“Well, then, let them eat cake.” (Reply of Marie Antoinette who asked why the people were rioting upon being told that they had no bread. This reply was widely circulated, and was one of the things that resulted in Marie losing her head. “A tisket a tasket, a head in a basket. It cannot reply to the questions you ask it.” Queen Marie wasn't being callous. She didn't understand that there was no flour to make bread or cake. She simply thought they were unhappy because they'd run out of bread and the bakers weren't making enough. From her very isolated point of view, this was a perfectly logical and proper solut9ion. )
Ford’s CEO didn’t lose his head. But Alan Mulally certainly deserved to lose his job, and why his board didn’t immediately fire this fool after his remarks is beyond me. After going by private corporate jet to Washington D.C. to ask the representatives of the taxpayers (few of whom have the luxury of brand new cars, much less corporate jets) for a bailout for their stupidity, Mulally, when asked if he would take a salary cut from $21M total compensation to $1.00, said “I think I’m OK where I am.” Again, this congenital idiot should have been fired by the board on the spot.
The problem, however, is that the board of Ford is composed of Mulally’s golfing buddies who think in the same way.
I’m reminded of the story my friend Alva told me about the local GM of Avaya a few years back. When he was meeting with employees to explain why Avaya had to cut their jobs, he was asked why he didn’t get rid of a corporate jet. Rather than responding he proceeded to correct the questioner (who was being RIFed) that it wasn’t A corporate jet, but three corporate jets and a couple of corporate helicopters. Then, this dumbass went on to detail the millions of dollars that these luxuries cost to maintain and fly each month. Again, in a sane world, this individual would have immediately lost his job if not his head.
I must say, however, that I see such idiocy frequently at the top levels. Last December I did one of our Executive Round Tables on ways to thrive in the “coming recession” (which, according to most sources, has long since arrived). I predicted the current credit crisis, and that we were going to see housing in free-fall. I was accused by one of the more conservative CEO attendees at this Round Table of being a “Liberal” (which, for this group, is the harshest condemnation possible) and of being one of the “Liberal naysayers” who just couldn’t admit that George W. Bush was the country’s greatest president and had brought us a booming economy.
To their credit, several of the other CEOs there looked aghast at this fool, and questioned what planet he was living on. But these things point up a very real problem in the ranks of upper-level executives. It is called “Executive Think.”
It is important to understand that these people aren’t necessarily evil. They just live in a world different from the remainder of the human race. When Bush 41 (George H.W.) guessed wildly wrong on the price of a half gallon of milk, he was not alone. Many of the top level executives I have known over the years really, truly don’t “get it.” They live in an insulated world where the economy is booming, housing is stable and the stock market is great. If I weren’t so happy (for their sakes) that they’re getting a wake-up call from reality, I’d feel sorry for them. In the recent crises, executives are now having their noses rubbed in realities that most of us must deal with every day. That they still don’t get it, however, is evident by the fact that, after receiving taxpayer money the congenital idiots who run AIG went away to a plush spa for a four day corporate retreat.
It is this lack of understanding that leads me to say that these people need to be fired by their boards and replaced with “C” level executives who have an understanding of the real world. And this, by the way, is 70% of “C” level executives. The vast majority of the CEOs I’ve met are very realistic and great people. But the 30% who are clueless are going to cause some very harsh regulations to come forth on all of us. This is why we, as their peers, must pull them down before they pull all of us down into the morass of stifling government regulation and interference. And, frankly, if we can’t police our own ranks, we deserve every bit of government interference we get. So we must police our own ranks.
Fortunately, these clueless “C” Level executives are dinosaurs who are well on their way to being extinct. Most executives understand that there are executive behaviors which incite rage and those which engender approval from others. And many executives understand that “the masses” are their customers. Don’t be surprised to see organized boycotts of Ford (I wouldn’t buy a lousy Ford product anyway…but still….). While elections have consequences, so do stupid remarks from top executives. Here are the things that executives in virtually all companies must do now to change public perception of top business leaders.
1). Reduce the obscene gap between the average employee and the executive suite. If we do not immediately reduce the ever-rising income gap between the average employee and the executive suite, both in actual paychecks and in total comp, we are gong to see the government limiting it for us. And you can bet your bootie that, if the government does it, it will be harsher than anything we’d impose on ourselves. In 1996 the average top executive earned $41 for every $1 earned by the average wage-earner. However, in 2006 the average top executive earned $410 for every $1 that was earned by the average wage earner. This ten-fold jump is very unhealthy for society and, if history is any indication, will eventually be very literally unhealthy for executives themselves. No less of a luminary than Warren Buffet has predicted food bank riots in New York City by 2010, as the city’s food banks are dry. Hello, people! Hungry people have always been known to drag the wealthy who are perceived to be corrupt out of their carriages, off their horses, and, in modern times, out of their limousines and beat them and/or kill them.
This earnings gap must end immediately A difference of 400% for average executives (the gap for the “C” Level executives of Fortune 100 firms can be thousands of times) is beyond absurd. It is, arguably, immoral. For the good of society and for the protection of capitalism and the free market, we must police ourselves to change this.
2). Excessive “perks.” But salaries are only the beginning. The enormous difference in “perks” is even more scandalous. When luxury perks, special loans, corporate jets or helicopters, etc. are added in, the gap becomes even wider.
The problem is that executives often think that they deserve these things. If the company is privately held, well, realistically the owners can take as much as they want out of it and explain or not explain to their workers. If their workers don’t like it, they can leave. But this isn’t true of a publicly traded company. Share-holders often complain about executive pay, but most companies are set up so the share-holders, who are the true owners of the company, have little or no say in what executives are paid. This is because the board is composed, again, of the executive suite’s golfing buddies, thus assuring no independent oversight of public corporations. This, also, will lead to government regulation, especially in a Democratically controlled Washington, if we don’t police ourselves.
3). Effective immunity from prosecution. Because of the corporate shield, many executives who cheat or steal from others are effectively shielded from prosecution or any other legal consequences. If prosecuted or sued, corporations often pay for the best attorneys possible to get these folks a slap on the wrist. Again, this is likely to change.
The last 8 years of the Bush Administration Justice Department which was owned and operated by large corporations is winding down. The Obama Administration Justice Department is going to be more aggressive. And they have learned since Janet Reno went after Microsoft. They learned a great deal from that case.
Corporate executives are going to be increasingly held personally responsible for dangerous or faulty products, manipulation of the markets, and many other things. Remember, the immunity of individuals in corporations is not a universal value. In fact, it is a value that very few countries hold. In China a CEO who makes a product that kills people, as well as his or her team, can be held for murder and executed. While that is unlikely to happen in America, the corporate shield is going to be dramatically weakened. That shield is a tradition, not an absolute. It can be changed with the stroke of a pen. Once again, we must police ourselves before the government does.
Executives who are going to be successful must stop acting in “executive think,” and begin to see the values of those who have recently turned around companies. The next post will deal with what is effective thinking for executives, rather than “executive-think.” As a preview, here are a few things that newly successful executives must begin to practice. We’ll elaborate next time.
1). Team spirit. Currently, successful executives are those who see themselves as a part of a team, every individual of which is valuable and necessary.
2). A flat organization. Successful organizations are increasingly “flatter.” My company is very successful — and very flat. We are certainly very small by choice. But the same principles are being applied at many successful companies world-wide.
3). Get out of the Executive Suite frequently! As a result of the above two points, successful CEOs are getting out of the executive suites and down on the shop floor, assembly line, out in the field, and so on. Employees who see the CEO eating lunch in the company cafeteria from a brown bag, where they can go and talk with him or her, are incredibly loyal.
4). Equality of perks. My colleagues who work with me have similar needs to mine so far as health insurance, dental insurance, days off, and so on. So WHY, just because my wife and I started the company, should we have tons more perks than they do? Successful organizations give everyone pretty much the same perks. Now, if we could just get the U.S. Congress and U.S. Government to follow the laws they pass, we’d be in good shape.
5). Flatness of pay. This one is sure to raise ire among businesspeople. And it is pretty radical. But, mark my words, just as surely as I predicted the credit crunch and housing crisis in 2003 in a restaurant in South Denver, this prediction of mine will come true, as well. Differences in pay between executives and workers will and must be reduced. Everyone must win, not just the people in the executive offices. And, about those executive offices, anyway….a true executive doesn’t need acreage in his or her office. I’m still a competent executive in a modest office similar to everyone else’s.
And so on. The key word here is “flat.” Companies that want to survive this economic crisis, and, at the same time, survive the sea changes that, as a result of the taxpayers owning some of America’s largest companies now, will be very flat organizations. I’ve said before that humility is the most important virtue for an executive. This has never been more true than now.
Unfortunately, I am skeptical that many of the insulated, arrogant and greedy executives in the executive suites of many of America’s companies will get their heads out of the butts and make the changes they need to make. They are stubbornly convinced of their own rightness. Instead of doing what is intelligent, they are standing on their perceived “rights” to be considered special and above the opinions and reach of society. As so many people through history have realized just before they were executed, these people are not invulnerable. Their money and influence will not protect them forever.
I actually think this is a good thing for American business. Getting rid of arrogant, posturing, narcissists in America’s companies, whether by the perp walk or being voted out by furious stockholders will improve American business immensely. It will be a difficult and challenging time for America until these fools are gone. But, in the long run, it will produce an economy that benefits a great many more people than our current, highly stratified, and corrupt system.
Be prosperous!
J.
Showing posts with label executive advice. Show all posts
Showing posts with label executive advice. Show all posts
Thursday, December 4, 2008
Sunday, November 2, 2008
Getting Out of This Mess!
Fellow executives, America is in the mess She is in because we, as leaders, have failed Her, our communities, our companies and our families. We must change that starting today.
We are the world's business leader. We will continue to lead the world only by taking a good hard look at ourselves. And, yes, it is we who have the money, the authority, the leadership and the power that must look hardest at ourselves because, ladies and gentlemen, we have failed.
We've forgotten American Values! America is in the mess we are in because we in leadership have failed Her. We have failed to put integrity above profit, ethics above winning, and looking ourselves in the mirror above our paychecks. We have failed to lead our employees, our communities and our families by hope and integrity. We have failed to show that a free market and private capitalism can exist with the highest of moral and ethical values, concern for all of our fellow people, and justice for each of our employees.
CEOs have taken multi-million dollar bonuses while laying off hundreds or thousands. This is not right. They have taken “golden parachutes” for leading their companies into disaster, and this is not right. They have blathered on about principles when they have none, and have issued bland denials with one hand while their other was in the corporate cookie jar.
Things must change! We who have leadership have let down our companies, our communities, our families, our nation and our belief systems. But this can all change. And it MUST change, starting today.
We who have power and leadership must be at the forefront of demanding that businesses operate with impeccable integrity, flawless ethics, and real concern for all stakeholders. We who have power and leadership must be at the forefront of demanding that leaders who fail share the pain of their stakeholders.
Lay-offs are a failure! If employees are laid off, this is a failure of leadership. The one who does it should only not get a bonus, but should take a major salary cut. This man or woman has failed hundreds or thousands of employees. They haven’t led well enough, sold well enough, or managed well enough. They’re letting moms, dads, sons, daughters, husbands and wives go, many of whom will go bankrupt and many of whom will lose their homes. This is a failure on their part and they must take some pain for it. That they get a bonus is a sign of the moral bankruptcy of American capitalism and it must change.
We must stop being executives and start being leaders. If our boards won’t go along…quit. Few if any of you will bankrupt or lose your home, unlike the people who are laid off. Most of you have made prudent investments and have managed your money well. Don’t sell your integrity for a few hundred thousand dollars…it shouldn’t be for sale. If enough of us refuse to play the crooked game that has been played in the last few years, consumers, boards, and other executives will listen. You’ll be profiled as a hero on CNN, as well as looked on as a unique animal — a business leader with integrity.
Lead with impeccable integirty and unquenchable hope! Start leading by hope and integrity today. Make a commitment to your employees as the fine people at Gambro did not long ago that they would all share the pain, if there is any pain. Make a commitment to your families that you will lead from the high road and be the mother or father, husband or wife, that they can hold their heads up about. Make a commitment to your communities that you will not let them down. And make a commitment to your country that you will demonstrate the good old Yankee values of hard work, impeccable integrity, equality of opportunity, and excellence of product. If you do less, you do not deserve your job, your salary or even a shred of respect.
There is a new day coming. I’m a “voice in the wilderness” now about this. But I’m not a lone voice. There are others. Soon we’ll be in the majority, because American business is too good to be as bad as it has been recently, and Americans as a people are too honest to allow the travesties of the last few years to continue.
There is a new time coming — one of hope and integrity and excellence. Those of you who are of the recent school that you “take no prisoners” and do anything to win had better quit now while you’re able. Because those of us who have compassion, believe in justice and equality, and insist on integrity, ethics and hope are close on your heels, and we WILL overtake you and return our great nation and its businesses to the high road.
By the way, some of my friends advised me not to write like this, as I’d probably lose business. But my integrity isn’t for sale, either. I only want to coach and help executives in transition who have integrity and honor, anyway. It’s worked for me for 28 years…I suppose it will work now.
May God bless the United States of America…and everywhere else.
J.
We are the world's business leader. We will continue to lead the world only by taking a good hard look at ourselves. And, yes, it is we who have the money, the authority, the leadership and the power that must look hardest at ourselves because, ladies and gentlemen, we have failed.
We've forgotten American Values! America is in the mess we are in because we in leadership have failed Her. We have failed to put integrity above profit, ethics above winning, and looking ourselves in the mirror above our paychecks. We have failed to lead our employees, our communities and our families by hope and integrity. We have failed to show that a free market and private capitalism can exist with the highest of moral and ethical values, concern for all of our fellow people, and justice for each of our employees.
CEOs have taken multi-million dollar bonuses while laying off hundreds or thousands. This is not right. They have taken “golden parachutes” for leading their companies into disaster, and this is not right. They have blathered on about principles when they have none, and have issued bland denials with one hand while their other was in the corporate cookie jar.
Things must change! We who have leadership have let down our companies, our communities, our families, our nation and our belief systems. But this can all change. And it MUST change, starting today.
We who have power and leadership must be at the forefront of demanding that businesses operate with impeccable integrity, flawless ethics, and real concern for all stakeholders. We who have power and leadership must be at the forefront of demanding that leaders who fail share the pain of their stakeholders.
Lay-offs are a failure! If employees are laid off, this is a failure of leadership. The one who does it should only not get a bonus, but should take a major salary cut. This man or woman has failed hundreds or thousands of employees. They haven’t led well enough, sold well enough, or managed well enough. They’re letting moms, dads, sons, daughters, husbands and wives go, many of whom will go bankrupt and many of whom will lose their homes. This is a failure on their part and they must take some pain for it. That they get a bonus is a sign of the moral bankruptcy of American capitalism and it must change.
We must stop being executives and start being leaders. If our boards won’t go along…quit. Few if any of you will bankrupt or lose your home, unlike the people who are laid off. Most of you have made prudent investments and have managed your money well. Don’t sell your integrity for a few hundred thousand dollars…it shouldn’t be for sale. If enough of us refuse to play the crooked game that has been played in the last few years, consumers, boards, and other executives will listen. You’ll be profiled as a hero on CNN, as well as looked on as a unique animal — a business leader with integrity.
Lead with impeccable integirty and unquenchable hope! Start leading by hope and integrity today. Make a commitment to your employees as the fine people at Gambro did not long ago that they would all share the pain, if there is any pain. Make a commitment to your families that you will lead from the high road and be the mother or father, husband or wife, that they can hold their heads up about. Make a commitment to your communities that you will not let them down. And make a commitment to your country that you will demonstrate the good old Yankee values of hard work, impeccable integrity, equality of opportunity, and excellence of product. If you do less, you do not deserve your job, your salary or even a shred of respect.
There is a new day coming. I’m a “voice in the wilderness” now about this. But I’m not a lone voice. There are others. Soon we’ll be in the majority, because American business is too good to be as bad as it has been recently, and Americans as a people are too honest to allow the travesties of the last few years to continue.
There is a new time coming — one of hope and integrity and excellence. Those of you who are of the recent school that you “take no prisoners” and do anything to win had better quit now while you’re able. Because those of us who have compassion, believe in justice and equality, and insist on integrity, ethics and hope are close on your heels, and we WILL overtake you and return our great nation and its businesses to the high road.
By the way, some of my friends advised me not to write like this, as I’d probably lose business. But my integrity isn’t for sale, either. I only want to coach and help executives in transition who have integrity and honor, anyway. It’s worked for me for 28 years…I suppose it will work now.
May God bless the United States of America…and everywhere else.
J.
Monday, October 6, 2008
Making It Through The “Financial Crisis”
Sorry for the hiatus --- my wife and I have been moving from one side of town to the other. We had sold a loft we owned and lived in about 3 years ago. This was at the advice of our “C” Level clients and a banker friend. We, therefore, didn’t wind up losing tens of thousands of dollars on it, as we would have if we waited any. Developers have been building literally hundreds of new lofts in the Denver LoDo area, many of which are standing empty.
We then, again with the advice of some very money-wise people, moved into a cracker-box (and rented three storage sheds for our “stuff”) to wait out the housing crisis, which, three years ago, everyone assumed would be over in a year or so. Right. Well, to make a long story endless, when it was clear that the housing crisis wasn’t resolving anytime soon, we decided not to camp out any longer in the cracker box, and got a house that we could actually put our furniture, hundreds of books and other treasures in. And therein lies a column…
No one can predict what is going to happen in a financial crisis. I am very against “Wall Street Welfare.” We are, at least for the time being, capitalists, or, to be more accurate due to decades of encroaching government regulation and meddling, socialistic capitalists. Capitalism means that there will be winners and losers. It also means that, while there are winners and losers, no one has to be a permanent loser.
The alternative, except in a utopia, is either that everyone but the government winds up in mediocre circumstances (Socialism) or that everyone but the government is kept in poverty (Communism) or that everyone but the government and the favored corporations is kept in loss or mediocrity (Fascism…look at the actual definition of Fascism, not how it is currently used by demagogues trying to get your vote…and see why there can never be such a thing as “Islamo-fascism.). Now, call me idealistic, but I am a laissez-faire Capitalist (as well as a Libertarian, but that is a whole other Oprah). Let the free market be free and let it decide. Let there be winners and losers, and let that be determined, not by government collusion or regulation, but by hard work, serendipity and wisdom in investing. Unfortunately, my opinion is in the minority in this country of ours — which became great by the majority of those with influence being of the same opinion I am now…both as a pure Capitalist and a Libertarian.
Back to this current “financial crisis” and executive employment, however.
One thing that you never read much about unless you dig is the fact that many more people became wealthy during the “Great Depression” than lost everything. Unfortunately, my grandfather, who was an attorney and heavily invested in stocks, wasn’t one of them, or I’d be sipping Mojitos under a Caribbean sun right now instead of writing to you. But the fact is that economic conditions do not determine whether or not you’re going to be wealthy. Many other factors do.
One of those factors is making wise choices. For example, our company is actually dong quite well right now. We produced the same amount of revenue by the end of the third quarter as we produced all of 2007. And we expect another record year in 2009. The reason is simple. We have set up our company so that it does well in a boom, in mediocrity or in a recession. We’ve deliberately stayed small enough so that we can swap out “modes” in which we’re working in about a month. And I am a “news junkie” and “policy wonk,” so I have a pretty good idea what’s going on in our country and how it is likely to effect our business, at least in the short-term.
But no one can predict the long-term with any degree of accuracy. Hence, our housing odyssey.
Executives need to remember this and make a personal employment plan similar to the way we run our company. Choosing a company to run wisely is, of course, the best way to assure that your position is safe. If you are currently a CEO or COO, or have influence with these folks, it is a little late, but there is still time to ask what you can do that is counter-recessionary. Virtually any company can make money in a recession, or even a depression. While the time to plan this is during a boom, just like it is best to start networking while you’re employed, it is better to start late than never.
Our clients do quite well in a recession (and, regardless of government figures, there have been several over the last 25 years). They also do well in a boom. There is no great secret here — just good planning and a recognition that economic conditions need not be frightening if you are prepared to prosper from them.
If you are unemployed now, you are probably a little terrified. Relax. There is no reason to be. If you are well-networked, know where the unadvertised (or even as-yet-not-open) jobs are, and can get someone to introduce you to their fellow board members or executives, you will be employed again rapidly. If you are not well-networked, look at a well-connected Executive Transition Coach who can introduce you to the people you need to meet. If you’re in the Front Range/Denver, Colorado area, I’m happy to meet with you and give you some direction. If you are not, ask around to your friends and golfing partners and find a coach who is well-connected, successful, and experienced in dealing with top executives. Even the best coach will run less than a couple of weeks salary for top executives, and is the best investment in your career you can make — so long as you recognize that there are plenty of scams in this business and choose carefully.
All in all, however, don’t “buy into” the panic and fear that the media is generating. This is how they sell newspapers and news shows. Everything is always a crisis. There is always “breaking news” about some disaster somewhere. The media loves the crisis “flavor of the week.”
Getting through this “financial crisis” is not difficult. It just requires a bit of paying attention, managing attitudes and making wise decisions. As always, please feel free to give me a call if I can be of any help.
To a prosperous year,
J.
We then, again with the advice of some very money-wise people, moved into a cracker-box (and rented three storage sheds for our “stuff”) to wait out the housing crisis, which, three years ago, everyone assumed would be over in a year or so. Right. Well, to make a long story endless, when it was clear that the housing crisis wasn’t resolving anytime soon, we decided not to camp out any longer in the cracker box, and got a house that we could actually put our furniture, hundreds of books and other treasures in. And therein lies a column…
No one can predict what is going to happen in a financial crisis. I am very against “Wall Street Welfare.” We are, at least for the time being, capitalists, or, to be more accurate due to decades of encroaching government regulation and meddling, socialistic capitalists. Capitalism means that there will be winners and losers. It also means that, while there are winners and losers, no one has to be a permanent loser.
The alternative, except in a utopia, is either that everyone but the government winds up in mediocre circumstances (Socialism) or that everyone but the government is kept in poverty (Communism) or that everyone but the government and the favored corporations is kept in loss or mediocrity (Fascism…look at the actual definition of Fascism, not how it is currently used by demagogues trying to get your vote…and see why there can never be such a thing as “Islamo-fascism.). Now, call me idealistic, but I am a laissez-faire Capitalist (as well as a Libertarian, but that is a whole other Oprah). Let the free market be free and let it decide. Let there be winners and losers, and let that be determined, not by government collusion or regulation, but by hard work, serendipity and wisdom in investing. Unfortunately, my opinion is in the minority in this country of ours — which became great by the majority of those with influence being of the same opinion I am now…both as a pure Capitalist and a Libertarian.
Back to this current “financial crisis” and executive employment, however.
One thing that you never read much about unless you dig is the fact that many more people became wealthy during the “Great Depression” than lost everything. Unfortunately, my grandfather, who was an attorney and heavily invested in stocks, wasn’t one of them, or I’d be sipping Mojitos under a Caribbean sun right now instead of writing to you. But the fact is that economic conditions do not determine whether or not you’re going to be wealthy. Many other factors do.
One of those factors is making wise choices. For example, our company is actually dong quite well right now. We produced the same amount of revenue by the end of the third quarter as we produced all of 2007. And we expect another record year in 2009. The reason is simple. We have set up our company so that it does well in a boom, in mediocrity or in a recession. We’ve deliberately stayed small enough so that we can swap out “modes” in which we’re working in about a month. And I am a “news junkie” and “policy wonk,” so I have a pretty good idea what’s going on in our country and how it is likely to effect our business, at least in the short-term.
But no one can predict the long-term with any degree of accuracy. Hence, our housing odyssey.
Executives need to remember this and make a personal employment plan similar to the way we run our company. Choosing a company to run wisely is, of course, the best way to assure that your position is safe. If you are currently a CEO or COO, or have influence with these folks, it is a little late, but there is still time to ask what you can do that is counter-recessionary. Virtually any company can make money in a recession, or even a depression. While the time to plan this is during a boom, just like it is best to start networking while you’re employed, it is better to start late than never.
Our clients do quite well in a recession (and, regardless of government figures, there have been several over the last 25 years). They also do well in a boom. There is no great secret here — just good planning and a recognition that economic conditions need not be frightening if you are prepared to prosper from them.
If you are unemployed now, you are probably a little terrified. Relax. There is no reason to be. If you are well-networked, know where the unadvertised (or even as-yet-not-open) jobs are, and can get someone to introduce you to their fellow board members or executives, you will be employed again rapidly. If you are not well-networked, look at a well-connected Executive Transition Coach who can introduce you to the people you need to meet. If you’re in the Front Range/Denver, Colorado area, I’m happy to meet with you and give you some direction. If you are not, ask around to your friends and golfing partners and find a coach who is well-connected, successful, and experienced in dealing with top executives. Even the best coach will run less than a couple of weeks salary for top executives, and is the best investment in your career you can make — so long as you recognize that there are plenty of scams in this business and choose carefully.
All in all, however, don’t “buy into” the panic and fear that the media is generating. This is how they sell newspapers and news shows. Everything is always a crisis. There is always “breaking news” about some disaster somewhere. The media loves the crisis “flavor of the week.”
Getting through this “financial crisis” is not difficult. It just requires a bit of paying attention, managing attitudes and making wise decisions. As always, please feel free to give me a call if I can be of any help.
To a prosperous year,
J.
Sunday, July 13, 2008
The Top Ten “C” Level Errors
If you’ve made it to the top you have probably developed a great many skills and talents. However, in my 28 years of dealing with top executives I’ve noticed a few common errors that people at the top make time and again. Here they are, with a couple of tips on avoiding them.
10) Not taking time for your own growth. So many of my clients get caught up in the running of their businesses that they don’t take time to look at the “spiritual” and emotional sides of life. You can’t be a shallow person and a good CEO…or any kind of executive. The kind of person one is winds up being the kind of executive he or she is. Remember this and take the time to be the kind of person you’d be proud to work for.
9). Losing sight of your goals. American businesses are way too short-term oriented. We are far too focused on monthly and quarterly numbers and nowhere near enough focused on the goals of the company for the long term. While your Board and Stakeholders are demanding those numbers stay up (and you must do so), don’t forget your long-term goals. If you forget the long term, the short-term will soon be in trouble.
8). Making “money” decisions. Too many “C” Level executives make decisions solely based on the “bottom line.” Big mistake. While money must be one of the many factors in any decision, it should rarely be the sole determining factor. Look at things like community values, company values, personal values, employee and customer satisfaction and so on as well. Usually if you’re satisfying the customers and have good employee morale, some of the dollar issues take care of themselves.
7). Isolating yourself. Don’t restrict your friend and contact list to others in your same country club or who have “C” in their title. This is incredibly isolating and incredibly stupid, as well. Your friends and networking list should consist of people at many walks of life and with many titles (or no title at all). And don’t stop attending networking functions and professional associations and mingling with everyone. It is vital to your career.
6). Living an ostentatious life. There is an old saying that goes “Live simply so others may simply live.” Those of us who make large sums of money have a responsibility to the community and to others. There is nothing wrong with having a nice house, good cars, etc., but only a very shallow person lives his or her to obtain these things. They should be “perks” along the way of a life well lived.
Besides which, an ostentatious lifestyle takes lots of energy to maintain — energy you could be using for other things. Live a nice life, but a simple one. Have nice things, but don’t burden yourself with tons of “stuff.” Make the driver to be successful an internal one rather than being driven by mere acquisition.
5). Losing touch with your staff and employees. Don’t barricade yourself in your office. You should know a bit about each employee, including the custodian and be able to chat with each and every one of them. Learn the “Farley File” system (more on this in a later post) and use it. People will go to the wall for a CEO who asks how their kids are doing and really listens and cares. People are loyal to people, not to corporations. Make your people fanatic about you by caring deeply (honestly) about them, and showing it often.
4). Losing touch with your customers. Clement Stone, the mentor of Napoleon Hill and founder of one of the largest life insurance companies in the world answered his own phone and had his door open. What a great man! He never wanted to lose touch with those who “paid his salary.” Neither do you.
3). Surrounding yourself with “yes” people. Surround yourself with people who will tell you that your fly’s open if it is. Also have a “consigliere” like the Godfather did — a trusted outside “third party” advisor who isn’t afraid to tell you things like they are. A skilled executive coach who is used to dealing with “C” Level executives can be worth his or her weight in gold. You can’t make good decisions if you are always being told that you’re right.
2). Trusting the wrong people. Don’t keep a snake in your t-shirt or bra. They bite. A sycophant will turn on you sooner or later. Someone who steals for you will steal from you. Someone who lies for you will lie to you. Remember this.
And the top number one error “C” Level executives make is:
Pride. Humility is absolutely essential to success as a “C” Level executive. Remember where you came from, who you are, and that you get dressed just like everyone else in the morning, even if it is in better clothes. Remember that you’re running a business, not a Universe, and that you do not walk on water, heal occasional lepers or levitate on alternate Saturdays. You are just a plain old person who was born naked and who turn to dust in the ground. Your title and money and authority are, in the grand scheme of things, meaningless. Ask any CEO who has lost a beloved spouse or child if they wouldn’t trade all of their money and titles for one more day with that person and put some things into perspective.
This blog will have a new article about once a week or so. Please feel free to subscribe if you enjoyed this article. I intend to give some very blunt and hard-hitting advice on this weekly blog. If you find this sort of advice offensive, I will really push your buttons and you probably shouldn’t read this. But if you want to cut through the happy horsepucky you usually read from Executive Coaches, you will probably like this blog.
Feel free to give me a call at any time to chat about an article or ask a question. I also am pleased to sit down with you for coffee if you live in the Metro Denver area, or are in town for a few days, or by phone or Skype if you are outside of Denver.
All the best,
J.
10) Not taking time for your own growth. So many of my clients get caught up in the running of their businesses that they don’t take time to look at the “spiritual” and emotional sides of life. You can’t be a shallow person and a good CEO…or any kind of executive. The kind of person one is winds up being the kind of executive he or she is. Remember this and take the time to be the kind of person you’d be proud to work for.
9). Losing sight of your goals. American businesses are way too short-term oriented. We are far too focused on monthly and quarterly numbers and nowhere near enough focused on the goals of the company for the long term. While your Board and Stakeholders are demanding those numbers stay up (and you must do so), don’t forget your long-term goals. If you forget the long term, the short-term will soon be in trouble.
8). Making “money” decisions. Too many “C” Level executives make decisions solely based on the “bottom line.” Big mistake. While money must be one of the many factors in any decision, it should rarely be the sole determining factor. Look at things like community values, company values, personal values, employee and customer satisfaction and so on as well. Usually if you’re satisfying the customers and have good employee morale, some of the dollar issues take care of themselves.
7). Isolating yourself. Don’t restrict your friend and contact list to others in your same country club or who have “C” in their title. This is incredibly isolating and incredibly stupid, as well. Your friends and networking list should consist of people at many walks of life and with many titles (or no title at all). And don’t stop attending networking functions and professional associations and mingling with everyone. It is vital to your career.
6). Living an ostentatious life. There is an old saying that goes “Live simply so others may simply live.” Those of us who make large sums of money have a responsibility to the community and to others. There is nothing wrong with having a nice house, good cars, etc., but only a very shallow person lives his or her to obtain these things. They should be “perks” along the way of a life well lived.
Besides which, an ostentatious lifestyle takes lots of energy to maintain — energy you could be using for other things. Live a nice life, but a simple one. Have nice things, but don’t burden yourself with tons of “stuff.” Make the driver to be successful an internal one rather than being driven by mere acquisition.
5). Losing touch with your staff and employees. Don’t barricade yourself in your office. You should know a bit about each employee, including the custodian and be able to chat with each and every one of them. Learn the “Farley File” system (more on this in a later post) and use it. People will go to the wall for a CEO who asks how their kids are doing and really listens and cares. People are loyal to people, not to corporations. Make your people fanatic about you by caring deeply (honestly) about them, and showing it often.
4). Losing touch with your customers. Clement Stone, the mentor of Napoleon Hill and founder of one of the largest life insurance companies in the world answered his own phone and had his door open. What a great man! He never wanted to lose touch with those who “paid his salary.” Neither do you.
3). Surrounding yourself with “yes” people. Surround yourself with people who will tell you that your fly’s open if it is. Also have a “consigliere” like the Godfather did — a trusted outside “third party” advisor who isn’t afraid to tell you things like they are. A skilled executive coach who is used to dealing with “C” Level executives can be worth his or her weight in gold. You can’t make good decisions if you are always being told that you’re right.
2). Trusting the wrong people. Don’t keep a snake in your t-shirt or bra. They bite. A sycophant will turn on you sooner or later. Someone who steals for you will steal from you. Someone who lies for you will lie to you. Remember this.
And the top number one error “C” Level executives make is:
Pride. Humility is absolutely essential to success as a “C” Level executive. Remember where you came from, who you are, and that you get dressed just like everyone else in the morning, even if it is in better clothes. Remember that you’re running a business, not a Universe, and that you do not walk on water, heal occasional lepers or levitate on alternate Saturdays. You are just a plain old person who was born naked and who turn to dust in the ground. Your title and money and authority are, in the grand scheme of things, meaningless. Ask any CEO who has lost a beloved spouse or child if they wouldn’t trade all of their money and titles for one more day with that person and put some things into perspective.
This blog will have a new article about once a week or so. Please feel free to subscribe if you enjoyed this article. I intend to give some very blunt and hard-hitting advice on this weekly blog. If you find this sort of advice offensive, I will really push your buttons and you probably shouldn’t read this. But if you want to cut through the happy horsepucky you usually read from Executive Coaches, you will probably like this blog.
Feel free to give me a call at any time to chat about an article or ask a question. I also am pleased to sit down with you for coffee if you live in the Metro Denver area, or are in town for a few days, or by phone or Skype if you are outside of Denver.
All the best,
J.
Friday, July 11, 2008
Welcome!
Welcome to the CEO Skills Corner. This new blog will exclusively address the skills and concerns of "C" Level executives in corporate America.
This blog will receive new articles at least weekly on a variety of topics. Of course, I always welcome your questions and comments, and will do my best to address them either personally or in an article. If you're asking a question, it is likely that many of your colleagues have a similar concern.
Who am I and why should you spend the time reading my articles? For the first post, here is my bio.
John Heckers, MA, CPC, BCPC is President of Heckers Development Group, LTD, an executive coaching and consulting firm based in Cherry Creek, Colorado, specializing in high level Executive Coaching, Corporate Training, Executive Transition Consulting and Strategic Corporate Coaching. John has consulted to both Fortune 500 and smaller companies, and has trained and coached executives from AT&T, New Horizons Computer Learning Centers, Microsoft Corporation, IBM, Maxtor/Seagate, The Prudential, United Airlines, Children’s Hospital, Concentra Health Systems, Merck-Medco, Hewlett/Packard, Citibank of New York, Corporate Express, Stryker Corporation, Qwest, First Data Resources, FEMA, The United States Armed Forces, and many other organizations. John has over 28 years of experience in helping and counseling executives, professional counseling, executive transition (career) counseling and professional training.
John Heckers is published both nationally and internationally as a business columnist, is featured as an employment blogger for ColoradoBiz Magazine Today on-line, on the Jobing.com website (Jobing.com is a national job board and employment advisory website), has served as an employment expert on the Diversity Website Latpro and served as the internationally syndicated employment columnist for The Denver Business Journal and the national and international online bizjournals.com for over 6 years. His articles have been syndicated in business journals across the United States and Canada, and has also had his articles republished in business periodicals in Europe and Asia, translated into five languages. He has had frequent appearances on numerous television news programs and radio talk shows as an employment expert, including Denver’s KCNC, WB2, and KHOW radio, among others.
John Heckers graduated with his Baccalaureate degree in Psychology and Philosophy from the University of Colorado at Boulder in 1977, did graduate studies at the University of Toronto, Trinity College, in 1978 and 1979, and graduated from Denver’s Iliff School of Theology with distinction with his Master of Arts degree in 1989.
He is past president of the Colorado Association of Psychotherapists, served on the boards of directors of the Jefferson Center for Mental Health, the Rocky Mountain Information Management Association, and the International Attention and Behavioral Institute. In 1995, Heckers was appointed by Governor Roy Romer to the Colorado State Mental Health Grievance Board, where he served for three years. He also has served as a Senior Research Fellow for the Magellan Center, a non-partisan and not-for-profit think tank in Colorado devoted to employment issues.
So, there you have it. You may expect a new post on this blog in the next couple of days. If you’d like to know whenever we update, don’t forget to subscribe via the link on the sidebar.
Thanks, and I look forward to having you as a regular reader.
John H. Heckers, MA, CPC, BCPC
This blog will receive new articles at least weekly on a variety of topics. Of course, I always welcome your questions and comments, and will do my best to address them either personally or in an article. If you're asking a question, it is likely that many of your colleagues have a similar concern.
Who am I and why should you spend the time reading my articles? For the first post, here is my bio.
John Heckers, MA, CPC, BCPC is President of Heckers Development Group, LTD, an executive coaching and consulting firm based in Cherry Creek, Colorado, specializing in high level Executive Coaching, Corporate Training, Executive Transition Consulting and Strategic Corporate Coaching. John has consulted to both Fortune 500 and smaller companies, and has trained and coached executives from AT&T, New Horizons Computer Learning Centers, Microsoft Corporation, IBM, Maxtor/Seagate, The Prudential, United Airlines, Children’s Hospital, Concentra Health Systems, Merck-Medco, Hewlett/Packard, Citibank of New York, Corporate Express, Stryker Corporation, Qwest, First Data Resources, FEMA, The United States Armed Forces, and many other organizations. John has over 28 years of experience in helping and counseling executives, professional counseling, executive transition (career) counseling and professional training.
John Heckers is published both nationally and internationally as a business columnist, is featured as an employment blogger for ColoradoBiz Magazine Today on-line, on the Jobing.com website (Jobing.com is a national job board and employment advisory website), has served as an employment expert on the Diversity Website Latpro and served as the internationally syndicated employment columnist for The Denver Business Journal and the national and international online bizjournals.com for over 6 years. His articles have been syndicated in business journals across the United States and Canada, and has also had his articles republished in business periodicals in Europe and Asia, translated into five languages. He has had frequent appearances on numerous television news programs and radio talk shows as an employment expert, including Denver’s KCNC, WB2, and KHOW radio, among others.
John Heckers graduated with his Baccalaureate degree in Psychology and Philosophy from the University of Colorado at Boulder in 1977, did graduate studies at the University of Toronto, Trinity College, in 1978 and 1979, and graduated from Denver’s Iliff School of Theology with distinction with his Master of Arts degree in 1989.
He is past president of the Colorado Association of Psychotherapists, served on the boards of directors of the Jefferson Center for Mental Health, the Rocky Mountain Information Management Association, and the International Attention and Behavioral Institute. In 1995, Heckers was appointed by Governor Roy Romer to the Colorado State Mental Health Grievance Board, where he served for three years. He also has served as a Senior Research Fellow for the Magellan Center, a non-partisan and not-for-profit think tank in Colorado devoted to employment issues.
So, there you have it. You may expect a new post on this blog in the next couple of days. If you’d like to know whenever we update, don’t forget to subscribe via the link on the sidebar.
Thanks, and I look forward to having you as a regular reader.
John H. Heckers, MA, CPC, BCPC
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