Greetings! My wife and I had a gathering of friends and family at our home yesterday for a back-yard party to celebrate our youngest son's graduation from high school. It didn't take long, in the course of typical party conversation, for the topic of Derek Jeter's 3000th hit to come around. 
With this particular crowd gathered, any conversation about the relevance of professional sports would usually lead to contempt for making heroes of adults playing children's games and how absurd it is that some players are paid more each time they come to bat than a registered nurse or teacher makes in an entire year. It's easy and perhaps reasonable to dismiss any real significance to the 3000 hit event: it's a single individual's sports statistic and the entire basis of the public event amounts to pure entertainment, when our real heroes are those saving lives or somehow bettering the world. But yesterday's conversation never went there. Instead there was admiring talk of Derek Jeter's public persona and work ethic; how he seems genuinely human and humble and how hard he works to deserve the accomplishments he has achieved. And there seemed to be no doubt that the Derek Jeter we see is who he is: seemingly no Tiger Woods tendencies and behavior lurking in his shadows. It's as if people want him to be that way; to be an iconic hero - when more often people can't wait to see people crash and burn - especially those who sit high upon pedestals. I wondered, "What's going on here?" And it occurred to me that there is a connection to being a better CEO. One thing clear is that Derek Jeter has created a brand that people trust and believe in - and it's a brand that sells. It also seems that he works hardest on quality of product and performance and let's his reputation speak for itself. That doesn't mean that he does not work on his public reputation - and some would suggest his entire public image is highly managed and crafted. For all I know, he could have 20 experts on staff full time doing nothing but managing his public image and keeping the real Derek Jeter private, but, in this day and age, that's nearly impossible, and really his achievements and accomplishments as a ballplayer/athlete are really what speak most loudly. Perhaps he is just caring enough about his reputation that he remains careful and vigilant and recognizes the balance of rewards versus risk. I have argued previously in Monday Morning CEO that as CEO, your company's reputation is one of the key assets you must take direct responsibility for. As with any responsible investment, the growth in value is directly related to the management of the risks you apply to the asset. When it comes to reputation, foolish risks are easy to spot and are often catastrophic. Tiger Woods knows that all too well. But building a sterling reputation involves risk as well. Derek Jeter does his daily craft, literally in a fishbowl, under glaring spotlights and in front of millions of people. His every move is analyzed. His success is vilified as much as it is revered. The risk is literally playing in an arena that is so public - where, if you screw-up - there's nowhere to hide. Most of us would shy away from ever engaging in that degree of risk. But the enormous scope of his reputation is exactly because of the risks he is willing to take - and how he manages that risk. The returns, in his case are enormous and will likely continue to grow. If you want to grow your reputation, you must similarly be prepared to get into the spotlight and under the microscope: the greater the risk, the higher the potential reward - or catastrophic failure. Your job is to assess your own tolerance for risk and learn how to both manage your risk and measure your returns in order to calibrate a favorable balance. Another aspect of this story relates to Malcolm Gladwell's quote above from his book Outliers (see book review below). Part of Derek Jeter's personal success is certainly a product of his talent, but Gladwell points out that talent is never sufficient to gain significant success. Being on the team he is on; the support and added limelight of a top media center certainly contributed to his achievements. But he also grew-up behind a baseball field and could watch other kids play. Though his parents weren't baseball fans - they supported his interests - but also ensured he balanced his priorities - likely shaping the personal qualities and ethics that make Derek stand out. There is strong evidence that suggests there is greater value from simply dedicating yourself to concentrating on developing your talent. In most cases, that dedication, whether to a sport, computer programming or almost any endeavor, involves a minimum of 10,000 hours of focus, what he calls the "10,000 Hour Rule". No doubt, with his parent's support of their young, aspiring Yankee, Jeter did that as well. You can learn more about Outliers at the following link: http://www.gladwell.com/outliers/index.html The other half of the story was equally fascinating. It's about the young man, Christian Lopez in the stands who caught the historic homerun ball and quickly decided he was going to give it over to Jeter and ask for nothing in return. He certainly knew that the ball was worth quite a bit of money - an estimated $250,000 to memorabilia collectors - but weighed the value of what "felt" like the right thing to do - over the obvious opportunity for personal financial gain. The remarkable thing about this story is how this fan chose not to insert himself into the story - and by doing so was instead carried in on the shoulders of the moment. He was almost as big a part of the story as the hit was - and the lesson here should be obvious. It's Peter Drucker's often cited quote, "Doing the right thing is more important than doing the thing right" and how much mileage you can get in the long run when you do. This was a stunning example of "givers gain" in practice. There are many who think he's crazy, but there is no doubt that the rewards of handing the ball back to Jeter - who could easily write a large check himself - gave Mr. Lopez a huge boost in his reputation capital - and the very good possibility that his alignment with the Jeter brand will yield greater value for him in the long run. Is Money The Root of All Evil? This leads me to the last nugget from the party. One guest, who frequently conducts business with some highly successful and very wealthy business people, noted "they got that way (wealthy) by being ruthless and never giving away a penny." I know that's certainly true of some and a common perception by many. I told him that the most successful, wealthy people I have known and especially the CEOs I work with understand that wealth is realized in two ways: when you create value for others - or invest your capital wisely. I suppose it is a choice you can make and a decision about how you want to lead your life.
As always, wishing you a great and successful week ahead. 
Philip R. Liebman Managing Director, Strat4 Group Chair, Vistage International | 
