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How to Build Trust in a New Job

How to Build Trust in a New Job

Many leaders in transition often do things that damage their career success. Leaders are most vulnerable during this time because they are developing new relationships, trying to affect change, and feeling pressure to meet the high expectations of others.

To put these principles into action, leaders need a six-point agenda:

  • Get an early start. Before starting a new position, learn about the company’s history, culture, strategy, competitors, and learn the names and responsibilities of colleagues.
  • Meet and greet. Meet as many people as possible, especially the informal leaders or influencers. Tools such as email, voice mail, or the company newsletter are helpful, but should not replace face-to-face meetings. Many leaders get too caught up in pleasing the boss, or in solving problems, at the expense of those who will execute the changes. Making time to listen to even the most disgruntled employees will pay off in more trust and connection.
  • Learn the critical success factors. Identify areas where the most impact or improvement can be made. Focus on one or two, ask a lot of questions, get input from key opinion-makers, and when make recommendations, back them up. Also learn what is going well, and how to leverage those areas by building continuity from the old to the new.

Learn the critical success factors.

  • Set clear priorities. At the start of any new role, you need to decipher what is important, and what is not. And then constantly reassess the message. In developing your top priorities and vision, you will gain a dear focus, demonstrate credibility, and establish a clear cause for people below to rally behind. Make sure to involve key people, as they will offer more support for what they helped create.
  • Secure early wins. During the first 100 days, a leader wants people to feel that something is different, something good is happening. Celebrate some early successes to gain the confidence of followers. To secure early wins, first identify problems that can be tackled and solved quickly, and whose solutions will yield highly visible results. These few small wins will also demonstrate competence and consistency that provides the trust for larger initiatives.
  • Plant seeds for the future. The momentum that began with small wins must be leveraged to support your longer-range vision of the future. Small change is easy, but transformational change will require coalitions of support. By including a few key individuals in your planning, you will build “referent trust” that will cascade to a broader audience as you move forward.

Sure distrust is high, leaders need to build trust early in their tenure.

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Posted in Education and Career

Why You Need a Mentor & How to Make the Most of a Mentorship Experience

Mentorship Experience: Bill Gates and Warren Buffett A mentor can be an important catalyst for career development. It’s important, therefore, to take the initiative and seek a mentor, either within or outside one’s workplace. Mentoring refers to a developmental relationship between two people where the more experienced person, or the mentor, acts as a teacher, coach and guide to the mentee, who is seeking to move ahead in education, career or life in general. Let’s take a look at what can be gained from having a mentor at this stage in your career:

  1. Perspective and Experience. A mentor can give you the benefit of his or her perspective and experience. He or she can help you assimilate to a new position and give you an insider’s view on how to get things done.
  2. Think Outside the Box. A mentor can help you look at situations in new ways. He or she can ask hard questions and help you solve problems.
  3. Define and Reach Long-Term Goals. A mentor can help you define your career path and ensure that you don’t lose focus and continue down that road even when you become distracted by day-to-day pressures.
  4. Accountability. When you know you are meeting with your mentor, you ensure that all the tasks you discussed in your last meeting are completed.
  5. Set Realistic Expectations. Idealism can be very detrimental to teachers. Think of a mentor whom you consider great. Seasoned professionals can share their failings and consequent learnings with their mentees. This will provide a foundation for accepting failures as inevitable and recoverable. Growth and learning are uncomfortable. Feeling that way is normal and expected. If you let them know it is going to happen, then it reduces fear.
  6. Trusted Colleague to Discuss Issues. A mentor can be a great sounding board for all issues—whether you are having difficulty with your immediate supervisor, an ethical dilemma, or need advice on how to tackle a new project or ask for a raise.
  7. Champion and Ally. A mentor who knows you well can be a strong champion of your positive attributes and an ally during any bumpy spots in your career. You get the insights and hindsight perspective that comes with first-hand knowledge.
  8. Expand Your Contacts and Network. A mentor can help expand your network of contacts and business acquaintances.
  9. Open Doors. A mentor can open doors within your company, in other companies, or onto a board.
  10. Inspire. A mentor whose work you admire can be a strong inspiration. A good mentor will positively impact your morale and engagement, leading to increased effectiveness in your current role.
  11. Work Better. With the help of a good mentor, you can work more efficiently with a clearer view of the future you are trying to achieve. This helps you feel more confident in your job, which leads to better job performance and more success along your chosen road.

Making the Most of the Mentorship Experience

How to Make the Most of a Mentorship Experience

  • Don’t just settle down for instructional mentoring. Instead, work on building fuller developmental relationships with mentors who help you build confidence and credibility within the workplace.
  • Don’t mistake mentoring and coaching with friendship. When selecting a mentor, choose someone you really respect and has the respect of the company you’re in.
  • When investigating new job options, talk to current employees and look at the company’s record of accomplishment in mentoring. Critically important is choosing the right environment.
  • Don’t be afraid to discuss race, ethnicity, and gender issues with your mentor, as these may significantly impact assignments, promotions, and perceptions about you within the workplace. Engaging your mentor in honest discussions can strengthen your lines of communication over the long-term.
  • Signal to the mentor that you’re willing to work around your weaknesses, that you don’t want to just be acceptable but exceptional.
  • Challenge your mentor to challenge you. If you’re stuck in a professional rut, seek your mentor’s guidance on opportunities that stretch your current talents and skills.

Realize that your development is ultimately your responsibility, whether or not your company offers formalized mentoring programs. But mentors will help you stretch yourself in ways that you might not have tried without their encouragement.

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Posted in Management and Leadership Uncategorized

Thinking Outside the Box Frustrates Leaders

Innovate with Less

Do you want to innovate with less, to see and play with patterns to achieve extraordinary results? Then stop thinking outside the box and get back into the box of your discipline, organization, and life. Rearrange what you have.

No one is going to give you more resources until you prove yourself. And the greatest outside-the-box (OTB) thinking will get you fired, discredited, and maybe killed if you can’t solve an immediate problem-now.

Everyone wants to think outside the box. But where’s the practical side of OTB problem-solving? It creates tension between innovative “outside” learning and the everyday constraints of a real job. Thinking OTB frustrates leaders who have to solve problems back inside the box of their work. OTB thinking denies our vital problem-solving capacity.

So I start in the toybox. I adapt lessons from how kids play to help adults at work. Play unleashes our performance innovation potential.

Unfortunately, our workplaces and our world also isolate innovators. So, thinking OTB doesn’t work for what many people need. When people return after an off-site retreat, they encounter unfinished work and resentful colleagues. Result: increased dissatisfaction with themselves, their work, and the innovation process.

We must innovate with less at work in order to see and play with patterns across multiple arenas of our lives, to achieve goals with what we have now, within the day-to-day realities.

Inside the Box: A System of Creativity

Inside the Box: A System of Creativity

To think inside the box, choose the right box and start playing your best game. Try taking these seven steps:

  1. See Mud, Find Grid. We work in mess. And the mess holds the key to improving our performance. If we can see and play with patterns we uncover in the mess of work, we can make decisions that will provide solid business value. No more indecision. We have to wade in the mud to grab the grid within. We have to find new ways to see and dig into our workplace mess. We must unearth powerful patterns that we can change. And we have to do it cheaply, quickly, and safely. But how? You guessed it: Think inside the box.
  2. Accept Your Messy Box. Welcome to work in our supposedly sparkly clean and tidy “knowledge economy.” Don’t spill on your computer. Print that spreadsheet. Get your feet off the desk! Work hasn’t always been so orderly. Our modern workplaces hide our messes behind reports, delicately presented in slick slide-shows by fashionable professionals. Thus, we miss the mess. Deal with the fact that you have to work inside a messy box filled to the brim with the murky politics, limited resources, pain, and pressure that come with earning a living and making a life through work. Now use your skills, talents, expertise, and creativity within the constraints of your workplace-your box-to innovate and excel.
  3. 'Inside the Box' by Drew Boyd (ISBN 1451659296) Name Your Mess. Mess is unfamiliar complexity. Today, leaders face more complex and unfamiliar challenges. Mess fills the gap between where we are and where we want to be. Define your stakeholders’ environment, resources, barriers, and opportunities into patterns for change, and you simplify their mess and maximize your effectiveness. Mess is unfamiliar, so fear it, right? Try again. We can’t think right when we sense fear. Innovative problemsolving inside the box defuses fear. You manage mess in a safe, familiar, dynamic, and respectful environment. Mess can be found and managed in three areas of performance: 1) internal dynamics-team-building, office politics, workplace communications, language, and culture; 2) external trends and influences-market forces, social norms, popular media; and 3) constant environmental change-restructuring, disintermediation, cultural diversity. Inbox thinking helps people change complex messes into defined barriers to excellence. With less stress, leaders identify next steps to solve messes just in time.
  4. Find Your Crystal Question. Want some change? You gotta ask. Define a critical question (related to issues, value, urgency, and meaning) to answer for your innovation springboard. Sometimes it’s easy to do; sometimes you’ll need help. I call this the “crystal question.” Find it. Here’s how: Summarize critical needs. Prioritize. Identify a change objective in language that has meaning for you. Reframe as a question. No off-site retreat necessary. Grab some paper. Start writing it down now.
  5. Use Only Four Words. You don’t have a lot of time. Find four key words that will crack open your box, unleash the mud, and reveal the grid. Use these four words to frame positive change in the first seven seconds of your call to action with your staff, boss, spouse, or others. An example: For one session, I wanted participants to see their creative power. The four words? “I am a poet.” The word POET then became an acronym for four activities. Whether the four words are a full sentence or four categories of change, you can use this to clarify your strategic innovation plan. The four words also help you make your message consistent when using different media (handouts, spoken word, slides, activities).
  6. 'The Art of Invention' by Steven Paley (ISBN 1616142235) Play More. You’re in the box. You’re in the mess. You have some tools to clear things up. Now you get to work.. .right? Wrong. Now you play. Before you go cleaning up the grid, first play with the mess. If you ignore the mess, the fear remains, more mess will build, and no change will stick. But people hate mess! No one wants to talk about it, much less play. Be creative. Defuse the fear. Find a safe harbor that can stand in for the mess-as simple as a cartoon you use to “hook” your audience or as complex as a structured series of activities around a relevant metaphor. Remember the key: Ground what you use in your crystal question. Above all, practice! You must play with the mess yourself, and then try it with trusted others. Make mistakes and learn from them. Many baskets, many eggs. Find many patterns for change, and activities to purse, since some workers may not respond. Trust your gut instincts and watch your audience. If it isn’t working, do something different. Also, be aware of your own patterns and habits-they can be part of the mess.
  7. Share Your Mess. See learning shift as your participants explore and manage the mess. In-box thinking allows people to use cognitive skills they may not use to solve problemsskills we use when we play.

Model Enthusiasm for Creativity, Support Success

Model Enthusiasm for Creativity, Support Success

Model learning through appreciation. Create respect. Openly express new insights. Praise ideas and new ways to think. Build excitement and commitment. Discover another way to interpret mess: “Model Enthusiasm, Support Success!” Process your mess. Devote time to debrief. Get people to apply their new clarity and ideas at work. Document and prioritize tasks, then act. Co-create responsibility. Hold each other accountable to make the patterns change after you in-box think. Here are some tips for playing in the box:

  • Participants will change your mess.
  • Be open. You can’t predict results.
  • Allow yourself to learn together.
  • Use simple, cheap, accessible stuff-pads and paper, markers, and toys.
  • Your passion can make it work.

Evaluate, celebrate, improve. Get feedback-formal (evaluation forms) and informal (hearsay)-on the change process. Reward yourself and your team for effort.

Congrats. You’re out of the box. Now get back in. Take the lessons you learn to make a better mess next time! The patterns you see, the ways you play, and the successes you stimulate may differ from one change effort to another. The principle remains the same: Use play to think inside your box to see patterns and options in new ways.

Our workplaces, our world, and our future depend on our ability to see and play with patterns in new ways. Luckily, we’re all experts. And, while it’s hard work, it can be a lot of fun.

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Posted in Management and Leadership Mental Models and Psychology

Employees Must Have a Vested Interest in the Success of the Business

Robert Frost once said, “Isn’t it a shame that when we get up in the morning our minds work furiously—until we come to work.”

In the new economy, we need to equip people to think and act like owners. Everyone must come to work fully engaged and ready to make difference. A global revolution is under way, and it calls for gutsy leaders—people who can inspire knowledge workers idea merchants, and business innovator to exercise their own brand of leadership. The future belongs to those who use the power of culture to feed the entrepreneurial spirit.

Here are eight ways you can create a culture where people have a stake in the success of your business.

  • Employees Must Have a Vested Interest in the Success of the Business Recognize that ownership is more than a stock certificate. Ownership is a state of mind, a way of looking at the world and approaching work. Owners are people who step out from behind titles and job descriptions to act on behalf of the customer and the company. Non-owners hide behind position descriptions (“It’s not my job.”) and throw problems over functional walls (“Let me transfer you to…”) as an excuse for inaction. Owners cater to the purpose of the organization—its mission, vision, values, and strategy. Non-owners cater to the boss. Owners focus on the business results of their actions regardless of who is watching. Non-owners focus on the chain of command Owners ask the tough question: “How can we make it better?” Preoccupied with safety, non-owners gravitate toward the comfort of the status quo where things are more predictable and less disruptive.
  • Develop leaders who know how to liberate talent. Ownership is about giving people the freedom to act and removing the fears that cause lack of initiative. Unforgiving, zero-defect cultures foster cautious inactivity that kills the ownership mentality. People who don’t feel safe live under an umbrella of fear that makes them reluctant to make decisions, own problems, admit mistakes, take on projects, and act in ways that grow the business. When people cling to safety, they have no commitment to ownership; accountability vanishes, and self-preservation arises. Ownership is trusting that employees will operate with the company’s best interests in mind. Putting our trust in these people tells them that we think they are trustworthy. It suggests that we have faith in their character and competence. It boosts their self-confidence. Strengthen a person’s self-confidence and you strengthen his or her ability to think and act like an owner of the business. Herb Kelleher, Southwest’s chairman, says, “You build self-confidence when you give people the room to take risks and fail. You don’t condemn them when they fail. You just say, “We’ve just spent a good bit on your education; we hope to see you apply it in the future.”
  • Build a corporate culture of employee ownership Lay out the guiding principles. As a leader, you have to be confident that when the decisive moment comes, those who have assumed ownership will exercise common sense and good judgment. As the one assuming ownership, you have to be confident that what you are doing is the right thing because, after all, with ownership comes responsibility and accountability. Exercising good judgment and doing the right thing result from a clear understanding of the company’s guiding principles. Your firm’s business purpose and strategies, its mission, vision, values, and philosophy all define those principles. In essence, they create a set of helpful boundaries. When the boundaries are clear, employees have more freedom to step up, take action, and assume ownership for getting things done. When the boundaries are fuzzy, people get nervous and cautious. The result is a culture characterized by compliance instead of commitment.
  • Help people become business literate. When people understand how revenues and costs translate into profits, they become business literate. How many people on the front lines of your organization understand how the company makes money? How many of them are capable of reading a financial statement? If you asked them how much it costs to run their part of the business, could they tell you? How can we expect them to cut costs if they don’t know what those costs are to begin with? When people start asking cost questions, they are starting to think and act like owners of the business. The true experts are people at the point of action. Smart leaders open the books and equip these people with the financial information they need. When employees become business literate, they look for ways to drive costs down.
  • Make information relevant, fun, and interesting. The key to creating business literacy is getting people to internalize the information. If busy people do not see the information you put out as relevant, fun, and interesting, they are less likely to use it or be impacted by it. Information is relevant only when it is useful. If the salespeople at Sears knew that only three cents out of every dollar shows up as profit at the end of the day, they might be more passionate about watching costs and serving customers. Southwest Airlines’ annual profit-and-loss statement is written simply and illustrated with icons and cartoons, making it compelling to read and easy to understand.
  • 'The Truth About Employee Engagement' by Patrick Lencioni (ISBN 111923798X) Eliminate the “class” mentality. Leaders who are serious about leveraging the knowledge of every person must also eliminate the “class” mentality-socially prescribed or stereotypic boxes. This mentality undermines work in three ways. First, it strips the individual worker of his or her dignity and lowers morale. It essentially says, “We don’t believe in you enough to trust you with this information. It ensures that power resides at the top and widens the gap of inequality. Second, it doesn’t capitalize on people’s knowledge. The company pays for insight it never receives. Third, it crushes the entrepreneurial spirit. People stop caring, learning, and growing. When a financial statement is written so that only a CFO can understand it, forget about getting the frontline involved in a dialogue about cost containment. You breed compliance versus commitment. If your frontline people aren’t interested in reading a profit-and-loss statement, assess whether your information is too complicated or too mundane to capture their interest.
  • Show people how the business affects them personally. Most of the 18-year-old ramp agents at Southwest are business literate. They know that when they push a plane just 30 seconds late, that delay could translate into one hour and 45 minutes at the end of 11 flights in a day. Southwest would have to add 35 more planes at $30 million each to maintain its schedule. That could mean wage concessions, profit sharing, and lowered job security. They know how their job performance creates results, and how those results affect their lives. Southwest has made information relevant and interesting to its employees.
  • Give people a stake. Stock options and profit sharing can be powerful incentives to think and act like owners. However, just because people have stock options, they won’t necessarily think and act like owners. When you offer stock options and profit sharing without the culture to support these motivational tools it’s like putting new tires on a car that needs an alignment. When you add stock options and profit sharing to the rest of this list, you reward and reinforce people for behaving in ways that are consistent with an established culture. In doing so, you leverage the power of the incentive!

Build a corporate culture of employee ownership.

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Posted in Management and Leadership Uncategorized

Gettysburg Address: A Reaffirmation of a Founding Principle of the United States

A painting of Abraham Lincoln giving his Gettysburg Address by J. L. G. Ferris (c. 1900) Abraham Lincoln’s Gettysburg Address wass a reaffirmation of a founding principle of the United States: that all humans are born equal.

The Battle of Gettysburg took place during July 1–3, 1863, and resulted in the retreat of General Robert E. Lee’s Army of Northern Virginia from its incursion into Union territory. On November 19, months after the battle, President Abraham Lincoln (1809-65) attended a ceremony dedicating a national cemetery at the Gettysburg battlefield site. The Gettysburg Address is the speech he gave to the assembled crowd at the ceremony, and it is widely celebrated as one of the most important and influential political speeches in the history of the United States. Abraham Lincoln said in the Gettysburg Address,

… wehere highly resolve that these dead shall not havedied in vain- that this nation, under God, shall have a new birth of freedom- and that government of the people, by the people, for thepeople, shall not perish from the earth.

When President Lincoln delivered his address, he was second on the bill to Edward Everett (1794–1865), a famed orator who gave a two-hour-long speech to the assembled crowd. Lincoln’s speech was incomparably shorter, lasting no longer than two to three minutes, and encompassing about 250 words. Yet in that speech, the president reflected the ideals expressed in the Declaration of Independence (1776), the founding document of the American nation. His simple, eloquent expression of the notion that the nation was founded for equality, and for the good of all people, not once referred to slavery, the Confederacy, the Union, or any of the political issues of the day.

It is unclear what the reaction to Lincoln’s speech was at the time, after less than two years after giving it the president was dead and the civil war over. However, the impact of the Gettysburg Address lived on as a model of political rhetoric, oratorical simplicity, and political ideology. The speech turned the nation’s political attention toward the unifying ideal that all people are born equal—an ideal that is almost universally assumed today.

The Gettysburg Address is credited as being largely responsible for the introduction of that ideal into U.S. political discourse, and it remains an important political reference point today.

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Posted in Philosophy and Wisdom

GE Capital Aviation Services: A Fantastic Asset for General Electric

GE Capital Aviation Services: A Fantastic Asset for General Electric

Of the 12 firms that constituted the initial Dow Jones Industrial Average in 1896, General Electric Company (GE) is the only one yet on the list. For more than a century, it has been one of the most successful companies in the world, well-liked for its products, culture, and series of dedicated chief executives.

In 2015, GE assertively moved to wind down GE Capital, which was a considerable but volatile driver of earnings. After selling large portions of its financial business over the past few years, General Electric (GE) has finally shed the “too big to fail” designation. This is for the most part completed, and the residual specialty finance segments have understandable ties to the company’s principal industrial business, such as aircraft leasing. Investors should gain from a much smaller, better-capitalized GE Capital over the long run. Barclays analyst Scott Davis calls one remaining piece of GE Capital, GECAS, GE Capital Aviation Services, “a fantastic asset.” Barclays explains,

GECAS is a fantastic asset, making up more than half of the GE Capital verticals’ asset base and almost 3/4 of its profits/cash. Aircraft leasing is a lucrative and relatively stable business with favorable cyclical and secular market dynamics. The market is becoming an oligopoly with increasing concentration amongst a few key players, and GECAS is the clear leader. Large global players benefit from significant advantages, including large discounts to the latest next-gen aircraft and valuable relationships with top-tier airline customers. From a cyclical perspective, air traffic growth remains strong and lower oil has resulted in strong airline customer profitability. There are also secular tailwinds from a growing global middle class, as well as airlines increasingly choosing to lease their fleets.

'General Electric and the Pursuit of Profit' by Thomas F. O'Boyle (ISBN 0375705678) During the Jack Welch tenure, General Electric benefited from the evolution of financial services in the American economy and the growth of GE Capital. That strategy backfired in 2008 with the arrival of the financial crisis. General Electric had no competitive advantage in financial services. If anything, their risk controls were even inferior to those at other large financial institutions.

Barclays also says GECAS is an asset that’s underappreciated by investors: “We estimate that GECAS will help deliver ~$1.3–1.4B in run-rate free cash flow going forward… not an insignificant amount relative to GE’s ~$9B Industrial FCF in 2016.”

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Posted in Airlines and Airliners Business and Strategy

Best Practices for Onboarding New Employees: Maximizing Success

Benefits of Employee Retention Strategies

Guide to Employee Onboarding Best Practices

Often new hires leave too early for an organization to enjoy a return on its recruiting investment. The relationship between manager and new hire is critical to retention and performance. Managers can unleash the energy of their new hires by engaging them in a series of structured, powerful conversations over the first few weeks. By focusing these conversations on six sources of power, managers can connect early and cultivate more productive, motivated, and committed workers. These are: power from relationships, passion, challenges, focus, balance, and intention.

New hires often come fully charged, excited about their new adventure, and filled with energy and potential. By tapping into that energy, knowledge and wisdom right from the start, you can maximize the new hire’s potential, extend the handshake, and fuel that energy well past the beginning of the employment cycle.

While recruitment continues to be one of the most costly human resource processes, its longer-term effectiveness is being eroded by high attrition. Hiring doesn’t stop with the job offer. Today re-recruiting your best people is as critical as hiring them in the first place.

Often new hires leave too early for an organization to enjoy a return on its recruiting investment. And if they stay, are they productive, engaged, loyal, and committed? Have they simply “checked in” or are they “tuned in” and “turned on” as well?

The relationship between manager and new hire is critical to retention and performance. To increase retention and build loyalty during that critical first year, start by building the relationship between new hires and their managers.

Unleashing the Energy: New Employee Onboarding

Unleashing the Energy: New Employee Onboarding Improving first-year retention, decreasing time-to-productivity, and building loyalty and commitment are directly related to how quickly managers develop quality relationships with new hires.

Managers can unleash the energy of their new hires by engaging them in a series of structured, powerful conversations over the first few weeks. By focusing these conversations on six sources of power, managers can connect early and cultivate more productive, motivated, and committed workers.

  • Power from Relationship. There is no greater predictor of retention and engagement than the quality of the relationship between new hires and their managers and colleagues. The closer these bonds, the more new hires trust management, the more they feel cared for and valued, and the greater their focus, productivity, and satisfaction.
  • Power from Passion. People are more passionate about their work when they use their talents and skills to work on tasks and projects that interest them in environments that are consistent with the ways they prefer to work. Managers need to recognize their new hires’ skills, honor their interests, and leverage their strengths.
  • Power from Challenge. People get excited about their jobs (and stay excited) when they learn and grow in ways that have meaning for them. Managers need to become better talent scouts, and recognize potential when they see it. They need to provide for continued development and challenge.
  • Power from Focus. People are more committed when they know what the organization is trying to achieve, and how they can contribute to those outcomes. Managers must help new hires learn to navigate; understand the purpose, mission, and objectives; and appreciate how their efforts serve those goals.
  • Power from Balance. People’s lives extend well beyond the workplace. They have families, friends, lovers, and children to care for. They have finances to manage and households to maintain. They want to stay vibrant and healthy. They want to play and have time for themselves. Managers must make room for new hires and their whole lives.
  • Power from Intention. Managers and their new hires must follow through to earn the commitment and loyalty they both want: What new skills will they develop the first year, and how? What new areas will they explore, and how? What relationships are important to establish? How will the manager or new hire flex to make the relationship work best? What results will new hires be responsible for? How will they be rewarded? What support will the manager provide? It takes more than talk-new hires need to see tangible progress.

Benefits of Employee Retention Strategies

Best Practices for Onboarding New Employees: Maximizing Success What does the organization get in return? Here are a few bottom-line results:

  • Improved first-year retention rates. Engaging new employees early in shaping their jobs, designing their development, and building relationships can decrease first-year attrition.
  • Decreased time-to-productivity. Encouraging managers to be clear about what exactly is expected, and discuss how well new employees are learning their responsibilities can decrease the time required for new hires to get “up to speed.” They will contribute more, and do so more rapidly.
  • Reduced recruiting costs. Convincing new hires that they made the right choice can result in an increase in recruits referred by recent hires. Some organizations attract 70 percent of their new hires from recent hire referrals, reducing recruiting costs significantly.
  • Increased productivity. Making it possible for people to do what they do best, allowing them to pursue their interests, and building meaningful relationships can lead to higher productivity, increased customer satisfaction, and enhanced profitability.
  • Brand development. The more your become known as a great place to work, as an organization that cares about its employees, the more easily you attract the best and the brightest.
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Posted in Education and Career Management and Leadership

You Can’t Prove Anything About the Future

'Security Analysis' by Graham and Dodd (ISBN 0071592539) Venture investing plays an important role in entrepreneurship not only because financial resources are important to new ventures, but also because early investors help shape the ventures’ managerial and strategic destiny. Value investing is conceivably the most prevalent and durable style of investing.

However, despite its reputation, the theoretical foundations of value investing have developed little since the ground-breaking work of Benjamin Graham and David Dodd espoused in their classic Security Analysis (1934). They advise value investors to focus their attention on securities “which are selling below the levels apparently justified by careful analysis of the relevant facts.” They further encourage value investors to concern themselves with “the intrinsic value of the security and more particularly with the discovery of discrepancies between the intrinsic value and the market price.” In providing wide-ranging guidance for the estimation of intrinsic value, they write down that:

In general terms it is understood to be the value which is justified by the facts, e.g. the assets, earnings, dividends, definite prospects, as distinct, let us say, from market quotations established by artificial manipulation or distorted by psychological excesses. But it is a great mistake to imagine that intrinsic value is as definite and as determinable as is the market price. Some time ago intrinsic value (in the case of common stock) was thought to be about the same thing as “book value,” i.e. it was equal to the net assets of the business fairly priced. This view of intrinsic value was quite definite, but it proved almost worthless as a practical matter because neither the average earnings nor the average market price evinced any tendency to be governed by the book value. Hence this idea was superseded by a newer view, viz., that the intrinsic value of a business was determined by its earnings power. But the phrase “earnings power” must imply a fairly confident expectation of certain future results. It is not sufficient to know what the past earnings have averaged, or even that they disclose a separate line of growth or decline. There must be plausible grounds for believing that this average or this trend is a dependable guide to the future.

Variation in long-horizon security returns is governed by fundamentals. Reckoning the prospective yield by aggregating expected earnings over more than a few future years dominates existing approaches to measuring value. This analysis highlights significant opportunities for improvement in the relative-value metrics used by academics and practitioners. To determine the source of variation in future stock returns to various investment strategies. The book-to-market ratio is a comparatively poor measure of value and that much of its prognostic ability with respect to future stock returns appears to arise from other sources.

Investor Howard Marks Renowned investor Howard Marks (b. 1946) of Citibank, TCW Group, and Oaktree Capital Management at “Investor Series” interview with Oaktree founder and American investor Bruce Karsh at Wharton School, University of Pennsylvania:

There’s no such thing as analysis of what’s coming. We don’t know anything about the future, and you can’t prove anything about the future.

But if you’ve been in business and you’ve seen some cycles, and you’ve gained some experience and you’ve gone through those cycles with your eyes open saying “What are the implications of cycles for our behavior?”, then I think you can reach a point where you say, “You know what, it just feels like the power is in the hands of the issuers, not the buyers. It feels like there aren’t many sellers, just a lot of buyers. And the market is not acting in a disciplined way.”

We want to buy when the market in panicked, not when the market is sanguine. [Warren] Buffett says that “The less prudence with which others conduct their affairs, the greater the prudence with which we must conduct our own affairs.”

When other people are optimistic, we should be worried. When other people are panicked, we should turn aggressive.

Comports with Sir John Templeton‘s famous dictums “If you want to have a better performance than the crowd, you must do things differently from the crowd” and “Invest at the point of maximum pessimism.”

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Leadership Lessons from President Dwight Eisenhower

Leadership Lessons from President Dwight Eisenhower

President Dwight “Ike” Eisenhower, a graduate of the US Military Academy Class of 1915, set the benchmark for “Supreme Command” in coalition operations; the standards he articulated and personified in the 1940s continue to pilot senior military commanders. Even more profound than Eisenhower’s intelligence as a coalition commander was his impression in shaping state-of-the-art leadership principles for officers in militaries of a democracy.

One simple solution for surpassing limiting beliefs and making headway toward significant goals in our lives. Eisenhower knew what it took to lead soldiers and build cohesive units at the tactical level; he was passionate about leadership and leader development. Unity of Command was his simple establishing principle, but he knew that placing a single person in charge was insufficient to ensure unity. Today, leader advancement is the core mission component of the Academy.

Goals are about growing. A good goal causes us to grow and mature. That’s because every goal is about the journey as much as—even more than—the destination. And that’s exactly why setting goals outside the comfort zone is so imperative.

We gathered frequently in the dining room of Quarters 100—the elegant residence for 200 years of the Superintendent of the U.S. Military Academy at West Point—for spirited conversation on history, politics, and leadership. As the Academy Superintendent in the late 90s, we relished this give-and-take. We brought to the Academy some of the best thinkers on leadership; the supper conversation reflected the energy of the participants. A recurrent question was this: “Whom do you regard as West Point’s most distinguished graduate?”

Dwight Eisenhower: History, Politics, and Leadership

The menu of alumni was a rich one: Grant, Lee, MacArthur, Goethals, Groves, Pershing, Bradley, Patton, and Eisenhower, among others. The agreement seemed always to focus on one graduate: Dwight D. Eisenhower, USMA Class of 1915, for his intense command of allied forces in the European theater during WWII. Eisenhower set the standard for “Supreme Command” in coalition campaigns; the principles he expressed and personified in the 1940s continue to channel senior military commanders.

Dwight D Eisenhower: History, Politics, and Leadership Lessons Even more profound than Eisenhower’s brilliance as a coalition commander was his influence in shaping modern leadership principles for officers in armies of a democracy. The strength of a memory is also determined by the emotional state that accompanied the original event. Without question, Eisenhower had no equal in stroking, cajoling, and managing prickly alliance personalities like Churchill, Montgomery, de Gaulle, Admiral Darlan, and Italian Marshall Badoglio—to say nothing of his challenges with George Patton. He was the consummate Supreme Commander.

The eloquent text above is simply for your benefit. It’s not actually part of the template. These beings are kenned by the adepts to be magnetized toward certain quarters of the heavens by something of the same abstruse property which makes the magnetic needle turn toward the north, and convinced plants to comply with the same magnetization. In such a way there is impermanent meaning and true meaning.

Fear usually plays a part in the decisions we make. Probably the biggest fear that you will have to face when making a decision is that of failure. Obviously, the bigger the decision, the greater the downside if it doesn’t pan out. Eisenhower also knew what it took to lead soldiers and build cohesive units at the tactical level; he was passionate about leadership and leader development. As a result of his submissions to Army leaders, Eisenhower influenced not only the formal leadership program of the U.S. Military Academy, but also the leadership ethic for young officers commissioned after 1945. Likewise, feelings, recognitions, volitions and consciousness are empty.

Dwight D Eisenhower: Situational Leadership

Dwight D Eisenhower Situational Leadership

Dwight Eisenhower’s leadership was is often a value judgment that varies from person to person and for one person from situation to situation. We call it situational leadership:

  1. Be mellow in manner, tough in deed: Eisenhower had a paperweight conspicuously exhibited on his desk with a Latin engraving meaning “gently in manner, strong in deed.” These are known as secret or insight activities. This reflected his philosophy and style. He was not full of bluster. He never threatened. This is the way of insight.
  2. Be a guide, not an initiator: Eisenhower once expressed leadership as “the art of getting someone else to do something you want done because he wants to do it.” This is the field of merit of beings. By vigilant organization and a premeditated crafting of words to hit the right note. When practicing, it is sufficient to just keep your mind on the method. He knew the importance of words— specifically those spoken by the person in charge—to motivate and persuade. There is another problem with the first cause argument. He believed in planning. He thought it was dangerous for a leader to shoot from the hip. We should take this to heart.
  3. Don’t talk too much: Even with no infirmities, the life of beings is passing. Some people just can’t help themselves and simply start prattling (luckily this didn’t happen to me). Either they’re nervous about figuring out the right thing to say, or they’re panicky about saying the wrong thing. And this full clarity is beyond inner and outer. But, when you talk too much the anguished person will sometimes begin to feel that they must take care of you.
  4. Know what you don’t know: Eisenhower cherished that his completest resource was not his own brilliance but the talent of his team. It frees a tremendous energy. He once wrote this piece of advice: “Always try to associate yourself with and learn as much as you can from those who know more than you do, who do better than you, who see more clearly than you.” And he understood that autonomy can be defined as the ability to make choices according to one’s own free will. He was a collaborator; and if no such challenge developed in that time, he would presume to be there by right, even though he might not have any life story.
  5. Don’t let success go to your head: Eisenhower never considered himself to be a hero when compared with the men who landed at Normandy and met the enemy on the bloodstained fields of battle. Soon after the war, he called on General Douglas MacArthur, his old boss, in Japan. MacArthur, impelled up about their success, crowed that as vanquishers either one of them could surely be elected president. It was reported that Eisenhower left that meeting red-faced and angry. He loathed the hero label. When years later he did become president, he was repeatedly disapproved for not being personally dynamic or out in front. He was lavish about letting those around him take the recognition for his ideas. This approach paid off in allegiance and execution. And many made great sacrifices to attend, frequently working his way through military.

In both arenas—supreme command and officer leadership—Eisenhower was a revolutionary. Before him, no U.S. commander had been entrusted with coalition command. General Pershing fought to maintain the integrity of U.S. forces as commander of the American Expeditionary Force in WWI, but he was subordinate to the French Commander-in-Chief; Eisenhower led allied forces from fall 1942, and by war’s end, had over four million men from five nations under his command. His approach to combined command complemented a sophisticated coalition leadership model—a model employed to this day.

Dwight Eisenhower: Unity of Command

Unity of Command was his simple organizing principle, but he knew that placing a single person in charge was disappointing to ensure unity. This had to be exercised through “earnest cooperation,” earned through “patience, tolerance, frankness, and honesty.”

Unity of Command: Leadership Lessons from Dwight Eisenhower Commanders in the 1990s, General George Joulwan in Bosnia and General Wesley Clark in Kosovo, achieved coalition success despite intra-alliance arguments by sticking to Eisenhower’s maxims. Similarly, two Central Command combatant commanders, Generals Norman Schwarzkopf and John Abizaid, profited from the trailblazing experiences of Eisenhower. Schwarzkopf exhibited a knowledge of alliance understandings and alliance politics by deftly managing more than 30 combination partners in Desert Storm. He clearly personified unity of command. But he knew this could never be effectively exercised unless he had consent of those he led, particularly his Arab partners, and most visibly, the Saudis. Again, Eisenhower’s coalition leadership principles proved decisive—and enduring. And they are reflected in the leadership exercised in 2005 by the Coalition Commander in Iraq, General John Abizaid, a student of the leadership of Eisenhower. After his discussion, his wish got him thinking about which of the three ways we die is actually best.

That these practices are connected with the proper kinds of beings and times is important. Besides transfiguring the doctrine of collective command at senior levels, Eisenhower was zealous about leadership development for junior officers. What he observed in the behavior of many U.S. officers in the European theater disturbed him greatly. Too many officers never identified with their soldiers; they were too eradicated from the needs of their troops. Further, Eisenhower was appalled by the behavior of officers who substituted screaming, even physical abuse of subordinates, for positive leadership. Eisenhower said, “You don’t lead by hitting people over the head; that’s assault, not leadership.” Life cannot be real if relationships are not real.

West Point Curriculum: Practical and Applied Psychology

Eisenhower felt that the West Point curriculum should include coursework in practical and applied psychology to “awaken the cadets to the necessity of handling human problems on a human basis,” and thereby improve leadership in the Army.

Eisenhower’s suggestion was soon followed by the establishment at the Academy of the Department of Behavioral Psychology and Leadership. For more than 50 years, it has instilled in cadets the principles of small unit leadership.

Instead of ignoring parts of the orchestra, a symphonic life of Dwight Eisenhower consists of five habits that ensure harmony:

  1. Anyone who has the self-control to steep his noetic conceptions in them may be sure that in a shorter or longer time they will lead him to personal vision.
  2. If your culture supports open dialogue and learning from mistakes, public commitments and public results can fire up morale.
  3. Contrary to the popular exhortation, people do judge books by their covers. That’s why it’s important we select the right one for this book.
  4. The moments of break-through where real change happens aren’t typically instant and extraordinary. They usually happen gradually in the ordinary course of our lives.
  5. One of the most obvious things about the future is that we are not there yet. The question for us as we start a small unit leadership is whether to drift or direct our lives where we want them to go.

U.S. Military Academy at West Point Today, leadership development is the core mission component of the Academy. The emphasis is on values, inspiration, and imagination. Eisenhower knew these could not be created in the cerebral equivalent of a strait jacket, with rote, mechanical instruction disconnected from the human problems of the individual soldier. In other words, we need to think about what we want to be true of us when it’s all said and done. Once that picture is in mind, we review the steps that journey requires and live them forward. Then comes the hard part.

The Supreme Commander who associated with his troops shaped the leadership ethic of my generation. Eisenhower took the time to write to parents of his soldiers, to talk to 101st Airborne Division paratroopers prior to their DDay jump, to prescribe leadership doctrine while he commanded millions. He was, in short, encouraging. And he personified the essential bond—trust. His soldiers trusted him because he exuded the values of integrity and respect—values that remain the core of our Army’s leadership principle.

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FedEx’s ZapMail Service: Failure to Foresee

Innovation is Not Without Risk

How Federal Express's Zapmail System Works

One of the defining characteristics of great leaders is their knack for seeing into the future.

Innovation is not without risk. There are plenty examples of failures at companies. However, on the other side of the coin, if you’re too cautious and too late—all you have is a dinosaur business. Navigating that fine line between risk and innovation is very important.

FedEx's Zapmail System Case in Point: ZapMail Service was a system that used fax machines at FedEx offices to transmit documents for clients in different cities. After being introduced in 1983, when FedEx was known as Federal Express, the service was soon eclipsed by the rise of fax machines priced cheaply enough that most offices could purchase their own. In addition, ZapMail was based on satellite technology, which needed the space shuttle to work effectively. However, the space shuttle blew up, dealing a body blow to FedEx’s plans. FedEx folded ZapMail in 1986, taking a costly write-off.

No Innovation Without Experimentation

Commenting about FedEx’s ability to integrating new acquisitions into its fold after its purchase of Paul Orfalea’s Kinko’s franchise, journalist Michael Copeland commented in the Autumn-2006 issue of Booz & Company’s Strategy & Leadership magazine:

As with other acquisitions, Fred Smith saw something in Flying Tigers and American Freightways that others didn’t because his point of focus lay far beyond theirs. Mr. Smith doesn’t always get it right when he looks into the future. His expensive and ultimately failed experiment in ZapMail, a dedicated fax network that couldn’t compete in the early 1980s with the new, inexpensive consumer fax machines, is proof. “A guy like Fred Smith doesn’t build a company like FedEx without taking some risks and making some mistakes,” says Mr. Hatfield, the Morgan Keegan analyst, “but clearly the successes far outweigh the failures.”

Federal Express's Zapmail System There can be no innovation without experimentation, and there can be no experimentation without the risk failure. In addition, taking risk goes against the grain of many companies’ cultures. In the corporate world, there are powerful incentives for people to play it safe. However, leaders must work particularly hard to offset these forces and give their teams the consent to fail and the assurance to make their case and go out on a limb. Leaders must not only promote experimentation, but also encourage people to terminate faster on projects that are not working without fear of reprisal. That is to repeat the cliche “fail, but fail as fast as possible” and take the lessons learned to the next experiment.

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