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Monthly Archives: February 2016

Killing Me Softly and Absolutely

24 Wednesday Feb 2016

Posted by Burning Manager in Uncategorized

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absolutism, Antonin Scalia, art of compromise, authenticity, Brendan Dassey, compromise, Dolores Avery, Founding Fathers, hard is soft soft is hard, Making a Murderer, Manitowoc, Netflix;, Obama, Steven Avery, US Supreme Court, Wisconsin

 

Orange County News - Aug 29, 2005

Scalia: ‘Absolutely! What’s the question?’

My mind is still preoccupied with all things Stateside (as per my last blog about the US Primaries). Adding texture (as if it was needed) to the Primaries is the looming constitutional crisis of the replacement of recently deceased Antonin Scalia on the US Supreme Court. To those who are only occasional followers of the US Federal government system a quick rundown may be of value. There are basically four components, each designed specifically by the Founders to place a check on government to avoid abuse of power. The President is the Executive. While wielding a lot of power this is held in check by the other branches of Government e.g. Congress and the Supreme Court. Congress has two chambers being the House of Representatives and the Senate. To give an example of how the checks and balances work let’s consider the US going to war. Only the President, as Commander in Chief, can declare war but he needs Congress to vote the appropriations to fund it. The Supreme Court can rule on whether such action was unconstitutional and if so their decision becomes binding.

Why then am I focussing on this minutia of the US Supreme Court? Well for one the numbers are really important. There are nine judges in total so depending on the current set up you can have a liberal (by the numbers) court or a conservative one. This may be in accord or out of step with the political leanings of the executive. The death of Scalia, an arch conservative, means Obama has the opportunity to select his own (presumably liberal/progressive). This would mean for the first time in a long time that majority liberal decisions can be assumed more often than not. Nominations are fine but the candidate still needs Congress approval and that is where Obama may run out of time. The filibuster is very much part of the US political zeitgeist. This may well be a high risk strategy for the filibusters however because those seen obstructing a US President in the proper execution of his duties may well run foul of the voters in an election that also sees a number of Senators standing for re-election.

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Dolores Avery – Quite often on the other end when Steven was ‘phoning home’

I’m also into all things American at the moment because I am in the thrall of Making a Murderer currently playing on Netflix. For me this is the most compelling television since Breaking Bad and it’s a documentary to boot. If you haven’t seen it, it is worth the price of Netflix alone. Without giving too much away, the chief protagonist, Steven Avery, is twice convicted for two different crimes which he quite clearly did not commit. The Avery’s are ‘trailer trash’ and yet the manner in which they have conducted themselves throughout 10 or so hours of documentary footage is astounding. Their quiet dignity, especially that of the inimitable Dolores, is something that you just settle into and admire for it shows that class is no determinant of …errr…class.

[Look away now if you don’t want a spoiler].

Steven Avery – a redneck with a right to be hot under the collar

One particular aspect of the Steven Avery story has struck me. I’ll call it absolutism. At his second trial, when he is tried for a brutal murder and disposal of a corpse, one of the jurors had to be relieved of their duties for family illness. He later advised that on immediately retiring to the Jury room an initial straw poll of the jurors was taken. The results were seven not guilty and three guilty; with one undecided. The verdict brought down at the end was Avery guilty of murder. What this said to me was that the absolutists on the jury had prevailed. Those of a more flexible mindset were drawn across to the clearly nonsensical decision to pronounce a guilty verdict by the three unwilling to yield. This had me in reflection mode. What is it about the absolutists that make the pragmatists want to compromise? I also reflected on the absolutism underpinning the verdict which is the presumption that the State is both more credible and important than the individual. Surely this flies in the face of the structure of Government put in place by the Founding Fathers? This is something Justice Scalia would find deeply upsetting.

Yet there is probably no greater exponent of absolutism in modern times than Supreme Court Judge Scalia himself. Often the ‘swing voter’ on the Supreme Court he wrote many judgements and he is known for his very conservative and strict adherence to the principles laid out in the Constitution. He used as his guiding principles the Founding Fathers’ absolute intent. Seldom did he take into account we live in a different age; a different time. Consequently America has been held back in some areas e.g. stem cell research as a result. Not surprising he was pretty robust on the defence of the Second Amendment (the right to bear arms) costing how many lives we can never know.

This strict adherence to principles without the pragmatism to know when to be firm and when to be flexible strikes me as an individual who does not understand, or refuses to accept the beauty of compromise. Not compromise when you are not being authentic. Not compromise when it makes it feel like you are not living your truth. Not compromise where you feel you have given a little of your soul away in the process, or betraying yourself ( a la Caroline Myss). Rather, compromise where your mindfulness and emotional intelligence has recognised the face issues of the other party and acknowledged that victory at all costs is ultimately a shallow exercise. It’s called the ‘art of compromise’ for a reason. It needs real artistry to achieve i.e. creativity, nuance, style and sensitivity.

I’ve been a long time believer that there are many false truisms in life and management. One of the biggest I think is that acting without compromise is hard and compromising is easy. I call this ‘hard is soft; soft is hard’. Being unyielding is as easy as pie. You pull the shutters down and just dig in. It’s not about tenacity it’s more about tuning out. Compromise on the other hand is much more difficult. There is an intense vulnerability at play here. Knowing what to hold firm to and what to compromise on is really hard. Knowing that your colleagues might ridicule you for bending or folding is hard to do. It’s about strength of character. That might sound counter-intuitive but sometimes to display our vulnerability is the hardest thing of all. To do so is to be authentic. Authenticity is seldom detectable in the un-yielding. The absolutists don’t give us enough of an insight into their inner workings to allow us to properly ‘feel’ them. The unyielding wall that is their lack of compromise is a barrier behind which they hide and makes an emotionally intelligent exchange with them well-nigh impossible. It’s a black and white approach to life and work when in fact the continuum of black and white has all shades of grey in between. That’s why I believe it’s beholden on those professions that come from an absolutist tradition e.g. accountants, engineers etc. to learn the complexity of management and unlearn much of what their underpinning knowledge has taught them. It’s doubtful that they will come to this heuristically.

And so to the jurors in the Steven Avery case. The three -probably biased before the case- jurors who held out for the guilty verdict must have just stood their ground so firmly that the others found they inappropriately compromised their own beliefs for the sake of expediency. In such cases this is not an authentic compromise position. The lesson that Steven Avery lives to this very day in a Wisconsin prison is that absolutism cannot be applied absolutely. The problem is the absolutists have no idea about how to shift their paradigm.

Two things I hope we can look forward to in the not too distant future. Firstly a new Supreme Court judge who has the wisdom to guide the US in the decades that follow bringing down well-reasoned and compassionate rulings and secondly the exoneration and compensation of Steven Avery and Brendan Dassey for crimes they clearly did not commit. Of that I’m absolutely certain.

No Regrets for the Comeback Kids

17 Wednesday Feb 2016

Posted by Burning Manager in Uncategorized

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Bernie Sanders, Bill Clinton, Blockchain, Democrats, Donald Trump, Frank Sinatra, From Here to Eternity, Hillary Clinton, IoT, Old Blue Eyes, Presidential Elections, Primaries, Rat Pack, Republicans, The Comeback Kid

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Those who follow my blogs regularly know, music is very important to me and I am pretty much across most forms of modern music with a pretty eclectic taste – some might even say catholic! My guilty secret is I’m also a huge Sinatra fan. That’s music from a previous generation – my Dad’s to be exact. ‘Old Blue Eyes’ never really made the transition – he didn’t rate ‘pop’ music and why would he? The stripped back sound of the Beatles compared to the arrangements of Billy May or Nelson Riddle must have sounded very hollow at the time.

Frank’s most well -known song to non-aficionados is likely to be ‘My Way’. The famous line from the song sung in Sinatra’s inimitable style is ‘regrets I’ve had a few, but then again too few to mention’. That’s not a bad motto to take through life both work and personal. Speaking of regrets I have one of my own as far as Sinatra is concerned. I had the chance to see him, Sammy Davis Jnr and Liza Minnelli at the Royal Albert Hall in April in 1989. Didn’t get the tickets quick enough though. Act now act decisively -not a bad motto to take through life; both work and personal either. Almost certainly what a President is expected to do.

What characterised the Sinatra story is how he was able to rejuvenate his career when it looked in the early 1950s that it was all but over after being dumped by both Columbia, his record company, and the Hollywood studios. The scale of the comeback is such that it is unrivalled in the halls of music then and since.

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Of course the phrase ‘comeback kid’ is more recently associated with Bill Clinton’s turnaround of his fortunes in the primaries to be the Presidential candidate for the Democrats in the 1992 Presidential election campaign. He was third in the Iowa caucus and trailed in New Hampshire before pulling up a creditable second after appearing on 60 Minutes to rebuff charges of an affair. The rest they say is history.

Why am I reflecting on American politics? Because America is still the major super power and what happens in America has a direct impact here in Australia. We are in many ways the 51st State of America. It is essential therefore to be across American politics for the geo-political understanding of both the world and our region. The Presidential nomination race is hotting up and there are many layers to it that can be revealing for the world of business and life.

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For many Democrats there was really only one candidate on the scene for a long time – Hillary Clinton. She’s a seasoned performer, from a ruling dynasty and a pragmatist. But along comes ‘old’ (74) Bernie Sanders, a maverick and we end up having a good old fashioned, but so far quite polite, ‘ding dong’. What distinguishes Sanders from Clinton is the fact that, believe it or not, he appeals to the younger voters and is seen as from ‘left-field’ (always a favourite of the young). He’s also an unapologetic ‘socialist’ who comes from a position of ideology. Compare and contrast this with our own recent Prime Ministerial change were we have switched from the ideologue Abbott to the pragmatist Turnbull.

how-much-donald-trump-makes-in-speaking-fees-compared-to-everyone-else

The elephant in the room (reference to the Republican emblem) is of course Donald J Trump. After losing in Iowa he has come back to win the New Hampshire Primary. Whether or not his maverick style will sustain itself across the duration of the campaign remains to be seen, but he is clearly appealing to sections of the Republican Party and therefore parts of America. Once again it is this unique or maverick approach that is resonating. The cookie-cutter politician with the best dollars behind them doesn’t appear, thus far anyway, to be what the public want. The dynastic ruling families of Clinton and Bush appear also to be out of favour. People want fresh; people want authenticity. Trump and Sanders don’t appear over rehearsed. The politically over-coiffured look is no longer de rigueur. An appealing narrative and being true to yourself appear to be the two key ingredients. This is scary for the myriad of political advisers to the candidates because prepping for a debate on Fox is within their span of control. Controlling authenticity or generating a ‘back story’ is well-nigh impossible to achieve. The latter may be possible but not if you want to achieve the former. The secrets of how to find favour with the public are known to very few.

The reason Sinatra fell out of favour with the public was because his public persona was damaged by his affair with Ava Gardner. His back story was blemished and the public didn’t take too kindly to that. So he packs his bags and joins another pack of guys hanging out in Las Vegas. The ‘Rat Pack’ is born. He spends time in this artistic purgatory and redeems himself through presenting an image to the public as a serious actor in the role of Private Angelo Maggio who suffers his own redemption and on screen atonement (death). While Burt Lancaster will be forever remembered for the scandalous (at the time) water’s edge embrace with Deborah Kerr in From Here to Eternity, the real success story was Frank as Maggio taking home the Oscar for Best Supporting Actor. His redemption, at a pay packet of only $8,000, was complete. So it’s possible to re-write the backstory, or put a different coat of paint on it. The other ‘comeback kid’, Bill Clinton, can also attest to that. He’s now an elder Statesman and people want him around their campaign in a way they once wanted distance. Hilary is often seen in his company where once that wasn’t the case. Even quoting the incumbent, Obama seems back in favour.

So this set of Primaries feels different. The mood seems to have switched from ‘Yes We Can’ to ‘Can You Really?’ Leaders have an important role in setting the tone for a country and also for an organisation. Behaviours at the top are very quickly mimicked and flow down at herculean speed. A heady mix of geo-political challenges await the new President including, but certainly not limited to, a sabre-rattling North Korea, Chinese militarism in the South China Sea, Syria, Daesh, instability in Libya, the almost forgotten annihilation of Yemen, domestic gun violence, the growing gap between rich and poor, the rise of Islamic militancy in Africa, potential Cold War with Russia and the selection of a new Supreme Court Justice. Whoever gets the job better know how to walk and chew gum at the same time.

Leaders of organisations, too, have a challenging agenda. There is the inexorable rise of digitisation, automation and artificial intelligence, Blockchain, IoT, how to motivate the workforce, gender pay inequality, a volatile stock market, suspiciously insecure banking sector, high debt levels and the need to keep all this together when faced with moments of self-doubt and real concern. Important to all leaders is remembering that mistakes can and do occur. The real measure of leadership is not necessarily always avoiding them but how you bounce back. We each must learn to be a ‘comeback kid’ and I suspect in the new world order more than once. To quote Frank ‘That’s Life!’

Decluttering for a Brand New Super

04 Thursday Feb 2016

Posted by Burning Manager in Uncategorized

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Bernie Fraser, brands, Built To Last, Industry Super Funds, KonMari, Porras & Collins, Retail super fund, superannuation

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Proof-Marie-Kondo-KonMari-Method-Works

A friend recommended KonMari to me the other day. To be honest I didn’t know what it was so I Googled it. It’s apparently a Japanese life-changing method of de-cluttering and tidying up. I’m a little sceptical given Japan has done little to tidy up issues like the comfort women etc. That said they are tidying up the southern oceans of those pesky rodents of the sea – whales. OK cynicism noted but parked! So I set forth to de-clutter a key part of my life – my home study. There’s a lot of rubbish in there, I admit, but some gems too. I’m not one to have my qualifications on display at work but I do like them up somewhere (all that hard work you see) so I just throw them up more or less at random on the walls of what my partner affectionately calls my ‘shrine’ (to myself I guess she’s suggesting). Feet kept firmly on the ground in our house!

That got me thinking. Back in the day you could just de-clutter, now it is a brand. Brands are everything we are told nowadays and to add to that, a brand must have a narrative – a story. Americans do brands best and you could do worse than read Built to Last by Porras and Collins who reflect on some long-lasting well-known brands that have survived the ravages of time e.g. Ford, Johnson & Johnson and IBM. Protecting brands is important, as is advancing them. For now back to KonMari.

If you are anything like me, the de-cluttering process follows something akin to the business life-cycle. Lots of initial enthusiasm with ‘good stuff’ heroically thrown out at the beginning (the growth spurt), only to plateau a bit (maturity) and at the end (decline) some of the good stuff transfers from the throw out pile to the keep pile. In this clean-up I noticed some superannuation notices for my children. I’ve been meaning to file them away but hadn’t got around to it. Superannuation is like that isn’t it? Don’t really have to deal with it until they reach about 55 years of age. Don’t worry though I’d have filed it by then! They are in Industry Super Funds; three to be precise. Good on them I thought, they will be taken care of. After all it’s the Industry Super Funds that everyone trusts. Talk about strong brands. If you showed anyone that cute (and genius) folded hand above hand sign and they are above 20 I’m guessing they would work out straight away that it’s an industry super fund…priceless. And if you continued your in-the-field market research and asked what it stood for i.e. what the brands says to you, they would likely respond with words like honesty, integrity, reliability etc. Go ahead and try it. I have and that’s the response I got.

We all know the adverts that have changed over the years, but the same folded hand sign has continued throughout. Bernie Fraser the old Governor of the Reserve Bank did it at one stage himself. There is no greater bastion of integrity and reliability than our Reserve Bank Governors, especially when retired. The latest iteration is two men seated side by side and the future value of their superannuation calculated out, presumably inclusive of fees and commissions etc. Not surprisingly the Industry Super Fund is the clear winner here and the Retail Super fund holder is left looking a little forlorn and sheepish…if only he’s opted for the Industry Fund!

A mirror image advert with two women uses exactly the same tactic. It annoys me every time I see it because how does one triangulate with only two reference points? If you want to get some prices to have a deck built at home the best and most often used method is to get three prices. Yes three because then you have a choice between highest, middle and lowest. Two gives you a choice between highest and next highest. The Industry Super Fund adverts do the latter. Just because the Industry Super Fund may be better than the retail fund does not mean there isn’t a third option (maybe a product not offered yet) which has fees at a much lesser rate than the other two. Getting slightly ripped off on the price of something is still being ripped off even if you saw it somewhere else marginally more expensive. You cannot make a value for money call from just two options, we know this from the business world. That is why Government procurement and lots of businesses have the three quote policy as a general rule of thumb.

So with this in mind – mid KonMari – I scrutinised the forms from the three Industry Super Funds. My respective 19 and 23 year olds, I noted, are well scaffolded with death cover, TPD and income protection. Only $3 a week for each fund, but bearing in mind the fact that most young people will not revisit the details of this paperwork (remember these are digital natives) for many years to come they have effectively been given the old ‘value add’ (code for things they don’t need wrapped up as something of great value). Call it for what it is – they are being ripped off. Remember this is the good old honest, reliable Industry Super Fund. I bet you didn’t factor this in when thinking about that brand.

For brands to work well their narrative has to be one built on a true foundation of integrity. Look at VW now to see the risk of not being authentic. Re-read Enron’s Core Values and laugh at the absurdity of that contradiction. This is what I was thinking as I fired a quick text off to both children suggesting they crack on and untick the default box so that their precious earnings don’t get wasted on value adds they don’t need at this time in their lives.

And so I realised that maybe there is something to KonMari after all. Not only do you get some of your home study back but you divest yourself of some long-held but ultimately inaccurate beliefs. Brands entice, brands assure and brands mislead. It’s worth remembering this next time you do a spring clean!

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