Archive for the 'Business' Category

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No good or bad deed goes unpunished

arper aston office chairs + custom conference tablephoto © 2008 Incase | more info (via: WylioLast summer, University of Washington researchers published a study demonstrating that altruistic employees can be as unpopular as selfish ones in the work place.

Subjects played a game with four phony counterparts, in which they could deposit or retrieve points (that accrued interest) from a central account shared with other players. Though researchers gave players recommendations as to how many points to it was appropriate to remove, no official point limits were put in place. One of the faux participants was assigned to hoard points, while another kept fewer points than recommended, ostensibly for the benefit of the team.

Surprisingly, the player at each extreme, not just the greedy points party, was disliked equally by control subjects. From Wired’s coverage of the study:

psychologists found that unselfish colleagues come to be resented because they “raise the bar” for what’s expected of everyone. As a result, workers feel the new standard will make everyone else look bad.

It’s a fascinating outcome because so many business books and self-help titles are geared to inspiring exceptional performance and achievement. No one wants to be average: people take personality tests and skills surveys to find  professional strengths that can be parlayed into a successful career, they eat the cost of professional development training if their companies won’t cover the price tag, and they take on student debt if a graduate degree can create the momentum needed to move up the ranks.

If we all ultimately want to be the ones who raise the bar, should we begrudge peers who do the same?

Wealth desensitizes people to the bonds between us all

In “The Rise of the New Global Elite,” The Atlantic’s Chrystia Freeland investigates the lives of the upper-echelon businesspersons  whose work means globetrotting, hobnobbing with their income-equals and a feeling of victimization (because policy makers challenge their financial success in the name of economic crisis and the growing inequality gap). Today’s uber-wealthy are earning the old fashioned way.

In 1916, the richest 1 percent of Americans received only one-fifth of their income from paid work; in 2004, that figure had risen threefold, to 60 percent.

And overall, they’re less sympathetic to those who aren’t self-made.

For the super-elite, a sense of meritocratic achievement can inspire high self-regard, and that self-regard—especially when compounded by their isolation among like-minded peers—can lead to obliviousness and indifference to the suffering of others.

And it’s an attitude that is bearing out in research as well. Because the elites spend so much time with their socioeconomic peers, they’ve lost touch with the struggles of the Average American. When you can throw money at jet shares and homes in exotic locales, money may define your key relationships rather than community interdependency.   While a group of PTA moms bond over carpool schedules and football games, the business elite are trying to out-status each other.  And it shows.

A recent study published by the Association for Psychological Science found that subjects from top education or socioeconomic status levels were less able to read the emotions of people in photos or simulated interviews than those from lower education and socioeconomic tiers.

Earlier studies have suggested that those in the lower classes, unable to simply hire others, rely more on neighbors or relatives for things like a ride to work or child care. As a result, the authors propose, they have to develop more effective social skills — ones that will engender good will.

The differences do not end there.  Living in the lap of luxury may actually impact the capacity for business leaders to act responsibly in the workplace.  A recently released Harvard Business School paper found that:

people who were made to think about luxury prior to the decision-making task have a higher tendency to endorse self-interested decisions that might potentially harm others.

In a follow up experiment, after viewing either luxury or affordable items, subjects were asked to complete a word recognition exercise involving blended pro- and anti-social words together.  While each group scored about the same on anti-social words  (like “rude, stingy, and selfish”), but the group that saw luxury items before the exercise saw fewer pro-social words (nice, giving, and helpful). Researchers concluded that the respondents prepped with luxury items in each case were primarily thinking of themselves, not others.

If these studies are applied to the business world, the self-concerned may be making decisions affecting profit and personal gain with little concern for the people that could be adversely impacted by any of the options on the table. A life of luxury could be making it harder to make decisions with broader positive impact. Considering Wall Street’s fight against tighter regulations and the banking industry’s foreclosure mills, it doesn’t take much to make the leap from the research to its real world implications.

That research puts the anecdotal indifference in Freeland’s Atlantic article in a new light.

In a recent internal debate, [a hedge fund CEO] said, one of his senior colleagues had argued that the hollowing-out of the American middle class didn’t really matter. “His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade,” the CEO recalled.

Certainly, the power of luxury over social and environmental circumstance is also being tested.   Last year, several dozen of America’s billionaire’s made  The Giving Pledge to donate “the majority of their wealth to the philanthropic causes and charitable organizations of their choice either during their lifetime or after their death.”

The question is how to make larger community considerations the standard, not the exception?

Career Musts: Mentors and Sponsors

Meeting room stencil graffitiphoto © 2006 Richard Rutter | more info (via: Wylio)Last month Catalyst’s report Mentoring: Necessary But Insufficient for Advancement discussed a key limitation on the upward mobility of women climbing the corporate ladder. For years women have been told they need mentors to make it to the top, but it’s not enough. Women need sponsorship too.

Mentorship is invaluable. Professionals learn directly from those they aspire to be like, picking up hard and soft skills necessary to entire and move up the hierarchy.

But it’s not closing the gap between male and female MBA-holders. A 2008 Catalyst survey of 4000 alumni from the best business schools around the world quantified the shortcomings of mentorship.

Alumni who had a mentor to consult before seeking out their first MBA job found better positions than those without the guidance, but outcomes for men were significantly better. Men were “93 percent more likely to be placed at mid-manger level or above than men without a mentor” versus 56 percent of women.

Wage discrepancies were especially telling “Men who had a mentor received $9,260 more in the first post-MBA job than women with a mentor,” while “mentoring made less of an impact on women’s compensation. Women without a mentor were paid only $661 more than women without a mentor.”

And as these professionals got promoted, the financial gap grew. For men, a promotion meant a 21% bump in compensation, versus a mere 2% raise for promoted women. Yes, promotions occurred at the same rate, regardless of gender,  for those with senior-level mentors. But with women and men frequently seeking mentors of the same gender and background,  a much smaller pool of top-level female executives makes it a bit more difficult for women to find the most impactful mentors.

Still, as a previous Catalyst study shows, mentoring does matter: women with mentors reported 27% higher salary growth than those without mentors, compared to 6% growth for men. But to keep the forward momentum moving, the authors of the study recommend finding corporate sponsorship.

In a WorkingMother article about this latest study, Catalyst CEO Illene H. Lang writes,

You need a sponsor—someone “on the inside.” It’s a person with clout who can advocate for you from behind closed doors, fight for you to get great opportunities, and spread the word about your achievements. “That’s perfect for her, she’s ready,” a sponsor might say, or “let’s give her a shot.”

You can advocate for your own advancement, but someone has to champion you when it’s decision time.  An executive-level advocate may be just the person to seal the deal.

Take a moment to think about where you’re at in your career.  Who have you learned the most from? Who has helped you get to where you are? Who can you reach out to for guidance and active support in fine tuning and achieving your objectives?

VOD: So you want to write a novel

A few years ago, a Jenkins Group survey found that 80 percent of Americans would like to write a book. (You can count me in too!) The reality is not nearly as glamorous as we’d like.

PS. What’s up with all of the videos, covering generalizations about various careers, that have been floating around of late?

Stepping Up with Sara Blakely, Founder of Spanx

Last night I attended Stepping Up in the City, Step Up Women’s Network’s annual member event in New York City.   The event featured Spanx, Inc. founder Sara Blakely who provided the requisite words of inspiration and the voice of experience to a crowd of up-and-coming movers-and-shakers.

Her tips:

“What you don’t know can be your greatest asset.”

Once Blakely had a successful product prototype she believed in, she faced the challenge of finding retailers to carry it.  So she looked up the buyer for Neiman Marcus in the phone book and called to ask for 15 minutes of her time.  Traditionally, new vendors present their wares at massive trade shows that buyers attend, but Blakely didn’t know that.  She got her 15 minutes and the interest of a buyer from a major upscale department store.

“Differentiate yourself…Why you?”

Ideas are a dime a dozen.   What is it about you that can take an idea to fruition better than the next guy? You can have a genius business plan, but what makes you the secret sauce?

“Don’t be afraid to fail.”

Growing up, Blakely’s dad regularly asked his kids, “What did you fail at this week?”  And if she didn’t have a good tale of failure, her father was disappointed.  As an adult she recognizes the genius reverse psychology of it all.  Her father made failure an expected part of the journey of life and the  process through which you find success.  She notes that “failure is not the outcome; failure is not trying.”

“Prayer is you speaking to God; Intuition is God speaking to you.”

Blakely referenced this insight from a friend because time and again following her gut led her to greater success.  You need to take your cues from the world around you and not second guess your instincts.

The advice is not necessarily new, but the her unique experiences gave her conclusions more credence.   All and all, a great networking event with some new contacts and food-for-thought.

Interesting profile field: Cancer

So I’m working on completing a profile on a niche job site, when I stumble across this list.

Skills: Cancer

When did “Cancer” become a sought after skill?

Driving sustainable values through the Re-Generation

Author and columnist Thomas Friedman, and businessman Dov Seidman opened this year’s Aspen Ideas Festival with a discussion of situational versus sustainable values.   Friedman and Seidman argue that over the past decade our culture has lead the business world to relatively consistently [underprice risk, privatize gains, and socialize loss].

Friedman explains that, “if the situation allows me to issue a subprime mortgage to someone to buy a home even if all I’ve asked of them is can you <huff> fog up the knife then I will do it; sustainable values will tell me I shouldn’t. Situationally, I can buy 1000 acres of the Amazon and plant soy beans. Situationally, I can do that; sustainable values would tell me I shouldn’t. . .what we’ve had in the last decade is an explosion of situational thinking and situational values in both the market and mother nature.”  Sustainable values are more driven by the long term effects of decisionmaking and making choices that lead to the best possible outcome for ALL involved.

He’s concerned that our current generation of leadership will align with what Kurt Anderson refers to as the Grasshopper Generation.  “We ate through it like hungry locusts.”

Instead, he hopes that business, government and thought leaders can drive the “Re-generation.”  Accordingly, “the single most important task of the Re-generation is bringing the concept of sustainability, sustainable values, into both the market and mother nature…If we don’t bring sustainability to the market and mother nature, then I believe the next generation will be more unfree than had our parents lost the Cold War.  Because the market and mother nature will each impose on us constraints on how we live that will be worse than had the Communists won.”

Friedman breaks down the two key forces driving human trajectory.  On the one hand, “Mother nature is just chemistry, biology and physics,” as defined by environmental consultant Rob Watson. “She always bats last, and she always bats 1000. Do not mess with mother nature.”  On the flipside, “the market is just greed and fear. Greed and fear…It’s going to do whatever the balance of greed and fear dictate at any given moment. Do not mess with the market.  You can’t spin it. You can’t sweet talk it.”

Friedman argues that the only way to wrangle these ‘the two most autistic forces on the planet (autistic in the sense of feeling no emotion whatsoever)” is through sustainable values, which have grown increasingly important because globalization and interdependency of economy has more tightly linked us to the rest of the human race more than ever before.   Being aware of the social, environmental and fiscal costs of our decisions cannot be understated in world that experiences the pressure of crisis so often.

As Dov Siedman points out, “Used to be that we had a crisis every 20 years.  We’re now so interconnected that crisis every 20 weeks, certainly every 20 months.  Lehmen, Toyota, Greece, BP.”  The moral and ethical implications of the course corrections our leaders choose in the face of these crises need to be recognized.

“If we are connected, the nature of our connections is exposed.  Interconnection leads to moral and ethical interdependence.  For the first time, we have to understand what David Hume said.  ‘The moral imagination diminishes with distance.’ Where do we go when there’s no more distance?”

The BP oil spill created instant awareness for those hidden costs of being an oil dependent society.  Can this travesty provide the collective cognitive liberation needed to begin the transition from the Grasshopper Generation to the Re-generation?  At what point does personal consumer sacrifice become less of a cost than a continuation our insatiable razing of the planet we live on?

Does tradition limit acts of philanthropy?

This winter there have been a string of reports about retailers that destroy unsold merchandise rather than donating such items to local charities.   Brand new clothes from H&M and Wal-Mart wound up slice and diced, then left at the curb for garbage pick up.  H&M quickly responded to the attention, promising it would never happen again.  Then employees of Borders Books made public the destruction of what totals up to 1 billion unsold books per year when they spoke up about what was to become of leftover books after the closing of 200 Walden Bookstores.  (Covers are torn off and returned to the publisher for a refund, while the rest of the tomes are tossed in the trash.  Roughly twenty to forty percent of published books wind up dumpstered every year as a standard business practice of publishing houses dating back to the 1930s.)

It’s not as though there is a shortage of alternate disposal methods that could benefit society.  Last month, the NYTimes covered the New York Clothing bank, which distributes $10 million worth of clothing donated by retailers and designers each year to over 80,00o needy individuals.  Feeding America supplies food banks with grocery overstock. DonorsChoose is one of many nonprofits that could help book retailers and publishers match their unsold stock with underfunded school districts and classrooms, like Ms. P’s, which needs 64 copies of Tony Morrison’s The Bluest Eye.

Doesn’t it make you wonder how many other businesses are letting perfectly good products go to waste? Excess inventory should never wind up in a dumpster when so many families and children are in need.  Thirty-nine percent of children (29 million) live in poverty in the United States and 1 in 8 Americans reach out to food banks to try to keep their families fed.

And you have to wonder how many businesses are changing the protocols for end of season leftovers or irregular products because no one at the company has even decided to question the status quo?   It’s just easier to keep on keeping on the way things have always been than to reconsider the current model and possibly create more work in rendering a more equitable and efficient system.

Thus I direct you to a great story about five monkeys;  traditions (workplace and otherwise) don’t always serve a meaningful purpose.  Sometimes just asking “why” will help move you in a better direction.

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Making shifts in your spending

It seems like the standard advice for considering your finances is to track every penny for a month to see where the money is going.  For me, I already keep a spreadsheet that roughly tracks all the money coming in and out, so I’m readily aware of what my spending issues are.   That’s why I like this advice from Aaron Patzer, Founder and CEO of Mint.com.   He suggests setting a budget in those key spending categories since that’s where you need the most help.

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Focusing on your strengths

desk

photo by moriza

Last week, Rachel Maddow delivered the keynote address at the Invent Your Future Conference For Women.  On Tuesday, I stumbled across a blogger who attended the event and shared her takeaways:

Rachel works very hard preparing for her show by reading volumes and volumes of material. She spends 10-11 hours a day getting ready to bring us a great show that over 1.9 million people watch. She also said that it is critically important to only do what you are BEST at and to be true to yourself!

If you watch Maddow’s show, you know she’s well read on the topics, so the first conclusion comes as no surprise.  Her deep dig into the background material allows her to have very informed discussions with guests, unlike hosts such as Joe Scarborough, making her show engaging and enjoyable to watch.

With regard to the second conclusion, doesn’t it make sense to focus on your strengths?  I used to work for a company that had an arbitrary list of accomplishments that must be achieved before a promotion was possible.  Leadership explained they wouldn’t hold you back indefinitely for not doing everything on the list, but it was made clear that crossing those items off the list made a big difference when it came to speed of promotion.   That system never quite jived with me.

When hired at a company, you sign on for a particular job description.  As you settle in and hit competency, it starts to become obvious where you excel and where you struggle.  Since a company is typically focused on a singular bottom line: money, isn’t it a waste of time to try to make every employee perfectly balanced and well-rounded?

Once it becomes clear to you and your colleagues what your company-specific assets are, why wouldn’t you be encouraged to gravitate towards full-time use of those skill sets?  And wouldn’t you be a more productive employee if you were working on projects that you enjoyed, rather than dreaded?

A 2006 study by UPenn grad student Gordon Parry cites a 2005 Towers Perrin study that found:

only 14% of employees worldwide indicate that they are highly engaged.  Roughly a quarter are genuinely disengaged, and the remaining “massive middle,” 62% are only moderately engaged in work [or willing] . . . “Willing employees get the job done as required.  Engaged employees redefine the job to improve efficiency, effectiveness, and results.

Engagement makes for better employees.

Workplaces psychologists have previously identified three types of work: jobs (taken primarily for the financial incentive), careers (focused on the perks attained through promotions and increased power), and callings (with the work being more inspirational than the payment and benefits of the role).

Positive psychologist Seligman suggests the workplace satisfaction can be maximized by trying to make strengths the focus of individual’s work responsibilities.

His “recipe” is as follows: 1) identify your signature strengths, 2) choose work that lets you use them every day, 3) re-craft your present work to use your signature strengths more, and 4) make room for employees to re-craft their work

So Parry put this recipe into play using a team of corporate human resources professionals from the same company.  Half of the participants increased their job satisfaction and increasingly identified with “careers” and “callings.”

While it seems like a truly American habit to want to be good at all we do at the work place, what with the historic American penchant for rugged individualism, it seems you and your employer might be better off if you focused on your assets and left your weaknesses on someone else’s task list.  You’ll enjoy your job more, and your employer will get your best efforts.

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