Category Archives: Leadership

10 Lessons to Learn from Jeff Bezos

Posted on by

“You can be grinding for four years with no results and, in the 5th year, become the biggest thing on the planet. The power of not giving up is real.” ~ Jeff Bezos

Here are 10 Incredible Lessons from Jeff Bezos:

1. Customer Obsession: “Start with the customer and work your way backward.” Bezos emphasizes the importance of focusing on customer needs and satisfaction above all else. Amazon’s vision: “To be earth’s most customer-centric company.”

2. Long-term Thinking: Bezos encourages a long-term perspective, often at the expense of short-term gains. He believes that truly great businesses are built over decades rather than years.

3. Embrace Failure: Bezos recognizes that innovation and experimentation come with the risk of failure. He encourages taking calculated risks and learning from mistakes. Amazon has benefitted from this mindset, part of its DNA and culture.

4. High Standards: Bezos insists on maintaining high standards in all aspects of the business, from products and services to hiring and decision-making. He is known for banning PowerPoints and unnecessary meetings to force a high standard of work.

5. Innovate Continuously: Amazon’s success is built on a relentless innovation process. Bezos encourages constant innovation to stay ahead of the competition and meet evolving customer needs. Pushing for “same-day deliveries” is an example of this.

6. Invent and Simplify: Bezos advises his team to invent new solutions and simplify existing processes. This fosters a culture of continuous improvement and efficiency.

7. Frugality: Bezos believes in controlling costs and avoiding unnecessary expenses to maximize efficiency and maintain a lean business model. Large corporations become more efficient over time if they relentlessly focus on staying lean.

8. Think Big: Bezos encourages ambitious, audacious thinking. He believes that thinking small limits potential and that bold ideas can lead to groundbreaking success.

9. Build a Great Team: Surround yourself with talented, passionate individuals. Bezos emphasizes the importance of hiring and retaining top-tier talent. As an entrepreneur, you need to attract people smarter than yourself to work for you.

10. Stay Agile: In a rapidly changing world, Bezos advises businesses to remain flexible and adapt to new opportunities and challenges swiftly. Amazon AWS is the prime example. It was a bold bet that few thought would pay off. Today, AWS is on its way to $100 billion in sales.

Source: Invest In Assets | Stock Market Investing  https://x.com/InvestInAssets/status/1718559795907907679

China’s Challenges According to Jamie Dimon

Posted on by

China’s Communist Party leaders believe that America is in decline. They believe this not only because their country’s sheer size will make them the largest economy on the planet by 2030 but also because they believe their long-term thinking and competent, consistent leadership have outshone America’s in so many ways, writes Jamie Dimon, CEO, JP Morgan in his 2020 annual letter to shareholders.

The Chinese see an America that is losing ground in technology, infrastructure and education – a nation torn and crippled by politics, as well as racial and income inequality – and a country unable to coordinate government policies (fiscal, monetary, industrial, regulatory) in any coherent way to accomplish national goals. Unfortunately, recently, there is a lot of truth to this, in the next 40 years, according to Dimon.

In recent years, China has been dealing with many challenges to its economic expansion, including pandemic-related curbs, an energy crunch, and an unprecedented crackdown on private enterprises. These challenges and the Communist government’s reaction led to 4% growth in China for the fourth quarter, according to JP Morgan.

Additionally, the government actions against COVID-19 have also kept domestic demand for goods and services suppressed, putting a lid on imports.

However, Dimon opines that “China will have to confront some serious socioeconomic and geopolitical issues”:

  • The Chinese lack enough food, water and energy to support their population;
  • Pollution is rampant;
  • Corruption continues to be a problem;
  • State-owned enterprises are often inefficient;
  • Corporate and government debt levels are growing rapidly;
  • Financial markets lack depth, transparency and adequate rule of law;
  • Income inequality is higher than in the rest of the world; and
  • Their working age population has been declining since 2012.
  • Capital outflows has caused the regime to tighten capital controls.
  • Lower rates make Chinese financial markets less attractive to global and domestic capital.

Additionally, China will continue to face pressure from the United States and other Western governments over human rights abuses (especially against the Uyghur population), democracy and freedom in Hong Kong, and activity in the South China Sea and Taiwan. The Uyghurs are an ethnic Muslim minority in China that have allegedly endured forced labor and other human rights violations.

Autocratic and authoritative leadership works well when you can manage top down and you are starting from a very low base. China’s recent success definitely has its leadership feeling confident.

Regardless of Chinese Communist Party’s opinions regarding its inevitable economic rise, only 100 million people of its more than 1.4 billion population in China effectively participate in the nation’s one-party political system. No other developed nation has such low participation. Growing middle classes almost always demand political power, which helps explain why autocratic leadership almost always falters in a larger, more complex economy.

Under autocratic leadership, a major risk is the allocation of economic assets (capital and people), which are, over time, used to further political interests, leading to inefficient companies and markets, favoritism and corruption.

In addition, autocratic leadership diminishes the rule of law and transparency – damaging the ability to create a well-functioning financial system (this certainly restricts the internationalizing of the RMB).

Disruption of trade is another risk China faces. The United States’ trade issues with China are substantial and real. They include:

  • Theft or forced transfer of intellectual property;
  • Lack of bilateral investment rights, transfer of ownership or control of investments;
  • Onerous non-tariff barriers;
  • Unfair subsidies or benefits for state-owned enterprises; and
  • Lack of rapid enforcement of any disagreements.

China will only comply with international trade agreements and only do what is in its own self-interest. Near term, we should expect challenge and conflict to characterize the relationship between China and the West over a range of economic, human rights and strategic issues.

There may, however, be areas where we will simply never agree. As the two largest economies in the world, China and the United States should continue to have a long-term interest in collaborating where we can on critical global issues, including climate change, global health and stability on the Korean Peninsula.

China does not have a straight road to becoming the dominant economic power. To put this in perspective, America’s GDP per person in 2019 was $65,000 and China’s was $10,000. Even if we do a rather poor job at managing our economy (growing at 2%), our GDP per person in 20 years would be $85,000. And if the Chinese do a good job managing their economy, their GDP per person in 2040 would still be under $35,000. While China is well on its way to becoming a fully developed nation, it may face more uncertainty and moments of slower growth in the future (like the rest of us) than in the past.

For the near term, if China and the United States can maintain a healthy strategic and economic relationship, it could greatly benefit both countries – as well as the rest of the world.

Another factor is the Chinese currency, the renminbi (RMB). The renminbi cannot be freely moved around the world; it can leave China only in limited amounts and can be invested only as the Chinese see fit. Thus the renminbi is a long way from replacing the U.S. dollar as the world’s reserve currency.

The Chinese currency is subject to their internal politics, laws and regulations. While the Chinese have done a good job building their economy and are slowly moving toward a more transparent society and financial system, they are a long way from having a currency that is fully “convertible” like the U.S. dollar.

References:

  1. https://reports.jpmorganchase.com/investor-relations/2020/ar-ceo-letters.htm
  2. https://www.wsj.com/articles/slow-meltdown-of-china-economy-evergrande-property-market-collapse-downturn-xi-cewc-11640032283
  3. https://www.msn.com/en-us/money/markets/could-chinas-economy-collapse/ar-AAPypxS
  4. https://warontherocks.com/2021/12/could-chinas-massive-public-debt-torpedo-the-global-economy/

Commercial real estate bust.

While the U.S. economy is likely to grow 6% in 2021 and 4% in 2022, the highest rate in decades, analysts project.

China’s economy has been faltering despite it’s exceptionally strong trade surplus and it’s authoritarian government’s heavy hand on COVID-19.

General Colin Powell’s 13 Rules

Posted on by

General Colin Luther Powell (April 5, 1937 – October 18, 2021), the first African American Secretary of State, died at the age of 84. General Powell was a retired four-star Army general who served as National Security Advisor, Chairman of the Joint Chiefs of Staff, before becoming Secretary of State.

General Powell’s 13 Rules are listed below.  They are full of emotional intelligence and wisdom for any leader.

  1. It Ain’t as Bad as You Think!  It Will Look Better in the Morning.  Leaving the office at night with a winning attitude affects more than you alone; it conveys that attitude to your followers.
  2. Get Mad Then Get Over It.  Instead of letting anger destroy you, use it to make constructive change.
  3. Avoid Having Your Ego so Close to your Position that When Your Position Falls, Your Ego Goes With It.  Keep your ego in check, and know that you can lead from wherever you are.
  4. It Can be Done. Leaders make things happen.  If one approach doesn’t work, find another.
  5. Be Careful What You Choose. You May Get It.  Your team will have to live with your choices, so don’t rush.
  6. Don’t Let Adverse Facts Stand in the Way of a Good Decision. Superb leadership is often a matter of superb instinct. When faced with a tough decision, use the time available to gather information that will inform your instinct.
  7. You Can’t Make Someone Else’s Choices.  You Shouldn’t Let Someone Else Make Yours. While good leaders listen and consider all perspectives, they ultimately make their own decisions.  Accept your good decisions.  Learn from your mistakes.
  8. Check Small Things. Followers live in the world of small things.  Find ways to get visibility into that world.
  9. Share Credit.  People need recognition and a sense of worth as much as they need food and water.
  10. Remain calm.  Be kind.  Few people make sound or sustainable decisions in an atmosphere of chaos.  Establish a calm zone while maintaining a sense of urgency.
  11. Have a Vision. Be Demanding.  Followers need to know where their leaders are taking them and for what purpose.  To achieve the purpose, set demanding standards and make sure they are met.
  12. Don’t take counsel of your fears or naysayers.  Successful organizations are not built by cowards or cynics.
  13. Perpetual optimism is a force multiplier.  If you believe and have prepared your followers, your followers will believe.

General Colin Powell’s rules are short but powerful.  Use them as a reminder to manage your emotions, model the behavior you want from others, and lead your team through adversity.

References:

  1. https://executiveexcellence.com/13-rules-leadership-colin-powell/

Systemic Racism and Unconscious Bias in America

Posted on by

“I look to a day when people will not be judged by the color of their skin, but by the content of their character.” Reverend Dr. Martin Luther King, Jr., “I have a dream speech”

Over the past centuries, Americans have permitted systemic racism and unconscious bias to affect how an entire race and class of people are mistreated – by the justice system, by the penal system, by the social welfare system, by the education system, by the financial system, and the list goes on – because of the color of their skin, stated Chamath Palihapitiya, founder and CEO of Social Capital. In no reasonable, moral worldview is this acceptable.

The salient point is that equality, for all Americans, is an essential pillar of the US democracy and its capitalist economy…not a discretionary feature that can be arbitrarily turned off and turned on based on the whim of public and private leaders.

Conversely, we, as a nation, can’t fix what we don’t acknowledge and we need to acknowledge that systemic racism and unconscious bias have happened and continues to happen, and begin the hard work of finding solutions.

One solution

“We can’t solve problems by using the same kind of thinking we used when we created them.” Albert Einstein

In the past eighteen months since George Floyd murder at the knee of law enforcement, many private sector companies are embracing their role in creating more equitable workplaces, addressing societal racial inequality and even donating to causes working to end racism. Robert F. Smith, Founder, CEO and Chairman of Vista Capital, argues that if we want to see lasting, meaningful change, the private sector’s efforts to address structural racism, we need the private sector to step up and deploy “permanent capital” — meaning investments and commitments that are scalable and focused on the long-term. 

Specifically, companies should designate 2% of their yearly earnings to closing racial opportunity gaps, diversifying their boards and pension managers, making higher education more affordable, and addressing disparities that they’re uniquely qualified to help solve.

For example, telecommunications companies have a “special responsibility to end connectivity deserts” where one in three Black households have no broadband internet or computer access, according to Smith.

Health care companies can work to address racial health inequities, and software companies can make affordable tools to help Black sole proprietors and small business owners better handle payroll and customer acquisition. 

“It is all too easy to let the urgency of a moment fade away with little to show for it,” Smith said. “Let’s meet this moment. We have the tools, the technologies and the access to capital to do it. All we need is the willpower to see this through.” 

References:

  1. https://www.socialcapital.com/annual-letters/2020
  2. https://www.washingtonpost.com/opinions/2020/07/15/how-companies-can-make-practical-commitments-achieve-economic-justice/

Humble Leaders Make the Best Leaders

Posted on by

“A great man is always willing to be little.” Ralph Waldo Emerson

One of the most important traits of top leaders and performers in any organization is humility, according to an article written by Jeff Hyman for Forbes. Yet, humility is not typically the first trait that comes to mind when you think about great business leaders. The idea of a humble, self-effacing leader making the best leader for an organization doesn’t come to mind.

Humility is defined as the act of being humble and as the opposite of narcissism.

“A number of research studies have concluded that humble leaders listen more effectively, inspire great teamwork and focus everyone (including themselves) on organizational goals better than leaders who don’t score high on humility,” Hyman writes.

In the book Good to Great, author Jim Collins found two common traits of CEOs in companies that successfully transitioned from average to superior market performance: “humility and an indomitable will to advance the cause of the organization”.

Further, according to research cited in the Journal of Management, “humble leaders enhance team collaboration, information sharing, and joint decision-making. After examining 105 small-to-medium-sized companies, the researchers discovered that humility and leadership had profound effects on performance. Another study that analyzed nearly 100 business leaders also showed increased team effectiveness when humility and leadership existed side-by-side.”

A recent Catalyst study shows that humility is one of four critical leadership factors for creating an environment where employees from different demographic backgrounds feel more valued and included. In the survey, they found that when employees and team members observed altruistic or selfless behavior in their leaders, they performed measuredly better. The factors are characterized by:

  1. Acts of humility, such as learning from criticism and admitting mistakes;
  2. Empowering followers to learn and develop;
  3. Acts of courage, such as taking personal risks for the greater good;
  4. Holding employees responsible for results.

“Rather than telling employees how to do their jobs better, start by asking them how you can help them do their jobs better.” Daniel Cable, author of Alive at Work

The study raises one universal implication: To promote inclusion and reap its substantial rewards, leaders should embrace a selfless, servant leadership style. Here are the practices to promote inclusivity at one company, Rockwell Automation:

  • Share your mistakes as teachable moments. When humble leaders share their mistakes, they create a culture of continuous learning and growth.
  • Engage in dialogue, not debates…to truly engage with different points of view. Inclusive and humble leaders suspend their own agendas and beliefs
  • Embrace uncertainty. When leaders humbly admit that they don’t have all the answers, they create space for others to step forward and offer solutions.
  • Role model being a “follower.” Inclusive leaders empower others to lead. 

Secret sauce of humble leaders

“Rather than calling attention to one’s self, humble leaders readily acknowledge the contributions and greatness of others. Instead of constantly showing how right they are, humble leaders look at their weaknesses and work on their areas for personal improvement.” Bold Business

Humble leaders understand that they are not the smartest person in every room and know how to get the most from their people and teams. “They encourage people to speak up, respect differences of opinion and champion the best ideas, regardless of whether they originate from a top executive or a production-line employee.”

When a leader works to harness input from everyone, other executives and line managers emulate the leader’s approach, and develop an internal culture of getting the best from every team and every individual takes root.

Additionally, when things go wrong, humble leaders admit to their mistakes and take responsibility. When things go right, they recognize their people and shine the spotlight on others.

Media and society tends to trumpet and “to be impressed by charismatic candidates with powerful personalities and a commanding presence”, according to Hyman.  Instead, Hyman’s advises managers during the hiring process to “search for quiet confidence, humility and a focus on others”.

In short, when leaders are humble, show respect, and ask how they can serve employees and team members to perform better, the outcomes can be outstanding and provide a much better recipe for success.

References:

  1. https://hbr.org/2014/05/the-best-leaders-are-humble-leaders
  2. https://www.catalyst.org/research/inclusive-leadership-the-view-from-six-countries/
  3. https://hbr.org/2018/04/how-humble-leadership-really-works
  4. https://www.forbes.com/sites/jeffhyman/2018/10/31/humility/?sh=33d404041c80
  5. https://www.boldbusiness.com/human-achievement/humility-leadership-combination

Bill Campbell – Trillion Dollar Coach

Posted on by

“In business, compassion is a key factor to suc­cess.” Bill Campbell

‘Bill’s passion for innovation and teamwork was a gift to Apple and the world’. Tim Cook, CEO, Apple

‘Bill shared his wisdom generously, expecting nothing back but the joy he got from teaching others.’ Sheryl Sandberg , COO, Facebook

Bill Campbell helped to build some of Silicon Valley’s greatest companies — including Google, Apple, and Intuit — and to create over a trillion dollars in market value. Campbell believed that teams, not individuals, are the fundamental building blocks of organizations. Leaders can help their team be more productive, more innovative, and just plain happier by leading like a coach, not just a manager.

A former college football player and coach, Bill mentored visionaries such as Steve Jobs, Larry Page, and Eric Schmidt and coached dozens of leaders on both coasts. When he passed away in 2016, “the Coach” left behind a legacy of growing companies and successful people, and an abundance of respect, friendship, and love.

Eric Schmidt, Jonathan Rosenberg, and Alan Eagle experienced firsthand how Coach Bill built trusting relationships, fostered personal growth—even in those at the pinnacle of their careers—inspired courage, and identified and resolved simmering tensions that inevitably arise in fast-moving environments. To honor their mentor and inspire and teach future generations, they have chronicled Bill Campbell’s wisdom in the guide entitled Trillion Dollar Coach: The Leadership Playbook of Silicon Valley’s Bill Campbell.

Trillion Dollar Coach is a guide for bringing out the best in others and teams, for being simultaneously supportive and challenging, and for giving “more than lip service to the notion of putting people first”.

“A coach is someone who tells you what you don’t want to hear, who has you see what you don’t want to see, so you can be who you have always known you could be.” Tom Landry, former NFL Dallas Cowboy’s Coach

Good coaches employ encouragement, honesty, and caring to help every team member flourish. And according to Bill Campbell, business leaders should do the same, infusing their workplaces with compassion and people-first values that inspire employees to do their best work—and love their jobs.

Based on interviews with more than eighty people who knew Bill Campbell, Trillion Dollar Coach explains the Coach’s principles and illustrates them with stories from the companies and people with whom he worked and coached. The result is a blueprint for forward-thinking business leaders and managers that will help them create higher-performing and faster-moving teams and companies.

“Bill was the greatest executive coach the world has ever seen,” according to the authors. He coached executive leaders and also coached entire teams as a group coach. In the technology sector, innovation and speed are paramount, according to the authors. It is high-performing teams that lead to success.

“He always gave you a sense of perspective…what really matters at the end of the day is how you live your life and the people in your life.”

Bill cared about people. He treated everyone with respect, he learned their names, he gave them a warm greeting. He cared about their families, and his actions in this regard spoke more loudly than his words. “He cared about the whole you,” says Ruth Porat, Google’s CFO.

Bill would start meetings by asking about a colleague’s family and weekend and talking about his own. He always gave you a sense of perspective. That whatever you were doing was important, but he showed you that what really matters at the end of the day is how you live your life and the people in your life. It provided his coachees a respite in a busy day and a chance to ease their work-family conflict at least momentarily.

Bill made it okay to bring love to the workplace. He created a culture of what people who study these things call “companionate” love: feelings of affection, compassion, caring, and tenderness for others, according to the authors. He did this by genuinely caring about people and their lives outside of work, by being an enthusiastic cheerleader, by building communities, by doing favors and helping people whenever he could, and by keeping a special place in his heart for founders and entrepreneurs.

Bill Campbell’s Manifesto:
 
People are the foundation of any company’s success. The primary job of each manager is to help people be more effective in their job and to grow and develop. We have great people who want to do well, are capable of doing great things, and come to work fired up to do them. Great people flourish in an environment that liberates and amplifies that energy. Managers create this environment through support, respect, and trust.
 
Support means giving people the tools, information, training, and coaching they need to succeed. It means continuous effort to develop people’s skills. Great managers help people excel and grow.
 
Respect means understanding people’s unique career goals and being
Key takeaways from Bill Campbell and The Trillion Dollar Coach:
  1. Your title makes you a manager. Your people make you a leader.To be a good leader, you need to first be an excellent manager by accruing respect and not demanding it.
  2. It’s the people.The top priority of any manager is the well-being and success of his/her people.
  3. Start with trip reports.To build rapport and better relationships amongst team members, start team meeting with personal or non-business related topics.
  4. 5 words on a whiteboard.Have a structure for one-on-one’s and take the time to prepare for them, as they are the best way to help people be more productive and to grow.
  5. The best idea, not consensus.A manager’s job is to run a decision-making process that ensures that all perspectives get heard and considered. If necessary, to break ties and make a decision.
  6. Lead-based on first principles.Defining the “first principles” for the situation, the unchangeable truths that are the foundation for the company or product, and help guide the decision from those principles.
  7. Manage the Aberrant Genius.“Aberrant Geniuses” are high performing but difficult team members, should be tolerated and even protected as long as their behavior isn’t unethical or abusive and when their value provided outweighs the toll their behavior takes on management, colleagues and teams.
  8. Money’s not just about the money.Compensating people well demonstrates love and respect, which ties them firmly to the goals of the company.
  9. Innovation is where crazy people have stature.The purpose of a company is to bring a product vision to life. All the other components are in service to the product.
  10. Build an envelope of trust.Listen attentively, practice complete frankness and be an evangelist for courage by believing in people more than they believe in themselves.
  11. Only coach the coachable.Traits that make an individual coachable include honesty, humility, willingness to persevere, hard working and a constant openness to learning.
  12. Practice free-form listening.Listen to people with your full and undivided attention without continually thinking ahead to what you’re going to say next. Instead, ask questions to get to the real issue.
  13. No gaps between statements and fact.Be relentlessly honest and candid, couple negative with caring feedback. Give feedback as soon as possible, and if the feedback is negative, deliver it privately.
  14. Don’t stick it in their ear.Don’t tell people what to do, instead offer stories and help guide them to the best decisions for them.
  15. Full identity front and center.People are most effective when they can be completely themselves and bring their whole identity to work.
  16. Team first. The team is of utmost importance; the most important thing to look for in people is a team-first attitude.
  17. Work the team, then the problem. When faced with a challenge or an opportunity, the first step is to ensure the right team is in place and working on it.
  18. Pick the right players.The top characteristics to look for are smarts and hearts. E.g. the ability to learn fast, a willingness to work hard, integrity, grit, empathy and a team-first attitude.
  19. Pair people.Peer relationships are critical and often overlooked, so seek opportunities to pair people up on projects or decisions.
  20. Get to the table.Winning often depends on having the best teams consisting of a mix of genders.
  21. Solve the most significant problem first.Identify the biggest issues, bringing it to the front and tackling it first.
  22. Don’t let the bitch sessions last.Air all negative issues, but don’t dwell on them. Learn to move on and move on as fast as possible.
  23. Winning right.Strive to win, but always win right with commitment, teamwork and integrity.
  24. Leaders lead.When the going gets tough, teams are often looking for even more loyalty, commitment and decisiveness from their leaders.
  25. Fill the gaps between people.Listen, observe and fill the communication and understanding gaps between people.
  26. It’s OK to love.People on your team are human beings by nature, and the group becomes stronger when you break down the walls between the professional and human personas, embracing them with love.
  27. To care about people, you have to care about people.Ask about their lives outside of work, understand their families and show up.
  28. Cheer demonstrably for people and their success.Don’t just sit there, stand up and show them the love for the work they are doing. Energize, motivate and inspire people to keep them moving.
  29. Always build community.Build communities inside and outside of work. A place is much stronger when individuals are connected.
  30. Help people.Be generous with your time, connections and other resources.
  31. Love the founders.Hold a special reverence for and protect the people who are the founders of the company, often these people are the ones with the most vision and passion for the company.
  32. Build relationships whenever you can. Be it when you’re in the elevator, passing someone in the hallway, or see your teammates in the cafeteria, take the time to stop and chat about their lives and share a little about yours.

What makes great companies great is not solely the culture but also the people that help to build that culture.

About the Authors

  • Eric Schmidt served as Google CEO and chairman from 2001 until 2011, Google executive chairman from 2011 to 2015, and Alphabet executive chairman from 2015 to 2018.
  • Jonathan Rosenberg was a Senior Vice President at Google and is an advisor to the Alphabet management team. He ran the Google product team from 2002 to 2011.
  • Alan Eagle has been a director at Google since 2007. Formerly Eric and Jonathan’s speechwriter, he currently runs a set of Google’s sales programs.

References:

  1. https://trilliondollarcoach.com
  2. https://www.slideshare.net/mobile/ericschmidt/trillion-dollar-coach-book-bill-campbell
  3. https://trilliondollarcoach.com/static/common/images/pdf/trillion-dollar-coach_preview.pdf
  4. https://www.fastcompany.com/90331367/bill-campbell-silicon-valley-trillion-dollar-coach-book
  5. https://medium.com/motivationlifehacks/book-summary-trillion-dollar-coach-bill-campbell-6ad32cd607f3#:~:text=Key%20takeaways%3A,respect%20and%20not%20demanding%20it.

Corporate Boardroom Equality and Inclusion

Posted on by

America needs better inclusion and diversity in its corporate boardroom.

Addressing racial and gender disparity in the corporate boardroom has become a marketing priority in the past several months and less of a firm commitment to action for boardroom chairmen and chief executive officers, especially amid the global protests against racial injustice and inequality. Effectively, the numbers suggest that much work is needed to level the playing field.

Yet, many corporations claim to support diversity and inclusion, but the numbers simply do not add up. Recently, former AT&T CEO Randall Stephenson spoke passionately on CNBC about the lack of inclusion and equality within corporate American. Yet, the company he ran for 13 years and its board of directors he currently leads as executive chairman reflects that lack of inclusion with only one person of color board member. Furthermore, instead of walking the talk, his appointed successor at AT&T was a non-diverse male.

“A board that better reflects all the communities it serves is in the interest of all stakeholders.” Brad Gerstner, founder and CEO of Altimeter Capital and a founding member of The Board Challenge.

Black leaders are underrepresented in America’s public and private boardrooms. Approximately 66% of Fortune 500 company board members are white men and 18% of members are white women, while only 9% of members are Black men and women, according to a report by the Alliance for Board Diversity and Deloitte.

Research by Black Enterprise found that 187 S&P 500 companies did not have a Black board member in 2019, a 2-percentage point improvement from the prior year. Furthermore, recent data for Fortune 500 boards indicates that white men hold 66% of board seats and white women make up 18%, but only 9% of board seats are held by African Americans (men and women), according to online talent marketplace theBoardlist, which is a founding member of The Board Challenge.

The lack of inclusion and ‘doing the right thing’ is not going to passively happen. Leaders and companies must step up to take courageous action to advance equality and inclusion. For example, the moment a S&P 500 company drops or refuses to engage a vendor or contractor because they lack gender and racial diversity will prove transformative in our society.

Additionally, every U.S. company is encouraged to take The Board Challenge which represent a pledge seeking “to enhance representation in the boardroom by asking companies to retain or add a Black director to their board”. The Board Challenge is asking all boards without a Black director to add a Black director in the next 12 months.

“Diversity does matter when it comes to results.” Arnold Donald, President and CEO of Carnival Corp.

True and full racial representation at the board level is in the best interest of companies, employees, customers and communities and helps to advance and support a more equitable society. According to recent research, people of color in leadership position means better performance and returns:

  • Diverse boards of directors are 43% more likely than non-diverse boards to achieve financial performance above the national industry median for companies in the top quartile versus bottom quartile, according to McKinsey & Company’s Delivering Through Diversity 2018 report.
  • More than nine in 10 directors (94%) agree that board diversity brings unique perspectives to the boardroom, according to PwC’s 2019 Annual Corporate Directors Survey. Additionally, 87% said board diversity enhances board performance and 76% said it enhances company performance.

“One objection we hear is whether companies can find the kind of diverse board talent they are looking for. It is 2020 – it is not a pipeline problem, it is a perspective problem,” said Guy Primus, CEO of Valence and co-founder of The Board Challenge.

References:

  1. https://www.nasdaq.com/articles/nasdaq-continues-commitment-to-equality-by-becoming-a-signatory-of-the-board-challenge
  2. https://www.prnewswire.com/news-releases/the-board-challenge-launches-pledge-for-us-boards-of-directors-to-add-a-black-director-within-one-year-301126074.html
  3. https://www.blackenterprise.com/power-in-the-boardroom-corporate-governance/

FedEx’s Fred Smith Quotes on Leadership

Posted on by
  • What follows are Fred Smith, Founder, Chairman of the Board and CEO of FedEx, quotes on leadership.
    1. “Leadership is simply the ability of an individual to coalesce the efforts of other individuals toward achieving common goals. It boils down to looking after your people and ensuring that, from top to bottom, everyone feels part of the team.”
    2. “Leaders get out in front and stay there by raising the standards by which they judge themselves—and by which they are willing to be judged.”
    3. “The greatest leadership principle I learned in the Marine Corps was the necessity to take care of the troops in a high performance based organization.
      The Marine Corps’ strong emphasis on this overriding leadership requirement has been of inestimable importance to me in developing FedEx over the years.  In the main, people want to be commited to an organization and to do a good job.  The principles of leadership taught by the USMC, and based on two centuries of experience, will produce outstanding organizational results in any setting, if those principles are studiously followed. In short, FedEx owes its success to this simple truth.”
    4. “I’m not afraid to take a swing and miss.”
    5. “The riskiest strategy is to try to avoid risk altogether.”
    6. “Fear of failure must never be a reason not to try something.”
    7. “A manager is not a person who can do the work better than his men; he is a person who can get his men to do the work better than he can.”
    8. “My innovation involved taking an idea from the telecommunications and banking industries, and applying that idea to transportation business.”
    9. “You can’t make people do what’s right. You can lead them, and you can empower them to make the right decision, but if you don’t produce a culture that allows them to do that, then all the rest is just bumping your gums as one of my old business partners used to say.”
    10. “If you’re going to run a high service organization, you have to get the commitment of the people working for that organization right at the start. If you don’t, you’ll never be able to deliver at the levels of expectations of the customer.”

    —Fred W. Smith, Chairman, CEO, Entrepreneur and Founder of FedEx