Strat4 - Solutions for Growing Companies
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Strat4 - Strategic Leadership & Solutions for Growing Companies

Monday Morning CEO


Week of April 18,  2011   - Tax Day: Personal income tax filings due today     

 

 

"The art of communication is the language of leadership."  

 

 -James Humes*

 

*see lead article below 

 

If you missed my appearance on Make Your Move Radio with Alan Beaulieu - you can download the show by clicking here

 

 

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in this issue
Business Models and Warren Buffet
Recommended Reading: You Say More Than You Think
WikiLeaks and Protecting your Reputation Capital
P Liebman Portrait 

 

Greetings!


Thumbs down! Are we preparing or prepared for tomorrow's business leaders?

 

There was an interesting article that appeared in the New York Times this weekend addressing the cultural and social impact of hand-held devices. (http://tinyurl.com/nytimes-com-Thumbs-Down) Beyond the issues of etiquette, life-work balance and the even employment and privacy law that I have addressed in Monday Morning CEO in recent editions - it also made me wonder how our future leaders will be different from what we are today - and whether we are prepared for the changes that might lie ahead.

 

The pace of business has hastened as the tools and even the tools have changed dramatically. At the same time, it seems that the temperament and expectations of today's young executives and future CEOs are perhaps changing as well. Today we have virtually unlimited information at our fingertips at any hour of the day - and similarly the ability to reach anyone, anywhere just as freely. If patience was once a virtue, it was also a necessity that seems to be less needed today as expectations that all time-horizons are shrinking with each wave of new technology that washes through the world.

 

The recent breed of Generation X CEOs, senior executives and business leaders (those born between 1966 and 1976) are feeling the upward push of Gen-Y or "Millennials" (born roughly between 1977 and 1994) employees and leader protégés challenge their ability to keep up with and adapt to the speed that technology moves and the world changes. Dr. Tim Elmore leads an Atlanta based non-profit called Growing Leaders (www.GrowingLeaders.com ) and has written a great deal about what he describes as Generation iY - the younger Millennials who's lives have been defined by the Internet and technologies such as iPods, iTunes, iChat, iPhones and now iPads), He offers some excellent advice in an article titled "Working With Generation iY: What they expect on the job or on a team".  

http://tinyurl.com/Working-With-Gen-iY

 

With each round of increasing influence the advancing infiltration of information technology has our lives, there seems to be an increase in social isolation. My teenage children clearly demonstrate that they don't have the patience for voice conversations over the phone - insisting to text message instead. At home, we compete with Facebook, Twitter, email and texting to just engage in a casual conversation.  Email has gone way beyond replacing "snail mail" and now carry's with it a growing expectation of near instantaneous response and virtually constant contact. Just watch anyone's relationship with their Blackberry or iPhone and it's clear that email must be read immediately and often takes priority over most anything else - including driving attentively.  Skype and other visual-contact technologies have not necessarily made face-to-face meetings less necessary - they may be feeding into a trend that further diminishes critically important human contact and connection. (It is a widely accepted medical and scientific fact that newborn babies fail to thrive - and may even die from the absence of human contact - you can read about this at Livestrong.com (http://www.livestrong.com/article/72120-effect-human-contact-newborn-babies/)

 

I think that the essence of real leadership belies the notion that all these technologies are even compatible with the qualities of an effective leader. In my Strozzi Leadership - based view, leadership is rooted in being present, connected and centered (meaning balanced and fully resourceful). I realize that presence can be generated beyond the range of direct physical contact by creating a trusted relationship, I believe in order to truly develop trust, our brains are still wired to require some cues that can only be experienced in person. We've all been fooled too many times not to. 

 

Connectedness is even harder to establish through virtual contact. We may believe that an online social network - or even our company represents a community to which we belong, but the "reptilian" or "old" part of our brain that engages full-time on ensuring our survival (the amygdala) is not easily fooled by the intellectual reasoning of our neo-cortex into believing that we actually live on Facebook -and that the neighborhood is safe and secure. Connectedness requires that our brains get enough emotional information to trust that we are safe from harm - and I don't believe that we can achieve that in the absence of some level of face-to-face interaction. Lastly, the need for a leader to demonstrate that he or she can provide answers, direction and other critical guidance when needed is key to people voluntarily following. When we are stressed by fear, anger or anxiety, our ability to make fully resourceful decisions is greatly compromised. (It's why we are wisely taught it's not a good idea to make decisions when you are angry.) I believe it is hard to demonstrate your resourcefulness to a degree that others can trust and believe in - when they have never met you or even actually seen your face and heard your voice.  So much of what we communicate has little to do with the words we use - and is more related by the tone and pace of how we say things - and by the way we present ourselves while we say them.

 

My question is: Will our next generation of leaders have what it takes to actually lead? I watch people furiously "thumbing-away" downward at their mobile devices and wonder. In ancient Rome, "thumbs down" was the signal that a defeated gladiator should be condemned to death, while "thumbs up" meant he was to be spared.  To me, tomorrow's leaders will need a lesson or two in "thumbs up" behaviors - if they are going to fully be able to take their rightful place in the world.  

 

The rate that new information becomes available will continue to change the way we live and work. Information will always be power, but how that power is used is what makes for great leaders. Balancing patience with vision, drive and determination; dealing with uncertainty when no amount of information makes decisions clear and matching emotional intelligence, or EQ with IQ in tomorrow's young leaders are going to be the challenges of the current leaders in our schools, universities and workplaces. We might just all learn how to text louder if they are ever going to get the message.

 

Speaking of messages - today's quote is by former presidential writer James Humes was a speech writer to five presidents, including Ronald Reagan. He is a best-selling author, having written 30 books. There is a terrific interview with him you can read by clicking here: 

 

http://tinyurl.com/Interview-With-James-Humes

 

Finally, there is also some sage advice from Warren Buffet- in an article available on the Vistage member website and important information on protecting your Reputation Capital.  

 

As always, wishing you a great and successful week ahead.  

Cropped PL Signature

Philip R. Liebman

Managing Director, Strat 4

Group Chair, Vistage International

 

P.S.

This really is YOUR LAST CHANCE to be my personal Guest on April 26th. Glenn Waring will be leading a workshop of Effective Financial Management for CEOs. This is a must-attend program whether you are financially astute - or needing to gain a better understanding of your financials, get better control of your financial reporting, how to work with your accountants or negotiate with your bank.  

 

If you curious about becoming a Vistage Member - this is a perfect opportunity to get a look behind closed doors at what my members experience every month. I have a very limited number of guest opportunities. Please call me right away to determine if you are qualified - and for availability.  

 

Business Models-What Makes a Great Business -

Notes from Warren Buffet's presentation at Harvard Business School

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Buffett

If you ask Warren Buffet what he looks for in a business before he buys or invests in it, he routinely says: "A business with a durable competitive advantage that even a moron could run... because sooner or later a moron will end up running it."  In this article, Victor Cheng points out that selling an outcome versus selling a product - is one way companies can demonstrate their competitive advantage.  

 

You can CLICK HERE to download a PDF of the article 

Recommended Reading -  

 

Obliquity -The best way for a business to maximize profits is not to seek to maximize profits

 

Gen iY: Our Last Chance to Save Their Future 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Obliquity Book Jacket

One of the reasons Jack Welch did so well for General Electric's shareholders, Mr. Kay says, is that he worried about workers and customers while regarding shareholder value as "the dumbest idea in the world." I recently read a review of this book at the Wall Street Journal online - and immediately bought it.

John Kay's new book, Obliquity, sets out an argument that goals are often best achieved by focusing on ends that have value in and of themselves.

He points to two of the world's most admired companies, GE and Merck,  and how they were led to prominence by not focusing on profits or increased shareholder value, but by concentrating on customers and employees.  

 

http://tinyurl.com/Obliquity-by-Joeh-Kay-Amazon  

 

 

 


Tim Elmore

As I mentioned in the lead article, Tim Elmore makes some valuable observations about the younger "Millennials" in our lives - at home and in our businesses. This book will not only help you better understand the forces that make them think and behave the way they do - but insight into how you can best work and communicate with them.

 

http://tinyurl.com/Gen-iY-by-Tim-Elmore

 


 WikiLeaks and Transparency - Protecting your Reputation Capital

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Keith Darcy

I had the pleasure of speaking with Keith Darcy, the Executive Director of the ECOA (Ethics and Compliance Officers Association - www.TheECOA.org ) at a dinner held by the President of St. Thomas Aquinas College (www.STAC.edu) where I am a member of the President's Council. The ECOA is a worldwide organization committed to to "ethics, compliance, and corporate governance resources to ethics and compliance practitioners worldwide. He spoke poignantly about the value of "reputation capital" and why it needs protection.

 

In my Fiscal Leadership presentations I make the argument that the principal role of the CEO is to protect the key assets of their company and manage the risk that is leveraged against those assets, which include Cash Capital Assets, Human Capital Assets and Reputation Capital Assets.

 

I will write more about this in next weeks edition of Monday Morning CEO. 

 

I urge you to have a look at this article: 

 

 http://tinyurl.com/Protecting-Reputation-Capital  

 

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