel, totaling more than $90 billion in the U.S. alone. We all know how to book a trip online. But booking is the final 5% of the process. The 95% that comes before booking—deciding where to go, building a plan—is where all the heavy lifting happens. At TravelMuse, we make planning easy by seamlessly integrating content with trip planning tools to provide a complete experience." By introducing the category before jumping into his product description, Fliess created the cup to pour the coffee into.

Once you have described the category, Moore recommends that you stake your "claim to fame" by clearly explaining why your company has the best chance to capture the opportunity you described.

4. Rehearse. Reading from notes is a sure way to lose your audience. You need to take the time to internalize your message so that it doesn't seem scripted (even though you might want to start with a script and reduce your message to bullet points for practice). Bear in mind that most presenters don't spend nearly enough time rehearsing the message (and responses to tough questions). In her new book, Slide:ology, presentation expert Nancy Duarte (BusinessWeek.com, 4/10/07) estimates the preparation time for a 30-slide presentation should be in the range of 36 to 90 hours! That's right, 36 to 90 hours! If that amount is shocking, you probably don't spend enough time researching, collecting material, understanding the audience, organizing ideas, sketching the storyline, or rehearsing.

5. Don't sweat the small stuff. During some of the presentations at TechCrunch, presenters had to wait while their Web sites loaded, because of a spotty Internet connection. Often the presenters stopped speaking while everyone waited. It seems they forgot that even in the most carefully prepared presentation, a minor glitch or two is likely. It's better to quickly acknowledge the mistake and move on. Your audience is interested in what you have to say and what you have to teach them. It's not about the slides, it's about you.

Keep these five suggestions in mind as you prepare for your next big presentation. Remember, you might not get another chance to win over your audience.

Wish comes True

2008-09-22T05:55:00.000-07:00

My mother told me a story about her childhood.

Her sister got poison ivy while walking home from school and had to stay home from school for a few days. Seeing this as a great way to avoid school, my mother went to the area she thought her sister received poison ivy. She decided to roll in the "ivy" over and over again. She rubbed the plant into her skin. Days went by with no poison ivy, she tried again. However, she never got poison ivy (so did she not find the "right" poison ivy or just not allergic to poison ivy - I know I am highly allergic, if I get within 10 feet, I get the itch).

Last week, my youngest son was ill and stayed home from school. My oldest was jealous and kept saying that he wanted to be ill and stay home from school. I think he tried to do everything the opposite of what we would say to stay healthy. Well, he got his wish, the only thing is that he got ill during the weekend. Now, he wishes he was not ill. Hey, we all learn a lesson.

In relationship to business and your career, watch what you wish for . . . you might just receive your wish (although not on your timing).

Joke of the Weekend XXII

2008-09-20T12:17:00.000-07:00

Three men: a project manager, a software engineer, and a hardware engineer are working on a project.

About midweek they decide to walk up and down the beach during their lunch hour. Halfway up the beach, they stumbled upon a lamp. As they rub the lamp a genie appears and says "Normally I would grant you 3 wishes, but since there are 3 of you, I will grant you each one wish."

The hardware engineer went first. "I would like to spend the rest of my life living in a huge house in St. Thomas, with no money worries and surrounded by beautiful women who worship me." The genie granted him his wish and sent him on off to St. Thomas.

The software engineer went next. "I would like to spend the rest of my life living on a huge yacht cruising the Mediterranean, with no money worries and surrounded by beautiful women who worship me." The genie granted him his wish and sent him off to the Mediterranean.

Last, but not least, it was the project manager's turn. "And what would your wish be?" asked the genie.

"I want them both back after lunch" replied the project manager.

This Year

2008-09-18T06:48:00.001-07:00

Something happened this week that reminded me of a poem . . . called "This Year"

Mend a quarrel.
Seek out a forgotten friend.
Dismiss Suspicion and replace it with trust.
Write a love letter.
Share some treasure.
Give a soft answer.
Encourage youth.
Manifest your loyalty in word and deed.
Keep a promise.
Find the time.
Forego a grudge.
Forgive an enemy
Listen. Listen. Listen.
Apologize if you are wrong.
Try to understand.
Flout envy.
Examine your demands on others.
Think first of someone else.
Appreciate.
Be kind;be gentle.
Laugh a little.
Laugh a little more.
Deserve confidence.
Take up arms against malice.
Decry complacency.
Express your gratitude.
Welcome a stranger.
Gladden the heart of a child.
Take pleasure in the beauty of the earth.
Speak your love.
Speak it again.
Speak it still once again.

Influences

2008-09-18T06:48:00.000-07:00

What makes You? Okay, it's a funny question (or phrasing) or is it? Besides family and your gene pool, what has made you the person you are today?

In my perspective, there are three major influencers.

1. The people you have met in your life (that is, spent considerable time with)
2. The books that you have read
3. The places that you have visited

On #1, I have been lucky to have spent time with some very special people. They may have been work colleagues or friends (or many that happen to be both). It seems these influencers were more important to me when things were not going well and there was a need to pull together to get through a difficult time (including building a new business). The interaction with these people had a profound impact on how I am today as a person.

On #2, You are what you read. If you read the USA Today, that says something about you versus reading the Wall Street Journal. Think about your favourite book, did it have an impact on your life in someway? Several of my favourite books have inspired me to achieve goals in my personal and work that I do not think I would have otherwise have achieved. (no, the books were not written by Zig Ziglar).

On #3, The more places you visit and spend time, you will change in some subtle ways. I have had the "luxury" (although at the time it sure did not seem like it) of moving almost every three years in my life. I lived in the UK and Germany among locals when I was very young. I have lived in most of the regions of the USA. I lived in Geneva Switzerland for five years, returning to the USA just last year. All of these impacted me in many different ways. I would say living in Geneva had impacted me the most and made me a much better person than I would have been.

Bottom line: It is the experiences that you have that make you who you are today(people, places, books). So, get out . . . go out and meet new people in different places in the world (that trip you always wanted to take but felt you did not have time to do it, do it now), and while you are traveling to those new locations to meet new people, bring a few classic books. You will be a different (and hopefully) better person than you are today. I am ready to go, I leave in less than two months.

CEO = Chief Entertainment Officer?

2008-09-17T05:53:00.000-07:00

I have discussed that having fun at work is important for the success of the unit. Here is an interesting article on the subject. Is Fun in You?

That's Chief Entertainment Officer

Smaller companies do fun better. We got that straight from the skating matador and dozens of his CEO colleagues.

By: Leigh Buchanan
Inc.com

George Kase's 2007 new year's resolution sounded self-indulgent, like giving up dieting for Lent. "I will have more fun with my employees," pledged Kase, president of CCFC Advertising, a $20 million Chicago company.

He wasn't being frivolous. Kase, who co-founded CCFC 20 years ago, assumed the top slot in 2005 when one of his partners moved into strategic planning. The previous leader, who Kase describes as "a very business-by-the-book guy," had presided over a work-hard-play-hardly culture. Kase worried that employees were keeping late hours, rarely glancing up from their computer screens.

First things first: He enlisted freelance help and insisted the overburdened talk to him about getting relief. Second things second: He made serious plans to inject good times into the job. "I thought, we have to put fun on the agenda," says Kase. "I can't leave it to happen organically because it won't."

So Kase brought in some rubber chickens and a bag of plastic dinosaurs. He took the staff to a racetrack, held a winetasting and a potluck with exotic foreign dishes and chili dogs. He started asking everyone: What should we do? Where should we go? "I am thinking we might institute a duty roster where folks get to create and execute the fun on a rotating basis," says Kase. "Requirements would be that everybody gets to have the fun, it can't cost a lot, and it cannot impair the senses--too much--or be illegal."

Kase is not the only leader trying to reverse a fun deficit. Many companies start out fun, but the carefree ethos is tough to sustain through growth, hard times, and the constant flux of personalities. Too often, fun becomes something employees have everywhere but here. When once a year the leader pops out of her office and hollers "Frisbee toss!" the effort feels forced.

Some companies, however, do manage to keep the good times rolling beyond the holiday party, the summer outing, and the occasional carton of Krispy Kremes. To find out how, we surveyed close to 300 executives and interviewed many others. We found that business owners with (and this is admittedly subjective) fun workplaces have thought seriously about how play plays out in their businesses. We offer some of their thinking below.

Fun Like Me
Companies reflect their founders' ambitions, their values, and their personal styles. Not surprisingly, many also reflect their founders' senses of fun. More than three-quarters of the executives we surveyed said their personal tastes and humor influence the company's entertainment agenda.

That's as it should be--as long as the boss isn't oppressive. ("Bowl, damn you! Bowl!") So movie buffs run Oscar pools, rehash the weekend's releases every Monday, and occasionally lead an excursion to the cineplex. Outdoor enthusiasts take workers skiing or mountain biking and often locate their businesses accordingly.

That model works well in smaller businesses, where everyone knows the CEO and employees sign on to a leader as much as to a company. For example, it's hard to imagine that anyone interviewing at CGL, a $50 million logistics company in Downers Grove, Illinois, doesn't know exactly what he's walking into. CEO Dan Para loves golf, games, and gambling, and he loves them loudly. His three partners share those enthusiasms. The office game room boasts a 12-place customized card table emblazoned with the CGL logo; more than two dozen people may show up for Texas hold 'em on Friday afternoons (for money, of course). Signed photographs of Tiger Woods, Arnold Palmer, and Jack Nicklaus hang in offices, and the company hosts its own singles and doubles golf tournaments with trophies that migrate from one winner's office to the next.

Para's the kind of guy who talks a lot about butt-kicking; the politically correct gene isn't part of his code. CGL hosts a Fat Boy Open, in which its heftiest contractors take on a home team on the golf course; this year the four-man opposition weighed a cumulative 1,180 pounds. Some people must be offended, right? "Are you kidding? Here? No," says Para. "We play for $100 a hole and give the money to our family foundation. This year the fat boys lost $380." But Para has a sweet gene as well. Recently, on the spur of the moment, he asked the staff to vote on which employee they thought was nicest and most admirable. When the receptionist won, Para ran out and got her a $1,000 bond.

Someone Make This Place Fun--Stat!
Shockingly, not all CEOs are founts of levity. "I'm not an especially fun person," concedes Marv Shetler, founder and CEO of Blazer Industries, a $35 million maker of modular buildings in Aumsville, Oregon. "I participate. But I'm not the best person to plan things."

CEOs of a serious nature often rely on a "cruise director" (our term) to either formally arrange activities or informally stir things up. Close to a third of survey respondents reported that a life-of-the-party-type employee performs this role; only 3 percent said there was no such person at the company. At Blazer, for example, Kendra Cox--a project manager who is also Marv Shetler's daughter--organizes the holiday party, the summer party, and regular pizza soirees, among other activities. Cox is also an ambassador for fun, taking candid photos of her colleagues for display and personally inviting every one of Blazer's 220 employees to events. She distributes candy or customized magnets she has had made up as reminders.

George Kase certainly relies on contributions from his cruise directors. But he would rather see CCFC's wallflowers drive the new agenda. "Fun people are easily amused, so they're a slam dunk," says Kase. "If someone who is reticent socially has an idea, they're more likely to participate. If it's not stellar, maybe a fun person can riff on it and come up with something unexpected."

Laura Ricci, a consultant who helps clients win big contracts, endorses a variation on wallflowers: "wackos." Ricci, the owner of 1Ricci in Pewaukee, Wisconsin, may spend years embedded in a company, trying to shake up its culture. She finds that "cool ideas come from people on the fringe--creative souls who don't fit in very well." Ricci recalls one project for which she tried in vain to persuade a client's employees to update some databases. She sought the help of a guy widely regarded in the company as an odd duck. He first wrote a script for a voice mail broadcast in which he threatened to upend a box of kittens into heavy traffic if the updates weren't finished. Ricci nixed that. Then he composed a series of six e-mails, each in the voice of a different American novelist. "They were fabulous," says Ricci. "People were so captivated by them that they said, 'Okay. Okay. For you, I'll do it.' And they did."

Only 14 percent of survey respondents said someone in human resources handled fun, and some CEOs we interviewed scoffed at the very idea. Phrases like "too cautious," "not creative," and "sanitized" came up frequently. What HR staff does well is to note when morale is poor, many agreed. In that case, leaders should encourage them to tap others to get things moving.

The First Rule of Acting
Workplace fun often flows from the top down. But the best fun--the really fun fun--moves in the opposite direction. To encourage that, says Ricci, CEOs should follow the first rule of acting: Don't step on someone else's line. "In theater, there's a moment when the actor is about to evoke a reaction from the audience and another actor steps into the spotlight or talks too soon and ruins it," she says. "The jokes in your organization are probably already happening, and they'll get louder if you don't step on them." Kase agrees. In fact, he encourages his executive team to engage in irreverent banter in front of employees, to model how much is now permissible.

In all but the smallest companies, grass-roots fun is often specific to departments or other subgroups. Yet somehow everyone knows about it. At Blazer, for example, most employees can tell you about the pranks and wild displays of fandom that rage in an accounting department riven by loyalties to rival college football teams. Workers of a certain age squirm in apprehension of a visit from the Older Than Dirt Club, a group of women who leave black, leafless trees on people's desks to commemorate their 50th birthdays. Wandering around the parking lot at lunch one day, Cox discovered a small subculture of people who barbecue in the back of their trucks. "I don't know that you can create a fun culture," she says, echoing Ricci. "What you can do is not stop one."

Employee-driven fun often involves pranks: the office full of Styrofoam peanuts, the stapler that mysteriously empties itself every day. CEOs know they have a fun culture when the jokes are on them. Jim Haudan, for example, has been the butt of several elaborate pranks at Root Learning, his $20 million strategy-implementation and consulting firm in Sylvania, Ohio. On one occasion, several employees connived to convince Haudan that a top executive was leaving to appear in a movie with Katie Holmes. (The prank included an e-mail from the actress's real brother and a fake movie poster concocted for the cause.) Haudan tried to dissuade the executive, expressing serious doubts about his acting chops. The executive recorded this impassioned spiel, then played it before a howling audience at a company meeting. "I went for it hook, line, and sinker," says Haudan.

An exemplary instance of employee-driven hilarity is the "attack monkey," which has been cheerfully murdering people at AppRiver, an e-mail security company in Gulf Breeze, Florida. Three years ago, Hurricane Ivan ripped the roof off AppRiver's headquarters, forcing it to set up shop in a temporary location. To cheer the troops, software developer Erik Forsberg used a digital camera to film his sock monkey attacking another developer. Others pitched in on the film, and the staff was in hysterics as it made the rounds. Later, an administrative assistant decked out the monkey in a tiny red hood with devil horns.

Now when someone is hired, staff mull ways the monkey could attack, explains CEO Michael Murdoch. "We have a lot of funny people here, and I don't want to stifle that," he says. So far the 55-employee company has documented about 45 kills, including electrocution, strangulation, poisoning, and hit-and-run. The attack monkey finished off Murdoch during a job interview. It slid its salary requirements across the desk, and the CEO suffered a fatal heart attack.

Our Guys Are a Hoot!
Employees aren't just the best instigators of fun, they're also fun's best subjects (next to the boss, of course). Reality television grew fat on the entertainment value of the personalties and experiences of ordinary people. Ordinary people whom everyone knows are a richer vein of amusement.

Companies seem to get that. Among our survey respondents, mock talent competitions in the spirit of American Idol, So You Think You Can Dance, and The Gong Show were almost as popular as bowling. Another common diversion are in-house films that document workers just being themselves. At its holiday party, Blazer screens a video--including a blooper reel--that features reenactments of funny and peculiar happenings around the business. This isn't Farrelly brothers material: "We did a story about our plumbing department hiding a coffee pot that's not allowed on the plant floor," says Cox. But for Blazer employees in on the joke, it's comic gold.

Root Learning also celebrates staff at its end-of-year fete, honoring the employee with the most animated hand gestures, for example. But a more substantive appreciation of vivid personalities is a wall of employee caricatures in Root Learning's lobby. The day a new hire arrives at Root Learning, one of the company's graphic artists draws her. Over the years, details are added to reflect a growing familiarity with her tastes and quirks. In year eight, the caricature is decked out with a full array of personal effects and an appropriate background. Everyone knows the receptionist likes to change hair colors. Lest they forget, the drawing in which she sports a rainbow coiffure is a vivid reminder.

You Call This Work?
Arguably the Holy Grail of fun quests is making work itself entertaining. That's easy if your company produces board games, tougher if it produces boards. "People spend 40, 50, 60 hours a week doing something they don't like, and that's not healthy," says Ronald Culberson, a Herndon, Virginia-based speaker on bringing humor into organizations. "How do you make mundane processes fun? Aside from Southwest Airlines (NYSE:LUV), not many companies have managed it."

Employees left to their own devices may come up with ingenious ways to relieve the tedium, Culberson says. He recalls visiting one organization where administrative workers took turns opening vast volumes of mail. Every day, an employee not so engaged would place a small gift--a coupon for an ice cream cone, a comic strip, a candy bar--in an envelope and plant it among the rest for his colleague to find. In another company, clerks used stools, stepladders, overturned boxes, and the like to transform their file room into an obstacle course. "It sounds goofy," says Culberson. "But it made that process a little more interesting."

If you can't make discrete tasks fun, you can at least add excitement to the context in which they're performed. CEOs often fail to recognize cultural malaise because they themselves are on a perpetual thrill ride of wins and losses. Rank-and-filers, meanwhile, twiddle their thumbs in the ticket booth. Giving staff some numbers and teaching them to keep score gooses ordinary jobs with the frisson of competition. "Winning is fun," says Ned Compton, president of DEI, a 73-person Cincinnati company that designs and builds banks and other financial institutions. "We share sales and losses and financial performance with our people, and we explain what it all means. When we make a sale we all go down to our Santa Fe room and have a glass of champagne. They see the competition, and that's exciting."

Virtual Meeting Strategies goes further. Lots of companies build their financial periods around themes, but few do so with the creativity of Virtual Meeting, an Indianapolis facilitator of online communication. This trimester, for example, principal Neal Rothermel launched the theme "Big Picture" with a presentation in a movie theater that included popcorn and a preview of summer blockbusters. Another time, when the company had to execute a record amount of business, Rothermel declared the company to be "in Survivor mode." The executive team cleared the conference room and brought in tikis. Employees sat cross-legged on the floor. Everyone chose tribal names and wore headbands. For the rest of the period, tribes at each meeting would nominate survivors who had contributed the most or provided the best customer service. (No one was voted off the island.) "I wanted to find a way to share war stories across teams and celebrate above-and-beyond efforts," says Rothermel. "The returns on productivity and morale have been exponential."

And It's for a Good Cause
The first question CEOs ask when choosing philanthropies is "What best jibes with my mission?" The second question isn't "What would be the most fun?"--and probably it shouldn't be. Still, charities routinely build fun events into their fundraising. Companies can also have a good time doing good.

So what charitable work is fun? Runs and walks are great for the sinewy of thigh but are often held on weekends. (And we don't have to remind you that fun takes place on the company's time, not the employees', correct?) Anything collaborative--building a house, working side by side in a soup kitchen--can be fun. Helping children is often rejuvenating. DEI has adopted a class at an inner city elementary school. Employees take kids fishing and throw them a Christmas party, among other activities.

Jim Schleckser, founder of the six-person consultancy the CEO Project in Potomac, Maryland, observes that fun events are also a fine opportunity for CEOs to do some good for their companies by demonstrating servant leadership. "The CEO should be out there flipping the burgers, helping clean up, letting other people be the captain," says Schleckser. "But you've got to be the same person at the barbecue that you are the rest of the year. It isn't fun if it's not sincere."

Difficult Time

2008-09-16T06:46:00.000-07:00

I want to talk about a difficult subject, so this will not be a "normal" posting.

One of my colleagues' husband has been diagnosed with terminal cancer and has only three to six months to live. Our hearts go out to their family. This happens, it's difficult and understand that someone knows someone who has been directly impacted with a difficult situation like this. It is not easy.

As a leader, this situation will happen to one of your colleagues or direct reports (or family member). I hope it doesn't happen. When it has happened to other leaders, I have been asked before, how do you handle a situation as a leader. Well, first, it is not easy, this is a sad and difficult time. Here are some thoughts:

1. Don't Ignore (some leaders will go into hiding, that is not the right move)
2. Acknowledge the situation (go to the person directly impacted and talk/listen to them. If appropriate and approved by the person, communicate to the team. I have found that teams are at their best when supporting a team member)
3. Lend your support (provide support in ways that will be beneficial, e.g., set up a meals delivery from the office whereby one team member delivers the family meal each night)
4. Be Patient

I know, not great advice, but again, this is not easy.

It is strange when this happens, you do get a slap in the face and realize that life is precious (no I am not going on a speech here). Sometimes, we get into the "rate race" of work and forget about it. Hug your spouse/partner/children/parents today, dont wait until tomorrow. When you look around or into the mirror, are you happy? If so, GREAT keeping doing the same things to make you happy. If not, do something that will make you happy. Enjoy Life.

The Road Less Traveled

2008-09-15T06:28:00.000-07:00

You come to a fork in the road of you career. Some will take the road most comfortable, while others will take the road less traveled (sound familiar). However, what happens if you approach a fork in your career and both are new and less traveled?

If your head and heart are aligned on a particular route, take that one! What happens if your head and heart differ? You know it is the smart thing to follow one particular route because it makes all logical sense, i.e., head. It is the next "perfect" step in your career. However, your heart tells you the other route. It might be illogical and risky, but you have lots of passion for it.

Every person will decide based upon their experiences and needs.

I would choose the route my heart selects. Passion is important to me and believe if you have enough passion and drive about a track, you will be successful. In my book, Heart is greater than Head. I would find it hard following the logical path, when my passion dictates the other path. What about you?

Joke of the Weekend XXI

2008-09-13T06:46:00.000-07:00

I have mentioned that Innovation is key . . . received these from a old friend

. . . and you thought all the good ideas were taken

Lazy Team Member

2008-09-12T05:16:00.000-07:00

You work hard. You are a member of a team. There is a goal to achieve. Do all the team members have the same commitment to achieve the goal? Yes, in rare instances, there is a team member that, should we say, "is not pulling their weight". What happens? You have to do some extra work to make up for it . . . and end up resenting it. Consequently, the goal is achieved (because of extra work by team members to make up for the one who was lacking) and all members of the team are congratulated and rewarded including the unperforming member. How do you feel? Overtime, it becomes very disruptive to the future success of the unit. The following is an example of a sports analogy (no, I am not a Tampa Bay Rays fan, Go Soxs)

Lazy Teammates Compromise Team Performance
Posted by Craig E. Runde and Tim Flanagan

http://blog.inc.com/leadership/2008/09/lazy_teammates_compromise_team_1.html

Conflict is a challenge everywhere, in every business. But rarely is it this public.

A recent headline in the St. Petersburg Times blared, "Effort issues incite angst." Our hometown team, the Tampa Bay Rays, this year's "Cinderella club" in Major League baseball, has a problem. It's a problem not unlike one of the most common issues faced in workplaces across the country and around the world. One of the key players on the team appears, no check that, is demonstrating, a lack of commitment to the team.

In short, rising star centerfielder B.J. Upton has been guilty of one of the cardinal sins in any level of sports: a lack of hustle. He failed to run hard to first base in a recent game. After the game, Ray's manager Joe Maddon met with Upton, discussed the situation, and gained assurances that this would never happen again. About a week later, Upton again failed to run full speed after hitting a ground ball that turned into an inning-ending double play. Maddon pulled Upton from the game, met with him again, and did not allow Upton to play in the next game. Once again, all parties, including Upton, agreed this type of effort was unacceptable. Several games later, Upton hit a line drive off the left field wall. As Upton jogged toward second base, the throw from the outfielder reached the first baseman who tagged Upton from behind for the out. The crowd booed. Upton walked off the field in embarrassment while Maddon and the Rays wondered how they could continue to count on him.

The conflict here is not just between Upton and his boss. Upton's behavior has had an impact on the entire team. The climate has been damaged and emotions are running high. What makes this situation so interesting is that the offending behavior was addressed immediately. And not just by the manager. Recent reports from the Rays indicate that several teammates have discussed the situation at length with Upton. And the team met as a whole with Upton apologizing and committing to be there for them as the Rays make their stretch run.

We're typically cautious about using too many sports examples and analogies. In this case, however, I believe there is a great lesson to be learned. When conflict arises because of the unsatisfactory work habits of a teammate, the behavior must be addressed swiftly. The integrity of team norms and climate is critical to the motivation of team members and ultimately the performance of the team itself. Handled well, events like this can be a galvanizing force for any team. Handled poorly or ignored, even the best of teams will suffer. Here's hoping the clear, quick steps taken by the Rays will pay off with a championship season.

In Memory

2008-09-11T06:35:00.000-07:00

Of those who are no longer with us from the events of 9/11/01.

As a Marsh McClennan employee at the time, I personally knew several people who died in the World Trade Center. Let us never forget.

Getting it Done!

2008-09-10T06:53:00.000-07:00

You have been there . . . lots of great conversation that leads to a wonderful future goal. Then . . . achievement never happens. Everybody in that discussion goes back to their "day jobs", nothing changes. Six months go by, still not done. A year goes by and another set of conversations confirm this goal that will change our business. Time continues to go by, but nothing is realized.

Wishing for something to happen, will not get it done! You must act. Whether this means adding appropriate resources or redeploying resources to make sure the goal is achieved. Someone once said, Craziness is doing the same thing but expecting different results.

There are several reasons why goals are never reached, lack of resources, lack of focus, misspecification, poor execution. Over the past many years, I have found that a lack of planning is the number one reason why goals are not reach (whether a business goal or personal goal).

It reminds me of a phrase . . .

"A goal without a timeframe or a plan is only a dream"

So, quit dreaming and set a plan with specific dates if you want to accomplish your goal! Today could be your first day of beginning to reach your goal.

It's one of those days . . .

2008-09-09T05:55:00.001-07:00

It does not happen often. As a matter of fact, I cannot remember when it last happened. The alarm goes off and BOOM, you really don't feel like out of bed. So, you hit the snooze button, again . .. . again . . . again. Maybe it's because you have a minor sore throat, or you stayed up too late working on an important presentation . . . you just plain want your bed to be your office today. Well, that is me today!

I know of some people who rarely get sick but periodically take a "mental health" day . . . they finished a huge project or presentation and just need to take a break. To be honest, I was never really a big believer in mental health days, but today might have changed my mind.

Why not? Most organizations provide vacation time and sick time. What if you are extremely healthy, why shouldn't you be able to use a sick time when you need a mental break.

More organizations seem to be moving toward a "time off" policy, give you set of days that you can take off, either vacation or sick days. An interesting concept because those that are healthy can use some extra days on vacation (since year after year, their sick days go away unused). Those people who seem to get ill alot (you might know someone), they will have fewer days for true vacation. I like this "time off" approach as it places incentives in the right place. However, the downside is that people show up ill trying to keep their "time off" days for vacation. I would hope that if really ill they would stay home.

Succession

2008-09-08T06:51:00.000-07:00

This past week was the beginning of the American Football season. Unfortunately, several quarterbacks were injured during the opening games (sorry for those fantasy football owners who had Tom Brady, Yikes). Some teams were prepared with a solid backup, while some had backups that have very little experience.

This reminded me of how important succession planning is for a business leader. Do you really know that your top performers will be staying around? What happens if your best performer walks out the door? Are you prepared? What do you do? You need to constantly be thinking about what if scenarios and have a short and long term plan in place. I keep a notebook (actually it is black) with notes about leadership planning with some what if scenarios (luckily, I did not have to go to very often).

Usually, the top performers are the ones that you probably fail to talk to as much because they are performing so well and your time is limited so you typically focus on "putting out the fires" and on areas of poorer performance. Do you know think the competitors know about who your top performers are? Guess again. Make time, whether a quick phone call, or a lunch to stay in touch with your top performers to gauge the pulse of them.

It is also a good practice to spend quality time at your leadership meetings on people and succession plans, including asking your direct reports, who would they recommend as their replacements.

Be proactive as you dont want to end up having a losing season because you were not prepared.

Joke of the Weekend XX

2008-09-06T07:58:00.000-07:00

Reading between the lines

1 Bob Smith, my assistant programmer, can always be found
2 hard at work at his desk. He works independently, without
3 wasting company time talking to colleagues. Bob never
4 thinks twice about assisting fellow employees, and always
5 finishes given assignments on time. Often he takes extended
6 measures to complete his work, sometimes skipping coffee
7 breaks. Bob is a dedicated individual who has absolutely no
8 vanity in spite of his high accomplishments and profound
9 knowledge in his field. I firmly believe that Bob can be
10 classed as an asset employee, the type which cannot be
11 dispensed with. Consequently, I duly recommend that Bob be
12 promoted to executive management, and a proposal will be
13 executed as soon as possible

Addendum:
That idiot was standing over my shoulder while I wrote the report sent to you earlier today. Kindly re-read only the odd numbered lines

Trust

2008-09-05T06:42:00.000-07:00

Here is the definition of Trust

trust
–noun
1. reliance on the integrity, strength, ability, surety, etc., of a person or thing; confidence.
2. confident expectation of something; hope.
3. confidence in the certainty of future payment for property or goods received; credit: to sell merchandise on trust.
4. a person on whom or thing on which one relies: God is my trust.
5. the condition of one to whom something has been entrusted.
6. the obligation or responsibility imposed on a person in whom confidence or authority is placed: a position of trust.
7. charge, custody, or care: to leave valuables in someone's trust.
8. something committed or entrusted to one's care for use or safekeeping, as an office, duty, or the like; responsibility; charge.
9. Law. a. a fiduciary relationship in which one person (the trustee) holds the title to property (the trust estate or trust property) for the benefit of another (the beneficiary).
b. the property or funds so held.

10. Commerce. a. an illegal combination of industrial or commercial companies in which the stock of the constituent companies is controlled by a central board of trustees, thus making it possible to manage the companies so as to minimize production costs, control prices, eliminate competition, etc.
b. any large industrial or commercial corporation or combination having a monopolistic or semimonopolistic control over the production of some commodity or service.

11. Archaic. reliability.
–adjective 12. Law. of or pertaining to trusts or a trust.
–verb (used without object) 13. to rely upon or place confidence in someone or something (usually fol. by in or to): to trust in another's honesty; trusting to luck.
14. to have confidence; hope: Things work out if one only trusts.
15. to sell merchandise on credit.
–verb (used with object) 16. to have trust or confidence in; rely or depend on.
17. to believe.
18. to expect confidently; hope (usually fol. by a clause or infinitive as object): trusting the job would soon be finished; trusting to find oil on the land.
19. to commit or consign with trust or confidence.
20. to permit to remain or go somewhere or to do something without fear of consequences: He does not trust his children out of his sight.
21. to invest with a trust; entrust with something.
22. to give credit to (a person) for goods, services, etc., supplied: Will you trust us till payday?

As a leader or colleague, trust is not something you gain right away. Yes, some might give you the initial benefit of the doubt, but serious trust takes time. When I say "takes time", this is not that you meet someone one day and wait a year (never talking to that person), and show up and WOW, there is trust. Time is NOT an event. Trust takes a consistent and regular interaction over time; those are specific events that build trust (which is a two-way street). The easiest way to achieve trust as a leader or with colleagues is to "do what you say". Some might disagree with what you say, but you back up with specific actions (you can still trust someone even if you disagree with them). As a new leader, building trust is paramount to your success; you will not achieve organizational success if the staff do not trust you. You are their leader and they need that confidence of leading them in the right direction!

Silence or lack of communications can damage achieving trust. What is the leader thinking or doing? How do we achieve? Why was that decision made? Does the leader know what they are doing? When these questions are being asked, trust is slowly being damaged.

You know you have been there . . . a colleague or leader says that will do something, and does not get done or, in the worse case, something different is done. How did you feel? What happens the next time the person says something? It takes a long time to believe in that individual again and in the meantime, productivity is slowed because you in a limbo. You will constantly be asking, will this person really mean what they say this time?

So as a leader, gain the trust . . . make sure you communicate, and when you communicate, make sure you follow what you say! Trust is a special thing that is not easily granted, and it is key to the success of the unit!

In You I trust!

Finally . . . .

2008-09-04T05:43:00.000-07:00

Someone wrote a book that is "right on" about Talent (or more importantly, Human Capital). Many of the postings from this blog are aligned with a new book, called Talent - Making People Your Competitive Advantage by Ed Lawler. Leaders don't necessarily "do as they say", i.e., they may state that people are the greatest asset of the organization but how they invest in them (training, goals, development, incentives) is not aligned. If you want to be a strong leader, one that will lead your organization to new heights, don't just read this book, but "do as it says".

Change we can believe in!

Here is a recent book review:

Time for a human-centric take on talent
By Stefan Stern
Financial Times

http://www.ft.com/cms/s/0/4780065e-6418-11dd-844f-0000779fd18c.html?nclick_check=1

We should never judge a book by its cover, of course. But here is an important new publication that risks being overlooked because of its title.

"Talent" is the latest word to get taken up by consultants and gurus, and exploited half to death. I blame McKinsey for this. The consultancy's report into "the war for talent" more than 10 years ago took this ordinary, two-syllable word and turned it into a fetish.

The word does not get used properly any more. Talent used to describe something rare, exceptional even. But today the label has become a synonym for the more general term, "people".

And then there is the honesty problem. Business leaders declare publicly that talent matters to them, that people are their most important asset. But, as Edward Lawler, points out in his introduction, "in too many organisations people are not treated as important assets, and it seems particularly insincere and inappropriate when managers persist in saying they are".

Finally, bosses talk about widespread talent, but in fact worry about a few senior people and potential future leaders. This is a limited approach, which neglects what other employees could be doing for you.

There is nothing limited about this author's grasp of his subject. As a professor at the Marshall school of business at the University of Southern California, and director of USC's centre for effective organisations, Lawler is one the world's most seasoned observers of business life. His recent book, Built to Change, had many admirers, with its insights into the problems faced by organisations that try to adapt to changing times.

This new book is not really about talent. It is about human capital, a more obscure and less easily marketable concept. But with it Lawler places himself at the head of a growing intellectual movement - in management circles at least - that looks to move beyond the world of rigid corporate structures and aims to build a future where businesses and organisations are "human capital-centric".

You can see how this approach differs from the minimalist view of talent at work. Lawler looks at every important aspect of organisational life - performance, decision making, governance, managing change - and considers how an "HC-centric" company would deal with them.

If some of the corporations that are cited as positive examples are familiar - Google, Goldman Sachs, WL Gore, Starbucks, Whole Foods Market - it is because by and large they are succeeding at making the cliché about people being the biggest asset a reality.

(More usual is the approach owned up to by Dilbert's boss, who confesses at one point: "It turns out that I was wrong. Money is our most valuable asset. Employees are ninth." In eighth place was carbon paper.)

What do HC-centric companies get right? First, they select new recruits carefully. As Lawler points out, Goldman Sachs takes weeks over choosing its candidates.

HC-centric companies manage performance rigorously. Everybody's performance, including that of top management, is appraised. There are no exceptions. Michael Dell was prepared to listen to what his colleagues told him about his lack of approachability and brusque manner, and committed to doing something about it.

HC-centric companies have active, credible human resources managers. This, too, is rare. As Lawler says, boards usually turn to their chief executive for HR expertise, since the HR "function" has often been unable to convince senior colleagues about its relevance and value.

Jack Welch once said that if your chief financial officer is considered more important than your HR director, you are "nuts". "The conclusion one has to reach based on this is that most boards are 'nuts'," Lawler says, "because they do, in fact, [usually] have their CFO present but not their head of HR."

Human capital management is not a frivolous, nice-to-have concept. It is fundamental to how your business operates, and to whether it will succeed or fail.

"In an HC-centric organisation, it is impossible to separate talent from business strategy," Lawler writes. He asserts that, by getting the so-called "soft" issues right, a company can build a sustainable competitive advantage.

He's right, of course. But abandoning rigid structures and creating the space for people to perform will require managers to abandon tried and trusted approaches. It will not be easy, but companies are going to have to adapt, and fast.

So, you think you are having a bad day . . .

2008-09-03T08:14:00.000-07:00

Over the past few months, I have mentioned a few bad travel days in my postings (actually, just had another one whereby missed my connection in Houston at 2:00am and rented a car and drove 3 hours to Austin, hey these things happen to all of us). With these postings, I have received several emails about their bad travel days or business travel experiences. However, no experience outdoes one of my colleagues many years ago.

A very senior executive was traveling on business in a major city. This individual was based in the UK and was in the USA. With a bad case of jet lag, the person woke up early to use the bathroom (head, john, toilet, restroom, etc.). Tired and still groggy from the previous night's dinner, he struggled to the bathroom . . . opened the door and stepped in . . . the door closed . . . opening his eyes wider (he wore thick glasses and did not have them on) . . . he noticed that he was outside of his hotel room (opened the wrong door and no, he did not sleep with the door key on him) . . . okay, not too bad, right? just need to go to a house phone or to the lobby and get another key. However, this person preferred to sleep in the raw . . . yes, nude . . . so, the person is standing outside their hotel room, in his birthday suit (i.e., completely naked), can hardly see because he does not have his glasses on and was on the eight floor. He wandered the hallways "looking" for the elevators (you know, sometimes you can't remember which way the elevators are because you are in so many hotels, and he is practically blind). He found the elevators and this particular hotel did not have a house phone at the elevators . . . He was innovative in that he used a small painting (okay not that small) on the wall to cover himself as he went on elevator to the lobby to retrieve a new key. The first question that the hotel rep at the lobby asked "do you have any identification with you?" Then realizing his situation, gave a new key and they provided an extra bath robe for him to use as security escorted him up to his room for proof of identification.

I do not do this story justice as the victim is a wonderful story teller. This is one of the funniest business travel experience stories that I have heard. Let me know if you have one to top that?

Hotel workers must have some good stories.

Hey, these are the times that make business fun and interesting! No matter what, there is someone out there that has a more difficult day than you are having and a better day than your best day. Keep work/life in perspective.

Never Give up

2008-09-02T06:14:00.000-07:00

This past weekend was a three-day holiday weekend in the USA. I had several house projects that I wanted to complete. Needless to say, all were not completed even with all good intentions.

I would like to illustrate one of the projects that was performed and why I usually have someone else do house projects versus me.

We have a pool. One of the projects was to fix an automated pool cleaner (looks like a robot that goes along the bottom of the pool and acts like a vacuum cleaner). Anyway, it took three days to finally resolve this and several times, I was ready to give up and call the "pool guy" and let him fix it.

Here is what happened:

1. One of the wheels had broken off the device last week.

2. I examined the device and appears to me that it cannot be fixed, so I go to the nearest pool store which is a 30 minute drive away.

3. I show up and talk to the store owner who says that I should be able to be fix the machine as there is a wheel part they sell (oh, and its EASY to fix). This is going to save lots of money . . . versus buying a whole new system. He asks which model version that I have . . . well, there are about four different versions. So, I said, it sure does look like this particular one.

[Lesson One: Be prepared. Always be prepared and don't guess if you really don't know]

4. I buy the part, drive home, begin to fix the machine and yes, I come to the conclusion that I got the wrong model number.

5. Well, from learning of lesson one, I bring the entire machine with me back to the pool store.

6. "Hi Steve" states the pool store owner (yes, I need to visit the pool store often, pools need lots of maintenance). I told him that I bought the wrong version, and am carrying this machine (he says, well I can see that), let's take a look. He refunded me the wrong part I purchased.

7. He opens up the machine and says, "this machine is ancient, we can rebuild it or you can buy a new one". I am all for rebuilding things but in this case I do not want to worry about this for a long time so go with the new one.

[Lesson Two: Sometimes when you think you have a inexpensive solution, you probably need to check again]

8. I bring the new fancy model home and begin to plug the device into the wall of the pool.

[Lesson three: Oh, yeh, just call me, Mr FIXIT . . . or . . . don't count the chickens until they are hatched]

9. Oops, I need to take out a piece in the wall that went with the old device. I tried every tool in my tool chest to remove that damn piece to no avail.

[Lesson Four: Always focus on a total solution, i.e., make sure you have everything you need to implement the solution.]

10. So, to save gas, especially at these prices, I called the pool store owner this time and explained my problem, he said that he had a small tool that helps remove that piece from the wall. WooHoo, this problem will be resolved (it’s not me)

[Lesson Five: When you are overconfident, something will happen to bring you back to reality]

11. I drive back to the store, buy the $2.99 tool (it is just a plastic tool that fits into wall piece which allows you to get some leverage for removing it.)

12. I get into the pool, place the new tool into the wall piece and try to unscrew it, SNAP, there goes the new tool, broken in half.

[Lesson Six: Going Slowly is sometimes better than using brute force, you know Aesop's fable, the one about the Wind and the Sun]

13. It appears that the previous owner of our house glued the old piece into the wall. I am thinking seriously of giving up at this point!

14. I call the pool store owner (who jokingly says, “Steve, I might have to start charging you a consulting fee”, gee thanks, yes, this might be a ID Ten T error (yes, spell that out).

[Lesson Seven: The locally-owned stores have the best customer service]

15. The pool store owner says “Steve, you are just going to have to chip it out”. Uh, you mean with a hammer and screwdriver? "Yes"

16. Well, you must realize that the wall unit is about two feet below the surface of the water . . . so I need to hammer a screwdriver under water . . . yes, water has something called resistance.

17. After a few hours, I have accomplished my task, the old wall unit has been chipped out, slowly into about a thousand small plastic pieces.

[Lesson Eight: Small success leads to greater success]

18. Now, I have to put the new device in. But remember the $2.99 tool that I purchased to remove the old one, well, I need that same tool to screw the new piece into the wall. Yes, that piece is broken in half and won't work.

[Lesson Nine: Sometimes one small problem causes several other "ripple" problems down the line]

19. I drive back to the store, buy another $2.99 tool and return and then all finally works and the pool is clean.

20. If you happen to be in Austin, you are more than welcome to come jump into the pool, please do, especially after all the time I spent on this one small task!

[Lesson Ten: never give up, in a house project or business project, because the celebration of achievement outweighs all the work that went into the project]

Olympic Joke of the Weekend

2008-08-30T06:15:00.000-07:00

Michael Phelps 1st photo

Joke of the Weekend XIX

2008-08-30T05:58:00.000-07:00

Everybody, Somebody, Anybody, and Nobody

This is the story of four people named Everybody, Somebody, Anybody, and Nobody. There was an important job to be done and Everybody was asked to do it. Anybody could have done it, but Nobody did it. Somebody got angry about that, because it was Everybody's job. Everybody thought Anybody could do it, but Nobody realized that Everybody wouldn't do it. Consequently, it wound up that Nobody told Anybody, so Everybody blamed Somebody.

Boosting Morale on a Budget

2008-08-29T05:50:00.000-07:00

Boosting Employee Morale is an important ingredient for success. I have always remembered a statement that my mentor once said. The difference between a great company and good company is that a great company has people motivated to do a little extra (whether productivity, an extra phone call, an extra thank you . . . ). One way to do that is create a positive environment. In a startup or small organization, there are ways to boost morale that are not very expensive. Here is an article on boosting employee morale on a budget.

How To Boost Employee Morale On A Budget
www.forbes.com
Jane Applegate

http://www.forbes.com/entrepreneurs/2008/08/28/small-business-morale-ent-hr-cx_ja_0828boostmorale.html?feed=rss_entrepreneurs

"Money can’t buy happiness" is not a cliche when it comes to boosting morale around the office. In these uneasy times, when many entrepreneurs are pinching every penny, knowing how to reward employees without spending a lot is crucial.

"You can do things for employees that don’t cost anything, but are worth a million dollars,” says Bob Nelson, author of 1001 Ways to Reward Employees, now in its fifty-second printing. Better yet, "small businesses can do [these things] because they aren't constrained by a 500-page policy manual."

Stop fretting about not being able to shower your employees with cash, says Nelson, who runs a consulting company based in San Diego. For his doctoral dissertation, Nelson conducted a landmark survey of 2,400 employees in 34 companies.

Greenbacks are nice, of course, but barring those, Nelson discovered that most employees crave communication, involvement and autonomy. While a hearty pat on the back always feels good, extra attention and sense of ownership feel even better.

"Every employee should be given the chance to determine how best to do their jobs, as well as increased authority and leeway in the handling of company resources," says Nelson.

Arbill, a Philadelphia-based workplace-safety consultancy, takes that observation to heart. The company boosts morale by giving the troops more responsibility. "We created employee committees to do things like set up a health fair, a food co-op and other [projects]," says chief executive Julie Copeland.

But the extra work doesn't just make people feel good. "Watching how employees manage these committees helps us create a great bench of leaders for the company," says Copeland.

Taking an interest in your employees also means investing in their future. That's why training and development opportunities are energizing perks. Check out the local community colleges and university-extension departments for affordable classes, and foot part or all of the tuition for eager employees.

Company picnics? Chuck them. Employees don't care--in fact, they find them a burden. Better to grant the flexibility for personal time to handle family obligations. Four-day work weeks are becoming popular (though they come with their own complications). If possible, consider letting people work from home one day a week--with gas at $4 a gallon, that savings will feel a like a holiday bonus.

In a very small company, rewarding just one employee can make a huge difference. Take it from Sari Gabay-Rafiy and Anne Marie Bowler, two lawyers who left a large firm to start their own Manhattan practice two years ago.

When Myrna Greenfield, their 60-something, part-time legal assistant, was feeling a bit blue, the partners decided a makeover was in order. So, they booked an appointment at the Sparkle Beauty Studio, a trendy salon on Charles Street in Manhattan’s West Village.

Myrna left with a chic razor haircut and a smile on her face. After the salon visit, they continued their “girls’ day out” with cocktails and dinner. "We can’t give our staff thousands of dollars in bonus checks, but we can do little things for them," said Gabay-Rafiy.

Kathy Taggares, chief executive of K.T.’s Kitchens, a Carson, Calif.-based maker of frozen pizza and salad dressing, needed a cost-effective way to thank her overworked staff for winning a multi million-dollar grocery account. The previous year's glitzy, five-figure Los Angeles harbor cruise with open bar was too expensive to repeat, so she booked a nearby go-kart track for a Friday afternoon.

"We mixed up people from production, quality control and maintenance," she says. The drivers ranged from 20-something women to a 74 year-old manager; non-drivers got into the act as cheering "pit-crews." The afternoon ended with a feast of Mexican food and gooey cake served in the party room at the track. Price tag for the 35-person celebration: about $2,000.

"It was a great team-builder, because people from different departments are often at odds with each other," says Taggares, who handed out trophies to winning drivers. "You would have thought people were winning Oscars. Everybody was just thrilled."

Going Global

2008-08-28T08:08:00.000-07:00

Over the last few months, I have met and worked with many organizations who are taking their US-centric businesses to the global marketplace. One of the initial mistakes in their thought process is building business with two segments: US and Global.

However, as a global leader, you need to think differently. US is part of the world, i.e., global.

A few Things to do in moving global:

- organize globally

You might not be able to do that right away, but you need to be moving in that direction if you really want to be a global unit.

- focus on customer segmentation

Just because you sit in the US, does not mean that you only want the US product/service. Some will have US domestic responsibility, while others will have global responsibility. These are two distinct segments which have different needs and requirements. A customer with global responsibility who sits in the US will have similar issues/needs as another customer with similar responsibilities sitting in the UK. So, its global versus local.

- have a global mindset but remember local differences

Going global does not mean take what you have in one country and sell it globally. You need to have a global platform (mindset) but local flexibility. Coca Cola is an excellent example, same brand, platform, but the taste of coke varies in different geographies based upon local preferences.

From my experiences, working globally is very rewarding. However, you do need to think differently than you have in the past.

Family First

2008-08-27T05:20:00.001-07:00

You work hard. I work hard. Most people want to do a good job. Some work hard because there is fear of losing their job.

How do you balance working "all the time" and family?

Now, I might not be the best to advise on this because in the past, I was one of those doing extra work so I could "succeed" or at least not get fired. I was a workaholic. There I said it.

My priority advice to others has always been:

1. GOD (or any other higher authority that you believe in)
2. FAMILY
3. WORK

In this area, "I did not do what I preached". I had the priority in a different order.

Family will always be there in good and bad times. Work might be there in good times, but when bad times . . . (the social contract between worker and employer has changed dramatically over the last few decades).

Times change. People are renewed. I am one of those. I now follow my own advice that I have been giving to so many people. I have made decisions that put family first (this week example, I wanted to walk my sons to the bus stop on their first day of school but a meeting was set up in another state . . . I moved the meeting . . . I would have not done that in the past, I was addicted to work).

Am I perfect? No.

However, I am making positive strides. I have a better relationship with my family. I work around family priorities much more than I "family" around work priorities. The other benefit is that I feel less stressed, my blood pressure has never been better, cholesterol count is below normal, my heartbeat was registered at 39 beats a minute (I know all of these as I recently had to visit a doctor for new life insurance policy). My new role has provided the flexibility to make this happen and I appreciate the opportunity to my personal needs. I know some do not have that flexibility but try your best (with telecommuting, etc, it might be easier than you think) . . . it has made a positive difference in my life, too bad I did not follow my own advice years ago.

Try Family, you might feel better overall (and end up having a better and happier life)!

Co-opetition

2008-08-25T19:12:00.000-07:00

Can you be #1 in every business line and all segments?

It is very difficult to do. You have limited resources and other competitors might have a head start or some level of strategic control. In addition, in these times, disruptive technology can make it difficult on the industry leaders, i.e., it is hard enough to stay ahead of the competition in the markets you are strong.

This is why some successful firms are turning to co-opetition whereby do you really need to be #1 at everything or is a better strategy to partner with someone who can serve a niche that is difficult for you to penetrate. The surprising thing is that more and more partners are actually competitors. Oh no, dog and cats living together, no way!

I have always had a view that when it makes business sense it might be the right decision to partner with a competitor. Yes, this means conceding a segment but they might just be better at that segment. Following this strategy, it could prevent additional competitors from entering the marketplace. If the partnership works well and best interest for the shareholders, co-opetition could lead to a merger down the line

Instead of fighting an uphill battle in a particular marketplace, you may want to partner with a competitor and then place your resources on areas that have a higher possibility of return and specific areas of strategic control (you have a captured customer based). Remember, don't continue to beat her head against the wall if there is a door a few steps away. Some times, your enemy could be your best friend.

First Day

2008-08-25T05:43:00.000-07:00

Today was my sons' first day of school. As expected, they were nervous, new teacher, new classmates, new school room, etc. Walking them to the bus stop this morning, I was nervous for them (why is it that we get nervous for them? it is because we think back to our first day of school?).

Several times in my career, I was hired into a leadership role from the outside when I did not know much about the staff. Those first days were the toughest of my career. First days are stressful anyway, but be in a new role in a leadership capacity adds to that stress. You show up and every one and every thing is new (feeling out of the element), but you are the one "in charge". While some staff will be looking for a sign of brillance in the first hour, others will be questioning why we hired this person in the first place.

Here are some learnings from my "first day" experiences:

1. Recognize the First day is only one day and its a long road.
2. Take your Time; You do not need to know everything and everyone the first day
3. Be Yourself; this is what got you into this position in the first place
4. Take Charge; send a signal that you are the new leader whether by a staff meeting, quick conference call outlining what your overall plan is for the next few months
5. Communicate; Set the foundation for what you want to have done during the first 90 days

I advised my sons with the first three (did not think they needed a 90 day plan) and told them to take a deep breathe and all will be fine. However, as the bus drove away, I still had those butterflies in my stomach and hoping their first day goes well!

Joke of the Weekend XVIII

2008-08-23T07:03:00.000-07:00

My boss...

1. My Boss has learned to be cautious. Failure taught him that.
2. My Boss isn't a total failure. His Boss helped too.
3. If ever we need to simulate a problem, we invite my Boss to the meeting.
4. Normally we don't except sloppy work, but we make an exception for my Boss.
5. If my Boss was a energy plant, he'd be a 'power failure'.
6. As hard as it is to believe, my Boss has a will of his own. His attorney wrote it.
7. My Boss recently completed 'Excel for Dummies". Now, the rest of us are reading "The Dummy Unleashed."
8. My Boss returned from his evaluation looking very sad. He said "I can't figure out why my Boss hates me. I haven't done anything."
9. My Boss' business philosophy is "You can fool enough of the people some of the time."
10. My Boss doesn't mind work. Its thinking that scares him.
11. Comments on the first day from my new Boss "Over the years I've trained 3 people who eventually became my Boss. I guarantee that's not going to happen to you."
12. My Boss canceled the weekly status meetings on a project long overdue. She said "Every week its the same thing. Let's wait until something happens, before we meet again."
13. I interviewed with a company and then didn't hear back for over a month. I had written them off, and was surprised to get a phone call from my Boss-to-be, asking if I was still interested in the position. When I said, "yes," he said, "good, because our first two choices got better offers."
14. In their absence, management left my Boss in charge. They wanted to see the 'worst case scenario.'
15. My Boss recently joined my car pool. I now know, I can lead my Boss to work, but I can't make him think.
16. "Yes, I've read your proposal, but I can't support concepts before management's review." Typical political maneuvers by my Boss.
17. "I really love that spreadsheet. I did 10 what-ifs and I liked them all." Comment after seeing his pie-in-the-sky sales forecasts.
18. Management posted a flyer, on the employee bulletin board, supporting a $0.00/hr minimum wage. They claimed that even an employee earning $0.00/hr, benefits from the experience of work and the learning process. Frankly, I earn a salary and I don't see the benefit.

Compliments

2008-08-22T06:01:00.000-07:00

Compliments come from surprising places and sometimes those are the best.

As I mentioned in an earlier posting, I was teaching Statistics this week (it is a two day course on basics of statistics but includes applied regression analysis and modeling) I teach this course three times a year and have been doing this for 18 years (yikes, long time).

There was a 22 year-old student who just graduated from university in June and just started working for an organization's HR department (in compensation). Usually, the students in this class are older and have been out of university for some time. At the end of the course, she approached me and said "you would make a great professor" and we had a good discussion for a few minutes on why, etc. (it was relevant because I would like to teach more regularly in a college or university setting in the future). I have to tell you, as I was leaving, I felt really good about that compliment even got a few butterflies in my stomach (maybe she was just being nice, who knows), but it gave me such a lift after an interesting week.

My point to this posting is that the smallest compliments (from unexpected places) can go a long way. As leaders, it is easy to forget how a few nice words can impact people or a pat on the back. As for those future leaders, remember that those in leadership positions also like those compliments (if deserved, but dont overdo it, dont want to be known as a brown-noser). Compliments are not expensive, they don't directly affect the P&L statement, but they do have a powerful impact on those receiving them! Use them, but use them wisely.

Thanks for reading this blog!

Weird Week

2008-08-21T03:34:00.000-07:00

You know those people who have only two speeds, neutral and sixth gear . . . well, I am one of those. Due to that or lots going on, I have had one of those weeks. We all have them . . .

1. Earlier this week, I leave my laptop in my hotel room. Yes, leave my laptop which has everything on it that I need to survive on an island! I am at the business meeting and realize my laptop is not in briefcase (yes, I have checked out). Luckily, I called the hotel and they got the laptop. With limited time between end of the meeting and the flight, I rushed to the hotel and sped on way to airport to catch my flight in time. Obviously, I had too much going on in my head to realize that my laptop was left in plain site on the table. Yikes.

2. I leave my blackberry on a plane. I know . . . I know . . . but it was a long taxi (plane taxi that is) ride to the gate and reviewed all my messages and then placed into the seat pocket and just plain forgot. Luckily, I had not made it to baggage claim when I realized and ran back to gate to get my blackberry (as the flight attendants were just leaving the plane). The time was midnight so it would have been tough to track someone down if I had realized a little later.

3. I am teaching a two-day statistics course in Boston this week. I put on my shirt and as I button up my shirt, not just one but two buttons break (I need to find a new cleaners as this happens way to often, well, one button usually breaks). No worries, I am wearing a tie so that will cover it up . . . little do I realize throughout the class (which I am standing 95% of the time), my shirt wants to continually be wide open (the broken buttons were next to each other). So, here I am looking like becoming incredible hulk (but the only thing expanding on me is my waist). I end up using a safety pin (after poking myself once, so much for safety).

What does this all mean(and its only thursday morning), not sure, rather get these things out of the way at once? However, I must say, while weird, there was a positive resolution to all of them. So, if you find something not going your way, try to look at the silver lining (i.e., the positive), and just laugh it off, life is way to short. At least in these cases, no harm was done and if you really think about, all of those are easily replaceable.

Hope your week is going better!

Talent shortage

2008-08-20T03:02:00.000-07:00

There will be a talent shortage, not a people shortage but a talent shortage (people with the right skills at the right time at the right location). There are many consequences of this shortage but I would like to address two of them. As a leader, it will be your main responsibility to ensure that retention is at the highest rate possible as you cannot afford to lose the talent you have. We are in a knowledge economy and you cannot let your intellectual capital walk out the door. Here are three ways to help retention (remember one of the most critical factors in people leaving is their relationship with their supervisor).

1. Inspire your team with a clear vision and mission for the business

2. Innovate around talent issues, think outside of the box, be different. Keeping the knowledge workers who might be retiring will be key (so think how you can provide some interesting avenues that these retiring workers can "ease" into retirement, so often, retirement is immediate and ends)

3. Develop staff by ensuring that you put into place trainings, seminars, mentoring programs (and don't cut these at the first sign of financial distress).

Now, on another note, for those that are in the HR field, talent shortage is positive news. When I meet with organizational heads, their most critical business issue is understanding their talent issues and future workforce planning needs. They are information rich, but intelligence poor, i.e., they have a tremendous amount of information on their staff but it is not aggregated which cannot provide insight. As an HR professional, you can be the true business partner that can have an impact on the business results. A firm that can help the organizational heads and HR professionals identify talent issues proactively and provide impactful insights will be very successful one.

Here is a quick blurb on the talent shortage.

Talent Shortage Looming
With baby boomers poised to retire, employers need to start planning for the future, experts say.

By: Ana Patricia
http://www.inc.com/news/articles/2008/08/retirement.html?partner=rss

Employers need to start planning for a looming workplace talent shortage as legions of baby boomers approach retirement, according to the Life Options Institute, a New York-based retirement planning group.

"The coming talent shortage may force employers to overcome their age bias and introduce new opportunities with which to utilize this powerful asset," Joan Strewler-Carter, the group's co-founder said in a statement.

That includes encouraging retirement-age workers to remain on staff on a part-time basis to help train new employees, Strewler-Carter said. She cited a Merrill Lynch Retirement Study released in 2006 that found a growing number of baby boomers were willing to work past retirement.

Baby boomers are currently the fastest-growing segment of the U.S. labor force, according to the Labor Department. By 2014, about 20 percent of the workforce will be made up of workers over 65, estimates show.

Among other challenges, Strewler-Carter said employers will have to learn to adapt to the different needs of working retirees in the years ahead.

Integrity

2008-08-19T04:55:00.000-07:00

Several years ago, I was interviewed by an MBA student about the core success value of a good leader. I immediately replied "integrity". Integrity has many attributes, e.g., honesty, trust, making consistent and fair decisions, etc.

This is the definition of integrity on dictionary.com:

in·teg·ri·ty Audio Help /ɪnˈtɛgrɪti/ Pronunciation Key - Show Spelled Pronunciation[in-teg-ri-tee] Pronunciation Key - Show IPA Pronunciation
–noun
1. adherence to moral and ethical principles; soundness of moral character; honesty.
2. the state of being whole, entire, or undiminished: to preserve the integrity of the empire.
3. a sound, unimpaired, or perfect condition: the integrity of a ship's hull.

Everything starts with integrity! Leaders without integrity might be able to achieve short term success, but not a long term sustainable and successful business.

Inspirational Leadership

2008-08-18T07:00:00.000-07:00

All of us have managers, but have you had an inspirational leader before? I have and their are certain qualities that make them an inspirational leader. As a leader, are wanting to be just a manager or a leader that inspires your team to achieve extraordinary success? I found these ten roles of an inspirational leader; many of these roles I have discussed on previous postings. Do you inspire? Does your manager inspire?

Why Inspirational Leadership?
By: Vadim Kotelnikov
Inventor and Founder
Ten3 Business e-Coach

http://1000advices.com/guru/leadership_inspirational_10roles_vk.html

Do you want to encourage extraordinary performance from your people? Do you want them to do great things?

If yes, then you must create an inspiring corporate culture that inspires, empowers and energizes them.

People do what they have to do for a manager, they do their best for an inspirational leader.

To inspire, you must both create resonance and move people with a compelling vision. You must embody what you ask of others, and be able to articulate a shared vision in a way that inspires others to act. You must offer a sense of common purpose beyond the day-to-day tasks, making work exciting, advises Steve Farber.

10 Roles of an Inspirational Leader

1. Provide an inspiring vision and strategic alignment, launch a crusade

2. Help people connect their personal goals to business goals

3. Make relentless innovation a religion

4. Encourage entrepreneurial creativity and experimentation

5. Involve everyone, empower and trust employees

6. Coach and train your people to greatness

7. Build teams and promote and teamwork, leverage diversity

8. Motivate, inspire and energize people, recognize achievements

9. Encourage risk taking

10. Make business fun

Joke of the Weekend XVII

2008-08-16T06:14:00.000-07:00

When I take a long time I'm slow
When my boss takes a long time he's thorough

When I don't do it I'm lazy
When my boss doesn't do it he's busy

When I make a mistake, I'm an idiot.
When my boss makes a mistake, he's only human.

When I do something without being told, I'm overstepping my authority
When my boss does the same, that's initiative

When I take a stand, I'm being bull-headed
When my boss does it, he's being firm.

When I overlooked a rule of etiquette, I'm being rude
When my boss skips a few rules, he's being original

When I'm out of the office, I'm wandering around
When my boss is out of the office, he's on business

When I'm on a day off sick, I'm always sick
When your boss is a day off sick, he must be very ill

When I apply for leave, I must be going for an interview
When my boss applies for leave, it's because he's overworked

When I please my boss I'm crawling
When my boss pleases his boss, he's co-operating

When I do good, my boss never remembers
When I do wrong, my boss never forgets........

Years Go By

2008-08-15T07:38:00.000-07:00

I am old. I don't feel old, but I am (although age is a relative thing). This is a good thing! I have "experience".

As many of the readers know, I have two sets of children: Two daughters who are attending university, and two sons that are in elementary school. Last week, I met with my oldest daughter (she will be a senior, woo hoo, no more tuition payments) and we had a couple of glasses of wine. It was a great time, we just talked and talked.

Last night, I spent a dinner and show with my youngest daughter and her friends. Again, we had a wonderful time. My cheeks are still hurting from constant laughter.

As I was running today, I thought about my little girls are no longer little and are real adults (yes, guess I am slow). Where did all those years go? Time should does fly by (and for some reason each year goes by faster, what's up with that?)

The point to the blog, as leaders, don't forget what is important to you! You can balance work and family, but you have to "work" at it.

Think About It

2008-08-14T07:47:00.000-07:00

I have shared a few quotes on this blog. Consequently, several people emailed a few quotes. ust remember, some of the funniest quotes are not by famous people but your friends, colleagues, or families (I know I have tons and they still crack me up when I think about them). My favorite is the first one.

Some cause happiness wherever they go, others whenever they go.
Oscar Wilde

Character is that which can do without success
Ralph Waldo Emerson

In Aristotelian terms, the good leader must have ethos, pathos and logos. The ethos is his moral character, the source of his ability to persuade. The pathos is his ability to touch feelings, to move people emotionally. The logos is his ability to give solid reasons for an action, to move people intellectually.
Mortimer Adler

No one can possibly achieve any real and lasting success or "get rich" in business by being a conformist.
J Paul Getty

To be great is to be misunderstood
Ralph Waldo Emerson

Get out of the Way!

2008-08-13T10:00:00.000-07:00

It happened to Steven Jobs (although he has returned). . . and many others. An entrepreneur builds a business from scratch, drives growth and then . . . . At some point in time, the entrepreneur needs to hire an Operations-oriented leader to drive the business to the next level. The startup business is no longer in startup mode but a viable unit. The skill set needed for building the initial business is very different than operating a growth business. The leader needs to delegate responsibility, listen to your staff, operationalize decision making and sometimes, get out of the way!

Here is an article from Forbes.com on the topic.

Getting To The Next Level
Nice Little Business--Now Get Out Of The Way
Dale Buss

Business is starting to take off, and beyond the window is nothing but blue sky. Just one problem: you. Despite what your ego says, you probably aren't capable of piloting your small business to the next level.

That's why Stephen Lowit, co-founder of iSymmetry, handed the controls to someone who could. Back in 2005, after six years in business, the Alpharetta, Ga.-based IT-services firm had plateaued at about $20 million in revenues. That's when Lowit and his three partners, all family members, brought Bruce Culbert, a former senior executive at BearingPoint (nyse: BE - news - people ) and Salesforce.com (nyse: CRM - news - people ), on board--first as a consultant, then later as chief executive. Culbert, they believed, had the management chops to catapult the company to the $100 million mark.

Sure enough, Culbert shook up iSymmetry's organizational structure, eliminated redundant roles and focused Lowit on what he did best: dealmaking. "Now we have an outside shot at smashing $40 million in revenues already this year," says Lowit. "And that's just within 18 months."

In stepping aside, Lowit has plenty of illustrious company. Take Howard Schultz, founder of the now ubiquitous Starbucks (nasdaq: SBUX - news - people ) coffee chain. After an already scorching run, in 2000 Schultz handed the reins to Orin Smith, who managed to more than triple the number of locations to 8,500 before retiring in 2005. Web-auctioneer eBay (nasdaq: EBAY - news - people ) was ready for a public offering just three years after it launched in 1995, yet founder Pierre Omidyar was smart enough to know he couldn't take the company through the IPO and beyond. Enter CEO Meg Whitman, a Hasbro (nyse: HAS - news - people ) general manager who never even heard of eBay but who knew how to manage for growth. EBay's current market cap: $45 billion. And then there's Herb Kelleher, co-founder of Southwest Airlines (nyse: LUV - news - people ). After battling regulators to establish an industry iconoclast, Kelleher in 1978 installed Howard Putman, who tripled Southwest's revenues and profits in three years.

"Most entrepreneurs end up being in their own way, being stubborn and ignorant, not knowing what to do or what they don't know," says Murray Smith, founder of OneCoach, a Toronto-based consultant to start-ups.

Indeed, letting go is something that many entrepreneurs--often a controlling, egocentric lot--find hard to accept. "The biggest mistake founders often make is that they see their company as a way of getting in charge," says serial entrepreneur Treb Ryan, founder of OpSource, a Santa Clara, Calif., manufacturing-software outfit. "If you just want to be in charge, get an MBA and work your way up through an organization."

Then there's that whole nagging feeling of parental attachment. Last month, Adam Bold, founder of the Mutual Fund Store, an Overland Park, Kan.-based investment-advisory firm with 54 offices nationwide, turned the keys over to David Byers, a senior manager at H&R Block (nyse: HRB - news - people ). While Bold knew that stepping aside was the smart move if he ever wanted his firm to join the ranks of Fidelity and Merrill Lynch (nyse: MER - news - people ), he admits letting go was tough: "[The company] was my baby," he says. "I nurtured this thing from the very beginning."

Tougher still is finding good help. Of course you want someone with proven experience in managing growing companies, preferably those in your industry, but where to find those people?

Dave Driggers, founder of Verari Systems, a San Diego-based computer solutions firm, went shopping among the members of his advisory board. In order to take his $100 million (sales) company to $250 million, he knew he needed leadership in two key areas: sales-channel development and service support. David Wright, former chief of Amdahl, a supercomputer company, had joined Verari's board in late 2005 and had loads of marketing experience. By mid-2006, Wright became chief executive. The other comforting thing about the appointment, says Driggers: "It would have been much tougher to hand it over if David weren't already connected to the company."

The final challenge when stepping aside: Where do you go?

John Frank--founder of MetaCarta, which sells geographic search software--went back to what he did best: technology. After hiring a new chief executive in 2003, Frank got out of management completely and plunged back into improving the company's mapping solutions. He also enrolled in graduate school and worked out of a field office in Washington State, far from the headquarters in Cambridge, Mass.

"If you don't find some way to step out deliberately, you can't emotionally let go," Frank says. "The thing to figure out is which decisions I still really have to be there for."

Enthusiasm

2008-08-12T06:24:00.000-07:00

Enthusiasm is key to success of anything you do (whether leading a business, accomplishing a project, playing a sports match, teaching an education event, etc.). If you are not liking what you are doing (i.e, nonchalant), I am sure you will not reach optimality. When I have hired, I prefer hiring enthusiastic people even over a smarter or more skilled individual. When I want to be on a team, I want to join a team that has the most enthusiasm. You know those enthusiastic people, they are the ones that you want to report to or ones where you want to join their lunch table.

To do something at your best, you need to be enthusiastic! So, jump in with both feet, be passionate and have fun.

I found this quote by Edward Butler:

"Every person is enthusiastic at times. One person has enthusiasm for thirty minutes - another person has it for thirty days, but it is the person who has it for thirty years who makes a success in life."

Growing from $25MM to $100MM

2008-08-10T12:15:00.000-07:00

As I review the landscape for acquisitions at varying size ranges, I find organizations around $15MM to $25MM are interesting because they have achieved an impressive revenue level, have a good management team that knows the business, have scale, but have sometimes "topped" out and need some new ways of thinking to take to the next level. If you want to take a business from $25MM to $100MM, you need to think differently. Here are a few tips from Forbes Online.

http://www.forbes.com/entrepreneurs/2007/05/02/caliper-intuit-microsoft-ent-manage-cx_mc_0503growthtips.html?feed=rss_entrepreneurs

1. Embrace the identity crisis. Chances are you've already experimented with multiple product lines, price points and the like. But getting to $100 million means really having to think broadly about what businesses you're in--and be willing to cut loose underperforming lines and reinvest in stronger ones. "That's a big switch from early-stage companies, where it was about laser, single-minded focus," says Highland Capital's Maeder.

2. Ante up. Old-fashioned economies of scale (and lots of hard work) may have been enough to hoist you to double-digit revenues. To hit triple digits, chances are you're going to have to risk some serious capital--on equipment, real estate, marketing, whatever it takes. When Guernsey made the leap, he cringed at borrowing up to $8 million for extra storage space, delivery vans, tractor trailers and other distribution capabilities. "What I borrowed far exceeded my net worth," he admits. "It was scary, but we needed a new level of sophistication to serve larger customers in order to grow." Note: Scaring up that capital means having a clear vision for how you plan to put it to use; without that, don't bother asking.

3. Go public. The investment to get to $100 million in sales may be far greater than either the cash generated by your business or what your lenders are willing to put on the line. One solution: selling shares to the public. Such financing comes at a price, however, so think long and hard before you decide.

4. Get global. Few will argue that being able to compete these days requires an international strategy--and not just because of cheap labor in places like China, India and Vietnam. Emerging markets are also a wellspring of consumer demand.

5. Take a hard look at management--again. Some people are start-up managers, others are later-stage managers and still others have the ability to think globally. By the time your company has reached $25 million in sales, it may be time to reevaluate the team. (That goes for your advisory board, too.)

Joke of the Weekend XVI

2008-08-09T07:32:00.001-07:00

Ten great reasons to go to work naked

10. No-one ever steals your chair.
9. Gives "bad hair day" a whole new meaning.
8. Diverts attention from the fact that you also came to work drunk.
7. People stop stealing your pens after they've seen where you keep them.
6. You want to see if it's like the dream.
5. To stop those creepy programmer guys from looking down your blouse.
4. "I'd love to chip in... but I left my wallet in my pants."
3. It's an inventive way to finally meet that 'special' person in Human Resources.
2. You can take advantage of your computer monitor radiation to work on your tan.

And ... drum roll ... the Number One reason to go to work naked :

1. Your boss will never say, "I wanna see your ass in here by 8:00!" ever again.

Organize to Innovate

2008-08-08T05:19:00.001-07:00

Continuous improvement is no longer the name of the game for growth. Continuous Innovation is ... if you do not have an innovation agenda, the competition, especially new entrants will pass you by. You will see small changes at first, lower growth than previously, losing larger clients, turnover of key staff . . . I believe that innovation needs to be an integral part of the culture of an organization. As a Leader, you want to create an environment where you allow people to push the envelope (including allowing people to make mistakes, and that's okay) of new ideas, business models, products. I have heard leaders say "we want to innovate", but without action they become empty words. You must implement organizational changes and take actions that demonstrate and showcase that you back up your words you want innovation.

The following is a short excerpt from the recently released book, The Innovator's Guide to Growth by Scott D. Anthony, president of Innosight, Mark W. Johnson, chairman and co-founder of Innosight, Joseph V. Sinfield, a partner at Innosight, and Elizabeth J. Altman, a vice president of strategy and business development at Motorola. It is an excellent book if you really want to be a growth business.

http://www.forbes.com/leadership/2008/07/21/innovation-engine-procterandgamble_leadership_clayton_in_sa_0722claytonchristensen_inl.html

Rev Up Your Innovation Engine
The Innovator's Guide to Growth

“Organizing to innovate” is no small task. It goes beyond providing one team with resources and autonomy to pursue a specific idea. It is about creating an environment in which carefully chosen resources can reliably examine, prioritize and develop an array of new growth opportunities.

It is also important to note that “organizing to innovate” is different from “organizing for research and development.” Innovation goes beyond research and development. A properly structured innovation engine considers new business models, creative financing approaches, unique partnership strategies and, of course, more traditional technology levers.

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There are innumerable ways to organize to innovate. At one extreme you have Procter & Gamble's (nyse: PG - news - people ) FutureWorks division, a fully staffed team that is chartered with identifying, developing and seeding new growth platforms for the corporation. At the other extreme, you have the Learning & Development unit within agrochemical giant Syngenta (nyse: SYT - news - people ). The small unit’s goal is to build the innovative and leadership qualities of the company’s executives and managers. Large companies oftentimes--appropriately--have multiple innovation structures working simultaneously.

Our belief is that there is no one-size-fits-all way to organize for innovation. Rather, in order to pick the most appropriate structure (or structures), companies need to assess the strategic goals of their innovation structure and the degree to which active management is required to achieve those goals.

Picking a Strategic Goal

The mission of an innovation unit may encompass all, or only a piece of, the overall innovation activity in a company. Some units simply enhance the “innovative mindset” of an organization. Others seed the broader organization with good ideas. Still others drive the organization’s growth and profitability. In essence, however, senior management can choose to pursue one of four fundamental goals.

1. Stimulate innovation by broadening awareness and building skills. Companies that choose this path typically believe that their organization has the right basic infrastructure to support innovation. However, they believe that managers and teams need help solving practical innovation problems, developing new mindsets or gaining exposure to important external developments.

2. Shepherd innovation by championing innovation efforts and removing obstacles that would otherwise limit the potential for innovative ideas to succeed. This is a more hands-on approach that helps to nurture and safeguard innovative efforts but still relies on the rank and file to drive individual initiatives.

3. Spearhead innovation by providing the resources and environment to take ideas from concept to commercialization. This more resource-intensive approach seeks to build new growth initiatives. Companies that follow this approach generally believe that “business as usual” won’t allow them to meet their innovation objectives.

4. Source innovation by borrowing, acquiring or participating in innovative efforts outside the organization. Companies that choose this path do so because they wish to participate in innovative efforts well outside of their core, see little promise of internal innovation or are looking for ways to augment internal efforts without distracting the core.

Social Networking and Business

2008-08-07T05:18:00.000-07:00

Many of us are using LinkedIN, Facebook, etc. but how can you use this as a business opportunity. Web 2.0 is growing in interest for businesses (e.g., social networking, collaboration). I found this article on the Business Week site. As a leader, these sites can connect you with other leaders, prospects and customers. Social networking is new and I recommend trying it as you never know who you might just meet or re-engage a previous colleague.

Are Social Networking Sites Useful for Business?
To get the most out of social networking sites, small companies should look past the hype, set concrete business goals, then start experimenting
by Karen E. Klein

Social networking online seems to be exploding: Facebook, LinkedIn, Twitter, Digg, and so on. When I ask how these sites can help my business, the answers can be vague. I am trying to relate it to face-to-face networking, which includes sharing ideas, information, and resources with other businesses. Are these sites useful for those goals? There is only so much time in my day and I need to use it effectively. —B.H., Scarborough, Me.

You are correct that social networking is a rapidly growing, headline-grabbing phenomenon. The question for entrepreneurs is how to tap into this trend as a business opportunity, rather than simply a way to connect—or reconnect—with people, says Peter Delgrosso, strategic vice-president for corporate communications with Web.com (WWWW).

"For the most part, these social networking sites should be viewed as complementary to your online presence. Think of it as a nice-to-have, not a must-have," he says. "When used properly, it is something that can gain your business some attention. However, you need to realize it shouldn't be seen as a replacement to your traditional online presence."

Greg Sterling, of Sterling Market Intelligence, considers social network sites primarily for meeting people, asking for advice or referrals and, carefully, doing online marketing. The uses vary by application or site, he notes: "Sites such as LinkedIn can be helpful in connecting with people you want to meet for one reason or another. Twitter and Facebook can be helpful when you're trying to notify a group of people about something you want to promote or about a happening of some kind."

Find Your Networking Niche
Take a few minutes—it doesn't have to be extensive—to look over the top sites and experiment to see what works for you. Even an hour or two a week can help you figure out which sites you like best and are most effective for your particular business. "The viral nature of social networking is quite extraordinary and something that can garner a lot of attention to your efforts in a hurry," Delgrosso says.

He thinks the best site for both networking and human resources purposes is LinkedIn. "The site requires some résumé creation, then offers the opportunity to link in to other like-minded professionals. When used selectively, it can be a very powerful tool for identifying new business partners, new employees, or simply building your personal or business presence," he says.

For gaining exposure to larger audiences, he recommends Facebook: "Consider establishing or joining a network on Facebook based on your business or industry category to tap into people's affinity for the topic. By doing this, you'll cut through the clutter and clearly establish your niche, keeping the interaction focused on the specific subject matter."

Rick Julian, CEO and chief creative officer of Quo Vadis, a startup brand communications agency, says he's getting a positive return on his investment from using social media sites for the past year. "It puts a human face on your business and allows people to get an impression of what a relationship with you would be like. When all things remain equal, people want to work with people they think they'll have an interesting relationship with," Julian says.

His firm is represented on five major social networking sites, including YouTube (GOOG) and his blog, and a couple of smaller ones.

"Geometric Extension" and Search Optimization
It sounds like a full-time job, but Julian points out that you can cut and paste some of your content from site to site. "If I put up a YouTube video to create awareness, I might have some discussion on YouTube with the responders and then also put it on my blog, on my Facebook company page, and promote a link to it on Twitter. Just by generating that single asset, I've populated all those networks with content without having to come up with an original piece of content for each of them. There's a geometric extension of your reach," he says.

Robert Jenson, CEO of the Las Vegas-based realty firm the Jenson Group, takes a strictly corporate approach to social networking. "Rather than blogging stream-of-consciousness opinions or using the venue as a diary of sorts, I educate visitors on important, universal industry matters. I try my utmost to ensure the content I post is not just applicable and of interest to those in Las Vegas, where I operate, but also to any real estate consumer nationwide," he says.

He puts bylined articles he's written on his own blog and on social networking sites and uses them to establish his credibility as a real estate expert. "This serves as a 'risk reliever' for both prospective consumers and business affiliates, while also increasing my chances for media coverage by establishing myself as a reliable expert source," Jenson says.

Last, but definitely not least, is the value of social networking sites to search engine optimization (BusinessWeek, 6/20/08). The more sites that include your name and link back to your Web site or blog, the higher your profile rises in search engines, where more and more of your customers are likely to find you, Jenson says.