Email Etiquette Lessons from the Cleveland Browns’ Phil Savage - Dropping the F-Bomb is So Not Cool

 

Phil Savage, Cleveland Browns GM, Responds too Quickly

While email etiquette in business has long been an important topic to the editors of AskTheManager.com, we’ve never pontificated on the importance of responding expeditiously. We’ve posted articles and opinions about email typos, email signatures, and we even ranked the worst email etiquette mistakes of all time in a two-part series. Had we weighed in on email response speed, we would have said speed is good.

That was until we read about Phil Savage. In Savage’s case, speed kills.

As first reported by the website deadspin.com, Cleveland Browns GM Phil Savage responded quickly Monday night to an idiot fan’s relentless and constant email criticism with the not-so-friendly reply “go root for Buffalo, f*ck you.” (Editor’s note: Phil used a vowel in place of the asterisk.)

You don’t have to be a seasoned leader to know that his response easily tops our list of the worst email etiquette mistakes ever. It’s hard to beat the F-bomb when it comes to what you shouldn’t say in a business email.




The Email Etiquette “24-Hour Rule”

Firing off an angry memo or cursing someone out over the phone ten or more years ago was not a big deal – in the Internet Age, angry responses will haunt you forever. Just as we learned from Alec Baldwin’s “thoughtless little pig” rant that you shouldn’t leave nasty voicemails, we now know from Phil Savage that you shouldn’t write “f*ck you” in an email.

(Seriously, didn’t we already know that?)

Before the onset of the World Wide Web, it was common practice for enlightened leaders to withhold a response when they were irritated. In a proper display of etiquette, they practiced the 24-Hour Rule – that is, they would wait twenty-four hours before sending a nasty note or letter. The prevailing wisdom assumed (correctly) that whatever made them angry today would seem less important in twenty-four hours.

It’s been almost 72 hours since Savage’s savage reply to the thoughtless-little-pig-of-a-fan, and we’re pretty sure it all seems less important now. 

 

Filed in Business Situations, Leadership News and Views, Lessons from Pro Sports No Responses yet

CriminalSearches.com - Great Free Site Offering Instant Criminal Background Checks and Much, Much More

Great Recruiting and Hiring Tool – and it’s Free!

It’s not often we are swayed by someone’s idea of the latest, coolest website on the Internet, but we discovered a website recently that absolutely could cut time and dollars off the way managers and companies recruit and hire new employees today.

Typically, companies must spend between $25 and $500 to have third parties run criminal background checks on their potential new hires. The process is time consuming and doesn’t always fit with many managers’ go-go-go style of hiring. Because of the cost and the delay, most small companies forgo this important step.

A website still in beta, CriminalSearches.com, solves this issue and many, many more. Best of all, the site is free (at least for now). On CriminalSearches.com you can enter anyone’s name (even just a last name) and retrieve their criminal records – including arrests and (in some states) traffic violations. The results appear in milliseconds, and can save you and your staff hours of work and hundreds or even thousands of dollars annually in third party fees.

Besides being a great tool for hiring managers and the HR types, the site is actually a lot fun. We spent the afternoon entering the names of our high school and college classmates only to discover four felons, ten DUIs and one indecent exposure of a demure cheerleader (I guess you never really know about people).

To visit the CriminalSearches.com homepage and make a quick search, follow this link.

Beware of Geeks Baring Gifts?




While goofing around with this great website, I couldn’t help but hear my father’s words “there’s no such thing as a free lunch.”

“Dad,” I thought, “in this case, you’re wrong.” Don’t be afraid of using CriminalSearches.com just because it’s free; there really are no strings attached (yet), and it is a truly useful tool for managers and businesses of all sizes in the US.

From a personal perspective, the site is not only fun when you grab your yearbook and seek out the criminals from your graduating class, it’s also helpful for identifying criminals who might reside in your neighborhood.

Using the site’s “Neighborhood Watch” section you will quickly discover all of your neighbors’ level of past criminal activity. Unlike many government sites that merely list sex offenders in your area, this site will show, by address, who has been accused of what crime down to some very petty offenses.

Especially important, we thought, for parents who don’t like their kids playing at homes where the father has four drug convictions (not really the role model we’re looking for, if you know what we mean).

Filed in Management Resource Lists, Recommended Products No Responses yet

Sales Training 101 - Reciprocity is Childsplay

 

Reciprocity – Sales Training 101

From a very early age, we all learn about reciprocation. That is, when someone does something nice for us, we tend to do something nice for them. As humans, most of us don’t want to be indebted to someone else – especially someone we barely know.

In sales, we often forget the power of the lessons we learned when we were five; and we fail to use these simple techniques and other great manipulative gestures to get our way with a client.

As bad as that last sentence sounded, this really is what commissioned sales is all about. If you cannot manipulate someone to buy what you’re selling, then why do we need you to sell for us? We would be better off firing our sales team and putting everything we offer on a table and letting the customer choose what is best for them. Of course, companies whose products require salespeople would be out of business in a week if they chose this path.

If you can get past the whole “manipulative gestures” of sales, then you might just have a career as a sales manager – and you can begin teaching your sales team some basic lessons on gaining a “yes.”

Tit for Tat – How a Coke Will Make All the Difference

One way to use reciprocity to your advantage (if you’re an inside salesperson) is to offer (with no strings attached) every prospect who walks into your store a can of ice cold soda or bottle of water.

This little gesture is so manipulative that it should be outlawed. When you give someone a true freebie, they cannot help but be open to your pitch – they owe you.

Studies have shown that the simple act of unilaterally offering something for nothing can increase sales by 25-50%. Wow! We spend hours on sales training to gain a 5% incremental advantage; it’s hard to imagine that a bottle of Dasani or can of Coke can do so much more.

It can, and it does. The bottle of water accompanied by a sincere “it’s a hot day, thought you might enjoy this” or “you looked thirsty, hope this helps” will go a long way to improving your closing percentage.

If you’re an outside salesperson, it might be necessary for you to learn something about your prospect and then show up with something cheap that you’re sure they’ll value. If they have kids, bring a few pieces of company-logoed chachki that appeal to children, for example.




Think Small and be Careful to Keep the Strings Unattached

Earlier this year, one of my company’s vendors took a colleague and me to the Super Bowl in the Phoenix area. It was a great game; and it came with an all-expenses paid trip that probably cost the vendor $5,000-$7,000 per person.

I enjoyed the game, and I appreciated being asked. I did not, however, increase my company’s use of their product. In fact, less than seven months later, I was actually advocating to others that we needed to reduce our spending with this vendor.

Why did this once-in-a-lifetime trip not sway me to become this vendor’s advocate? Why do they now feel they wasted their money on me and my colleague? Is there anything they could have done to get more value from this gift?

Forget for a moment that one of their salespeople once used the line “yeah, but we took you to the Super Bowl” to gain more business from me – big mistake – primarily there were two reasons their gift failed to drive the desire results.

Allowing myself to enjoy such a huge gift was difficult. I felt guilty and was worried there would be strings attached to such a great trip. My conscience bothered me, and a trip this big caused me to reexamine the vendor relationship to be absolutely certain there was no indication of impropriety on my part.

In effect, I began to “over-police” myself. When in doubt, I selected the choice against this vendor for fear that a decision in their favor would seem tied to their gift. The exact opposite effect they sought with the Super Bowl trip.

Secondly, the trip was nice, but it wasn’t very personal. We received free airfare, a free hotel stay, and free tickets to the game and other events. A packaged deal that cost thousands, to be sure.

Personalize the Manipulation

Where this vendor went wrong with both my colleague and me was that they didn’t bother to personalize anything about the trip. Everything they provided us was part of some package they had purchased. It was money and it was things; it was devoid of thought and showed no personal sacrifice or commitment on their part (save for the money they spent).

Had they spent an additional $50 per person and given us a commemorative Super Bowl football, for example, they would probably have us more in their debt; and we would have something to remember the gesture.

Additionally, both my colleague and I have children. Providing us with something we could take home to our kids (we’re talking about less than $100 here) would have made the weekend away from our families more worthwhile. As it is, I have a great memory of a great game and little else.

What Should You Do as a Sales Manager?

If you plan to add a little “manipulation by giving” to your sales team’s routine, it’s important to remember a few simple rules.

  • Rule number one is to keep it simple. Never try to “over think” your prospect or the role your company plays.
  • Rule number two is to consider the recipient. What drives them, and what would make them think you really care?
  • Rule number three is to make sure the gestures are personal and come with no strings attached. That is, walk away after you give the prospect the bottle of water. Let them know you’re here for them if they need you, but that you intend to let them browse on their own – and mean it.

Making a Sale Today is Tough

No one can disagree that we live in scary times. Whether you sell cars, furniture or cell phones, your walk-in traffic and your sales are down. In this economy, it is imperative for sales managers to find that little “something” that can separate them from the competition.

Open your mind, and realize it may very well be a can of Pepsi.

 

Filed in Management Training, Sales Management No Responses yet

Donovan McNabb is no Albert Einstein… or is He?

 

Leadership Lessons from Donovan McNabb

After five quarters of football on Sunday, November 16, 2008, the Philadelphia Eagles and the Cincinnati Bengals played to a 13-13 tie. This tie was the first the NFL had seen in six years – ties, it seems, are rare in the NFL.

After the game, Eagles quarterback Donovan McNabb was quoted as saying that he wasn’t aware that ties could occur in the NFL. He assumed, incorrectly, that the teams would continue to play until someone scored.

Since making these statements, McNabb has unfairly become the poster child for dumb jocks all across America. From where we stand there are only four people on Donovan’s side: Radio hosts Mike Golic, Mike Greenberg, and Colin Cowherd; and Steelers’ QB Ben Roethlisberger. Fans, especially in Philly, are loudly claiming that McNabb is either the worst quarterback in the NFL or an idiot, or both.

We argue that Donovan McNabb is neither. In fact, by not understanding this seemingly simple rule, we argue that McNabb could be one of the best leaders in the NFL today.


Leaders Don’t Sweat the Small Stuff

NFL quarterbacks are required to remember scores of plays, receiver patterns, defensive schemes, and blocking patterns. We find it easy to forgive Donovan for  being a little unclear on the nits and nats of the NFL rulebook. In our opinion, that’s the coaches’ job.

True leaders, guys like Lincoln, Reagan, Iacocca and Buffet, don’t get involved in every detail of the business. They understand that they are only one person and that the collective intelligence of their leadership team will help them make the right decisions.

McNabb is no Einstein

While probably the greatest athlete-quarterback of the last ten years, McNabb will never be confused with the study-crazy QBs of this generation: Peyton Manning and Tom Brady. He is no Albert Einstein, for sure.

Interestingly, Albert Einstein and Donovan McNabb are more similar than you might think. Analogous to McNabb’s current situation, it seems that a colleague once asked Einstein for his phone number. Albert Einstein surprised this person by picking up the nearest phone book and reciting the number from the White Pages.

Einstein, you see, refused to fill his head with information that was easily obtainable from other sources. Genius, we might exclaim. Why don’t we exclaim the same about McNabb? It seems odd to us that any quarterback would fill his head with the rules about tie games in the NFL when they happen so seldom.

They have so much more to think about.

 

Filed in Digression, Lessons from Pro Sports No Responses yet

Sales Management Blogwatch - November 19, 2008

 

The Best of the Sales Management Blogs

A colleague asked me this week about my first commissioned sales job – he, too, started in sales and worked his way up to management. After a few minutes of friendly banter about old school sales managers and the like, we went back to our regular grind.

Reflecting back on my first sales job, I was reminded of the 2’ by 30’ banner that hung over the sales desks. It was my first day, and as I walked into the salesroom I was greeted by grumpy faces of weathered salesmen and that gigantic banner. The banner read “Nothing Happens Until Somebody Sells Something.”

I thought this saying was a little hacky back in the 1980s, and I think it’s a lot hacky today; but it did get me thinking about the current economic situation. With Citibank laying off more than 50,000, Circuit City and other retailers declaring bankruptcy, and about 2 million auto industry-related jobs in jeopardy – it begs the question: Could some of these companies have sold their way out of their problems?

I don’t have a good answer to this, but my gut tells me that great sales leadership could have made a difference. It always does.

Back to the Blogs

Are you struggling to provide great sales leadership for your team? Perhaps some of these “Best of the Best” blog posts and articles hold the key – there are some great entries this time, including some that focus on selling in the down economy. Enjoy!

Sales Management: Differentiating Your Business during This Recession
What you feel is your differentiator and what you believe you customers want and/or should want is not necessarily true - especially during a business slow down. This article will give you some insights on how to separate your company

Monday Morning Manager-Common Sense Rule # 1
You’ve been waiting a while for this opportunity and it has finally fallen in your lap-sales management. You’ve been with Widget International for 5 years. You have grown your territory every year and you are one of the leaders in the

What Does Your Client Touch Program Say About You?
For instance, I work obviously in the areas of sales and sales management. Most salespeople and managers know there are a great variety of training methods and theories. Controversy and going against convention isn’t an issue in this

Maximizing Your Price–The Value/Benefit Equation
Price increases are currently occurring at a faster rate than we’ve seen in the US economy for nearly 25 years. The driving forces behind these increases seem to be

Sales Management: Avoid Motivational Bankruptcy, 6 Tips for …
The president of an office supply company was recently lamenting that his sales people were not operating to their potential. “Motivationally bankrupt,” he said. This is a very common complaint in any area of business. …




When Should You Walk Away From a Deal?   Now! The second that question begins to form in your head you should be prepared to walk away now. That is not to say that you shouldn’t perform a thorough evaluation of options, examine how the deal can be altered or

Doggin’ It
Not by design, but this week a number of the discussions I had with prospects/clients had to do with front-line sales managers. This is a good thing since for a long time I have been a firm believer that the biggest bang for the buck in

Guest Article: “Managers Continue to Teach Their People How to …
Managers Continue to Teach Their People How To Avoid Full Accountability By Keith Rosen. “What is that guy doing now?” It was just an odd maneuver. Something out of the ordinary from what would have typically been an everyday experience …

Sales Management Corner: Common Sense Rule #2
Last week I mentioned that a new sales manager shouldn’t start at this position by making changes. After assuming the role, a manager should have the salespeople assessed. Too many managers want to change their salespeople without …

Sales Coaching Without a Playbook
Sales management has a significant impact on critical sales performance metrics, including turnover rates, sales cycle length, and quota attainment. Recent research by CSO insights indicates that just the ability to proactively identify …

Sales Management in a Down Economy
Our next three posts will focus on Sales Management in a Down Economy. Here’s the first of three things you absolutely must do as sales manager if you want your sales team to continue to thrive and succeed - no matter what the headlines …

Are You a Sales Professional or Semi-skilled Laborer?
We in sales work in what we like to claim is one of the highest paid professions, yet statistics indicate we are, in fact, employed in one of the lowest paying professions. In fact, we are engaged in a business that is unevenly divided …

CanDoGo is Now a Free Site–Get Great Sales Tips from more than 60 …
I have great news to share with you. I am one of the exclusive authors/speakers/trainers/coaches for a company called CanDoGo that delivers concise advice for sales, personal development, leadership and motivation over the Web. …

Avoiding the Price Question Early in the Sale
The price of your goods and services is always a primary concern to your prospects. Whether you like it or not, price is top of mind with the majority, if not all, of your prospects; and you probably find the question of price comes up …

3 Strategies to Help You Meet Revenue Goals Even in a Down Economy
Ludwig says the sales management team, with the involvement of their salespeople, must evaluate each individual’s sales funnel to determine which opportunities he or she should pursue. Come up with a short list by looking at factors …

 

Filed in Management Resource Lists, Sales Management No Responses yet

The Leader’s Gift-Giving Guide - Holiday Gifts Everyone Can Use

 

Holiday Gifts for the Office Crowd

‘tis the season to think about all the people who helped you get where you are today. Whether you are a senior leader or an up-and-coming manager, it’s important for you to thank those who make an impact in your work life. And by “thank,” I mean give them something of value.

It’s amazing what the phrases “thank you” and “I appreciate what you do” can mean to your administrative assistant throughout the average workday. Over the years, the AskTheManager editors have come to realize that our fathers’ were right: you can attract more flies with honey than you can with vinegar. And by “sugar,” they meant something of value.

Interestingly, I personally cringe when I receive a gift from anyone at work. I’m not sure why, but I just don’t like getting “boss” gifts from subordinates or anything from a peer. Of course, I am always very, very outwardly appreciative. Additionally, most gifts I’ve ever received from my supervisors were just pure crap (save for the travel alarm my boss gave me last year; I’ve used it at least twice a week since then). 

While I do enjoy the occasional gift from vendors and suppliers, I mostly receive thoughtless baskets of fruit and snacks that I put in the break room for the huddled masses to enjoy. This seems to kill two birds with one stone: as I can both receive and give with the same gift. (Careful, I’m not talking about re-gifting.)

What to get that Special Administrative Assistant?

The best gift a leader can give their admin is the daily affirmation that they really and truly “rock.” Telling them that they are “awesome,” that you “appreciate their commitment,” and that “you could not function without them” are the keys to keeping most assistants happy and healthy. If you do this daily, you are truly an enlightened leader and ahead of nearly all others.

Of course, come this time of year, your hyper-performing admin is expecting something really great. Disappoint them and you could be forced to live with a passive-aggressive psychopath for the next 365 days.

Here are our suggestions for great gifts for your administrative assistant:

  • Gift Cards – you can never, ever go wrong with the right gift card. If your admin is living at or below the poverty line, however, be careful to avoid the completely unusable $25 Morton’s Steakhouse gift card. Instead, opt for something in the $200 range from Target or Amazon.com.
  • Wine or Liquor – if you’re certain they can appreciate great wine or liquor, then you’re probably okay going in this direction. If not, avoid buying the 2002 Opus One for someone who enjoys Riunite on Ice (that’s nice). If you know they love wine, but they may not be a true connoisseur, perhaps you want to give them the best wine opener ever invented. In this case, WaffleMouse.com has some great reviews. To see these, follow this link.



  • Gag gifts – What are you, thirteen? The last thing your hardworking admin wants or needs is some piece of crap gag gift. They won’t “get it,” okay? Even if they do, they won’t appreciate receiving some bobbing head ostrich-thingy that appears to go on forever. Avoid, at all costs, any urge to go for the exotic or gag gift for your direct reports.
  • Crystal Vase – Household accessories, especially a crystal vase or similar display piece could be something your admin will not only treasure, but also remember – provided you give some measure of thought to the gift. For a quick view of more than 5,000 administrative assistant-appropriate vases you can buy from the comfort of your executive chair, check out the selection on Amazon.com.
  • Over the Top – Amazingly we are willing to spend thousands on a single business trip that yields nothing and just $50 a year on the person who may mean the most to our success, our administrative assistant. Why not go crazy in 2008 and drop $1,000 on a big screen HDTV or Movado Watch.

What Should You Get Your Boss?

In short, nothing. While it’s true that the right gift could earn you brownie points, the wrong gift can indelibly brand you as a sycophant. If you’re sure your boss loves “something,” then it might make sense to find the right gift. Here are some suggestions:

  • Is Your Boss a Wine Lover? – If so, a case of 2004 Silver Oak is the bomb. Don’t have $900 to drop on the guy? The Vertical Rabbit corkscrew from Metrokane might be just as well-received (and it will last longer).
  • Sports Fan? – If your boss follows a specific sports team or grew up watching a specific player, the right collectible could put you in their thoughts on a daily basis. An autographed card, ball or other memento – especially if it doesn’t appear contrived – might be just the ticket. To see a few cost-effective choices from Amazon.com, follow this link.
  • Not Sure? – You can never go wrong with a personalized holiday card to your superiors, especially if you have children. I’ve always included my bosses on my Christmas card mailing list. My holiday cards prominently feature my three (hungry-looking) children on the front. I’m careful not to put my ugly mug on the card, or to have too many amenities in the background for fear my boss might realize I’m overpaid.

What about the Office Gift Exchange?

The dreaded office gift exchange – why couldn’t I be sick that day?

There is almost nothing as painful as trying to look happy when you peel back the wrapping of an office party exchange gift only to reveal stinky potpourri or a book claiming to detail the “Best Bathroom Trivia” of all time. (I’m really okay never knowing that WD-40 stands for “water displacement, 40th attempt.”)

There are only two answers for the question “what is the proper gift to get someone for the office gift exchange:” Liquor or Gift Card.

  • Liquor – Company policy permitting, a bottle of Single Malt or Bombay Safire is the perfect gift for anyone on this list. Besides, if they hate it, they can always trade with the guy who got some crappy lavender potpourri.
  • Gift Card – Everyone, and I mean everyone, likes getting a gift card from a store or restaurant they’re likely to patronize. Not sure? Get them an Amazon.com gift card by following this link.

Customer Gifts Must Rock…

I’ve been on both the giving and receiving end of customer gifts, and I can tell you that (when the gifts are right) it’s much better to receive than to give.

However, before you send a thing to any of your customers, make sure you know a little something about them. For example, I only golf when forced by business circumstances, though I invariably receive at least three dozen monogrammed golf balls every holiday season. By mid-January I won’t be able to recall who sent balls and who sent nothing. Clearly, those who sent nothing are ahead of those who sent golf balls.

If you don’t know what makes your customer tick, you’re better off keeping any gifts you might send for yourself.

Start today to discover what makes them tick, what they love, and why they do what they do. Chances are you’ll find out that they really appreciate their kids, as I do, and that tickets to The Nutcracker for their family will go ten times further than a $500 bottle of wine. Here are a few tips:

  • Egomaniacs love anything that makes them feel important, so something expensive or something with their name on it works here.
  • Gift baskets might be okay for someone who isn’t yet a customer. If you’re trying to get your name in front of someone cheaply, a $75 gift basket should do the trick.
  • Liquor or wine – If you go this route, make sure you spend the cash. There is nothing worse than a bad bottle of wine (except, maybe, for bad shrimp). Instead of selecting the decent $20 Coppola for ten of your customers, get your best customer an Opus One and send the others a nice card.
  • Gift Card – what, are you crazy? This is tantamount to bribery. Avoid cash and cash equivalents when you consider gifts to customers.

When it comes to holiday gift giving, your mom was right: it’s the thought that counts. When you look at your list this year, be sure to put the proper thought to each gift and remember that most humans will reward those who most appreciate them. Happy Holidays.

Filed in Leadership, Management Resource Lists, Rankings, Recommended Products One Response so far

Goldman “Leaders” Choose Poverty over Incarceration

Goldman Leaders Forgo 2008 Bonuses

In a recent email from one of our readers, we were asked to weigh in on the Goldman Sachs Group’s leadership decision to request no bonuses for the current calendar year.

What are your thoughts on the following article?  How does this reflect leadership during these troubled times? – Tye Mills

(To read the article Tye mentions, follow this link.)

Lloyd Blankfein, CEO of Goldman Sachs, and six other top executives asked the board’s compensation committee to skip them during bonus time this year.

Pardon us if we don’t cheer.

While it is certainly admirable that these executives would take a seemingly proactive step to helping right the ship at Goldman, this decision should have come from the board (not from the executives) and should have come much sooner than November 2008. (In the nature of full disclosure, the executives likely gave up their bonuses because Attorney General Andrew Cuomo warned them last month that the bonuses might break New York State law.)

We never begrudge any executive their compensation nor any corporation their profits. This is the way our system works; and our system has worked better than any other in the history of the world. The prosperity enjoyed from Joe Six-Pack to Joe the Plumber is in large part due to the spoils enjoyed by the executives of the Fortune 500.

Take away their incentive to make money and you take away our standard of living.

Further, the seeds of destruction at corporations like Goldman and Lehman that plunged the world into economic turmoil were not planted by large bonuses. Rather, it was inattentive executives and especially their boards of directors who drove us off this cliff – while laughing and smiling all the way to the bank.




But How Will They Feed Their Families?

TheManager will not get a bonus this year, either. Not because I petitioned the board, but because my bonus is set up to pay out only when the shareholders make money. In 2008, my company’s shareholders lost quite a bit.

The removal of truly performance-based bonus pay is where most executives and boards have failed the owners of their companies; and why many of these men and women should be in jail. Leveraging your shareholders for personal gain, as Lehman has been reported to have done, by ratios of 30:1 or worse is criminal. No owner (and that’s what stockholders are) would ever agree to assume risks of this magnitude.

Before you worry about poor Lloyd and his crew, they will still receive roughly $600,000 each in base salary this year. Additionally, we can only wish that they were able to save some of their bonus from last year. (Just as the wheels of the economy were coming off in 2007, the top three executives at Goldman Sachs made more than $57 million each.)

It’s No Longer a Free Market

Companies, and especially their highly paid executives, have argued that multi-million dollar bonuses were necessary to “to attract and retain top talent.”

Top talent? By top talent, I’m hopeful you don’t mean Dick Fuld of Lehman or even Lloyd Blankfein.

Before we break our arms patting old Lloyd on the back, let’s remember that Blankfein was the CEO when Goldman posted a 70 percent drop in profits last quarter. Additionally, Blankfein was the CEO when Goldman stock plunged 69 percent this year. Doesn’t sound like bonus time to me.

In a free market, Goldman is free to pay its executives whatever they can grab. However, the market is no longer free for Goldman, Morgan Stanley and many other firms. Goldman, you see, took 10 billion of your tax dollars in the recent bailout. This makes them, in our opinion, a quasi-governmental entity. At the very least, they should be heavily regulated until we get our $10 billion back – this includes their executive compensation plans.

Back to Tye’s Question

Tye asked, “How does this reflect leadership during these troubled times?”

Tye, if this were truly a leadership move and not a classic CYA*, I would be impressed. I am not.

I would have been impressed if the leadership of Goldman Sachs had taken the long view toward building wealth for their shareholders and clients instead of focusing on their multi-million dollar paydays.

Once Goldman became a publicly traded entity in 1999 they moved the risk from themselves (the partners) to the shareholders. Without the risk, they were like drunken coeds on South Padre Island waiting for their shot on Girls Gone Wild.

Leadership is about service and sacrifice. Giving up a bonus because you’re afraid to go to jail is self preservation. Self preservation is as far from leadership as $57 million is from $600,000.

To read some interesting notes about the current crisis and how we really got there, check out a great article published last week by Liar’s Poker author Michael Lewis. It brings some closure to the fall of Salomon Brothers and some great insights into today’s troubles. Lewis convincingly argues that Salomon’s move from a partnership to a publicly traded corporation led to the current collapse. To read Lewis’ article, follow this link.

*Editor’s Note: CYA is code for “cover your ass.”

Filed in Business Situations, Digression, Leadership Development, Leadership News and Views, Leadership Observations No Responses yet

Barack Obama - Enlightened Leader?

Leadership Lessons from the President-Elect

As someone who voted for John McCain, I have to admit that (so far) I’m impressed by one of the leadership moves proposed by President-elect Barack Obama. It looks like Obama may build his Cabinet with those who often disagree with him.

Throughout the campaign, Obama seemed like someone who would say and do anything to be President. (In this respect, he was not so unlike McCain.) Obama, it seemed, just wanted to be President so bad that he actually made me nervous.

In fact, the AskTheManager.com editors were so confused by his windblown opinions during the campaign that we ranked him third behind McCain and Sarah Palin in ability to lead. This latest move to embrace his rivals will surely vault him ahead of Palin. (To see the original rankings, follow this link.)

Though I will never agree with Obama’s socialist leanings – and I believe his proposed economic policies could potentially destroy the very things that made this country great – his apparent willingness to embrace adversaries in an effort to staff his Cabinet with the very best is impressive.

What Business Leaders Can Learn From Obama

Just elected CEO of the World, Barack Obama could take the path that many Fortune 500 leaders have taken. He could surround himself with his friends, reward his loyal and faithful followers, and staff his team with a plethora of yes-men and yes-women.

For the moment, it appears Obama will take a page directly from the greatest Republican President (and second greatest Leadership-President) of all time. Obama has hinted that he will follow Abraham Lincoln’s lead and choose the most qualified – not necessarily the most loyal – to fill his Cabinet posts. (To see our rankings of US Presidents as leaders, follow this link.)

Presidents and business leaders generally claim they want to surround themselves with strong-willed people possessing the courage to disagree with them – seldom do they follow through with this position. A great example is provided by the worst President of all time, Richard Nixon.




Though he claimed he hated yes-men, no one dared tell Nixon “no.” Because his Cabinet was filled with neutered-nothings, his merry band of sycophants stood idly by while his presidency imploded.

Secretary of State Hillary?

Obama, hinting to appointments for Hillary Clinton, Republicans, and others who have disagreed with him, might actually be serious. If he is, he will be in rare company.

Lincoln appointed political enemies to important posts, including one who went so far as to describe Lincoln as a “long-armed ape.” Tough words in 1860.

If Obama follows Lincoln’s lead and appoints those he feels are most qualified to hold significant posts, and if he encourages them to disagree with him on important issues, he may very well set an example that all CEOs should follow. (Call me naïve, but I believe Lincoln’s leadership style could have saved virtually all of the companies declaring bankruptcy this year.)

Every leader needs people around them to tell them when they have no clothes. True leaders forget their egos and reward subordinates who have dissenting viewpoints – we’re hopeful that’s why they hired them in the first place.

Time will tell if Obama has skin thick enough to want the truth from his Cabinet, though I like what I see so far.

In Leadership, Obama Bats .500

It couldn’t all be good news, could it?

While I’m certainly impressed by what everyone thinks Obama may do with his Cabinet, I’m somewhat less impressed by the leadership lesson he provides in abandoning his Senate seat tomorrow.

If challenged, Obama’s people would surely claim that the President-elect needs to prepare for his first term, and that the Senate will be fine without him.

Really?

Doesn’t the lame duck Congress need to tackle the greatest economic crisis the US has seen in more than 70 years? Isn’t this the precise reason the people of Illinois elected him to serve? At a time when the country is devoid of leadership, Barack Obama provides a terrible lesson to the nation’s leaders: when the going gets tough, some people quit.

Winners Never Quit and…

While it’s true that Senator Barack Obama will be replaced in the US Senate, his replacement most likely won’t take office until after Christmas; and he/she most certainly won’t take office next week when the Senate meets to discuss the economic bailouts.

Is it possible Obama doesn’t really want to bail out the auto industry and he’s afraid of angering his union base? Who knows – all I know is that he is quitting early and leaving the decision on who will be the next US Senator from Illinois in the hands of a scandal-ridden Governor with a 13% approval rating.

Lest you argue that Governor Blagojevich would appoint the next Illinois Senator no matter what; wouldn’t it make more sense for Obama to wait until January 19, help the country through the current crisis, and hope the Governor resigns or is impeached between now and then? (I can dream.)

No matter how you slice it, quitting early does not sound like leadership to me. Let’s hope Obama has a really good reason for walking away in the middle of this crisis.

 

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