Category: Business Commentary

We’ve Changed, Just Ask Us

Wall_street_2

I think Wall Street would be a great place to hold a retro Greek Tragedy.  When you think about it they have all the elements you’d need:Hypocrisy

Hubris

Weeping

Comedy

Fear

Who could ask for more?  The Motley Fool has a great article on the rating agencies’ (Moody’s, S&P, etc.) tell of woe.

Now remember folks, no one is to blame and we’ve changed, just ask us.  That would be a great PR campaign for Wall Street.

Fear and greed still lives.

American Express and Credit-Ability

Last week I received a letter from American Express explaining a credit decision made without my request.  One of those random reviews I suppose.  I decided to call them and ask for an explanation.  Keep in-mind, American Express usually shines when it comes to service-with me.  But on the day I called i was talking with….CREDIT OPERATIONS (hear the foreboding music).

Credit operations at American Express told me the decision was made based on their inability to find my D&B number.  I told the representative not to worry, because I had the number handy.  She gave two distinct warnings:

  • Providing the number might not change the decision
  • Don’t call customer service (American Express customer service) when I check to see the status.

Some might think it would be a little strange for American Express to act this way, but I don’t.  Do you think it was a coincidence that I received a letter around the same time American Express announced setting aside $450+ million in loan loss reserves in the fourth quarter of 2007.  Maybe it was just me being paranoid and upset.

Do you think the senior leaders at credit operations thought about the impact on me-the customer.  Or do you think American Express was just knee-jerking their way to a credit decision?  American Express needs to remember that at the heart of every transaction is the customer.  Their opinions and feelings will impact the loyalty they have for the "brand."  When an organization ignores this, negative consequences usually appear.  Just ask Countrywide.

I still don’t get the "don’t call customer service" speech.

The McDonald’s Complex

You’ve probably already heard about McDonald’s plans to enter the world of gourmet coffee(Starbucks, Caribou, etc.).  I’m just wondering if McDonald’s really believes this fits their brand.  I’ll leave the in-depth marketing analysis to Seth Godin.  But for my money, I don’t get it.  Since I don’t frequent McDonald’s, maybe I’m not the person to ask if I would go there versus Starbucks.  Last time I checked McDonald’s was a place to go to get what you want fast. 

From what I understand Starbucks isn’t concerned.  You can look at this article from Forbes and get a feel for the pulse.

Here’s how to avoid the McDonald’s Complex:

  • Know your purpose and the mission, and then stick to it.
  • Envy is not a good motivation to start-up or expand-into.
  • You’re not a publicly traded organization, so don’t act like one.
  • Ask your trusted advisor(s) whether a BIG move is wise.  By the way, this advisor should NOT be impressed by you.
  • Know thy brand well.

What’s Your Exit Strategy

My friend Brent told me once that many professionals lack an exit strategy.  I agree.  If you think what you’re doing today will last forever you’re…well…crazy.  This comes from a man who has had more than one balloon popped by change.  It took me a number of years, but now I see change as a friend and not an enemy.  Your next chapter is inevitably held up by hanging on when you should let go, and man is it tough to let go.

Disclaimer here; if you’re called to see it through to the end, even when the odds are against you, then you should do it.  That’s destiny at work.  When I was ceremoniously escorted out of corporate America all of my exit doors were shut before I could do anything…or so I thought.  Don’t mean to make you wince, but I was supposed to lose.  I was supposed have things turned upside down.  Without those events, I’m confident I wouldn’t be the man I am today. 

In many ways and exit strategy can be a win masked as a loss.

See this piece from the The Washington Post on the record industry.  What a last gasp for air. Do you think the RIAA (Recording Industry Association of America) needs an exit strategy?  Can any individual or organization afford to not have one?

Another Year, Another Annual Performance Review, Another Yawn

I know its early, but annual performance reviews/appraisals are just around the corner.  What fond memories I have of these dances-not!

I heard once that Steve Jobs had a habit of going around to Apple employees and asking them to justify their existence in the organization.  I don’t know if this is true or not, but I think there are a number of managers that would benefit from an interaction like that one. 

What value does the employee gain from the experience of annual performance reviews?  Not much if they work for an organization that allows managers to do it only once a year.  In fairness to a number of managers, they’re so overwhelmed with meetings, reports and power point presentations, that effectively leading their people is nothing more than an afterthought.  Sort of like our physical and mental health; we don’t have time to strengthen our bodies because we’ve got a career to manage. 

Annual performance reviews should be reinforcement of what has been discussed and inspired over the previous year.  A former business partner (direct report in corporatese) and I had some of the quickest annual conversations you could imagine.  Since we communicated on a regular basis (at least three times per week), we knew what the state of the State was.  Some may ask how I had the time to do this.  It was hard and yet simple; know what’s important and be allegiant to that person, event, project, etc.  That meant that all the other stuff would have to wait.

Here’s how to make your annual performance review effective and inspiring:

  • Do your annual reviews every week.  This makes the final one clear on your part and the person you’re leading.
  • Don’t insult the intelligence of your people by pretending your interested, if you haven’t been all year. 
  • Inject some humility into your management/leadership blood if the second bullet describes you.
  • If you’re on the receiving end of an unprepared or a never-spoke-much-in-the-previous-year type review, then start asking yourself some hard questions about your employer and/or boss.
  • The review should add fuel to the fire of the organization’s and the employee’s vision.  It should not be a dance-for-bonus charade.

If you’re the employee who received a poorly executed review, just remember that IT IS NOT YOUR FAULT.  Trust me, it is not your fault.  Corporate America has some serious issues here and you may be like a former colleague I saw over the holidays; he fired his boss.

Power Article

You can view the article on power I wrote for BizJournals here.  A subject that goes largely unaddressed in corporate America.  With all the damage done, you’d think there would be great urgency around it.

Here’s to all of you who are willing to tackle it.

How Elitism Can Poison You and Your Organization

When an organization gets lazy and just reads from the manual, they have probably embraced elitism.  Some might call this plain old laziness.  Individuals can make the same fatal mistake too.  Just take a look at many senior leaders in corporate America today. 

You can reach elite status in many ways.  You may work in corporate America and just got a big promotion or your organization may have been profiled in the latest issue of Fast Company too.  Above all its about a mindset.  Organizations, and people, who take the path to elitism are destined to fail.  Why?  Elitism is built on the idea that you are superior to everyone (even those who truly are better than you are).  The subtle deception of elitism is found in the irony of outward success, but inward waste. 

Here’s how to know if you’re (individual) an elitist…some of these can be applied to an organization as well:

  • You’re not willing to listen to the voice of others.
  • You look for your work to validate who you are.
  • You think you’re the only one with the answer.
  • You spend a lot of time defending your policies and procedures.
  • You’re suspicious of others in the organization because they think differently.
  • You don’t have an exit strategy.
  • You are not well liked, but you think you are.

Is there hope for you?  Yes, but elitists often die-hard.  Authentic change begins with a decision to turn around.  Your future will be defined by the choice you make.  Just ask Neo:

Standing for Something

I stand for people and not institutions/organizations.  It’s the people, good or bad, who make companies what they are.  If you’ve read my blog for any length of time you’ll notice a trend toward you (people) and not the organization.  When you’re for the organization you tend to see people as a means-to-an-end.  That’s a dangerous place to transact in.

This piece from Inside Work takes a look at Dame Anita Roddick.  If you’ve ever purchased products from The Body Shop, then you know her because she was the founder of that company.  You may have admired her or hated her, but she stood for something.  She wasn’t perfect, and by the way that’s not a requirement for standing for something.

When you evaluate yourself what comes to your mind?  What about the company you work for or own?  Maybe most importantly; is what you stand for being lived out consistently?

I have some thoughts that may help as you make your way through this journey of making a stand:

  • Have you made up your mind yet?  I’m referring to a decision to cross the Rubicon.  You can’t stand for something until you do this.
  • Accept that not everyone will like you for what you stand for.  Resistance and conflict are crucibles for those that take a stand.
  • Playing it safe will commence your funeral even though you’re still breathing.
  • More often than not what you stand for is part of greater plot (your destiny).
  • Everyone stands for something, whether you know it or not.  It’s sort of like you choose or it will choose you.

Wall Street Amnesia

Today’s news on Wachovia Bank is unsettling for some.  You can read more about Wachovia’s earnings here.

I find it fascinating how Wall Street (Gambling Street if you see it like me) moves into markets like subprime with great force and focus.  Only to get quiet when the chickens come home to roost.  C’est la vie…

What does this say about leadership and your career?  I think the following considerations are in order:

  • Make sure you really want to be doing what your doing.  Have your eyes wide open and see the organization for what it is and not what you dream.  In other words, embrace reality!
  • Have advisors and mentors that can see things that maybe you miss.  You might be thinking that you could never leave a place like Wachovia because your vested.  A mentor might be able to point out that all investments (retirement or otherwise) are portable.  He/She might also tell you that your bored and need a new challenge.
  • Leadership is formed and lived out in integrity.  Pay attention to why your organization decided to invest in subprime securities.  If the leaders has integrity they should be able to answer the question.  If the leaders can’t give a straight answer, watch out!
  • Don’t let your identity (position, power, money, office location) get wrapped in your career.  Doing this leads to blindness.
  • Any lasting legacy (if that’s what you want) will be made up of things that never paid you a dime.  Take a look at your spouse or kids on this one.