In Cash for Chocolate, WSJ outlines several creative ways to raise funds for those of you looking for an innovative solution. I like the idea of "chocolate bonds" where you receive a box of chocolates every month as part of your investment return, or receive a "grocery discount" when investing in a…
“Pride is concerned with who is right. Humility is concerned with what is right.” — Ezra Taft Benson
I was ready to return to our series on strategic finance after my last column about the integrity of umpire Jim Joyce and the accountability of BP… until I read a comment in the Washington Post by Jeffrey Pfeffer, a professor of organizational behavior at Stanford University.
Citing Henry Ford’s infamous quote, “Never complain, never explain,” as the preferred way for business leaders to deal with disasters like the Gulf oil spill took me by surprise.
BP is the poster child for a failed apology
In appearing to criticize BP’s CEO Tony Hayward for apologizing for BP’s actions, Mr. Pfeffer extols the value of being on the “winning side,” that people respect strength and diffidence does not convey winning or power. Research in social psychology, he continues, “shows that acting embarrassed or remorseful conveys less power and results in less favorable impressions than acting angry.”
In the context of BP’s PR debacle, those comments seem wildly misplaced. Does Mr. Pfeffer think BP would have won our hearts and minds by taking no responsibility, “never explaining,” and that he should have acted like he was angry that people blamed BP for this unexpected accident? I can’t imagine worse advice than if I recommended that you chase down every meal with a quart of engine oil.
Everyone knows WHAT they're doing ... no exceptions ... and most know HOW they're doing it ... but few know WHY they're doing it! Simon Sinek argues that people make emotional decision to buy or follow someone only because they BELIEVE what YOU believe ... which is all about WHY…
Yesterday, I referenced a shorthand version of a business plan outline. Most of you saw the words "business plan" and immediately started looking for the key to the gun cabinet, conveniently placed right next to the liquor cabinet ... because that phrase usually incites a painful, grinding noise between your…
I've written numerous posts about business plans ... the importance of preparing them, what should be in them, etc. Seth Godin has another, very simplified concept about what's really needed: * Truth * Assertions * Alternatives * People * Money Cuts to the quick, doesn't it? What do think is…
Like we need more bad news in or about California ... but the Chief Executive organization's survey of Best and Worst States for Business 2010 finds the Golden State's golden egg is actually something else that's been painted over ... if you catch my drift. We're not just last for…
Once in awhile, it’s nice to see your advice echoed in the halls from someone like Warren Buffett. Since my early investment and venture capital days, I have promoted the concept of a simple “terms sheet” to set down the deal terms between the companies involved, making sure that the businessmen understand the business issues first.
Your attorneys serve an valuable role but it’s invaluable for both sides to be very clear about the business objectives (more…)
“The most serious mistakes are not being made as a result of wrong answers. The truly dangerous thing is asking the wrong questions.”– Peter Drucker
I have been working recently with a young CEO-in-waiting who is eager to move into the top spot. He recognizes, however, that his struggle to “think strategically” may be keeping him back. On a tactical level, he is very efficient, discharging the assignments given to him, working his way through his daily action list and dispatching players to their intended destinations. He’s proud of his accomplishments, as he should be, but he “can’t see the lawn for the blades of grass,” and is constantly wrestling with how to develop a strategic perspective.
Ironically, many executives bear a subconscious fear about actually getting to that strategic level. After all, it’s a little harder to figure out what to do than to simply — do. It’s more demanding to establish the flight plan than to follow it. Creating the plan also demands more personal accountability, the conundrum that befuddles so many executives in the first place.
What does it mean to “think strategically?” (more…)
Seth Godin recently wrote about two lemonade stands and how simple things in the approach made such a big difference. My colleague, Jonathan Fields, also commented on this post, expanding upon some of the key differentiators that apply to all of our businesses. Simple concept, Provocative Ideas. Free lemonade, anyone?