Note From Rand

Several years ago, I introduced Denny Flanagan in the pages of this publication. Denny is a captain at United Airlines and, as I subsequently found out, a special guy in many ways. I was on my way to Sedona with my wife, and he flew the first leg of our trip. That trip began a friendship that I still relish.

This month’s article is the chapter in my upcoming book that describes my experience with this man of character. I know you’ll be inspired and perhaps even overwhelmed by Denny – a tough-minded leader in the best sense of that phrase.

See you in August. Get real, get tough, and get going!

Denny Flanagan - A Customer Service Champion and a Man of Character

I’m infinitely interested in certain things and completely disinterested in others, which includes anything mechanical; you’ll find little middle ground with me.

When I put my key into the ignition of my car, something happens to make it start that I don’t have to understand. I love watching good TV programs, but I don’t care how the picture gets into my TV. However, if you show me a customer service champion, I’m all over it. I’m completely curious about people who make a difference.

This brings me to Captain Dennis J. Flanagan of United Airlines. Here’s what happened that piqued my interest about this man of character.

My wife and I were flying to Arizona to spend a week in Sedona. Our Denver-bound flight was to leave from Baltimore on United Airlines. About 30 minutes before our scheduled departure, we sat at the gate waiting to board when the door to the Jetway opened. The United captain emerged, strode to the ticket counter, and grabbed the microphone. Based on my substantial flying experience, a variety of possible scenarios bombarded my brain – none of them good!

Then this captain began speaking. “Good morning, ladies and gentlemen. I’m your captain, Denny Flanagan.” He went on to describe the weather we anticipated and our route. Then he said, “We’re flying a Boeing 757 this morning. If you have any questions during our flight about the aircraft or flight, I’ll be happy to answer them. Our plane this morning is in great shape.” A long pause ensued, then, “And I’m in good shape.” The passengers chuckled. “By the way,” he continued, “this is my first flight.” Silence … “Today!” he added with a grin.

Great. He does schtick! He’s a pilot I can relate to.

Among the waiting passengers, I could see their moods quickly change like a wave. They hadn’t previously appeared anxious or worried, just indifferent or tired. After that announcement, they seemed jovial and eager to board.

We wondered what would happen next. Jimmy Buffet with a parrot? A conga line?

As we began boarding, Captain Flanagan stood at the door to the plane handing out cards with a 757 pictured on one side, and a description of the aircraft on the other. Greeting him, I mentioned I was an executive coach and consultant who published a monthly newsletter. I said I’d like to write something about his congeniality and gave him my business card. He replied that he’d love to talk at some point.

An hour into our flight, Anne, the purser, spoke over the intercom saying, “Good morning, ladies and gentlemen. We here at United believe travel should be fun. So Captain Flanagan is raffling off discounted tickets on United.”

Wait a minute, now we’re having a raffle? What’s next? Karaoke?

She continued, “On your cocktail napkin, please write down the reason you chose United for your air travel. I’ll then draw four napkins and read the responses. Those people will each receive a coupon worth a discount on a future United flight.”

The raffle concluded, and I didn’t win. But a few minutes later, Anne came down the aisle with one of Captain Flanagan’s business cards. On the back was this note: “Mr. Golletz, You are a valued customer and your business is greatly appreciated. Please let me know how we can exceed your expectations. Also, could you wait for me after the flight?” Signed, “Capt. Denny.”

I couldn’t meet him because of a tight connection in Denver, so I asked Anne to tell him I’d call him after my Sedona vacation, saying I was eager to know more about him. Before taking my response to Denny in the cockpit, she told me what she knew about this unusual and extraordinary guy:

• He institutes the raffle on every flight and posts the cocktail napkin responses where United staffers can read them.

• He has a large number of copies of a coffee table–sized book on United’s history and presents them to United associates who respond to customers in exceptional ways.

• He handwrites personal thank you notes on the back of his business cards to every first–class passenger on every one of his flights.

• He provides his personal credit card to unaccompanied minors on his flights so they can use the in-flight phone to call home.

• One of Denny’s co-pilots, Buck Wyndham (how’s that for a pilot’s name?), was so impressed that he asked Denny if he could record him for several days after the brass okayed the idea. The video recording was subsequently used for training at the company.

When I got home from that vacation, I spoke to Denny and a number of people close to him. My primary question was, “What created this dedication to customers?” Denny said, “I do it because it’s my job.” Not a guy prone to self–congratulatory behavior. His wife, Terri, told me he has a profound sense of duty and loyalty that endures despite adverse circumstances. His associate Bud Potts, another United pilot, couldn’t explain this quality in Denny. He expressed his admiration for both who Denny is and what he does.

Keep On Learning from Captain Denny

What have I learned (or reaffirmed) from my experience with Captain Denny? Here are three conclusions:

1. For years, United Airlines has gone through lots of well–documented challenges. Providing a bright spot amid the fray is a leader who demonstrates resilience, persistence, tenacity, a love of people, loyalty, and dedication. Where he got it isn’t as important as that he has it. Character counts!

2. People follow examples rather than orders. Frequently, Denny preaches the word of customer service to other United associates. They listen to him because his actions mirror his words. He’s consistent and authentic. He reaffirms what he says with what he does.

3. When faced with challenging times and circumstances, we have choices. We can focus on the good with a positive attitude or whine about the way things are and harbor resentment. You’ve probably heard it before and I’ll say it again: Resentment is tantamount to drinking poison and expecting someone else to die. I know people at United who want the company to fail because of deep-seated animosity and their need to prove themselves right. At the risk of appearing simplistic, I say, “Find something else to do with your life!”

When times get tough, people throw in the towel and leave out of frustration. To those at United and other firms who have confronted similar challenges and gotten out, I say, “Sometimes leaving is the right answer – for both the organization and the person. Better to leave than seethe.”

To people anywhere who decide to plant their feet and work for productive change – Bravo! Find other like–minded people to provide you with the courage to continue the fight. Incubate ideas; initiate independent action; take risks; build the company you want.

To everyone, but most particularly the executive managers of United, what can you learn from this story and how can you leverage that lesson? Will you have the courage and smarts to place your bets on people like Denny Flanagan?

P.S. I first wrote about Denny in my monthly newsletter in 2005. Since then, others have also noticed his amazing qualities. For example, he has appeared on TV network shows “This Morning” and “Good Morning America” and has been featured in a page-one story in the Wall Street Journal. In an industry that desperately needs heroes, Denny joins pilot Sully Sullenberger (of “put the plane down in the Hudson River” fame) as a guy worth emulating. I’m proud that Denny and I have become good friends. When he’s in D.C. or Baltimore, we still have dinner together. (Come to think of it, Denny, you owe me a meal.)

Note From Rand

People who know me understand I’m literally obsessed with the impact that mental toughness has on success. I believe that while many variables contribute to accomplishment in any field, mental toughness is the common denominator.

In this month’s solo article, Exhibit A is Philadelphia Phillies pitcher Roy Halladay. A certain first ballot Hall of Famer when he retires, he’s currently baseball’s “gold standard” of toughness and discipline. The “story behind the story,” however, is that his career tanked for a time almost a decade ago. Then he met H. A. Dorfman. Their story, and it’s very real and very important lessons for you, are the subjects of this month’s Real Deal. I know you’ll find it provocative and instructive.

I’ll see you in July. Until then get real, get tough, and get going.

Are You As Tough As Roy Halladay?

Last Saturday night, Roy Halladay pitched the 27th perfect game in the history of major league baseball.

If you’re not a baseball fan, you may not know his name. Here’s a primer: He’s the best pitcher in baseball. That’s not only my opinion; it’s the overwhelming opinion of his peers. Complete games – Halladay. Innings pitched – Halladay. Earned run average – Halladay. Average wins per season – Halladay. Command of his pitches – Halladay. Most importantly to me (and hopefully to you) are not the stats and tributes; it’s Halladay’s mental toughness and discipline.

Ten years ago, after being the “it” guy among young pitchers in the major leagues, his career hit the skids. He was relegated to the minor leagues to regain his mojo. While there, his wife bought him a copy of H. A. Dorfman’s book (sounds like a geeky cartoon character?!), The Mental ABC’s of Pitching. He then began working with Dorfman, who was/is a renowned sports psychologist, and everything changed.

From Sports Illustrated: “And that’s when I saw the biggest difference,” Halladay said. “The first part was trying to rebuild confidence, having a positive mentality. The second part was to simplify things. Sometimes you get caught-up in the big picture – the seven innings, the three runs or less, who you’re facing – and you get away from what makes you successful, which is executing pitches.

“Knowing when I go into the game that I prepared the best I possibly could was a way to help build confidence. I didn’t always need success on the field to feel like I was going to be good. I felt like I could create that on my own the way I prepared.”

Says Brandy (Halladay’s wife): “Dorfman really taught Ray to focus on one thing at a time. When he gave up a hit, he learned to think about the next hitter. He helped him deal with those mental stumbling blocks every person has to deal with. The book and Dorfman helped his pitching career, our marriage, the way we looked at life in general… it absolutely saved his career.”

Many business people (maybe you?!) are so busy thinking about the next promotion, the presentation to the CEO in three weeks, or checking their Blackberries for the 100th time in a day that they forget to “be present.” They forget that the only thing they can control is what they’re doing in any given moment. They forget that by focusing on being the best they can be RIGHT NOW, IN THIS INSTANT, DOING WHAT THEY’RE DOING TODAY, all of the other stuff – the money, the broader responsibilities, the career trajectory, ultimate success – will all take care of itself.

Many business leaders with whom I work underestimate or dismiss the power of their minds to control (or at least significantly influence) their outcomes. They operate while being completely distracted by yesterday and tomorrow. They do a pretty good job of learning from the past and planning for the future, but on the “living in the moment” part, they blow it.

I’ve always been a “jock,” and my entire business is geared to helping leaders develop mental toughness and discipline; therefore, Halladay’s story, and one’s like it, naturally intrigue, excite and enthuse me.

One of my primary interests is the power of the human mind to propel or torpedo success. I have two bookshelves in my office full of books on the subject, many of them by renowned, accredited scientists. Through my learning, I’ve found that the selective application of certain principles has helped me in my own life, especially in the last few years.

After doing some research, including talking to a number of major league ballplayers, I decided that Dorfman’s approach to counseling athletes might help me in my work with executives. I ordered and read copies of two of his books: Coaching the Mental Game and The Mental Game of Baseball: A Guide to Peak Performance. I’ve found both books totally relevant and very useful. Following are some tidbits that can contribute to your effectiveness and maybe incite your interest sufficiently to read Dorfman’s books.

Dorfman cites a study by Albert Ellis wherein he documents 10 irrational beliefs that he found to be common in our society. Dorfman mentions them in a baseball context. They have just as much significance in other areas of life, including business management and leadership:

* You must have approval all the time from the people you find significant.

* You must be thoroughly competent, “producing” every time.

* Things must go the way you’d like them to, and it’s terrible if they don’t.

* Others, particularly “superiors” in rank, must treat your “fairly” and “justly,” and it’s terrible if they don’t.

* When threatening and/or “clutch” situations present themselves, you must become preoccupied with them and the consequences (as YOU perceive them).

* It’s terrible when you don’t immediately find solutions to your problems, on and/or off the field.

* Your emotional misery comes from external pressures, and unless these pressures change, you can do nothing to make yourself “better” (i.e., more effective as a player and/or person).

* It’s easier to avoid responsibility (be passive or quit) than to take charge of your life and/or a situation.

* You are helpless to cope with the overriding influences of the past.

* You can gain happiness and/or effectiveness by inertia or by uncommitedly “having fun” and waiting/hoping for the right things to happen to you.

Do any of these points (maybe ALL of them) ring true for you?!

Dorman adds several others of his own to Ellis’s list: emotional swings; negative thinking; pressure and anxiety; slumps; pain; anger. In my experience, while the issues on Dorfman’s list are derivative of those on Ellis’s list, they’re every bit as relevant.

How does Dorfman help players overcome these problems? It’s called “discipline” for a reason. He helps players regularly employ some practices that better enable them to stay “in the moment” and be productive. He says, “the athlete knows what direction he wants to take and how to take it. Now he disciplines himself to take it. He controls his mind; he disciplines it.”

Dorfman calls his approach the “cycle of control,” and it contains four steps. Here they are along with Dorfman’s complete descriptions. Assess whether these steps, employed consistently, would make you even more effective than you already are. For the sake of example, imagine yourself preparing to give a presentation to your company’s Board of Directors.

The Cycle of Control

* Control through awareness: The control of the ability to recognize what you are thinking, feeling and doing – and what is happening to you. This control gives you the understanding of where your attention is directed and, if it’s not where you want it to be, the reason it isn’t. You are then able to follow the cues you know that can help you concentrate on the task.

* Control through thoughts: This control is exerted after concentration has broken down or has been “given a break.” These thoughts should be rational and relevant to the task of the moment. They redirect focus.

* Control through self-coaching (self-talk): If the quality of your thoughts has deteriorated, you control the words you speak to yourself – internally or externally. These words are directives to get you back to a general positive attitude and to concentrate on positive function.

* Control through behavior: This control is of physical behavior, guided by rational, rather than emotional, directive; the “final instructions” provided by self-talk. Examples: “See the ball.” “Be easy.” “Find the open man.” “Stay low.” Regardless of how you feel, you act out of what you know, what you’ve been reminded of. After that action, you assess your behavior – and the language that directed it. You come full cycle and anticipate greater success in the next cycle.

More from Dorfman:

“Of course there will be many external and internal challenges. The extent of the discipline applied will determine the success you have in executing your task effectively. Mental discipline requires great effort. It’s worth having; worth that effort. An unyielding persistence is a part of that discipline. It will ultimately allow you to focus on your task in the toughest of times.”

I call it mental toughness; Dorfman calls it mental discipline. Whichever, it is an absolute prerequisite for success in any field of endeavor, including yours. A solid commitment to developing and sustaining these practices, or ones like them, will propel your effectiveness and success.

Note From Rand

The baseball season is well underway, and the Orioles already have the worst record in MLB. When I expressed optimism for this season to my attorney, Henry Clarke, he asked me the following question: “Rand, who’s the team owner?” If you’re a baseball fan, you get it. If you’re not, call me and I’ll explain it.

I’m already looking forward to the Mike Shanahan led Washington Redskins. I must be a masochist!

Two articles I think you’ll like this month. The first, The Lost Investment Banker, details my personal experience coaching a client in NYC. It’s a story of how difficult personal change can be. The second is a “pack up the babies and hide the old ladies” admonition about debt. Here’s the short version: Prepare for the worst; it’s going to happen. If not this year, then in future years.

I’ll be back to scare you again in June. Until then, get real, get tough, and get going.

The Lost Investment Banker

Frank was the CEO of a large investment bank that was owned by a gargantuan New York bank. His boss Charles, the chairman of the bank, called me to coach Frank. (Frank and Charles are pseudonyms.) As Charles described it, Frank had a “rough engagement style,” which is corporate speak for not being able to play well with others.

My phone call with Charles went like this:

Charles: “Rand, Frank runs the risk of mutiny on his team. He belittles his guys publicly. He second-guesses all of their decisions. He has an appetite for a granular level of detail that results in his having an intrusive style. He’s really a throwback – a cigar-chomping, suspender-snapping, Gucci-wearing plutocrat.”

Me: “So Charles, what would a successful outcome look like to you? What are your conditions of satisfaction?”

Charles: “I don’t expect miracles, Rand. Frank is 55 years old. He’s pretty much who he’s going to be, from a style and personality point of view. I get that. I just want him to behave in a more respectful way toward others. I’d like you to help him “own” this issue, and then develop some strategies to take some of the rougher edges off of him. Frank is my friend. I want him to remain with the firm. He makes us a lot of money. If he doesn’t change, however, I’m going to have to cut him loose.”

Me: “Have you discussed this with him?”

Charles: “I have, and I believe he really wants to change. I don’t think he knows how, and I’m certain that he doesn’t understand the magnitude of the problem or how to fix it.”

Fast forward four months. After working with Frank, his behavior had improved. He had implemented the strategies that we crafted together. His people were in a better (not perfect, but better) place that I would describe as cautiously optimistic and moderately suspicious but supportive. I wasn’t ready to declare victory, but I was pleased with Frank’s progress. So was Charles, the guy paying my fee. Life was good!

Not quite!

One Sunday afternoon, I got a desperate phone call from Frank that went like this:

Frank: “Rand, I’m ready to throw in the towel on this goody-good, Kumbaya stuff.”

Me: “What are you talking about?”

Frank: “I’m not getting any love from these people. I’m really trying hard to change, but I’ve not received even ONE compliment.”

Me: “Let me explain something to you, Frank. You have seven people reporting to you. Each of them has done so for at least three years. Four of them have reported to you for over five years. Correct?”

Frank: “Yeah, so what?!”

Me: “Let’s just use the five-year guys to make my point. They have four years and nine months of experience … minimum … with the “old Frank.” They have three months of experience with the slightly new and improved Frank. They all know that I was asked to work with you. How am I doin’ so far?”

Frank: “You’re testing my patience by telling me what I already know.”

Me: “Here’s the big question: Which Frank do you think they believe is the real Frank – the old, four-year, nine-month version or the new, three-month, working-with-a-coach-at-the-behest-of-the-CEO version?”

Frank (after sitting quietly for five minutes): “Wait a minute, Rand! Are you telling me that in order for them to believe that change has taken root, I’m going to have to be this way for five years?!?!”

Me: (slightly disappointed but not stunned): “No, Frank, I DON’T mean that. What I mean is – you’re going to have to be this way FOREVER! What I mean is – you can’t view this as a destination, and that once you reach it, you can revert. What I mean is – you should be doing this because some fundamental change was required in order to be effective. What I mean is – you need to do this because YOU believe it’s the right thing to do, not because you’re not getting enough ‘love from your peeps’!”

My relationship with Frank flourished, and over time, he became a much more evolved leader, although never what Jim Collins would describe as a “level 5″ leader.

The lessons for you:

• Personal change is easy to accept, until you have to do it and then sustain it.
• We’re all very comfortable being who we already are.
• In order to maintain commitment and momentum, we have to be accountable to another person. That person has to value truth more than comfort.
• It’s OK to want to be validated; it’s not OK to need to be validated.
• If there’s no pain in change, you’re either not trying hard enough, or the change isn’t big enough!
• Fear is the root emotion that keeps people stuck. If you want the big reward, you have to develop the courage, resilience, endurance and persistence to crash through quitting points.

Get Ready for Round 2

I keep hearing pundits and business people insisting that our economy is getting better. In the very short run, that might be true, but WHO is going to pay for our massive $13 trillion ($10 trillion of it incurred in the last year) federal debt? No one seems to have an answer to that question. Every man, woman and child in this country now owes over $350,000 to the federal government. Wake up!!!! Here’s a staggering comparison – the USA vs. Canada:

Federal debt to GDP: Canada – 36%; USA – 93%
Unemployment Rate: Canada – 8.2%; USA – 9.7%
Total Health Spend (public and private) to GDP: Canada – 10%; USA – 15%
Total Defense Spend to GDP: Canada – 1%; USA – 5%
Estimate Household Consumption to GDP: Canada – 54%; USA – 69%

Let the good times roll?

Federal debt in Canada has not grown materially in 15 years. Our debt grew 400% in the last year. Our politicians argue that it was necessary to save the economy. Actually, they did it to save their collective a–! The only thing that is (temporarily) saving the US dollar is colossal mismanagement in Europe, where the only way to preserve the integrity of the Euro is to let Greece default – not gonna happen!

What a mess!

Here’s what you can do: Be an example FOR others rather than following the example OF others when it comes to living a prudent, responsible financial life by:

• spending less than you make.
• paying yourself first.
• incurring minimum debt.
• paying off credit card, auto and mortgage balances as soon as its practical to do so.
• teaching your children to be financially literate.
• becoming financially literate yourself, if you aren’t.

Some very smart financial people are predicting dire consequences for our economy as a result of financial mismanagement. You cannot impact that except by voting for politicians who have, in the past, demonstrated fiscal restraint. (And no, I don’t know many other than Peter Schiff from Connecticut.) You can, however, live in a way that maximizes your personal chances of weathering any storm.

Thanks to Ben Peress, my financial manager in McLean, Virginia, for the USA vs. Canada stats. In the fall of 2008 when it “hit the fan,” Ben saved us. If you’re looking for a guy to handle your $, he’d be a great choice.

Note From Rand

Some news on the publishing front: I’m pleased to announce that the first of my two books being published this year is now available and for the next 60 days you’ll find it exclusively on our web site. Entitled Stepping Stones to Success and published by Insight Publishing, it’s an anthology featuring Dr. Deepak Chopra, Jack Canfield, Dr. Denis Waitley, myself and a number of other notables from the personal development field (see the book cover just below).

In a couple of weeks, I’ll be offering a brief sale. For $19.95 (including shipping), you’ll be able to purchase a signed copy of this new book and receive my last Insight collaboration, Blueprint for Success, which also featured Ken Blanchard and Dr. Stephen Covey, for free. A really great deal!

My solo book, originally titled Redesigning Type A, has a new title. Sorry, but I can’t share it yet. Being published by Morgan James of New York, it goes to book design and layout in two weeks. I now expect an August/September publication date. As you can tell, I have a lot going on.

A couple of weeks ago I returned from my annual two-week sojourn to Palm Beach, Aruba. Sunny every day; cool every night. Lots of beach; lots of books. If you’re saying, “How boring,” you’d be right, but only if you regard predictable sunshine and relaxation as boring. For me, I need several weeks each year to “cool my jets.”

My first piece this month is brief. It introduces Matt Long. Matt’s story is inspirational and energizing. I’ll be featuring more stories like Matt’s in the upcoming months. My second piece is a chapter from my solo book entitled “Beliefs vs. Truth – Beware the Difference.”

Happy Spring. As always, get real, get tough and get going!

Meet Matthew Long

Matthew Long is a New York City Firefighter. An athlete his whole life, he’s always loved training and competing in road races and triathlons. On December 23, 2005, his life changed forever. While riding his bike to work, he was run over by a bus that was making an illegal right turn. To add insult to injury, the ambulance that carried him to the hospital was delayed because of a transit strike. He had a shattered pelvis, a broken arm, a dislocated shoulder and massive internal bleeding. According to the physician who performed the first of many surgeries on Matthew, he was ripped open from stem to stern. The doctor added: “The same hospital that treated Matthew treated a window washer who fell 47 stories a year before and lived. Matt was hurt much worse than
that.”

Everyone – the doctors, the physical therapists, his family – believed that he would never walk again.

Unconscious for 30 days, Matt spent a couple of years in physical therapy and had 42 surgeries. He was left with one leg an inch shorter than the other because of his hip injuries. His doctor went on to say that “he shouldn’t be running or walking or even going to the bathroom himself.” In reality, he had about a 5% shot at living. “It was really depressing and frustrating to know what I used to be,” said Long. “Then I decided to change my attitude from ‘I want to do something’ to ‘I will do something.’ And that made the difference.”

In the autumn of 2008, Matt ran and completed the New York City Marathon. In 2009, he completed the Lake Placid Ironman. He now works out at the gym six days a week doing weight training, low-impact cardio and yoga.

My questions for you: When you’re having a tough day, do you “man-up,” or whine? When your boss “bullies” you unfairly (according to you), do you play the “blame/victim game” or do you assume absolute responsibility for your life and either become part of the solution, learn to live with the situation, or leave? (Those are your only three legitimate choices.) When your operating results are in the tank, do you identify what needs to be done to get back on track and then DO IT, or do you blame (pick one of the following) competition, regulation, the economy, Bangalore, third-world slave-shops, sinus headaches or male-pattern baldness?

The next time you’re having a REALLY bad day, think of Matt Long… then read and re-read this piece. Better yet, tape it to your bathroom mirror and read it every day as a preemptive strike and OWN YOUR LIFE!

For a brief You Tube/HBO piece on Matt, click here. Notice the look of determination on his face – years later. Also check out the I Will Foundation, which Matt started.

Want Success? Discard Hardheadness for Tough Mindedness

Most business executives talk about the importance of collaborating with others. When it comes to execution, however, their behavior often violates this espoused belief. Why? Because “getting things done” becomes a higher priority than “getting people on board.”

Fearing being perceived as indecisive, some execs make lots of decisions themselves that others in their organizations are better qualified to make. They put people in jobs but fail to set and convey specific, measurable expectations of what the job requires. Then they don’t regularly review employee performances against their expectations (often unstated) and move to implement corrective actions. On top of that, they don’t validate people when they perform in positive ways. What happens as a result? People fail in their jobs. Who gets blamed? Everyone but “the man in the mirror.”

Several characteristics distinguish “tough-minded” leadership from “hard-headed” management practices. Consider these:

• Tough-minded execs pursue action that achieves planned results; hard-headed managers aim to solidify their authority and personal power.

• Tough-minded execs select people for jobs based on past performance and position-relevant strengths; hard-headed ones hire people whose views and perspectives match their own.

• Tough-minded managers select strong people and integrate those strengths to create interdependent success; hard-headed managers select weak people, aim to develop their weaknesses, and end up cultivating their dependency.

• Tough-minded managers show a committed candor in their interactions; hard-headed managers verbally espouse a commitment to candor, but “shoot the messenger” when they don’t like the news.

• Along the same lines, tough-minded execs encourage a constant flow of people, from all organizational levels, in and out of their offices; hard-headed ones believe that an “open-door policy” means leaving their doors open and waiting for people to come in.

• Tough-minded execs nurture commitment; hard-headed ones mandate obedience.

• Tough-minded execs recognize that giving people a say doesn’t necessarily mean giving them a vote; hard-headed ones don’t acknowledge the difference. (They don’t even bother to think about it.)

• Tough-minded execs understand that their primary lever of superior organizational performance is people, both customers and associates, so they spend the highest proportion of their time with people; hard-headed ones view any time spent with people as a costly distraction.

• Tough-minded execs use personal interactions as coaching opportunities; hard-headed ones use them to demonstrate personal bravado.

• Tough-minded execs understand that time is their most precious resource and learn to manage it well; hard-headed ones allow time to manage them.

•Tough-minded execs know how to sustain individual and organizational performance; hard-headed ones may “get it” for a short time, but rarely “get it” consistently over time.

• Tough-minded managers know their job is to get people to want to do what needs to be done; hard-headed managers are satisfied merely getting people to do what needs to be done with no encouragement required.

Review these characteristics again with candor and then look in the mirror. Which ones characterize you?

Note From Rand

Toyota’s quality is going into the tank. Suspicion that its executives are hiding the truth is running rampant. Our Federal government has incurred $10 trillion in new debt in a year. The last time I looked, that represented over $300,000 in new, uncovered tax liability from every man, woman and child in the U.S. (expressed in present value). The risk of the dollar’s value diminishing to zero is only mitigated by the financial plight of foreign governments and currencies. This is unconscionable. Distrust of large institutions grows daily. These are big issues!

What can you do?

Make some decisions about how you will comport yourself in your business and life. Never concede to pressure, delusion, excuses, blame or justification. Never relinquish your integrity. Never discard virtue for expediency.

I have a resource that can help you during challenging times. The Josephson Institute develops resources to help organizations and individuals examine issues related to integrity and ethics. They are the big player in their field and a SPECTACULAR resource. One of their “subsidiaries,” called Character Counts, develops resources for school-age children. You should check them out; it’ll be worth your time. A number of Fortune 100 companies utilize their resources heavily, as do some large, successful public school systems.

My first article this month examines the AIG implosion from a different perspective than any I suspect you’ve read. It includes an implication or two for you and your business. The second piece identifies some things you need to do to establish firm footing with your new boss. Please share your thoughts in the comment area below.

As you read this, I’m sitting on Palm Beach in Aruba. I now think of it as my second home. No pressure to play tourist, because I no longer am one. I hope I don’t get sand in my hard drive!!

Until next month, get real, get tough and get going!

The Overlooked Lesson From AIG

About 15 years ago, I got a call from a lead partner at one of the largest executive recruiting firms asking if I’d be interested in talking to Mr. Hank Greenburg about a senior level job at AIG. That company was the big dog in property and casualty insurance and was led by an iconic figure (Hank) that took a small insurance company in the 1960s and built it into a Fortune 10 in a few decades.

The job we discussed was running AIG in the Far East out of Tokyo. I was interested, but after a couple of month of dancing, we were unable to overcome my primary hurdle: I was willing to make a three-year commitment to Japan; they wanted five.

If you’re asking yourself, “Why would someone want to go to work for AIG?” my answer is this: The AIG that Greenburg built was not the same company that essentially folded under his successor, Martin Sullivan. Here’s what the business press didn’t talk about:

Hank Greenburg ran AIG with an iron fist. Some associates joked that the company didn’t need a strategy; it had Greenburg. Every decision of consequence crossed his desk. Autocracy was the order of the day and at AIG it worked. Although he had begun his career as an attorney and insurance guy, Greenburg became both an incredibly successful entrepreneur and operator – a rare combination – and boy, did he ring the cash register. He could navigate between long-term strategy and day-to-day operations with ease. For thirty years, many people got wealthy at the company as both its top and bottom lines grew at a breathtaking pace. Then, in a well-documented act of spite, jealousy, revenge and political opportunism, Elliot Spitzer, that paragon of propriety, got Greenburg ousted. Martin Sullivan became the CEO.

Sullivan was a really accomplished insurance guy. He had successfully run a large number of AIG businesses, both domestically and internationally. He had no experience, however, outside of insurance at a company whose businesses, by the early 1990s, also included derivatives trading and aircraft leasing. If Sullivan had taken the reigns twenty years earlier, when insurance represented the overwhelming share of the company’s business, it would have been a good fit, but as I’m fond of saying, “That’s true…and if I had wheels I’d be a bicycle.”

Sullivan’s style was much more collaborative, consensual and collegial than his predecessor. He delegated many more (and much bigger) decisions to other executives. “What’s wrong with that?” you ask. In this case, plenty.

Stay with me!

Delegation is a good thing; abdication is not a good thing. After their leadership change, AIG migrated (maybe leaped is a better word in this case) from autocracy to democracy, overnight. Executives in far-flung areas of their business – areas that Greenburg controlled with a tight reign – suddenly assumed more control of their own destiny. They began incrementally making riskier decisions – not because they were incompetent or immoral but because their new “freedom” allowed them to do that. Their entrepreneurial instincts were no longer tempered by Greenburg’s multi-dimensional approach. The most egregious case of that was in derivatives trading – most notably in credit default swaps.

CDFs were created to enable creditors to insure their risk of default (and boy, is THAT a simplistic definition). They were labeled as derivatives rather than insurance to enable companies to sidestep state regulation; it worked. Over time at AIG after Greenburg departed, CDFs were used to cover increasingly risky portfolios of mortgages. At the end, sub-prime loans (or worse) represented an irresponsible proportion of this business for AIG. If Greenburg had been there during the two years before it “hit the fan,” it wouldn’t have hit the fan.

Blame Spitzer, not Greenburg, and, oh yes, blame AIG’s Board of Directors. Prior to Greenburg’s ouster, there was no real succession plan in place and at the time of his ouster, there was no one ready to assume accountability for his or her diverse cadre of businesses. Sullivan was not prepared to assume the reigns of this sprawling company. Other than Jamie Dimon (and even that would probably have been a stretch), the right executive for this challenge did not exist.

Here’s the lesson: You cannot migrate from one culture to its direct opposite with a “plug-and-play” approach. Changing cultures is not akin to changing the oil in your car. In this case, all of AIG’s executives were not equally capable of contextualizing, and then executing, decisions with $billion consequences.

Cultures are durable. Destabilize them quickly; change the rules of the game with a “flick of the switch”; impose order on chaos or chaos on order all at once and you will probably face deadly consequences – the loss of your reputation or company. Massive change must be planned and executed in a precise, systematic way. It doesn’t have to drag on for years, but it can’t happen overnight. “Transformation” and “upheaval” are not synonymous.

Your First 90 Days With Your New Boss

In any new job, you face a multitude of challenges… all of which have to be addressed “on the run” and simultaneously. One of the biggest of these is “managing up” – that is, working with your new boss.

For too many people, including senior level executives, this becomes a random process. They don’t want to engage their bosses in a specific, granular discussion that might make them uncomfortable. Here’s my bias: The priority of achieving clarity should trump any and all other concerns. To that end, the following are five conversations that you should have with your new boss – regardless of your level/job title – early in your tenure:

The Situational Conversation. Seek to understand (and reach agreement on) your new boss’s context for the business. Is this a turnaround, start-up, realignment or sustaining success? What are the strategic priorities?

The Expectation Conversation. Seek to understand and negotiate expectations. What needs to be done and how quickly? What does the objective–setting process look like? What will you need to achieve, and how soon?

Style Conversation. What will the “interaction model” look like? What kind of decisions does he/she want to be involved in, how often, and on what types of issues and to what degree?

Resource Conversation. What will you need to be successful – especially money and talent? What kind of support will you need from your new boss (selling and socializing ideas and initiatives, “clearing the runway,” etc.)?

Personal Development Conversation. How will your tenure in the new job contribute to your personal development and career aspirations?

Obviously, these questions will spark others. Your new boss may not have even had a discussion of this type with anyone in the past. That shouldn’t ever diminish the priority of your having it, however.

Note From Rand

I’m a sucker for stories about people who beat the odds, or stories of redemption. My favorite movie, BY FAR, is Casablanca. Most critics agree it’s the greatest American movie and with good reason(s). It has the best dialogue of any film ever made. Quotable quotes galore. It was made during WWII before the outcome was certain, and projects a strong anti-Nazi sentiment that bleeds off the screen. It’s about two former lovers, Rick Blaine and Ilsa Lund, whose paths cross again amid very trying circumstances. Primarily though, it’s the story of Rick the saloon owner and his competing impulses. In the end, he rejects his cynical nature and does the right thing rather than the selfish thing.

I also like American Idol. Not the late rounds during which the most talented newcomers compete, but the early rounds – genetic mutants notwithstanding. The stories of young, talented people willing to put it all on the line to achieve their dreams is what gets to me.

The bottom line of all of this? It’s never too late to become the person that you want to be; it’s never advisable to relinquish your dreams (unless you’re 60 and want to become a rock star); it’s never acceptable to create excuses, to point fingers, to caste blame or to become a professional victim. Too many tools are available – CDs, DVDs, courses, books, professional organizations, mastermind groups, coaches – for anyone to give in or give up. Reflect, repent, re-plan, reboot, redouble, refine and resume. Own your life!!!

In reverse order, my second article this month examines what I call the “four-bagger”: how it runs our lives, and why it’s important to challenge your four-bagger when it gets in the way of your personal success. My first article is a rant. It proposes the following: In order for your external service providers to help you create value, they must have a reasonably high level of financial acumen.

The Super Bowl is Sunday. Go Saints! When you get my next issue, I’ll be in the middle of my annual two-week jaunt to Palm Beach in Aruba. Until then, get real, get tough and get going. Bon bini!

Are Your Coaches and Consultants Financially Literate?

I was attending a meeting at one of my client companies a couple of years ago. They regularly conducted sessions for the external executive coaches with whom their leaders worked, to provide updates on company results and strategy.

During one segment of the meeting, the presenter used the accounting term “goodwill.” The executive coach seated next to me leaned over to me and quietly asked: “What’s goodwill?” I was flabbergasted and wondered to myself: “How (or WHY!) could or would any company do business with external coaches or consultants who do not have a fundamental understanding of finance? If their balance sheet is a primary indicator of strategic success and their income and cash-flow statements are fundamental indicators of operating success, how can external experts support their business success without a fundamental working knowledge of these documents and their interrelationships?”

During a meeting at another client company, an external executive coach said the following to me: “I just don’t understand why companies treat people development as an ‘expense’ and not as an ‘investment’. Whenever expense reductions are required, training and development get cut.” My reaction – out loud this time: “People development is treated as an expense because it is. Maybe one day, accounting rules will allow training and development to be treated as a capital expense rather than as an operating expense. If that happens, an annual increment could be expensed as depreciation. I think that more accurately expresses how training and development ought to be booked, as the value of new knowledge and skills depreciates over time. What do you think?”

He said, “I agree,” but I know down to my socks that he had no idea what I was talking about.

I know a woman who makes hundreds of thousands of dollars a year selling HR solutions to large companies for a top three, international HR consulting firm. One day when we were discussing her investments, she said to me, “I generally sell a stock when it hits $100.” I looked at her incredulously and said, “I think you need professional help managing your investments,” while thinking, “How can she possibly help her clients create value if her investment acumen indicates her overall lack of financial literacy?”

Here’s my bottom line (pun intended) on this matter: If you are doing business with external experts, they need to have at least a working knowledge of finance. Otherwise, they cannot possibly understand how your company makes money. If they don’t understand how your company makes money, they cannot possibly appreciate how to help you create value for the buyers of your products and services. If the professional services you purchase do not, at some point, translate into value for your customers, YOU ARE WASTING YOUR MONEY!!!

What should you do about this? I’m happy you asked.

As part of your triage process, engage professional service providers in a discussion that enables you to subtly (or not so subtly) ask the following questions. These are issues and terms that are critical to a company’s success. Your consultants and coaches must have a basic understanding of them in order to create value for you:

• What is EBITDA and why is it important?

• What does “hurdle rate” mean, in the context of a company considering internal investments?

• What are “net present value” and “discounted cash flow”?

• How does the prospective valuation of “goodwill” affect the valuation of an acquisition candidate?

These are NOT complex concepts. An outside expert pitching you on his products or services ought to have at least a fundamental understanding of income statement and balance sheet issues if he is to be a partner in your success.

Win With Your “Four-Bagger”

Remember this: What you think about, believe about, feel about and act about comes about! I call it (in baseball parlance) the “four-bagger.” It’s true in all aspects of life. If you dwell on the inherent unfairness of the universe and how you have gotten a bad deal, get a check up from the neck up! The reason: You cannot be or become successful and fulfilled if you blame anyone or anything for your circumstances – ever! Let’s examine this concept a bit further.

By the time we’re in our teens, our beliefs and values have already begun to congeal. The things we were taught (primarily by example) early in life automatically find their way into our subconscious, without challenge. They become our facts, our rules for how the world works. Good or bad, our beliefs form the foundation of everything we do. Listen to your self-talk. It has its genesis in your belief system.

As adults, our beliefs inform our thoughts and feelings. We process events that we observe through this filter and have a tendency to view events that validate our beliefs as facts and events that contradict our beliefs as anomalies.

Our thinking about events evolves out of that filtering process, and we then develop feelings from that entire chain of events that inform our actions. We all think that the decisions and actions we make and take in our lives are based on objective reality, when there IS no objective reality. Even the test of “reasonable scientific certainty” often fails in this regard. “Reasonable,” in hindsight, is often shown to mean, “well…that’s what we thought at the time, but now we know that we were wrong.”

If you want to be successful in life, regardless of how you define and measure that, you must constantly and consistently subject your “four-bagger” to relentless scrutiny. A great place to start is with some reading that’ll help you consider these phenomena, and how they work in your life.

Some book suggestions:

Living the Truth by Keith Ablow, MD

Why We Believe What We Believe by Andrew Newberg, MD

Change Your Thinking Change Your Life by Brian Tracy

Are You Ready to Succeed by Srikumar S. Rao

The Only Three Questions That Count by Ken Fisher

Predictably Irrational by Dan Ariely

Nudge by Richard H. Thaler and Cass R. Sunstein

Virus of the Mind by Richard Brodie

Note From Rand

I’m writing this on Sunday, January 3^rd, just as the the NFL regular season is closing out. As for my Redskins – yech!! Back in August on my Facebook page, however, I did pick Baltimore and Green Bay to go to the Super Bowl. Both have qualified for the playoffs. Hey … I’m just sayin’.

We’re now a week into 2010. I, for one, intend to make this my best year ever! Two books coming out. Climbing Mt. Kilimanjaro. Business is on a great track for a terrific year. I am STOKED!

How about you? Are you looking forward to this year with eager anticipation? Are you creating new challenges to give you something significant to shoot for? Are you convinced that your personal and professional success is inevitable? If so, great. If not, why not? You are in control of your destiny. Seize the day and go for greatness!

Our two articles this month are designed to put you on a great arc for 2010. The first, Dedicate Yourself to Mental Toughness, highlights the priority of this discipline and recommends some steps to take to achieve it. The second is a brief tribute to one of the forefathers of the personal development movement, the late Jim Rohn.

A happy, purposeful, prosperous and wildly successful New Year to you! Get real, get tough, and get going!

Dedicate Yourself to Mental Toughness

Mental toughness is essential to success.

Vince Lombardi

This past spring, San Francisco 49ers head coach Mike Singletary brought a new kind (and new level) of pain to his team’s training camp. Known simply as “the hill,” it’s a 45-degree incline that he had built for running. Singletary first witnessed the use of hill running during his time as a Hall of Fame middle linebacker with the 1980s Chicago Bears. While it obviously increased players’ endurance, its primary benefit was a significant increase in players’ persistence and perseverance. Walter Payton, Singletary’s 1980s teammate and the Bears record-setting running back, believed that hill running helped players overcome the mental obstacles that get in the way of success. Many people still believe the 1985 Bears were the best NFL team in history. Almost all of the so-called “experts” still believe they were the toughest.

Dave Goggins is a Navy SEAL living in Chula Vista, California. He joined the Navy as a 240 lb. power-lifter. SEAL training began his journey to well-rounded fitness. He subsequently began running marathons, ultra-marathons and (later) competing in triathlons. He also completed the Ultraman – a mega-triathlon that features a grueling combination of a 6.2-mile ocean swim, a 261-mile bike ride, and a 52.4-mile run. Dave does it ostensibly to raise money for the Special Ops Warrior Foundation. People who know him insist that if SOWF didn’t exist, he’d find another reason to compete. Dave believes that with focus and discipline, anyone can do just about anything. “I want to see if there is a limit to the human soul,” Goggins says. His motto is “show no weakness.” He visualizes success before undertaking any significant challenge and adds the following: “I remember when I was younger, when things were really hard or difficult, they could be so hard that they made you want to quit. That’s a feeling I’ll never have again.” Dave is one of the toughest guys walking the face of the earth.

Lance Armstrong competes in a sport whose “main event” (the Tour de France) is the biking equivalent of running a marathon on steep hills each day for three weeks. His workout routine is RIDICULOUS! After taking a couple of years “off” (and I use that term VERY loosely) to focus on his charitable work, he returned to the Tour in 2009. When he’s racing, Lance is a silent assassin. This comment from someone who knows him really well sums up his approach to competition: “The way to plant a seed of doubt in the other guy’s mind is by keeping your mouth shut. Lance is nice – then he drills you!”

Lance believes demonstrating mental toughness by crashing through quitting points. When others are ready to give up, he goes into overdrive.

Tim Tebow won a Heisman Trophy and two NCAA football championships as quarterback of the University of Florida Gators. He’s widely regarded as the best leader in the history of intercollegiate football. Oh yeah – there is a lot more to Tim than football. Through the first semester of his senior year, he’s carrying a 3.6 grade point average. He does missionary work during his summers “off.” In 2009, he did 700 hours of community service. He’s also a paragon of humility. Some resentful college football fans don’t like him … referring to him (condescendingly) as “Mr. Perfect.” Many of those are people who admire gun-toting NBA stars. Go figure!

These guys came from very diverse backgrounds, and they all own their own lives. Each of them believes that he is responsible for his actions and accountable for his results.  Each accepts that practice does not, in fact, make perfect – PERFECT practice makes perfect! That extends beyond physical preparation to mental preparation and the development of mental toughness. Their zeal preparing to win, however, does not tell the whole story. The fact is – a lot of mental toughness isn’t about preparing to win; it’s about learning how to lose and learning how NOT to lose. To wit:

Tom Veneziano wrote the book, The Truth About Winning. Tom’s a tennis pro in Texas. He wrote his book to help tennis players win. Tom talks about cultivating the right attitude toward losing. According to him, until a person develops the correct perspective about losing and making mistakes, he cannot sustain success. That perspective includes accepting losses (NOT being resigned to losing – more about the difference later), staying “in the moment,” letting go of defeat while learning from it, cultivating wisdom, and moving on to fight again.

In order to sustain success in life – regardless of your own personal definition of that – you too must develop mental toughness. Some recommendations follow:

• You must learn to distinguish among your beliefs, your thoughts, your feelings and the facts in any situation. We all carry baggage from our past, especially from our respective childhoods. The lessons passed on to us by our early caregivers congeal at a very young age to create each of our own unique world-views. Some pieces of that serve us well; some don’t. Most people accept this notion abstractly or easily see its consequences in other people, but never examine the precise impact on them.

• Accept 100% responsibility for everything in your life. This does not imply hard-headed independence or not asking for help. It DOES imply that victim-hood and blame yield bad outcomes. At one time or another, each of us has been victimized by forces outside of our control. There’s a big difference, however, between having been victimized, and regarding oneself as a victim. Try looking at yourself in the mirror each morning and uttering the following: “I own my life. I am the problem, and I am the solution!”

• Monitor your self–talk, especially in the aftermath of defeat. We all conduct incessant internal dialogue. What does yours say about how you value yourself? How does your internal dialogue position you for future success?

• Learn to accept your shortcomings without resigning yourself to them (this is REALLY hard for me). Acceptance means “giving in to reality.” Resignation means “giving up on possibility.” There’s a huge difference; it’s not hair-splitting.

• Ask yourself (and cite examples) how adept and consistent you are at demonstrating the following attributes of character:

• Openness and candor – with yourself as well as others

• Dedication to “the truth”

• Courage

• Resilience

• Endurance

• Persistence

• Perseverence

• Discipline

• Responsibility

• Loyalty

Get a coach or mentor to help you cultivate mental toughness in 2010 and make this your BEST YEAR YET!

The Late, Great Jim Rohn

Jim Rohn died last month at the age of 79. For people in the personal development field, Jim was the Godfather. A bit of his background follows:

Jim was doing unexceptionally in his profession until the age of 25. He then went to work for a man named Earl Schoff who mentored him on the laws of success. Jim put these laws to work in his own field before setting off to teach others what he had learned. During the 20 years that followed, Jim focused increasingly on refining his message and teaching it to others. By the early 1980s, he (along with Dr. Denis Waitley and Zig Ziglar) had become known as one of the extraordinary guys in his field. Among others, he was a mentor to Anthony Robbins when Tony was living in a small apartment, struggling to find his own voice. Until his death, his audience of admirers was diverse. He spoke in small classrooms to teenagers and in coliseums to groups of 20,000 or more entrepreneurs.

I had known about Jim for a long time, but didn’t “discover” his work until about 5 years ago. I bought a DVD of one of his 3-day workshops and was instantly mesmerized by the profound simplicity of his message. No screaming, no histrionics. All content. I then bought everything else Jim offered. Today, I return to those DVDs once a year to get reinvigorated by his message. I encourage you to discover Jim for yourself (www.jimrohn.com).

As a tribute, some of my favorite Jim Rohn quotes follow:

“Character isn’t something you were born with and can’t change, like your fingerprints. It’s something you weren’t born with and must take responsibility for forming.”

“Discipline is the bridge between goals and accomplishment.”

“Don’t wish it was easier … wish you were better.”

“Failure is not a single, cataclysmic event. You don’t fail overnight. Failure is a few small errors in judgment, repeated every day.”

“If you don’t like how things are, change them! You are not a tree.”

“It is the set of the sails, not the direction of the wind, that determines which way we will go.”

“Make measurable progress in reasonable time.”

“Miss a meal if you have to, but don’t miss a book.”

“Success is not to be pursued. It is to be attracted by the person you become.”

“The book you don’t read won’t help you.”

“The few who do are the envy of the many who watch.”

“The major value in life is not what you get. The major value in life is who you become.”

God bless Jim Rohn!

Happy holidays! Some reflections on my life and wishes for yours, as the year draws to a close:

I’ve noticed a lot of changes in myself as a direct consequence of aging. Overall, I have a higher level of equanimity than I did as a 30 year old. I’m better at accepting without agreeing with points of view that diverge from my own on almost any subject. I more regularly and rigorously remind myself that my beliefs — even my strongly held ones — are not facts, and that each of my corresponding points of view is simply that. I think I’ve attained some wisdom (as distinguished from enlightenment) from having my backside kicked and as a result, make generally better choices than I did at 30 or 40.

Three developments have surprised me as I’ve aged, however. First, my patience regarding some things has actually diminished, which contradicts what I was led to believe by my parents – that I’d become much more patient as I got older. As a result, I now avoid two types of people like the plague: The first are those who uniformly put their own interests ahead of those of other people, including their own families and closest friends. The key word here is “uniformly.” The second are people who I refer to as “naysayers, doomsdayers, and dreamslayers.” Those people view every glass as half empty and every personal aspiration as out-of-reach or self-indulgent.

The second development is my sense of urgency to accomplish things as my vitality naturally diminishes with age, albeit only a bit. Next year I’m climbing Mt. Kilimanjaro. There’s nothing magic about this particular goal except as a metaphor and for propulsion. I’m also publishing a book entitled “Redefining Type A” (the subtitle is still being debated). I feel as if I have a long way to go and a short — or shorter — time to get there.

Coincidental to what I do for a living is the third development: my frustration with people who have stopped growing and are OK with that. These are people who seem to believe that the first 25% of life is for growing and the last 75% is for resting. They are who they are going to be. They’re satisfied, entitled, bored or resentful. Their skills are outdated and/or their perspectives have congealed and solidified. They pine for the way things used to be and whine about how things are. Many regard themselves as victims and all others as villains. I’m fortunate, however. The people who gravitate to working with me are not those people. My clients are executives and business owners committed to fulfilling productive visions of their lives.

The great business philosopher/consultant/speaker Jim Rohn once said, in describing what he did for a living, that he “worked on issues that matter with people who care.” I’d love to steal that and have it printed on the back of my business card. It describes me and my business to a tee.

Here are my 2010 wishes for you: Create the life you dream about. No excuses, no blame, no guilt. Do more; give more; spend some; save some. Become the person you have always wanted to be. Establish goals and take relevant action toward their achievement. Measure your progress; make course corrections along the way. Learn from your mistakes, of which there will be many if you’re actually doing things. Read the great books. Visit museums. Develop new skills. Make new friends and appreciate the ones you already have.

Most of all, whatever your aspirations, never quit!

My friend and trainer to elite athletes (Drew Brees and LaDanien Tomlinson, among others), Todd Durkin, admonishes and encourages others with the phrase “and then some.” You want to be a great leader? Be a great leader, AND THEN SOME! A great dad? Be a great dad, AND THEN SOME! Along the same line, here’s my question for you: If it isn’t worth doing well, is it worth doing at all?

Don’t wait; the time for action is now!!

A couple of years ago, I invoked the name of John Goddard to make a point about personal growth. His name, his life and his accomplishments are worth mentioning again here, for context.

Goddard is one of the world’s great adventurers. Articles about him have been written in many renowned publications. At the age of 15, he created a list of the things he wanted to do, see or experience during his lifetime. Among his accomplishments, he visited the Great Wall of China; he attended the Rose Parade; he retraced the route of Marco Polo; he climbed the Matterhorn in a blizzard that was so bad, even the professional climbers wouldn’t do it.

Here’s Goddard’s wish list. Items with an asterisk are those he completed by the age of 74.

The List

EXPLORE:
1. * Nile River
2. * Amazon River
3. * Congo River
4. * Colorado River
5. Yangtze River, China
6. Niger River
7. Orinoco River, Venezuela
8. * Rio Coco, Nicaragua

STUDY PRIMITIVE CULTURES IN:
9. * The Congo
10. * New Guinea
11. * Brazil
12. * Borneo
13. * The Sudan (nearly buried alive in a sandstorm)
14. * Australia
15. * Kenya
16. * The Philippines
17. * Tanganyika (Now Tanzania)
18. * Ethiopia
19. * Nigeria
20. * Alaska

CLIMB:
21. Mt. Everest
22. Mt. Aconcagua, Argentina
23. Mt. McKinley
24. * Mt. Hauscaran, Peru
25. * Mt. Kilimanjaro
26. * Mt. Ararat, Turkey
27. * Mt. Kenya
28. Mt. Cook, New Zealand
29. * Mt. Popocatepetl, Mexico
30. * The Matterhorn
31. * Mt. Rainier
32. * Mt. Fuji
33. * Mt. Vesuvius
34. * Mt. Bromo, Java
35. * Grand Tetons
36. * Mt. Baldy, California

37.Carry out careers in medicine and exploration (studied premed, treats illnesses among primitive tribes)
38. Visit every country in the world (30 to go)
39. * Study Navaho and Hopi Indians
40. * Learn to fly a plane
41. * Ride horse in Rose Parade

PHOTOGRAPH:
42. * Iguacu Falls, Brazil
43. * Victoria Falls, Rhodesia (chased by a warthog in the process)
44. * Sutherland Falls, New Zealand
45. * Yosemite Falls
46. * Niagara Falls
47. * Retrace travels of Marco Polo and Alexander the Great

EXPLORE UNDERWATER:
48. * Coral reefs of Florida
49. * Great Barrier Reef, Australia (photographed a 300-pound clam)
50. * Red Sea
51. * Fiji Islands
52. * The Bahamas
53. * Explore Okefenokee Swamp and the Everglades

VISIT:
54. North and South Poles
55. * Great Wall of China
56. * Panama and Suez Canals
57. * Easter Island
58. * The Galapagos Islands
59. * Vatican City (saw the Pope)
60. * The Taj Mahal
61. * The Eiffel Tower
62. * The Blue Grotto
63. * The Tower of London
64. * The Leaning Tower of Pisa
65. * The Sacred Well of Chichen-Itza, Mexico
66. * Climb Ayers Rock in Australia
67. Follow River Jordan from Sea of Galilee to Dead Sea

SWIM IN:
68. * Lake Victoria
69. * Lake Superior
70. * Lake Tanganyika
71. * Lake Titicaca, S. America
72. * Lake Nicaragua

ACCOMPLISH:
73. * Become an Eagle Scout
74. * Dive in a submarine
75. * Land on and take of from an aircraft carrier
76. * Fly in a blimp, balloon and glider
77. * Ride an elephant, camel, ostrich and bronco
78. * Skin dive to 40 feet and hold breath two and a half minutes underwater.
79. * Catch a ten-pound lobster and a ten-inch abalone
80. * Play flute and violin
81. * Type 50 words a minute
82. * Make a parachute jump
83. * Learn water and snow skiing
84. * Go on a church mission
85. * Follow the John Muir trail
86. * Study native medicines and bring back useful ones
87. * Bag camera trophies of elephant, lion, rhino, cheetah, cape buffalo and whale
88. * Learn to fence
89. * Learn jujitsu
90. * Teach a college course
91. * Watch a cremation ceremony in Bali
92. * Explore depths of the sea
93. Appear in a Tarzan movie (He now considers this an irrelevant boyhood dream.)
94. Own a horse, chimpanzee, cheetah, ocelot, and coyote (yet to own a chimp or cheetah)
95. Become a ham radio operator
96. * Build own telescope
97. * Write a book (about his Nile trip)
98. * Publish an article in National Geographic Magazine
99. * High jump five feet
100. * Broad jump 15 feet
101. * Run mile in five minutes
102. * Weigh 175 pounds stripped (still does)
103. * Perform 200 sit-ups and 20 pull-ups
104. * Learn French, Spanish and Arabic
105. Study dragon lizards on Komodo Island (boat broke down within 20 miles of island)
106. * Visit birthplace of Grandfather Sorenson in Denmark
107. * Visit birthplace of Grandfather Goddard in England
108 * Ship aboard a freighter as a seaman
109. Read the entire Encyclopedia Britannica (read extensive parts in each volume)
110. * Read the Bible from cover to cover
111.* Read the works of Shakespeare, Plato, Aristotle, Dickens, Thoreau, Rousseau, Conrad, Hemingway, Twain, Burroughs, Talmage, Tolstoi, Longfellow, Keats, Poe, Bacon, Whittier, and Emerson (not every work of each)
112.* Become familiar with the compositions of Bach, Beethoven, Debussy, Ibert, Mendelssohn, Lalo, Liszt, Rimski-Korsakov, Respighi, Rachmaninoff, Paganini, Stravinsky, Toch, Tschaikosvsky, Verdi
113.* Become proficient in the use of a plane, motorcycle, tractor, surfboard, rifle, pistol, canoe, microscope, football, basketball, bow and arrow, lariat and boomerang
114. * Compose music
115. * Play Clair de Lune on the piano
116. * Watch fire-walking ceremony (in Bali and Surinam)
117. * Milk a poisonous snake (bitten by diamondback during photo session)
118. * Light a match with .22 rifle
119. * Visit a movie studio
120. * Climb Cheops’ pyramid
121. * Become a member of the Explorer’s Club and the Adventure’s Club
122. * Learn to play polo
123. * Travel through the Grand Canyon on foot and by boat
124. * Circumnavigate the globe (four times)
125. Visit the moon (”Someday, if God wills”)
126. * Marry and have children (has five children)
127. * Live to see the 21st century

What are you waiting for?

Note From Rand

Well, the football season is approaching its mid-point, and my Washington Redskins are a mess. That team is a testimonial to the impact of poor leadership. A friend of mine once told me “a fish rots from the head.” Amen!

Green Bay quarterback Aaron Rogers was just selected as “Offensive Player of the Month” in the NFL. On my Facebook page, I projected him as the league’s 2009 Offensive MVP. At this point, I like Drew Brees for that award — 20/20 hindsight. I also picked the Packers and the Ravens to go to the Super Bowl. The Packers won’t make it; the Ravens might.

My first article this month re-emphasizes the importance of a leader understanding the power of his voice. I cite an example from my own experience to make my point. The second one deals with voice mail, its misuse and poor use.

Happy Thanksgiving and I’ll see you in December. Until then, get real, get tough and get going!.

Know the Power of Your Own Voice

The new CEO of an unprofitable telecom, Frank hired me to help him create a corporate culture that was less “fraternal,” and more results-driven than it had been in the past. Until a few years earlier, the company had been a “quasi-government” entity, employing relatives and friends of cabinet secretaries, former cabinet secretaries, deceased oil barons, Saudi sheiks and various and sundry other hangers-on who were delighted to collect a paycheck, but not similarly enthused about hard work or value creation. The company was a great place to hang out with one’s buddies from just after breakfast until just before the cocktail hour.

They had recently been acquired by a private equity firm serious about making money and with a reputation for constantly prodding the leaders of companies it owned to achieve challenging financial commitments. Frank was equally serious. A 50% improvement in EBITDA coupled with 25% top-line growth would result in about $70 million in his pocket if the owner sold the company as planned, two years out.

Serious dough, n’est pas?!

Frank took his first six months to assess the state of the organization and craft his plan for improvement. He then assembled an “all-hands” meeting to announce his plans and to entertain questions. I was excited to watch his “pitch.” He was a brilliant presenter with a corresponding command of detail that onlookers often described as “breathtaking.”

The first 30 minutes or so of his presentation was awe-inspiring. Frank wove a tale that honored the past but, at the same time, outlined challenges that would overtake the company if things didn’t change. People were riveted. He prowled the stage like a cat. He deftly balanced his emotions — enthusiasm, joviality, concern. It was brilliant.

Then the bottom fell out.

As he described the culture he envisioned for the company – one that should be “merit” rather than “politically driven” – he said the following: “We’re not here to make friends!”

Yikes!

The mood in the room changed instantly: from eager anticipation to quiet concern and then to cynicism and anger. It was obvious, but Frank didn’t see it. He was wrapped up telling his story and painting his picture of a future that would be brighter if everyone focused on value creation. No one heard any of that; they were fixated on, “We’re not here to make friends.”

Frank concluded his presentation and received mild applause. Without that one comment, it would have been a wildly enthusiastic standing ovation. What a shame.

Afterwards, he asked me how I thought things went. I’m sure he believed that my reaction would be a back slapping, “Frank, you da man!” Instead, I said, “Houston, we have a problem.” When he asked why, I explained that the look that overtook attendees’ faces when he made his “friends” remark polluted their collective perception of his entire presentation.

He couldn’t believe it. Incensed, he asked me to informally survey a small number of key staffers. Their input confirmed my suspicion.

I’ll cut to the chase: Frank spent the next two years repairing the damage from that one comment. He apologized in the company newspaper and in videoconferences. He used part of virtually every interaction to provide context for his comment. While most people said that they understood, my sense was that his explanations were the equivalent of a page 10 retraction of a page 1 story.

Here’s the implication for you: What you say may not be what people hear. If you lead people (or, really, even if you don’t), you have to understand people’s context. Every human being brings unique “baggage” to every interaction. If your success depends on people understanding your intentions, you have to be absolutely precise with your words and clear about their context.

Successful Voice Mail Protocol

Try this: Randomly call 10 business associates and listen to their voice mail greetings. “What if they answer their phones,” you ask? Don’t worry; they probably won’t. Most people don’t actually answer their phones any more (more about that shortly). Unless you are completely desensitized, you’ll be amazed at the (poor) quality of their greetings. Following are a few examples and my suggestions for improvement:

• The executive that has his assistant leave his/her voice on the message rather than his own.

That greeting implies this: “Your call isn’t important enough for me to even leave my own recorded voice for you, you inconsequential twerp!”

The solution is obvious: Leave your own voice, not a surrogate’s.

• The voice mail greeting that says this: “I’ll return your call at my earliest convenience.”

This is NOT an appropriate response to a call. When I hear this, my reaction is: “What if it isn’t convenient until next month, you bone head? What if I’m a customer wanting to do business with you?”

The solution: Say this: “I’ll return your call shortly.” Then, do it!

• The greeting that sounds like the greeter is in pain or blasé about life in general.

The solution: Get a clue! People do not want to do business with someone who sounds like he needs an adrenalin injection. Pep it up! Sound like you mean it!

• The greeting that says: “We’re closed for Thanksgiving. We’ll be open again on Monday.”

The problem with this greeting is that it isn’t appropriate in August!

The solution: It’s OK to leave a “one size fits all” voice mail greeting. When you choose to change it up a bit, however, and leave one that is day/date specific, make sure you change it when it’s no longer appropriate.

• The greeter who never answers his phone, but uses voice mail to screen calls. This person then decides whether to return specific calls at all…EVER!

The solution: Anyone who employs voice mail for this reason should pack his bags, lock his office, quit his job and go home. He lacks the manners and judgment to be successful.

If you want to hear a great voice mail greeting, call and listen to mine (301) 482-2598. Don’t leave a message, however, because I don’t want to talk to you — only kidding!

Note From Rand

Somehow, somewhere, someone developed the following perspective that permeated and finally pervaded business: With enough work, a person can change anything about himself. That assertion is simply untrue. My first article cites one example: character. I believe you’ll like it; I know you’ll find it illuminating.

My second article this month examines the importance of questions. I believe that most people, including business leaders, could benefit from asking themselves better questions about their milieu. I contend that if you want really great answers — answers that provoke, answers that incite, answers that instigate and irritate — you have to ask really great questions.

I’ll see you in November. In the meantime, you can always catch me on Facebook at http://www.facebook.com/rand.golletz. Until then, get real, get tough and get going.

When is a “Fixer-Upper” Really a “Tear-Down”?

You’ve seen the real estate ad. It goes something like this: “50 year-old home. Needs the tender, loving care of an owner with patience, talent and time.” My translation: “It’s a money pit. You’ll spend years trying to get it where you want it. You might succeed; you might fail. In either event, an adequate payback for your time, talent and money is highly unlikely.”

Real estate professionals call this kind of house a “fixer-upper.” I call it a “tear-down.”

Occasionally — actually, more often than I’d like — I get called by nervous CEOs or their HR heads to work with executives who are “tear-downs” masquerading as “fixer-uppers.”

What is an executive “tear-down”?

I once got a call from the CFO of a Fortune 500 company requesting that I contract to work with his controller. The CFO said that the controller would benefit greatly from working with an executive coach, and he had heard that I had a high level of success working with “tough guys” (his actual description). I laughed to myself because, while I actually had a record of success working with “harder-edged” executives, his description conjured up an image of DeNiro in Goodfellas.

I agreed to meet with the CFO to discuss the matter further. Here’s my (abbreviated) recollection of our conversation:

Him (forlorn): “Well Rand, it’s like this: Frank [not his real name] has a bit of a problem controlling his temper. A couple of weeks ago during one of his staff meetings, he yanked his phone out and threw it through the wall.”

Me (astonished but composed): “Is there more?”

Him (nervous and fidgety): “Well, yes, actually. During a discussion a couple of weeks before that, he took off his right shoe and smashed his heel through his computer screen.”

He went on to describe behavior that alternated between violent and destructive to property and verbally abusive to people, and it was escalating.

Me (increasingly wary and incredulous): “What’s the reason that you called me?”

Him (pleading but hopeful): “I’m hoping that you’ll work with this guy and fix him.”

Me: “I don’t fix people, but I’ll give you my quick take and a couple of insufficiently grounded recommendations. None of this will require you to pay me a penny. This guy appears to have a severe anger problem, an impulse control problem or both. [I know that by now you're marveling at my insight.] My guess is that before you realize any benefits from his getting help, he’s going to do some REAL damage. Here’s what I would do if I were you: I’d either fire him, require him to get psychiatric help (as a condition of ongoing employment), fire him as well as pay for his psychiatric help or give him a leave of absence — paid or otherwise — in order to get psychiatric help.

You are on the hook for this guy’s behavior. This is not an executive coaching challenge, although I’m sure that you’d be able to find a coach to tackle this, especially at the fee level you mentioned on the phone. I am not your guy, however.”

Why is this not a coaching challenge?

I won’t bore you with the rest of this story. Here are my key points:

Executive coaches can be really effective at identifying and dealing with many professional (and some personal) development challenges, including:

Knowledge and skill development

Creating and supporting the execution of specific, quantifiable development plans and

Procuring and providing feedback on executives’ actions.

Executive coaches should never be hired to work on significant “character issues” with people. You must go to great lengths to be sure that you are not engaged in folly, i.e., misdiagnosing a character flaw as a performance or development issue in order to delegate it (or abdicate) to an outside expert.

What is “character?”

I recently read the following definition of character: “The aggregate of personal attributes that enable a person to resist temptation and ethical compromise.”

That’ll do.

Here are some of those personal attributes:

Courage. Overcoming crippling fear (not the absence of fear).

Discipline. Doing what needs to be done, the way it needs to be done, when it needs to be done, EVERY TIME.

Persistence, resilience, perseverance and endurance. In total: Not quitting, being flexible, sticking to it and being tireless.

There are a lot more, but you get the idea. These attributes enable noble performance. They are cultivated by example, primarily early in life by caregivers, family and friends. They form the foundation on which knowledge and skills are built and without which knowledge and skills are useless.

The bottom line: Coaches cannot develop character. By the time someone becomes an executive, she either has it or she doesn’t.

If You Want Great Answers, Ask Great Questions

In my profession, I hear all kinds of excuses. Here’s one: “The economy is awful. How can our company possibly prosper during times like this?” And another: “We’re a small business. How can we compete against the big guys?”

You get the idea.

Some people, including executives, constantly make excuses in all arenas of their lives. A couple of years ago in this publication, I said the following: “It’s not your ’stuff’ that determines your success. It’s what you do about your ’stuff’ that determines your success. We all have ’stuff.’ Victims (and excuse makers) are on a recruiting mission to geometrically increase the membership of their two clubs: The Loyal Order of Irritating, Recreational Whining Victims of America and its sister organization The Submissive, Indulgent Enablers of the Loyal Order of Irritating, Recreational Whiners of America. The former group retains the services of personal injury lawyers ready to extract large sums of money from those they believe are to blame for their malaise — everyone but them. Members of the latter group (the farm team for the first group) listen and bob their heads in agreement as those victims whine. Both clubs meet at water coolers and in the restrooms of leading organizations.”

Implicit in that comment is my assertion that if you want to create success, you have to own your life — PERIOD! Furthermore, success depends upon asking questions that will yield powerful answers. The question “Why is everyone in the world conspiring to ruin my life?” yields very different answers than “What must I do to attract people into my life who support my success and happiness?” The question “What niche is Starbucks not filling that we can fill?” yields more productive answers than “Starbucks is a behemoth. How can we be expected to compete against them?”

Several years ago, I was hired to help the CEO of a Fortune 500 company instill a “questioning culture” in his company. It was November, and the company was experiencing a disappointing year. He wanted to use their annual, worldwide management meeting to provoke a high level of introspection and critical honesty. We separated the 200 attendees into groups of 10 and asked them to answer the following questions:

How can you leverage the [company name] brand and value proposition in a more focused and disciplined way next year than ever in the past?

What obstacles stood in the way of doing so and achieving this year’s planned results? Did you adequately anticipate them?

As this year progressed, did you create any “excuses” (for yourself, to make you feel less culpable) for not achieving planned results? What were they?

Success often breeds hubris. Did past successes lead to any overconfidence this year? In what way(s)? What will change next year?

Looking at next year, what stands between you and the achievement of your planned results?

In what ways are you “smarter” now that’ll better enable you to achieve next year’s planned results?

Were your expectations realistic this year?

Did your plans adequately identify and deal with opportunities and threats?

Are your results scorecard and review processes sufficient to identify slippage? What systems and processes must change for you to deal with slippage more effectively?

Are your internal systems sufficient to respond quickly and adequately to adverse conditions?

How do you respond to midterm negative change and surprises? Is this adequate?

When negative results surprise you:
Are you solution-oriented or blame-oriented?
Do you hold your entire team accountable rather than one person or function?

What are the consequences for not participating fully with the team?

Their answers resulted in many new insights that instigated a review and fundamental change in the company’s planning, performance review, leadership development and control processes. Again, if you want compelling answers, you have to ask compelling questions.