June 27, 2016
By Warren Buffet via linkedin.com Article
Warren Buffett Just Summed Up the Essence of Leadership In 2 Sentences
“If you’re looking for a manager, find somebody that’s intelligent, energetic and has integrity…if they don’t have the last, be sure they don’t have the first two. If you have somebody who lacks integrity, you want them to be dumb and lazy.”
June 27, 2016
Via investopedia.com Article
Make Money with Compound Interest
“A quick way to understand the impact of compound interest is to ask yourself if you’d rather receive $100,000 a day for a month, or start with a penny on day one and double it every day for those same 31 days. Which one did you choose? If you selected the first, you’ll get $3,100,000 – which is a nice amount. But if you selected the second alternative, you’ll end up with $10,737,418.24, which is obviously much better.”
June 27, 2016
By Michael McKinney via leadershipnow.com Article
“Vijay Govindarajan has incorporated good principles for managing change into a framework he calls The Three Box Solution. It is a method to simultaneously meet the performance demands of your current business—one that is still thriving—while dramatically reinventing it for the future. It’s about managing preservation, destruction and creation.
In each Box there is a function that needs to be performed to lead a sustainable business:
Box 1: The Present Box – Manage the present core business at peak efficiency and profitability.
Box 2: The Past Box – Selectively forget the traps of the past by identifying and divesting businesses and abandoning practices, ideas, and attitudes that have lost relevance in a changed environment and would otherwise interfere with your focus on inventing the future.
Box 3: The Future Box – Generate nonlinear, breakthrough ideas and convert them, through experimentation, into new products and businesses. It’s not about predicting the future … it is about being prepared for circumstances you can not control.
The Three-Box Solution requires an ability to think and act simultaneously in multiple time frames. Each requires different leadership and you must maintain balance across the 3 boxes. It’s a balance.
Most businesses focus on Box 1 – preservation. And understandably so: the rewards are immediate, it is a known quantity and the risks are relatively low. …
Boxes 2 and 3 are about creating the future. In Box 1 there is a value in sticking to what you have been good at, but in Box 3 you throw it out. The idea is to be building the future continuously instead of waiting until you are forced to do something. By then it is generally too late.
Boxes 2 and 3 are easy to ignore because ‘when you neglect the future today, you don’t see the damage today.'”
June 20, 2016
By Tom Fishburne via marketoonist.com Article
8 types of innovation
“In innovation, the path of least resistance usually leads to mediocrity. A form of Darwinism drives organizations as they decide which ideas to launch. But instead of ‘survival-of-the-fittest’ it’s ‘survival-of-the-safest.’
Innovation stage gates generally reward predictability, proof points, and past successes. And so the ideas that rise to the top result in more of the same. Innovation in many organizations is influenced more by risk aversion than by whether the ideas themselves are truly remarkable.
That’s how we end up with 352 distinct types or sizes of toothpaste sold at retail in the US, all claiming to whiten teeth, reduce plaque, curb sensitivity, and fight gingivitis, sometimes all at once.
Breakthrough innovation, on the other hand, carries risk, risk causes fear, and fear causes organizations to clamp down. According to BCG, only 10% of an average company’s innovation portfolio is considered breakthrough.
If we work in innovation, our job is to continually push ideas outside of the path of least resistance to the path of most remarkable. That requires taking the risks head-on and making known some of the unknown risks that can derail breakthrough projects. In innovation, playing it safe is itself risky”
June 20, 2016
By Dan Rockwell via leadershipfreak.wordpress.com Article
Seven ways to be overworked and under-appreciated
“5 questions to elevate engagement:
Others matter more when they’re engaged.
- What’s on your mind?
- What do you think?
- What are you learning?
- What should I know?
- What am I missing?
You’re overworked when you don’t engage others by asking questions.
5 questions to create options:
Others matter more when they create options.
- And what else? (The A.W.E. question.)
- Tell me more. (So that’s not really a question.)
- Who might know?
- If you did know? (Use this when people say, “I don’t know.”)
One reason you’re overworked is you talk too much and listen too little
5 questions to help others move forward:
Others matter more when they move forward.
- What’s next?
- Now what?
- What’s the next step today?
- What matters now?
Bonus: I hear what you can’t do. What can you do?
‘Telling’ makes work for you. Asking makes others matter more.”
June 20, 2016
By Peter Rea, Alan Kolp, Wendy Ritz, and Michelle D. Steward via hbr.org Article
Corporate Ethics Can’t Be Reduced to Compliance
“So what can a company do to excel ethically? Instead of focusing on the poor choices you want employees to avoid, focus on the positive virtues you want them to exhibit.
Plato emphasized a virtue-based system of ethics 2,400 years ago in his Academy. The philosopher believed that virtues were best encouraged through questions and discussions rather than through statements and proclamations. In other words, we learn ethics in conversation with others.
So rather than getting together with senior managers to craft a ‘values statement,’ corporate leaders should instead foster a series of structured conversations between leaders at all levels and their teams. The goal of these conversations should be to develop a common language to help frame examples of how people live out the organization’s values or classical virtues. This is inherently a social process — virtue is learned, not inherited. Leaders are already teachers of their culture, whether they are aware of it or not, so they should ask themselves how they can teach it better.”