Leadership: The Blog

The Age of Credibility Has Just Moved Farther Away

2009-12-10T11:03:00.000-08:00

Tiger Woods does not have a credibility and image problem, you and I do. And, I will tell you why. Tiger Woods' transgressions have just made it that much more difficult for your kids, your spouse, your family, your employees, your customers, your teammates and your friends to believe anything (yes, anything) you say or do.

Do you believe what your boss says? Do you believe that the troop increase in Afghanistan will liberate that country? Will President Obama's health care reform package bring our health care system back to health? Is the earth warming or cooling?

Do your customers believe in you and your product? Do you wonder why so few people support your viewpont?

O.K., you say, perhaps the current economic crisis stems from a lack of trust and crediblity in our bankers and our financial systems. Perhaps our country's lack of support for health care reform has to do with our inability to sacrifice or risk anything to gain anything. O.K., perhaps the hunt for weapons of mass destruction was a little hard to swallow. Perhaps Bernie Madoff's ponzi tricks had nothing to do with you. And, OK, David Letterman and the interns, the Governors and their mistresses were beyond comprehension, but really nothing to worry about. And, maybe since the 1950s, when credibility started to erode (rock and roll's rebellion, Kennedy Assassination cover-up and conspiracy theories, Vietnam, etc....) we have been on a downhill slide. So, why should we believe politicians and celebrities? But, you and me? Are we not credible?

What does this have to do with you and me? Well, seeing how Tiger Woods was the most respected athlete of our generation (particularly after seeing Michael Jordan's meltdown at his Hall of Fame speech) and has had so much written about his squeaky clean image, mental toughness and lifestyle, it is understandable to feel betrayal and feel a little foolish. Maybe I shouldn't buy a Buick, or that shirt with the Nike swoosh, or Gatorade (or is it Powerade?). But, how has this made my life harder?

I believe that it just got that much harder to sell anything to anyone.

Just try to persuade, influence or convince somebody about your viewpoint. How hard is it? How much push back do you get? How much hostility do you feel from others? Where is the love?

Why is this about my credibility and yours?

Do you want more proof?

According to Deborah Tannen, the author of The Argument Culture", we have been moving towards this for a while. Other authors have documented the dumbing down of America. The decisions that Tiger Woods made recently have taken this process to the ultimate level.

Massive scientific evidence for global climate change has been disabled, discredited and rendered powerless. The plot for the attacks of 9/11 were uncovered, but ignored. The mortgage crisis and subsequent economic meltdown were predicted, but no one took heed. Your mortgage was safe, or so you thought.

At the other end of the spectrum, political candidates like Sarah Palin have taken fluffy resumes and fluffier brains, and become Presidential material.

In this new world order, everything is believable, but nothing is believed in. No one is to be trusted.

So, think again, why should you and your message carry any weight? It doesn't. Every meeting you attend, everything you propose or plan is questioned, criticized and, ultimately rejected.

Unless, your personal agenda closely matches someone else's personal agenda, it is dead meat. Only then, when you match another's agenda, will you gain a supporter. It isn't about the message or the evidence or about what is best for the community in the long-run, it is about extreme self-interest.

And, self-interest in the extreme, is not credible. There you have it, that is the credibility problem in a nutshell. And, that, my friends will be the topic of my next blog.

What do you think? Are you credible? Does your organization have a credibility problem? Think about it, does Tiger Woods have a problem or do we?

For more on leadership, click on The Handbook of Leadership.

2009-09-23T11:50:00.001-07:00

marshal sandler .com : Before, After and After........... (http://ping.fm/c9WgE)

2009-09-18T15:32:00.001-07:00

America's Most Promising Companies from Forbes (http://www.forbes.com%2Fentrepreneurs%2Fpromising-companies%2F&urlhash=RZ3G&trk=news_discuss)

President Barack Obama Discusses Healthcare

2009-09-11T06:41:00.001-07:00

“We did not come to fear the future. We came here to shape it.”

--President Barack Obama, closing out his speech to the American people on healthcare reform and the need for change.

In his speech this week, President Obama was effective in presenting the facts and making a compelling case for healthcare reform. His appeal was bi-partisan in nature and was an attempt to repair the increasingly polarized political climate in Washington and throughout the country. He hopes to set aside party loyalties and post-election bitterness to do what is right for the country.

Chief Learning Officer magazine - Capturing Pearls of Wisdom

2009-08-25T13:10:00.001-07:00

Chief Learning Officer magazine - Capturing Pearls of Wisdom

Shared via AddThis

Lance Armstrong & Alberto Contador: Racing for the Team

2009-07-20T08:43:00.000-07:00

"If we ride into Paris with the yellow jersey in the team, I'm cool with that. I've got seven of them at home."

--Lance Armstrong, seven-time winner of the Tour de France and teammate of Alberto Contador on the Astana team.

VERBIER, Switzerland -- Alberto Contador, current leader in the Tour de France, distanced himself in Stage 15 from seven-time winner Lance Armstrong and a group of other rival contenders.

Contador, with the reputation as the best climber in the world, now holds the 2009 Tour lead by 1 minute, 37 seconds over teammate Armstrong, who acknowledged he couldn't keep up. Armstrong's performance kept him in second place overall.

"The differences now are pretty big," Contador said, "and the team's bet should now be me, no? I'm happy to have earned this jersey."

"We are ready to sacrifice everything to have Alberto in the yellow jersey in Paris: the teams standings and Lance's second place," Astana sports director Alain Gallopin told Reuters on Monday.

So, Lance Armstrong, cycling icon, with the handwriting on the wall sacrifices his individual goals to assist 2007 Tour winner Alberto Contador and the Astana team achieve their rightful glory.

Excerpts from ESPN.com and the New York Times, July 20, 2009.

For more on Peak Performance, click on The Handbook of Peak Performance.

2009-07-18T14:03:00.001-07:00

the tour is getting interesting.

The Neo/Post Economy: Information Age 3.0

2009-07-02T09:18:00.000-07:00

Malcolm Gladwell, Mark Cuban, Chris Anderson, Seth Godin, and Chris Brogan are talking interestingly about the idea of free. I would suggest that you read what they have to say about it. I am sure the conversation will continue.

In the new economy, which is still a long way from working itself out, things are shifting as we speak. It still has a long way to go. It has been broken badly and for a while. Smart people are discussing the value of free. Should the Internet be free? Should digital music be free? Should the news be free? Will customers start to pay for what they can get for free? Should providers give away what used to charge for?

Have you heard about the hamburger joint that gives its food away for free? All they ask is that you give them whatever you think is reasonable. Stiff them or leave them a ten. It works. They make as much or more that they would with fixed prices on their items. Most of the customers love them.

The saxophone player on the street corner hopes you put some coins in the cup. The waiter at your favorite watering hole hopes you like his service and tip him well. I heard Johnny Depp left a $4000 tip the other day. My dad, who was a small business owner, would often barter for goods and services when his customers couldn’t pay.

I am an entrepreneur, a CEO, a consultant, a small business owner. I blog frequently. I am LinkedIn. I do Facebook. I Tweet, Ning, Ping, and Xing. I get the whole social networking thing. I have a weekly newletter. I field phone calls, answer questions via e-mail, I comment on others’ blogs. I answer questions.

Through these activities I have the capacity to inspire, motivate, inform, solve problems, find solutions, identify hidden problems, move careers forward, help others make decisions, and provide new insights and opinions. I can keep a deal alive and kill it. Much of this I do for free (Mostly voluntarily, sometimes, not so much).

Yes, that’s right. I give lots of information, advice, and counsel away for free. I like it. It adds value. It develops and deepens relationships. It works. I get a lot of free lunches and dinners. And I get a lot of free coffee. Don’t get me wrong. I like it. And I will continue to do it, a lot.

When I am lucky, I get real business that way. I get hired. I get involved in projects, I provide services and products to my customers. I write proposals. I submit contracts. I have billable hours. I have fees. I send out invoices. I get paid for those things.

But in the Information Age and with the Economy 3.0, that sometimes isn’t enough. For many people in my shoes, it really isn’t enough. Sometimes there aren’t enough projects or enough billable hours. Much of my value is not easily billable. More troubling, much of what I do others do not see as billable. They seek me out. They see the value. They thank me. They say “I owe you one.” They say “I will try to bring you business.” I appreciate that so much. Sometimes the cash does not come with it.

What am I doing about it? What should I do? What should you do. Well, I am going to keep adding value, giving away information for free, and building deep relationships. Also, with my customers, clients, and valued relationships I am asking them for something in return. I am asking for them to keep my lights on and bills paid for a few days or a few weeks. Whatever they can afford, whatever they thing I am worth to keep in business.

You can call it what you want: donations, sponsorships, retainers, pay-per-click, pay-per-view, a service fee. I don’t care. I don’t think they will care. If they feel I add value, they will want to keep me going. They will want me available to them. They want my blog alive, they want my Facebook, my Tweet. They want to be LinkedIn with me. They will want me to send them my newletter. They will want to continue calling or e-mailing me. They will want me to have place to work, a fast computer, a smart phone, and a way to test the next new thing in my field or theirs. They will want my advise, my information, my counsel. I will be there for them. But I will need their support, their sponsorship. They will be there for me. I will thrive.

If I am lucky, I will be able to break even, stay in the black. If I am even luckier, I will be able to go to camp with the rest of the kids (actually my kids will get to go to camp). If I am really good, I will be able to put something in the bank for a rainy day.

And, that is the beginning of the new economy. Malcolm, Mark, Chris, Seth, Chris: There is free and there is value. It will all work.

Doh?! Geez, did I just give that away for free? If you liked the song, put your coins in the cup.

The New Economy: Source of Innovation and Creativity

2009-03-24T08:28:00.001-07:00

“The idea that so many people could move money around and make so many millions seemed economically unreasonable. Moving those people on to other pursuits is going to be much better for our economy.

“I see this as a recalibration. Economic crises are a source of great innovation. It forces people to apply themselves to do more to add to productivity.”

--Richard Florida, author of "The Rise of the Creative Class" and director of the Martin Prosperity Institute at the University of Toronto’s Rotman School of Management.

Florida says the expansion services in the past decade soaked up talent from other industries. The economic crisis will change things, perhaps, for the better.

IBM CEO looks to the future

2009-03-09T13:56:00.000-07:00

“The coming era will not be kind to enterprises or institutions that have failed to step up to unresolved issues in their core models, strategies or operations. In our view, this is not simply a cyclical downturn, but a major shift in the global economy and society.”

--Samuel Palmisano, IBM CEO, in a message to shareholders.

Leadership: Communicating a Vision and Defining a Result

2009-02-17T12:11:00.000-08:00

“I am not planning based on a one-day market reaction. In fact, you can argue that a lot of the problems we’re in have to do with everybody planning based on one-day market reactions, or three-month market reactions, and as a consequence nobody was taking the long view.
“My job is to help the country take the long view — to make sure that not only are we getting out of this immediate fix, but we’re not repeating the same cycle of bubble and bust over and over again; that we’re not having the same energy conversation 30 years from now that we had 30 years ago; that we’re not talking about the state of our schools in the exact same ways we were talking about them in the 1980s; and that at some point we say, ‘You know what? If we’re spending more money per-capita on health care than any nation on earth, then you’d think everybody would have coverage and we would see lower costs for average consumers, and we’d have better outcomes.’ ”

--Barack Obama, 2/13/2009.

Charting a course that we can follow, President Obama continues to remain calm, thoughtful, and focused in the face of a crisis and partisan criticism. President Obama, despite a lack of support from Republican senators, is set a course to get his stimulus package passed so that the country can begin to dig itself out of a deep recession. His strong leadership continues to be a model for the future.

For more about leadership go to the Handbook of Leadership: http://www.squidoo.com/valdes3.

Barack Obama: Building TEAM USA

2008-11-06T12:07:00.000-08:00

I have heard from many people, many of whom voted for John McCain (I do live in the red state of Georgia, you know), that are saying to Barack Obama some version of "I hope that you don't screw it up" or "I wonder if you are up for it." The real question is will we be willing to follow Barack Obama and get on the team.

If that is the task at hand (and there is little to suggest that it is not), then what Barack Obama has to do is show real leadership and succeed in building a great team. Not just an excellent Cabinet and group of advisors, but a team of involved citizens throughout our country.

So, what does Barack Obama have to do? What Inspiros International found several years ago is that great teams and organizations have these nine basic common characteristics in common:

1. An Icon: Barack is certainly that.

2. The Greatest Imaginable Challenge: pick 'em, the greatest global economic meltdown since the Great Depression, global warming, Al-Queda terrorism, the budget deficit, the trade deficit, health care costs and related issues, the energy crisis and our over-reliance on oil, the housing market, the US auto industry, etc.

3. Constant Renewal of the Challenge: the list of grade-A challenges will keep morphing and expanding, you can count on it. President-elect must keep us informed and in touch with reality. We must be willing to believe and hear him.

4. Continual Raising the Bar: Our president will have to understand that he must always be expecting more out of himself and those around him. We must be willing to respond in kind.

5. Passion: Unlike what George W. Bush did after 9/11, President-elect Obama must leverage the enthusiasm, the activism, sense of urgency and the energy that has been unleashed during this Presidential election campaign. We must keep it up.

6. Sense of Family: the sense of inclusion and global community that has brought Obama and the Democratic Party a historic victory, must continue be a high priority and a key component for this new administration to be successful. We must be willing to be part of a community, not a set of individuals with narrow selfish needs and interests.

7. Foster Innovation: with Obama's leadership and guidance, the US must regain its place as a center of innovation and cutting edge solutions that it has lost.

8. Commitment to Excellence: Barack must ensure that we regain our sense of pride and can-do resilience that has been missing for the last 8 years. We lift up our expectations and sense of trust.

9. Awareness of "The Zone:" President Obama must have an understanding that creating a performance zone, as in sports and athletics, is highly valuable. Creating a zone is to create the right organizational climate through establishing a sustainable culture of pride, excellence, innovation, success, and achievement in the community. The above mentioned important processes of inclusion and challenge must be maintained as well. He must lead by fostering an attitude of ownership, involvement and activism. The proper environment that promotes our core values, our ability of find meaning and purpose in our individual and, more importantly, our collective activities will keep alignment, motivation and self-initiative high. Creating a zone will allow us to regain our place in the eyes of the world community.

Ultimately, it is as much our responsibility to follow as it is President-elect Obams responsibility to lead.

How Did Barack Obama Win?

2008-11-05T14:01:00.000-08:00

A day after Barack Obama made history and took leadership of the free world, we must ask how did he do it? He basically embraced what all successful people do, The Peak Performance System:

1. Vision: Vision trumps everything. He wanted to bring people together and he did that by appealing to those that saw a larger mission in his campaign. "Yes we can" and "change the world" spoke to the world. "We are the United States of America" rang true. Obama catalyzed, inspired and created hope. That is the mark of a great vision.

2. Mental Mindset: Barack Obama maintained a positive, constructive, inclusive mindset throughout. His ability to be calm in times of chaos was reassuring to a majority of the America electorate.

3. Fast-forwarding: Obama was able to achieve maximum campaign flexibility by being able to anticipate. He identified barriers and found solutions. He saw the future, and used the internet and the social networking community as a tool to achieve his vision.

4. Game-plan: Obama successfully organized a great team and a great message, set a path, believed in it and did not waver. He organized a viral marketing machined based on people.

5. Deliberate practice: Obama made sure that his game-plan could be executed with practice, rehearsal, and tweaking.

6. Execution: He did not panic when things were not going his way and he stayed the course. Attacks on his religious beliefs and his associations with Rev. Wright and William Ayers did not change his strategy. He displayed a calm that made voters believe and want to belong.

7. Review: Barack Obama used his team to maintain a continuous feedback loop to learn minute-by-minute what was working and what wasn't. Obama refined and refined never losing sight of the vision.

Many people may conclude that this campaign broke new ground, but it also relied on the fundamental principles that all peak performers understand and use.

Choosing A President (revisited)

2008-11-03T14:21:00.001-08:00

For those who are still undecided and for those who insist on supporting and voting for John McCain:

In the business world, developing a competency model for the selection of a CEO is a best practice and standard operating procedure for many successful companies. If
we use a behavioral template as criteria for selecting a president, how would our presidential candidates compare? Read the characteristics below carefully and rate each of the candidates objectively. Though obviously open for discussion, I have rated the winner in each competency based on my observations of each in action. The Presidential Leadership Competencies are listed below:

VISIONING (- Advantage Obama)

Takes a long-term view and acts as a catalyst for change; builds a shared vision with others; influences others to translates vision into action; creates a compelling and inspirational picture of the future.

ACTS WITH INTEGRITY (- Advantage Obama)

Fosters high standards for ethical behavior; behaves in a fair and ethical manner towards others; demonstrates high political and professional standards; handles situations with integrity; viewed as highly trustworthy; stands up for what is right despite potential personal consequences; demonstrates consistency between words and
actions; honors commitments to others.

ACCOUNTABILITY(- Advantage Obama)

Holds self and others accountable for laws, policies, rules and responsibilities; can be relied upon to ensure that issues within areas of responsibility are completed in a relevant and timely manner and within budget; sets high standards for self and others; assigns clear
accountability backed by appropriate authority.

GETS RESULTS (- Advantage Obama)

Achieves strategic goals; delivers measurable results, on time and within budget; translate(s ideas into concrete actions; champions initiatives beyond the scope of one’s job; mobilizes resources and removes barriers for success; anticipates potential problems and
develops contingency plans to overcome them; works across political and organizational boundaries, avoiding turf issues, and eliminating unnecessary work to achieve the desired results; concentrates on outcomes rather than activities.

IDENTIFIES AND DEVELOPS TALENT (- Advantage Obama)

Inspires, fosters, and develops leadership in others through coaching, mentoring, rewarding and guiding those under him/her; develops successors and talent pools for key positions.

TAKES INITIATIVE/RISK-TAKING (- Advantage McCain)

Creates an environment that encourages creative thinking; designs and implements new or cutting-edge programs/processes; challenges the status quo; recognizes opportunities and takes action to achieve objectives; empowers others to take risks, supports them when things go wrong and encourages them to learn from set-backs and failures.

CHANGE MANAGEMENT (- Advantage Obama)

Understands process and issues inherent in change management and plans accordingly; instills confidence and trust in others; coordinates resources; evaluates measures, project plans and deliverables for
strategic alignment; acknowledges individual’s responses to change and helps them adjust; Adapts unit goals and work plans in response to internal and external forces that will impact the future effectiveness of the unit.

THINKING SKILLS (- Advantage Obama)

Identifies and integrates the critical elements of a situation, making correct inferences from data; breaks complex problems into component parts and organizes the parts in a systematic way; uses innovation to develop novel solutions; can explain to others how to understand and approach complicated problems.

POLITICAL ACUMEN(-Advantage: Obama)

Applies resources, constituency needs, and processes to make sound strategic and business decisions.

STRATEGIC THINKING AND PLANNING (- Advantage Obama)

Formulates effective strategies consistent with the needs of the nation; sees the big picture and holds a long-term perspective; determines objectives and sets priorities; anticipates potential threats or opportunities; aligns people to support organizational goals; drives the execution of strategic plans and monitors results.

MANAGES RESOURCES (- Advantage Obama)

Assesses current and future staffing needs based on organizational goals and budget realties; ensures staff are appropriately selected, developed, utilized, appraised and rewarded; readily shares resources
to support political initiatives; understands key financial indicators; uses cost-benefit thinking to set priorities; integrates technology into the workplace to improve effectiveness and efficiency; understands
the impact of technological changes on the organization.

PROFESSIONAL AND POLITICAL KNOWLEDGE (- Advantage Obama)

Continually enhances knowledge and skills to keep abreast of global developments and emerging issues; understands what it takes to be successful; has a thorough knowledge of the nation’s mission, history, and constituencies.

PROBLEM SOLVING/DECISION MAKING (- Advantage Obama)

Develops new insights into situations and applies innovative solutions to make improvements; exercises good judgment by making sound and well-informed decisions; is proactive; distinguishes between relevant and irrelevant information to make logical decisions; effectively analyzes potential for risk and acts decisively; makes
breakthrough decisions based upon a mixture of analysis, wisdom, experience and judgment; solicits input from individuals who can add significant value to the decision-making process. Cultivates effective relationships to create a culture that supports the national goals and strategy.

INFLUENCING SKILLS (- Advantage Obama)

Builds coalitions through give and take; gains cooperation from others to obtain information and accomplish goals; collaborates across boundaries; recognizes which battles are worth fighting for and when it is time to compromise; seeks to build internal and external partnerships to better accomplish goals; invites other points of view; anticipates the reactions and objections of others.

CONFLICT MANAGEMENT ( Advantage Obama)

Identifies and takes steps to prevent potential situations that could result in confrontations; manages and resolves conflicts and disagreements in a positive and constructive manner to minimize negative impacts.

LEVERAGES DIVERSITY (- Advantage Obama)

Recruits, develops and retains a diverse political base; leads and manages an inclusive environment that maximizes the talents of each person to achieve sound results; respects, understands, values and seeks out individual differences to achieve the vision and mission of
the organization.

TEAM BUILDING (- Advantage Obama)

Inspires and guides others toward goal accomplishments;
consistently develops and sustains cooperative working relationships; fosters commitment, team spirit, pride and trust; shares leadership and helps the team become interdependent by facilitating participation and
group interaction.

TREATS OTHERS WITH RESPECT (- Advantage Obama)

Considers and responds appropriately to the needs, feelings and capabilities of different people in different situations; is tactful, compassionate and sensitive; challenges others' ideas without getting
personal; follows through on commitments to others.

PRESENTS IDEAS EFFECTIVELY (- Advantage Obama)

Makes clear and convincing presentations to individuals and groups; listens effectively and clarifies information as needed; shares relevant information and expectations openly, honestly and in a timely fashion; targets presentations to the needs and level of the audience;
translates complex information into understandable, meaningful, relevant language. On-going development of skills and competencies to lead the nation.

TOLERANCE FOR AMBIGUITY (- Advantage Obama)

Takes changing priorities and new developments in stride, even in-the face of ambiguity; leads with a clear sense of priorities in a climate of uncertainty and change.

FLEXIBILITY (- Advantage Obama)

Is open to change and new information; adapts behavior and work methods in response to new information, technology, changing conditions or unexpected obstacles; adjusts rapidly to new situations warranting
attention and resolution.

SELF-KNOWLEDGE AND DEVELOPMENT (- Advantage Obama)

Recognizes own strengths and weaknesses; seeks feedback from others; extracts learning from failure.

LEARNS CONTINUOUSLY (- Advantage Obama)

Pursues self-development and opportunities to master new knowledge; applies new knowledge; embraces new and diverse ideas; shares learning broadly.

The last two elections were based on simple emotional and
subjective criteria such as: perceived likability; perceived stiffness; our comfort level having a beer with the candidates, our fear of an intellectually superior president, and our fear of changing administrations during wartime; or, just our need to identify with the person.

Let's be more substantive and objective this time. Let's set our leadership requirements and make a valid decision based on the candidates' ability to meet those requirements. We deserve nothing
less.

Innovation by USA on the Decline

2008-11-03T13:51:00.001-08:00

From the Enterprise Innovation Institute Blog

October 20, 2008
U.S. Innovation: On the Skids?

High-tech-indicators The economic downturn has focused renewed interest on U.S. economic competitiveness, including the role that research and development plays in international technological leadership. That has produced new visibility for the results of a long-term study of international competitiveness done by Georgia Tech's Technology Policy and Assessment Center.

The Center's newest study, which was released in January 2008, evaluated the "technological standing" of 33 countries and suggested that China will soon pass the United States in the critical ability to develop basic science and technology, turn those developments into products and services, and then market them to the world.

"The pattern is inexorable," says Alan Porter, one of the authors of the study. "China is coming up strongly, and it's in high-tech areas, not just cheap consumer goods." Porter is quoted in an article published October 20 in ComputerWorld. The January 2008 Georgia Tech news release on the study is available in the Georgia Tech News Room.

John Kotter on Crises and a Sense of Urgency

2008-10-09T06:44:00.000-07:00

John Kotter: A Sense of Urgency

Best evidence available today tells us that crises can be used to create true urgency if these principles are followed:

* Always think of crises as potential opportunities, and not only dreadful problems that automatically must be delegated to the damage control specialists. A crisis can be your friend.

* Never forget that crises do not automatically reduce complacency. If not monitored and handled well, burning platforms can be disastrous, leading to fear, anger, blame, and the energetic yet dysfunctional behavior associated with false urgency.

* To use a crisis to reduce complacency, make sure it is visible, unambiguous, related to real business problems, and significant enough that it cannot be solved with small, simple actions. Fight the impulse to minimize or hide bad news.

* To use a crisis to reduce complacency, be exceptionally proactive in assessing how people will react, in developing specific plans for action, and in implementing the plans swiftly.

* Plans and actions should always focus on others' hearts as much or more than their minds. Behaving with passion, conviction, optimism, urgency, and a steely determination will trump an analytically brilliant memo every time.

* If urgency is low, never patiently wait for a crisis (which may never come) to solve your problems. Bring the outside in. Act with urgency every day.

* If you are considering creating an urgency-raising crisis, take great care both because of the danger of losing control and because if people see you as manipulative and putting them at risk, they will (quite reasonably) react very badly.

* If you are at a middle or low level in an organization and see how a crisis can be used as an opportunity, identify and then work with an open-minded and approachable person in a more powerful position who can take the lead.

Certainly we need to be prudent. But in a more rapidly changing world, finding opportunities in crises probably reduces your overall risk.

To read more from the book: A Sense of Urgency, click on: http://hbswk.hbs.edu/item/5938.html

Young Leader: Devin Harris, NBA New York Nets

2008-10-02T06:30:00.000-07:00

"Being a leader is very, very hard for this reason: you have to be the same guy virtually every single day. When things are not going well for the team, when things aren't going well for you, when there's a heap of criticism upon you. So leading is tough. It's hard, but he's up for the challenge."

--Lawrence Frank, New York Nets head coach, on Devin Harris, 25, who averaged 15.4 points and 6.5 assists in 25 games with the Nets. He was traded from the Dallas Mavericks for Jason Kidd, all-star and Olympic gold medal winner.

"He is definitely capable and he's ready for it. You can just tell from his approach."

--Vince Carter, New York Nets, Harris' teammate.

Excerpts from the New York Times, September 28, 2008.

Leadership During Turbulence

2008-09-30T06:40:00.000-07:00

The economy is in peril. The fear is real. Uncertainty is everywhere. The bailout is stalled. Congress is gridlocked. Companies are ramping down. Orders are down. Sales are way down. Costs are rising. Firings and layoffs seem likely. Projects are being delayed or cancelled. Could things get any worse?

Now is the time to plan your rebound. This is no time to panic. There is no time to panic. I have some things for you to consider as you lead yourself and others through times that many anticipate are the worst since the Great Depression.

Here are some excerpts from an article that I wrote soon after the 9/11 tragedy that still apply.

Leadership During Turbulence

The business landscape is changing by the hour. Companies are no longer just working to achieve profitability, they are now struggling for survival. Most executives talk of being in crisis. Sales and revenue are predicted to plummeted as consumer spending is drastically curtailed. Business activity has already taken a severe hit. Capital investments and large-scale projects will be or have been postponed or canceled. Workers are being laid off. Despite our lack of confidence and trust, all eyes are focused on our leaders and their ability to guide us out of the chaos. Thus far, no one has seemed to step up effectively.

Leadership is About Character

Through me coaching with numerous leaders and executives, we have found that crisis or not, leadership is about character. Leadership must be displayed at all levels of any organization. Success is preceded as well as sustained by strong leadership character. We know that leadership character is based on a foundation of integrity and accountability. A successful leader must balance both sides of the scale.

The New Scorecard: Leadership’s Top Ten

1. Emotional Resilience

Both Franklin Roosevelt and Winston Churchill were able to hold the Allied forces together through World War II through their ability to persevere and withstand. Leaders, as well as the organization, must display this same type of emotional resilience. Immediate results or mixed reviews from internal or external critics can be difficult to swallow. A great leader must stand without wavering or communicating a lack of confidence. The great leader is able to ensure that the organization can bounce back from bad news. He or she must not only be a cheerleader but must also be willing to ensure that expectations are not too high or too low.

2. Mobilization of Talent

Once a crisis is upon a great leader, special attention must be paid to the mobilization of talent. Though one may have an executive team in place, it must be determined which key individuals and key roles will be necessary to get through the crisis. Two teams may need to be formed: one to focus on day-to-day operations critical to running the business, and one to focus on the crisis management issues that re-define or change the business. Moreover, a successful team fully understands and embraces the mission. Team members must be fully motivated to deal with change and be fully prepared to shift at a moment’s notice. Having the right people eliminates the need to motivate them and hold them accountable. They hold themselves accountable. Once the crisis teams are in place, the leaders must be willing to delegate and allow others to do work, perhaps including that which is not normally assigned to them.

3. Energizing Others

Obviously, the fundamental ongoing task in times of crisis is that of energizing others. Team building takes on a new meaning. A strong emphasis must be placed on working together, displaying teamwork, setting aside differences and petty conflicts and sacrificing individual goals for the good of the whole. People must think collectively and understand how their work impacts and interconnects with others. Crises involve taking people beyond what they think they are capable of attaining. During difficult times, energizing others can take on special significance. Crises can quickly deplete the organization of spirit and inspiration. Some people want to react quickly, while others take time to react. Leaders must provide people with inspiration as well as direction. Move too quickly and the target may be missed, move too slowly and momentum may be lost forever.

4. Anticipating More Change

Of course, the most important time to prepare for crises is during times of normalcy. The ability to anticipate change can make or break an organization. Fighting and mastering panic and paralysis can ensure that one business thrives while another struggles. Building a leadership team that can avert a crisis through preparation and prevention is a must. Leaders must be flexible, creative and capable of fostering creativity and innovation with an eye toward the future. "Business as usual" is not an option.

5. Communication

Successful leadership involves instilling confidence through communication in the organization. This involves a broad range of communication skills used in a continuous, consistent fashion. Slow memos requesting authorization and traditional chain of command processes will not work. Communication must be more direct, informal and impromptu. The organization needs people going straight to those who can fix problems or offer effective solutions. Whatever communication tools are used, people must believe that things will be controlled and that chaos will be quickly eliminated.

Likewise, the membership of the organization must also believe in the leadership team and their ability to manage the crisis at hand. The leader must maximize credibility, believability and integrity. What is communicated to the organization must address key constituencies about status, on-going progress, and plans for the future. There must be a willingness to hold regular briefings and updates to ensure that the workforce understands what is going on, can ask questions, can clarify issues and, ultimately, can support what is being done.

6. Front Line Presence

This is no time to hide. To support their communication, leaders must maintain a "front line presence" and responsiveness to underscore their control, command and commitment to seeing the crisis through. We are not talking about proverbial "face time". We are talking about real visibility and real work. The leadership team as well as the workforce must be able to see, smell, hear, feel and taste leadership.

7. Clear Purpose and Mission

It must be plain to the organization that there is a clear purpose and mission. The mission must be meaningful. The good leader must carefully construct goals to ensure understanding of the results to be obtained. Nothing is gained, however, by taking a "ready, fire, aim" approach. Responding too quickly with an ineffective action plan can soon destroy the confidence and support needed for the long haul. The plan must be specific, concrete, realistic, measurable and attainable. The mission must have an objective around which people can rally and a destination.

8. Decisiveness

Crisis leadership requires decisiveness. Many leaders have failed at this crucial juncture. Critical decisions must be made that could bring risk to the organization. These risks must be weighed accurately. The risks themselves must not paralyze the leader or the organization. Crises often increase the level of risk and create more unknowns as was the case in the Cuban Missile Crisis. President John Kennedy is considered to have prevented a major military conflict with Russia through his decisive handing of the situation.

A leader can not ignore his team. A leader must have the right people, as well as be able to quickly decipher information to determine the right course of action. With the input and advice of his team, leaders must choose options as presented, often based on incomplete or unavailable information. Frequently, crises have no real precedent. Leaders must be able to take risks and make decisions without the luxury of having seen the given scenario before.

9. Taking the Long View

Decisions must be made with the proper perspective. All great leaders are defined by history. Greatness is measured over time. Decisions must be made by taking the long view. Leaders must keep an eye on the overall mission of the organization and what is best for the long-term sustainability of the enterprise. Speed, creativity and innovation must be balanced with an understanding of the future possibilities and implication of any action or set of actions. Leaders must be willing to ensure that their perspective maintains a broad, strategic view. Emotions that can energize or mobilize in the early stages of a crisis must not drive decisions during later stages.

Long-term strategy can be difficult to support. Not only does a leader in crisis need to help the workforce with getting beyond the initial shock of the crisis, a leader must also be able to keep resolve high over time. Early failures and setbacks can erode confidence in the mission. A leaders’ role must include helping the organization down the long road ahead.

10. Execution and Delivery

Finally, crises require execution and delivery. Crises are often defined by the initial stages involving survival and immediate danger. Once the clear and present danger is over, individuals and organizations may breathe more easily. Often, the crisis is not really over. Leaders must understand that the mission that was so clear at the beginning of the crisis can be blurred. Leaders must do all that they can to ensure that the sense of urgency is not lost and that the eye on the initial goals and objectives is maintained. The goals must be restated again and again.

Conclusion: Taking Business Off Hold

As a nation, we may never be the same again. The landscape has changed dramatically. There is no road map. We have not been here before. Leaders must be realistic with themselves as well as others about what it takes to be successful. Crises require an acknowledgment that things will change and then change again. Organizations that survive and then thrive understand that panic, paralysis, and complacency can be deadly. The real leadership challenge is to ensure that organizations can deal with change after the fact, but can also predict, anticipate and prepare for change. Leadership requires more skill than ever before. There is no time to lose. Businesses will stand or fall on the ability of their leadership to meet the challenge.

Best wishes.

Eve Ensler on Sarah Palin

2008-09-24T07:14:00.000-07:00

By Eve Ensler

Eve Ensler, the American playwright, performer, feminist and activist best known for "The Vagina Monologues", wrote the following about Sarah Palin.

Drill, Drill, Drill

I am having Sarah Palin nightmares. I dreamt last night that she was a member of a club where they rode snowmobiles and wore the claws of drowned and starved polar bears around their necks. I have a particular thing for Polar Bears. Maybe it's their snowy whiteness or their bigness or the fact that they live in the arctic or that I have never seen one in person or touched one. Maybe it is the fact that they live so comfortably on ice. Whatever it is, I need the polar bears.

I don't like raging at women. I am a Feminist and have spent my life trying to build community, help empower women and stop violence against them. It is hard to write about Sarah Palin. This is why the Sarah Palin choice was all the more insidious and cynical. The people who made this choice count on the goodness and solidarity of Feminists.

But everything Sarah Palin believes in and practices is antithetical to Feminism which for me is part of one story -- connected to saving the earth, ending racism, empowering women, giving young girls options, opening our minds, deepening tolerance, and ending violence and war.

I believe that the McCain/Palin ticket is one of the most dangerous choices of my lifetime, and should this country chose those candidates the fall-out may be so great, the destruction so vast in so many areas that America may never recover. But what is equally disturbing is the impact that duo would have on the rest of the world. Unfortunately, this is not a joke. In my lifetime I have seen the clownish, the inept, the bizarre be elected to the presidency with regularity.

Sarah Palin does not believe in evolution. I take this as a metaphor. In her world and the world of Fundamentalists nothing changes or gets better or evolves. She does not believe in global warming. The melting of the arctic, the storms that are destroying our cities, the pollution and rise of cancers, are all part of God's plan. She is fighting to take the polar bears off the endangered species list. The earth, in Palin's view, is here to be taken and plundered. The wolves and the bears are here to be shot and plundered. The oil is here to be taken and plundered. Iraq is here to be taken and plundered. As she said herself of the Iraqi war, "It was a task from God."

Sarah Palin does not believe in abortion. She does not believe women who are raped and incested and ripped open against their will should have a right to determine whether they have their rapist's baby or not.

She obviously does not believe in sex education or birth control. I imagine her daughter was practicing abstinence and we know how many babies that makes.

Sarah Palin does not much believe in thinking. >From what I gather she has tried to ban books from the library, has a tendency to dispense with people who think independently. She cannot tolerate an environment of ambiguity and difference. This is a woman who could and might very well be the next president of the United States. She would govern one of the most diverse populations on the earth.

Sarah believes in guns. She has her own custom Austrian hunting rifle. She has been known to kill 40 caribou at a clip. She has shot hundreds of wolves from the air.

Sarah believes in God. That is of course her right, her private right. But when God and Guns come together in the public sector, when war is declared in God's name, when the rights of women are denied in his name, that is the end of separation of church and state and the undoing of everything America has ever tried to be.

I write to my sisters. I write because I believe we hold this election in our hands. This vote is a vote that will determine the future not just of the U.S., but of the planet. It will determine whether we create policies to save the earth or make it forever uninhabitable for humans. It will determine whether we move towards dialogue and diplomacy in the world or whether we escalate violence through invasion, undermining and attack. It will determine whether we go for oil, strip mining, coal burning or invest our money in alternatives that will free us from dependency and destruction. It will determine if money gets spent on education and healthcare or whether we build more and more methods of killing. It will determine whether America is a free open tolerant society or a closed place of fear, fundamentalism and aggression.

If the Polar Bears don't move you to go and do everything in your power to get Obama elected then consider the chant that filled the hall after Palin spoke at the RNC, "Drill Drill Drill." I think of teeth when I think of drills. I think of rape. I think of destruction. I think of domination. I think of military exercises that force mindless repetition, emptying the brain of analysis, doubt, ambiguity or dissent. I think of pain.

Do we want a future of drilling? More holes in the ozone, in the floor of the sea, more holes in our thinking, in the trust between nations and peoples, more holes in the fabric of this precious thing we call life?

Eve Ensler

September 5, 2008

Palin: Ostrich Puts Head in the Sand

2008-09-23T11:16:00.000-07:00

"I thought it was hilarious. I thought she was spot on. Didn't hear a word she said, but the visual, spot on."

--Sarah Palin,, who admits that she watched Tina Fey impersonate her on "Saturday Night Live" — but only with the volume turned off.

What else do you think she might refuse to listen to or lie about?

Bush One and Bush Two

2008-09-04T08:57:00.000-07:00

"You know, it was once said of the first George Bush that he was born on third base and thought he’d hit a triple.

Well, with the 22 million new jobs and the budget surplus Bill Clinton left behind, George W. Bush came into office on third base and then he stole second. And John McCain cheered him every step of the way."

--Ted Strickland, Governor of Ohio, speaking at the Democratic National Convention.

Listen to the Issues, Ignore the Media and the Hype

2008-09-02T08:20:00.000-07:00

“Our nation is in trouble on two fronts. The American dream is under siege at home, and America’s leadership in the world has been weakened. Middle-class and low-income Americans are hurting — with incomes declining; job losses, poverty and inequality rising; mortgage foreclosures and credit card debt increasing; health care coverage disappearing; and a very big spike in the cost of food, utilities and gasoline.

“And our position in the world has been weakened by too much unilateralism and too little cooperation, by a perilous dependence on imported oil, by a refusal to lead on global warming, by a growing indebtedness and a dependence on foreign lenders, by a severely burdened military, by a backsliding on global nonproliferation and arms control agreements, and by a failure to consistently use the power of diplomacy, from the Middle East to Africa to Latin America to Central and Eastern Europe.”

--Bill Clinton.

Sarah Palin: A Great Choice (Until You Look Below the Surface)

2008-08-30T11:42:00.000-07:00

“I don’t think a Hillary person would ever move to her, based on the issues. I don’t think before today I would have ever heard someone call her a feminist.”

--Jean Craciun, a strategic research and planning consultant in Alaska who has done political polling for Democrats and Republicans.

2008 Election: Presidential Leadership Competencies, A Scorecard

2008-08-29T09:33:00.000-07:00

Leadership: A leader exhibits behavior that 1) defines reality; 2) makes others believe in themselves; and, 3) applies leadership competencies to successfully execute a strategy.

In the business world, developing a competency model for the selection of a CEO is a best practice and standard operating procedure for many successful companies.

If we use a behavioral template as criteria for selecting a president, how would our presidential candidates compare? Read the characteristics below carefully and rate each of the candidates objectively. Though obviously open for discussion, I have rated the winner in each competency based on my observations of each in action. (x)

The Presidential Leadership Competencies are listed below:

· VISIONING (x- Advantage Obama)
Takes a long-term view and acts as a catalyst for change; builds a shared vision with others; influences others to translates vision into action; creates a compelling and inspirational picture of the future

· ACTS WITH INTEGRITY (x- Advantage Obama)
Fosters high standards for ethical behavior; behaves in a fair and ethical manner towards others; demonstrates high political and professional standards; handles situations with integrity; viewed as highly trustworthy; stands up for what is right despite potential personal consequences; demonstrates consistency between words and actions; honors commitments to others

· ACCOUNTABILITY (x- Advantage Obama)
Holds self and others accountable for laws, policies, rules and responsibilities; can be relied upon to ensure that issues within areas of responsibility are completed in a relevant and timely manner and within budget; sets high standards for self and others; assigns clear accountability backed by appropriate authority

· GETS RESULTS (x- Advantage Obama)
Achieves strategic goals; delivers measurable results, on time and within budget; translate(s ideas into concrete actions; champions initiatives beyond the scope of one’s job; mobilizes resources and removes barriers for success; anticipates potential problems and develops contingency plans to overcome them; works across political and organizational boundaries, avoiding turf issues, and eliminating unnecessary work to achieve the desired results; concentrates on outcomes rather than activities

· IDENTIFIES AND DEVELOPS TALENT (x- Advantage Obama)
Inspires, fosters, and develops leadership in others through coaching, mentoring, rewarding and guiding those under him/her; develops successors and talent pools for key positions

· TAKES INITIATIVE/RISK-TAKING (x- Advantage Obama)
Creates an environment that encourages creative thinking; designs and implements new or cutting-edge programs/processes; challenges the status quo; recognizes opportunities and takes action to achieve objectives; empowers others to take risks, supports them when things go wrong and encourages them to learn from set-backs and failures

· CHANGE MANAGEMENT (x- Advantage Obama)
Understands process and issues inherent in change management and plans accordingly; instills confidence and trust in others; coordinates resources; evaluates measures, project plans and deliverables for strategic alignment; acknowledges individual’s responses to change and helps them adjust; Adapts unit goals and work plans in response to internal and external forces that will impact the future effectiveness of the unit

· THINKING SKILLS (x- Advantage Obama)
Identifies and integrates the critical elements of a situation, making correct inferences from data; breaks complex problems into component parts and organizes the parts in a systematic way; uses innovation to develop novel solutions; can explain to others how to understand and approach complicated problems

Knowledge/Political Acumen: Applies resources, constituency needs, and processes to make sound strategic and business decisions.

· STRATEGIC THINKING AND PLANNING (x- Advantage Obama)
Formulates effective strategies consistent with the needs of the nation; sees the big picture and holds a long-term perspective; determines objectives and sets priorities; anticipates potential threats or opportunities; aligns people to support organizational goals; drives the execution of strategic plans and monitors results

· MANAGES RESOURCES (x- Advantage Obama)
Assesses current and future staffing needs based on organizational goals and budget realties; ensures staff are appropriately selected, developed, utilized, appraised and rewarded; readily shares resources to support political initiatives; understands key financial indicators; uses cost-benefit thinking to set priorities; integrates technology into the workplace to improve effectiveness and efficiency; understands the impact of technological changes on the organization

· PROFESSIONAL AND POLITICAL KNOWLEDGE (x- Advantage Obama)
Continually enhances knowledge and skills to keep abreast of global changes, developments and emerging issues; understands what it takes to be successful; has a thorough knowledge of the nation’s mission, history, and constituencies

· PROBLEM SOLVING/DECISION MAKING (x- Advantage Obama)
Develops new insights into situations and applies innovative solutions to make improvements; exercises good judgment by making sound and well-informed decisions; is proactive; distinguishes between relevant and irrelevant information to make logical decisions; effectively analyzes potential for risk and acts decisively; makes breakthrough decisions based upon a mixture of analysis, wisdom, experience and judgment; solicits input from individuals who can add significant value to the decision-making process

Builds Relationships/Communication: Cultivates effective relationships to create a culture that supports the national goals and strategy.

· INFLUENCING SKILLS (x- Advantage Obama)
Builds coalitions through give and take; gains cooperation from others to obtain information and accomplish goals; collaborates across boundaries; recognizes which battles are worth fighting for and when it is time to compromise; seeks to build internal and external partnerships to better accomplish goals; invites other points of view; anticipates the reactions and objections of others

· CONFLICT MANAGEMENT (x- Advantage Obama)
Identifies and takes steps to prevent potential situations that could result in confrontations; manages and resolves conflicts and disagreements in a positive and constructive manner to minimize negative impacts

· LEVERAGES DIVERSITY (x- Advantage Obama)
Recruits, develops and retains a diverse political base; leads and manages an inclusive environment that maximizes the talents of each person to achieve sound results; respects, understands, values and seeks out individual differences to achieve the vision and mission of the organization

· TEAM BUILDING (x- Advantage Obama)
Inspires and guides others toward goal accomplishments; consistently develops and sustains cooperative working relationships; fosters commitment, team spirit, pride and trust; shares leadership and helps the team become interdependent by facilitating participation and group interaction

· TREATS OTHERS WITH RESPECT (x- Advantage Obama)
Considers and responds appropriately to the needs, feelings and capabilities of different people in different situations; is tactful, compassionate and sensitive; challenges others' ideas without getting personal; follows through on commitments to others

· PRESENTS IDEAS EFFECTIVELY (x- Advantage Obama)
Makes clear and convincing presentations to individuals and groups; listens effectively and clarifies information as needed; shares relevant information and expectations openly, honestly and in a timely fashion; targets presentations to the needs and level of the audience; translates complex information into understandable, meaningful, relevant language

Self-Management and Development: On-going development of skills and competencies to lead the nation.

· TOLERANCE FOR AMBIGUITY (x- Advantage Obama)
Takes changing priorities and new developments in stride, even in the face of ambiguity; leads with a clear sense of priorities in a climate of uncertainty and change

· FLEXIBILITY (x- Advantage Obama)
Is open to change and new information; adapts behavior and work methods in response to new information, technology, changing conditions or unexpected obstacles; adjusts rapidly to new situations warranting attention and resolution

· SELF-KNOWLEDGE AND DEVELOPMENT (x- Advantage Obama)
Recognizes own strengths and weaknesses; seeks feedback from others; extracts learning from failure

· LEARNS CONTINUOUSLY (x- Advantage Obama)
Pursues self-development and opportunities to master new knowledge; applies new knowledge; embraces new and diverse ideas; shares learning broadly

The last two elections were based on simple emotional and subjective criteria such as: our comfort level having a beer with the candidates, our fear of an intellectually superior president, and our fear of changing adminstrations during wartime.

Let's be more substantive and objective this time. Let's set our leadership requirements and make a valid decision based on the candidates' ability to meet those requirements. We deserve nothing less.

Obama: Listening and Learning

2008-08-18T08:23:00.000-07:00

"He listened more than he talked, which is always a good thing. He clearly sees himself as a clever synthesizer of other people's ideas. And I think that is an important skill in a president."

--Eric Schmidt, CEO of Google.

"I don't think Senator Obama has an agenda for big business. He's trying to affect the overall economy, and he's got to find a way to help people who are worse off. I don't think he loses any sleep woryinig about how to craft a policy just for big business, not should he, and I say that as a former commerce secretary."

--William M. Daley, JPMorgan Chase.

Choosing a President

2008-06-29T09:30:00.000-07:00

Thomas L. Friedman hits the nail on the head again. See his opinion piece in the New York Times for Sunday June 29, 2008.

"We need nation-building at home, and we cannot wait another year to get started. Vote for the candidate who you think will do that best. Nothing else matters."

Anxious in America

http://www.nytimes.com/2008/06/29/opinion/29friedman.html?th&emc=th

Thomas L. Friedman/The New York Times

Just a few months ago, the consensus view was that Barack Obama would need to choose a hard-core national-security type as his vice presidential running mate to compensate for his lack of foreign policy experience and that John McCain would need a running mate who was young and sprightly to compensate for his age. Come August, though, I predict both men will be looking for a financial wizard as their running mates to help them steer America out of what could become a serious economic tailspin.

I do not believe nation-building in Iraq is going to be the issue come November — whether things get better there or worse. If they get better, we’ll ignore Iraq more; if they get worse, the next president will be under pressure to get out quicker. I think nation-building in America is going to be the issue.

It’s the state of America now that is the most gripping source of anxiety for Americans, not Al Qaeda or Iraq. Anyone who thinks they are going to win this election playing the Iraq or the terrorism card — one way or another — is, in my view, seriously deluded. Things have changed.

Up to now, the economic crisis we’ve been in has been largely a credit crisis in the capital markets, while consumer spending has kept reasonably steady, as have manufacturing and exports. But with banks still reluctant to lend even to healthy businesses, fuel and food prices soaring and home prices declining, this is starting to affect consumers, shrinking their wallets and crimping spending. Unemployment is already creeping up and manufacturing creeping down.

The straws in the wind are hard to ignore: If you visit any car dealership in America today you will see row after row of unsold S.U.V.’s. And if you own a gas guzzler already, good luck. On Thursday, The Palm Beach Post ran an article on your S.U.V. options: “Continue to spend upward of $100 for a fill-up. Sell or trade in the vehicle for a fraction of the original cost. Or hold out and park the truck in the driveway for occasional use in hopes the market will turn around.” Just be glad you don’t own a bus. Montgomery County, Md., where I live, just announced that more children were going to have to walk to school next year to save money on bus fuel.

On top of it all, our bank crisis is not over. Two weeks ago, Goldman Sachs analysts said that U.S. banks may need another $65 billion to cover more write-downs of bad mortgage-related instruments and potential new losses if consumer loans start to buckle. Since President Bush came to office, our national savings have gone from 6 percent of gross domestic product to 1 percent, and consumer debt has climbed from $8 trillion to $14 trillion.

My fellow Americans: We are a country in debt and in decline — not terminal, not irreversible, but in decline. Our political system seems incapable of producing long-range answers to big problems or big opportunities. We are the ones who need a better-functioning democracy — more than the Iraqis and Afghans. We are the ones in need of nation-building. It is our political system that is not working.

I continue to be appalled at the gap between what is clearly going to be the next great global industry — renewable energy and clean power — and the inability of Congress and the administration to put in place the bold policies we need to ensure that America leads that industry.

“America and its political leaders, after two decades of failing to come together to solve big problems, seem to have lost faith in their ability to do so,” Wall Street Journal columnist Gerald Seib noted last week. “A political system that expects failure doesn’t try very hard to produce anything else.”

We used to try harder and do better. After Sputnik, we came together as a nation and responded with a technology, infrastructure and education surge, notes Robert Hormats, vice chairman of Goldman Sachs International. After the 1973 oil crisis, we came together and made dramatic improvements in energy efficiency. After Social Security became imperiled in the early 1980s, we came together and fixed it for that moment. “But today,” added Hormats, “the political system seems incapable of producing a critical mass to support any kind of serious long-term reform.”

If the old saying — that “as General Motors goes, so goes America” — is true, then folks, we’re in a lot of trouble. General Motors’s stock-market value now stands at just $6.47 billion, compared with Toyota’s $162.6 billion. On top of it, G.M. shares sank to a 34-year low last week.

That’s us. We’re at a 34-year low. And digging out of this hole is what the next election has to be about and is going to be about — even if it is interrupted by a terrorist attack or an outbreak of war or peace in Iraq. We need nation-building at home, and we cannot wait another year to get started. Vote for the candidate who you think will do that best. Nothing else matters.

June 29, 2008

"Fatigue makes cowards of us all." --George Patton

2008-06-12T08:23:00.000-07:00

http://www.nytimes.com/2008/06/12/opinion/12collins.html?th&emc=th

This New York Times article (6/12/2008) by Gail Collins questions the judgement of Democratic Presidential nominee Barack Obama after the recent resignation of James Johnson. Johnson was the head of the VP candidate selection committee for Obama.

Collins criticized the appointment of a man who in the past selected two highly unsuccessful VP running mates (for Walter Mondale and John Kerry); headed up the Countrywide Financial Corp. and had a role in the subprime lending fiasco; was the former head of Fannie Mae (which was widely criticized for its questionnable accounting practices; and, who was involved in a number of controversial compensation package decision (including a $1.4 billion stock option package at UnitedHealth Group).

Collins suggests that Obama showed poor judgement because is tired and needs some rest after a gruelling primary campaign. At least, he got this one out of his system early, she said.

Should we forgive him and give him a Mulligan? Or, is this a preview of decision-making to come???

Patagonia: The New Green Business Model?

2008-04-21T09:22:00.000-07:00

"Hire the people you trust, people who are passionate about their job, passionate about what they're doing. Just leave them alone, and they'll get the job done."

--Yvon Chouinard, founder and principal owner of Patagonia.

Patagonia, the apparel company, has a mission statement that calls for making the best outdoor products while doing the least damange to the environment.

"We acknowledge that the wild world we love best is disappearing. That is why those of us who work here share a strong commitment to protecting undomesticated lands and waters. We believe in using business to inspire solutions to the environmental crisis."

Patagonia, with $275 million in sales and 1,300 employees , prides itself on a workforce that is actually encouraged to have a work/life balance, not just give it lip service. In fact, they are very serious about having that balance. Lunchtime, for many employees in taken up by surfing sessions of two hours or 27-mile bike rides in the Ventura, California hillside overlooking the Pacific Ocean.

Flextime is a way to achieve a quality of life and a fitness lifestyle that other companies can only dream about. Remember that mountain bike you worked so hard for and bought years ago that is gathering dust, it would be kicking up dust daily if you worked at Patagonia.

Childcare is also offered at Patagonia, as are lunchtime yoga and Pilates sessions (four times per week). Employees, up to 40 of them, are allowed paid two-month interships with an environmanetal group. The parking lot caters to the most fuel-efficient car owners and the best spots are given to them. Solar panels supply the adminstration buildings with all their power.

Not surprising, Patagonia has 900 applicants for every job opening. Surfboards are ubiquitous at headquarters and barefoot employees are often spotted. Self-expression is fostered and people maintain their off-campus identities at work.

The founder and principal owner, Yvon Chouinard, promotes a philosophy of blending work, play, family and a passion for the environment. He was born in Maine and raised in California and was passionate about mountain climbing as a teen. He started the company in the 1960s and by 1970, his company was the nation's largest producer of climbing equipment. His company grew, expanding into outdoor apparel, while also maintaining a company rule that the business closed whenever optimal surfing weather and waves were achieved.

Flextime policies are not abused and yield substantial productivity. "A lot of people recognize that what they have here is unique, and I don't think they want to jeopardize that," says Shannon Ellis, vice president for Human Resources. Benefits at Patagonia include eight weeks of paid maternity and paternity leave. They pay 100% percent of health insurance premiums for full and part-time workers.

Chouinard says he wants to attract enthusiastic outdoor types to work at Patagonia to test, use, and communciate their expertise and passion for the products to customers.

"Everyone if these things is good business," says Chouinard, defending his philosophy, mission and business practices.

"He's proving Wall Street wrong. You can do the right thing and still have an extremely profitable commpany."

--Lisa Pike, leader of environmental grants at Patagonia.

It is possible!!

Excerpts from the New York Times, April 20, 2008.

Google: Lucky or Good?

2008-04-18T15:03:00.000-07:00

With the anxieties about the economic conditions and predictions of a long recession, Google continues to chug along. Their financial results are better than expected, resulting in an increase in share value. Eric Schmidt, Google CEO, who attributes the results to strong advertising revenue growth, particularly overseas, optimistic.

Most investors were expecting a significant slowdown. There was a slight decrease in growth from the previous quarter, which is a troubling sign. And the US growth rate is of some concern. Google relies on short and sweet ads that appear on its search engine site and other related sites. Overall net income grew 30% in the first quarter. Closer analysis showed that paid clicks versus total clicks was down. Recent changes in quality control and operations in the area of ad relevancy was a possible factor in the slowdown of revenue. Also, the acquisition of DoubleClick in March was not felt to have had much negative impact on the bottom line revenue.

Complacency is human nature, so Google had better keep its eye on the ball if it is to continue to grow and prosper in these troubling economic times. Root cause analysis and forward thinking which have been Google's strength in the past must not give way to complacency, particular regarding its US operations. Time will tell.

To combat complacency, I suggest 9 steps that Google and all organizations should practice:

1. Continue to raise the bar, the same bar (don't try to change your metrics too drastically) in small, but significant ways, and satisfying, meaningful ways.

2. Reward and reinforce creativity and innovation in the ways in which things are done to continue achieve great results.

3. Ensure that standard operational procedures can be replicated too maintain discipline in operations.

4. Keep communication open. Reinforce questioning of assumptions. Avoid the tendency to develop what I call "sacred cows of success."

5. Work hard to keep moving the culture of the organization forward in the spirit of excellence, belongingness, and mission. Make sure that the people in your organization feel that they are making a difference in their lives and the lives of others, together.

6. Make sure that you have designated people in your organization who are responsible for "connecting the dots" and anticipating both problems and opportunities in the future.

7. Make sure that decision-making is done with due diligence and thoroughness.

8. Use a systems approach to communication and information sharing. Make sure that information runs both up and down the organization as well as accross the organization amongst departments.

9. View the "game films." Make sure that you have a process from learning from mistakes and failures as well as successes.

Big Company Blues: Is GE too big?

2008-04-17T12:07:00.000-07:00

General Electric, one of the darlings of Wall Street, due to its performance as well as its diversified portfolio of companies, is reporting a earnings shortfall. Wall Street is not happy and is wondering if GE is too big. Analysts are wondering if the breakup of GE is imminent and necessary.

The most likely breakup scenario involves sales or spinoffs of NBC Universal and GE Money (their financial unit). Shareholders would benefit by the billions and GE would focus on its core business of engines and turbines. Share were down almost $5 from a week ago and well below what they were before Jeffery Immelt took over as CEO in September of 2001.

The shortfall is not as critical as the fact that last month Immelt told investors that GE would reach their financial earnings targets. Thus, the shortfall was a shock to most. The famed GE credibility and reputation was quickly shot, despite its long tenure as a sure thing. GE and others blame the credit crisis for the shortfall. The sixth largest US company is considered a barometer of the economic conditions.

Despite Immelt's support from others at GE and his pleasant leadership style, he is on a short leash with investors. He does not favor a fire sale, but may have to spin off all the consumer businesses. Many ancipate a major shake-up of the executive team at GE as well.

Is it an over-reaction on the part of Wall Street, a blip on the screen, or is it a preview of major change and turmoil at GE and beyond?

When is big, too big? If you have to ask the question, the answer is probably: NOW! I predict major changes, shortly. Stay tuned.

Another Merger? Another Failure?

2008-04-16T10:35:00.000-07:00

(April 16, 2008) The CEO of Delta Airlines just announced merger plans with Northwest Airlines, which would create the world's largest airline. Touting "the combination is exactly right for all the constituencies," Richard Anderson did not exactly wow investors or analysts. In fact, stock prices immediately went down for both Delta and Northwest.

NW Pilots are not pleased and vowed to fight the deal, fearing lower pay than Delta pilots and the possibility of being shut out of choice assignments. Customers fear operational nightmares (higher prices, and ticket, flight and baggage problems). Mergers tend to create fewer flights and seat availability.

To answer skeptics, Richard Anderson says "the new Delta" plans no hub closures, assures more destinations and promises improved frequent-flier programs. The reality is that there have already been flight cuts at Delta and Northwest.

The annual savings of $1 billion will not be seen until 2012. Costs will continue to rise. Pilots will get raises.

Up to now and since 9/11, Delta can be applauded for surviving a bankruptcy, reduction of plane capacity and substantial debt and is currently positioned well in comparison to the rest of the "big airline" industry.

What hasn't been discussed is, not how the merger will be handled operationally and financially, but how the talent will be managed. No one is questioning how key people in key positions will be retained and made into a smooth running team. While the merged company works to smooth over the operational side of things, who will smooth over the problems when two distinct cultures come together? It appears that the top shareholders' and the pilots' issues have been discussed, but what about middle management/supervisors and the rank and file employees.

I suggest that this employee constituency will be what will potentially create the problems when customers demand good service and uninterrupted travel. If their concerns are not addressed and if they are not brought into the fold, the merger will lose most of its value. Cultural integration will be paramount.

Though the letter sent yesterday to all US-based Delta employees promised an integration committee made up of and including both Delta and Northwest representatives of all workgroups and future pay increases, the letter did not go beyond that. The letter should have:

1. Started with thanking all of the employees for their contributions during tough times, rather than thanking them at the end.

2. Discussed the vision for the merged airline and how the merger fit into that vision.

3. Discussing why it is pratically important to have the #1 Airline."

4. Emphasize what is in all of this for the employee (beyond promises of future pay increases).

5. Pointed out how their manager(s) will be prepared to effectively manage them and their career as part of the merger management strategy.

Most experts have blamed oil prices for the problems that set off this merger. Delta management suggests that the new company will be able to operate smoothly and efficiently to avoid operational issues. But the recent merger of US Airways and America West which was initially considered relatively smooth, has created ongoing performance problems including (reservation and ticket counter delays).

So, who is it a great deal for? How about Richard Anderson?

As with many mega-mergers, the promised synergies are not realized and a small group of people run away with compensation and bonuses that were promised to them either pre- or post-merger. Anybody want to bet on how this one goes?