Stein on the Recession

In his own cheery, comedy-filled way, Ben Stein teaches us four lessons from the recession. Key lesson: policymakers have no idea where in the ocean this ship is sailing. Do they even know what ship they’re on?

Four for Thursday: Articles I’ve Read and You Should Too

The week saw the President in China; questions about increasing trade tension between the U.S. and China; continued strength for gold; Goldman Sachs and Warren Buffett launch an effort to support small business; wonderment at the supposed strong dollar policy; and retailers wondering whether the holiday shopping season, which offiially opens in eight days, will bring good cheer.

The Debt Economy, by James Surowiecki.

Main Street Tells Wall Street – Get a Real Job, by Susan Antilla. Reading this, the intensity, the passion, the feeling behind the comments struck me.  Yes, I thought, people are angry at Wall Street — the bailout, the bonuses — but the intensity of the remarks made an impression.

Six Reasons Richard Russell Wants to Own Gold. Richard Russell writes Dow Theory Letters, and regularly criticizes the Federal Reserve and the Fed system. He writes in an entertaining style. You may not like the technical approach to investment analysis, but Russell makes cogent arguments. Always a good read.

China and the American Jobs Machine, by Robert Reich.

Assessing Fit

In a previous post, I argued that an organization should assess a candidate’s cultural fit with it. How can you do that? What specific questions can you ask the candidate to assess fit? What questions should you ask yourself?

How Do You Learn?

For most of our lives, people tell us how to learn, or society dictates the how to us. Growing up, we sit in a classroom, listening to a teacher, taking notes and hopefully digesting the lesson. Perhaps the teacher intersperses exercises or group activities. We complete homework and assignments, and maybe even do (relatively simple) group projects.

Speech Fluff, Our Constitutional Moment and Faceless Leadership

Below are three of the articles I read this weekend.

Just the Facts, by Peggy Noonan. She makes a similar point to Edward Tufte’s about eliminating presentation fluff; she emphasizes removing fluff from speeches, at least in certain moments.

Wall Street Journal’s Weekend Interview with Seth Lipsky. Lipsky says the burgeoning role of government has people questioning the proper role of government in their lives.

The Cult of the Faceless Boss, which laments the demise of the flamboyant, visionary business leader. The article also raises other, implicit, questions:

• Must business leaders exhibit these traits to be successful?
• Or, is Jim Collins, who argues against these types of leadership traits in Good to Great and Built to Last, correct?
• Do visionary and flamboyant leadership traits always go together? Must they?
• Can different leadership styles be equally effective?
• Do different situations – cultures, companies, organizational ethos – demand different leadership styles?

Best-Managed Fast Food Restaurant in America?

Just off the Baltimore-Washington Parkway, on Route 198 in Laurel, sits a Chick-fil-A restaurant. From the outside, it appears just like any other fast food restaurant, but when you go inside, the differences become apparent. It’s the best fast food experience you’ve ever had.

Skills Versus Cultural Fit

Over the weekend, a friend asked me, ‘would you rather hire someone who has the exact skills you need or who would fit in well with the company?’ Of course, having both is preferred. But what if you really could only hire for one?

Let’s look at two potential candidates. Candidate H has average skills and experience – he could do the job competently – but seems like an excellent fit with the culture of the organization. Candidate E has exemplary skills and experience – far beyond what you’ve seen in other candidates – but the interviewers have some doubt as to how well he would fit into the culture. My argument is: hire H every time.

Four for Thursday: Articles I’ve Read and You Should Too

Tough week in the economy, even with the stock market gains: unemployment at 10.2% (and in reality probably much higher); small business lending remains in the dumps; gold hits a record; and the dollar continues to slide, even after Secretary Geithner reaffirms, in words, a strong dollar policy. Below are four great reads:

If Obama Is So Bad, Why are the Stock Markets Up?, by John Tamny, who argues the market has risen in response to President Obama’s key priorities floundering. Perhaps, but this run-up seems quite at odds with broader global economic reality. Is the market due for a fall after its nine-month rise?   

Which Will Win Out: Paper or Gold?, by William Rees-Mogg

A Weak Dollar Does Not Create Jobs, by Elizabeth MacDonald. By the way, George Will addresses the dollar’s decline today, a notable event because he does not often address economic matters.  

Review of Econoclasts, by Sean Rushton. (Full disclosure: Sean is a longtime friend and former colleague.)

The Beginning of Managerial Wisdom

“The beginning of wisdom is the definition of terms.” Socrates

Seeing this quote today made me ponder the first lesson in managerial wisdom. What realization must a new manager make in order to begin maturing into an effective manager?  It is this: the new manager must understand that the men and women in his charge have dreams, ambitions and goals which have nothing to do with their jobs or with him.

Berlin

Today, the 20^th anniversary of the fall of the Berlin Wall, offers the opportunity to reflect on leadership and how leaders can affect history, people and events. One important realization: leadership is primarily a moral undertaking. Skills, personality, and technique recede as distant considerations when we consider truly momentous examples of leadership.