Saturday, December 31, 2011

How to Spot a Liar: A New Year’s Resolution for Business - CNBC.com

Published: Thursday, 29 Dec 2011
12:31 PM ET Text Size By: Cindy Perman

CNBC.com Staff Writer

Excerpts:

Let's face it, we've been lied to a LOT in the past few years

How often are we lied to? Over a one-week period, researchers detected lies in 37 percent of phone calls, 27 percent of face-to-face meetings, 21 percent of IM chats and 14 percent of emails. So, take a good look at your inbox — chances are, there’s a lie in there before you even reach for the mouse to scroll down.

... there are a variety of cues you can get from a person who is being deceptive, from their facial expressions and body language to the actual language they choose.

The average person is about 54 percent accurate in reading people, but with the right training you can get up to 90 percent accuracy, Meyer said.

“Learning how to read people — having that extra antenna, that extra filter — can help you in negotiations, hiring and building a team,” Meyer said.

“It can be helpful when making hiring decisions, staffing decisions, mergers, business deals and even investing in a company. Because you're not just investing in the company, you're investing in the people who run the company.

The first step to spotting a liar, Meyer said, is to do what’s called “baselining” in law enforcement. Analyze the person’s normal behavior patterns — everything from their blink rate, to their fidgeting patterns, how fast they talk, their vocal tone, their laugh, their posture, what they do with their hands and feet during meetings, etc.

“You need to understand someone’s normal behavior so you have a reference point,” Meyer said. “
Some of the tip-off behaviors of someone being deceptive are: fiddling with what are called “barrier objects” between them and the person they’re talking to, slumping or shifting their anchor points, looking down, biting their lip or doing a grooming gesture like brushing lint off their shoulder.

However, one of these behaviors alone doesn’t signal deception —
What’s telling is when you see the person doing more than one of these typical deceptive behaviors, breaking with their normal patterns.

The truth is, we all do some of these behaviors every day, whether it’s nervously tapping our foot during a meeting or looking down.

“They don’t mean anything unless you see them in clusters,” Meyer explained.

... let’s debunk a few myths.

Myth No. 1: Liars fidget. In fact, Meyer said, many will actually freeze their upper body — they’re concentrating.

Myth No. 2: A liar won’t look you in the eye. In fact, Meyer said, a liar will often look you in the eye TOO much — they’re overcompensating for the lie. The average person telling the truth only looks you in the eye about 60 percent of the time.

Myth No. 3: A liar is evasive. In fact, many liars provide way too many details — again, overcompensating.
Still, it's important to baseline a person — find out what their normal patterns are before you say, "Ah ha! I gotcha! You looked me in the eye for 30 seconds straight."

Lie-detecting skills are not only helpful when it comes to business meetings but in investing as well.

Researchers have found there is a specific language of lying that people use that you can tell by listening to an earnings conference call — or just reading the transcript.

Researchers at Stanford University analyzed 30,000 earnings call transcripts and found language patterns were often better predictors of negative earnings surprises than traditional accounting methods!

When being deceptive on an earnings call, the person typically uses a lot of what they call “qualifying language,” things like — “Well, to the best of my knowledge,” “As far as I know” or “Everyone agrees…” Or they use distancing language — not “I” or “we” but “The company” and “the team.”

Again, it’s not just a one-off reference — it’s four or five clusters of these deceptive indicators. Another indicator is when the person uses inflated language consistently. It was a “great” quarter not a “good” one, or it was an “incredible” quarter not just a “solid” one.

The Stanford researchers analyzed that famous Lehman Brothers earnings call from 2008 just months before the firm’s spectacular collapse.

Then-CFO Erin Callan used the word “strong” 24 times, “great” 14 times, “challenging” six times, “incredibly” eight times and “tough” just one time.

No one is saying Callan lied but what researchers suggest is the "strong" language that preceded the firm's collapse was a better indicator of what was to come than the firm's actual accounting. So it never hurts to listen to the language.
“These calls are supposed to be predictive — you need to learn how to sift through them and understand the language,” Meyer explained. “There is a science to deception.”

Meyer asked a few lie-detection experts who are trained in reading facial micro expressions and law-enforcement techniques of interrogation to take a look at a Herman Cain video clip where the former Republican presidential candidate accuses five women of lying about having sexual relations with him.

The experts said there were behavioral patterns they might consider deceptive, including what they call "duping delight," which is smiling while denying — an indication the person is pleased with “having gotten away with it.”

Here, too, no one is accusing Cain of lying, but Meyer said if she were interrogating him and he exhibited these traits, it would be a reason to ask more questions.

And, it’s not just waiting to trip the person up with one of these behaviors, Meyer said. When asking questions you can also ask them in a way that might trigger one of these behaviors.

You never ask “Why?”

Instead, be more specific, something like, “What’s the pettiest thing that bothers you about this situation?”

“They always give you something that isn’t petty,” she said. “You might have asked, ‘What’s the pettiest thing that bothered you about the plant closure?’ And they tell you something pretty informative like, ‘The second in command was never around.’”

“That’s pretty informative,” she said.

And, the best visual clues that someone is lying come in the three to five seconds after you ask a hard question.

Meyer said people being deceptive often sigh deeply or you'll see a slump in their posture when a really hard interview is over. So, one trick an interviewer might do is to falsely signal an interview is over. Wait a few minutes. If you see the person slump in relief, then tense when you start the interview again, that’s an indication he or she might be deceptive.

There’s a term called “leakage” — where the person being interviewed starts to “leak” some of these visual clues that they’re being deceptive. That’s your cue, Meyer said, to hit them with the hard question.

Think you’re ready to spot a liar? Take Meyer’s “Lie-Q” test and see!

Questions? Comments? Email ponyblog@cnbc.com or drop a line in the comment box below.
More from The Pony Blog: ponyblog.cnbc.com

© 2011 CNBC.com

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Friday, December 23, 2011

Leaders can forgive without forgetting - CBS Money Watch

December 21, 2011 10:58 AM


By John Baldoni



Excerpts:


"Forgiveness," said Indira Gandhi, "is a virtue of the brave." Courage emerges from the strength of one's convictions as well as in the faith in self and others to do better.


Forgiveness is not limited to those who abide by principles of their faith; it is something that everyone, certainly everyone in a position of authority, should abide. To forgive is not to forget, nor is it to excuse. ...But as the saying goes, "To err is human; to forgive, divine."


Forgiveness is also a sign of strength, especially coming from a leader. It signifies that you are above the fray. You don't hold grudges. It also is an acknowledgement of vulnerability. To forgive another is to hold close the notion that none of us is perfect.


There are times when serious mistakes, especially ethical lapses, deserve punishment, but regarding all mistakes as equal is misguided. Redemption is possible, and that is why leaders would do well to think long term about what can be learned from a mistake and how that lesson might help the organization grow and develop.


Forgiveness can be conditional. Ethical transgressions may require restitution, but mistakes require something else -- a commitment to learn from what went wrong and resolve to implement those lessons


John Baldoni is the president of Baldoni Consulting LLC, a full-service executive coaching and leadership development firm. John speaks widely on leadership and is the author of 10 books on leadership, including his newest, Lead with Purpose: Giving Your Organization a Reason to Believe in Itself.




Access Article, Source And Great Content: http://www.cbsnews.com/8301-505125_162-57346087/leaders-can-forgive-without-forgetting/

Make Time for Time - Harvard Business Review

Anthony K. Tjan
10:00 AM Thursday December 22, 2011
Comments (7)



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"Donner du temps au temps," the late French President François Mitterrand used to say. "Give time for time." The notion being that you need to make time in order to appreciate the ultimate gift we have been given: time on this earth. Every day, we make conscious and less conscious choices on time allocation. Some uses of our time are routine — dropping off kids, eating meals, or going for a daily run. In between those routines, we look to our agendas to see what we are meant to be doing, whom to meet, when and where to go next.

Most of us will spend more than one-third of our lives and more than half of our waking adult hours in our workplaces. A natural concern, and one worthy of a New Year's reflection and resolution, is how can we be better, more honest and more efficient with that time. Here are five gut-check questions to see if you are making the greatest impact with your work time:

1. Are you working towards a purpose? The foundation for a time allocation strategy starts with your personal purpose and passion. In my forthcoming book, Heart, Smarts, Guts and Luck, my co-authors and I discuss the notion of being connected to the "Heart" of a business — to its root purpose and its "why" as opposed to its "what" and "how." It is almost always easier for someone to state what they do for work than explain why they do what they do. This should not be the case. The Heart-driven business-builder has little hesitation in explaining her "why" to you. She understands that her business has a purpose bigger than product, and that she is in pursuit of something more than just making money. Companies with a clear purpose include Patagonia, Ikea, Nike, and Southwest. In his McKinsey Award winning 2010 HBR Article, "How Will You Measure Your Life?" Clay Christensen writes, "Your decisions about allocating your personal time, energy, and talent ultimately shape your life's strategy." And, yet as he observes, too often people's allocation choices end up being different from their intentions.

2. Are you running hard, but not getting ahead? Some people may get lucky, but most successful people I know work hard. However, one should not confuse hard work with progress. My business partner says: "The good news is that you are running hard and making great pace. The bad news is that you're lost." Why is that? It is easy to identify the things you want to accomplish in life — from making an impact on the lives of others to raising a great family. But as Christensen observes, we often default to short-term tasks even when many of them may not connect to our bigger goals. What can you do to ensure that you're not only running hard, but in the right direction? The next question is a good place to start.

3. Have you done a calendar audit lately? Do you have a real sense of where you spend your time? I have found it useful to calibrate where I think I spend my time (strategy planning, people and mentorship sessions) and where I actually spend my time (administrative planning, board meetings). Look back on the past month in your calendar and compare how you spent your time with your strategic priorities. Most often, we are not as aligned as well as we think. We end up doing the things that we are better at, simple things, things we enjoy, or things that seemingly just have to get done at that moment, instead of the things that are most meaningful and impactful. Identify your top five priorities for the calendar year and look at any given month to see how your time mapped to those priorities.

4. Are you booking sufficient think time? Don't fall into the trap of scheduling meetings and not scheduling "think time" to achieve what you want in those meetings. In a prior blog post, I spoke of the three purposes of meetings — to inform, get input, or get approval. Make sure to schedule time to think about what you want to accomplish in a meeting and do the necessary prep work. I have worked closely with my assistant to schedule preparation time for any meeting in my Outlook calendar. For most meetings there is at least a 1:2 ratio of prep time to meeting time, and it can go upwards of 20:1. If a meeting is an hour you probably need 30 minutes to prepare. For critical meetings you may need 20 hours of preparation for each hour. Know the type of meeting you are having and block sufficient prep time.

5. Are you multi-tasking your way to lower productivity? These days, almost everyone has a "second screen" to look at while they are working. The notion of the quiet time described above rarely exists. Even if you get good at booking time for meeting preparation, don't just be vigilant about keeping that time slot. You also need to shut off devices, hold off calls, and yes, close your Outlook (those email message alerts constantly popping up in a corner of your screen). These are distractions. Focus on the task at hand when you have scheduled the time to do so.
As we fast approach 2012, my New Year's resolution is to be disciplined with my time. It is too easy to just say yes to meetings. It is too easy to confuse working hard with progress. It is too easy to feel the need fill the white space on a calendar. Or, worse, to not know what to do during unscheduled time because you have not had the chance to think, or are too busy multi-tasking. For 2012, consider a change and work towards the goal of better time allocation. It is possible. Focus on the goal versus just using up time. Indeed, embrace the gift of unscheduled time. It's time to make time for time.


Anthony Tjan is CEO, Managing Partner and Founder of the venture capital firm Cue Ball and vice chairman of the advisory firm Parthenon.



Access Source And Its Great Content: http://blogs.hbr.org/tjan/2011/12/make-time-for-time.html?referral=00563&cm_mmc=email-_-newsletter-_-daily_alert-_-alert_date&utm_source=newsletter_daily_alert&utm_medium=email&utm_campaign=alert_date

Tuesday, December 20, 2011

Performance Reviews Lose Steam - WSJ.com

A Debate About The Efficacy Of Performance Reviews

December 19, 2011

By RACHEL EMMA SILVERMAN

It's that time of year again: Many workers and managers are preparing for the dreaded performance review.

Access Article Here: Performance Reviews Lose Steam - WSJ.com

Saturday, December 17, 2011

Boosting Your Career and Personal Resilience - The Glass Hammer

December 14th, 2011

1:00 pm

Contributed by Kate Buller, Executive Coach, The Executive Coaching Consultancy (London)



Resilience, or the ability to flex and bounce back from setbacks, is a central characteristic of business leadership and living full and challenging lives. So what are some of the key psychological and physiological processes behind understanding and improving resilience?

Resilience in the face of significant challenge is an adaptive capacity. It is a process rather than a trait. As human beings we’ve evolved to heal ourselves. It’s not only about self-confidence, as outward confidence can be disguising inner worries and anxieties. It’s more about optimism, emotional intelligence, adaptability, and keeping one’s head when under pressure.

The pace of change in organisations continues to accelerate. Coupled with this, studies such as one published in June by ForbesWoman and TheBump.com have found that 92% of working mothers felt overwhelmed by work, home and parenting responsibilities. Only about 15% of working parents now have a stay-at-home partner.

The rise of the dual career couple is here to stay, adding to the pressure on work, family life and relationships. We all feel squeezed. In the UK, for example, at any time around 20% of the British workforce reports being affected by stress, with 77% of these also reporting problems with relationships at home caused by stress at work.

Biological Responses to Stress

We respond to stress biologically, in the same way we protect ourselves from physical threat, by a fight/flight reaction. This literally switches our blood supply in the brain away from our frontal cortex (which helps us analyse situations and make decisions) and channels it towards the amygdala, the most primitive part of our brain. This causes release of the highly corrosive cortisol, preparing us for fight or flight – neither of which is appropriate in most work situations. So we lose the very thing that we need for resilience and adaptive capacity, our ability to think and react appropriately.

We are born with two innate fears, falling and loud noises. Other fears, such as of failing, are learned and can therefore be unlearned. Martin Seligman (author of ‘Authentic Happiness’ and founding professor of the positive psychology movement) has helped US Army soldiers build their resilience through training. This has not only reduced the incidence of PTSD it has also shortened the recovery time for those who do suffer from it; with some regaining higher mental well-being scores than pre-action levels.

How we react under pressure is an important thing to learn early on in our careers. The more resilient we are, the more in control we’ll be in the face of challenges. Setbacks can make us leap to conclusions, lose perspective and quickly engage unhelpful feelings.

Albert Ellis’ ABCD model helps us interrupt the amygdala hijack and keep our frontal cortex engaged. We have an event (A) which starts to trigger familiar feelings (C) of dread, failure, anger. The feelings are caused by the thoughts (B) we have about the event. We need to look at the thoughts that are making us feel this way. Things like “I always say the wrong thing” or “I can’t manage under pressure, I always make mistakes”. Then we can ask if these thoughts have any foundation. Then we decide what action to take (D).

Building Resilience

These are some of the characteristics of resilient people, based on research from the University of Pennsylvania:

•High level of self and political awareness.

•Comfortable with uncertainty, see things in perspective and avoid jumping in.

•Optimistic, but with feet on the ground.

•‘Can do’ approach, improvise, use resources available, see problems from many angles, solution focused.

•Empathic, well connected, know how to ask for help, build strong relationships.

•Confident in own abilities – expertise well known and sought out.

•Seek out new and challenging experiences, see failure as natural part of life and actively learn from it.

As executive coaches we often talk to our coachees about the importance of holding all aspects of our lives in healthy alignment. Resilience is a delicate, personal equilibrium that needs regular attention, which consists of personal fitness, job fitness, and career fitness.

Personal fitness is about getting enough sleep, our diet/exercise regime, how we take care of our family and friends, nurturing ourselves and our relationships. Women in general, and working mothers in particular, take a lot of responsibility for the caring for others, sometimes at personal cost. We’re not great at asking for help and guilt can cause us to run ourselves ragged trying to achieve the ‘perfect family life’.

Job Fitness is the area that often we give most attention to. Often our coachees have been highly successful by focusing on this area, achieving demanding deadlines and setting high standards. Then suddenly notice all the best work/credit goes to colleagues who aren’t perhaps as good, but who’ve managed their profile strategically.

Career fitness can get overlooked in busy lives but this helps us should something happen to our job or organisation. It means we have a game plan, strong networks and high levels of self awareness. We take appropriate risks to stretch ourselves. We manage our personal reputations and know how marketable we are. All this gives us confidence to exploit our current roles for opportunities to play to our strengths and broaden our experience.

The more that each of these aspects of our lives are strong and in balance, the more we can remain pragmatic and optimistic, with our key ally the frontal cortex in charge.

Access Source And Its Great Content: http://www.theglasshammer.com/news/2011/12/14/boosting-your-career-and-personal-resilience/

Friday, December 16, 2011

What Great Companies Know About Culture - HBR

HBR Blog Network.

Deidre H. Campbell


What Great Companies Know About Culture

12:55 PM Wednesday December 14, 2011

by Deidre H. Campbell
Comments (32)


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Even in this unprecedented business environment, great leaders know they should invest in their people. Those companies who are committed to a strong workplace culture tend to perform well, and now they are featured prominently in a new ranking recently released by Great Place to Work Institute. Among the top performers on the 2011 World's Best Multinational Companies list are culturally-strong technology companies such as Microsoft, NetApp, SAS, and Google.

But is there a direct correlation between employee investment and the balance sheet? As Prof. James L. Heskett wrote in his latest book The Culture Cycle, effective culture can account for 20-30 percent of the differential in corporate performance when compared with "culturally unremarkable" competitors.

To better understand the ROI, my company, Burson-Marsteller, teamed up with the Great Place to Work Institute to ask senior executives from top-ranked companies about the value of a positive work environment. The survey garnered responses from 20 of the top 25 companies in the global workplace ranking. Here's what those companies do in common:

They invest more in their employees. The response came back resoundingly: It's simply good for business. Rather than cutting back or eliminating programs, 30 percent of top-ranked companies are investing more in work-life programs, such as flex-time, health benefits, and employee perks. The remaining 70 percent have held steady the level of investment.

They're upgrading. Old-fashioned benefits like health insurance, family leave, and flex time ranked only 15 percent when considering most valued HR offerings. Traditional onsite benefits, such as cafeterias, childcare, massages, and volunteer opportunities ranked a mere 5 percent when determining what benefits provide stability during economic uncertainty. Instead programs that offer the most stability, as reported by 75 percent of respondents, are those that communicate brand mission and provide career development opportunities.

They recognize that culture is critical to talent retention. When asked which elements of workplace commitment most benefit daily operations, companies ranked culture at 80 percent and recruitment/retention at 70 percent. Competitiveness, customer loyalty, innovation, and productivity — while critical to daily operations — trailed behind with each under 20 percent. In a world where competition for talent is global, star performers seek companies with values that mirror their own.

They know their audience. These companies recognize which stakeholders will watch their every move. For this audience, it's imperative to communicate the company's commitment to being a great workplace. 70 percent of respondents ranked customers as the most important external audience to understand this crucial point. 35 percent cited investors as the second most important external audience. This means that employees and senior leadership alike should ensure that the brand is understood inside and out by customers and other stakeholders. This blend is special, valuable, and demonstrates the holistic view we have of 'doing business' in the world.

Becoming a great workplace is not a transition that will happen overnight. Being a great workplace is the result of a long-term investment in their employees. As the top-ranked companies demonstrate, this kind of investment will increase productivity, improve recruitment and retention, and save costs — all positively impacting the bottom line. In challenging economic times, we are reminded that companies should not only be a great workplace because it is the right thing to do, but because it is good for business.


Deidre Campbell is a Managing Director in Burson-Marsteller’s Corporate Practice where she leads the financial communications division and specializes in developing ROI strategies for Fortune 100 companies. She serves on the board of the Council for Economic Education. Follow her on Twitter @DeidreHCampbell.


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Wednesday, December 14, 2011

Hiring With Your Gut Is The Worst Thing You Can Possibly Do - Business Insider

Hiring With Your Gut Is The Worst Thing You Can Possibly Do
Karlee Weinmann
Dec. 13, 2011, 10:48 AM


Geoff Smart was born to hire. His father, an industrial psychologist, was a hiring expert, and he went on to study with Peter Drucker — widely considered the father of the field. It's been 17 years since Smart founded ghSMART, his Colorado-based leadership consulting firm.

In that time, Smart co-wrote Who: The Method For Hiring, which outlines a comprehensive hiring method rooted in research. Last month, the Wall Street Journal featured the book as one that actually helps entrepreneurs find success. We recently spoke with Smart about the dos and don'ts in hiring. Here's what he had to say:

What do employers need to keep in mind when they're hiring?

Generally, don't hire with your gut feel. Most people hire with their gut — they just decide if they like someone or not and then they hire them. That's the most common way hiring happens in the world and it doesn't work, it leads to about a 50% hiring failure rate — that's based on about half a century worth of data on it.

If you're not going to use your gut, then what are you going to do? You're going to follow a four-step process that we outline in the Who book:
Step one is Scorecard, which means you've got to actually figure out what the person's supposed to accomplish. What do you actually expect them to do or achieve?

The second step is called Source, and that's the question of where you find candidates.

The third step is called Select, and that's actually the hardest step. Once you've narrowed down to a few candidates, how do you really get to know them for who they really are so that you can make the right choice based on fit?

The fourth and final step is often forgotten by managers — it's called Sell. When you've gone through all the hassle of finding an awesome candidate, how do you close the deal and sell them on joining your company?
People who successfully hire follow those four steps. People who unsuccessfully hire kind of wing it and get lousy results. There's a 50% failure rate if you do the wing-it approach, and only a 10% failure rate -- in other words, a 90% success rate — if you follow the four-step approach.

What are the most crucial hiring mistakes?

I think [hiring managers] screw it up in two places. The first is in the first step, Scorecard. They actually don't think about the outcomes they want someone to achieve. They think about the profile of the kind of person they want to attract.

The average manager has a profile of the candidate they're hiring, and that's a no-no, you're not supposed to do that. Instead what you're supposed to do is say, "I'm going to hire this person to be editor of my next book. I need her to do these five things and achieve these outcomes."

The second problem is in the interviews. Most interviewers talk about themselves the whole time and you really should listen and ask good drill-down questions. Try to understand what people have accomplished rather than spending the whole interview just talking about how great your company is.

If you're interviewing someone by asking them hypothetical questions, you don't get the truth, you get speculation. Don't ask interview questions that are hypothetical in nature, ask interview questions that are reality-based in nature.

What's the best way for an employer or HR manager to rethink his or her process?

Basically, they can evaluate whether or not they're doing the following four very specific things:

No. 1 is to ask themselves if they've identified five to seven outcomes they expect a person to achieve in the job.

No. 2 is sourcing candidates through their most trusted business and personal contacts. We did a study for the book to find out where great leaders find their best talent, and 78% said through their own personal and professional networks. It wasn't really through posting ads or even through hiring recruiters. Use social media in targeted way — make a list of 10 people you know, and ask them, "Anyone you know that I should hire who's really good at [whatever the job requires]?" and then follow up with those people.

The third thing is, when you're interviewing, really try to understand what someone has accomplished throughout their career. Ask yourself, "How relevant is that to what we need them to do here at our company?"

And the fourth and final thing is, once you decide to hire someone, you have a process for selling them. At my firm, for example, we identify one of our team members who's in charge of closing our candidate, and then there's all sorts of steps. We send balloons and flowers to the person, we take them out to dinner and celebrate with their significant other. It leads to a really high success rate out our firm, but I see other firms decide to hire someone and then they stop. They wonder why the other person doesn't say yes. The answer is, because you stopped short of the goal line — the person signing their employment agreement.
How did your firm develop that specific strategy?

Trial and error is the short answer.

We just basically started throwing everything including the kitchen sink at people to let them know that we really think they're a great fit, and to put a lot of positive pressure on them to accept their offer.

Is it always a process of trial and error, or is there a way to make it a little more formulaic than that?

I think there's a checklist of five things that should always be included, but otherwise it's pretty trial-and-error, given the culture of your company. We call the checklist "The Five Fs of Selling," and the Fs are:

Fit. Have you sold the person on how you think they'll fit at the company?


Family. You don't want to ask people about whether they want to have children or if they're pregnant. But it is helpful to know if their family and friends are supportive of their taking the job.


Freedom. A lot of the Millennials and Gen Y folks love freedom in their jobs. They don't want to be told what to do every minute of the day. If you can show the candidates they'll have freedom in their job, that's a big plus.


Fortune. Fortune is kind of a jokey way of saying how much money someone is likely to make. We've found that if candidates know pretty specifically what they're likely to earn in a job, that's better. Don't be vague, be pretty specific, and then people can count on it.


Fun. This one is very culture-specific, so whatever is the most fun part of your company's culture, really emphasize that and the degree to which it seems like an interest match with your candidate.
Is an unconventional approach to hiring ever OK?

I like unconventional for selling a candidate on joining your company, when you really want to make it match the person's taste. But I'm not supportive of unconventional when it comes to a hiring process, because there are better ways and worse ways to manage a hiring process. Completely freestyling it throughout the entire interview process is not a good idea.

Non-conventional is totally great for selling someone, but highly conventional and highly structured in what comes before selling someone is a better approach than sloppy, gut-feel kind of stuff.


What is it about the gut feeling that makes it so ineffective?

It's the absence of data. Facts, data, reality. These are your friends when hiring, not just gut feel and falling in love with candidates' personalities.

What if a candidate is great on paper, but you find they're a little abrasive or you just don't quite click?

It's all about the results, so if they have, in fact, gotten really good results that you and your colleagues would agree are impressive, then we advise you to hire on results. Don't worry too much about whether the person is too introverted, or if the person is a little nerdy, or they just didn't seem socially as strong as you would like. Don't get your heart set on hiring clones of you, or people who are exactly like you are personality-wise.

That said, if their personality makes you worry about if they're trustworthy, if they have high integrity, or if you have more character-level question marks, we encourage clients to listen to their gut. If their gut is negative on the character stuff, they should continue to do their homework to find out what the real story is.

You touched on something I'd like to ask more about. People are drawn to those similar to themselves. How does that play into the hiring process?

It's human nature to feel more comfortable with people who remind us of ourselves. However, that really, really, really limits the pool of talent you can hire for a given role.

You can hire people who share similar values, or similar aspirations for what you're trying to do in business. But I think if you hire the very best people for a role, you might find that they have very different personalities from your own. It takes a degree of discipline to overcome the attraction. If somebody's a lot like you, hire for talent not personality.

What's the one thing all hiring managers should do?

If there's one thing hiring managers should do, it's to sit with their finalist candidates and listen to them tell a full text story of their lives. The one really important ingredient in any good hiring process is to have the candidate walk chronologically through their entire career life and tell you all the details.


At that point, patterns will become clear. Relevance of their background to your situation will become clear. Types of jobs they've loved and hated will become clear. Types of bosses they've had, that they've loved or hated, will become clear.

So much is missing, kind of like an iceberg where 90% is under the surface, when you do short interviews.


Karlee Weinmann - writes for War Room. She is a graduate of the University of Minnesota, where she earned degrees in journalism and sociology. She was an editor at The Minnesota Daily and has previously contributed to The Star Tribune, The Minneapolis/St. Paul Business Journal, MinnPost.com, and The Fiscal Times.

Karlee's Other Recent Articles:  http://www.businessinsider.com/author/karlee-weinmann


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How to Accomplish More by Doing Less - HBR - Tony Schwartz

How to Accomplish More by Doing Less

7:40 AM Tuesday December 13, 2011
Comments (116)



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Two people of equal skill work in the same office. For the sake of comparison, let's say both arrive at work at 9 am each day, and leave at 7 pm.

Bill works essentially without stopping, juggling tasks at his desk and running between meetings all day long. He even eats lunch at his desk. Sound familiar?

Nick, by contrast, works intensely for approximately 90 minutes at a stretch, and then takes a 15 minute break before resuming work. At 12:15, he goes out for lunch for 45 minutes, or works out in a nearby gym. At 3 pm, he closes his eyes at his desk and takes a rest. Sometimes it turns into a 15 or 20 minute nap. Finally, between 4:30 and 5, Nick takes a 15 minute walk outside.

Bill spends 10 hours on the job. He begins work at about 80 percent of his capacity, instinctively pacing himself rather than pushing all out, because he knows he's got a long day ahead.

By 1 pm, Bill is feeling some fatigue. He's dropped to 60 percent of his capacity and he's inexorably losing steam. Between 4 and 7 pm, he's averaging about 40 percent of his capacity.

It's called the law of diminishing returns. Bill's average over 10 hours is 60 percent of his capacity, which means he effectively delivers 6 hours of work.

Nick puts in the same 10 hours. He feels comfortable working at 90 percent of his capacity, because he knows he's going to have a break before too long. He slows a little as the day wears on, but after a midday lunch or workout, and a midafternoon rest, he's still at 70 percent during the last three hours of the day.

Nick takes off a total of two hours during his 10 at work, so he only puts in 8 hours. During that time, he's working at an average of 80 percent of his capacity, so he's delivering just under 6 ½ hours of work — a half hour more than Bill.

Because Nick is more focused and alert than Bill, he also makes fewer mistakes, and when he returns home at night, he has more energy left for his family.

It's not just the number of hours we sit at a desk in that determines the value we generate. It's the energy we bring to the hours we work. Human beings are designed to pulse rhythmically between spending and renewing energy. That's how we operate at our best. Maintaining a steady reservoir of energy — physically, mentally, emotionally and even spiritually — requires refueling it intermittently.

Work the way Nick does, and you'll get more done, in less time, at a higher level of quality, more sustainably.

Create a workplace that truly values a balanced relationship between intense work and real renewal, and you'll not only get greater productivity from employees, but also higher engagement and job satisfaction.

There's plenty of evidence that increased rest and renewal serve performance.

Consider a study conducted by NASA, in collaboration with the Federal Aviation Administration, of pilots on long haul flights. One group of pilots was given an opportunity to take 40 minute naps mid-flight, and ended up getting an average of 26 minutes of actual sleep. Their median reaction time improved by 16 percent following their naps.

Non-napping pilots, tested at a similar halfway point in the flight, experienced a 34 percent deterioration in reaction time. They also experienced 22 micro sleeps of 2-10 seconds during the last 30 minutes of the flight. The pilots who took naps experienced none.

Or consider the study that performance expert Anders Ericcson did of violinists at the Berlin Academy of Music. The best of the violinists practiced in sessions no longer than 90 minutes, and took a break in between each one. They almost never practiced more than 4 ½ hours over a day. What they instinctively understood was the law of diminishing returns.

The top violinists also got an average of more than 8 hours of sleep a night, and took a 20-30 minute nap every afternoon. Over a week, they slept 16 hours more than the average American does.

During my 30s and 40s, I wrote three books. I sat at my desk each day from 7 am to 7 pm, struggling to stay focused. Each book took me at least a year to write. For my most recent books, I wrote in a schedule that matched the great violinists — three 90 minute sessions with a renewal break in between each one.

I wrote both those books in six months — investing less than half the number of hours I had for each of my first three books. When I was working, I was truly working. When I was recharging — whether by getting something to eat, or meditating, or taking a run — I was truly refueling.

Stress isn't the enemy in the workplace. Indeed, stress is the only means by which we can expand capacity. Just think about weightlifting. By stressing your muscles, and then recovering, you gradually build strength. Our real enemy is the absence of intermittent renewal.


Tony Schwartz

Tony Schwartz is the president and CEO of The Energy Project and the author of Be Excellent at Anything. Become a fan of The Energy Project on Facebook and connect with Tony at Twitter.com/TonySchwartz and Twitter.com/Energy_Project.


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Monday, December 12, 2011

Managing Catastrophe Model Uncertainty, Issues and Challenges: Part I, Executive Summary - Guy Carpenter Capital Ideas

December 12th, 2011
Posted at 1:00 AM ETJohn Major, Director of Actuarial Research, GC Analytics®


Uncertainty is ever present in the insurance business, and despite relentless enhancements in data gathering and processing power, it is still a large factor in risk modeling and assessment. This realization, driven home by model changes and recent unexpected natural catastrophes, can be disconcerting - even frightening - to industry participants. But companies that understand the vagaries of model uncertainty and take a disciplined, holistic approach to managing the catastrophe modeling process are well positioned to adapt and outperform the competition.

In this report, presented this week on GC Capital Ideas, we examine effective modeling management as it relates to property catastrophe models used by primary writers of property insurance. We advocate adopting a multiple catastrophe-model approach to better estimate risk and control uncertainty. A broader discussion follows, suggesting how the industry should incorporate model uncertainty in its consideration of catastrophe risk.

Since the introduction of the first commercially available catastrophe (cat) models in the late 1980s, models have evolved, driven by improved science and the knowledge acquired from more recent catastrophes. Today, there are several major commercial vendors of modeling services, and virtually every insurer or reinsurer uses some model - their own, a vendor’s, or, in many cases, more than one.

Despite considerable refinement of the models over the decades, uncertainty remains - and it is a significantly bigger factor than many users may recognize. In 1999, Guy Carpenter & Company published estimates of the amount of uncertainty in U.S. hurricane risk models. The conclusion: a two standard error interval (a plausible range that has a 68 percent chance of including the true, but unknown, value) for a national writer’s 100-year or higher probable maximum loss (PML) goes from 50 percent to 230 percent of the PML estimate produced by the model.

The “uncertainty band” around a typical PML curve paints a more realistic - and much less precise - picture of catastrophe model output. [Access Article To See Graph]

Advances within the modeling industry since 1999 have indeed reduced the width of the uncertainty band, but the consideration of smaller areas of geography only introduces additional uncertainty. Today, we may crudely estimate confidence intervals as:  [Access Article To See Graph]

While models have considerable uncertainty associated with them, they are still valuable tools, taking their place with scenario analysis and exposure accumulation studies. In fact, they can be viewed as extensions of both of these types of analyses.

Coping successfully with cat model uncertainty involves a number of approaches. In many cases, multiple models can be engaged to help narrow the uncertainty band. Multi-model techniques include “blending” (averaging) the model outputs, “morphing” one model’s output to reflect the characteristics of another model’s, or “fusing” model components (or at least outputs) into what is in effect a new model. In each case the correct selection of specific weight parameters and methodologies is critically important and needs to be informed by the adequacies and shortcomings of each model.

In addition to helping to reduce some (but not all) sources of uncertainty, a multiple model approach can also help smooth out the impact of individual model changes - which seem to have an increasingly acute effect on the industry.

More broadly, we encourage companies to embed awareness of model uncertainty into their overall enterprise risk management (ERM) process, and make catastrophe-risk-oriented decisions with a conscious eye towards the possibility of model error.

The issues of model uncertainty and change pose many difficult challenges for the industry. The “black box” should no longer be left to make the decisions. Rather, it should be considered a tool to help inform decisions made by (human) professionals. This is an intuitive and straightforward prescription, but making it happen will require the consideration and engagement of virtually every group in the industry.

» Modeling firms need to step up and lead the discussion about uncertainty despite the apparent competitive disadvantage of transparency.
» Primary writers need to be smarter consumers of models and model output, curtailing the blind application of “portfolio optimization” in favor of a broader ERM-based multi-model approach. They also need to rethink their attitudes about nontraditional risk transfer products.
» Reinsurers, already sophisticated model users, should not take advantage of information asymmetry, but rather explore which new products might make sense.
» Rating agencies and solvency regulators need to equally investigate the models to determine when a model is being appropriately utilized. They need to understand that “the map is not the territory” - model output is relative information, not absolute gospel, and firms need time to absorb and act upon this information when model changes occur.
» Boards of directors, investors and stock analysts need to understand cat risk in the same terms - being estimated with significant uncertainty - as other financial risks. Insureds and the public need to understand that no one really knows the right answer.
» Brokers, finally, need to stay out in front to facilitate education, communication and fair dealing.
Access Source For Article, Illustrative Graphs And Other Great Content: http://www.gccapitalideas.com/2011/12/12/managing-catastrophe-model-uncertainty-issues-and-challenges-executive-summary/

Friday, December 9, 2011

Lloyd’s Risk Index 2011 - #2 Risk - Talent And Skills Shortage

http://www.lloyds.com/News-and-Insight/Risk-Insight/Lloyds-Risk-Index



INDIVIDUAL RISKS 2011



1 Loss of customers/Cancelled orders

2 Talent and skills shortages (including succession risk)

3 Reputational risk

4 Currency fluctuation

5 Changing legislation

6 Cost and availability of credit

7 Price of material inputs

8 Inflation

9 Corporate liability

10 Excessively strict regulation

11 Rapid technological changes

12 Cyber attacks (malicious)

13 High taxation

14 Failed investment

15 Major asset price volatility

16 Theft of assets/Intellectual Property

17 Fraud and corruption

18 Interest rate change

19 Cyber risks (non-malicious)

20 Poor/incomplete regulation

21 Critical infrastructure failure

22 Government spending cuts

23 Supply chain failure

24 Pollution/environmental liability
 
25 Soverign Debt
 
26 Increased protectionism

27 Industrial/workplace accident

28 Energy security

29 Insolvency risk

30 Demographic shift (eg ageing population, youth emigration)

31 Strikes and industrial action

32 Climate change

33 Pandemic

34 Piracy

35 Water scarcity

36 Terrorism

37 Urbanisation

38 Population growth

39 Riots and civil commotion

40 Food security

41 Harmful effects of new technology

42 Flooding

43 Expropriation of assets

44 Earthquake (including tsunami)

45 Abrupt regime change

46 Windstorm (eg hurricane, cyclone, typhoon)

47 Drought

48 Threats to biodiversity

49 Impact of space weather (eg solar flares)

50 Volcanic eruption (including ash)

Access Lloyds Risk Index 2011 Report: http://www.lloyds.com/News-and-Insight/Risk-Insight/Lloyds-Risk-Index

Talent Shortage: A Top Risk Facing Businesses - Risk Management Monitor

by Emily Holbrook on December 7, 2011 ·

No, it’s not the credit crisis or the looming threat of cyber crime or business continuity during a natural disaster or the overall state of the national economy that keeps American business owners awake at night. It is, according to most, the shortage of talent and skills.

This may seem strange, seeing as were are still experiencing record unemployment numbers — meaning the pool of seemingly qualified employees should be vast to say the least. But in fact, the 2011 Lloyd’s Risk Index found that talent and skills shortage ranked as the number two risk facing American business leaders — shooting up from the number 22 spot in 2009.

“These findings show that talent is now firmly part of the risk lexicon — high levels of unemployment have boosted the quantity of candidates, but employers are still wrestling with the quality. Our own Global Talent Index echoed these concerns and highlighted two factors underscoring this risk: population demographics and skills gaps,” said Kevin Kelly, CEO of Heidrick & Struggles the leadership advisory firm providing executive search and leadership consulting services worldwide.

Are business leaders prepared to handle not only the number two risk on the list, but all 50 in the index? Apparently they are. Respondents said they are more than adequately prepared for 48 out of the 50 risks listed. That is in comparison to 2009, when leaders said they were not adequately prepared for eight of the 40 listed risks. Leaders cited “boosting talent retention” as one of the most overall effective risk management actions taken over the last three years, showing how eager businesses are to retain the staff they have.

Speaking of risk management, when respondents were asked to identify the most effective risk management action their organization had taken over the last three years, they cited the introduction of formal risk management strategies and systems, stating that “risk management is now one of the most important roles in the business community.”

It may have taken the collapse of the U.S. housing market, a worldwide recession and the continuous uncovering of massive fraud to push the idea of risk management to the forefront of global business programs, but at least the discipline is now moving to where it belongs.

And it is apparently now focused on retaining the talent and skills that are greatly needed in a business world full of continuously evolving risks.


Lloyd's Risk Index 2011
Survey finds Shortage of High Skilled Workers Around the Globe




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Thursday, December 8, 2011

Are Creative People More Dishonest? - HBS Working Knowledge

Research & Ideas


Published: December 7, 2011

Author: Carmen Nobel


In a series of studies, Francesca Gino and Dan Ariely found that inherently creative people tend to cheat more than noncreative people. Furthermore, they showed that inducing creative behavior tends to induce unethical behavior. It's a sobering thought in a corporate culture that champions out-of-the-box thinking. Key concepts include:


•In a series of experiments, the researchers found links between creativity and unethical behavior.

•Inherently creative people tend to cheat more than noncreative types. Furthermore, inducing creative behavior tends to induce unethical behavior.

•Creativity is not necessarily bad, but managers would do well to consider how to structure the creative process to get the good outcomes of creativity without triggering the bad ones.

.In his 1641 treatise, Meditations on First Philosophy, philosopher René Descartes introduced the concept of an "evil genius," a powerful force of nature who is equally clever and deceitful. Since then, the world has given us plenty of examples—Hannibal Lecter in The Silence of the Lambs, fictional Wall Street villain Gordon Gekko, and real-life Wall Street villain Bernie Madoff, to name a few. Not only were these classic bad guys unquestionably unethical, but all were inarguably creative in carrying out their bad behavior as well. Indeed, it's rare to hear anyone described as both evil and unoriginal.

This raises a question: Is there a link between creativity and unethical behavior?

"Dan and I started wondering whether there is something about the creative process that triggers dishonest behavior."There certainly is, according to an article in a forthcoming issue of the Journal of Personality and Social Psychology. In "The Dark Side of Creativity: Original Thinkers Can Be More Dishonest," the authors report that inherently creative people tend to cheat more than noncreative types. Furthermore, they show that inducing creative behavior tends to induce unethical behavior.

It's a sobering thought in a corporate culture that champions out-of-the-box thinking.

"In any organization, especially in contexts that are global and very competitive, there is so much focus on trying to be innovative and creative," says Francesca Gino, an associate professor at Harvard Business School, who wrote the article with Dan Ariely of Duke University. "But is creativity always good? We often hear of cases in which people use innovative behavior to create a sense that what they're doing is not morally wrong. So, Dan and I started wondering whether there is something about the creative process that triggers dishonest behavior. Specifically, we decided to explore the idea that enhancing the motivation to think outside the box can drive individuals toward more dishonest decisions when facing ethical dilemmas."

Creativity and ambiguity

To begin their research, Gino and Ariely surveyed 99 employees across 17 departments at an American advertising agency, where some jobs—copywriting, for example—required much more creativity than others. In the anonymous survey, on a seven-point scale, the respondents indicated how likely they were to engage in various ethically questionable work behaviors such as "take home office supplies from work" and "inflate your business expense report." Respondents also evaluated scenarios describing a hypothetical person who has the opportunity to behave dishonestly, and then indicated, again on a seven-point scale, how likely they would be to behave unethically in each instance. Finally, the respondents reported how much creativity was required in their respective jobs, with three managers in the executive office rating the creativity level required in each department, as well.

Overall, the researchers learned, the higher the creativity required for the job, the higher the level of self-reported dishonesty.

Then, through a series of experimental studies, the researchers tested--and largely proved--the theory that creative people are more likely to exhibit unethical behavior when faced with ethical dilemmas.

The first study tested the hypothesis that a naturally creative person is predisposed to dishonest behavior. (The week before the experiment, the participants, 71 university students, completed an online survey that included dispositional measures of creativity.) The experiment included a computerized task in which participants viewed 20 dots inside a diagonally bisected square. They were told to indicate whether there were more dots on the right side of the square or on the left, and that their answers would affect how well they would be compensated for taking part in the experiment: each "more-on-the-right" decision would earn them 10 times as much as a "left" decision.

In half the trials, it was obvious that one side of the square had more dots than the other—2 dots versus 18, for example. But in the other half, the task was a little more ambiguous, with several dots appearing near or on the line in the middle of the square. The researchers focused on the results of the "ambiguous" tasks, with the idea that these were the ones that allowed more room for interpretation—participants could easily misrepresent what they actually perceived and report "more on the right" in order to incur a higher payoff.

The results showed that participants who had scored high on the creativity scale were the most likely to fudge their answers for monetary gain.

"Ambiguity, having some room to justify our behavior, seems to be a really important component of explaining when and why we cross ethical boundaries, and these results show us that creativity helps with that process," Gino says. "It suggests that moral flexibility is the mechanism explaining why being in a creative mindset or being a creative person puts you more at risk to do the wrong thing."

The perils of inducing creativity

In another study, which included 111 university students, the researchers tested whether they could actively induce creativity, and whether doing so would temporarily induce dishonest behavior. Participants were randomly assigned to one of two groups: the "creative mindset" group and the control group. All were asked to construct sentences from sets of randomly positioned words. But in the creative mindset group, more than half of the sentences included words related to creativity: "novel," "imagination," "invention," "originality," and so on.

"We're not saying that creativity's bad, but we are saying that it can lead to problems."To test whether the creativity prime worked, the researchers asked participants to solve a cognitive puzzle created by the Gestalt psychologist Karl Duncker. Known as Duncker's candle problem, it presents participants with the task of affixing a candle to a wall in such a way that when lit, the candle won't drip wax on the floor. To complete the task, participants can use a box of tacks, a book of matches, and the candle. The ideal solution, which requires ingenuity, involves emptying the box, tacking the box to the wall as a candleholder, placing the candle inside, and lighting the candle with the match. The researchers found that 47.3 percent of participants in the creative mindset group solved the candle problem ideally, versus 26.8 percent in the control group.

Next, participants completed a series of computerized tasks, including the ambiguous dots-in-the-square task from the first study. The results showed that those in the creative mindset group were much more likely to give dishonest answers for monetary gain than those in the control group.

"These were simple studies, but they were powerful in showing that our ability to justify things is significantly greater if we are in a creative mindset or when we are creative people," Gino says.

That said, Gino is quick to add that she and Ariely are not suggesting that companies put the kibosh on innovation in order to keep dishonesty at bay.

"We're not saying that creativity is bad," Gino says. "But we are saying that it can lead to problems. And so the question from a manager's perspective is: How do you get the good outcomes of creativity without triggering the bad outcomes?"

While "The Dark Side of Creativity" doesn't answer that question directly, Gino hopes that the research will remind innovative organizations not to give short shrift to ethics.

"As a manager, if you're highlighting the importance of being creative and innovative, it's important to make sure that you're stressing the presence of ethics, too," Gino says. "Dan and I are of the hope that managers will start thinking about how to structure the creative process in such a way that they can keep ethics in check, triggering the good behavior without triggering the bad behavior."

About Faculty in this Article: Francesca Gino
Francesca Gino is an associate professor in the Negotiations, Organizations, and Markets Unit at Harvard Business School


Invitation to participate
Are you a manager at an organization that stresses the importance of creativity in the workplace? Do you have thoughts about how to encourage creativity while discouraging unethical behavior? Please share your thoughts in the comments section below. You can also reach Francesca Gino directly at fgino@hbs.edu or follow her on Twitter, @francescagino.

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Wednesday, December 7, 2011

Developing Executive Presence - HBR Blog Network -

11:12 AM Tuesday December 6, 2011

by Joshua Ehrlich

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Make her two inches taller!" This command came from Bruce, an executive who wanted me to work with his most talented direct report. Amy was a brilliant high potential who Bruce hoped would succeed him, but she had one serious flaw — she lacked presence.

When I met Amy this was immediately visible. She was indeed short — a slight woman who walked quickly, hunched over so she occupied even less space. When she spoke, it was hesitantly with her hand over her mouth. She seldom made eye contact and glanced nervously around the ceiling as we talked.

I knew this would be challenging — but not impossible. Presence is not some innate quality that you either have or do not. It is a set of learned behaviors that enable you to command attention. And when you are fully present, it inspires others.

Amy understood this intellectually but didn't know where to begin. In her case, we progressed through these general principles to improve her executive presence:

Focus. Attention is like a flashlight waving wildly around a dark room, and there is need to focus that attention mindfully and intentionally. Amy learned to pay attention to her breathing, which she used as an anchor to expand her awareness to include her body and external surroundings. As she became more in tune with her body, she began to relax.

Use body language. In addition to learning from the inside-out, work from the outside-in by increasing awareness of the messages your body sends. Amy's strategy was to "carry herself like a queen." Walking upright made her feel more poised and dignified, and she began to outwardly convey more authority.

Reflect on your habits. As Amy's trust and comfort grew I was able to ask why she held her hand over her face. We explored some of the layers of her traditional Asian upbringing, such as the importance of not standing out. She also realized that being a woman in a male-dominated environment had led her to de-feminize herself. We continued to reflect on her identity, and she began experimenting with how to express herself through her appearance. Introspective conversations like this — either within us or with others — can help you face your fears and start experimenting more courageously.

Practice with support. Letting a colleague or mentor know you are working on presence can boost your skills and confidence. Bruce noticed Amy's more open demeanor, and his feedback reinforced her positive momentum. He started inviting her to speak to larger audiences in the organization.

Connect, don't transact. Maintaining your presence in front of an audience can be daunting, and public speaking for Amy was initially uncomfortable. She videotaped herself, using her breath to give some words more weight and the occasional "presidential pause." She connected with audiences by learning to tell engaging and captivating stories. Mindfulness also helped her to clear her head so she could think strategically, which enabled her to influence more effectively. Soon she began to enjoy interacting with groups.
Be still. Calm is the foundation of presence — a tall order for most busy executives. To maintain a peaceful center, Amy learned to use breath-awareness as a barometer of her anxiety. She was able to speed up and slow down intentionally without negatively impacting her clarity or relationships. No longer abrupt or impulsive, she could set boundaries, handle interruptions and ensure she had time to think under stress.

After several months, Bruce, Amy, and I met to close out the coaching. Bruce commented, "I asked for two inches and I got two feet!" In the past, this kind of feedback would make Amy shrink from embarrassment. Without missing a beat she thanked us both, smiling graciously.


Joshua Ehrlic

Josh Ehrlich is the founder of the Global Leadership Council, an international network of experts in leadership and organizational transformation. He advises CEOs and coaches senior executives on succeeding in demanding environments


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Tuesday, December 6, 2011

Multi-Tasking Does Not Increase Productivity - Radio Ink Magazine

12-5-2011

by Beth Armknecht Miller

You see it at work. You drop by an employee’s workspace to discuss a current project and she continues to work on the computer while you are having the discussion. How do you feel as the person continues to “multi-task”? Alternately, you are at home and your spouse is in the kitchen preparing dinner or loading the dishwasher. You start a conversation with him or her and they continue on with their task at hand while conversing with you. Did they really understand what you said? Did they really hear you?

So, you do see the behavior. Do you also find yourself part of this multi-tasking phenomenon? Multi-tasking, for many people in this ever changing and demanding world, has become a badge of pride. I can’t tell you how many executives I have worked with who actually believe that multi-tasking increases their productivity. It Doesn’t Increase Productivity
Yet, research shows just the opposite. Back in 2001, in the article "Executive Control of Cognitive Processes in Task Switching," found in the Journal of Experimental Psychology - Human Perception and Performance, Vol 27. No.4, Joshua S. Rubinstein of the U.S. Federal Aviation Administration in Atlantic City, New Jersey, and David E. Meyer and Jeffrey E. Evans of the University of Michigan in Ann Arbor, Michigan conducted a study which “revealed that for all types of tasks, subjects lost time when they had to switch from one task to another. Because time costs increased with the complexity of the tasks, it took significantly longer to switch between more complex tasks. Time costs were also greater when subjects switched to tasks that were relatively unfamiliar.”
In a 2007 New York Times article, Jonathan B. Spira, an analyst at the business research firm Basex, estimated that extreme multitasking costs the U.S. economy $650 billion a year in lost productivity. And a recent (September 2009) article from the Harvard Business School (HBS) references another study from Stanford University that supports the 2001 study. This article also suggests that while single-tasking is probably not totally practical in the 21st century, we should instead consider focusing on the value of each task, rather than focusing on the number of tasks to be completed.
Multi-Tasking Effects on Interpersonal Relationship

And even if you don’t believe this scientific evidence which shows that multi-tasking does not save you time, think about the other effects it has. What message are you sending to the people with whom you are multi-tasking? They probably wonder what is more important than the discussion they are trying to have with you. They may even think that you are just being rude.

I agree with the HBS conclusion that it is difficult to move to single-tasking, BUT only when the multi-tasking does not involve interpersonal communications with another individual.
So how can you change your multi-tasking behavior when you are confronted with someone wanting your attention? Set aside time during each day when you will not multi-task. At this time focus on only one task or one person. When someone approaches you for a conversation and you are in a time crunch, let the individual know either, that you only have a specific amount of time to speak due to a work-related deadline, or offer them the opportunity to come back at the specific time you have set aside each day for single-tasking. This is the time when you can give them your undivided attention. However, if you do have time to speak with them when they first approach you, then turn away from your computer and put your PDA and cell phone on silent so you aren’t tempted to multi-task.

Giving your employees, team members, family, and friends your undivided attention during an important conversation will build stronger relationships by increasing understanding, decreasing stress, and increasing respect. Managing multi-tasking will also increase your productivity and will model appropriate behavior to other employees. With these benefits in mind, what’s keeping you from starting to manage your multi-tasking behavior?


Beth Armknecht Miller is Founder and President of Executive Velocity, a leadership development advisory firm accelerating the success of senior executives and the companies they lead. Her career spans over 30 years and includes management positions in Fortune 500 companies as well as several entrepreneurial ventures, one of which was honored as an Inc 500 winner. Visit http://www.executive-velocity.com/ or http://executivevelocityblog.com/


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Saturday, December 3, 2011

The Myth of Work-Life Balance - John Beeson - Harvard Business Review

HBR Blog Network


John Beeson

John Beeson is Principal of Beeson Consulting, a management consulting firm specializing in succession planning, executive assessment and coaching, and organization design. He is also the author of The Unwritten Rules: The Six Skills You Need to Get Promoted to the Executive Level (Jossey-Bass.).

7:40 AM Friday December 2, 2011 by John Beeson Comments (69)

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Many companies extol the value of work-life balance for their employees, but the reality for senior executives? There isn't any. Frequently, stressed and harried managers look up the organization hierarchy and assume that they'll have greater control of their time when they advance to the C-suite. What they don't understand is that modern-day telecommunications, the hair-trigger requirements of financial markets, and the pace of global organizations create 24 x 7 work lives for most executives. So, forget work-life balance and think personal organization and finding ways to relax.

I see too many new and aspiring executives who are naïve about what it takes to succeed at the C-suite level and surprised by the withering demands placed upon them. The first step in dealing with the workload is putting in place the support structure that allows you to focus your energies on key priorities and issues where you can add the greatest value to the business.

Think for a minute. If your boss came and asked you to lead a major change initiative, your first questions would be about the budget and staff you would have at your disposal for the effort. The same logic applies to preparing to operate as an executive. At work and at home, who are the people who allow you to leverage your time and energy: your go-to staff members to keep track of major projects at work and those who help with childcare, eldercare, or managing a household?

In their drive to succeed, many new executives get caught up in a merry-go-round of business reviews, executive team meetings, e-mail, and late-night conference calls with colleagues around the world. At one large, global company, the CEO was known to keep his top 100 people on speed dial for impromptu phone calls at any time of the day or night. In many companies it can be difficult if not impossible to break away from this routine even for a long weekend, and the cumulative effects of stress and workload are damaging. We know a great deal about the long-term health dangers of prolonged stress. However, as described by Daniel Goleman, Richard Boyatzis, and Annie McKee in Primal Leadership: Learning to Lead with Emotional Intelligence, the effects on executive effectiveness are just as profound.

Under continued stress an executive loses his or her perspective on issues and the ability to look at problems creatively. Molehills become mountains. Conflict with colleagues becomes personal. The "flat spots" of our personality — for example, arrogance, inflexibility, aversion to risk or a tendency toward negativity — become evident. And most of us revert to tried and true solutions — the enemy of breakthrough strategies and new innovations.

Say goodbye to the two-week vacation with the family. That's history in most organizations. Instead, seek to find those activities that allow you to relax — even if only for 15 minutes a day. One CEO races performance sports cars on weekends. Another works out vigorously early every morning and adds a walk around Central Park on weekends. Yet another would end a grueling day of work listening to jazz on a professional quality sound system installed in the basement. Such executives recognize that these moments of relaxation are critical to maintaining resilience: their ability to rebound from obstacles and setbacks whether it's an unplanned marketplace event, the resignation of a key staff member or a promotion decision that didn't go their way.

Many managers are "sprinters" early in their careers. Recognition, rewards, and promotions come their way quickly. However, to succeed at the C-suite level where the pressures are greater and the consequences of failure more punishing, it's critical to equip yourself for the long haul. And that means making sure you have the necessary support structure around you and those precious few moments of relaxation that help you maintain the bounce in your step and the optimistic tone required of a senior leader.


Access Source And Its Great Content: http://blogs.hbr.org/cs/2011/12/the_myth_of_work-life_balance.html?referral=00563&cm_mmc=email-_-newsletter-_-daily_alert-_-alert_date&utm_source=newsletter_daily_alert&utm_medium=email&utm_campaign=alert_date

Friday, December 2, 2011

Procurement's Best-Priced Deal May Stifle Innovation- Michael Schrage - Harvard Business Review

Michael Schrage


Michael Schrage, a research fellow at MIT Sloan School’s Center for Digital Business, is the author of Serious Play and the forthcoming Getting Beyond Ideas.

Procurement's Best-Priced Deal May Stifle Innovation




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Every single innovation conversation I've had recently with business unit leaders, product managers and/or marketing executives invariably focuses on the importance of partnership and collaboration with their best suppliers and vendors. If anything, they wish their suppliers came forward with even more actionable and innovative ideas. Conversely, I have not had one conversation with a procurement executive or officer for whom an innovation partnership with vendors was mentioned as a corporate priority. What a disconnect.

When I politely point out procurement's role in selecting, shaping and paying for partnerships, the answer I get astonishes: We can reimburse our suppliers and partners out of another budget. In other words, innovation occurs when we bypass or disintermediate procurement. How healthy is that? What kind of cultural — and financial — signal does that send both to the firm and its vendors alike?

This dichotomy — schizophrenia is actually a better word — is a surefire invitation to conflict and dysfunction. Vendor/partners — who are compensated by procurement — end up having to explain away or conceal the bootleg or graymarket innovation projects they're billing for. Even worse, when suppliers seized by a great idea toil overnight and weekends to present it, procurement argues that this wasn't part of the budget and behaves (quite reasonably) as if it is going the extra mile to compensate the supplier.

This dynamic is unsustainable. Either procurement has to become a genuine facilitator, enabler and champion of the innovation ecosystem or companies have to downgrade and deemphasize the procurement process in order to make innovation a known corporate priority. Defining business processes and structures that inherently devalue and make difficult innovation opportunities is, quite literally, counter-productive.

Can strong procurement departments and strong innovation cultures co-exist? Yes, but only if the organization is honest about whether it creates more value by successful procurement or successful innovation.

The challenge is making procurement as explicitly accountable for enabling innovation as it is for controlling costs. Asymmetry is the enemy. Procurement's people have to enjoy comparable recognition and rewards for making a new product or service profitable as for, say, successfully consolidating a supplier segment or driving cost out of an outsourcing deal. Most organizations are excruciatingly aware when people get celebrated more for reducing spend rather than for procuring growth.

If this means that procurement has to be a better real-time partner to, say, manufacturing or marketing to make sure the money's there to pilot a reprogrammed machine tool or a Cloud-enabled social media promotion, then good. I have never come across a procurement department with a post-procurement "innovation budget" to fund emergent ideas or supplier-driven proposals. Procurement couldn't help but manage its selection criteria differently if it operationally lived with the knowledge that getting the best-priced deal was no longer good enough.

Similarly, other parts of the enterprise have to go beyond giving their requirements for procurement to turn into RFPs and engage in more productive collaboration. "Gaming" procurement to guarantee that a desired vendor becomes the "supplier of choice" is just as destructively manipulative as making "price" the centerpiece of a complex acquisition or marketing partnership. Successful partnerships mean that selection is the beginning, rather than the effective end, of how procurement's effectiveness is evaluated. In the same way that acquisitive organizations have become more savvy about TCO — Total Cost of Ownership — they should rethink TCP: the Total Cost of Procurement. If the monies saved on a contract significantly restrict or inhibit innovation-driven growth opportunities, then just how constructive was procurement's role?

The real-world drawback with this declaration of innovation interdependence is neither cultural nor operational. It's leadership. When procurement and marketing or procurement and operations disagree about what innovation opportunities truly offer value for money, the C-suite will frequently have to intervene. Realigning expectations around the most effective relationships between innovation and price is something top management must choose to do. This may seem counterintuitive in a time when executives are encouraged to delegate and empower. But, alas, the innovation disintermediation and disempowerment provoked by procurers with their eyes a little too focused on the bottom line have demanded this fundamental shift. If the C-suite isn't having candid conversations on precisely this issue, then the operational reality is that procurement is running innovation.


Michael Schrage Michael Schrage, a research fellow at MIT Sloan School’s Center for Digital Business, is the author of Serious Play and the forthcoming Getting Beyond Ideas.



Access Source And Its Great Content: http://blogs.hbr.org/schrage/2011/12/killing-innovation-in-the-proc.html?referral=00563&cm_mmc=email-_-newsletter-_-daily_alert-_-alert_date&utm_source=newsletter_daily_alert&utm_medium=email&utm_campaign=alert_date