What does George know about leading in crisis that makes him an expert on the subject? It turns out quite a bit. As Medtronic CEO, George earned a reputation for managing with integrity and challenging people to think creatively when dealing with crises. That approach helped establish Medtronic as the world’s leading medical technology company that experienced explosive growth of nearly 35% per year. In addition, as a member of the Goldman Sachs Board of Directors, George had a front-row seat as the recent financial crisis rocked the world.

George’s lessons include: Face Reality, Starting with Yourself; Never Waste a Good Crisis; and Be Aggressive: This is Your Best Chance to Win in the Market. In addition to providing practical advice, George shares real-life stories, anecdotes and a wealth of wisdom for current and aspiring leaders. He says the natural reaction when facing a crisis is to “hunker down,” batten down the hatches and ride out the crisis.

Rather than running for cover, George believes every crisis provides an opportunity to emerge as a stronger, more vibrant company or individual on the other side.

“Winners are not those who just get through it. You do have to get through it, but the winners are those who figure out how we can position the opportunity to make our company a lot stronger,” he says. “In Chinese, ‘crisis’ is made up of two characters: Danger and Opportunity. We all know ‘danger,’ but winners find the ‘opportunity.’”

During difficult times, employees look to leaders to fill-in-the-blanks with answers and reassurance. George advises leaders to take a team approach to solving problems.

“Don’t be Atlas, get the world off your shoulders,” he says. “Do two things — bring your teammates in your organization ‘real close around you to get the very best minds and best energy you can addressing the problems’ and ‘get everyone committed to solving them with you’ while getting to the real root causes of the problems.”

Beyond that, George urges leaders to establish an external support network — a person or group of people they can be totally open with and to bring perspective to a situation. It isn’t a secret that crises are the true test of leaders. And George believes most effective leaders don’t wait until they’re in charge to learn how to deal with crises. George says he has seen a number of leaders fail because they didn’t have prior experience in leading a crisis.

Overall, the key quality of good leaders is adaptability. George says his experiences, and the experiences of others, have proven to him, that you have to be in the game to learn.

“The worst decision I ever made is the one I didn’t make,” he shares. “A crisis is a real test of a leader’s courage. Leaders who aren’t willing to take a risk, that don’t have the courage, will surely fail.”

For more information, please visit www.billgeorge.org for videos, and activities. Also, look for the study guide in the back of the book. It’s a great tool for small groups to use in working through the lessons together.

Article By Paul J. Welsh

As a result, books about the great leadership successes draw us like magnets. But Tim Irwin, Ph.D., looks at the discussion of leadership from the opposite perspective—leadership failures. That’s what makes “DERAILED: Five Lessons Learned from Catastrophic Failures of Leadership” such a compelling book.

Irwin examines the collapse of some of the biggest names in business: Robert Nardelli at Home Depot; Carly Fiorina at Hewlett-Packard; Durk Jager at Procter & Gamble; Steven Heyer at Starwood Hotels & Resorts & Worldwide; Frank Raines at Fannie Mae; and Dick “Richard” Fuld at Lehman Brothers.

Irwin points out that these are people who have been very successful but ultimately were fired by their boards of directors.

As he writes in this book, “Derailment and lack of success are different.”

Irwin suggests that there are similarities in the reasons why all those leaders were ousted. In none of these cases was fraud involved. As leaders, Irwin says we should look at these similarities in evaluating our own performances. In truth, this book is as much about us as the leaders profiled he says.

The five lessons identified in the book are:
1. Character Trumps Competence
2. Arrogance is the Mother of All Derailers
3. Lack of Self-Awareness is a Common Denominator of All Derailments
4. We are Always Who We Are, Especially Under Stress
5. Derailment is Not Inevitable, but without Attention to Development, it is Probable.

The first lesson, “Character Trumps Competence” is a challenging statement that really touches all of the others at some level. “Character” as Irwin describes it is not stealing money or sleeping with your executive assistant. It is about things like authenticity. Irwin says the reason authenticity is so important is that in repetitive research we learn that people want a leader they can trust. And if you can’t get people to follow you, by definition you’re not a leader.

Other aspects of “character” are related to things that are lacking– lack of self-management, humility and courage.

Behaviors that derail “self management” include being easily angered, undisciplined and inflexible. In the case of “humility” the behaviors causing derailment include arrogance, self-promotion and dismissiveness. Finally, with regard to “courage,” those derailing behaviors include conflict avoidance, micromanagement and an excessive need for approval.

Even before reading this book, you can find free personal risk assessment tool at www.DerailedLeader.com and it’s worth a visit.

Article By Paul J. Welsh

Well I’ve got this guy I want you to meet. His name is George Cloutier. He’s a Harvard grad that Business Week dubbed a “Turnaround Ace” and his focus has always been on small business. Actually, you may not even need to hire him, just read his book.

His national best-selling book is called Profits Aren’t Everything, They’re the Only Thing. The book includes “The 15 Rules” that George Cloutier’s consulting firm has used to turn small businesses on life support into profit-making machines. His success with helping small businesses is immense.  In fact, in the first chapter of the book he talks about how his firm has helped more than 6,000 businesses in 300 industries. His company has identified more than $1 billion in additional profits for those clients.

So why wouldn’t every small business want to hire Mr. Cloutier’s consulting firm and get their share of the $1 billion in extra profits? Good question.  The answer is that these kinds of profits come with a price.

For example the book suggests that you should work seven days a week, never pay vendors on time and give up golf.  Are you ready to make those commitments or do they make you feel like maybe profits aren’t everything?

If these measures sound extreme, they are. Cloutier says you only have to make the hard choices if you want to be successful in business. If you want to have life balance, start a non-profit he adds.

The majority of Cloutier’s clients are family businesses. And two of his 15 Rules are specific to them: Love Your Business More Than Your Family and The Best Family Business Has One Member.  As harsh as that seems, Cloutier says too many family businesses mix family issues into the business and in the majority of situations they fail. The first of those rules states, “Your cell phone is for taking orders from clients NOT grocery lists. Weekends are for work. Pray at your desk if you must. Your business is not a part-time job. Be there or be broke.”

There is no doubt that much of Cloutier‘s advice is challenging and even scary.  Still, the book is both entertaining and thought provoking.

George Cloutier, a magna cum laude graduate of Harvard College and Harvard Business School, founded American Management Services in 1986. The company’s web address is www.amserv.com

Article By Paul J. Welsh

Interview was conducted by Jay Liebenguth

1. Is this book is going to be preaching to the choir about addressing environmental and social issues? Will it be a studied treatment of the issues or a piece of propaganda?

2. It takes a bold author to first thank the Forward writer Darryl Vernon Poole for comparing him to Rachel Carson and Malcolm Gladwell. Then, proceed to compare himself to George Orwell. If he’s that good I need to read on.

This book is the latest update of a book called World Inc. (2007) which has received significant acclaim. And, as president and founder of the American Hazard Control Group, Dr. Piasecki has been consulting with major corporations on environmental corporate strategy since 1981. So his opinions are worth hearing, worth reading.

“Competition has created an industrial underbelly of pollution, climate change, resource depletion, new forms of economic imperialism, and regional wars over water, clean air, and trees,” says Dr.Piasecki.

He contends that today’s businesses must take responsibility for leading in the areas of social and environmental reform.

You can almost hear businesses asking, “What’s in it for us?” And Dr. Piasecki has an answer for them. He explains how responding to social needs will open markets, generate profits, and win investment capital. The examples he profiles in this book are from consulting he has provided to clients like Toyota, Suncor Energy and Hewlett-Packard.

Dr. Piasecki is very pro-capitalism. He just sees the need for capitalism to change, saying that traditional capitalism may be getting a bit senile. He believes that both corporations and individuals will need to adjust their bearing in a new terrain. Competing on price and quality alone are not sufficient anymore. Businesses, large and small, must also put social needs into the equation.

He talks about The S Frontier which he observes is already here. It includes the severity of market conditions, the swiftness of information, and social response to capitalism. And according to Dr. Piasecki, if companies don’t adjust, he predicts that the top 300 multinational companies will undergo tremendous change, and only a minority will be in business a few decades from now.

This is a surprising book because the radical changes Dr. Piasecki describes actually grow out of strong business fundamentals. It’s an uplifting book that defines the future of leadership. And the arrogance that seemed to jump out of the book before the first chapter may be justified based on the thinking the book advances.

Article By Paul J. Welsh

Interview was conducted by Jay Liebenguth

“Give me a country that is at war because the last President has been shot and I’ll figure out something to do to make money,” says Smith who is author of RICHES AMONG THE RUINS—Adventures in the Dark Corners of the Global Economy.

In this new book, Smith recounts his experiences risking not only his money, but his life, in war zones, dictatorships, and crime-ridden capitals in countries like El Salvador, Nigeria, Turkey, Russia and Iraq.

Smith sounds like he has a risky life, risking not only his investments but his life. But he doesn’t see it that way. He says he is risk adverse which he defines as always having an exit strategy for most of the bonds he invests in. He suggests that any time you invest in something that looks like it’s going bad, you should head to the exit. You’re better off taking a loss and living to fight another day.

For Smith that strategy has served him well except when it came to Russia. He rationalized that Russia was too big for the World Bank and International Monetary Fund to let fail. In turn, he invested $20 million in Russian Government Bonds. But then on August 17, 1998 Smith says, “Russia gave the middle finger to the financial world and I was at the top of the finger.”

That lesson taught him to never bet on something just because it seems “too big to fail.” He contends that nothing—no company, business or country—is immune to failure. As examples in the United States he cites General Motors, AIG, Fannie Mae and Freddie Mac.

The first thing Smith will do when arriving in Damacus will be to try to identify a local partner he can trust. To find that person who can provide him with local insights he talks with everyone including the cab driver on the ride from the airport. But he says you need to be careful because resumes are more fraudulent today.

The countries that Smith predicts will be the rising stars for investors are Brazil, China, India and Russia in that order. He suggests if you’re buying a mutual fund you should look to see if those countries are included.

You can follow Smith’s thinking at www.richesamongtheruins.com

Article By Paul J. Welsh

Interview Conducted By Jay Liebenguth

The residential realtor says to the commercial realtor, “When are you going let me sell you a house? “

The commercial Realtor says, “Not until you figure out how to sell mine.”

The general contractor shakes his head and says, “I couldn’t wait for 2008 to get over until I saw 2009.”

This is a true story from October of 2009 Chamber function. It’s not funny like those priest, rabbi and Baptist minister stories. No, there’s been little to laugh about in the real estate and construction industry for the past 18 months.

So why is general contractor Gerry Crawley upbeat? His company, ARC General Contracting, currently has 19 jobs in progress and he declared “The recession is over” on March 6 while his business was at a low point that paralleled most of the construction industry.

“When the whole world went off its axis, nobody knew what the fallout was,” Crawley said. “You get immobilized by fear. It makes you reactionary.”

What’s more, employees can smell fear and then they become immobilized according to Crawley. They worry about what is going to happen.

Soon, however, he realized during last year’s decline that he was not facing a business crisis but rather a crisis of faith. Even though ARC was listed as a Top 25 General Contractor in the Kansas City Business Journal he began to question how good they really were.

He surmises that the economy caused every entrepreneur to do that kind of soul searching and begin to understand that the ground rules have changed.

“You can bury your head in the sand or make a commitment to change,” Crawley says.

He cited Dan Lowe of RED Development as saying, “This is the time to make relationships.”

For Crawley, change began when he brought in a business coach named Caroline Smith. She helped Crawley examine who ARC was as a business which led to a one-page strategic business plan that he refers to regularly. This streamlined document made the company’s objectives more clear. He now shares the Plan and the company’s financial results at least quarterly with all of his employees. That diminishes fear and builds trust.

“You work to build trust,” Crawley said. “It’s hard to make a profit without it.”

“Once we decided not fail, things got better,” he said. “We kept people working and that’s something good.”

Crawley has a business philosophy that has become the company’s motto:  “Service Over Self-Interest.”

“Whatever we do, I’m simply a steward of the client’s money,” he says. “We’re just like a big ATM machine.”

Now that’s a funny line.  It’s easier to laugh when your company is stronger. Crawley has discovered that. And ARC is stronger.

Article By Paul J. Welsh

Interview was conducted by Jay Liebenguth

At all levels of government and at most dinner tables, the high cost of energy and the options possible from the renewable sources of solar and wind are familiar conversations.  The change in recent years, however, is those conversations have become increasingly the focus of policy and action, not just topics conjecture and speculation.

SunCarrier, a division a+f GmbH, a company in southern Germany, has been researching Kansas City and the region as sites for installation of their solar technology.  Marc Reimer, Head of Project Development, explained that his company has been a leader in solar technology and efficiency for six years with a new fashion of solar installation that has shown great success in Germany and Spain.  They now seek to try that same technology in what he terms as “less than optimal conditions,” namely the winters of Midwestern United States.

Germany has become the world’s leader in solar technology since its beginnings in the early 80’s and with dramatic growth happening at the end of 1990 after the creation of major incentives from the German government that made solar products “financially very interesting” according to Reimer.

Germany, like many countries, uses a system called “Feed-in Electricity Tariffs” to encourage the use and creation of new energy technologies by paying subsidies, in differing amounts dependent upon which renewable source from which the energy is created, to the utility companies, who are then obligated to buy power created from those sources of energy.  Reimer explains that producers of power from renewable sources, including both industry and private residences, sell their power to the electrical “grid” thus recouping the cost of the initial investment which typically takes just 8-10 years, even without incentives in place.  With energy costs rising at a level of 10 percent each year for the last 10 years, the creation of power from alternative sources is very attractive.

Reimer believes that even without the incentives people will gravitate increasingly toward installing renewable energy creation technologies; because after the initial investment is recovered it is all “free energy,” except for the maintenance.

SunCarrier has created a new more efficient solar technology with a much smaller geographic “footprint” and it works both differently and better than traditional solar capture methods.  Reimer explains there are two philosophies with “tracked” systems: single axis and dual axis. SunCarrier utilizes the single axis system which he describes as “completely reliable.”  Their technology turns on an east to west track “axis” to best capture the sun’s rays regardless of the season making it 35% more productive than fixed systems.   During the night hours it, very slowly and with great efficiency of energy consumption, spins back to its starting position using an electronic clock to move the system precisely into place based on solar movement patterns.  Additionally, their system has been built to withstand the conditions of high wind and snow load that are the most difficult for tracking systems to stand up against. The focus for SunCarrier, Marc relates, is not looking at their short term ROI, but in that they produce energy in the worst weather and do so for decades, 20, 30, 40 years, with only upkeep costs after installation cost recovery.

Germany’s experience has been already been replicated in Spain, a primary solar market, which followed largely the same pattern as Germany with incentives as well as Spain have a similar availability of raw sunlight that is also comparable to here in Kansas.  Both Germany and Spain are on target to have 20% of their energy needs met by renewable sources by 2020, putting them way ahead of the U.S. and it is already a 235 billion (Euros) industry in Germany creating a large number of jobs.

With a 235 billion (Euros) industry creating those alternative energy “green jobs” so much the hot-topic of conversation here in the U.S., can German and Spanish style incentives be far behind?  Reimer believes no.  He also believes the most likely source for those incentives will be state governments rather than the federal level and many states are already doing so.  States are best placed to move forward with the environmental and health based initiative dollars that will bring technologies like theirs quickly into place, according to Marc.

Where do Kansas and the Midwest fit into this you may ask?  Isn’t this technology best suited for the deserts of Arizona and California?  Reimer says yes and no.  First, yes, for optimal weather conditions, the desert is the obvious choice; they already have experience in Dubai and the Middle East.  However, there are, in SunCarrier’s opinion, great reasons for being here in the Midwest.  First, the competition is not comparable to those areas.  Second, they want to be able to show what their technology can do in difficult weather conditions including heavy snow and wind loads.   He says those organizations in Kansas City, Lincoln and Omaha have been very receptive to both the idea and their technology and SunCarrier has been impressed by their receptiveness.

He says they have several options for their first installation in the region and already have crafted a team of partners.  Their legal team is Husch, Blackwell and Sanders of Kansas City and they have supplier and subcontractor relationships established.  NPPD (Nebraska Public Power District) in Norfolk, Nebraska is the probable site of their first regional installation. They have also met with other utilities including OPPD (Omaha Public Power District) as well as product developers at private companies like Chevron, who is a worldwide player in solar.  He says they have been in close contact with U.S. manufacturing like Baylin Manufacturing in Columbus as well as Wellman, Inc., and their modules will most likely be purchased from Sun Power in San Francisco.

Many people are surprised by the idea of solar power generation in Kansas; after all, wouldn’t wind be more likely?  Reimer explains that solar and wind are not in competition for the creation of renewable energy; in fact, they are highly complementary systems.  In fact, he explains, those who currently have wind generation systems connected to the grid make ideal candidates for adding solar generation.  The systems work separately but effectively side-by-side and don’t meet the energy needs all alone.

Wind is most efficient at night and during bad weather when solar is not available.  Yet, the highest energy demands come during times when it is not windy. Wind is absent specifically when it is hot and clear with lots of sunshine present and our energy consumption demands sky-rocket due to the twin needs of air conditioning and refrigeration.   Even without those high pressure calls for power, our energy usage is typically at its highest during the morning and late afternoon, precisely when solar tracking provides the most wattage.  Wind is, by its very nature, difficult to predict yet there are long-standing, predictable solar tracking models to use for creation of calculations for solar energy production.

Finally, he points out the advantages inherent in solar as compared to wind, first and foremost being the environmental advantages with wind having a higher negative environmental impact on a number of fronts.  First, visually wind towers impact the environment by standing typically 200 feet or more in height; second, the turbines create shadings from the blades; third, the noise created by the spinning turbines is often cited as a deterrent; and fourth, the maintenance is much more intense on the wind structures.  The turbines are typically not found in areas where cranes that can reach 200 feet, as required to do the repairs, are located so they have to be transported in resulting in much longer downtimes, plus at costs approaching $250,000 (USD) for repairs.

Contrast that to, if there are issues solar can be back up and producing with less than 3 hours of repair.  This points to another advantage of solar. Namely, the technology can be put into place in 2 to 3 weeks in order to create two megawatts of power; a huge advantage for an energy dependent and cost sensitive public.

A big dollar industry creating thousands of good-paying jobs using parts from American manufacturers resulting in the creation of renewable energy reducing our dependence on foreign sources of fuel that contaminate our planet? It sounds like solar is a match made in the heavens yet within our grasp.

Interview was conducted by Jay Liebenguth

4:53 a.m. August 18, 2009

Have You Ever Been Struck By Lightning?   Have you ever experienced that “Mojo Moment” in your business?   Can you name the time and place?  Can you name the result, how it was handled, and whether you actually achieved anything based on that instant?

Most people describe this as the “aha,” but it’s much bigger than that.  It is a level of inspiration that is of biblical proportions, although others might describe it in more easily referenced sexual terms.  The “o” in mojo is a great description because once you’ve achieved it, you know it and there is no question.  And, there are those who can fake it, often fairly convincingly.  Unfortunately, I don’t think very many business leaders or even very many businesses have ever experienced that moment or the feeling and opportunity it can create.

I will tell you too, it’s like a lightning strike.  It is typically unexpected.  You often can’t plan for it.  Most people spend their lives trying to avoid it. You don’t know when or where it will strike.  And, it’s over even before you know it.  However, the “mojo” instant of power can provide a positive jolt with cosmic effects, if you are able to harness the energy.  The most fun and funny part is that some people have the knack, and the “mojo moment” exponentially more often than others.  In addition, you can easily see the smile and the confidence it creates.

Can you survive as a business without one?  Sure.  Most do.  Can you thrive?  Likely not nearly as well as you would if you had that spark of creativity, the spark of vision, the one lightning strike where everything comes together in a magical way.

I recently read an SBA report on the fastest growing businesses in the U.S.  There were a number of key takeaways.  One of the most important is the entrepreneurial culture of the cities containing the most “fast” growing businesses.  The report was NOT about culture, yet if you know some of the higher ranking cities, you’ll see that a cultural open-mindedness is a key element in growth.  It’s also a requirement in achieving the spark that could change the life of your business.

The other interesting element is that there is no particular industry where high growth companies alone reside.  This means that everyone can achieve the “Mojo Moment” if they only would.

Clearly, having the spark and harnessing the energy created are two very different things.  Research would also bear out the fact that in many cases, there is little practical correlation between the skills required to achieve both.  That should not discourage you.

Stay tuned over the next few weeks and months as we highlight the companies, the leaders, and the business results of those who really have the juice.  They are not only taking delight in its energy, but also taking it to the bank.  This is about honoring those who are doing well, giving those who are trying visibility and a “chance,” and also sharing the journey with others so everyone can learn.  It’s a moment that should be celebrated, shared, and repeated early and often.

For more about great business, great vision, great leadership, profits, and the “Mojo Moment,” stay tuned, and let us know if you or someone you know has a story to tell.

Deer Creek Tower - Suites and Services

Even during the best of times, small businesses in America represent the majority of all new U.S. job growth.  In fact according to the Small Business Administration, most net job loss occurs within firms that are greater than 500 employees.

In a recent Fox News Sunday interview, Steve Odland, Chairman and CEO Office Depot, told host Chris Wallace that, “All net job creation happens in small business.”  This is at least in part because many of the largest U.S. corporations have matured.  Prior to last year’s recession, job growth at many major corporations had slowed or evaporated in corporate America.

Over the past year, the slow churn of persons leaving larger companies to become entrepreneurs, or to go to work for smaller organizations, has grown from a steady stream to an avalanche.

The reality is, the ranks of the temporarily unemployed are growing.  These days, temporary unemployment all too often is turning into long-term unemployment or underemployment.

Is our glass half full or half empty?   The reality, I guess, is both.

Just when you begin to bemoan the present employment situation, your thoughts are illuminated by the present spark of American innovation and entrepreneurship.

A recent article in Wired magazine titled, “Go Ahead….Fire Me,” stated that after experiencing layoffs, most able bodied American workers will always be able to take their skills elsewhere.  It is a recession’s way of leveling the playing field.

With stock dividends, the companies with less new growth opportunities and fewer new ideas must purge capital in the form of (theoretically) ever growing dividends.  The companies with greater sources of new business ideas and planned new business growth are capital hungry, and retain their dividends to invest in the new ideas.

With people, it’s the same.   Companies who cannot, or should not afford to retain the best and the brightest, naturally lose them to better, more fulfilling opportunities elsewhere.

See the quote below.  And, while it is dated, I still believe it today.  Yes, a lot has changed it was written.  At that time, unemployment was likely hovering below five percent.  It’s twice that today.

Yet, the best people will still be seen inside the best companies, even if the companies have only a few employees.  It’s the American way.  It’s the American dream.  And, at this point, it’s the American reality.

Thoughts for the Day

“Five years from now, you will look around and realize that the best employees can be found working for the companies who were paying the most attention.”

Dave E. Anderson

Alpha Scouts^™ LLC

July 15, 2005

It seems like companies take a familiar path.

These days, new companies get their start over a cup of coffee at Starbucks, on the sidelines of a junior league soccer match, or most recently by the fireplace at Panera.   I remember vividly a set of conversations I overheard in a coffee shop a few wild business cycles ago.  It was like something out of Silicon Valley, with “Camouflage Man,” a man dressed head to toe in tree bark hunting clothes, closing deals in a coffee shop with the “suits.”   This was not in San Jose, Boston, or New York.  It was in West Des Moines, Iowa.

Many companies follow a similar path on their way to their first office suite.  After they graduate from Starbucks, they end up in someone’s (or sometimes multiple someone’s) basement(s), garage, or spare bedroom.

At some point, they outgrow their surroundings.

I love to hang out at my favorite coffee shop, and despite having a wonderful office, I still can think better outside the office… but that’s another blog post.

Deer Creek Tower - Executive Center

If you’re like me…. the graduation can be paced… I found a great executive suites building more than four years ago, and we have no intention of leaving it any time soon.

What does it provide?   In short, credibility, camaraderie, a credible business address, and creature comforts.   Listen to the following post from our landlord, David Rayl, serial entrepreneur and owner of Executive Suites and Services in Leawood, Kansas  www.suitesandservices.com.

Take care, and happy hunting… for great new ideas, and for great new surroundings.   See you at the bagel counter.