I apologize for my long absence. This blog has been consumed by the demand for the political satire that I write, which has resulted in the development of three books this summer:
The Left isn’t Right
The Right is Wrong
The National Platform of Common Sense
As a result, a special blog has been created for the irreverent ramblings of the Common Sense Czar (http://TheCommonSenseCzar.blogspot.com), and the political satire that formerly resided within this blog has been ported to that new site.
This blog (OHaraGlobal) will return to its origins: writings focused on the optimization of personal and organizational performance … served with an occasional slice of humor. I hope you enjoy both of the blogs … or at least one of them. :O)
Copyright © 2010 Dr. Terry O’Hara. To support viral distribution, this article may be copied, reprinted, forwarded, linked, or published in any form as long as proper attribution is given to the author and no changes are made.
Saturday, August 14, 2010
Wednesday, December 16, 2009
A Christmas Wish
Please join me in thanking our troops this holiday season for their gallant service. They stand in harms way so that we may live our lives in freedom and help others move toward that same goal. It should not matter whether you support any related political policies. It should only matter that these dedicated individuals represent us all in the most pure and unselfish way.
Each year, Xerox gives us a way to reach out and thank our troops for their service. It only takes a few minutes of your time (three mouse clicks) to share your thoughts and prayers with a member of our armed forces. Please take a moment to reach out to these brave men and women to let them know you care by going to www.LetsSayThanks.com.
Thank you!
Each year, Xerox gives us a way to reach out and thank our troops for their service. It only takes a few minutes of your time (three mouse clicks) to share your thoughts and prayers with a member of our armed forces. Please take a moment to reach out to these brave men and women to let them know you care by going to www.LetsSayThanks.com.
Thank you!
Tuesday, April 28, 2009
“The Secret” Revisited
I recently answered a question that appeared in LinkedIn. The individual who submitted the question was requesting suggestions on how to inspire and motivate an audience as a speaker. What were the "secrets" of becoming a great speaker?
My response wasn’t the first. Other well-meaning individuals had replied with good advice that met the general parameters of the question.
Now, those of you who know me or have heard me speak know that I just can’t leave well enough alone. No, this was an opportunity to have some fun, and interestingly enough, no one had suggested the use of humor. So … this is the direction I took (and I can’t help wondering how many readers thought I was serious). Additionally, the gentleman who asked the question had written and co-authored a few books … most of which had titles that described “Secrets” of some sort. As you may have guessed, I couldn’t leave that opportunity alone either. Enjoy!
*****
“All of the answers you've already received will help shape your future as an upper echelon speaker. Knowing your audience and knowing your subject ... and being passionate about it ... are essential elements of any inspirational presentation. Being succinct, using parables and being exceptionally well prepared are also great tips.
“Then, there's my approach. Find a less competitive niche. Very few professional speakers are concentrating on achieving mediocrity. Make sure you receive payment in advance; then, just wing it! Hey, you may never be hired back, but there are thousands of companies out there that will make at least one mistake when booking a speaker. You'll almost never run out of new opportunities.
“When you think about it, professional speaking must have its own bell curve. It's almost a Darwinian certainty. Not everyone can be great. So, why not differentiate yourself like me? Carve out your own segment of the marketplace: like REALLY POOR speaking. It's still a virgin territory. Nobody is pursuing it … although, if the economy continues to struggle, I may be forced to broaden my horizons and compete in that area as well.
“If you ignore my advice and, instead, choose to pursue excellence (hmm, that might be a good title for a book), whatever you do, don't use humor ... particularly self-deprecating humor. Top speakers need to be enamored with their press clippings (even if they're the ones who wrote them). If you're committed to competing at the top, you've got to learn take yourself "too" seriously. Also, try to become "difficult." Demand limos and first class travel arrangements (including hotels and airfares; make ridiculous demands of the hotel (like having M&Ms waiting for you in your room ... sorted by color). It's also important that you act arrogant toward the staff; demeaning them whenever possible. ALWAYS complain about the room in which you are to speak (i.e., poor sound system, bad lighting, too hot, too cold) and make them rearrange the seating at the last moment if possible. Use your imagination. This is the fun part of the job, and this is what the people that hired you will remember ... even more so than your actual speech.
“In any event, I do wish you success. Have as much fun pursuing your dreams as I had writing this response.
“P.S. I read one of your other books (49 Marketing Secrets (that work) To Grow Sales), and I used each one of the "secrets." As a result, I have 49 great clients, but I've never been able to grow beyond that number. What am I missing? :) ”
2009 (C) Dr. Terry O'Hara
Friday, January 30, 2009
An Open Letter to CEOs Who Are Considering Layoffs to Cut Costs
If “misery loves company,” as the saying goes, you’re in luck. Hundreds of companies, just like yours, are scrambling to survive these difficult economic times. Most CEOs will default to “cost-cutting,” which generally translates into layoffs, salary reductions, reduction or suspension of benefits, etc. Sound familiar?
These solutions are not inherently evil (as the press may choose to paint them), but they do pose a real challenge:
• Cut too little … and your organization loses market share and potentially “dies” in the near-term
• Cut too much … and your organization loses market share and potentially “dies” in the long-term
The hard-dollar cost/benefit analysis associated with cost-cutting alternatives is fairly clear. However, the predictable soft-dollar costs associated with the negative operational impact these alternatives can have (i.e., on productivity, organizational trust, corporate reputation, etc.) are often overlooked and, unfortunately, tend to be far more significant and insidious.
Having been involved in successful corporate turnarounds for over 30 years, I can confidently say that the greatest challenge lies within knowing how to surgically cut costs while optimizing near and long-term organizational performance. Regrettably, tradition decision-making processes are ridiculously inadequate in this regard.
For example: layoffs are traditionally driven by hitting a “hard” financial number; i.e., you need to reduce costs by “X” dollars (a number that usually has a lot of zeroes after the first digit). Someone within the organization does a “rough cut” of how many employees this will impact, and you announce it to the press to “soften the blow.” It’s always a round number (i.e., “Citibank will eliminate 53,000 jobs,” “Dell will cut 8,900 worker,” etc.), which means that their CEOs really haven’t got a clue about how many people will need to be severed and, more importantly, who they will be. As a result, the huge risk associated with any layoff is picking the wrong people. So, how are they traditionally picked?
Generally speaking, the selection occurs in one of two ways: (1) Managers select “known” poor performers, add a few employees they personally dislike, and guess at the rest, perhaps using some criteria like length of service, subjective evaluations, etc. to make their decisions seem less arbitrary; or (2) companies construct an “early/voluntary retirement” program, which costs more in severance but mitigates some of the organizational stress otherwise associate with layoffs. The reality is that your company loses good employees under either scenario and your remaining employees, having witnessed the randomness of the staff reductions, exhibit a diminished level of focus, commitment and productivity. This deadly combination ultimately weakens your firm’s operating performance.
There is an alternative; one that is so powerful that it enticed me to reevaluate how I consult with firms. Some associates of mine developed a series of workshops that significantly improve the performance of participants, both personally and professionally, in a way that inures to the benefit of the organizations they serve. These workshops have been consolidated into what has become known as the EnCompass Program™ (www.EnCompassResources.us).
The EnCompass Program™ helps individuals gain clarity of purpose and potential and provides them with the tools to effect immediate and sustainable change. As a result, many participants gain a renewed sense of commitment to their careers, passion for what they do, and the confidence to unleash their creativity and best efforts in a way that dramatically increases productivity. Others are confronted with the reality that they are not committed to their present career and should pursue their passions elsewhere. This revelation results in their self-selecting “out” of your organization, which results in no severance exposure and a collateral benefit of removing their negative influence from the rest of the employee-base. The business results are stunning.
This is not sales “puffery.” The impact of the EnCompass Program™ has been measured against standard psychological tests that are extremely well recognized within the context of organizational development and clinical psychology, and its performance exceeds anything of which I am aware (http://www.encompassresources.us/results.html). Participants routinely enjoy a higher level of performance, improved communication, and much greater satisfaction with respect to their personal and professional lives. Friends, family members and co-workers also note an almost immediate positive change in interacting with these individuals.
With the challenges you face today, you can’t afford to be wrong. In the past, when I was in your position, I had to rely on business instincts and a bit of luck to go along with the limited information that was available. Today, there’s a new tool that can help you execute the most important element of your job; i.e., how to attract and retain the very best employees to optimize business performance. If you do that right, you effectively will insulate your company from economic downturns and position it to capitalize more quickly when the economy rebounds. You will enjoy the competitive advantage of having the right employees in place all the time, regardless of economic conditions.
As a former CEO, I always thought it was my responsibility to provide the best possible work environment for my employees and the best possible results for my shareholders. If you share that philosophy, I seriously encourage you to explore the EnCompass Program™.
2009 © Dr. Terry O’Hara. All Rights Reserved.
These solutions are not inherently evil (as the press may choose to paint them), but they do pose a real challenge:
• Cut too little … and your organization loses market share and potentially “dies” in the near-term
• Cut too much … and your organization loses market share and potentially “dies” in the long-term
The hard-dollar cost/benefit analysis associated with cost-cutting alternatives is fairly clear. However, the predictable soft-dollar costs associated with the negative operational impact these alternatives can have (i.e., on productivity, organizational trust, corporate reputation, etc.) are often overlooked and, unfortunately, tend to be far more significant and insidious.
Having been involved in successful corporate turnarounds for over 30 years, I can confidently say that the greatest challenge lies within knowing how to surgically cut costs while optimizing near and long-term organizational performance. Regrettably, tradition decision-making processes are ridiculously inadequate in this regard.
For example: layoffs are traditionally driven by hitting a “hard” financial number; i.e., you need to reduce costs by “X” dollars (a number that usually has a lot of zeroes after the first digit). Someone within the organization does a “rough cut” of how many employees this will impact, and you announce it to the press to “soften the blow.” It’s always a round number (i.e., “Citibank will eliminate 53,000 jobs,” “Dell will cut 8,900 worker,” etc.), which means that their CEOs really haven’t got a clue about how many people will need to be severed and, more importantly, who they will be. As a result, the huge risk associated with any layoff is picking the wrong people. So, how are they traditionally picked?
Generally speaking, the selection occurs in one of two ways: (1) Managers select “known” poor performers, add a few employees they personally dislike, and guess at the rest, perhaps using some criteria like length of service, subjective evaluations, etc. to make their decisions seem less arbitrary; or (2) companies construct an “early/voluntary retirement” program, which costs more in severance but mitigates some of the organizational stress otherwise associate with layoffs. The reality is that your company loses good employees under either scenario and your remaining employees, having witnessed the randomness of the staff reductions, exhibit a diminished level of focus, commitment and productivity. This deadly combination ultimately weakens your firm’s operating performance.
There is an alternative; one that is so powerful that it enticed me to reevaluate how I consult with firms. Some associates of mine developed a series of workshops that significantly improve the performance of participants, both personally and professionally, in a way that inures to the benefit of the organizations they serve. These workshops have been consolidated into what has become known as the EnCompass Program™ (www.EnCompassResources.us).
The EnCompass Program™ helps individuals gain clarity of purpose and potential and provides them with the tools to effect immediate and sustainable change. As a result, many participants gain a renewed sense of commitment to their careers, passion for what they do, and the confidence to unleash their creativity and best efforts in a way that dramatically increases productivity. Others are confronted with the reality that they are not committed to their present career and should pursue their passions elsewhere. This revelation results in their self-selecting “out” of your organization, which results in no severance exposure and a collateral benefit of removing their negative influence from the rest of the employee-base. The business results are stunning.
This is not sales “puffery.” The impact of the EnCompass Program™ has been measured against standard psychological tests that are extremely well recognized within the context of organizational development and clinical psychology, and its performance exceeds anything of which I am aware (http://www.encompassresources.us/results.html). Participants routinely enjoy a higher level of performance, improved communication, and much greater satisfaction with respect to their personal and professional lives. Friends, family members and co-workers also note an almost immediate positive change in interacting with these individuals.
With the challenges you face today, you can’t afford to be wrong. In the past, when I was in your position, I had to rely on business instincts and a bit of luck to go along with the limited information that was available. Today, there’s a new tool that can help you execute the most important element of your job; i.e., how to attract and retain the very best employees to optimize business performance. If you do that right, you effectively will insulate your company from economic downturns and position it to capitalize more quickly when the economy rebounds. You will enjoy the competitive advantage of having the right employees in place all the time, regardless of economic conditions.
As a former CEO, I always thought it was my responsibility to provide the best possible work environment for my employees and the best possible results for my shareholders. If you share that philosophy, I seriously encourage you to explore the EnCompass Program™.
2009 © Dr. Terry O’Hara. All Rights Reserved.
Saturday, January 10, 2009
“These are the times that try men’s souls.”
Thomas Paine wrote those words in The Crisis; a collection of articles he created in 1776. In that very same year and on this very day (January 10th), he wrote a 50-page, politically-charged pamphlet entitled, Common Sense.
Given that the quote still seems particularly applicable, it would seem that the title of his pamphlet, Common Sense, has yet to catch on in Washington, D.C. We’ve already witnessed a $2 million acceptance ceremony; Senators and Congressmen have continued the tradition of hosting parties (at taxpayers’ expense) to kick off their new terms, and we are about to foot the bill for a $10 million inauguration … all in the middle of an economic crisis.
When do you think we will begin to elect individuals who exhibit true leadership … and, most of all, “common sense?”
2009 © Dr. Terry O’Hara. All Rights Reserved.
Given that the quote still seems particularly applicable, it would seem that the title of his pamphlet, Common Sense, has yet to catch on in Washington, D.C. We’ve already witnessed a $2 million acceptance ceremony; Senators and Congressmen have continued the tradition of hosting parties (at taxpayers’ expense) to kick off their new terms, and we are about to foot the bill for a $10 million inauguration … all in the middle of an economic crisis.
When do you think we will begin to elect individuals who exhibit true leadership … and, most of all, “common sense?”
2009 © Dr. Terry O’Hara. All Rights Reserved.
Thursday, January 1, 2009
Top Ten New Year’s Resolutions
Have you ever wondered what the Top Ten New Year’s Resolutions are? Well, according to a recent survey, here they are:
1. Spend More Time with Friends and Family
2. Improve Your Fitness
3. Lose Weight
4. Quit Smoking
5. Enjoy Life More
6. Quit Drinking
7. Get Out of Debt
8. Learn Something New
9. Help Others
10. Get Organized
Now, these are all nice resolutions, but did you know that 22% of people give up on their resolution in the first week? Actually, more than half of us will have abandoned our “resolutions” by the end of March. I guess we’re just not very “resolute.”
Perhaps it’s because we tend to make several resolutions, and in the end, they overwhelm us. Since I’m a professional consultant, I thought I’d help “resolve” this dilemma once and for all.
Let’s look at the Top Ten Resolutions to see how we might consolidate them to make them more achievable.
The first one, “Spend More Time with Friends and Family,” seems reasonable enough, so I think we should try to keep it.
The second and third resolutions, “Improve Your Fitness” and “Lose Weight” both make sense as well. However, they seem somewhat similar. If you “Improve Your Fitness,” you’re probably going to “Lose Weight,” so let’s just combined them into “Improve Your Fitness.” Already, we’re making progress!
Numbers 4 and 6 also seem to be a bit similar: “Quit Smoking” and “Quit Drinking.” If these two make your Top Ten Resolutions, you’re probably not very “fit” either. If we just merge these into “Improve Your Fitness,” we’ve already eliminated three resolutions.
The seventh resolution, “Get Out of Debt,” seems apropos for the times. We may not even need to take this one off the list if we can get Congress to agree to include us in the bailout. But wait a minute! The next one is “Learn Something New.” You know, if we learned not to spend more than we can afford, we wouldn’t need to “Get Out of Debt” because we wouldn’t BE in debt. Great! Let’s just go with “Learn Something New,” and now were down to six.
Numbers 9 and 10 have some synergy as well. If we “Get Organized,” we’ll have more time to “Help Others.” Since resolving to “Help Others” seems to have the greater potential between the two, let’s just stay with “Help Others” and assume we’ll “Get Organized” to do it.
That leaves us with five resolutions, which is certainly more “doable” than ten. We’ve got:
1. “Spend More Time with Friends and Family”
2. “Improve Your Fitness”
3. “Learn Something New”
4. “Help Others” … and one we haven’t talked about …
5. “Enjoy Life More.”
Now, that’s what I call progress!
What else can we do?
Well, it seems to me that if you “Spend More Time with Friends and Family,” you’re undoubtedly going to have more opportunities to “Help Others.” Similarly, if you “Improve Your Fitness,” you can live longer … and if you live longer, you’ve got more time to “Learn Something New.” But, hey … you’ve also got more time to “Spend with Friends and Family” and to “Help Others.” So, maybe “being fit” is the real key. That leaves with just two!
I guess it’s time to look at the last one: “Enjoy Life More.” That one seems a bit nebulous to me. What does it mean? Well, for one, we’d probably “Enjoy Life More” if we spent more time with our friends and families. I guess the same would be true if we improved our fitness, lost some weight, quit smoking (if we smoked in the first place), and quit drinking (if drinking was threatening our health or the health of others). Come to think of it, we’d probably “Enjoy Life More” if we weren’t in debt and were able to learn something new. The same could be said if we found a way to consistently help others and to organize our own lives in a way that would relieve some of our stress.
So there you have it. You really don’t have to try to stick with ten resolutions, when you only have to concentrate on one. So, as we enter into the New Year, I offer this sage advice: commit to only one resolution.
“Enjoy Life More!
2009 (c) Dr. Terry O'Hara. All Rights Reserved.
1. Spend More Time with Friends and Family
2. Improve Your Fitness
3. Lose Weight
4. Quit Smoking
5. Enjoy Life More
6. Quit Drinking
7. Get Out of Debt
8. Learn Something New
9. Help Others
10. Get Organized
Now, these are all nice resolutions, but did you know that 22% of people give up on their resolution in the first week? Actually, more than half of us will have abandoned our “resolutions” by the end of March. I guess we’re just not very “resolute.”
Perhaps it’s because we tend to make several resolutions, and in the end, they overwhelm us. Since I’m a professional consultant, I thought I’d help “resolve” this dilemma once and for all.
Let’s look at the Top Ten Resolutions to see how we might consolidate them to make them more achievable.
The first one, “Spend More Time with Friends and Family,” seems reasonable enough, so I think we should try to keep it.
The second and third resolutions, “Improve Your Fitness” and “Lose Weight” both make sense as well. However, they seem somewhat similar. If you “Improve Your Fitness,” you’re probably going to “Lose Weight,” so let’s just combined them into “Improve Your Fitness.” Already, we’re making progress!
Numbers 4 and 6 also seem to be a bit similar: “Quit Smoking” and “Quit Drinking.” If these two make your Top Ten Resolutions, you’re probably not very “fit” either. If we just merge these into “Improve Your Fitness,” we’ve already eliminated three resolutions.
The seventh resolution, “Get Out of Debt,” seems apropos for the times. We may not even need to take this one off the list if we can get Congress to agree to include us in the bailout. But wait a minute! The next one is “Learn Something New.” You know, if we learned not to spend more than we can afford, we wouldn’t need to “Get Out of Debt” because we wouldn’t BE in debt. Great! Let’s just go with “Learn Something New,” and now were down to six.
Numbers 9 and 10 have some synergy as well. If we “Get Organized,” we’ll have more time to “Help Others.” Since resolving to “Help Others” seems to have the greater potential between the two, let’s just stay with “Help Others” and assume we’ll “Get Organized” to do it.
That leaves us with five resolutions, which is certainly more “doable” than ten. We’ve got:
1. “Spend More Time with Friends and Family”
2. “Improve Your Fitness”
3. “Learn Something New”
4. “Help Others” … and one we haven’t talked about …
5. “Enjoy Life More.”
Now, that’s what I call progress!
What else can we do?
Well, it seems to me that if you “Spend More Time with Friends and Family,” you’re undoubtedly going to have more opportunities to “Help Others.” Similarly, if you “Improve Your Fitness,” you can live longer … and if you live longer, you’ve got more time to “Learn Something New.” But, hey … you’ve also got more time to “Spend with Friends and Family” and to “Help Others.” So, maybe “being fit” is the real key. That leaves with just two!
I guess it’s time to look at the last one: “Enjoy Life More.” That one seems a bit nebulous to me. What does it mean? Well, for one, we’d probably “Enjoy Life More” if we spent more time with our friends and families. I guess the same would be true if we improved our fitness, lost some weight, quit smoking (if we smoked in the first place), and quit drinking (if drinking was threatening our health or the health of others). Come to think of it, we’d probably “Enjoy Life More” if we weren’t in debt and were able to learn something new. The same could be said if we found a way to consistently help others and to organize our own lives in a way that would relieve some of our stress.
So there you have it. You really don’t have to try to stick with ten resolutions, when you only have to concentrate on one. So, as we enter into the New Year, I offer this sage advice: commit to only one resolution.
“Enjoy Life More!
2009 (c) Dr. Terry O'Hara. All Rights Reserved.
Wednesday, December 31, 2008
Happy New Year!
At this time of year, it is customary to wish others good health, wealth and happiness, and as such, I wish all three to you. However, while we can influence our health and wealth, we cannot necessarily control those elements of our lives. Yet, we are blessed with the opportunity to completely control the third element of this traditional wish … our happiness … because happiness is a matter of choice.
I choose to be happy in 2009 … each and every day … and under any circumstance … and I hope you will join with me in doing the same. If you make only one resolution in your life that you actually keep, may it be that you choose to be happy and make the most of the opportunities that life presents you.
Happy New Year!
2008 (c) Dr. Terry O'Hara. All Rights Reserved.
I choose to be happy in 2009 … each and every day … and under any circumstance … and I hope you will join with me in doing the same. If you make only one resolution in your life that you actually keep, may it be that you choose to be happy and make the most of the opportunities that life presents you.
Happy New Year!
2008 (c) Dr. Terry O'Hara. All Rights Reserved.
Wednesday, December 3, 2008
Would you like to say “thank you” to our troops?
Through the generosity of Xerox, we have the opportunity to extend our “thanks” to our troops this holiday season.
If you go to www.LetsSayThanks.com you can pick out a “thank you” card that Xerox will print and send to a soldier who is currently serving in Iraq. You can't pick out who gets it, but it will go to a member of our armed services overseas.
The cards were designed by children (ages 3-15) throughout the United States, and there are even standard messages from which you can choose. It takes less than a minute to acknowledge your appreciation for the sacrifices so many are making on our behalf.
How AMAZING it would be if we could get everyone we know to send one!!! Please send a card. It is FREE, and it only takes a second.
If you go to www.LetsSayThanks.com you can pick out a “thank you” card that Xerox will print and send to a soldier who is currently serving in Iraq. You can't pick out who gets it, but it will go to a member of our armed services overseas.
The cards were designed by children (ages 3-15) throughout the United States, and there are even standard messages from which you can choose. It takes less than a minute to acknowledge your appreciation for the sacrifices so many are making on our behalf.
How AMAZING it would be if we could get everyone we know to send one!!! Please send a card. It is FREE, and it only takes a second.
Monday, December 1, 2008
Business Focus: Shareholder Value versus Employee Satisfaction
I was recently challenged with the following question, “Do you believe that shareholder value is coming to and end?” To which I answered:
Properly viewed, shareholder value is a measurement of performance rather than a driver of performance. Regrettably, we are suffering from a business environment that has been conditioned to believe otherwise. One of the books I am writing deals with this phenomenon.
Most companies are run by managers; only a few are run by leaders. Yet, there is a significant difference between the two. Managers push employees to achieve corporate objectives. Hence, we live in a world of quotas, budget cuts and “street expectations” … all based upon the fictional estimates of what a handful of generally under-informed individuals believe might happen (or needs to happen for them to maximize their incomes).
Conversely, leaders recognize that the true drivers of value are the people who actually do the work. They take the time to learn what’s important to their employees whose personal goals, if achieved, almost certainly will exceed the wildest expectations of the corporation. Then, they create and maintain an environment that is focused upon helping those employees achieve their goals.
Making a concerted effort to help employees achieve their goals within the context of their values can have an astonishing impact. It parallels what we used to see in the former Soviet Union, where farmers would be given 200 acres to farm for the State and one acre to farm for their personal consumption. Their one personal acre would routinely out produce the other 200 acres. Ah, the free market at work.
Leaders inspire while managers tend to threaten. Under which environment do you think your performance would thrive? Since “change” seems to be the contemporary word of the day, managers need to learn to become leaders. They need to “change” their focus to what is truly important: the employee.
Shareholders lend money; essentially placing a bet on the performance of the companies in which they invest. Their investments represent one of the two forms of capital financing (i.e., equity versus debt), which together should be used to finance the capital expansion of the organization rather than to fund operations.
Interestingly enough, shareholders are often advised to make their investments on a long-term basis, but senior executives often make business decisions that are designed to inflate short-term performance; thus jeopardizing long-term returns. This is because executive compensation has been so closely tied to short-term shareholder value (due to stock option bonuses, etc.) that attention is diverted away from strategic decisions that would have a greater return over a longer period of time. Another fear of senior executives is that if they fail to satiate short-term expectations, they may not be around to reap the rewards of executing superior long-term plans.
It reminds me of Peter Drucker’s observation that “Management is doing things right. Leadership is doing the right things.” Until leadership is established as a priority, our economy will continue to suffer. We will have executives announcing the layoff of 53,000 employees and petitioning for a $300 billion government bailout who then turn around and spend $400 million to have their company’s name emblazoned on a baseball stadium. We will have manufacturers announcing layoffs and plant closings while petitioning for a second infusion of $26 billion in subsidizations (with no strings attached) that then sponsor two professional golf tournaments over the ensuing weeks. Other companies cut services and jobs and cancel raises except for those that are required under contract (i.e., read as “except for top executives”), so that they can remain Wall Street “darlings” in the short-term while sacrificing morale and employee loyalty and commitment in the long-term.
When leaders once again rise to the top and “do the right things,” employees will become the predominant focus, and economic order will be restored.
In closing, I offer O’Hara’s Theory of the Little Big Horn, which I have shared somewhat tongue-in-cheek over the years during some of my public appearances. During the Battle of the Little Big Horn, if 2,000 chiefs had surrounded the rim of the canyon and only a handful of braves had ridden down the hill, Custer’s 7th Cavalry would have easily defeated them. Custer’s problem was that only a handful of chiefs sat up on the ridge while 2,000 braves charged down the hill to attack him and his troops. The morale of the story is, “Make sure you have enough braves to fight your wars.” Well, that’s my theory, and I’m sticking to it. I think investors are best served by companies that provide the outstanding products and service their customers need and deserve, and that to do so requires a loyal and completely satisfied workforce that is totally committed to the core vision, mission and values of their company.
What do you think?
2008 (c) Dr. Terry O'Hara. All Rights Reserved.
Properly viewed, shareholder value is a measurement of performance rather than a driver of performance. Regrettably, we are suffering from a business environment that has been conditioned to believe otherwise. One of the books I am writing deals with this phenomenon.
Most companies are run by managers; only a few are run by leaders. Yet, there is a significant difference between the two. Managers push employees to achieve corporate objectives. Hence, we live in a world of quotas, budget cuts and “street expectations” … all based upon the fictional estimates of what a handful of generally under-informed individuals believe might happen (or needs to happen for them to maximize their incomes).
Conversely, leaders recognize that the true drivers of value are the people who actually do the work. They take the time to learn what’s important to their employees whose personal goals, if achieved, almost certainly will exceed the wildest expectations of the corporation. Then, they create and maintain an environment that is focused upon helping those employees achieve their goals.
Making a concerted effort to help employees achieve their goals within the context of their values can have an astonishing impact. It parallels what we used to see in the former Soviet Union, where farmers would be given 200 acres to farm for the State and one acre to farm for their personal consumption. Their one personal acre would routinely out produce the other 200 acres. Ah, the free market at work.
Leaders inspire while managers tend to threaten. Under which environment do you think your performance would thrive? Since “change” seems to be the contemporary word of the day, managers need to learn to become leaders. They need to “change” their focus to what is truly important: the employee.
Shareholders lend money; essentially placing a bet on the performance of the companies in which they invest. Their investments represent one of the two forms of capital financing (i.e., equity versus debt), which together should be used to finance the capital expansion of the organization rather than to fund operations.
Interestingly enough, shareholders are often advised to make their investments on a long-term basis, but senior executives often make business decisions that are designed to inflate short-term performance; thus jeopardizing long-term returns. This is because executive compensation has been so closely tied to short-term shareholder value (due to stock option bonuses, etc.) that attention is diverted away from strategic decisions that would have a greater return over a longer period of time. Another fear of senior executives is that if they fail to satiate short-term expectations, they may not be around to reap the rewards of executing superior long-term plans.
It reminds me of Peter Drucker’s observation that “Management is doing things right. Leadership is doing the right things.” Until leadership is established as a priority, our economy will continue to suffer. We will have executives announcing the layoff of 53,000 employees and petitioning for a $300 billion government bailout who then turn around and spend $400 million to have their company’s name emblazoned on a baseball stadium. We will have manufacturers announcing layoffs and plant closings while petitioning for a second infusion of $26 billion in subsidizations (with no strings attached) that then sponsor two professional golf tournaments over the ensuing weeks. Other companies cut services and jobs and cancel raises except for those that are required under contract (i.e., read as “except for top executives”), so that they can remain Wall Street “darlings” in the short-term while sacrificing morale and employee loyalty and commitment in the long-term.
When leaders once again rise to the top and “do the right things,” employees will become the predominant focus, and economic order will be restored.
In closing, I offer O’Hara’s Theory of the Little Big Horn, which I have shared somewhat tongue-in-cheek over the years during some of my public appearances. During the Battle of the Little Big Horn, if 2,000 chiefs had surrounded the rim of the canyon and only a handful of braves had ridden down the hill, Custer’s 7th Cavalry would have easily defeated them. Custer’s problem was that only a handful of chiefs sat up on the ridge while 2,000 braves charged down the hill to attack him and his troops. The morale of the story is, “Make sure you have enough braves to fight your wars.” Well, that’s my theory, and I’m sticking to it. I think investors are best served by companies that provide the outstanding products and service their customers need and deserve, and that to do so requires a loyal and completely satisfied workforce that is totally committed to the core vision, mission and values of their company.
What do you think?
2008 (c) Dr. Terry O'Hara. All Rights Reserved.
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