Management Stories

Gordon Bell, a prominent investor who funds start-ups, is very blunt with executives of firms in his portfolio. For instance, when someone makes predictions for company performance, Bell will zero in on one number and ask the CEO, “Wanna bet? A side bet, you and me, for $1,000.” If the CEO gulps, Bell knows he or she has doubts. At least once, when an underperforming CEO didn’t take the bet, Bell had him fired. You can take this notion up a notch to engage in prediction markets, set up like a stock market, where people can buy and sell shares reflecting their honest assessment of how a particular plan will play out.

Source: Seven Ways to Fail Big by Paul B. Carroll and Chunka Mui | Harvard Business Review, September 2008

No Comments » Posted by Administrator / Entrepreneurship and Management and Organizational Behavior / HR and Success / Failure / Achievement

Almost one thousand years ago, in Moslem Spain, there lived a Jew named Rabbi Samuel the Prince. He was very wise, and rose to great power, becoming the Sultan’s treasurer. This aroused the jealousy of the other ministers, who planted rumors that Rabbi Samuel was embezzling money from the royal treasury.

The Sultan decided to put Rabbi Samuel to the test. One day, without warning, he called for Rabbi Samuel, and asked him to make a complete accounting of his personal wealth. Rabbi Samuel was taken aback, but he could not refuse the Sultan’s request. He sat at a table, asked for a quill and parchment, and began writing feverishly. After half an hour, he stopped, reviewed the list silently, and handed it to the Sultan.

The Sultan read the inventory carefully, and slammed it down angrily on the table. ‘Why, this is only a fraction of your wealth. I personally have given you far more than what you list here as your salary. This is a brazen lie! My advisors are correct – you have been dishonest with me in your monetary affairs. I shall personally confiscate everything you own. Guards, take this man away!’

‘Your Majesty’, responded Rabbi Samuel, ‘you asked me for an accounting of my wealth. As you can plainly see, my worldly possessions are not truly mine. At any time, they could be taken from me by robbers, war or natural disaster. In fact, your Majesty has just taken them from me with a single command.’

‘The only possession I truly own is that money which can never be taken from me – the money I have given to charity. You see, a Jew is commanded by the Torah to give one tenth of his income to those in need. The figure I gave you, your Majesty, was the total of all the moneys I have given to charity. That is my true wealth, for the benefit from that money remains mine forever, and can never be taken from me.’

The Sultan was impressed by this profound truth, and promoted Rabbi Samuel to even greater power in his kingdom.”

Rabbi Samuel has hit upon a fundamental aspect of human nature – we are easily confused between what is truly ours and what others grant us. The same is true of corporations. Our stock price is soaring, but that is something that is granted by investors, and could be taken away from us tomorrow by those very same investors, based on factors that are entirely out of our control. What, then, is truly ours? It’s our loyal, highly skilled employees, and the passion and innovation that they bring to their jobs. They are our true strategic assets, and they are what will keep us successful for years to come.

Source: An Introduction to Hasidic Management by Moshe Kranc

No Comments » Posted by Administrator / Ethics / Integrity and Miscellaneous

It is amazing how malleable memory and perception can be – much more than we think. For example, in one research study subjects were standing at an airport ticket counter. The ticket agent pretended to drop something, ducked behind the counter and a different person finished the transaction. Many of the subjects didn’t even recognize the change had been made. We tune out big chunks of the environment. In another study, subjects were asked to count the number of times players with white shirts passed a basketball in a video. Most of the subjects achieved a fairly accurate account of the passes, but only 42% saw something more important. A person in a black gorilla costume walks right into the center of the action, beats his chest and moves off. More than half the subjects were so engrossed in the task at hand that they couldn’t see the gorilla. An entire gorilla, right in front of their eyes! It is very sobering to think about. Our models and attention create blinders that limit what we see. What gorillas are moving through your field of vision right now that you fail to see?

Source: Jerry Wind (What’s Behind the 4-Minute Mile, Starbucks and the Moon Landing? The Power of Impossible Thinking | Knowledge@Wharton)

No Comments » Posted by Administrator / Organizational Behavior / HR and Personal Improvement

One of my most recent illustrations of leadership is an executive I know who was invited to a black-tie dinner in another city. Instead of taking her husband as escort, she took her 11-year-old son. I can only begin to describe how this simple act affected senior executives in a client firm with whom she was in the early stages of establishing a relationship. They were deeply moved with admiration and respect. In the words of one: “Her choice spoke volumes about who she was as a person and the organization that would promote her to a senior position.“ I think I can safely say that behavior would never be found in the most thorough survey of prescriptions for leadership. True leadership comes from who the person is – from his or her character.

Source: Viewpoint Leadership and the Learning Organisation by Charles F. Kiefer | Prism, Edition: 3 / 1995

No Comments » Posted by Administrator / Leadership

In 1999, I was invited to speak in Wellington, New Zealand. … The invitation came from the Women’s Leaders Network, a group that brought together women from around the world ….

A fascinating thing happened the day before I spoke. During a Q&A session…, a woman stood up and began to tell a story about her life. When she was finished, several other women stood up and sang a short song in unison.

I asked a woman from New Zealand what the singing meant.

In the tradition of the Maori, the indigenous people of New Zealand, a song is called a waiata and to stand in support of another by singing for them is to tautoko. The women’s song was a show of support for the woman who told her story.

How perfect! Engrained in the Maori culture is the honoring of other stories.

Witnessing this custom made me realize that we all need to honor the stories of other women, but more importantly, we need to honor ourselves and our own stories. Our experiences shape our wisdom, and we pass that wisdom down through storytelling.

Source: Hold This Thought | Aliza Sherman (original source: PowerTools for Women in Business: 10 Ways to Succeed in Life and Work)

No Comments » Posted by Administrator / Miscellaneous

There’s the story about a top salesman in the aircraft industry who messed up. He lost a $5,000,000 contract. At his desk the next morning he starts going through his papers - tidying them up, clearing his desk. He gets a phone call from his manager,

“Have you got 5 minutes? ”

“Sure” he mumbles and slowly makes his way up the stairs to his boss’ office.

As he enters the room he says “Look I know I got it wrong - I’m sorry - I’ve written my letter of resignation - here it is ” and puts it on the desk.

His manager looks at the letter, rips it in half, rips it in half again and puts it in the bin.

“You must be joking” she says smiling ” We’ve just spent $5,000,000 on your training - there’s no way you’re leaving until you’ve made that back for us.”

Source: Learning, Trust and Making Mistakes by Byron Kalies

2 Comments » Posted by Administrator / Management and Organizational Behavior / HR and Success / Failure / Achievement