The habits of highly successful bosses.

Some things you may not think about when you think of a great manager:

Great bosses get the small picture.

Great bosses never forget that employees experience things locally, from the trenches of IT or accounting or sales. In words and action, great bosses take account of those perspectives.

Great bosses make people feel smart.

Great bosses, when presented in a meeting or in private conversation with some enthusiastic but misguided bit of twaddle, listen carefully for the tiniest germ of potential. Seizing that germ, they talk it through--teasing it, tweezing it, rearranging it--until they produce something workable and smart.

Great bosses know who does what.

There is no i in team, but there is an i in underappreciated, which is how people feel when their individual contributions disappear into the common collaborative slurry

Great bosses know when they're not wanted.

Good bosses delegate. Great ones don't hang around in the background monitoring how that delegation is going.

Great bosses remember.

Employees' hobbies. Their families' names. Who plays what position on the company softball team. Who is terrified of flying. Who has expressed interest in a leadership role. And employees, in return, remember them.

Income-Inequality Gap Widens

The gap between rich and poor is growing.

• Widening Gap: The wealthiest Americans' share of national income has hit a postwar record, surpassing the highs reached in the 1990s bull market, and highlighting the divergence of economic fortunes blamed for fueling anxiety among American workers.

• Behind the Numbers: Scholars attribute rising inequality to several factors, including technological change that favors those with more skills, and globalization and advances in communications that enlarge the rewards available to "superstar" performers whether in business, sports or entertainment.

Changing the tax structure to improve this situation is not enough. Pay attention to this as the Democrats discuss it in the coming election.

WHAT IS GOING ON??? Getting sued for music piracy.

WHAT IS GOING ON? A woman just got sued by the The Recording Industry Association of America, representing six record labels, for music sharing and guess what? She lost. How much was the verdict for her illegally shared 24 songs over file-sharing site Kazaa? $220,000.

I don't know how to respond to this. A service comes out that allows you to share music but actually doing it is illegal. I know this is like the pipe and grass (marijuana) argument but come on! Millions of people did/do this. Are all going to be procesecuted? This just defies common sense. Unfortunately much of what goes on in the legal and political world around us doesn't either.

NOTE: Many of the 30,000 people sued by the RIAA have settled, for an average of $4,000.

Use your time wisely; by slacking off

A recent survey found that the typical American worker wastes slightly more than two hours a day, not including lunch and scheduled breaks. The No. 1 time-wasting activity is surfing the Internet and sending personal e-mails, followed by socializing with co-workers, conducting personal business and just plain "spacing out." All of this loafing is supposedly costing employers $759 billion a year in lost productivity. But guess what, American workers, it turns out, are wasting less time than they did just a couple of years ago - 19% less. And the U.N.'s International Labor Organization recently issued a report that found that the U.S. leads the world in worker productivity - and by a wide margin.

So here is the paradox. "We are a nation of doers, hard workers, yet we are also a nation of ideas, big ideas." It has long been known that idea generation requires idleness, but idleness makes us uncomfortable. These two aspects of the American personality constantly rub against each other. This leads our minds to constantly shift from guilt (for using work time on personal matters) to resentment (for having to work so-damn-much) to boredom. This cycle causes us to misuse a lot of energy when in fact we can accept that there is a healthy balance between work, idleness (and whatever else you do on the job) that each of us can find for ourselves if we look for it.

Real Estate Reset

I know that most readers are aware that we are in a housing downturn after years of record setting home sales. Soon we will see how far this downturn will go.

Many, many people who purchased homes over the past 6 years did so through the use of an Adjustable Rate Mortgage (ARM). As I'm sure you know, the interest rates on ARMs are based on the established interest rates at the times meaning they fluctuate. Well, now many of these loans are set to reset to much higher interest rates in the coming months; more than 2 million of them to be more precise. This means that the interest rates on these loans could jump by 35% or more, undoubtedly putting far more financial strain on those who have them. It will be interesting to see what happens...

Why discuss this on this blog? Because people in the US, especially those on the coasts and large cities appear to be short sited. They take ARMs on homes that are beyond their means and give little thought to the consequences 5 or 10 years down the line. This issue does not just concern matters of money. Americans consistently look for quick fixes to lifetime problems. Whether it's liposuction, or get rich quick schemes, we look for ways to avoid hard work and perseverance. The result is a rocky, up and down cycle that leaves us with less than we began with.

I'm convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.
Steve Jobs(1955 - ), Interview, 1995

The Tattoo Issue

"Nearly 50% of Americans between 21 and 32 have at least one tattoo or a piercing other than in an ear, according to a 2006 study by the University of Chicago and Northwestern University. Men and women alike say their tattoos make them feel sexy and rebellious, a 2003 Harris Poll found, while the unadorned of both genders see body art as unsightly and think those with tattoos and piercings are less intelligent and less attractive."

As I mentioned in my previous entry about emergence of Generation X & Y groups into working society, things are changing whether employers and institutions like it or not. Tattoos are becoming more and more popular especially with those who are thought to be creative or expressive types. Yet at the same time employers with "old school" values still find them unprofessional and even offensive.

It's interesting what people choose to judge as bad or no big deal. Simply think about what a tattoo is: A piece of art on someones body. Yet the stereotype that it carries is one that would be wholly unacceptable if it were geared toward something like race, gender or sexual preference. As the article explains, some of the world's largest organizations still have rules prohibit ting the employment of individuals who cannot cover all their tattoos. That is harsh, but I understand why they do it. They are scared that they will loose the business of their conservative customers, who have little else to do with there time then to be upset by someone elses appearance.

Now I know that tat's historically have certain affiliations with those from undesirous groups but when the statistics show that 50% of 21 to 32 year olds have at least one tattoo or a piercing other than in an ear, then perceptions have to change. It's now like all these people of gangsta's, or ex-cons.

Email: "Like bleeding to death from a thousand pinpricks"

http://www.slate.com/id/2165452/nav/tap1/

A great article about the role email plays in modern work and life. Is it true that email "eats away at people's time, a minute at a time... [like] bleeding to death from a thousand pinpricks?"

Or is the following description a little more accurate?

"Many people who are addicted to e-mail are more correctly described as addicted to work. Lots of e-mail makes you feel important. E-mail addicts (like me) fear the empty inbox and, strangely, the potential freedom that e-mail provides. A BlackBerry can make you feel accountable at night, but it also lets you say, play golf, while still monitoring any situation that might come up. When business is conducted through e-mail, it shifts the responsibility of actually working off of the physical setting of the office and back onto you. That lack of structure, or the need to provide your own structure, can be uncomfortable. Still, you often find confident people who are immune to e-mail addiction. They just don't understand what the fuss is about. They check e-mail when they need to; they turn it off when they've got stuff to do. It's a tool that serves them. "

Set yourself some boundaries and follow them. Soon email will serve you as it serves many others.

Generation X & Y - What the Future Holds...

I recently attended a conference focused on the unique generational shift that is currently going on. The Baby Boomers (born 1944-1962) are getting old while Generation X'rs (born 1963-1981) are taking their roles as adults, and Generation Y's (born after 1981) are entering the workforce. What does this all mean??? Society is going to change quite a bit.

Interestingly generation X is one of the smallest generations since The Depression, but is sandwiched between two of histories largest generations, the Baby Boomers and Generation Y. This is why you've heard that organizations are very concerned about the aftermath of the Baby Boomer retirement. The fear is that there will be a shortage of quality employees to not only take the roles left empty by exiting Baby Boomers but also the question of who will manage the large group of younger generation Y employees.

This put's Generation X'rs in a very unique position as the intermediaries between two very different groups that have and will shape the world as we know it. How are these groups different? To help you with this imagine each of the following people as representatives to their respective generations (I didn't come up with these):

Baby Boomers - Bill Gates

Generation X - (None, that's why we are signified by the X)

Generation Y - Paris Hilton

Now, you may look at these representations and come to the simplified conclusion that I think those from the Y generation are idiots and that our society is going downhill, but you'd be wrong. Many people actually believe this point of view to be true and justify their concerns with evidence about how Y's are unwilling to work hard, can't focus, and are clueless when it comes to social interaction (e.g. showing respect for their elders). But this is only a shallow view of what this group brings to the table.

The Bad Background: Y's were raised by wealthy, protective, and overworked Baby Boomer parents taking excellent care of them (or at least hiring someone to do so). As a result they have a great feeling of entitlement and little discipline. They don't believe in sacrificing today for happiness tomorrow. They want to be happy today and tomorrow. To go along with this is a deeply ingrained feeling of equality. In there eye's people are people; things like age are not significant or justifications for special treatment (remember these are the kids having temper tantrums in the market, yelling at their parents because they tried to stop them from getting Power Ranger cereal). Again this all sounds negative, but look a bit deeper and you may see things a bit differently.

• When studying spiritual literature one is constantly reminded of the idea of focusing on the moment instead of dwelling on the past or anticipating the unknown of the future. Y's do this naturally.


• Feelings of entitlement combined with equality create a high standard for all to live up to. What I mean is, that someone who feels entitled has high expectations for themselves irrespective of the work they do or sacrifices they make. When this is combined with broadly supported feelings of equality with no thought of age, race, and gender then these high standards are expected for all.

Now, these characteristics don't appear to be as bad as they did before, do they?. When you add to this that Y's are resourceful, creative and fully integrated into the systems that Boomers still can't fully comprehend, and X's barely have a handle on, you find a group that is truly unique and definitely not inferior. That is except in one area: Focus.

It still waits to be seen whether Y's will have problems focusing on anything for long enough to really make any sizable impact. This is where the information overload, lack of discipline and constant connectivity may have hurt our newest generation. Will they be able to focus there energy, attention, etc. for long enough to meaningfully improve the world? I don't have the answer but I'll leave you with these quotes about managing Y's:

"Generation Y doesn't care about how much you know, until they know how much you care."

"Generation Y needs leaders not managers...Managers do things right; leaders do the right thing."

The Value of a Mexican

The title sounds like a bad joke but Slate.com took it seriously and did the math. There's this idea out there that "Americans should care more about their countrymen than about a bunch of foreigners." Well, let's just assume this is true. Then the question becomes how much more$?$

"Surely there's some limit; virtually nobody thinks, for example, that Americans should be allowed to hunt Mexicans for sport. So, exactly how much are you willing to hurt a foreigner to help an American? Is a foreigner's well-being worth three-quarters as much as an American's, or half as much, or one-quarter as much?"

"Virtually all economists agree that immigration makes us richer, not poorer. Every immigrant is a potential trading partner, a potential employee, and a potential customer. He bids down wages, but that's a two-edged sword: It's bad for his fellow workers, but it's good for employers and good for consumers."

After doing some pretty daunting economic analysis looking at the hourly wage benefit to a immigrant worker and loss to an American worker the bottom line is:

The immigrant gains $7 an hour, which as "actually worth about five times the American's $3 loss. In other words, to justify keeping the immigrant out, you'd have to say he's worth less than one-fifth of an American citizen."

The Newly Rich Cash-Out of Love

"There is no question that a huge infusion of wealth to relatively young people has a disastrous effect on the marriage's stability," says Bern Clare, a Manhattan divorce lawyer.

In the world of hedge fund managers one can become an overnight multi-multi-millionaire. And with this new wealth come drama. High dollar value divorces are becoming more and more common among fund managers and with them, excessive demands. Just take a look at a few:

- "A case in which the dependant spouse insisted that she needed $800,000 a month in child support payments, even though she already had an income of $7 million a year. "The judge listened calmly and found she had plenty to maintain herself. Then he ordered $100,000" a month."

- "In one recent divorce, the entire settlement was hung up on the issue of whether the former wife would be given $500,000 or $750,000 a year to cover first-class air travel."

The reason why I decided to discuss this article is because I believe wealth interferes with many parts of our lives. Wouldn't you think that wealth would improve a marriage? Eliminating so many of the worries most of us have. But this is obviously not the case, and there are countless other areas where wealth damages our lives whether it be parenting, to our own internal happiness. As Dr. Richard Easterlin, one of the world's foremost economists explained: As a person’s income goes up, he or she doesn’t grow any happier in a lasting sense.

The point is wealth can be a vice without the proper foundation... A foundation where one understands that money is not a replacement for love, or a pre-requisite for happiness.

Price is Right

http://www.latimes.com/news/opinion/la-oe-kurson6jun06,0,6477820.story?coll=la-opinion-rightrail

According to Ken Kurson of the Los Angeles Times nobody "give(s) much thought to Pierre de Fermat or Blaise Pascal," but thanks to Bob Barker, the probability theory developed by those "brilliant mathematicians from centuries past" has been seamlessly transmitted "into millions of homes for 35 years." Barker, who recently taped his last episode of The Price is Right, educated the public using "daily lesson(s) in the principles of behavioral finance." Besides being a staple of American "comfort entertainment," the game show was essential viewing if "you wanted to know how to exploit -- or get trapped by -- market inefficiencies and the often irrational behavior of competitors." And by combining "real prices" for real products with hot women, continuously fresh contestants, and the ever-youthful Prof. Barker, lessons were"made... as painless as possible."

Tips on Aspiring Creativity

http://www.gapingvoid.com/Moveable_Type/archives/000932.html

I don't normally link to blogs, but this is good, real good. There is a detailed explanation of each of these tips if you go to the link.

So you want to be more creative, in art, in business, whatever. Here are some tips that have worked for me over the years:
1. Ignore everybody.
2. The idea doesn't have to be big. It just has to change the world.
3. Put the hours in.
4. If your biz plan depends on you suddenly being "discovered" by some big shot, your plan will probably fail.
5. You are responsible for your own experience.
6. Everyone is born creative; everyone is given a box of crayons in kindergarten.
7. Keep your day job.
8. Companies that squelch creativity can no longer compete with companies that champion creativity.
9. Everybody has their own private Mount Everest they were put on this earth to climb.
10. The more talented somebody is, the less they need the props.
11. Don't try to stand out from the crowd; avoid crowds altogether.
12. If you accept the pain, it cannot hurt you.
13. Never compare your inside with somebody else's outside.
14. Dying young is overrated.
15. The most important thing a creative person can learn professionally is where to draw the red line that separates what you are willing to do, and what you are not.
16. The world is changing.
17. Merit can be bought. Passion can't.
18. Avoid the Watercooler Gang.
19. Sing in your own voice.
20. The choice of media is irrelevant.
21. Selling out is harder than it looks.
22. Nobody cares. Do it for yourself.
23. Worrying about "Commercial vs. Artistic" is a complete waste of time.
24. Don�t worry about finding inspiration. It comes eventually.
25. You have to find your own schtick.
26. Write from the heart.
27. The best way to get approval is not to need it.
28. Power is never given. Power is taken.
29. Whatever choice you make, The Devil gets his due eventually.
30. The hardest part of being creative is getting used to it.
31. Remain frugal.

Who's Rich? Not the Smartest...

"Intelligence really isn't one of the key driving forces. In fact, people at the middle of the smarts spectrum have the fewest money problems."Ohio State economics professor Jay Zagorsky suggests different factors: "Staying married, not getting divorced, thinking about savings."

In Zagorsky's study of 7,500 middle-aged Americans, the smarter you are, the more you tend to earn. For each IQ point you have above someone else's IQ, you'll earn between $200 and $600 more. You would reasonably assume, then, that smarter people would end up wealthier. But that was not suggested by the study. Instead, people with higher IQs and incomes tended to spend more, maxing out credit cards and paying bills late. At the end of the day, those with lower IQs often had a greater net worth.

Rich don't save either

HSBC reports that people with more than $250,000 in household income, who constitute the top 1.5% of U.S. households, report facing many obstacles when it comes to saving. The #1 answer for what prevents them from saving more: the need to pay everyday bills. Some interesting facts:

• The savings rate in the United States dipped to zero in 2005 and has even fallen into negative territory, the first time since the Great Depression.
• 49% of respondents with at least $250,000 in income aren't saving more because they simply "want some spending money."

"Savings can be a challenge at any stage of your life." "Regardless of your income, financial status, or age, saving does require a level of control and awareness."

"It seems that awareness dims, however, with the more money you earn. More people who earn between $50,000 and $100,000 save consistently than people who earn between $200,000 and $250,000 per year, according to HSBC."

Springwise.com: Your Daily Fix of Entrepreneurial Ideas

This blog it awesome. It posts new and interesting business ideas. Everything from high-end camping to a service that allows you to send them an email that it then prints and sends via snail mail for you. Not to mention virtual travel guides, gorilla bakeries, and pizza vending machines. You can even be a "SpringSpotter" to help report new ideas and win prizes. Enjoy!

Darfur, The NBA, Lebron James, China, and One Man's Attempt to Make a Difference.

tp://sportsillustrated.cnn.com/2007/writers/aditi_kinkhabwala/05/17/newble.darfar/index.html

"It all started on a road trip, with a copy of USA Today and an article on the crisis in Darfur, the western region of Sudan where ethnic cleansing might not adequately describe the horror. Since early in 2003, the Sudanese military and its proxy militia, the Janjaweed, have been raping and dismembering and just plain slaughtering the land-tilling, non-Arab villagers. Newble (a Player on the Cleavland Cavaliers) read that some 500,000 Sudanese are dead and another 2.5 million are homeless, and he rubbed his eyes."

"Then he logged a few hours on the Internet and found out that China buys two-thirds of Sudan's oil, and that the proceeds from that fund weapons for the Janjaweed. He read that China has invested a billion dollars a year, for the last 10 years, in Sudan, and that just under 50 percent of Sudan's exports land on China's shores. Newble learned that every attempt the U.N. has made to send civilian-protecting peacekeepers into the region has been vetoed ... by the 2008 Summer Olympic-hosting Chinese."

Newble felt that had to do something so he got in touch with Eric Reeves, an English professor at Smith College who's the preeminent expert in the U.S. on the situation in Sudan. They decided the best thing to do was to send a letter to the Chinese government which states: "We, as basketball players in the NBA and as potential athletes in the 2008 Summer Olympic Games in Beijing, cannot look on with indifference to the massive human suffering and destruction that continue in the Darfur region of Sudan." He plans to get this letter signed by as many athletes as he can to help pressure China into taking action. That's why his agent, Steve Kauffman, met with representatives of the NFL's and MLB's players' associations and why he hopes Muhammad Ali signs on too.

Newble first approached his teammates and they all signed it. Except for two. Damon Jones, who has a deal with a Chinese shoe company, asked for a little more time to see if he'd be violating that contract. And LeBron James. He says he needs more 'information.'"

ROWE: Results-Only Work Environment

"Work is no longer a place where you go, but something you do."

"The endeavor, called ROWE, for 'results-only work environment,' seeks to demolish decades-old business dogma that equates physical presence with productivity. The goal at Best Buy is to judge performance on output instead of hours. Hence workers pulling into the company's amenity-packed headquarters at 2 p.m. aren't considered late. Nor are those pulling out at 2 p.m. seen as leaving early. There are no schedules. No mandatory meetings. No impression-management hustles. Work is no longer a place where you go, but something you do. It's O.K. to take conference calls while you hunt, collaborate from your lakeside cabin, or log on after dinner so you can spend the afternoon with your kid. The official policy for this post-face-time, location-agnostic way of working is that people are free to work wherever they want, whenever they want, as long as they get their work done."

Created for corporate employees at Best Buy, those who worked in ROWEs were found to be more productive, and happier. To me this just makes sense and is long overdue. I really hope more corporations see the light!!!

The FDA Gets More Power; But We Don't Save Money

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/09/AR2007050902383.html

"In a study last year, the Institute of Medicine concluded that the federal system for approving and regulating drugs is in serious disrepair. That report, requested by the FDA, followed two years of controversy over drug safety after the 2004 withdrawal of the arthritis drug Vioxx because of the risk of heart attack."

As a result the FDA was now provided with new powers and a more intense role in monitoring drug safety. At the same time, the legalization of importing cheaper drugs from other countries was not included. As the one dissenting senator put it:

"Safe drugs are obviously important, and there are a lot of good provisions in this bill," Sanders said. "But a safe drug doesn't mean anything to somebody who can't afford it."

The Black Swan, The Economy, Predictions, and Random Events

http://www.marketwatch.com/news/story/2007-recession-blindside-happy-talk-economists/story.aspx?guid=%7B711FF308%2D1A2E%2D41D3%2D87BE%2D4DFD5218A833%7D&dist=TNMostRead

A fantastic article that you must read... But in short: Breaking news is useless. This makes Journalists and Economists who propagate this news of little value for they cannot predict much based on the information they have today. What does affect the world in meaningful ways are random, practically unexpected events (e.g. 9/11, the creation of Google, etc.). Currently most news makers and economists say the economy is strong and a recession is out of the question, but could a coming recession be one of these seemingly unexpected events???

Female Finances

http://www.kiplinger.com/features/archives/2007/04/women.html

"What sets women apart from men is the different situations they will face during their lives, each with financial implications. They have longer life spans and more checkered work careers, moving in and out of the paid labor force more frequently. When they marry, they often face a special kind of financial dependency that's not always unwelcome but can work to their disadvantage and may be unsettling. They often bear the main responsibility for rearing children with sound financial values, and they take on the added financial burden of caring for aging family members. Then, after years of having their finances intertwined with others', they face the prospect of years on their own."