Commerce CRG Mid-Year - Qtr2 2006 Market Review Utah, Davis, Washington and Summit County Office Markets

The problem with Masters of the Universe

If it is tough at the top, then it is hardly surprising that the top jobs are invariably filled by determined, dominating people - the alpha males who are the subject of this new book. Its authors, Kate Ludeman and Eddie Erlandson, are a husband-and- wife executive coaching team, who have worked with more than1,500 chief executives and senior executives, including Michael Dell and Kevin Rollins at Dell, and Ebay's Meg Whitman.

As good coaches, the authors avoid being unfairly judgmental about their subject. They recognise the alpha male's strengths as well as his weaknesses, and argue that the world needs its alpha leaders right now.

But when those strengths turn into liabilities "alpha male syndrome" has struck: "The stronger the positive qualities, the more likely they are to erupt as negatives." Alpha males display extreme confidence. They "want excellence, they want it now, and they're sure they know how to get it", the authors explain. But, they add, this self- assurance can go too far.

"A great deal of wreckage is caused by boys behaving badly. The healthy ones - well-balanced human beings in full command of their alpha strengths - are natural leaders who are trusted by colleagues, respected by competitors, revered by employees and loved by Wall Street. But other alpha males are risks to their organisations - and sometimes to themselves."

The authors should know what they are talking about; they are self-declared alphas. Ludeman is a coach with a doctorate in psychology, Erlandson a surgeon turned health guru. One high-tech entrepreneur told them, after he had lost his investors $20m: "Looking back on it, I wasn't always right, but I was never in doubt." That is an alpha male talking. But what about alpha females? Do they not get to the top as well?

"Alpha women want to lead, but they don't necessarily need to rule," the authors say. They are not as belligerent or as aggressive as their male equivalents. For this reason the authors have chosen to focus on the real problem cases: the men.

How can you tell when alpha male syndrome is afflicting your business? Consider how meetings are run, they suggest. Are they like a particularly unpleasant episode of the competitive television programme The Apprentice? If so, they can become "theatres for the Alpha Male Show". Often there will be a gap between how an alpha male leader thinks the meeting has gone and the reality.

To complicate the matter further, we need to understand that there are four types of alpha male leader, say the authors: the commander, the visionary, the strategist and the executor.

1. Commanders are dominant high achievers, deŽmanding the best from themselves and others. But they may also create fear, suppress disagreements and stifle open communication.
2. Visionaries are passionate enthusiasts, resilient and indefatigable. However, they can lose sight of the needs of today, dazzled by their own vision of tomorrow.
3. Strategists are strong decision-makers. They are innovators, finding opportunities buried in piles of data. But they can seem remote and dispassionate, and unable to engage with arguments that are not based on hard facts.
4. Executors are brilliant deliverers of results. They are strong on detail and superb problem-solvers. But they may prove to be excessively demanding micro-managers, often disappointed with others' efforts.

Alpha males may end up playing several roles or "personas" (from the Latin for mask). But with help, harmful personas can be abandoned in favor of the authentic self. "If you and you alone change, other people will also change," the authors say.

Alpha males are bad for everyone's health. The old tycoon's joke: "I don't get ulcers - I give them", is just wrong. In fact, alpha males are often adrenalin addicts.

"Those adrenalized bodies in business suits are all dressed up with nowhere to go," Ludeman and Erlandson say. "Alpha adrenalin junkies not only make themselves sick, they create a toxic environment for everyone else. That's why organizations dominated by dysfunctional alpha males are likely to have a higher incidence of illness, absenteeism, burnout, turnover and early retirement than businesses run by healthy alphas and non-alphas." Ludeman and Erlandson know their subject well. Alpha males "think they're delivering a wake-up call when in fact they are hurling verbal grenades". You might admire them but do you want to work with them? And if you are one, how might you moderate your behavior? Unsurprisingly, for a couple with a coaching business, they feel that coaching is the answer.

You can even complete an online self- assessment questionnaire (soon to be available at www.AlphaMaleSyndrome.com). Of course, this may lead to further verbal jousting along predictable lines: "My alpha male syndrome is bigger than yours."

Source: The Financial Times, Qtr2 2006

More Mixed-Use Conversions?

Federal Realty Investment Trust’s $150 million purchase of three Boston properties from Eastern Development announced on Monday bolsters the Rockville, Md.-based REIT presence in the region. And, as with its 2005 purchase of Assembly Square, Federal is looking to convert at least one of the properties into a mixed-use center.

At the heart of the deal is Linden Square. Federal plans to invest $50 million to redevelop the property to create a project with more than 200,000 square feet of retail, 17,000 square feet of office space, a spa and a health club. The first two phases of the redevelopment campaign will be completed in 2008.

“The bulk of the investment in this deal is in Linden Square, which is a fabulous opportunity,” according to Jeff Berkes, chief investment officer and executive vice president for Federal. “ It’s off the charts in income and spending potential and there is limited competition in terms of retail space. We expect significant net operating income and rental growth from the Linden property. The other two properties are good properties in their product category, but Linden Square is truly special.”

Linden is situated in one of the most affluent communities in the area. Average household income within a three-mile radius of the property is $191,000, according to Berkes.

Source: Retail Traffic Online, 2006

Take your staff's pulse

As a business services firm, BDO Stoy Hayward depends entirely on the quality of its 2,900 people. As part of its efforts to keep them engaged, it takes their pulse each year in a survey covering a wide range of issues, from the firm's strategy and leadership to how they feel about their careers.

The findings are split by business unit, service stream (audit, tax, corporate finance), gender, grade and seniority. "If a particular group of people has got an issue in a particular area, we can quickly see what it is and tackle it at that level," says Tony Perkins, head of the firm's London operation, which employs 1,100 staff.

In one case, the survey revealed that recently qualified, twenty-something employees were unhappy with their appraisal forms, finding them cumbersome to complete and inadequate at conveying their objectives. The procedure was duly improved.

Staff in each office meet to discuss the survey results - administered by ISR, the employee research and consulting firm - and to work out what action needs to be taken. "Each group monitors these actions over time, so every member of staff can see that the comments they have made are followed up," says Mr Perkins. Source: The Financial Times Limited 2006