So it has been a rough week - economically speaking, for the U.S markets. Interesting that we saw the government respond with the bail out yet another company; AIG. I couldn't help thinking that although many customers of AIG are probably comforted by the bail out - would I want to do business or invest with a company that allowed itself to end up in this position? In fact would I want to do business with any of the companies that have required such massive help? What does their ending up there say about them?
A CEO that I know - when facing some financial hardships said, "we will just sell our way out of it" - what a concept, imagine if AIG, Bear Sterns, Fannie Mae, Freddie Mac and Lehman Brothers had that same philosophy, what would have been different?
Well first of all they would have been watching the sales numbers, the accuracy of forecast, inspecting what they expected and holding people accountable. If the numbers couldn't support the losses then they would have been driving, mentoring, motivating and coaching their people to counter act the problems - yes they would have "sold their way out of it".
Instead - we have what we saw this week. If in my years as a sales manager I had even for one month done as poorly as these CEO's did for months at a time I probably would have been asked to leave - or before that happened my own pride would have caused me to quit!
Saturday, September 20, 2008
Tuesday, September 16, 2008
Wall Street Blues or Wall Street Bull?
The news yesterday included some troubling facts about the economy - 3 formidable "giants" had been bought out, bankrupted or made people aware of some major struggles they were facing. The Dow and the NASDAQ reflected this by having one of the worst days in decades. As I watch the news this morning - the world is following suite with awful trading and horrible numbers. Do you think we are in a down economy?
When you look at financial "crashes" in the past it becomes clear that they are usually a result of investors putting too much faith in one segment. That was true in the late 20's when people jumped off buildings, it was true when the Irish economy crashed and the potato famine followed and it was true when these companies decided to jump on the real estate band wagon.
Any Lessons? Well I am not an economist but one thing I notice is how - to quote Mike Douglas in the movie Wall Street - there is "no skin in the game". Right up to the final hour everyone still receives their fat salaries and the investors and even the public are left holding the bag. In my line of work if I know my numbers are not where I want them I work harder and if I don't hit them I make less - why should that be any different on Wall Street. I don't get it.
When you look at financial "crashes" in the past it becomes clear that they are usually a result of investors putting too much faith in one segment. That was true in the late 20's when people jumped off buildings, it was true when the Irish economy crashed and the potato famine followed and it was true when these companies decided to jump on the real estate band wagon.
Any Lessons? Well I am not an economist but one thing I notice is how - to quote Mike Douglas in the movie Wall Street - there is "no skin in the game". Right up to the final hour everyone still receives their fat salaries and the investors and even the public are left holding the bag. In my line of work if I know my numbers are not where I want them I work harder and if I don't hit them I make less - why should that be any different on Wall Street. I don't get it.
Friday, September 12, 2008
Experience - How Important?
There is so much talk about "experience" during these elections that I thought we should take a look back at the importance of experience. Abraham Lincoln was one of the most inexperienced Presidents that ever governed the United States - and he did so during one of the most tumultuous times in its history. Now, in retrospect, people think of him as one of the greatest leaders and his vision sits cast in stone at the Lincoln Memorial.
When the colonies were forming the United States King George and his cronies laughed about their ability to form and manage a country - why? No Experience in Governing. The constitution and Declaration of independence clearly reflect that "young and inexperienced spirit" in their language and tone. Experience is not listed as a qualification to be President.
So in light of the somewhat amateur political bent and history, why this obsession with experience. Because it makes people feel safe, comfortable and as though they know what to expect? All reasons that history has shown to be false to some degree.
The business world is no different - Executive Bios are full of "history" and "experience". When companies search for help they often limit themselves and tie their peoples hands by requiring "experience within our industry". This is especially critical when you look to hire sales people because often "sales ability" cannot be taught but the "industry lingo and processes" can be.
Instead of focusing on Experience- most companies would do well to look at Character, Natural Ability and Weaknesses as they make a hiring decision.
Experience is often a synonym for "baggage" and it comes at a heavy price financially. Imagine you are often paying more to get that - does that make you feel comfortable and safe?
When the colonies were forming the United States King George and his cronies laughed about their ability to form and manage a country - why? No Experience in Governing. The constitution and Declaration of independence clearly reflect that "young and inexperienced spirit" in their language and tone. Experience is not listed as a qualification to be President.
So in light of the somewhat amateur political bent and history, why this obsession with experience. Because it makes people feel safe, comfortable and as though they know what to expect? All reasons that history has shown to be false to some degree.
The business world is no different - Executive Bios are full of "history" and "experience". When companies search for help they often limit themselves and tie their peoples hands by requiring "experience within our industry". This is especially critical when you look to hire sales people because often "sales ability" cannot be taught but the "industry lingo and processes" can be.
Instead of focusing on Experience- most companies would do well to look at Character, Natural Ability and Weaknesses as they make a hiring decision.
Experience is often a synonym for "baggage" and it comes at a heavy price financially. Imagine you are often paying more to get that - does that make you feel comfortable and safe?
Subscribe to:
Posts (Atom)
