Category Archives: Leadership & Management

Dee Hock – Management Principles

Dee Hock, the founder and former CEO of the Visa Credit Card Association is a well known figure in the financial and banking industry. A brief summary of his management principles are highlighted below.

1) Associates: Hiring and promotion of associates should be driven primarily by their integrity, followed by motivation, then capacity, understanding and finally knowledge. Moreover, seek associates with radically differing perspectives and abilities than yours. They will keep you honest.

2) Compensation: The best people are motivated not by money, but seeking alignment with their principles, morality and beliefs.

“Make a careful list of all things done to you that you abhorred. Don’t
do them to others, ever. Make another list of things done for you that
you loved. Do them for others, always.”

3) Creativity: The key is to clear the mind occupied with arcane paradigms of what you know, think and believe. The resulting empty space will be filled instantly with creative and innovative thoughts and ideas.

4) Leadership: Invest at least 40% of the time managing yourself (your conduct, work ethic, character, motivation etc.), 30% of the time managing people above you (relative to authority), 15% of the time managing your peers, and the remainder (15%) working with your associates to practice the same.

The entire article can be accessed here

Jim Collins – Leadership Lessons

The author uses the analogy of rock climbing to share key leadership and life lessons. Briefly,

1) Climb to Fallure, not Failure: Failure and fallure are defined not by the outcomes,but rather, the mental processes behind it. In fallure, you are committed to tap your full mental and physical abilities, even if the odds of success are against you. In failure, those same odds and ambiguity causes us to mentally fail and quit (cut our losses). In rock climbing parlance, fallure is falling and failure is letting go. Put it another way, fallure is about finding and reaching your true limits, which in some instances can trump odds and bring you success.

2) Separate Probability from Consequence: Does this mean we should always shoot for fallure and not failure? The short answer is NO. The author suggests weighing the cost of fallure against the probability of success.

1) If you don’t stretch, you don’t know where the edge is
2) Separate probability from consequence
3) Climb in the future, today

In other words, don’t make decisions, purely based on odds of success, but also include the consequences of failure. If you cannot afford the consequences of fallure, then it is better to cut your losses and live to fight another day. The wisdom lies in knowing, which option to choose :)

3) Climb in the future, today: The author highlights the use of a powerful psychological mind trick employed by successful and visionary entrepreneurs. That trick is to imagine and believe that the future has already happened and act accordingly. This cool technique enables us to unshackle ourselves from today’s limitations and expand our creative abilities.

The entire article can be accessed here

Paul Laudicina – Beating The Global Odds

In the book, the author argues that in today’s complex,confusing and constantly changing world, individuals and organizations of all kinds are faced with too much information and not enough understanding of it resulting in paralysis by analysis or on the flip side, frenetic and unfocused activity, devoid of clarity or purpose.

In the midst of these changing realties, characterized by hyperconnectivity, digitization and every growing complexity, consumers and companies alike that cling to outmoded concepts of products and services are continually left flat-footed.

On a macroscale, the decoupling of wealth creation from value creation has led to increasingly divided, alienated and atomized societies lacking a shared sense of purpose. The resulting provincial thinking has impeded diversity of ideas and inclusion of people, stifling innovation and value creation, which in turn drives wealth creation for businesses, societies and individuals.

To overcome these obstacles and beat the global odds, the author suggests a few fascinating approaches including

1) Values based leadership – We need to move from a world and a system in which people do good by doing well – that is, benefit others and the planet only as a byproduct of focusing on personal profit – to a system in which one does well by doing good – when providing true leadership and service is the central priority and financial returns and personal enrichment are merely their corollaries.

2) Keep it simple – Excessive abundance of choices and options in every aspect of life causes anxiety, stress and diminishes our sense of well-being. Instead, focus on simplicity – in products, lifestyles and in operations. The key is to not avoid modernity, but to identify and eliminate unnecessary complexity.

“We need to move from a world and a system in which people do good by doing well – that is, benefit others and the planet only as a byproduct of focusing on personal profit – to a system in which one does well by doing good – when providing true leadership and service is the central priority and financial returns and personal enrichment are merely their corollaries.”

3) Repair social fabric – Personal bonds of trust between employee/employer, consumer/manufacturer, borrower/lender are broken and need to be reforged as they are the glue to good business. To rebuild this sense of community and common purpose within a for-profit company, people need to spend time together.

4) Don’t wait for the next big thing – Though conventional wisdom suggests to start with market research, companies need to avoid being reactive and get on with innovating – seizing smaller opportunities instead of waiting for the next big boom.

5) Open the aperture – Expose yourself to different interests and points of view. Become an information omnivore,and ideally a discerning omnivore.

6) Turn pixels into clearer picture – Engage in scenario planning. It will not only expand an individual and an organization’s field of vision but also helps them powerfully imagine the future.

This book is a fascinating read with exciting new ideas and highly recommended. You can get more information about the book and/or the author here.