The other day we learned of renewed efforts promised by the Obama Administration to stimulate small business.This week, they announced some plans to sweeten guaranteed loan programs. The administration is allowing a few weeks for comments before finalizing these details.The SBA will raise loan limits from $2m to $5MLocal banks…
Many of you reading these pages have heard my refrain that "Incentives are the cornerstone of life", a mantra preached by Steven Levitt & Co. in their landmark book, Freakonomics. Their blog calls it "the hidden side of everything." Welcome to SuperFreakonomics, the newest contribution to their study of incentives…
I regularly read the Corner Office column in Sunday's NY Times because the CEOs being interviewed invariably identify important leadership components that are valuable reminders of issues often overlooked. In his recent interview, Tim Brown, CEO of IDEO, reminds us that the questions are often more important than the answers.…
Tomorrow, the Obama Administration is scheduled to announce new initiatives to spur small business lending. Among the initiatives are increasing limits for SBA loan and make it easier for smaller banks to access TARP money. As we know, the SBA estimates that small business creates 60-80% of new jobs. So,…
At first, I figured it was too late to talk about surviving the economic storm we’re in … and then, I thought, hey, this isn’t over.
Maybe the sense of impending doom has dissipated but the reduced level of business activity and an increasing sense of frugality in a buyer-dominated market are going to be our unbidden passengers for quite a few more miles.
“Let us go into the storm … and through the storm,” said Winston Churchill as he prepared England to confront the Nazi regime in World War II.
As it applies to our current business climate, I thought this might be a touch of hyperbole, but then I recalled that Churchill’s odyssey raged for five years, not just the single year we’ve navigated since September 2008.
[pullquote]“Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.” ~ Winston Churchill[/pullquote]
Imagine Churchill, FDR and others slogging for five dreadful years through the greatest threat to civilization we have known.
So, how do we get through four more years of this business cycle, a time frame proclaimed by many before employment gets back to 6 percent and more customary growth trends resume?
Consider these few concepts inspired by the triumph and tragedy of those years: (more…)
I have mentioned on many occasions the Corner Office series in the Sunday NY Times which features an interview by Adam Bryant with a prominent CEO. The questions are consistent but invariably reveal an important reminder of key elements of leadership.
In a recent interview with Jim Rogers, CEO of Duke Energy, Rogers explained how important it is to be on the front lines, to employ the MBWA concept that keeps you in touch with what’s REALLY going on. He also emphasizes a point made repeatedly in Sword Tips … that a strong leadership team is an invaluable cornerstone of successful leadership. In an unusual reference, Rogers mentions it in the context of time management … that he can’t get done what’s on his plate unless he has built a trusted team, clearly shared the company strategy with them and demonstrates his trust in their ability to succeed.
A final reminder is a bugaboo for most business leaders … (more…)
I have always advocated the "try 'em to see if you like 'em" theory of hiring whenever you can pull it off. Business Week has written this week about Test Drives in the C-Suite, which suggests a growing trend toward a "temp-to-hire" process to see if an interim executive is the…
I saw this recent article which is a unique take on explaining the value of business plans. While I firmly believe that an unwritten plan is mostly a morass of untested ideas and random thoughts, following a methodical approach to building your business will pay great dividends.It simply doesn't work…
The sudden resignation of Ken Lewis from Bank of America highlights, yet again, the risks that family and other businesses take in failing to prepare for the inevitable succession of leadership.
A succession plan doesn’t mean you have all the work done and the perfect successor is comfortably waiting in the wings, although that would be desirable. It does mean, at a minimum, that you have an interim CEO in place who can hold down the fort while certain details are worked out and long term plans are implemented. Developing an emergency plan also gives the Board or family a chance to discuss these often thorny subjects without stockholder worries, employee hand-wringing or the emotional burden that comes with a fallen leader.
Often, this process highlight gaps within the family or board about the suitability of a particular successor. (more…)