Blog Archives

How Leaders Can Motivate People to Think and Act Differently

How Leaders Can Motivate People to Think and Act Differently Will the induction of new technology present any menace to traditionalists? Of course it will. Innovation, by definition, is a undermining force. That is why we will need real leaders to champion the innovations. Leaders motivate people to think and act differently. We need to make sure that we are on the winning side of new technologies.

We must choose anything that will bring greater urgency and velocity to the search for new products, or advancements of existing ones, that are truly innovative. We can find some clues on how to act by studying the history of innovation. Here are some lessons learned.

  1. The instinct to create or innovate can be encouraged. We can systemize innovation by encouraging bright people with a real diversity of talent to work together in teams.
  2. Nothing stimulates innovation more than the rapid exchange of information, knowledge, and ideas. Faster transmission begets greater discovery. We see this in e-commerce. Amazon.com may constitute the greatest innovation in the distribution of the written word since the printing press.
  3. There must be obvious financial incentives for successful innovations. Undoubtedly, financial incentives add fuel to the fire for high-tech companies in the business-related world. But there is still a dearth of attractive financial incentives in defense procurement. Many leading companies have turned their backs on military R&D and defense contracting as a result of poor profit margins and red tape.
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Quotes from David Allen’s Masterpiece “Getting Things Done”

'Getting Things Done' by David Allen (ISBN 0143126563) Time management guru David Allen has established a cult following. His bestselling book, Getting Things Done, has produced an international crusade of dedicated adopters from executives, techies, soldiers, businesspersons, university lecturers, musicians, scholars, and ordained priests. It has spread into a flourishing “GTD” trade of web sites, blogs and software applications. Internet searches bring up tens of millions of references.

  • “The art of resting the mind and the power of dismissing from it all care and worry is probably one of the secrets of our great men.”
    –Captain J.A. Hatfield
  • “Anxiety is caused by a lack of control, organization, preparation, and action.”
    –David Kekich
  • “Time is the quality of nature that keeps events from happening all at once. Lately, it doesn’t seem to be working.”
    –Anonymous
  • “We can never really be prepared from that which is wholly new. We have to adjust ourselves, and every radical adjustment is a crisis in self-esteem: we undergo a test, we have to prove ourselves. It needs subordinate self-confidence to face drastic change without inner trembling.”
    –Eric Hoffer
  • “The hurrier I go, the behinder I get.”
    –Anonymous
  • “The winds and waves are always on the side of the ablest navigators.”
    –Edward Gibbon
  • “Life is defined by lack of attention, whether it be to cleaning windows or trying to write a masterpiece.”
    –Nadia Boulanger
  • “If your mind is empty, it is always ready for anything; it is open to everything.”
    Shunryu Suzuki
  • “There is one thing we can do, and the happiest people are those who can do it to the limit of their ability. We can be completely present. We can be all here. We can… give all our attention to the opportunity before us.”
    –Mark Van Doren
  • 'The Power of Habit' by Charles Duhigg (ISBN 081298160X) “Think like a man of action. Act like a man of thought.”
    –Henry Bergson
  • “The ancestor of every action is a thought.”
    –Ralph Waldo Emerson
  • “This constant, unproductive preoccupation with all the things we have to do is the single largest consumer of time and energy.”
    –Kerry Gleeson
  • “Rule your mind or it will rule you.”
    –Horace
  • “The beginning is half of every action.”
    –Greek proverb
  • “Vision is not enough; it must be combined with venture. It is not enough to stare up the steps; we must step up the stairs.”
    Vaclav Havel
  • “It is hard to fight an enemy who has outposts in your head.”
    –Sally Kempton
  • “The knowledge that we consider knowledge proves itself in action. What we now mean by knowledge is information in action, information focused on results.”
    –Peter F. Drucker
  • “Men of lofty genius when they are doing the least work are the most active.”
    –Leonardo da Vinci
  • “It does not take much strength to do things, but it requires a great deal of strength to decide what to do.”
    Elbert Hubbard
  • “Blessed are the flexible, for they shall not be bent out of shape.”
    –Michael McGriffy, M.D.
  • 'Thinking, Fast and Slow' by Daniel Kahneman (ISBN 0374533555) “Everything should be made as simple as possible, but not simpler.”
    –Albert Einstein
  • “The affairs of life embrace a multitude of interests, and he who reasons in any one of them, without consulting the rest, is a visionary unsuited to control the business of the world.”
    –James Fenimore Cooper
  • “You’ve got to think about the big things while you’re doing the small things, so that all the small things go in the right direction.”
    –Alvin Toffer
  • “Don’t just do something. Stand there.”
    –Rochelle Myer
  • “Fanaticism consists of redoubling your efforts when you have forgotten your aim.”
    George Santayana
  • “Celebrate any progress. Don’t wait to get perfect.”
    –Ann McGee Cooper
  • “Simple, clear purpose and principles give rise to complex and intelligent behavior. Complex rules and regulations give rise to simple and stupid behavior.”
    –Dee Hock
  • “Imagination is more important than knowledge.”
    –Albert Einstein
  • “Your automatic creative mechanism is teleological. That is, it operates in terms of goals and end results. Once you give it a definite goal to achieve, you can depend upon its automatic guidance system to take you to that goal much better than ‘you’ ever could by conscious thought. ‘You’ supply the goal by thinking in terms of end results. Your automatic mechanism then supplies the means whereby.”
    –Maxwell Maltz
  • “I always wanted to be somebody. I should have been more specific.”
    –Lily Tomlin
  • “The best way to get a good idea is to get lots of ideas.”
    –Linus Pauling
  • “Nothing is more dangerous than an idea when it is the only one you have.”
    –Emile Chartier
  • 'The 7 Habits of Highly Effective People' by Stephen R. Covey (ISBN 1451639619) “Only he who handles his ideas lightly is master of his ideas, and only he who is master of his ideas is not enslaved by them.”
    Lin Yutang
  • “Plans get you into things but you’ve got to work your way out.”
    –Will Rogers
  • “It is easier to act yourself into a better way of feeling than to feel yourself into a better way of action.”
    –O.H. Mowrer
  • “I am rather like a mosquito in a nudist camp; I know what I want to do, but I don’t know where to begin.”
    –Stephen Bayne
  • “I got it all together, but I forgot where I put it.”
    –Anonymous
  • “I would not give a fig for the simplicity on this side of complexity, but I would give my life for the simplicity on the other side of complexity.”
    –Oliver Wendell Holmes
  • “We must strive to reach the simplicity that lies beyond sophistication.”
    –John Gardner
  • “Those who make the worst use of their time are the first to complain of its shortness.”
    –Jean de la Bruysre
  • “What lies in our power to do, lies in our power not to do.”
    –Aristotle
  • “To make knowledge productive, we will have to learn to see both forest and tree. We will have to learn to connect.”
    Peter F. Drucker
  • 'The Effective Executive' by Peter Drucker (ISBN 0060833459) “‘Point of view’ is that quintessentially human solution to information overload, an intuitive process of reducing things to an essential relevant and manageable minimum. In a world of hyperabundant content, point of view will become the scarcest of resources.”
    –Paul Saffo
  • “Thinking is the very essence of, and the most difficult thing to do in, business and in life. Empire builders spend hour-after-hour on mental work… while others party. If you’re not consciously aware of putting forth the effort to exert self-guided integrated thinking… then you’re giving in to laziness and no longer control your life.”
    –David Kekich
  • “We all have times when we think more effectively, and times when we should not be thinking at all.”
    –Daniel Cohen
  • “To ignore the unexpected (even if it were possible) would be to live without opportunity, spontaneity, and the rich moments of which ‘life’ is made.”
    –Stephen Covey
  • “Your work is to discover your work and then with all your heart to give yourself to it.”
    –Buddha
  • “The best place to succeed is where you are with what you have.”
    –Charles Schwab
  • “The middle of every successful project looks like a disaster.”
    –Rosabeth Moss Cantor
  • “Luck affects everything. Let your hook always be cast; in the stream where you least expect it there will be a fish.”
    –Ovid
  • “How do I know what to think, until I hear what I say?”
    E.M. Forster
  • “Let your advance worrying become advance thinking and planning.”
    –Winston Churchill
  • “Out of the strain of the doing, into the peace of the done.”
    –Julia Louis Woodruff
  • “It is the act of forgiveness that opens up the only possible way to think creatively about the future at all.”
    –Fr. Desmond Wilson
  • 'How to Win Friends & Influence People' by Dale Carnegie (ISBN 0671027034) “The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting with the first one.”
    –Mark Twain
  • “I am an old man and have known a great many troubles, but most of them never happened.”
    –Mark Twain
  • “No matter how big and tough a problem may be, get rid of confusion by taking one little step toward solution. Do something.”
    –George F. Nordenholt
  • “You can only cure retail but you can prevent wholesale.”
    –Brock Chisolm
  • “Talk does not cook rice.”
    –Chinese proverb
  • “There are risks and costs to a program of action, but they are far less than the long-range risks and costs of comfortable inaction.”
    John F. Kennedy
  • “People are always blaming their circumstances for what they are. I don’t believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want, and, if they can’t find them, they make them.”
    –George Bernard Shaw
  • “Life affords no higher pleasure than that of surmounting difficulties, passing from one step of success to another, forming new wishes and seeing them gratified.”
    –Dr. Samuel Johnson
  • “An idealist believes that the short run doesn’t count. A cynic believes the long run doesn’t matter. A realist believes that what is done or left undone in the short run determines the long run.”
    –Sidney J. Harris
  • “A vision without a task is but a dream, a task without a vision is drudgery, a vision and a task is the hope of the world.”
    –From a church in Sussex, England, ca. 1730
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The Fantastic Ornate Building of Saint Philomena’s Church, Mysore

Fantastic Ornate Building of Saint Philomena's Church, Mysore

Though Mysore has been a stronghold of traditional Hinduism from time immemorial, it has been famous for the harmonious coexistence of other religions also. This is testified to by many churches and mosques, which have been serving the cause of religion of their followers without any hindrance. Saint Philomena’s Church on the Ashoka Road (and practically at the entrance of Mysore coming from Bangalore) is a testimony for the religious tolerance of the people of Mysore.

Attractive colonnades of Saint Philomena's Church, Mysore There was a church known as Saint Joseph’s church built in 1840 and it was reconstructed and was renamed as Saint Joseph and Saint Philomena’s cathedral. It is said that Sri Thamboo Chetty, the then Dewan of Mysore in one of his visits had brought a piece of bone and drapery of the famous religious savant from Magnano in France from Peter Pisani, Apostolic Delegate of the East Indies and he wanted to consecrate them in a suitable church for this purpose.

The cathedral was designed by French architects and its foundation was laid by the then Maharaja Krishnaraja Wadeyar II in 1933. This church is modelled on Saint Patrick’s Cathedral in New York and the Gothic Church at Cologne in Germany.

Unique Architectural Style with Some Greek Features

The most attractive part of this edifice is the two tall imposing pointed towers at the facade itself. The two towers rise to a height of 165 ft. The elegance of this structure is enhanced by miniature pointed towers at different points, adding further height to the cathedral.

The vertically fashioned tall windows at regular intervals add a great charm. The pointed triangular gothic motifs at different places is another attraction.

Crypt with statue of Saint Philomena in Mysore

The church has a crypt in which is a statue of Saint Philomena in a catacomb-like cell. A piece of her bone is preserved at the center of a beautiful shield. There is also a piece of her drapery. Hence, this is important to Roman Catholics.

The interior of the cathedral is decorated with attractive colonnades and glass paintings made in France. Particularly noteworthy are the paintings of crucification of Christ and John baptizing Christ. The annual Saint Philomena’s feast is held in this cathedral. Large numbers of Roman Catholic devotees visit this sacred cathedral.

Unique Architectural Style with Some Greek Features of Saint Philomena's Church, Mysore

Hundreds of tourists of all religions to Mysore visit this cathedral daily to see the lofty and beautiful, tall and imposing towers and the architecture of a rare type not generally seen in many areas of this country.

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Speed with Balance: Towards a Balanced Leadership Framework

Speed with Balance: Towards a Balanced Leadership Framework

Speed is an Incredible Drug

Managers are under snowballing pressure to deliver ever faster and more expectable returns and to restrain riskier investments intended for meeting future needs and finding creative solutions to the problems confronting people around the world.

Just ask a Formula One driver, a day-trader, or the CEO of any startup trying to get to market first with the next great idea or technology. We are convinced faster is better; indeed, complacency could mean death in today’s markets. But what fuel is driving you? Is it high-octane intelligence or the fumes of fear-fear you’ll lose the race, be left behind, be dumped in the trash heap of what could have been?

The next challenge of leadership is not just to increase speed but to maximize the intelligence of people. Research has advanced our knowledge of human intelligence, opening up incredible new possibilities for creating more productive, resilient workplaces. Emotion plays a critical role in decision-making, innovative thinking, and effectiveness. Intelligence is distributed throughout the body-not just localized in the brain. The heart is an intelligent system profoundly affecting brain processing.

How can leaders balance these complex and often competing demands? The core question for modern leaders is to become more entirely human—to energetically develop a wider range of competences and to more deeply understand themselves.

Four leadership dynamics are crucial to creating a culture that honors the contributions of each person, while maintaining a clear vision and focus.

Leadership Dynamic #1: Manage Yourself

'The Well-Balanced Leader' by Ron Roberts (ISBN 0071772448) More than ever we have to see outside ourselves. The new economy is all about connecting, partnering, collaborating, and leveraging what we have through the strengths and talents of others. Many executives realize that the adaptability, creativity, and innovative intelligence within people is their only competitive advantage.

Three things are clear in this time of unprecedented change:

  1. Stress will increase because of pressure to grow, to learn, to adapt, to flex, to find and maintain balance among conflicting priorities.
  2. Understanding mental, emotional, and physical processes is essential to enhancing performance. Emotional mismanagement strains the heart. We can’t divorce personal or professional success from the everyday emotional pressures we face. Emotional turmoil causes poor health, weak morale, high turnover, and lost productivity.
  3. Identifying and plugging the leaks in your own system saves energy. A leak is caused by anything unresolved: a tough decision still unmade, a relationship that worries you, guilt over mishandling a project or relationship, or the gnawing anxiety that you are not doing work that fulfills your talent and potential.

We see a negative impact on clear thinking and decision-making when our emotions run amuck. Positive emotions—such as appreciation, care, and compassion—create an internal environment that neutralizes negative reactions and increases resilience.

Leadership Dynamic #2: Build Coherent Relationships

In a connected world, communication becomes more demanding. The speed of response is often critical. However, when you are rushing or frantic, incoherent thinking results. A balanced response, while appearing to take more time, actually saves time because of the added clarity. Coherent communication reduces internal noise while encouraging meaningful conversations among coworkers, customers, and constituents. You do this in four ways:

  1. achieve understanding first—don’t jump to conclusions or assume you know;
  2. listen nonjudgmentally—put your judgments aside to hear the views or concerns of staff;
  3. Listen for the essence—don’t react just to the words or tone or get lost sword-fighting over details. Listen for deeper meanings and patterns. Assume others have essential knowledge you need to succeed.
  4. Be authentic—Leaders soar in credibility and praise when delivering tough messages forthrightly. Leaders who cover up or sugar-coat are greeted with skepticism, cynicism, and apathy. Paralysis follows leaders afraid to take a stand with compassion.

As Carly Fiorina, former CEO of Hewlett Packard, said: “Engage your heart, your gut, and your mind in every decision you make. Engage your whole self, and the journey will reveal itself with time.”

Leadership Dynamic #3: Create a Positive Climate

'Balanced Leadership' by Sheryl Boris-schacter (ISBN 0807746983) Leaders understand the necessity of a positive workplace climate for innovation and creativity. Anyone who has been through a merger knows first-hand just how dramatic a climate change can be and how devastating to productivity are people who are unhappy about their role, or the organization’s direction (or lack of direction). Dissension and antagonism act like a virus that infects an organization, weakening vitality and resilience as it spreads.

A healthy climate combats the virus through an inoculation of essential human values and behaviors, such as supporting initiatives, valuing individual contribution, encouraging self-expression, and providing recognition, role clarity, and challenge. Adaptability, shared core values, care, and appreciation are not only qualities of great places to work, they also nurture an innovative spirit that serves all interests and stakeholders.

Leadership Dynamic #4: Renew Yourself and Your Organization

Balance is essential in people and organizations. As speed increases, imbalance becomes more apparent and catastrophic. A living system, like a mechanical one, needs to be renewed, refreshed, rejuvenated, and balanced.

  1. Introduce methods to help you examine your individual interests, desires, and goals
  2. Understand your workplace’s priorities and culture, and offer tips for identifying where there’s either a match or a gap
  3. Prepare to move forward through the creation of a personalized strategic professional plan that addresses professional development, gaining additional experience, and other options for growth
  4. Share your skills and experience through mentorship

Every Person and Organization Needs Renewal

To meet the challenges of the new economy, speed is essential. Balance will guarantee we don’t spin out of control in the process.

The success of a leader has more to do with intrinsic motivation, skills, capabilities, and character than with whether his or her pay is tied to shareholder returns.

The ambition is not to find a perfect balance, but to build a harmonizing set of strengths, so that we can move elegantly along a spectrum of leadership qualities. Incorporating our own complexity makes us more wholly human and gives us added resources to manage ourselves and others in an gradually complex world.

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Glimpses of History #5: Ice Ages, Glacial History, and the Development of Human Civilization

The glacial history of the earth is multifarious and extends back in geological time to the Proterozoic and perhaps the Archean. Global glaciations have occurred during every geological period except for the Jurassic period. This perseverance of global glaciations, in addition to recurring and ongoing glaciations in high mountainous areas, everywhere altitudes exceed the local snowline, is so constant that one might make a case that the Earth is fundamentally a glacial planet. Even though the dearth of precise time correlations remains a limiting factor, climatic data on a regional basis propose that Pleistocene climates differed in different areas, and cooling and warming trends were not uniform. Evidence suggests that glacial epochs have repeatedly occurred almost every 100,000 to 150,000 years.

Glimpses of History #5: Ice Ages, Glacial History, and the Development of Human Civilization

The Pleistocene period (beginning 2.58 million years ago) saw quite a few phases in which Earth’s mean temperature dropped and the polar icecaps expanded towards the tropics. These are clustered into four broad ice ages—periods with cool temperatures and a significant continental ice sheet (at times, up to one-third of Earth’s land surface was covered), separated by interglacial periods of 10-15 millennia.

Aside from the palpable impact of glacier ice in eroding, transporting, and depositing vast volumes of sediments, glaciation has led to many secondary effects on the landscape and life. Nomadic humans, with fire, weapons and language, were able to hunt across the tundra and secure caves in which to shelter. Their prey needed bigger areas to scavenge, causing humanity to spread widely in pursuit. While geologists and glaciologists think widespread glaciation typifies the Pleistocene Epoch, once upon a time anthropologists considered the emergence of modern humans as a defining criterion, and vertebrate paleontologists used the fossiliferous episodes of the elephant, modern horse, and cattle in their definition of this interval.

'The Ice Age' by Jamie Woodward (ISBN 0199580693) Falling sea levels opened up land bridges across today’s oceans—most considerably, the Americas were populated by humans spreading from Mongolia, while horses evolved in America but migrated east before becoming extinct in their native land. The last noteworthy glaciations ended 10,000 years ago, even though a climatic cooling of about 500 years from c. CE 1300 has been noted.

Glacial history is so wrapped up in the evolution and development of human civilization that it is crucial we understand historical glacial history to forecast probable future global environmental change.

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Seven Employee Engagement Practices

Seven Employee Engagement Practices

Use these seven engagement practices to engage or re-engage your people:

  1. Give realistic job previews to ensure the expectations of new hires match on-the-job reality. This involves giving a candid description of difficult challenges or conditions, touring the plant, allowing candidates to discuss job challenges with current employees, or portraying actual work situations.
  2. Take more time in hiring to avoid person-job mismatches. Analyze the critical success factors required for all jobs, screen candidates via personality assessments, ask behavior-based questions, use multiple interviewers, and check references. Don’t over-prescribe how jobs are to be done, but communicate clearly what results are expected.
  3. Provide managers with training in performance management and coaching. This should include the art of giving performance feedback and dealing with situations of potential conflict. Leaders of engaged workforces teach an adult-to-adult partnership model that allows more input from the employee in performance goal-setting, and features more frequent discussions.
  4. Provide self-assessment workshops and train managers how to be career coaches. Require all employees to complete an annual Individual Development Plan and update it with managers after six months. Some CEOs state that managers do not “own” the talent and that “talent-hoarding” won’t be tolerated. Employees will not be prevented from moving laterally when they are ready.
  5. 'The 7 Hidden Reasons Employees Leave' by Leigh Branham (ISBN 0814408516) Create a culture that acknowledges all improvements and contributions. Assure that people receive the message that they are valued. Request employee input about matters that impact them, keep them informed, provide the right resources at the right time, and discipline or fire managers who abuse and disrespect people. Hire great people and pay above-market wages.
  6. Maintain reasonable workloads. Help people to have a decent life outside work. Survey your people and find out what they need. Companies with many female workers with children might start flex-time and subsidized child care or trade some pay for increased vacation time.
  7. Gain and maintain the trust and confidence of employees. Convey a clear and compelling vision that inspires confidence and gives people hope that they can grow as the organization grows. Convince workers that you care as much about them as you care about shareholders and customers. Back up your words with actions and maintain high standards of ethics and integrity.
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A Value Investing Checklist from ‘Poor Charlie’s Almanack’

'Poor Charlie's Almanack' by Charles T. Munger (ISBN 1578645018)

From Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger

Risk—All investment evaluations should begin by measuring risk, especially reputational

  • Incorporate an appropriate margin of safety
  • Avoid dealing with people of questionable character
  • Insist upon proper compensation for risk assumed
  • Always beware of inflation and interest rate exposures
  • Avoid big mistakes; shun permanent capital loss

Independence—“Only in fairy tales are emperors told they are naked”

  • Objectivity and rationality require independence of thought
  • Remember that just because other people agree or disagree with you doesn’t make you right or wrong—the only thing that matters is the correctness of your analysis and judgment
  • Mimicking the herd invites regression to the mean (merely average performance)

Preparation—“The only way to win is to work, work, work, work, and hope to have a few insights”

  • Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day
  • More important than the will to win is the will to prepare
  • Develop fluency in mental models from the major academic disciplines
  • If you want to get smart, the question you have to keep asking is “why, why, why?”

Intellectual humility—Acknowledging what you don’t know is the dawning of wisdom

  • Stay within a well-defined circle of competence
  • Identify and reconcile disconfirming evidence
  • Resist the craving for false precision, false certainties, etc.
  • Above all, never fool yourself, and remember that you are the easiest person to fool

Analytic rigor—Use of the scientific method and effective checklists minimizes errors and omissions

  • Determine value apart from price; progress apart from activity; wealth apart from size
  • It is better to remember the obvious than to grasp the esoteric
  • Be a business analyst, not a market, macroeconomic, or security analyst
  • Consider totality of risk and effect; look always at potential second order and higher level impacts
  • Think forwards and backwards—Invert, always invert

Allocation—Proper allocation of capital is an investor’s number one job

  • Remember that highest and best use is always measured by the next best use (opportunity cost)
  • Good ideas are rare—when the odds are greatly in your favor, bet (allocate) heavily
  • Don’t “fall in love” with an investment—be situation-dependent and opportunity-driven

Patience—Resist the natural human bias to act

  • “Compound interest is the eighth wonder of the world” (Einstein); never interrupt it unnecessarily
  • Avoid unnecessary transactional taxes and frictional costs; never take action for its own sake
  • Be alert for the arrival of luck
  • Enjoy the process along with the proceeds, because the process is where you live

Decisiveness—When proper circumstances present themselves, act with decisiveness and conviction

  • Be fearful when others are greedy, and greedy when others are fearful
  • Opportunity doesn’t come often, so seize it when it comes
  • Opportunity meeting the prepared mind; that’s the game

Change—Live with change and accept unremovable complexity

  • Recognize and adapt to the true nature of the world around you; don’t expect it to adapt to you
  • Continually challenge and willingly amend your “best-loved ideas”
  • Recognize reality even when you don’t like it—especially when you don’t like it

Focus—Keep things simple and remember what you set out to do

  • Remember that reputation and integrity are your most valuable assets—and can be lost in a heartbeat
  • Guard against the effects of hubris and boredom
  • Don’t overlook the obvious by drowning in minutiae
  • Be careful to exclude unneeded information or slop: “A small leak can sink a great ship”
  • Face your big troubles; don’t sweep them under the rug
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Bernard Baruch’s 10 Rules of Investing

Bernard Baruch (1870–1965) was the son of a South Carolina physician whose family moved to New York City when he was eleven year old. By his mid-twenties, he is able to buy an $18,000 seat on the exchange with his winnings and commissions from being a broker. By age 30, he is a millionaire and is known all over The Street as “The Lone Wolf”.

Bernard Baruch's 10 Rules of Investing Born in Camden, South Carolina, and raised in New York City, Bernard Mannes Baruch graduated from the City College of New York in 1889. His original job on Wall Street, at the brokerage firm of A. A. Housman & Co., paid $3 a week, but he became a millionaire by the time he was thirty. He was a director of the New York Stock Exchange, a front-runner in mining finance, and an irregular investor in properties ran by the Guggenheim household. Even though he did not sell out just before the stock market crash of 1929, as fable has it, he did recover the bulk of his fortune.

In his two-volume 1957 memoirs, My Own Story and The Public Years, Baruch left us with the following timeless rules for investing

Being so skeptical about the usefulness of advice, I have been reluctant to lay down any ‘rules’ or guidelines on how to invest or speculate wisely. Still, there are a number of things I have learned from my own experience which might be worth listing for those who are able to muster the necessary self-discipline.

  • Don’t speculate unless you can make it a full-time job.
  • Beware of barbers, beauticians, waiters—of anyone—bringing gifts of “inside” information or “tips.”
  • Before you buy a security, find out everything you can about the company, its management and competitors, its earnings and possibilities for growth.
  • 'Baruch My Own Story' by Bernard Baruch (ISBN 1607969130) Don’t try to buy at the bottom and sell at the top. This can’t be done—except by liars.
  • Learn how to take your losses quickly and cleanly. Don’t expect to be right all the time. If you have made a mistake, cut your losses as quickly as possible.
  • Don’t buy too many different securities. Better have only a few investments which can be watched.
  • Make a periodic reappraisal of all your investments to see whether changing developments have altered their prospects.
  • Study your tax position to know when you can sell to greatest advantage.
  • Always keep a good part of your capital in a cash reserve. Never invest all your funds.
  • Don’t try to be a jack of all investments. Stick to the field you know best.

Baruch would afterwards continue from Wall Street to Washington DC as an consultant to both Woodrow Wilson and to Franklin D. Roosevelt during World War II.

Later on, he became identified as the Park Bench Statesman, due to his keenness for debating policy and politics with his associates in the open air.

He lived until a few days before his 95th birthday in 1965. You could do worse than to invest and live based on these facts.

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10 Leadership Lessons from JFK

10 Leadership Lessons from JFK

John F. Kennedy remains a popular president. He was one of those rare presidents who became more popular during his time in office. In the last Gallup poll before his assassination, Kennedy’s approval rating stood at 70 percent!

Some pundits have dismissed Kennedy as “all profile and no courage.” But a closer look reveals that behind the charisma, smile and bold rhetoric, lay courage aplenty, plus vision and substance.

  • Craft a compelling vision. By 1960, a new generation of “Baby Boomers” was coming of age. What was to be their challenge? In his Inaugural Address, Kennedy gave them one: “Now the trumpet summons us again-not as a call to bear arms, though arms we need; not as a call to battle, though embattled we are-but a call to bear the burden of a long twilight struggle, year in and year out, rejoicing in hope, patient in tribulation-a struggle against the common enemies of man: tyranny, poverty, disease, and war itself. Can we forge against these enemies a grand and global alliance, North and South, East and West, that can assure a more fruitful life for all mankind? Will you join in that effort?” He dared young Americans to take on the status quo and to push themselves to the limit.
  • 'JFK and the Unspeakable' by James W Douglass (ISBN 1439193886) Face adversity with a smile. John F. Kennedy was born with an unstable back, which he aggravated further in sports and in the PT-109 incident. Also, he nearly died of scarlet fever as an infant, was mistakenly diagnosed with leukemia as a teenager, developed Addison’s Disease, which could be controlled only with painful cortisone treatments, suffered from allergies, bad eyesight, slight deafness in one ear, and much else besides. Born into a wealthy family, yet cursed with a sickly body, Kennedy could have given in to self-pity and sat on the sidelines. He refused, facing his maladies with a smile and joke. He was thus well-prepared to deal with the frustrations of political life.
  • Don’t follow the crowd. John F. Kennedy set his own course in life, always wary of being seen as anybody’s “man.” As a young man, he spent much time in Europe watching his father make blunder after blunder as U.S. ambassador to Great Britain, and young Kennedy resolved not to repeat them. He rejected his father’s crabbed isolationism in favor of a robust internationalism personified by Kennedy’s hero, Winston Churchill. He and his brother Bobby investigated corruption in U.S. labor unions, particularly the Teamsters. He also took on the American Legion, the House Democratic leadership, the Pentagon top brass.
  • Educate yourself. A passion for self-education might be one of the most reliable markers of leadership: Abraham Lincoln, Winston Churchill and Ronald Reagan were mostly self-taught. Jack Kennedy became a reader during his childhood illnesses as he lay flat on his back in hospitals. History, biography, and historical fiction, such as Churchill’s History of the First World War and King Arthur and the Knights of the Round Table, were among his favorites. Before becoming president, Kennedy traveled the globe, visiting places few Americans had ever been, such as Vietnam. The contrast he witnessed between pre-war and post-war Berlin demonstrated vividly the possible consequences of world war, especially if it became nuclear.
  • 'Churchill: The Power of Words' by Winston Churchill (ISBN 0306821974) Learn to communicate. Kennedy was a poor public speaker at the start of his career. He spoke too fast, failed to pause for audience reaction, tended to speak from the larynx rather than the diaphragm and so wore out his voice quickly. He spoke with a pronounced regional accent. He dealt with this by keeping his talks short, and leaving time for questions. But he worked hard to improve himself, hiring voice coaches and a speechwriter, Theodore C. Sorensen, who helped him craft memorable phrases and imagery. Kennedy was also one of the first politicians to receive media training. His live press conferences became a White House tradition. He cultivated reporters who wrote favorable stories about him and his family and declined to write about his affairs and illnesses. He used his communication skills to rally the nation to fight the Cold War, soothe its fears, inspire unity, and achieve its highest aspirations.
  • Don’t let crises manage you. Perhaps the most important quality a leader can possess is the ability to manage a crisis without letting the crisis manage the leader. Kennedy projected a calm confidence that communicated to those around him and to the country. For example, during the Cuban missile crisis (October 1962), Kennedy remained calm and refused to retaliate. To prevent future miscommunications, Kennedy and Khrushchev agreed to establish a “hotline” between the White House and Kremlin.
  • Build a team and find your “Bobby.” No one gets to the top alone. To reach and hold a major leadership position, you need to build a team. Kennedy learned early how to get along with people from all walks of life. He could charm European aristocrats as well as bell hops and cab drivers with equal felicity. His intensity and purpose proved irresistible, and most people who worked for him remained devoted to him (no member of the Kennedy circle ever wrote even a remotely hostile memoir.) When Jack’s first Senate campaign manager proved incompetent, he turned to his brother Bobby, who impressed Jack with his organizational abilities. Bobby took charge, firing those who failed to perform and promoting those who showed drive and determination. He became indispensable to his brother, who defied the charges of nepotism to name him attorney general. Everyone at the top needs someone whose advice he can trust implicitly.
  • Add a touch of showmanship. When Kennedy became president, the presidential aircraft was painted in an orange-white-and-black paint scheme with the phrase “Military Air Transport Command” stenciled on the side. For the New Frontier, this simply wouldn’t do. So Kennedy called in Raymond Loewy, a great industrial designer. Loewy came up with the pale blue and white paint scheme and the words “United States of America” stenciled on the fuselage. Kennedy also discovered the aircraft had a codename: Air Force One. That was too good a name to keep secret, and Kennedy began using it publicly.
  • 'Profiles in Courage' by John F Kennedy (ISBN 0060854936) Learn from mistakes. When Cuban exiles invaded that country with U.S. support early in his administration in an effort to overthrow Fidel Castro, the effort collapsed ignominiously. Kennedy did not blame the previous administration, whose idea it was. Instead, he accepted full responsibility, saying, “Victory has a thousand fathers, but defeat is an orphan.” Still, there were consequences. The director and deputy director of the CIA were both sacked. The Joint Chiefs of Staff were required to give their opinions to him in writing. Never again would Kennedy simply trust anyone’s word. Instead, he questioned his advisers to ensure all options were explored.
  • Do what’s right. Courage is a leitmotif running through Kennedy’s life. He possessed enormous physical courage, playing rough sports like football and starring on the Harvard swimming team despite his fragile frame. Before the United States entered World War II in 1941, Jack enlisted in the navy. After the PT-109 was sunk by a Japanese destroyer, he joked with his men to keep their spirits up. His best-known book is called Profiles in Courage, which chronicles the stories of United States senators who risked their careers by supporting unpopular causes.

When African-Americans were agitating for their civil rights, Kennedy at first hesitated to embrace their cause, fearing it would damage him politically. But on June 11, 1963, he did so wholeheartedly. Kennedy was the first president to call for equal rights for all Americans. And his words could not be taken back once he had spoken them. In addition to his physical courage, he had inner courage as well.

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Ten Ways to Lead With Honor

  • Ten Ways to Lead With Honor Serve Others. Whatever you do, should benefit others. This includes every product you help make, every service you help provide and every decision you make that impacts others. Not surprisingly, leaders are only leaders if they are followed. Effective and successful leadership depends on a leader’s capacity to inspire, influence, and mobilize followers toward their personal and their organization’s goals.
  • Lead with Integrity. Never… ever… lie, cheat or embezzle. All leaders, when faced with unsatisfactory poll numbers, comfort themselves with the idea that unpopularity is a measure of their boldness. Acting with integrity and moral purpose is not accomplished merely by adhering to a prescribed system of checks and balances; it’s a far more involved process of honoring personal and organizational values while allowing for the far-reaching consequences and implications of actions.
  • Show Respect to Everyone. Everyone desires admiration. Everyone. In spite of of your position or power, ensure you show everyone respect. President Theodore Roosevelt made a reputation of caring for everyone he met. He knew all the White House staff by name and made it a point to make them feel important.
  • 'Leading with Honor' by Lee Ellis (ISBN 098387932X) Agree to Disagree… Without Being Unlikable. We all disagree. As leaders we all have our own thoughts and agendas. If you disagree with someone, just remember to do it agreeably. Our politicians should take note of this one. To act otherwise is childish. But the greatest benefit of disagreeing well is not just that it will make conversations better, but that it will make the people who have them happier.
  • Take All Things to Account, Before Making a Decision. As leaders, we often have conflicting roles and responsibilities. We must lead organizations, provide value to stakeholders or the public, yet also care for our employees and staff. You cannot take a position that only values one party. As a leader, you must learn to take all things into account, and make balanced decisions.
  • Listen More. Talk Less. Leaders can only make good decisions, if they understand what is going around them. The last time I looked, you mouth isn’t necessary for comprehension, but you ears certainly are. Listening is the oldest, the most used, and the most important element of interpersonal communication. Listening is a skill. It can be improved through training and practice, just as can reading, writing, and speaking.
  • Reward and Discipline as Necessary. Ensure that those who deserve to be rewarded are recognized and that those that are poor performers get help. The best managers have an internal locus of control—they believe they can mend whatever’s wrong.
  • 'West Point Leadership Lessons' by Scott Snair (ISBN 140220597X) Treat Everyone Fairly. Again, everyone wants to be treated fairly. You can make a profit or get a promotion, while not taking advantage of someone else. Treating people with respect and dealing with everyone in a fair-minded and open matter are just two indispensable requirements for success as a manager.
  • Become an Expert at What You Do. You cannot lead, if you don’t know what you’re doing. Whatever you do, become the best at it. Life is too brief for you to make a bunch of mistakes or to accumulate enough experiences and learn from them; the true cost of your mistakes and experiences is your time—your life.
  • Lead a Balanced Life. We cannot lead, if we are unbalanced. Ensure that your family, spiritual and personal lives don’t take a back seat to your career. Incorporate the fact that neither you nor your job and/or life will ever be perfect.
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