Why managers with poor EQ get promoted

05 October 2012 Chris Golis

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9

Every year on the last Thursday on September, alumni of the London Business School congregate in more than 100 cities for a worldwide alumni celebration. This year in Sydney we had the pleasure of hearing Zeger Degraeve, a LBS professor and newly-appointed dean of the Melbourne Business School, speak on his specialty: decision science.
I must confess I approached the evening with some trepidation, as I could remember my decision science lectures in the early 1970s when I did my MBA. They comprised dry discussions decision trees, expected values and Bayesian analysis.
I could not have been more wrong. Degraeve’s talk was excellent.
One of the most interesting insights provided by Degraeve was an explanation of the Peter Principle – that employees tend to rise to their level of incompetence.  The usual explanation is that as people get promoted the new jobs require new and different skills and competencies which they do not have and so fail. 
Degraeve’s hypothesis begins with concept that you should first separate the decision from the result.  Decisions can then be described as good or bad, according to the process that was followed.  Bad decisions are emotional and impulsive, while good decisions use logic, science and realistic assessments of the probability of outcomes and risks. Results are either good or bad.
You can then draw up a simple 2x2 matrix (according to Degraeve, every business school lecture needs to contain one of these):

-         > Good decision, good result: Manager promoted (must be an MBA graduate!)

-         > Good decision, bad result: Bad luck, manager probably dismissed.

-         > Bad decision, good result:  Dumb luck, manager promoted.

-         > Bad decision, bad result: Poetic justice, manager probably dismissed unless he or she shifts the blame onto someone or something else.

In other words because most organisations follow the edict that you should reward managers according to their results, they end up promoting managers who are dumb but lucky but dismissing those who are smart but unlucky.  Of course, bad or good luck is not consistent and the promoted dumb managers end up making poor decisions with bad results.
One may define emotional intelligence (EQ) as the gap between impulse and action.  Emotionally intelligent people get control of their emotions before they make a decision.  Some EQ teachers say you should “go with the flow”.  This is wrong – it’s the complete opposite of emotional intelligence.  On the other hand, I believe Degraeve’s hypothesis has merit and provides a good explanation of how managers with low EQ can rise in an organisation.
If you have a chance to hear Degraeve, or attend one of his seminars, do so.  It was a wonderful interactive presentation and I guarantee one thing: you will never look at a thumbtack in the same way again.

Chris Golis

Chris Golis is a graduate of Cambridge and the London Business School. After successful careers in IT and venture capital where he was director of some 30 private and public companies, he is pursuing a third career as professional speaker and workshop leader on practical emotional intelligence.  The author of three books, Chris is the president of the Cambridge Society of NSW and an adjunct lecturer at the University of Technology Sydney. Visit his website at: www.emotionalintelligencecourse.com


Source:leadingcompany.com.au

Making Your Business Energy Efficient

Tuesday 16 August, 2011

by Jason Fabbri

With energy costs steadily on the rise, organisations must take sensible measures to cut their energy use. By following some simple, yet logical steps, you will reap the rewards of their energy efficiency - not only in carbon emissions but also in your back pocket.

1. Make sure you are on the right electricity plan
   
   This is the first step every business should take.  It provides the foundation for any good energy efficiency plan. Many businesses are still on the 'default' rate - which is typically quite expensive. It pays to shop around and make sure you aren't paying more than you need to.
   
   Remember, electricity is the same, regardless of where you are buying it from. The larger your business gets, the more money you may be spending unnecessarily on power.
   
2. Lighting
   
   To maximise natural light, try to install sky lights where practical. In cases where a light bulb is necessary, consider alternatives such as LED or compact fluorescent. To ensure lights aren't on where they aren't needed, install a motion sensor system so that lights turn on and off automatically to save costs.
   
   Replacing the lights in your office with energy efficient globes and turning off your lights when not in use can save you as much as 80% off your lighting energy bill or as much as 7% of your total energy bill.
   
3. Computers and monitors
   
   If practical, turn off all PCs and monitors at the end of the day. If this isn't possible in your business, at the very least ensure staff have their monitors turned off.
   
   Traditional desktop PCs use a lot of power - laptops are a good energy efficient alternative - and they are portable!  A laptop uses between 30 - 50 watts, however if you are going to be away from your computer for a little while, put it to sleep - it will only use around 2 watts (less than 4% of the energy).
   
   Screen savers do not significantly reduce the energy consumption as a PC will still use around 140 watts. When leaving your PC and peripherals on stand-by, they will only use around 15 watts in total.
   
4. Change the culture
   
   Ensure your workforce is aware of, and committed to, your energy management policy or sustainability plan. This could include creating an energy management team, encouraging staff to share energy saving ideas, establishing benchmarks or targets and regularly monitoring energy usage.
   
5. Insulation
   
   Insulation can drastically reduce energy costs as a result of heating and cooling. Insulation helps keep the ambient temperature at a comfortable level.
   
   If at all possible, look at installing good insulation for your business. Insulation prevents heat, light and sound from travelling. A fully insulated office can save up to 40% on winter heating costs. Or to put it another way, an uninsulated office can lose you 40 cents out of every dollar spent on heating, no matter which heating method you use.
   
6. Energy efficient purchasing decisions
   
   When buying computers, monitors, printers, fax machines, and copiers, consider energy star models that power down after a period of inactivity. Using energy efficient office equipment can reduce energy consumption of individual products by more than 50%.
   
   Heat can cause equipment failure. With power management features activated, your equipment generates less heat, so it may last longer and components that cycle, such as hard drives and microprocessors, are more reliable when power management is used.
   
   Because energy star products produce less heat, this contributes to a cooler and more comfortable workspace and reduces air-conditioning costs. Energy star enabled equipment has the added advantage of reducing office noise levels by powering down when not in use.
   
7. Heating, ventilation and air conditioning (HVAC)
   
   Heating, ventilation and air conditioning is essential in most settings to ensure a pleasant, comfortable and safe work environment. In commercial buildings in Australia, 70 percent of energy usage and 63 percent of greenhouse gas emissions are estimated to be contributable to HVAC, and typically accounts for 40-50 percent of the total energy bill for businesses.
   
   Significant energy saving design opportunities are available when starting a new business, but several possibilities to improve heating and cooling performance can also be achieved in existing systems. 
   
   Close shades during early morning and late evening to reduce heat gain from the sun, and close doors to the outside to contain air conditioning. If possible, turn the air conditioning off for the last hour of each work day.
   
   You can save considerably on the amount of energy consumed for each 1°C of cooling or heating that you do without. For example when it's 35° outside, setting your air conditioner to around 25, rather than say, 22, can save a significant amount of energy without your system running constantly. Balance between comfort and efficiency of the system.
   
8. Refrigerators and other business equipment
   
   Ensure the office fridge is maintained regularly, particularly the door seals. Ineffective door seals can add more to your power bill, as cool air escapes. Place reminder notices next to appliances such as photocopiers requesting staff to turn off the appliances at the end of the business day.
   
9. Power factor correction
   
   Installing power factor correction equipment can reduce your monthly electricity charges and help beat hidden running costs of motors and other inductive loads - such as transformers and ballasts. These capacitors work as silent reactive power 'generators' so the total amount of electricity demand decreases.
   
10. Get an energy assessment / audit
    
    A personalised energy assessment can uncover unique ways your business can save money, above and beyond generalised tips. The cost of the energy audit is often covered in the resulting energy savings gained.

Author Credits

Jason Fabbri, General Manager of Energy Watch Business is an experienced leader with an Energy industry focus. Jason specializes in Business Transformation, Process Improvement and Vendor Management. He is passionate about driving Energy Efficiency and Sustainability initiatives within organizations. Jason can be contacted on +613-9234-7816 and is available to comment on energy at home and in the workplace. Don’t be left in the dark, Get a FREE assessment of your business energy costs, along with tailored recommendations at www.energywatchbusiness.com.au.

Secret runners' business: A simple six-week schedule

15 October 2012 Brian Martin

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When you're under pressure and time is as scarce as a kind word from your boss, it's a good idea to fall back on simple processes and routines. There's a good reason that high risk/high consequence tasks such as flying a passenger jet, rebooting a nuclear reactor or performing surgery are built on the foundations of well-considered, documented procedures.
Humans are not robots and when we're under the pump we make mistakes, overlook the otherwise obvious and generally tend to stuff things up. A simple process, or cheat sheet, can prevent the simple, but disastrous from befalling unwitting victims. In the mindboggling complexity of surgery, forgetting to remove a sponge or clamp before sewing the patient back up leads to serious ramifications.
While running isn't brain surgery, and doesn't require a detailed understanding of subatomic particles, it can be easy to mess up your training when the rest of your brain is swamped with the demands of your job. Here's a simple training structure you can fall back on when you're uncertain about which city you've woken up in, or where you are in time and space. It's designed for a runner with some base running fitness, so if you're just starting out, reduce the volume of running to a level where you can sustain good technique for the duration of each session.
Six weeks of simple
This program has three different types of running (easy pace, tempo pace and speed) and each of these is done at a different pace, which is important for developing the physiological attributes required for running a decent 5-10km race or half-marathon. On the mechanical flipside, these different types of running also help stimulate and let you practise technical improvements.
So while I've presented this training structure as a six-week plan, you can swap each element around to suit your location and even what you feel like you can cope with on any given day. The important thing is to try and do at least one of these different-paced runs each week – the actual structure of the session you do is less important. Keep in mind this program is your failsafe plan, rather than one you'd follow if you had all the time and headspace in the world to apply to your running.

Notes to the program
The idea with this program is to keep maximum flexibility while maintaining the base structure as best you can. If you can do one run of each type every week for six weeks, you'll have done a great job. If you have time to sneak in a fourth easy run: even better. If you're really busy and stressed, don't do any more running than that. Think about doing some strength training or a yoga or pilates class as an additional stimulus and chance to relax.
Recovery
Allow recovery between each of the harder sessions (speed and tempo work) of at least two days. Within each training session give yourself as much recovery as you need to get your breath back and be able to start the next interval or run feeling in control. For speed work and hills, walking back to the beginning is a good idea. For the tempo pace, take it easy between intervals: a one to three-minute jog (or more) might be needed, depending on how fit you are.
Pace / effort
Easy pace is slow enough so that you could talk while running, and this is exactly what you should do if you have the chance: take a friend or colleague along for a run, rather than meeting for a drink after work. Your main easy run for each week should be the longer run, but only go as far as you feel strong enough to run well: there's no point flogging yourself at a desperate plodding pace.
Tempo pace is a solid pace: close to your 10km or half-marathon race pace. These sessions are about sustained effort and concentration on good technique rather than all-out hard running.
Hills and sprints are to be done fast but in control:  70-85% efforts so you can maintain good technique and strength.
Progressive difficulty
The order as presented in the diagram above progresses slightly in difficulty, but feel free to modify or swap these training sessions around to suit your needs.
Enjoy your six weeks of simple running!

Brian Martin

Brian Martin is a specialist long-distance running coach registered with Athletics Australia. In a former life he worked for KPMG and in the funds management industry as an IT executive and operational strategy consultant. He is the author of influential running blog Running Technique Tips, founder of Running Technique Coach and a fixer of broken runners.



Source:http://www.leadingcompany.com.au

Secret runners' business: A simple six-week schedule

15 October 2012 Brian Martin

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When you're under pressure and time is as scarce as a kind word from your boss, it's a good idea to fall back on simple processes and routines. There's a good reason that high risk/high consequence tasks such as flying a passenger jet, rebooting a nuclear reactor or performing surgery are built on the foundations of well-considered, documented procedures.
Humans are not robots and when we're under the pump we make mistakes, overlook the otherwise obvious and generally tend to stuff things up. A simple process, or cheat sheet, can prevent the simple, but disastrous from befalling unwitting victims. In the mindboggling complexity of surgery, forgetting to remove a sponge or clamp before sewing the patient back up leads to serious ramifications.
While running isn't brain surgery, and doesn't require a detailed understanding of subatomic particles, it can be easy to mess up your training when the rest of your brain is swamped with the demands of your job. Here's a simple training structure you can fall back on when you're uncertain about which city you've woken up in, or where you are in time and space. It's designed for a runner with some base running fitness, so if you're just starting out, reduce the volume of running to a level where you can sustain good technique for the duration of each session.
Six weeks of simple
This program has three different types of running (easy pace, tempo pace and speed) and each of these is done at a different pace, which is important for developing the physiological attributes required for running a decent 5-10km race or half-marathon. On the mechanical flipside, these different types of running also help stimulate and let you practise technical improvements.
So while I've presented this training structure as a six-week plan, you can swap each element around to suit your location and even what you feel like you can cope with on any given day. The important thing is to try and do at least one of these different-paced runs each week – the actual structure of the session you do is less important. Keep in mind this program is your failsafe plan, rather than one you'd follow if you had all the time and headspace in the world to apply to your running.

Notes to the program
The idea with this program is to keep maximum flexibility while maintaining the base structure as best you can. If you can do one run of each type every week for six weeks, you'll have done a great job. If you have time to sneak in a fourth easy run: even better. If you're really busy and stressed, don't do any more running than that. Think about doing some strength training or a yoga or pilates class as an additional stimulus and chance to relax.
Recovery
Allow recovery between each of the harder sessions (speed and tempo work) of at least two days. Within each training session give yourself as much recovery as you need to get your breath back and be able to start the next interval or run feeling in control. For speed work and hills, walking back to the beginning is a good idea. For the tempo pace, take it easy between intervals: a one to three-minute jog (or more) might be needed, depending on how fit you are.
Pace / effort
Easy pace is slow enough so that you could talk while running, and this is exactly what you should do if you have the chance: take a friend or colleague along for a run, rather than meeting for a drink after work. Your main easy run for each week should be the longer run, but only go as far as you feel strong enough to run well: there's no point flogging yourself at a desperate plodding pace.
Tempo pace is a solid pace: close to your 10km or half-marathon race pace. These sessions are about sustained effort and concentration on good technique rather than all-out hard running.
Hills and sprints are to be done fast but in control:  70-85% efforts so you can maintain good technique and strength.
Progressive difficulty
The order as presented in the diagram above progresses slightly in difficulty, but feel free to modify or swap these training sessions around to suit your needs.
Enjoy your six weeks of simple running!

Brian Martin

Brian Martin is a specialist long-distance running coach registered with Athletics Australia. In a former life he worked for KPMG and in the funds management industry as an IT executive and operational strategy consultant. He is the author of influential running blog Running Technique Tips, founder of Running Technique Coach and a fixer of broken runners.



Source:http://www.leadingcompany.com.au

Secret runners' business: A simple six-week schedule

15 October 2012 Brian Martin

SHARE

When you're under pressure and time is as scarce as a kind word from your boss, it's a good idea to fall back on simple processes and routines. There's a good reason that high risk/high consequence tasks such as flying a passenger jet, rebooting a nuclear reactor or performing surgery are built on the foundations of well-considered, documented procedures.
Humans are not robots and when we're under the pump we make mistakes, overlook the otherwise obvious and generally tend to stuff things up. A simple process, or cheat sheet, can prevent the simple, but disastrous from befalling unwitting victims. In the mindboggling complexity of surgery, forgetting to remove a sponge or clamp before sewing the patient back up leads to serious ramifications.
While running isn't brain surgery, and doesn't require a detailed understanding of subatomic particles, it can be easy to mess up your training when the rest of your brain is swamped with the demands of your job. Here's a simple training structure you can fall back on when you're uncertain about which city you've woken up in, or where you are in time and space. It's designed for a runner with some base running fitness, so if you're just starting out, reduce the volume of running to a level where you can sustain good technique for the duration of each session.
Six weeks of simple
This program has three different types of running (easy pace, tempo pace and speed) and each of these is done at a different pace, which is important for developing the physiological attributes required for running a decent 5-10km race or half-marathon. On the mechanical flipside, these different types of running also help stimulate and let you practise technical improvements.
So while I've presented this training structure as a six-week plan, you can swap each element around to suit your location and even what you feel like you can cope with on any given day. The important thing is to try and do at least one of these different-paced runs each week – the actual structure of the session you do is less important. Keep in mind this program is your failsafe plan, rather than one you'd follow if you had all the time and headspace in the world to apply to your running.

Notes to the program
The idea with this program is to keep maximum flexibility while maintaining the base structure as best you can. If you can do one run of each type every week for six weeks, you'll have done a great job. If you have time to sneak in a fourth easy run: even better. If you're really busy and stressed, don't do any more running than that. Think about doing some strength training or a yoga or pilates class as an additional stimulus and chance to relax.
Recovery
Allow recovery between each of the harder sessions (speed and tempo work) of at least two days. Within each training session give yourself as much recovery as you need to get your breath back and be able to start the next interval or run feeling in control. For speed work and hills, walking back to the beginning is a good idea. For the tempo pace, take it easy between intervals: a one to three-minute jog (or more) might be needed, depending on how fit you are.
Pace / effort
Easy pace is slow enough so that you could talk while running, and this is exactly what you should do if you have the chance: take a friend or colleague along for a run, rather than meeting for a drink after work. Your main easy run for each week should be the longer run, but only go as far as you feel strong enough to run well: there's no point flogging yourself at a desperate plodding pace.
Tempo pace is a solid pace: close to your 10km or half-marathon race pace. These sessions are about sustained effort and concentration on good technique rather than all-out hard running.
Hills and sprints are to be done fast but in control:  70-85% efforts so you can maintain good technique and strength.
Progressive difficulty
The order as presented in the diagram above progresses slightly in difficulty, but feel free to modify or swap these training sessions around to suit your needs.
Enjoy your six weeks of simple running!

Brian Martin

Brian Martin is a specialist long-distance running coach registered with Athletics Australia. In a former life he worked for KPMG and in the funds management industry as an IT executive and operational strategy consultant. He is the author of influential running blog Running Technique Tips, founder of Running Technique Coach and a fixer of broken runners.



Source:http://www.leadingcompany.com.au

Secret runners' business: A simple six-week schedule

15 October 2012 Brian Martin

SHARE

When you're under pressure and time is as scarce as a kind word from your boss, it's a good idea to fall back on simple processes and routines. There's a good reason that high risk/high consequence tasks such as flying a passenger jet, rebooting a nuclear reactor or performing surgery are built on the foundations of well-considered, documented procedures.
Humans are not robots and when we're under the pump we make mistakes, overlook the otherwise obvious and generally tend to stuff things up. A simple process, or cheat sheet, can prevent the simple, but disastrous from befalling unwitting victims. In the mindboggling complexity of surgery, forgetting to remove a sponge or clamp before sewing the patient back up leads to serious ramifications.
While running isn't brain surgery, and doesn't require a detailed understanding of subatomic particles, it can be easy to mess up your training when the rest of your brain is swamped with the demands of your job. Here's a simple training structure you can fall back on when you're uncertain about which city you've woken up in, or where you are in time and space. It's designed for a runner with some base running fitness, so if you're just starting out, reduce the volume of running to a level where you can sustain good technique for the duration of each session.
Six weeks of simple
This program has three different types of running (easy pace, tempo pace and speed) and each of these is done at a different pace, which is important for developing the physiological attributes required for running a decent 5-10km race or half-marathon. On the mechanical flipside, these different types of running also help stimulate and let you practise technical improvements.
So while I've presented this training structure as a six-week plan, you can swap each element around to suit your location and even what you feel like you can cope with on any given day. The important thing is to try and do at least one of these different-paced runs each week – the actual structure of the session you do is less important. Keep in mind this program is your failsafe plan, rather than one you'd follow if you had all the time and headspace in the world to apply to your running.

Notes to the program
The idea with this program is to keep maximum flexibility while maintaining the base structure as best you can. If you can do one run of each type every week for six weeks, you'll have done a great job. If you have time to sneak in a fourth easy run: even better. If you're really busy and stressed, don't do any more running than that. Think about doing some strength training or a yoga or pilates class as an additional stimulus and chance to relax.
Recovery
Allow recovery between each of the harder sessions (speed and tempo work) of at least two days. Within each training session give yourself as much recovery as you need to get your breath back and be able to start the next interval or run feeling in control. For speed work and hills, walking back to the beginning is a good idea. For the tempo pace, take it easy between intervals: a one to three-minute jog (or more) might be needed, depending on how fit you are.
Pace / effort
Easy pace is slow enough so that you could talk while running, and this is exactly what you should do if you have the chance: take a friend or colleague along for a run, rather than meeting for a drink after work. Your main easy run for each week should be the longer run, but only go as far as you feel strong enough to run well: there's no point flogging yourself at a desperate plodding pace.
Tempo pace is a solid pace: close to your 10km or half-marathon race pace. These sessions are about sustained effort and concentration on good technique rather than all-out hard running.
Hills and sprints are to be done fast but in control:  70-85% efforts so you can maintain good technique and strength.
Progressive difficulty
The order as presented in the diagram above progresses slightly in difficulty, but feel free to modify or swap these training sessions around to suit your needs.
Enjoy your six weeks of simple running!

Brian Martin

Brian Martin is a specialist long-distance running coach registered with Athletics Australia. In a former life he worked for KPMG and in the funds management industry as an IT executive and operational strategy consultant. He is the author of influential running blog Running Technique Tips, founder of Running Technique Coach and a fixer of broken runners.



Source:http://www.leadingcompany.com.au

Secret runners' business: A simple six-week schedule

15 October 2012 Brian Martin

SHARE

When you're under pressure and time is as scarce as a kind word from your boss, it's a good idea to fall back on simple processes and routines. There's a good reason that high risk/high consequence tasks such as flying a passenger jet, rebooting a nuclear reactor or performing surgery are built on the foundations of well-considered, documented procedures.
Humans are not robots and when we're under the pump we make mistakes, overlook the otherwise obvious and generally tend to stuff things up. A simple process, or cheat sheet, can prevent the simple, but disastrous from befalling unwitting victims. In the mindboggling complexity of surgery, forgetting to remove a sponge or clamp before sewing the patient back up leads to serious ramifications.
While running isn't brain surgery, and doesn't require a detailed understanding of subatomic particles, it can be easy to mess up your training when the rest of your brain is swamped with the demands of your job. Here's a simple training structure you can fall back on when you're uncertain about which city you've woken up in, or where you are in time and space. It's designed for a runner with some base running fitness, so if you're just starting out, reduce the volume of running to a level where you can sustain good technique for the duration of each session.
Six weeks of simple
This program has three different types of running (easy pace, tempo pace and speed) and each of these is done at a different pace, which is important for developing the physiological attributes required for running a decent 5-10km race or half-marathon. On the mechanical flipside, these different types of running also help stimulate and let you practise technical improvements.
So while I've presented this training structure as a six-week plan, you can swap each element around to suit your location and even what you feel like you can cope with on any given day. The important thing is to try and do at least one of these different-paced runs each week – the actual structure of the session you do is less important. Keep in mind this program is your failsafe plan, rather than one you'd follow if you had all the time and headspace in the world to apply to your running.

Notes to the program
The idea with this program is to keep maximum flexibility while maintaining the base structure as best you can. If you can do one run of each type every week for six weeks, you'll have done a great job. If you have time to sneak in a fourth easy run: even better. If you're really busy and stressed, don't do any more running than that. Think about doing some strength training or a yoga or pilates class as an additional stimulus and chance to relax.
Recovery
Allow recovery between each of the harder sessions (speed and tempo work) of at least two days. Within each training session give yourself as much recovery as you need to get your breath back and be able to start the next interval or run feeling in control. For speed work and hills, walking back to the beginning is a good idea. For the tempo pace, take it easy between intervals: a one to three-minute jog (or more) might be needed, depending on how fit you are.
Pace / effort
Easy pace is slow enough so that you could talk while running, and this is exactly what you should do if you have the chance: take a friend or colleague along for a run, rather than meeting for a drink after work. Your main easy run for each week should be the longer run, but only go as far as you feel strong enough to run well: there's no point flogging yourself at a desperate plodding pace.
Tempo pace is a solid pace: close to your 10km or half-marathon race pace. These sessions are about sustained effort and concentration on good technique rather than all-out hard running.
Hills and sprints are to be done fast but in control:  70-85% efforts so you can maintain good technique and strength.
Progressive difficulty
The order as presented in the diagram above progresses slightly in difficulty, but feel free to modify or swap these training sessions around to suit your needs.
Enjoy your six weeks of simple running!

Brian Martin

Brian Martin is a specialist long-distance running coach registered with Athletics Australia. In a former life he worked for KPMG and in the funds management industry as an IT executive and operational strategy consultant. He is the author of influential running blog Running Technique Tips, founder of Running Technique Coach and a fixer of broken runners.



Source:http://www.leadingcompany.com.au

Secret runners' business: A simple six-week schedule

15 October 2012 Brian Martin

SHARE

When you're under pressure and time is as scarce as a kind word from your boss, it's a good idea to fall back on simple processes and routines. There's a good reason that high risk/high consequence tasks such as flying a passenger jet, rebooting a nuclear reactor or performing surgery are built on the foundations of well-considered, documented procedures.
Humans are not robots and when we're under the pump we make mistakes, overlook the otherwise obvious and generally tend to stuff things up. A simple process, or cheat sheet, can prevent the simple, but disastrous from befalling unwitting victims. In the mindboggling complexity of surgery, forgetting to remove a sponge or clamp before sewing the patient back up leads to serious ramifications.
While running isn't brain surgery, and doesn't require a detailed understanding of subatomic particles, it can be easy to mess up your training when the rest of your brain is swamped with the demands of your job. Here's a simple training structure you can fall back on when you're uncertain about which city you've woken up in, or where you are in time and space. It's designed for a runner with some base running fitness, so if you're just starting out, reduce the volume of running to a level where you can sustain good technique for the duration of each session.
Six weeks of simple
This program has three different types of running (easy pace, tempo pace and speed) and each of these is done at a different pace, which is important for developing the physiological attributes required for running a decent 5-10km race or half-marathon. On the mechanical flipside, these different types of running also help stimulate and let you practise technical improvements.
So while I've presented this training structure as a six-week plan, you can swap each element around to suit your location and even what you feel like you can cope with on any given day. The important thing is to try and do at least one of these different-paced runs each week – the actual structure of the session you do is less important. Keep in mind this program is your failsafe plan, rather than one you'd follow if you had all the time and headspace in the world to apply to your running.

Notes to the program
The idea with this program is to keep maximum flexibility while maintaining the base structure as best you can. If you can do one run of each type every week for six weeks, you'll have done a great job. If you have time to sneak in a fourth easy run: even better. If you're really busy and stressed, don't do any more running than that. Think about doing some strength training or a yoga or pilates class as an additional stimulus and chance to relax.
Recovery
Allow recovery between each of the harder sessions (speed and tempo work) of at least two days. Within each training session give yourself as much recovery as you need to get your breath back and be able to start the next interval or run feeling in control. For speed work and hills, walking back to the beginning is a good idea. For the tempo pace, take it easy between intervals: a one to three-minute jog (or more) might be needed, depending on how fit you are.
Pace / effort
Easy pace is slow enough so that you could talk while running, and this is exactly what you should do if you have the chance: take a friend or colleague along for a run, rather than meeting for a drink after work. Your main easy run for each week should be the longer run, but only go as far as you feel strong enough to run well: there's no point flogging yourself at a desperate plodding pace.
Tempo pace is a solid pace: close to your 10km or half-marathon race pace. These sessions are about sustained effort and concentration on good technique rather than all-out hard running.
Hills and sprints are to be done fast but in control:  70-85% efforts so you can maintain good technique and strength.
Progressive difficulty
The order as presented in the diagram above progresses slightly in difficulty, but feel free to modify or swap these training sessions around to suit your needs.
Enjoy your six weeks of simple running!

Brian Martin

Brian Martin is a specialist long-distance running coach registered with Athletics Australia. In a former life he worked for KPMG and in the funds management industry as an IT executive and operational strategy consultant. He is the author of influential running blog Running Technique Tips, founder of Running Technique Coach and a fixer of broken runners.



Source:http://www.leadingcompany.com.au

Secret runners' business: A simple six-week schedule

15 October 2012 Brian Martin

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When you're under pressure and time is as scarce as a kind word from your boss, it's a good idea to fall back on simple processes and routines. There's a good reason that high risk/high consequence tasks such as flying a passenger jet, rebooting a nuclear reactor or performing surgery are built on the foundations of well-considered, documented procedures.
Humans are not robots and when we're under the pump we make mistakes, overlook the otherwise obvious and generally tend to stuff things up. A simple process, or cheat sheet, can prevent the simple, but disastrous from befalling unwitting victims. In the mindboggling complexity of surgery, forgetting to remove a sponge or clamp before sewing the patient back up leads to serious ramifications.
While running isn't brain surgery, and doesn't require a detailed understanding of subatomic particles, it can be easy to mess up your training when the rest of your brain is swamped with the demands of your job. Here's a simple training structure you can fall back on when you're uncertain about which city you've woken up in, or where you are in time and space. It's designed for a runner with some base running fitness, so if you're just starting out, reduce the volume of running to a level where you can sustain good technique for the duration of each session.
Six weeks of simple
This program has three different types of running (easy pace, tempo pace and speed) and each of these is done at a different pace, which is important for developing the physiological attributes required for running a decent 5-10km race or half-marathon. On the mechanical flipside, these different types of running also help stimulate and let you practise technical improvements.
So while I've presented this training structure as a six-week plan, you can swap each element around to suit your location and even what you feel like you can cope with on any given day. The important thing is to try and do at least one of these different-paced runs each week – the actual structure of the session you do is less important. Keep in mind this program is your failsafe plan, rather than one you'd follow if you had all the time and headspace in the world to apply to your running.

Notes to the program
The idea with this program is to keep maximum flexibility while maintaining the base structure as best you can. If you can do one run of each type every week for six weeks, you'll have done a great job. If you have time to sneak in a fourth easy run: even better. If you're really busy and stressed, don't do any more running than that. Think about doing some strength training or a yoga or pilates class as an additional stimulus and chance to relax.
Recovery
Allow recovery between each of the harder sessions (speed and tempo work) of at least two days. Within each training session give yourself as much recovery as you need to get your breath back and be able to start the next interval or run feeling in control. For speed work and hills, walking back to the beginning is a good idea. For the tempo pace, take it easy between intervals: a one to three-minute jog (or more) might be needed, depending on how fit you are.
Pace / effort
Easy pace is slow enough so that you could talk while running, and this is exactly what you should do if you have the chance: take a friend or colleague along for a run, rather than meeting for a drink after work. Your main easy run for each week should be the longer run, but only go as far as you feel strong enough to run well: there's no point flogging yourself at a desperate plodding pace.
Tempo pace is a solid pace: close to your 10km or half-marathon race pace. These sessions are about sustained effort and concentration on good technique rather than all-out hard running.
Hills and sprints are to be done fast but in control:  70-85% efforts so you can maintain good technique and strength.
Progressive difficulty
The order as presented in the diagram above progresses slightly in difficulty, but feel free to modify or swap these training sessions around to suit your needs.
Enjoy your six weeks of simple running!

Brian Martin

Brian Martin is a specialist long-distance running coach registered with Athletics Australia. In a former life he worked for KPMG and in the funds management industry as an IT executive and operational strategy consultant. He is the author of influential running blog Running Technique Tips, founder of Running Technique Coach and a fixer of broken runners.



Source:http://www.leadingcompany.com.au

Secret runners' business: A simple six-week schedule

15 October 2012 Brian Martin

SHARE

When you're under pressure and time is as scarce as a kind word from your boss, it's a good idea to fall back on simple processes and routines. There's a good reason that high risk/high consequence tasks such as flying a passenger jet, rebooting a nuclear reactor or performing surgery are built on the foundations of well-considered, documented procedures.
Humans are not robots and when we're under the pump we make mistakes, overlook the otherwise obvious and generally tend to stuff things up. A simple process, or cheat sheet, can prevent the simple, but disastrous from befalling unwitting victims. In the mindboggling complexity of surgery, forgetting to remove a sponge or clamp before sewing the patient back up leads to serious ramifications.
While running isn't brain surgery, and doesn't require a detailed understanding of subatomic particles, it can be easy to mess up your training when the rest of your brain is swamped with the demands of your job. Here's a simple training structure you can fall back on when you're uncertain about which city you've woken up in, or where you are in time and space. It's designed for a runner with some base running fitness, so if you're just starting out, reduce the volume of running to a level where you can sustain good technique for the duration of each session.
Six weeks of simple
This program has three different types of running (easy pace, tempo pace and speed) and each of these is done at a different pace, which is important for developing the physiological attributes required for running a decent 5-10km race or half-marathon. On the mechanical flipside, these different types of running also help stimulate and let you practise technical improvements.
So while I've presented this training structure as a six-week plan, you can swap each element around to suit your location and even what you feel like you can cope with on any given day. The important thing is to try and do at least one of these different-paced runs each week – the actual structure of the session you do is less important. Keep in mind this program is your failsafe plan, rather than one you'd follow if you had all the time and headspace in the world to apply to your running.

Notes to the program
The idea with this program is to keep maximum flexibility while maintaining the base structure as best you can. If you can do one run of each type every week for six weeks, you'll have done a great job. If you have time to sneak in a fourth easy run: even better. If you're really busy and stressed, don't do any more running than that. Think about doing some strength training or a yoga or pilates class as an additional stimulus and chance to relax.
Recovery
Allow recovery between each of the harder sessions (speed and tempo work) of at least two days. Within each training session give yourself as much recovery as you need to get your breath back and be able to start the next interval or run feeling in control. For speed work and hills, walking back to the beginning is a good idea. For the tempo pace, take it easy between intervals: a one to three-minute jog (or more) might be needed, depending on how fit you are.
Pace / effort
Easy pace is slow enough so that you could talk while running, and this is exactly what you should do if you have the chance: take a friend or colleague along for a run, rather than meeting for a drink after work. Your main easy run for each week should be the longer run, but only go as far as you feel strong enough to run well: there's no point flogging yourself at a desperate plodding pace.
Tempo pace is a solid pace: close to your 10km or half-marathon race pace. These sessions are about sustained effort and concentration on good technique rather than all-out hard running.
Hills and sprints are to be done fast but in control:  70-85% efforts so you can maintain good technique and strength.
Progressive difficulty
The order as presented in the diagram above progresses slightly in difficulty, but feel free to modify or swap these training sessions around to suit your needs.
Enjoy your six weeks of simple running!

Brian Martin

Brian Martin is a specialist long-distance running coach registered with Athletics Australia. In a former life he worked for KPMG and in the funds management industry as an IT executive and operational strategy consultant. He is the author of influential running blog Running Technique Tips, founder of Running Technique Coach and a fixer of broken runners.



Source:http://www.leadingcompany.com.au

Why I mentor: Two successful executives explain

05 October 2012 Kath Walters

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22

Early in her career, Maxine Rich (pictured above), now the managing director of investment banking at Investec, worked at the law firm Freehills. Her boss was David Gonski, now one of the most powerful businessmen in the land. Gonski helped guide and develop Rich, and the experience left a powerful impression on her, giving her confidence and opening up career opportunities.
“I think one of the biggest stumbling blocks for women is not realising how good they are,” Rich says.
It’s one of the reasons for Rich’s involvement in a new initiative to mentor women to supercharge their businesses, called Springboard Enterprises. The program matches women who have started businesses with women with extensive commercial experience, including Rich and others such as Carol Schwartz, a non-executive director for property development company, Stockland.
Schwartz is behind a number of initiatives to improve opportunities for women at every level of business, and to increase the profile of women in the media, through her involvement in the Women’s Leadership Institute Australia, and Women for Media.
Schwartz, a lawyer who at 23 started an aerobics and dance studio, did so without the benefit of outside guidance. She says: “Having been through the experience as a female entrepreneur, I would have really benefited from having a mentor – a woman who could help me work through the issues that I was facing and was going to face.”
Schwartz says her husband was terrific, but a mentor’s role is different. “It is about having someone not related to you, as someone who could bounce your ideas off, and be more objective about feedback.”
Taking time from busy schedules
Both Schwartz and Rich have developed into mentors for personal reasons, too.
Says Schwartz: “I just love people. I love meeting interesting people and discussing ideas and business with them. It broadens my thinking and exposes me to new things and new ways of seeing things. It is incredibly symbiotic.”
Rich says the mentoring adds meaning to her success. “The higher up the ladder you go, the more you want to help. Because once you get to a certain level, you can do another deal and do it well, you can get another board seat and do it well. But your greater contribution is how many other people you can help along the way.”
For mentors, seeing their mentees climb the ladder and succeed is a matter of personal pride.
Mentoring methods
Mentoring has always been a part of business, with senior men and women taking an interest in younger talented people on their staff or in their networks. For those who have achieved their ambitions, the help of mentors is typically seen as essential to their success.
Many men, however, express a degree of awkwardness about mentoring women, not wanting their professional interest to be misinterpreted by the mentee or their peers.



Source:http://www.leadingcompany.com.au

Running Your Business Lean And Green

Tuesday 11 October, 2011

by Jason Fabri

In today's business world, running a lean and green business is not only good for the environment - it's downright essential to staying relevant and competitive. Discover some key areas of focus when beginning your green journey.

Gone are the days of carelessly consuming resources, not keeping track of your businesses' emissions and impacts on the environment. Businesses are accountable and - whilst this can at times be an extra burden on already stretched operations - there are clear benefits for those who take the opportunity to change and become lean and green.
Running a lean and green operation is good for the bottom line - but be prepared for some short-term costs for longer-term gains.

Paper

Reducing your paper usage is by far the easiest way to begin your lean and green journey. Encourage your employees to think twice before printing emails, and if you find staff are printing out because they don't like to read off a screen, and look at getting monitors that are easier on the eyes, such as LCD or LED.
Tablet PCs, such as the iPad are a great option for employees who print off lots of paper - particularly marketing collateral or reports. Not only do these devices consume much less electricity, they are a unique way of eliminating paper almost completely. Weigh up the cost to purchase one of these devices, against the cost of printing - paper, ink, maintenance etc.
If printing is a must - make sure it is double-sided (duplex) and the paper is recycled.

Transport

Encourage your employees to utilise public transport, or bike to work.  This can reduce your car parking costs if any, and also have a significant impact on the health and fitness of your employees due to the increased activity. Shower facilities and bike racks or lockers can help to drive employees towards these transport options.
If you have a fleet of vehicles, explore the possibility of hybrid electric vehicles as an alternative to your standard petrol powered fleet.
To further reduce the environmental impacts of transport on your business, consider suppliers who are closer to your business. This reduces the distance travelled to supply your site, and therefore reduces your overall emissions.

Water and waste

In the men's bathroom - explore installing a waterless urinal. Utilising deodorising cubes, this technology will save up to 99.9% of water compared to a conventional flushing urinal. For everyone else, ensure every toilet has a "half-flush" option.
Recycling bins are a must for any green business. These should be readily available and the preferred option. Ensure that any secure document destruction companies you work with share your green vision, and recycle their shredded documents.
Consider removing personal waste baskets from staffs' desks to encourage them to think twice before generating waste.
Installing a mini-compost facility in each kitchen is an alternative to sending your office's food scraps to landfill; send them to the compost bin instead. From used coffee grounds and paper napkins to half-eaten meals and vegetable trimmings - food scraps and food-soiled paper that your office typically throws away can be collected to make nutrient-rich compost.

Electricity

Choosing an Accredited Green Electricity plan is an easy way to passively offset your emissions - these plans are normally slightly more expensive because of this. Green Electricity plans use renewable energy sourced from the sun, the wind, water and waste that is purchased by your energy company on your behalf.
Review your lighting, HVAC (Heating, Ventilation and Cooling) and other sources of high energy usage. Consider automation if possible, so that being environmentally friendly isn't just left up to the memory of staff.
Skylights and energy efficient globes are proven to reduce energy costs by providing more efficient lighting alternatives.

Culture

Beginning a journey within your company to become leaner and greener involves everyone in your business. As a leader, it's impossible to be everywhere at once. Consider appointing Environmental Champions, who can represent and role model your new initiative in their particular divisions.
Ensure your workforce is aware of, and committed to, your energy management policy or sustainability plan. This could include creating an Energy Management team, encouraging staff to share energy saving ideas, establishing benchmarks or targets and regularly monitoring energy usage.
Take the opportunity to personally engage your staff as to why it is important to contribute to this environmental initiative - and be sure to communicate any wins relating to your company's movement towards becoming greener.
Encourage outside group activities that have an environmental focus, such as tree planting or a recycling drive. This is not only good for the planet, but can do wonders for employee relationships and engagement within the company.

In conclusion

When your business makes the decision to change and implement a sustained efficiency strategy, the benefits are much more than just cost savings.
Your business should be loud and proud about being lean and green. Extend your influence to your current and potential suppliers, by making it known that your business prefers to work with suppliers that have a similar green, environmentally friendly focus.
Soon, there will be discerning clients that will only want to work with companies that are environmentally sustainable. There will be a number of reasons for this, ranging from reputation to legislation - so ensure that your business is not left behind in this cultural shift.



Source:ceoonline.com

Are emotional capitalists the new leaders?

06 November 2012 Chris Golis

I have just finished reading Emotional Capitalists: The New Leaders by Martyn Newman
The premise of the book is that there is new type of leader emerging who, using emotional intelligence (EQ), will be more successful. The structure of the book is simple: Newman lists seven competencies of the high-EQ leader: self-reliance, assertiveness, optimism, self-actualisation, self-confidence, relationship skills and empathy. Chapter by chapter Newman describes how the reader can improve those competencies.
Given that steps three and four of Daniel Goleman’s definition of emotional intelligence are empathy and relationship skills these two chapters are almost tautological. Newman does make a telling point that no single factor predicts the productivity of an employee more clearly than his or her relationship with a direct supervisor.
Given the falls in productivity in Australia over the past five years you could argue that the Industrial Relations system imposed by the federal government is a bigger factor.  However, there is no doubt the advice given in Emotional Capitalists that if there is an emotional bond between the employee and manager that is built on trust and respect it is likely the performance of the employee will improve.
However, it is with the five other competencies that I have a problem.  Here is what Newman says about them:
Self-reliance: The single most important signature strength for creating emotional wealth.
Assertiveness: Comprises being able to communicate your message honestly and directly, while respecting that others may hold a different opinion.
Optimism: Is perhaps the important quality you can develop to achieve greater success as a leader.
Self-actualisation: Nothing is more important to your long-term success as a leader than building your stocks of emotional capital in self-actualisation.
Self-reliance:  The most basic foundation of your emotional capital and the source of your personal power.
I must confess that when I consider this list I feel a little sorry for assertiveness.
But my real point is what do these competencies have to do with steps one and two of EQ: namely self-analysis of your core emotions and self-management?
Goleman’s primary example of EQ is the famous 'marshmallow study’ of Mischel.  (You can see a terrific TED talk about it here.)  If there is one critical EQ skill in self-management it is the ability to delay self-gratification.
Yes, the five competencies for leaders listed by Newman are important.  A good definition of emotional intelligence is the delay between impulse and action.  It is the ability to control your emotions that distinguishes the emotionally intelligent leader.

Chris Golis

Chris Golis is a graduate of Cambridge and the London Business School. After successful careers in IT and venture capital where he was director of some 30 private and public companies, he is pursuing a third career as professional speaker and workshop leader on practical emotional intelligence.  The author of three books, Chris is the president of the Cambridge Society of NSW and an adjunct lecturer at the University of Technology Sydney. Visit his website at: www.emotionalintelligencecourse.com


Source: http://www.leadingcompany.com.au

Improving Profitability Going Green

Monday 21 May, 2012

by Tony Innes

As soon as you mention the words "go green", most CEOs usually roll their eyes and declare that it's something they would like to do but just can't afford at the moment. However this stance could be robbing organisations of opportunities to improve their bottom line and at risk of losing market share.

Here are five major areas where organisations could improve their profitability by going green and adopting a business sustainability philosophy:

1. Reduce energy costs
   
   The first step in any business sustainability strategy is to measure the green-house gas emissions attributable to the organisation's business activities. This invariably involves tracking electricity, gas and transport fuels used by the organisation over the past year (or years) and then establishing procedures to continually monitor these activities. A reliable carbon management system will then convert this information into a single carbon dioxide equivalent to determine the carbon footprint of the business.
   
   Based on the business principle that "what gets measured gets managed" this process together with a carbon reduction program will help put the spotlight on driving down energy use. An energy reduction target of at least 10% over 12 months can easily be achieved in most cases by applying a number of basic energy efficiency strategies. With energy prices continuing to rise at an alarming rate, diligent CEOs would be well advised not to ignore energy management as a priority.
   
2. Reduce production costs
   
   For organisations in the manufacturing sector, the adoption of some LEAN principles such as minimising defects, reducing waste and streamlining processes will lead to a reduction in greenhouse gas emissions as well as a reduction in production costs. Non-manufacturing firms can also benefit from the application of LEAN principles such as reducing paper use, minimising travel and buying locally produced supplies. Once again these simple action steps will reduce the carbon footprint of the business and at the same time increase profitability.
   
3. Increase your chances of winning supply tenders
   
   Many Government and Council supply tenders now require successful bidders to demonstrate evidence of how they manage their environmental impact at the very least, and at most they look for International standards certification. Large multinational organisations such as IBM and McDonalds and a number of major Banks have also taken this approach in order to be seen to manage their supply chain.
   
   As a result, if an organisation has no formal environmental policies in place, there is a growing risk that it may be overlooked when tendering for lucrative supply contracts with larger organisations. CEOs should be developing a sustainability strategy as a risk management issue and also as a tool to increase revenue.
   
4. Attract green customers
   
   Green customers were once a very small passionate sector of the consumer market, however this segment has grown rapidly in recent years and sustainability attributes are now believed to be one of the major factors driving consumer behaviour. There is no doubt that the vast majority of consumers still place a high priority on price, quality and service when making their buying options, but when all else is equal, environmental attributes can sway consumer behaviour. The success and popularity of hybrid cars is an example of environmental factors impacting on consumer behaviours.
   
   Rather than ignoring this trend, CEOs should be evaluating prospects to "green up" their existing product range or looking for opportunities to introduce new green products. However, a word of caution: be aware of the dangers of being accused of "green-washing" i.e. not being able to back up any environmental claims with reputable evidence.
   
5. Improve your brand
   
   You probably believe your organisation is a good corporate citizen, however "going green" provides an opportunity to communicate this view. This is particularly the case if your organisation adopts a wider sustainability approach by not only minimising environmental impacts, but also giving back to the local community. 
   
   This approach will further enhance your brand's reputation, making your organisation more attractive to potential clients, partners, investors, the general public and prospective employees. Embracing sustainability can also improve your "internal brand" resulting in a more engaged workforce and higher retention of good staff.

Going green and introducing a culture of sustainability across your organisation will lead to many environmental and community benefits that will in turn improve the long term viability of your business. In fact, CEOs who fail to consider sustainability options could well be putting their organisation at risk of losing a percentage of its current market share - particularly if major competitors are going down a "green path". Regardless of your stance on the current climate debate, you need to ask the question - "Can we afford NOT to go green?".



Source:ceoonline.com

Business Building - There's Only One Way

Wednesday 3 February, 2010

by Roger La Salle

Business is best defined as: “Creating wealth through profitable transactions”. Business is about profits, and indeed every department within a business should be contributing to that, even if they are so called “off-line activities” such as perhaps the training manager or the IT Department.

The Simple Arithmetic

In simplistic terms the profit and loss sheet tells the story of a business and is comprised of just three components:

1. Revenue
   
2. Costs
   
3. Profit

Reduce Costs And Reap The Benefit?

There are just two ways to increase profit. The first is to reduce costs, thus profits will naturally rise. But beware of the old adage: “You can’t cost cut your way to prosperity”. This is so true.
Many initiatives such as “Lean”, “Continuous Improvement”, “Six Sigma” and a host of other efficiency measures target the cost elements of a business. Unfortunately, although these may make you more competitive they will not make you competitive against low cost labour countries, nor in general will they increase the landscape of opportunity. Put simply, they just allow for more profitable operations from the same revenue base.

Business Building

The only way to increase your business in real terms is to focus on building the top line - the revenue - and there are only three ways that can be achieved:

1. More Sales to the same market
   
   This is easily achieved as a short term measure by the addition of sales staff, increased incentives and perhaps more advertising and promotions. But this is not a sustainable endeavour and is too easily matched by competitors. Indeed increased expenditure on sales endeavours may be seen as the reciprocal of price cutting aimed at increasing market share. In price cutting, the customer is the only winner. Furthermore this initiative is again easily matched by competitors.
   
2. New Markets for the same products
   
   Opening up new markets, perhaps exporting or entering places where products of your type have never before been sold is another way to increase revenues, but this is both expensive and can be extremely risky. Furthermore, once you have done all the work in creating a new market – guess what – you have now laid the perfect foundations for your competitors to follow. This alone is not a good sustainable strategy on which to build your business.
   
3. So what’s the third?
   
   The third and only way to continue to expand your business is to constantly provide new and improved products and services and new ways of doing business – this is innovation. The search for new ways must be sustained and endless or you can be sure business stagnation and eventual failure will be the result. Companies that fail to innovate, ultimately fail to exist.

Innovation And Opportunity Capture Is The Answer!

Most business people would acknowledge that innovation is the answer, but unfortunately many confuse innovation with the abstraction of “creativity” and have not given sufficient time to understanding the difference.
In short, innovation, when properly applied, is a tried, proven and rigorous tool for business building.
Even less understood than innovation is the formal process of “Opportunity Capture”. Indeed you can easily show your people how to embrace the exciting and systematic discipline of opportunity capture, and it’s all so easy.

Where To From Here

There can be little doubt that the third way of new and improved products and services and ways of doing business is the only way to reliably grow a business. So after the cost removal processes have been initiated, it may be time to start addressing the top line.
That’s the way to build a business.

Author Credits

Roger La Salle, often referred to as Australia "innovation guru" is the creator of the "Matrix Thinking"TM technique and is a widely sought after international speaker on, Innovation, Opportunity, and business development. Roger’s new book is now available, called "Think Again", this is about innovating your processes to harvest untouched wealth. Don't be fooled, process innovation does not apply just to manufacturing, as many may think. Indeed businesses like DHL, FedEx and UPS came into being by doing nothing more than innovating the postal service. So too Henry Ford did not invent the motor car, just innovated the way of making them. "Think Again" by Roger La Salle is available from www.matrixthinking.com 

 

 

 

Source:ceoonline.com

Identifying Wealth Creating Personalities That Grow Business Success

Monday 3 October, 2011

by Dr. E. Ted Prince

The common view is that success is due to having a great product or service. If the company creates great wealth it is because of this product or service, with some solid management thrown in for good measure. But what if an organisation's success has nothing to do with the product or service - and everything to do with the personality of the founder or key managers?

We now have new disciplines of behavioural economics and behavioural finance. Unlike traditional disciplines, these assert that much of our behaviour is based on irrational factors. Their view is that many - if not most - of our decisions are based not on rational analytical factors, but on unconscious irrational drivers of which we are not aware. The idea that most of our decisions are based on irrational and unconscious factors casts a completely new light on the factors behind the success of new companies and how wealth is created.
Findings from the new disciplines are opening up new insights into the reasons for company success and wealth creation. Some of these include:

• High intelligence, at least as measured by IQ, is probably inversely correlated to wealth creation
  
  In other words, the smarter you are, as measured by IQ, the less likely you are to create high wealth. The effect seems to kick in particularly for those with an IQ above 120.
  
• Higher degrees also seem to be inversely related to wealth creation
  
  That is, the more and the higher the degrees you hold, the less likely it is that you will create wealth. Think Bill Gates, Michael Dell and Mark Zuckerberg - all who dropped out of university.
  
• If this seems to be counterintuitive, remember that there is a difference between income and wealth. High IQ and high academic qualifications are almost certainly directly related to high income; however making a high salary is not the same as creating a new company - or creating wealth.

These new behavioural disciplines focus on our deep cognitive biases that are unconscious filters, that lead us to make bad or even stupid decisions, even when we are smart and well-informed.
One of these cognitive biases is called the overconfidence bias. This bias is due to people thinking they are smarter than they actually are, because they are senior, powerful, highly educated or very intelligent. This frequently causes them to do dumb things.
So if wealth creation isn't due to great products, high intelligence or great academic qualifications, what is it really due to? The emerging evidence demonstrates that it is due to personality, and that certain types of personalities make more money, while other types make less. There appears to be specific personality types that determine which is which. Here are some of them:

The personalities that make big money

There are four personality types that make big money. These are:

1. The visionaries
   
   These are big thinkers with expansive ways of looking at things, and are ambitious. Warning: If they are too altruistic or too self-centered they won't make the big money, since their expenses will be too high - either on themselves or on causes that they believe in.
   
2. The geeks
   
   These are extremely introverted people who, although highly intelligent, are distrustful of formal logic and analysis. They have an intuitive, not an analytical style.
   
3. Canny salespeople
   
   This personality type are extroverted, frugal and cost-sensitive. Warning: If they are too extroverted, they will focus too much on helping the customer rather than their own company, and so they pass on the implied subsidy to the customer rather than to themselves. If this is the case, they won't make money.
   
4. Self-less planners
   
   This personality type are strong and disciplined planners, who are extremely detail-oriented and do not try to over-control or allow too much democracy in their company. Warning: If they tend to control too much, they won't make a lot of money, because they will reject good ideas, and if they are too democratic, expenses tend to rise and products slow in being released, so they can't make a lot of money.

The personalities that consume a lot of capital

There are six types of personalities that consume a lot of capital or lose money. These are:

1. Conservative-self-centered
   
   These types avoid major risks, but are self-centered, so tend to spend a lot of money on themselves and their personal interests. They don't tend to generate great products with the great profit margins they need in order to afford their expensive taste.
   
2. Conservative-altruistic
   
   These personality types are still conservative, but they want to help society and others, which they do liberally. But the problem is, their natural conservatism doesn't allow them to develop the great products and profit margins they need to be able to be as charitable as they want to be. So they end up losing money.
   
3. Extroverted analytical
   
   Extroverts invest in relationships rather than products, so they tend not to develop great products and profit margins. However their highly analytical capabilities lead them to over-invest in plans and to trust ambitious schemes, which cost money. So their high expenses can never be recouped by their products or services.
   
4. Sales operational
   
   These personality types focus their energy on sales rather than product development, which means they get good growth, but low margins. Their focus on quality and operations lead to high costs, which cannot be recovered from their low margins. So they lose money.
   
5. Fast-acting control freaks
   
   This personality type make ultra-fast decisions which are often wrong, so that keeps quality and margins low. Their speed also leads to a lot of mistakes which increases expenses. But their desire to control others means they won't listen to better ideas, so the possibilities for different behaviours which would increase profit margins, but reduce costs, are not open to them. So they waste a time and money.
   
6. Fast-acting consensualists
   
   These personality types are fast decision-makers with the opposite problem. Their fast action leads to low quality and profit margins and high costs. However in their case, they like to hear everyone's ideas, which leads to lots of different strategies and directions, causing confusion and even more waste. Which leads to them losing money too.

What is the proportion of money-makers to money-losers?

There are very few people in the category that make the most money - probably around 1% of all people. So the good news here is that this article is giving you the information on what sorts of personalities make lots of money. The bad news is, that it is highly unlikely to be you or most of the people around you!
There are a lot more people in the category that loses the most money than there are big money-makers. In fact there are around 10% of all people in this category versus the 1% in the big money-making category. So you are 10 times more likely to be a big money-loser than you are a money-maker.
However I have only told you about the biggest money-winners versus the biggest money-losers. What about all money-winners versus all money-losers?
Our research shows that around 12% of all people and managers will make money or create wealth. That compares with around 50% of all people and managers who will lose money or consume capital. So you are statistically about 5 times more likely to be in the money-losing group than the money-winning group.
There is a group in the middle. These are the people who neither make money nor lose money. That's about 38% of all people and managers.

Can you change your personality?

So the obvious question becomes - can you change your personality? Of course, the answer is no - but you can change your behaviour. The issue is how hard is it to do that? And - even if you can - what do you change to in order to compensate for your own particular personality vulnerabilities?
Changing your behaviour is possible. But to do so requires a lot of mental agility. Some people have high agility, but most people don't. So even if they know what changes need to be made, they still may not have enough agility to accomplish lasting change.
It's kind of like exercise. You may know that you need to exercise - and you might even know the exercises you need to do in order to get the right muscles to be stronger. But it takes a lot of effort to keep exercising and even though a lot of people start, most soon stop. Changing behaviour is similar, but even harder.
If you have a high level of agility, you can change your behaviour, but you need to be very determined. And you need to be able to sustain that level of determination over a long period of time. In fact it must become part of your life.

Some ways to change your behaviour

Here are some techniques you can use to change your behaviour.

1. Find a partner
   
   The most common way, is to find a partner who has the characteristics you need, but don't possess. Then you can work with the partner so that they not only perform the necessary behaviours for you, but also teach you how to perform them yourself.
   
2. Set-up processes
   
   Another way is to set up processes to force you act differently to how you would otherwise. For example, if you are very salesy, and don't like doing product work, you can set up a product committee meeting every week for two hours, at which you have to attend - even if you don't really feel like it.
   
3. Learn to follow-through on what you usually avoid
   
   Another way is to develop a list of the things you need to do that you usually avoid doing, and follow-through with the list even if you don't feel like doing it. Many successful people do this. 

Choosing the right people

Of course another way to create wealth for your company is to choose people who have the right personality - even if you don't. There are countless examples of founders who realised that even if they could create a company or develop a product, they didn't have the right personality to make money.
In most cases they hired a person who did have the right personality. In some cases, the founder has dropped the role of CEO to allow the right personality to become the CEO themselves while the founder became, for example, Chairman and Chief Technology Officer. Such a move reflects a high degree of maturity and wisdom.
What this teaches us, is that the true issue is not whether or not you have the right personality to create wealth yourself. The true issue is whether you have the level of wisdom to acknowledge you might not have the right personality to create wealth. It is the maturity to realise that others may have what you do not, and you need to allow them to operate freely so that their behaviour will compensate for your own vulnerabilities.
Most people do not have the right personality to create huge amounts of money. But many people do possess the wisdom to choose people who can act to compensate for their own behaviours.
Understanding what your personality can and cannot achieve is the first step in wisdom. The second step is finding people whose personality can complement yours. This is a much surer route to success than assuming that you have the correct personality to succeed on your own without any help from others.

Author Credits

Dr. E. Ted Prince, the Founder and CEO of the Perth Leadership Institute, located in Florida in the US has also been CEO of several other companies, both public and private. He is the author of ‘The Three Financial Styles of Very Successful Leaders (McGraw-Hill, 2005) and numerous other publications in this area. He is a frequent speaker at industry conferences. He works with large corporations globally on leadership development programs and coaches senior executives and teams in the area of financial leadership. He holds positions of Visiting Professor at the University of Florida in the US in its Graduate Business School and also at the Shanghai University of Finance and Economics in China. 

 

 

 

Source: ceoonline.com