This weekend I had the opportunity to speak at a conference for major donors of a charitable organization. It was a beautiful setting in Southern California, and my wife accompanied me, which was a treat.

The other keynote presenter was Carlos Sepulveda, who is the CEO of Interstate Batteries, and a dynamic presenter. In addition to his presentation, Mr. Sepulveda had a follow-up question and answer session in which he expanded upon the concepts he shared. I thought I would share some of his thoughts which were thought provoking to me:

• “There is no such thing as business ethics.” He did not mean this in terms of an oxymoron. Rather, Mr. Sepulveda’s point was that there really is no division between public and private behavior – choices and decisions are made by individuals, whether or not the context is in the home, community or workplace. As Carlos stated directly, “Truth cannot be compartmentalized.” Unfortunately, we have seen this issue (behavior and choices matter, regardless of the context) impact our lives and news repeatedly (Enron, sexual misconduct by business and government leaders, business policies driven by greed).
• “Successful people absorb in early in life what reality is, and they spend the rest of their lives making and managing decisions made in reality.” Mr. Sepulveda shared some about his early life’s history, which was rocky, and the resulting lessons he learned. He affirmed straightforwardly, “You will never be any more successful than your understanding of reality” and that this is true in one’s personal life as well as in business.
• Regarding businesses delivering value, he stated that “competence delivers value.” He stated that the way to increase competence is through a combination of “ability + technique + effort”. He reported that our culture is always trying to “get around” work, but that ultimately work is good, brings value to our lives, and the means by which goals are reached.
• The definition of the role of a CEO, according to Mr. Sepulveda, is encapsulated in the initials “CEO”. The primary responsibilities of a CEO are to: 1. Organize (goals and resources); 2. Encourage others – to always be coaching those around you; and 3. Confront – to confront actions, beliefs and policies that don’t match reality, and to confront the gap between promised results and what is actually delivered. In a follow-up discussion, he indicated he tries to accept bad news well (that is, not “blow up”) but he asks the question: “How did it happen?”
• There are two primary activities that make up life – resource allocation (time, our “brain”, talents, financial resources) and conflict resolution. We are constantly making choices about how to use our time, talents, money, etc. and this is the daily activities of our lives. But because we live in relationship with others, and we all have our unique perspectives, values and priorities, this leads to conflicts over how resources should be allocated. And so the second most frequent activity we engaged in is managing these conflicts over the use of our resources.

I found Mr. Sepulveda an extremely engaging speaker, a thoughtful leader, and one who clearly caused me to repeatedly ask myself: “Really?” “Is that true?” He brings a unique perspective to leadership and daily life. If you ever have the chance to hear him speak, I would encourage you to choose to do so.

Business Success, Conflict, Conflict resolution, Executive performance, Leadership, Management, work

Most “gifts” in our culture are tangible presents — either something we buy, or sometimes make, for another.  So when we think of Christmas gifts, or presents for other events like birthdays and anniversaries, we think of “things”.  However, given that most people are hard to buy presents for because they “already have everything”, truly meaningful gifts are often taking on a different characteristic.

This past week I had a birthday and I had a wonderful day.  I started by sleeping in a little, and then went for a run on a cool, fall morning.  I went to work for the morning, and then had a nice lunch with some friends and one of my sons.  After completing my work in the afternoon, I met up with my family (all except my son who is at college in Texas) and they gave me my birthday gift.

The gift I asked for was not one they (or I could purchase) and not the typical gift you unwrap.  They gave me the gift of taking time out to (willingly) do an activity with me that I enjoy — and wanted to do together with them. In some ways the activity itself is not that important.  In fact, it might be good to think about those things that you would enjoy taking time to do on your birthday (or at Christmas), and an activity that you would really enjoy sharing with your family.  The key to this gift (for me) was that it is an activity I enjoy, but none of my family really does.  In fact, over the years, I have included them (sometimes by coercion) — asking them to go with me, and they generally haven’t enjoyed the experience.  In fact, over the years, it became clear that they really didn’t like the activity and would only go out of guilt, pressure, or not at all.

The fact that they chose to go with me truly was a gift because it was a sacrifice for them to participate.  What made it even more special and fun for me was that we actually had a good time together (I had fun because they did).

So after we were done fishing together for two hours, we went home and enjoyed a home-cooked steak, salad and baked potato dinner — along with the traditional birthday cake.

And then the fun continued — we hung out together and played a board game together, laughing at each other until we were ready to call it a night (at least, for Kathy and I).  Not the typical Friday night that teens and young adults sit around wishing for.  But I enjoyed the time with them, and I appreciate the gift of time and fun they gave me.

So for those of us that have a difficult time thinking of “what to get” friends or family members for a gift, I would encourage you to consider giving them the gift of time — especially inviting or planning to do something with them that they really enjoy doing but maybe don’t get to do as often as they like — or that you usually don’t do with them.  It is the kind of gift that money can’t buy.

Friends, although the text on my most recent blog entry appears on my blog site, the version that was sent out to subscribers was blank.  Not sure how (or why) that happened. Sorry.

So, rather than go through the same action again, I think the easiest solution is for you to click here and it will send you directly to the entry, entitled “Principles for Leading Effectively in Times of Financial Turmoil”.   Sorry for the hassle.

This past week the business editor of my local newspaper called and asked me to write a column for business leaders regarding the current financial turmoil.  The following is the article I wrote, and which can also be viewed at the newspaper’s website.

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Few current business leaders have had to navigate the turbulent waters of economic difficulties that we find ourselves in today. But we can learn from those who have studied accomplished leaders and identified characteristics of successful companies that have weathered difficult times.

Richard Peterson, who researches the neurological responses associated with financial decisions, says there is a difference between fear and panic. Fear is largely anticipatory — assessing potential risks. Panic is characterized by an urgent pressure to act immediately. In fact, Peterson clearly reports: “It takes tremendous effort and fortitude to ‘keep one’s cool’ when frightened.” Panic then can lead to poor decision-making.

Jim Collins, in his classic study “Good to Great,” proposes that one key characteristic of leaders of successful companies is the ability to confront the brutal facts yet never lose faith. He states, “You must maintain unwavering faith that you can and will prevail in the end, regardless of the difficulties, and at the same time have the discipline to confront the most brutal facts of your current reality, whatever they might be.”

In his best-selling book, “The 7 Habits of Highly Effective People,” Stephen Covey identifies being proactive as the first core principle for successful individuals and business leaders. In difficult circumstances, he encourages leaders to ask: “What is our response? What are we going to do? How can we exercise initiative in this situation?”

Daniel Goleman, one of the foremost researchers of emotional intelligence, proposes that optimism is a core characteristic of successful leaders. Effective leaders “persist in seeking goals despite obstacles and setbacks,” and they “operate from hope of success rather than fear of failure.”

So how do effective leaders respond in times of uncertainty and fear?

• Assess the potential risks.  The critical factor is to try to accurately assess the reality of the risks. It is crucial to differentiate between facts (what do we really know) versus conjecture (what might happen). What are the risks posed to your organization? To the best of your ability, determine how reality-based the risks are.

Consider constructing an “if-then” decision-making tree regarding the risks you see. Arrange the options from “best case scenario” to “worst case scenario” (the likelihood of both extremes is usually small), with the scope of possible outcomes in between. Then try to identify the results that have a higher probability of occurring and what impact they could have on your organization.

• Determine strategies and actions that can manage the risks.   Individuals who focus on fear tend to stop at risk assessment. Leaders who are proactive seek to actively manage the situation and move to determining what steps can be taken to minimize the risk. “What can be done to minimize the probability of ‘x’ happening?” “If ‘x’ does happen, what can we do now to limit its negative impact on our company?”

• Look for potential opportunities.  In addition to assessing potential risks to the organization, successful leaders also scour the marketplace for potential opportunities to capture. Your key competitors may have difficulties because of cash flow issues or not be able to access credit needed to finish projects. There may be assets (property, machinery, inventory) that can be purchased at a steep discount for cash.

• Communicate proactively.  Lack of information increases anxiety. So take initiative to talk with your leadership team; let them know your thoughts and listen to their concerns. Communicate with your customers and your vendors; find out how current circumstances may affect them.

• Model courage and optimism.  A “we will figure this out” attitude is contagious. These are difficult times. But the opportunity exists to step up to the challenges we face by demonstrating courage and resiliency.