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Richest Man in The World

November 24, 2009 2 comments

The World’s Billionaires

#1 William Gates III

03.11.09, 06:00 PM EST

Software visionary regains title as the world’s richest man despite losing $18 billion in the past 12 months.


AP Photo/Kevin P. Casey
Net Worth:$40.0 bil
Fortune:self made
Source:Microsoft
Age:53
Country Of Citizenship:United States
Residence:Medina, Washington
Industry:Software
Education:Harvard University, Drop Out,
Marital Status:married, 3 children

Software visionary regains title as the world’s richest man despite losing $18 billion in the past 12 months. Stepped down from day-to-day duties at Microsoft last summer to devote his talents and riches to the Bill & Melinda Gates Foundation. Organization’s assets were $30 billion in January; annual letter lauds endowment manager Michael Larson for limiting last year’s losses to 20%. Gates decided to increase donations in 2009 to $3.8 billion, up 15% from 2008. Dedicated to fighting hunger in developing countries, improving education in America’s high schools and developing vaccines against malaria, tuberculosis and AIDS. Appointed Microsoft Office veteran Jeffrey Raikes chief exec of Gates Foundation in September. Gates remains Microsoft chairman. Sells shares each quarter, redeploys proceeds via investment vehicle Cascade; more than half of fortune invested outside Microsoft. Stock down 45% in past 12 months. “Creative capitalist” wants companies to match profitmaking with doing good.

Havard Case Study Book -

November 24, 2009 Leave a comment

Keeping Strategy on Track:

Product Description

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See how leading experts on strategy weigh in on these and other crucial questions and find answers to your toughest challenges in this collection of the most popular Harvard Business Review cases.

About the Author

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SUCCESS

November 24, 2009 1 comment

10 WAYS TO MAKE YOUR BUSINESS A SUCCESS

1. The experience and skills of the top managers.
Over half of business failures are directly related to managerial incompetence.

2. The energy, persistence and resourcefulness (the will to make the business succeed) of the top managers.
Many business owners have failed or come close several times before their “instant” success. Don’t give up.

3. A product that is at least a cut above the competition and service that doesn’t get in the way of people buying.
There must be a compelling reason to buy; the product is great, the people love to provide service, and the buying experience is easy and fun.

4. The ability to create a “buzz” around the product with aggressive and strategic marketing.
Make scarce marketing resources count. Do as much homework about your customers and their choices as you can before investing your marketing dollars.

5. Deal-making skills to sell the product at the highest possible price given your market.
It comes down to your customers’ perception of the value of your product and sometimes the power of your personality.

6. The ability to keep developing new products to retain and build a customer base.
Consider gradual product development based on improvements to the current product line and sold to the current customer base.

7. Deal-making skills to work with resource suppliers to keep costs low.
Keeping costs lower than competitors’ and continuing to look for cost reductions even when the business is profitable is key.

8. The maturity to treat employees, suppliers and partners fairly and respectfully.
Trust and respect result in productivity increases in ways that may be difficult to see and quantify.

9. Superior location and/or promotion creating a connection between your product and where it can be obtained.
Studies have shown it can take seeing your product or name seven times before a customer is ready to buy.

10. A steady source of business during both good economic times and downturns.
Over the long term, develop a product mix that will include winners during good economic times and other winners when times are tough.

ATTRACT PEOPLE IN BUSINESS

November 24, 2009 2 comments

TOP 5 WAYS TO BECOME ATTRACTIVE IN BUSINESS

Ever noticed how some people just seem to attract success? There’s you bashing away at your business, doing everything the manuals tell you to do and yet the person next door, doing seemingly very little, has a constant queue at the door.

How is this possible? What’s the secret?

One solution can be to master the power of attraction. Becoming attractive in business may sound a little new age, but if you’re big enough to embrace the concept you’re likely to be pleasantly surprised.

Irresistible attraction is created when someone is being totally authentic in their work and their life.

Huh? Ok, here’s a real life example: Put a toddler in a room full of people where only one is proficient and confident in dealing with children and see where the child is drawn. You guessed it!

Irresistible attraction comes from being so totally, absolutely committed to what you do and confident in your ability to do it, people (and opportunities) are drawn to you.

So, put your current thinking on hold for a few minutes and contemplate these five steps to becoming irresistibly attractive.

1. Practice being ‘Triple O’ – Organised, Open and Optimistic

Organized may translate into how quickly you respond to things, how effectively you follow-through on your promises. Doing what you say you’re going to do, behaving as you would like others to behave.

Open is about speaking the truth; being big enough to say ‘I don’t know the answer, but I’ll find out’. It’s about discussing the things you may often shy away from – your fees, your profit margins, your weaknesses. Being open means avoiding jargon; being knowledgeable, without being arrogant.

Optimistic is the ability to see opportunity where others see problems; to clearly empathise with a client who has concerns and create a picture of how things will look once you’ve performed your magic. Optimists avoid gossip, they challenge beliefs, they see a bright future and look beyond business cycles and talk of gloom.

2. Be generous
Shock, horror! Generosity in business whatever next?

Being generous with your time and generous with your advice doesn’t mean you’re doing stuff for nothing; rather it’s an avoidance of being hurried or incomplete in your support. If a business opportunity comes your way that appears not to suit you, think before being dismissive. Be generous enough to take in what’s being said and try to find a solution even if it gives work to others. You’ll be remembered for your generosity and generosity has a habit of getting repaid.

3. Shut up and listen

Like many of us mere men I suspect, it was something of a revelation when I grasped the concept that women like to be listened to. Often just that – listened to. We’re not expected to find a solution, indeed in many cases a solution is not what is required. The same can be true in business (and not just when dealing with women).

Listening to our clients and customers is something we do all too rarely. Next time you’re in a conversation and you feel yourself jumping to finish sentences or come up with solutions: STOP, SHUT UP and LISTEN!

Try reflecting back what you’ve heard, make sure you’ve listened intently and ask questions to take the conversation further. You may feel you have the answers (and indeed you may), but by listening more deeply you’ll be giving your clients much more and you’ll be forging a deeper relationship.

4. Develop the brand ‘you’

I think it was in the movie Wild at Heart when Nicholas Cage, after being asked why he wore a snakeskin jacket, responded: ‘I wear this jacket as a sign of my individuality and my belief in personal freedom.’ Ok, I’m not suggesting we all wear silly jackets, but we need to be clear on what our identity is; we need to feel comfortable in our own skin.

If you feel a sense of ‘disconnection’ anywhere in your business you’ll not be comfortable. You may hate gambling, yet be working for a gambling client. Dislike junk food, yet undertaking work for a fast food outlet. In the long term it won’t serve you well, because it’s stopping you being you and others will pick it up.

Get clear on the brand ‘you’ and be faithful to it.

5. Be a model

Best of all in the pursuit of the attraction principle is to be a model business person to those around you. Don’t accept second best. Avoid unsightly confrontations at all costs. Treat all with respect and humility. Never think of yourself as infallible, don’t view yourself as a star and don’t kid yourself that you know it all. None of us do.

So what do you think, are you prepared to give it a go?

Management Essential – Staying with NO

November 24, 2009 1 comment

 

Saying No in Business

No one likes hearing “No,” and few can resist pushing back — sometimes quite persistently. Roger Fisher, negotiation expert and coauthor of the widely influential book Getting to Yes, used to tell his law students that sometimes he wished he had written a book about getting to no and staying there. When disappointed family members or colleagues pushed back at his no, he would sometimes give up and give in.

Like Fisher, most of us find ourselves torn between our wish to stay with no and our desire to accommodate the person asking us for something. This tension is particularly acute when that person is a valued client or a senior colleague.

When we say no and find ourselves pressured to unsay it, we can of course just give in. But giving in, especially when it becomes a habit, can seriously damage our credibility and effectiveness as professionals. Here is how to say no in a way that both conveys your resolve and preserves your relationships.

Use a Neutral No
To say no and stay with it requires defusing emotion on both sides: our discomfort at staying with an unpopular no and our counterpart’s irritation, disappointment, or anger at hearing it. Use a neutral no to turn down the emotional temperature.

A neutral no is steady, uninflected, and clear. It’s mostly illustrated by what it’s not. It’s not harsh, it’s not pugnacious or apologetic, it’s not reluctant or heavily buffered, and it’s not overly nice. Neutral and nice are not the same. Even if you’re nice, use neutral to stay with no. By sticking with neutral, you’re concentrating on the business end of no, not the personal.

You want a referee’s manner. A ref just says what he says — good news for some, bad news for others — regardless of the strong feelings on both sides that his message may inspire. His job is to give his message neutrally and stay with it neutrally if challenged.

A neutral manner doesn’t prevent you from speaking directly about the friction your no creates. “It’s hard for me to tell you no; it must be hard for you to hear” is consistent with neutral. If you know or suspect why your counterpart is resisting your no, acknowledge his concern honestly but without giving hope. “You have a lot invested in what you’re asking, and it looks like I’m personally blocking you.” Give a reason or justification for your no. “I see my job as balancing valid, but competing, needs. I’m focusing on that.”

A neutral manner doesn’t prevent you from speaking directly about the friction your no creates. If you know or suspect why your counterpart is resisting your no, acknowledge his concern honestly but without giving hope.

Be Consistent
When explaining why you’re saying no, don’t volley different arguments with your counterpart. This just confuses both of you. If you have time to prepare for this conversation, have a consistent, cogent argument at the ready.

In some cases, you may want to tell your counterpart what you could say yes to. That’s not a foundation of staying with no, it’s an option and the beginning of a negotiation. If you’re open to that, you don’t have to wait for the counterpart to ask.

Explain the Real Reason You’re Saying No

Sometimes people hold back from explaining the real reason for their no, substituting instead lighter-weight reasons that they think their counterpart will find more palatable. The problem with this is that their counterpart usually finds it easy to swat away those lightweight reasons because they aren’t very persuasive. To limit the frustration on both sides, give reasons with good weight up front.

A junior analyst had been helping out a colleague by taking on some of his work when he was crunched. The problem was that she soon became swamped herself and the quality of her work was suffering. The next time he asked for her customary help, she said, “I have to say no — I don’t seem to be managing my time very well right now.” Her colleague disagreed; he said he thought she did a great job managing her time. Not accepting that she had a time-management problem, her colleague also didn’t accept her no.

Don’t Give False Hope
Staying with no tentatively, or with a show of reluctance, makes it easy for your counterpart to hope you will change your no — and hard for him to accept the no. It sounds like your no is on the edge of tipping over into yes, so your counterpart is encouraged to keep pushing.

Avoid a Battlefront Attitude
Not everyone tries to soften her no. Some of us say no combatively, and treat staying with no as escalating warfare. When staying with no feels like a triumph of the will, good outcomes — and good judgment — are in jeopardy.

Know Your Triggers
Your counterpart may try out different tactics to get you to yes your no. Does an ominous suggestion that the union will hear about this roll off you or rattle you? Do tears move you to offer a tissue or to fold? Clarifying for yourself ahead of time where your vulnerabilities lie helps you resist your counterpart’s tactics.

Practice Staying with No
If you want to get better at staying with no in the face of your counterpart’s resistance to it, practice with someone who will play the part of your worst nightmare in a protected setting. That way, you’ll be well prepared for when a real situation arises, when a lot is on the line.

IMPORTANCE OF LEADERSHIP

November 24, 2009 Leave a comment

Front and Center – Leadership Critical To Managing Change

 

Any organizational changes of signficance requires management and formal leaders to do what they are paid for — lead. That applies to negative, painful and traumatic changes like downsizing and layoffs, but it also applies to positive changes that affect the working lives of those in the organization. For more on the importance and functions of leadership, visit the Leadership Development Resource Center.
When change is imposed (as in downsizing scenarios), clearly the most important determinant of “getting through the swamp”, is the ability of leadership to…well, lead. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability, competence, and credibility of senior and middle management.

If you are to manage change effectively, you need to be aware that there are three distinct times zones where leadership is important. We can call these Preparing For the Journey, Slogging Through The Swamp, and After Arrival. We will look more carefully at each of these.

The Role of Leadership

In an organization where there is faith in the abilities of formal leaders, employees will look towards the leaders for a number of things. During drastic change times, employees will expect effective and sensible planning, confident and effective decision-making, and regular, complete communication that is timely. Also during these times of change, employees will perceive leadership as supportive, concerned and committed to their welfare, while at the same time recognizing that tough decisions need to be made. The best way to summarize is that there is a climate of trust between leader and the rest of the team. The existence of this trust, brings hope for better times in the future, and that makes coping with drastic change much easier.

In organizations characterized by poor leadership, employees expect nothing positive. In a climate of distrust, employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone’s best interests. Poor leadership means an absence of hope, which, if allowed to go on for too long, results in an organization becoming completely nonfunctioning. The organization must deal with the practical impact of unpleasant change, but more importantly, must labor under the weight of employees who have given up, have no faith in the system or in the ability of leaders to turn the organization around.

Leadership before, during and after change implementation is THE key to getting through the swamp. Unfortunately, if haven’t established a track record of effective leadership, by the time you have to deal with difficult changes, it may be too late.

Preparing For The Journey

It would be a mistake to assume that preparing for the journey takes place only after the destination has been defined or chosen. When we talk about preparing for the change journey, we are talking about leading in a way that lays the foundation or groundwork for ANY changes that may occur in the future. Preparing is about building resources, by building healthy organizations in the first place. Much like healthy people, who are better able to cope with infection or disease than unhealthy people, organization that are healthy in the first place are better able to deal with change.

As a leader you need to establish credibility and a track record of effective decision making, so that there is trust in your ability to figure out what is necessary to bring the organization through.

Slogging Through The Swamp

Leaders play a critical role during change implementation, the period from the announcement of change through the installation of the change. During this middle period the organization is the most unstable, characterized by confusion, fear, loss of direction, reduced productivity, and lack of clarity about direction and mandate. It can be a period of emotionalism, with employees grieving for what is lost, and initially unable to look to the future.

During this period, effective leaders need to focus on two things. First, the feelings and confusion of employees must be acknowledged and validated. Second, the leader must work with employees to begin creating a new vision of the altered workplace, and helping employees to understand the direction of the future. Focusing only on feelings, may result in wallowing. That is why it is necessary to begin the movement into the new ways or situations. Focusing only on the new vision may result in the perception that the leader is out of touch, cold and uncaring. A key part of leadership in this phase is knowing when to focus on the pain, and when to focus on building and moving into the future.

After Arrival

In a sense you never completely arrive, but here we are talking about the period where the initial instability of massive change has been reduced. People have become less emotional, and more stable, and with effective leadership during the previous phases, are now more open to locking in to the new directions, mandate and ways of doing

This is an ideal time for leaders to introduce positive new change, such as examination of unwieldy procedures or Total Quality Management. The critical thing here is that leaders must now offer hope that the organization is working towards being better, by solving problems and improving the quality of work life. While the new vision of the organization may have begun while people were slogging through the swamp, this is the time to complete the process, and make sure that people buy into it, and understand their roles in this new organization.



An Insight On Obama’s Leadership

November 24, 2009 Leave a comment

Six Months into the Job: How Successful Is the President’s Leadership Style?

Published: August 05, 2009 in Knowledge@Wharton

Article Image

With many of President Obama’s key agenda items still unresolved midway through his first year in office, a debate has started to brew over the effectiveness of his leadership strategy and style. Critics say his agenda is too broad and that he is yielding too much authority to Congress. But leadership experts at Wharton suggest that this approach may be necessary, given the multitude of challenges the President inherited when he took the oath of office.

By seeking major overhauls of health care and financial regulation, spending billions to stimulate the economy while reducing its impact on the environment, and unwinding one war while escalating another, some critics question whether Obama is trying to tackle too many problems at once. By doing so, they argue, Obama ignores the legacy of past presidents who maintained a more steady focus — such as Ronald Reagan, whose first year in office was devoted almost solely to his tax-cut plan and related measures, while Cold War diplomacy and other issues were placed on the back burner.

Among those well-known voices who argue that Obama’s first year should be focused on the economic meltdown — while other key issues can wait — is billionaire investment guru Warren Buffett, an Obama supporter, who has been quoted as saying that “[you] can’t expect people to unite behind you if you’re trying to jam a whole bunch of things down their throat.” Not surprisingly, Obama and his aides disagree, contending that an economic crisis presents a rare opportunity for accomplishing major changes in the body politic. “We don’t have the luxury of choosing between getting our economy moving now and rebuilding it over the long term,” the President said earlier this year.

Short Attention Spans

“We’ve known for a long time that attention spans are limited; as soon as we focus on one issue [our attention is taken away] from other goals or issues,” says Wharton management professor Adam M. Grant. “But leaders can get around that by developing a broad, unifying concept,” and then showing how each part of his or her program fits that well-understood goal.

Michael Useem, Wharton management professor and director of the Center for Leadership and Change Management, argues that a key criterion of presidential leadership is boldness in taking on the most challenging problems — and he gives Obama high marks for now. Anyone who wants to succeed in the nation’s highest office, he adds, “needs to embrace a willingness to make big decisions, to get into the game, to take on these wrenching issues that often have extreme conflict and pressure, with all kinds of advice coming in. But it’s also critical that he doesn’t shoot too much from the hip or give in to absolute paralysis.”

Useem says Obama’s approach to health care — ceding Congress a critical role in designing the plan and adopting a less than rigid stance on the specifics — is an example of another of the new President’s important leadership traits: Pragmatism. “If you go back and look at the election, health care was a huge, animating force in many of the states where he got a majority [of the votes], and he hasn’t forgotten that. But he is short on ideology and long on pragmatism.” Useem suggests that Obama’s management style is almost military in nature, comparable to calling on the knowledge and expertise of field commanders closest to the front lines to develop the tactics needed to achieve the broader strategy.

Stewart D. Friedman, a Wharton management professor who directs the Wharton Work/Life Integration Project, suggests that those who say Obama is taking on too many issues ignore the realities of the complex array of problems — not just the economy, but also ongoing wars in Afghanistan and Iraq — that he confronted from the moment he took the oath of office. “The short answer is that he didn’t have a choice when you look at the scope of the challenges we face as a country. How can you not deal with any of these? How can you not deal with health care or foreign affairs? I think the challenge for him is to have each piece of his leadership agenda cohere as a unified package.”

Obama himself has cited two former presidents as role models for leadership: Abraham Lincoln, who forged ahead with the transcontinental railroad project even as he waged the Civil War, and Franklin Delano Roosevelt, who, under the rubric of fighting the Depression, addressed everything from the electric grid (establishing the Tennessee Valley Authority) to problems facing senior citizens (setting up Social Security).

Lacking a Clear Vision

But Alvin Felzenberg, a lecturer at the University of Pennsylvania’s Annenberg School of Communications and author of a book on the presidency, The Leaders We Deserved (and a Few We Didn’t), says Obama has so far fallen short of those presidents who are most admired for leadership, and he argues that the lack of a clear overriding vision for his administration has been the main reason why.

Felzenberg — who worked as an aide to several moderate Republicans, including former New Jersey governor Tom Kean — says Obama’s decision to give Congress such a powerful role in drafting and debating key ingredients of his health care plan has resulted in a muddled vision that will be very difficult to sell to skeptical American taxpayers. “The President needs to take a long vacation, and he needs to take a legal pad and sit down, out of the public view, and ask himself how … he wants history to remember his presidency after four years, or after eight years.” Noting that President Dwight Eisenhower is still hailed for spearheading America’s interstate highway system in the 1950s, Felzenberg points out that Obama’s $787 billion stimulus package allocated just 11% of its funding for projects like roads and bridges, with the rest for tax cuts, local governments and other purposes.

Still, Wharton’s Grant sees a lot of opportunity for Obama — but only if the President does more to show how issues like health care and the economy are interrelated, and how the programs stem from broader values that he shares with the American public. “It’s very difficult to change people’s values and attitudes,” Grant says, “but it’s much more feasible to get change by connecting it to values and attitudes that people already have.”

Grant adds a caveat: It’s easier to tap into those abstract values — notions of freedom and fairness, for example — by using very concrete examples from everyday life that Americans can relate to. Indeed, this was an area in which Reagan was a pioneer, with his practice of inviting soldiers or homeless advocates to attend the State of the Union Address, during which he would call attention to their achievements.

Outsourcing Leadership

Grant suggests that Obama should work publicly with experts to win confidence for his programs — perhaps a general to speak about the situation in Afghanistan or respected doctors who back his health care plan. “There are studies showing that leadership can be outsourced,” Grant notes, adding that Americans have indicated they respond better to messages from people who have “first-hand experience, expertise and knowledge about the issues.”

However, outsourcing might also take away from what some experts consider to be one of Obama’s strongest points as a leader — his own ability to speak at length about complex issues in a way that is intelligent, rational and even calming. Wharton’s Friedman, for one, believes Obama’s soothing nature as a speaker may explain his appeal more than any ability to simplify his message. “His sense of competence and calm, and the pragmatic way that he’s been able to get things done to date, have given people a lot of confidence,” says Friedman, describing Obama as “unflappable.”

Useem notes that according to David Gergen, who has advised four presidents, one of the most important elements of presidential leadership is ambition — not the personal kind, but an ambition for the country. “As President, Barack Obama is very ambitious. We know the list — the litany of objectives like health care, economic recovery, ending two wars and changing the way that the court system and Congress operate.”

Aiming to tackle so many issues in his first term is emblematic of another essential leadership quality — risk-taking, according to Useem. While Obama has made it clear that he has studied former leaders — especially Roosevelt and Lincoln — he needs to be careful not to be perceived as trying too hard to copy or imitate any one or two specific past presidents. ”If it looks like he’s trying to emulate someone else, people are not going to like that.”

But both Useem and Friedman say they believe that authenticity — and Obama’s appearance of being comfortable with who he is — have so far been one of his strong points.

Friedman — the author of Total Leadership, a book about integrating work and family life – has also been impressed with the way that Obama presents himself as a normal dad and a husband who still takes his wife Michelle out for “date night.” That image of a real-life family man could help him sway public opinion, Friedman believes. “He has a kind of humanity — he’s able to laugh at himself. That is a critical feature in building trust, because the way that a leader does that is by conveying authenticity.”

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