In Search of Excellence

Peters and Waterman identify the eight virtues of excellent corporations:

1. A bias for action, active decision making - 'getting on with it'.
2. Close to the customer - learning from the people served by the business.
3. Autonomy and entrepreneurship - fostering innovation and nurturing 'champions'.
4. Productivity through people - treating rank and file employees as a source of quality.
5. Hands-on, value-driven - management philosophy that guides everyday practice - management showing its commitment.
6. Stick to the knitting - stay with the business that you know.
7. Simple form, lean staff - some of the best companies have minimal HQ staff.
8. Simultaneous loose-tight properties - autonomy in shop-floor activities plus centralised values.

Many of these are now considered conventional wisdom. IBM, the company I work for, demonstrated its understanding of the eighth principle when it renewed its values through an online jam session several years back. It recognized that it was impossible to manage an organization of 400,000 employees through command and control. It was more effective to appeal to the deep seated values its employees actually believed in. At the end of the exercise, the new set of values were not really new, but were more like an updated version of the original set of values, but it was clear they were the shared values of IBMers.

On 16 June, IBM will celebrate its centennial and I have no doubt its ability to demonstrate simultaneous loose-tight properties through management by values was critical in its ability to last for a century.

Sacred Path of the Warrior

Chogyam Trungpa is the teacher of Pema Chodron. It was Pema’s work Places That Scare You that opened my eyes to the beauty of Buddhism. It was pure delight going back to the source and reading about his vision of enlightenment. I can clearly remember riding a bus from Bacolod to Sipalay while reading The Shambhalla Warrior and I must have smiled the smile of an enlightened soul reading about wisdom, courage, and compassion while the bus was winding its way around roads hugging steep cliffs, the sun’s rays shining on me, and a magnificent view of the sea serving as a backdrop.

Chogyam teaches us to be genuine every moment. Being genuine means seeing ourselves as we are, and seeing our world as it is, and having the courage to live every moment unencumbered by ego. It means having compassion for others and for the self in recognition of the suffering we all bear as human beings. Life is full of suffering because of our failure to see and accept the world as it is, a world that is impermanent and full of pain, but also a world full of beauty and wonder if we only learn to keep the mind still.

Mindfulness is the key to becoming a Shambhalla warrior. To live mindfully is to be self aware and to have respect for other beings. It is difficult to live mindfully if one has to think about so many problems at work and at home, but it is precisely through watching our thoughts and focusing on our breath during meditation that we learn to stay still and stop resisting the reality of life. It is not by running away from the stressful, and hectic life in the 21s century that one becomes enlightened. It is precisely by living in the middle of all of this chaos and finding inner peace that one becomes a warrior.

Science of Self Realization

The cover alone would have been enough to repel me had I seen this book back in college. It depicts Krishna with glowing blue skin and with a black background as if floating in space.

This book, one of many written by Swami Prabhupada, founder of the Hare Krishna movement made especially famous by the Beatles, explains through a collection of lectures, essays, and interviews some of the key tenets of the movement, and of Hinduism in general.

I find some sections simplistic, and circular in reasoning. Swami Prabhupada sometimes sounds like a Christian fundamentalist when he insists that the Vedas, the Hindu scriptures, contains the incontrovertible truth. This should not really be surprising since all religious writers claim to know the revealed truth, except that he also labels his work as scientific.

Evidently, I am not about to chant Hare Krishna, but the key messages of Swami Prabhupada do resonate with me. Chanting is really another way of meditating and clearing the mind. Going back to Krishna, the supreme personality of the godhead, is a reminder of the interconnectedness of everyone, and everything. There is nothing permanent in this world for we live in a world of illusion, of maya, and we can only be truly happy once we are back with Krishna.

Freakonomics

I find economics fascinating: I am actually reading a textbook on International Economics right now despite having a full time job as a senior manager and being a dad to two kids. But as a political science major and history buff, I often favored historical explanations over rational choice models. Explanations that assume utility maximization by rational actors are just too abstract to account for complex events in any satisfying way.

Levitt and Dubner’s work, however, demonstrates how powerful economic analysis can be when the right questions are asked and when applied against the right set of data. Conventional explanations about crime reduction in the US or misplaced notions about the impact of excessive parenting on education all fall apart when confronted by rigorous data analysis. Catching cheating in school testing and in sumo tournaments just by looking at the data is, too me, really an ingenious piece of analytics.

Thick anthropological description, contingent historical explanations, and psychological analyses all have their place in completing the story of an event, but Freakonomics just showed how economic analysis can be a compelling tool for understanding not just market forces, but the rest of society as well.

Warren Buffet Way

Warren Buffett is the third richest man on earth, estimated to be worth $50B as of 2011, and he made his billions solely through investing. Robert Hagstrom, in the bestseller Warren Buffet Way, explains Buffett's approach called value investing. Buffett does not look at daily or weekly trends, but instead measures the value of a business and buys stock - pieces of a business - when they trade significantly lower than they're actual value.

Before I read this book, I read all of Buffett's letters to the stockholders of Berkeshire Hathaway and my investment decisions have since been influenced by Buffett's methods. I have not yet earned billions, although I really hope I can buy a few great businesses and sit on my ass (search Mungerisms), but I have earned significant returns - 80% in two years - simply by following his advice. Since I was not yet an expert investor, and I did not have the time to study businesses with the diligence required, I simply bought a set amount of shares of a mutual fund every month, and watched my assets grow as the stock market recovered from the 2008 Great Recession.

It was not all smooth sailing as I did not enter the market exactly at the bottom - and Buffett counsels it is foolhardy to try and time the market. I actually lost 25% of my money at one point before riding the rally several months later. Now, I am trying to apply some of what I learned from Buffett and pick my own stocks.

My investing journey has just begun, but I have earned enough money and confidence to go for returns greater than the market. I hope the Warren Buffet Way allows me to sit on my ass soon.

Tipping Point

When the tipping point is reached, rapid changes spread like a virus. It is, according to Malcom Gladwell, "the moment of critical mass, the threshold, the boiling point." One of the key points he makes is a restatement of the Pareto principle - the Law of the Few. Influencing a few key people - the connectors, the mavens, and the salesmen - is critical to inducing a widespread change in behavior.

This is an important point I must remember as my scope at work expands. If I am to scale my influence, I should find the connectors, mavens, and the salesmen in the team. Managers are natural hubs, but they are not always the most effective in spreading influence. It is often better to find influential employees for they are extremely credible to the rest of the team if one is able to gain their buy in. Conversely, they are also dangerous to overall team climate if one loses their trust. A recent experience with multiple attrition underscores the disproportionate influence of certain individuals.

There is only so many hours in the week and there will never be enough to speak to every employee one by one. The most effective leaders understand the principles of the tipping point and take advantage of them to effect viral change.

Lessons from the Top

Here are the key lessons from this book of CEO profiles by Neff and Citrin:

1. Live with Integrity and Lead by Example
2. Develop a winning strategy or "big idea"
3. Build a Great Management Team
4. Inspire Employees to Achieve Greatness
5. Create a flexible, responsive organization
6. Tie It All Together with Reinforcing Management and Compensation Systems

You can't go wrong with the principles above, but the bias is for leadership and organization climate concepts. I am realizing now that there is a need to have a strong foundation in finance, and, probably later on in my career, in sales and marketing.

Below are the key traits of successful CEOs.

- Passion
- Intelligence and Clarity of Thinking
- Great Communication Skills
- High Energy Level
- Egos in Check
- Inner Peace
- Capitalizing on Formative Early Life Experience
- Strong Family Lives
- Positive Attitude
- Focus on "Doing the Right Things Right"

I think I need to work on sustaining my energy level, and gaining inner peace. My recent mentoring session with my second line manager has given me insight on better time management - he's even more obsessive-compulsive with his time. Deepening my spiritual knowledge and practicing my meditation religiously will be key to truly having inner peace.