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2010 Executive Tidbits
IBM, P&G, General Mills, McKinsey, and McDonald's have the best manager training programs according to Fortune 2009. |
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Check out Keith's other site:
Virtual Writing Coach |
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The
Executive Connection SM
a publication of The Virtual Executive
Coach SM
"Vision + Accountability = Success!"
www.virtualexecutivecoach.com
October, 2008
In This Issue:
1. Preview
2. Executive Summary
3. The Financial Markets: An Editorial
4. Helpful Hints
1. Preview
The Executive Connection explores the creative and analytical
process of business development, team-building, and executive
development. We are an interactive community of executives
and small business owners who desire to network with like-minded
high-performance executives to enhance our knowledge,
skills, and aptitudes in the competitive business world.
Published monthly, the Newsletter offers coaching suggestions
around the topics of: business development, financing,
marketing, networking, incorporations, mergers, human
resources, governmental regulations, and tax laws. Topics
are presented from the perspective of Keith Barton and
represent only his ideas on creating and running your
business.
Because we are an interactive community of executives
and business owners, other viewpoints are welcomed and
may be printed in future monthly newsletters with permission
from Keith Barton.
2. Executive Summary
October, 2008
Dear Executive Connection Subscriber,
This month's newsletter features: The Financial Markets:
An Editorial
3. The Financial Markets: An Editorial
Okay, you've heard the news from both political candidates
about our woeful financial crisis and there is cause for
concern -- i.e. a 200 Billion dollar bail-out for Fannie
and Freddie; an 85 Billion bail-out for AIG, Barclays
saves Lehman Brothers on the heels of former brokerage
collapses on Wall Street. Who's minding the store? The
Democrats would say "no one". All Bush appointees are
clueless and didn't see the train wreck coming; Republicans
blame a democratic Congress who vetoed reforms to increase
regulation on banks and lending institutions in 2005.
Whoever is responsible isn't owning up to it, and we,
the taxpayers are footing the bill to the tune of $2400
per taxpayer.
Let's look at a few basic management principles. Number
one is leadership (or lack thereof). Remember the Enron
debacle and Ken Lay telling stockholders holding worthless
paper to"Don't worry, a turnaround is coming." Reminds
me of Alfred E. Newman of Mad Magazine -- "What,
me worry?". The chair of the Securities and Exchange Commission
(SEC) should be regulating and setting monetary policy.
Instead, we are using taxpayer money to shore up bungling
and incompetent leadership who are raking in billions
of dollars in compensation before the house of cards collapses.
The S&L crisis of the 90s was similar in that loans were
being made without sufficient personalized collateral
and greed again was the culprit as evidenced by the Charles
Keating debacle. Leaders are paid to keep current on what's
going on inside their companies; if Enron taught us anything
it's that "dummy books" are illegal and unethical and
draws a wedge between the haves and have-nots.
Number two is management (or lack thereof), especially
the regulatory part which is generally left to internal
auditors who are paid by the company they work for. It's
like the fox watching the hen house. Anyone who has worked
IA knows that they are unpopular within the organization.
Everyone runs when they see them coming and reports often
end up collecting dust in the CEO's office. Furthermore
the Board of Directors are kept in the dark and provided
a set of "Teflon books" that erroneously suggests that
"everything is well in Kansas". Management should be an
active verb, not a noun. CEOs often leave the mechanics
of running the daily operations to a COO who depends on
VPs whose job it is to report accurately up the chain
what's going on. CEOs should concentrate more on daily
operations and leave the strategic planning and external
factors to the "planners and outside consultants" who
are in a dotted relationship to the CEO. This gives your
consultants the freedom they need to make recommendations
without political fall-out or recourse from the company
(unless their contract is not renewed).
Number three is to remain current with technology but
not at the expense of your customers. IT should be a support
function and should not drive your business. It's nice
to give your customers "more bang for the buck" but technology
is cyclical and the information should be supportive of
the company's strategic plan including vision and values
statements. Time frames should be 3-5 years and include
measurable goals on how to position your company in a
competitive market. If you are a financial lending institution,
then how are you going to draw and keep customers, beyond
the ads and promises of "friendly customer service"?
The most important variable for financial markets is "volatility",
which has to do with the risk-benefit of one's investment.
Are you dealing with individual or institutional investors?
Do you stress both income and dividends as in most balanced
funds? If you are in a large growth fund you need to look
at 1, 3, 5, and 10 year average returns. Also one's portfolio
should be diversified using income-averaging investing
(a certain amount invested each month for the long-term),
rather than short-term investing. If you're in individual
stocks you should know something about the companies you
invest in such as K-1s and other financial data from Moody
or other reputable watchdog company. Stay away from commodities,
derivatives, and junk bonds. If you're in a mutual fund
look at the volatility ratings of the different funds.
In current economic times it's better to be in a balanced
than a growth fund; to have more liquidity such as municipal
and federally insured bonds. The closer you are to retirement
(3-5 years) the more liquid your funds should be.
So back to the hysteria on Wall Street. My advice is that
if you are not going to retire or withdraw your retirement
funds in the next two years that you wait out the current
bear market and have a preset plan to re-distribute your
funds into more liquid assets at a certain level of the
market-e.g. 12,000 DOW or some other index. The market
will correct itself after the panic selling ceases and
the election is over. I look for an upturn after the election,
regardless who wins and more optimism in January after
a new President is sworn into office.
Helpful Hints:
- Review your portfolio with your financial advisor
at least twice a year, but no more than quarterly.
Consider his/her advice with your own judgment of
the markets and social psychology on crowd contagion
behaviors.
- Invest long-term (more than ten years) in upcoming "green technology" which was reported in a previous
newsletter; invest short-term (less than three years) in balanced funds and bonds.
- Develop a 3-5 year investment plan for yourself and review it annually. In your plan consider the
following: market strengths and weaknesses, external opportunities and threats, vision and mission
statements, values clarification, business strategies and key strategies for reaching them, goals, and
action plans.
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Contact Information:
Keith Barton, Ph.D.
Voice: 281-583-5005
Fax: 281-583-5008
Web: http://www.virtualexecutivecoach.com
E-Mail:
keith_barton@att.net
(c) Copyright 2008, Virtual Executive Coach SM
and A. Keith Barton, Ph.D.
All rights reserved.
Distribution Rights:
The Executive Connection SM is copyrighted,
but you may retransmit or distribute it to whomever you
wish as long as not a single word is changed, added, or
deleted, including the contact information. However, you
may not copy it to a web site.
Republication of The Executive Connection SM
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With advance permission, we are happy to edit an issue
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changes in the text are desired.
The Executive Connection SM
Mission:
The Executive Connection SM is dedicated to
helping first-time business owners and executives to recognize
resistance to change, while they create and manage their
own businesses. My goal is to help you transform your
vision into a successful business venture with the addition
of accountability structures and silent partner.
The Executive Connection SM is a publication
of The Virtual Executive Coach SM and Keith
Barton, Ph.D.
We would like The Executive Connection SM to
be as interactive as possible. If you have feedback, comments,
topics you would like addressed, or can suggest additional
resources to benefit us all, please email us at any time.
Send your e-mail to
keith_barton@att.net
.
Please forward this issue to anyone you think would find
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Archives:
You can read previous issues of The Executive Connection
SM in our archive section.
About Keith Barton, Ph.D
Dr. Barton received his Ph.D. in 1972 from the University
of Texas at Austin and has been a practicing therapist
for over thirty years. He is a graduate of MentorCoach
and is accepting new clients.
He has been an adjunct professor at the University of
South Carolina, consultant to Fortune 500 companies in
executive development, founded and managed Texas Community
Living Ventures, Inc., in 1986 for providing group home
services to persons with mental retardation. Keith founded
and has been running a clinical practice in Northwest Houston since 1990.
He writes part-time with the goal of completing one novel
a year. His desire to coach others derives from his passionate
interest in helping others become attuned to their creative
powers of storytelling.
Dr. Barton has training in coaching, cognitive and family
therapy and health psychology. He has published articles,
made presentations and conducted workshops about:
Small Business Development
Employee Wellness Programs
Anxiety and achievement
Stress management
Self-esteem
Communication skills
Leadership styles
Core values in the workplace
Executive Development
High-performance groups
Physician support groups
Writer support groups
© 2010
The Virtual Executive Coach SM
and Keith Barton.
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