The Criminal Pursuit of Profits

I have...and I bet you too...have heard or read about this one!

The guy (referring to a leader) is a miracle worker...

He makes money where others can't...

He is an alchemist...

He is worth every penny of his salary and bonus...

or...it he?

If it seems to be too good to be true...it probably is!

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The frequency of "late-breaking" news reports, about companies breaking the law...in pursuit of increased profits...is increasing at an alarming rate!

As of late...Murdoch and his empire is on the brink of toppling... simply because of the emphasis on "the BIG story" and the relentless pursuit of money...

The good news is that these people are getting caught...

The bad news is that many of our leaders think that it is OK to act like this...and many continue to get away with it...

Organizational Leadership has at its core two simple objectives...

1 - To make a company profitable

and...

2 - Prove that the organization's success (every dollar obtained) was not ill-gotten...EVERY DOLLAR!

Leaders need to drive their organization towards "air-tight" income...not "iffy"...and definitely not illegally gotten gains!

"Whoops!"...or..."I didn't know!" just doesn't cut it in the 21st century!

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Think about it...if a company breaks the law to make money...it is conspiracy...it is racketeering...it is organized crime!

If laws are broken...it is the responsible ones who should pay for the crimes...

AND...

That begs the question...

What should the penalty be?

Someone will pay for the crime...either the guilty...or society...

If they aren't getting caught...it is us that is paying for their crime...think about it!

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The White-Collar Criminal

White-collar crime is treated less harshly than others...I do not believe that this should be the case...

In fact...I believe that it should be as harsh as the most heinous crimes against our society...

Why?

Because their acts are actually acts against our society and what we (as Americans) stand for!

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Who should be punished?

The answers are rather simple...

The highest level answer is...

The ones actually committing the crimes...

AND...

The ones who are responsible for overseeing the organization's integrity...and are called to ensure that every dollar is obtained with complete integrity...and honesty...

Sorting through the "responsibility" side of guilt can be daunting...but it doesn't need to be...

It can simply be a Title search across the company's organization chart...

The CEO...The CFO...actually anyone with a "C" in their title!

They use plausible deniability as an excuse...but the fact of the matter is...it is (or should be) part of their job description!

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A Deeper Dive into Responsibility

Responsibility falls into 2 simple categories...

• Direct Responsibility
• Indirect Responsibility

Let's look at what kind of activities fall into each of these...

Direct Responsibility is a "no-brainer" in most cases...but it is deeper than we normally accept...

The easiest one to identify is when an individual is directly responsible for the activity...which means...he or she does it...

In this instance...all of the EASY money obtained through their activity, is undeserved and all of the income; that of the organization and their personal income...including their salaries and bonuses should be seized and return to the public...(remember...this is a crime against the public)...

The individual should also serve jail time...because they have proved through their actions that they are a threat to our society...

WOW...THAT IS HARSH...BUT WAIT!

The second "Direct Responsibility" is also rather easy to identify...Activities that were conducted under the individual's direction and guidance!

In this instance...all of the EASY money obtained through their activity, is undeserved and all of the income; that of the organization and their personal income...including their salaries and bonuses should be seized and return to the public...

The individual should also serve jail time...because they have proved through their actions that they are a threat to our society...

Hmmmmm...I am seeing a pattern here,,,are you?

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Indirect Responsibility...

At this point the responsibility gets more difficult...however...it is just as simple when we look at it for what it is?

"C-Level" leaders should know what is going on within their organization...

Good and bad...

They should be asking..."Why is this division doing so well?"...as well as...."Why is this division doing so poorly?"

I have sat in many "C-Level" meetings where great quarterly reviews were lauded...rather than questioned!

If a leader is doing better than the norm...it should be questioned and scrutinized...not let-off the hook!

A Great Leader Scrutinizes growth with as much attention as they push for answers about sub-standard performance...

Looking the other way or not asking those questions is condoning or authorizing the activity...this makes the leader an accessory to the crime

In this instance...all of the EASY money obtained through their activity, is undeserved and all of the income; that of the organization and their personal income...including their salaries and bonuses should be seized and returned to the public...

The individual should also serve jail time...because they have proved through their actions that they are a threat to our society...

This takes away the "I wasn't unaware" excuse...

By definition...they should have been!

Another criminal activity of poor leadership comes from the "Bottom-line" driven beast...

The leader whose relentless drive pushes his or her people to profitability...under the threat of termination...

Mr. "You're Fired!...if you don't perform..."

He or she may not know how their underlings achieved their success...but anything obtained through threat or coercion...is anti-liberty...anti-American!  It is an act against the constitution!

You may recall that "Liberty" is the ability to act without threat or coercion...

It is a MAJOR breach of our American foundation...

In this instance...all of the EASY money obtained through their activity, is undeserved and all of the income; that of the organization and their personal income...including their salaries and bonuses should be seized and returned to the public...

The individual should also serve jail time...because they have proved through their actions that they are a threat to our society...

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A Call to Accountability...

Ultimately our 21st century system needs to provide no ways out for illegal activity...

White-collar crime is what put the US in the place that it is in...

It is the reason behind the unemployment rate...

It is why our home prices fell...

It is the reason for every negative economic situation I can think of!

We need to make the consequences drastic for illegal and anti-American behavior...

These consequences are the risk that leaders have to take in order to hold their position...

Leaders draw HUGE incomes and...

There needs to be a HUGE risk associated with it...

If they are not held accountable...and pay for their crimes...it is us who are criminal...

We are just as guilty as the leader who doesn't question how someone made so much money!

It is us who pay for it by our "looking the other way...and not asking..."How did they make so much money?"

We may not serve jail time...but ask anyone who is unemployed and wants to work...if it is not a punishment...

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The biggest mistake that we can make is not starting!

It is time for us to push our government to hold organizational leadership accountable for their activities...

They should not be allowed to run businesses like criminals and walk away with a slap on the hand...and HUGE bank accounts or trusts in other people's names...

White-collar crime is a MAJOR crime...it is happening all around us!

And many of the C-Level individuals continue to sleep well at night because they believe that we are too dumb to catch them!

Make no mistake...the 21st Century is different!

We are not dumb...

This century will go down in history as the century of Organizational Karma!

Enough said! 

Motivation and Success

The role of motivation in success cannot be overemphasized...

It is a given...that successful people are motivated...

To the achievement of success...

But how does it fit into the entire equation?

There are other critical components...

Intelligence...

Knowledge...

Action...

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So let's quickly look at each...

Let's start in the middle with knowledge...

Knowledge is simply acquired and retained information...Either through observation or experience...

Although it plays a big role...knowledge is the storage of a valuable asset...

Unapplied knowledge is like burying money...and going back to the cache 10 years later and expecting more than you hid!  There is no "interest" for that which in not working...

Intelligence is a step up from knowledge...it is applied knowledge...

Animals that "learn" something and apply that knowledge for "gain" are considered intelligent...

Like a certain species of bird that has learned to use a "sticky" twig...that it pokes down ant tunnels...the insects adhere to the twig...the bird pulls it from the tunnel...covered with ants...and feasts on insects that it couldn't reach with its beak!

That is intelligence!

This leads us to the last component of the equation...ACTION...

If you notice that knowledge is valueless without application...ACTION...

Intelligence does not exist without ACTION...

The question arises...where does consistent action arise from?

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What catalyzes action?

I know that you have already answered it...MOTIVATION...

There is no proof that knowledge or intelligence exists without action...

Action does not exist without motivation...

If I have heard it once...I have heard it a thousand times...

He or she is really intelligent...just not motivated...

I disagree...

There is no knowledge there...that can be proved...

There is no intelligence...that has been applied

The fact of the matter is...

He or she is no different than those who lack knowledge or intelligence...

He or she is just plain stupid...perhaps even worse...

Ponder this logic...next time you lack motivation...

Enough Said!

An Excerpt From "My Mentor" Meaningful Performance Evaluations

I started to open my mouth to respond in disbelief…and he immediately told me to stop and listen!

Your boss does not have the right to evaluate your performance…unless…you give that to him!

Most people are too stupid or lazy to realize that!

The only right that your boss has is to agree or disagree with you!

Your performance is yours and yours alone...

Do you realize that…?

I nodded in agreement…but it was a jump for me…because I too had been brainwashed by traditional management theories such as MBO…

You have something in your possession that will change the entire face of your evaluation…do you realize that?

I shook my head…I had no idea of what he was taking about…

Your notebook!

The light went on!

Yet he went on to confirm it!

Every time he gave you an assignment…you wrote down his expectations…I thought that was brilliant and began doing that my self!

You have a chronicle of exactly what he expected from you over the past year don’t you?
AND you know exactly how you did in relation to each of those expectations…right?

Perhaps you should make a list of everything that he assigned to you and ask him if he missed anything…

Then when that list is agreed upon…send him another column that lists what he told you he expected…

Then when that list is agreed upon…send him a list of how you performed in relation to those expectations…

Then when that list is agreed upon…send him your assessment of the expectations versus actual…

OR…

You could just leave it up to him to remember all that stuff…and gamble that you are at the top of his list!

He smiled and walked out…he knew that my evaluation was in 5 minutes and that my definition for being at a meeting on-time was 5 minutes early!

I walked down the hallway and just before I turned the corner...I looked back and he was standing in the doorway of his office...smiling...I smiled back...took a deep breath...and...

"Come on in Phil…I see you have your notebook…no assignments today…its all about you and last year’s performance…let me see…you had a pretty good year…wouldn’t you agree?"

I smiled and said…”Boss…we have a few weeks before the final reviews are due…what would you think if we stepped back and really worked this through?” “Rather than spending an hour today…let’s just take a few minutes and look at what I was assigned and make sure that we have captured everything that mattered! “Besides…I have 12 impromptu "one on ones" that I just came up! ”

"My Mentor"

At nearly 300 pages, my next book entitled "My Mentor" will be in print!

It is an honor for me to share my experiences with an awesome person...my mentor...and friend!

I was moved to transpose many pages from my journals when I realized that what he had said...was more than just good advice to an aspiring leader...but eerily prophetic being more relevant now than when he gave it to me...nearly a quarter century ago!

With trepidation...I shared my manuscript with a few close friends and critics...and received nothing but glowing reviews!

I am hoping that you'll enjoy the book as much as I enjoyed returning to that time in my life...

may you not only learn something that may take you to the next level in leadership...but also help you become a better mentor to those who can benefit from your advice and direction... 

Leadership and Criminal Minds

Throughout all of history we have been plagued with "confidence men."

These are individuals that deceive people by making others believe that they are something that they really aren't...

These are people who appear to have others interests at the top of their priority list...when in fact...it is only smoke and mirrors...that hides the fact that they are only concerned with taking advantage of the person...

These crooks hide behind the image of a doctor, or an investment broker...or a teacher...or a consultant...and take trusting people for everything they have...

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When you think of the the basic requirements of a leader...honesty and integrity seem to be "given" characteristics...

This means that if a person is recognized as a leader...they automatically possess those characteristics within their DNA and at the top of their priority list.

We automatically assume that if an individual rises to the top of an organization...they have consistently exhibited those characteristics...

Leaders who have criminal tendencies take advantage of the blind assumption (that they are honest and act with absolute integrity)...and steal us blind!

Lately this seems like it is no longer an exception...but a common behavior!

Shame on them...

Shame on us!

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It appears that many leaders feel sheltered from their organization's illegal activities...and their very own!

They love the rewards but want no liability for their behavior! 

We need to change this...

As customers...

As employees...

As stockholders...

As US and Global citizens...

No matter what you believe...it is us who ultimately pay for this...

The HUGE salaries and bonuses is your money...

The stock dividends are smaller than they could be...because these leaders banked the difference...

They are heroes to the shareholders and the investors "look the other way" as long as they get something out of their investments...

In the long run...these behaviors lead to failure...the stock or the company crashes...the shareholder cries foul...and the leader walks away with a BIG bank account because he or she sold his holdings before the crash!

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When reality hits us, we go no further than making an excuse for our blindness and live in a word of "denial"...saying that "we didn't see that one coming..."

The fact of the matter is...all of the signs were there!  Some are subtle...others jaded and others are outright blatant!

All we have to do is watch and listen...

Listen to their excuses...watch what they are doing!

Do they have a continuous playbook of excuses?

Are all of them pointing to someone other than themselves?

Are they selling off huge blocks of their stocks?

Are they trying to change laws rather than working within them?

Is the stock price the same this year as the past?  Higher or lower?

Are they focused on improvement and expansion?

I could ask hundreds of leading questions...but the fact of the matter is...everyone should be continually asking these questions...in good times and in bad times...

Everyone should be demanding accountability of their leaders...in good times and bad times...

BUT...

You have a job...so you thank God and look the other way!

You got you dividend check...and you hear about your neighbor's loss and look the other way...

You are getting what you paid for...so you look the other way...

We can no longer afford to look the other way...

Diverting our attention from the present...has dire effect on the future...

If it is too good to be true...or more comfortable than you expected...or performing better than you ever dreamed...then it is important that you ask "WHY?" AND take that opportunity to stage the future for the better!  It is our Quantum Obligation!

There is no such thing as "resting on your laurels!"  A bed made of sprigs and twigs is not comfortable...no matter how thick you make it!

AND without roots...plants wither and rot!

What a cool parallel!

Organizational performance must be rooted...and in soil that favors their growth and prosperity...

The nutrients of organizational success include:

Honesty
Integrity
Fore-sight
Customer attentiveness
Ecological responsibility

A true leader and his/her organization is selfless...by definition...and is rewarded by acting that way...100% of the time!

The rewards of that trait includes longevity and a guilt-free sleep!

We can not afford to allow even the slightest hint of criminal behavior...

Criminal minds always show themselves in criminal activity...

Nothing remains hidden...

"As a man thinketh...so is he!"

As a leader thinks...it will show in his/her behavior and in his/her organization!

There is no differentiating an organization from its leader...

For employees...as is the organization...so too are you!

For that very reason...employees should be watchdogs...

Calling their leadership to accountability...

His/her reputation is also yours...

If you are comfortable with a "criminal mind" then read no further...

If you are not...

Take action!

Your focus on today will assist in ensuring that you have a future!

The same is true for shareholders and customers...

Your relationship makes you part of the problem or part of the solution...

What are you doing?

Are you asking question that will ensure that your dividends are deserved...and your pay-check stable?

Enough Said!

Leadership, Gamers and Lay-offs

Although this may have been more timely a couple of years ago, we are still feeling the aftershocks of the  earthquake caused by the amassed organizational karma from the 20^th century.

When will we learn that...

“Nothing is free?”

and...

Every gain has a price…

and...

Every misdeed is ultimately recognized and punished…

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Being an effective 21^st Century Leader requires a deep understanding of this concept and accepting…(actually demanding) full responsibility for every organizational outcome (something that I see very few leaders willing to do today).

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Let’s shift gears for a moment and contemplate a huge injustice that we unwittingly bestowed upon our children…

VIDEO GAMES…

Video Game development has become a HUGE industry.

It has become so popular that a social segment called "Gamers" has arisen...

In short, video games are a social phenomenon!

There is an interesting parallel between video games and reality that is important enough to note…

But before we go there…let’s go back about a quarter century to the infancy of gaming!

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The game that started it all...

Pong…

The simple video ping-pong game…

Pong and those games that followed, missed and important element…

RECOURSE…

HUH?

Video games became the venue in which crazy things could be tried without any threats or punishments for failure...

In a macabre way...

The game stick (commonly called a joy stick) or controller should have had electrodes embedded in them that gave the “loser” a huge and “potentially fatal” shock.

Why would I suggest such a drastic measure?

Let's look at what has happened with video games...

Over time...video games have gotten more and more real!

A gamer can steal cars...kill people...conquer countries...and more!

Over the course of a quarter century and these cool games...

We have subtly taught our future leaders (gamers) that there is no loss related to wrong decisions…

In fact, there is a spin-off industry nearly as big as the gaming industry…

It is the industry that identifies and sells “cheat-codes!”

We unwittingly allow our children to buy victory and send a message that it is OK to cheat to win!

In the "gamer" world...breaking the rules is OK!

Gamers are lauded if they know some obscure trick that lets them win!  and…

I am afraid that they have transferred (through our apathy) that same attitude to their real lives!

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Think of how different it would be that if a gamer lost a game of “pong” and it cost them $250,000?

Or…they lost their girlfriend or boyfriend…

Or their best friends immediately died?

Or…they had to declare bankruptcy…or lost their car or their home?

Or they lost their video game system...

couldn't eat...

got sick...and couldn't afford a doctor

or worse...they died?

Extreme?

…YES!

Why would I take such a position?

Because "Leadership" is not a game…

Yet many leaders act as if it is!

They feel sheltered from recourse…that ANY mistake simply means a “system reset” or a start-over!

Other leaders act as if they live in the world of “cheat-codes”

Behaving as if it is OK to bend the rules to win the game…

And we support by lauding their prowess!

Just like the gamers bow to the cheats in their society!

Many leaders act as if they have no stake in the business game!

They are shielded by attornies and plausible deniability!

Could it be that they equate reality with gaming?

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21^st century leaders and those who aspire to real leadership success have to separate fiction from reality!

That separation is found in their taking responsibility and accepting the recourse for their actions and decisions…

Leaders who build an organization…add hundreds of people and then have to lay them off for any reason other than “an act of God” should reap the same recourse as those people who trusted them enough to take the job and the his or her empty promises!

21^st century leaders have to recognize that there is no success when “cheat codes” are used.

Or when they push the legal limits...

Or take advantage of legal loop-holes...

That kind of stuff is a 19^th and perhaps 20^th behavior, but not that of today!

If one aspires to be a 21^st century leader, they should step forward and take the consequences for every decision…not hide behind the statement “I am not going to be thrown under this bus!”

If jail is a component of the risk related to the reward…then take it…just like you took the money!

Business is not a game!

“No replays”

“No resets”

“No cheat codes”

Big Rewards has BIG RISK...the shock and awe that comes with the "jolt" of reality!

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All Leaders play with the lives of hundreds of people at stake.

They want to reap rewards and have no responsibility for loss!

If you are one that disagree with this…then it is time to assess your position as a leader…

Step up to the challenge or step down!

If you are a stockholder or an expendable worker...demand that your leadership steps up!

Our world will be better if we demand that from them! 

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“Employment at will” is a two way street…if you are a leader and promised employment…then provide it!

A lay-off is a leadership failure...the leader should be the first to go...

That termination will have the biggest bang for the buck...

Leaders are a "dime a dozen"...they can be replaced!  Just like everyone else that does get laid-off!

Let me qualify that previous thought...employment is not a lifetime guarantee!

A worker should be terminated if they broke some ethical or moral rule…

Hmmmmm…isn’t lying unethical?

Like lying to the Board of Directors...or one's employees?

Leaders who build huge corporations and then dissolve it…have lied to "the Board" and their people!

Their poor judgment and short-sightedness or self-centeredness not to mention their incompetency is grounds for termination…yet…it is the leaders who remain and the innocent who are asked to leave at a moment’s notice!

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How do we put the icing on this cake?

There is nothing sweet about what we have become!

I have a tendency to believe that we are not products of our video games…but that our video games are products of our basic social values and belief system…

Game have their place…but they are not real!

I would love nothing more than to attach a stun gun to the "joy stick"…and turn it into a "reality stick!"

It makes a Wii into a WHOA! 

We need to realize that there is no “joy” without the risk of “pain!”

Step up and be a 21st century leader!

Pura Vida

"I wasn't aware" ISN'T an Excuse!

The role of a leader in the 21st century is to maintain overall organizational performance and to "shift" that performance in an ever-improving direction.

Some 20th century leaders were good at:

1 - "castle building"

2 - "trouble shooting"

3 - "maintaining status quo"

The 21st century demands leaders capable of all three of those characteristics...

Let's look a bit deeper into those three...

Characteristic #1 could be called a "visionary"

Characteristic #2 could be called an "analyst"

Characteristic #3 could be called a "manager"

It is the combination and active presence of those three characteristics that make an individual a leader...not one or two...ALL THREE!

If an individual possesses #3 and is not effective with the other two...he/she is a manager...

If a person possesses #2 and #3 but lacks vision...leadership is still not present...

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I have personally watched many organizations schedule a majority of their meetings focused entirely on budget performance (the "missed your goals" side), and negative performance reviews...

This is the analytical side of leadership...

They totally neglect the stabilizing efforts (managing)...

And...

Do not have time to grow the business...(visionary)...

If an individual lays claim to leading an organization...they are admitting that they have full responsibility for the losses, the stability and the growth...

Leaders can not claim to that they were unaware of what was going on under "their watch" because they were distracted by work in another area...

"I was blind-sided!  I didn't realize...that my business was failing in that important sector...because I was focused on sales in this new area..." 

This is an admission of incompetence!

"I didn't know that illegal activity was going on!  Our company was growing fast and I left well enough alone..."

You get the picture!

A 21st century leader must be involved in three important activities...

1 - The things that are hurting or will hurt the company must be stopped...(the left side of the curve)
2 - Holding on to what the organization has...(the middle of the curve)
3 - Repeating the fleeting successes...(the right side of the curve)

Even a 20th century leader can not "plausibly deny" he or she was not aware of bad things happening in his or her organization...or say that they didn't know why great things were happening...that is pure insanity if they think that we'll believe it!

AND IF IT IS TRUE...

They really shouldn't be leading  a company...

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If you aspire to be a leader...you need to hone all three of those skills...

You must be an analyst, a manager and a visionary!

The 21st century is demanding that...