One Banker’s Mindset

According to a piece in The New York Times  a couple of weeks ago, at least one banker attempts to rationalize high pay in the financial industry with the need to fund the industry members’ personal lifestyles.

In an objective article by Steven Brill, a banker defends the need for high pay that’s paid now–with no deferral.  

“A lot of our folks have second and third homes and alimony payments and other obligations that require substantial current cash.”   

So the notion here is that compensation structures should be designed to accommodate the financial needs of the employees rather than to encourage and pay employees to act in ways that are consistent with meeting customer and shareholder requirements. This employee-comes-before-the-shareholder-and-customer mindset is dangerous in any business or industry.  But it’s no doubt the same mindset that encouraged other goofy behavior, including former Merrill CEO John Thain’s decision to spend $1.2 million on his office and a couple of conference rooms. 

It’s putting me over we and that’s dangerous in banking or any other industry.

Is “They just don’t get it” a fair observation?

Book Review: A Deliberate Pause (on entrepreneurship)

Larry Robertson, whose brain I’ve had the good fortune to pick from time to time, just published a new book, A Deliberate Pause.  The book  is far bigger than its 345 pages if you measure bigness by the quantity rich thinking and the number of ways it can be applied.

Through elaborate research and delightful storytelling, Larry Robertson has for me delicately deconstructed the concept of entrepreneurship, rebuilt it and paraded it back into my mind through many different doors. As a result, I have a much more realistic understanding of entrepreneurs, how they think, how they work, how they dream, how they persist and how they succeed.

I wish I’d had this book 30 years ago when I was starting this journey.

A not-so-small lagniappe that comes with the book is a huge inventory of Recommended Resources that Larry includes after each chapter.  My reading list for 2010!

“And Would You Like Fries With Your Order?”

The other day I got a call from a leader who wanted to do a webinar and an email and perhaps a video.  I asked him what his objectives were–what he’d like to be different as a result of the activity he was requesting.

“I just think it’s time to get something out,” he responded.

“And what do you hope to accomplish?” I asked.

“I think it’s about time to tell people things,” he said, getting somewhat impatient with my business-oriented line of questioning.  I’ve met many of these kinds of leaders over the years. They’re used to ordering up communication activities and receiving responses like, “And would you like fries with that?” 

But. I think it’s irresponsible to let people knowingly use communication management to drain value rather than add value.  So my objective is always to explain as best I can the role of good communication management, provide best practice options and then help the leader align the right solutions with the right problems.  If I think I’ve made a good case and the leader still disagrees, so be it. There’s a point at which my doctor can’t control what I eat so he can cajole all he wants.  But, in the end, it’s my decision, just as it’s the leader’s ultimate decision to follow a path I might not agree with.

In this case, I had an informed reason for pushing him. Focus groups that we’d conducted with his employees told us they were tired of leaders reporting to them about things that were inconsistent with what they were experiencing in their work-a-day world. “They make all these pronouncements but nothing happens,” employees told us.  “They don’t walk the talk.” 

I didn’t want to acquiesce to this leader because I knew if I said something like “that’s a really brilliant idea,” I’d be contributing to an existing problem and not helping him fix anything.   So I explained to himthat “event-related communication” such as a meeting, a webinar, a video needs to be consistent with communication that’s part of the “world of work.”  Meaning that what someone experiences at the event should be somewhat consistent with the experience that person has when she returns to work.  You don’t talk about becoming a world class (whatever that means) company in a video or at a webinar if you continually tolerate bureaucratic bungling and  incompetence throughout the enterprise.

I suggested an alternative approach that would align both the say communication and the do communication in such a way that the experience in the events and the world of work would become similar. In this way his credibility would be bolstered because people would see that he was making an effort to correct the say/do gap that the employees had told us about.

Keeping Your Act Together

It’s so easy in this fast-paced got-to-do-everything-now world to get off center–to lose focus of what’s important and what’s not.  A friend and client shared the following exercise with me a few years ago. I use it regularly as a personal compass.  And just as I’d use a compass on a sailboat to correct my course form time to time, I use it to make sure I’m not veering away from what’s important to me. Let me know what you think about it.  Try it for a week or so and let me hear from you.  

Create three circles.

In one circle list what you’re deeply passionate about in terms of your life’s purpose.  In the second circle list what you’re very good at doing–the talent that seems to be genetically encoded.  In the third circle list what you can make a living doing—what makes sense for you economically.

Now, where do these circles intersect?  The foundation for a great work life is represented where there is a practical intersection of the three.  What I love.  What I’m good at.  Where others think I add value.

These three circles become your compass.  Am I centered where I need to be? Do I need to move up or over?

As you think about what you do these days, how much is outside those three circles?  How much can you stop doing?