Compensation Management Quotes

If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don't have to manage them.

Effective board governance hinges on designing management compensation structures that align with long-term goals.

Managers receiving hundreds of thousands a year—and setting their compensation for themselves—are not being paid wages, they are appropriating surplus value in the guise of wages.

I am encouraged as I look at some of those who have listened to their "different drum": Einstein was hopeless at school math and commented wryly on his inadequacy in human relations. Winston Churchill was an abysmal failure in his early school years. Byron, that revolutionary student, had to compensate for a club foot; Demosthenes for a stutter; and Homer was blind. Socrates couldn't manage his wife, and infuriated his countrymen. And what about Jesus, if we need an ultimate example of failure with one's peers? Or an ultimate example of love?

When management is the only path to higher compensation, the quality of management suffers, and the lives of the people who work for these reluctant managers become miserable.

It's better to anger a bit and compensate with destroying something than evolving hate.

I believe that, the prevailing system of management is, at its core, dedicated to mediocrity. It forces people to work harder and harder to compensate for failing to tap the spirit and collective intelligence that characterizes working together at their best. Deming saw this clearly,

You don’t want to be in a situation where you can’t justify your compensation.

I wondered if this was how mortal teachers felt after a full day of classes. If so, I didn’t see how they managed. I hoped they were richly compensated with gold, diamonds, and rare spices.

It was late evening when the final horn blew and the cohorts tromped back to camp. I was hungry and exhausted. I wondered if this was how mortal teachers felt after a full day of classes. If so, I didn't see how they managed. I hoped they were richly compensated with gold, diamond and rare spices.

No amount of organization and time management will compensate for a lack of Christian character, not when it comes to this great calling of glory through good—bringing glory to God by doing good to others.

Anything that you want to do, I’ll leave in your hands. For the things out of your grasp, I’ll make up for it. That’s how I want to live together with you. Instead of trying to handle things on our own, if we help each other out, compensate for one another, we’ll be able to manage anything that comes our way. Side by side, as husband and wife.

the increase in very high incomes and very high salaries primarily reflects the advent of “supermanagers,” that is, top executives of large firms who have managed to obtain extremely high, historically unprecedented compensation packages for their labor.

thought then that decent, intelligent, and experienced managers would automatically make rational business decisions. But I learned over time that isn’t so. Instead, rationality frequently wilts when the institutional imperative comes into play. For example: (1) As if governed by Newton’s First Law of Motion, an institution will resist any change in its current direction; (2) Just as work expands to fill available time, corporate projects or acquisitions will materialize to soak up available funds; (3) Any business craving of the leader, however foolish, will be quickly supported by detailed rate-of-return and strategic studies prepared by his troops; and (4) The behavior of peer companies, whether they are expanding, acquiring, setting executive compensation or whatever, will be mindlessly imitated.

The fee asset managers charge is for the value they provide. If a farmer grows a fruiting tree, you pay him more for the tree than you would pay him for just a seedling. Why? Because of the effort, energy and skill the farmer put into growing that tree plus the added value of the income (fruit) that tree provides are a testament to the farmers value add and he deserves to be compensated for that value add. It’s the same kind of thing with the 2 & 20 you pay the portfolio manager.

Bad temper and anger management can be significant problems for Aquarians, especially the individuals who have to face a lot of pressure and stress. These individuals hate being emotionally vulnerable, so if something really grinds their nuts, they can lash out severely. This outburst may compensate for and include a lot of pent-up emotions.

One of the ways in which cooperatives rectify the injustices of capitalism is by instituting a relatively equal compensation-scheme for their members. While in the U.S. the average ratio of CEO compensation in the Fortune 500 companies to the ordinary worker’s has recently been reported as 344:1,49 in co-ops the pay-differential between management and the average worker rarely exceeds 4:1. In collectives, everyone is usually paid the same amount. For example, a British study from the 1980s reports that all of the dozens of small co-ops it researched had lower pay-differentials than conventional businesses, and most had little or no differential at all.50 At Arizmendi Bakery everyone currently receives about 20 dollars an hour plus a percentage of the year’s profits. The worker-owners of Mondragon Bookstore and Coffeehouse in Canada earn the same rate of pay. At Equal Exchange, a relatively large co-op, there is a 4:1 pay ratio.

In the cultures of some companies, management depends heavily on the innate goodness and professionalism of its employees to constantly compensate for systemic deficiencies, chronic understaffing, and substandard subcontractors.

RED HEAD Tight, inhibited, results-oriented, anxious, aggressive, over-compensating, desperate. BLUE HEAD Loose, expressive, in the moment, calm, clear, accurate, on task. It’s what tennis coach Nick Bollettieri calls the ‘centipede effect’. If a centipede had to think about moving all its legs in the right order, it would freeze, the task too complex and daunting. The same is true of humans. Red is what Suvorov called ‘the Dark’. It is that fixated negative content loop of self-judgement, rigidity, aggression, shut down and panic. Blue is what he called ‘the Light’ – a deep calmness in which you are on task, in the zone, on your game, in control and in flow. It applies to the military; it applies to sport; it applies to business. In the heat of battle, the difference between the inhibitions of the Red and the freedom of Blue is the manner in which we control our attention. It works like this: where we direct our mind is where our thoughts will take us; our thoughts create an emotion; the emotion defines our behaviour; our behaviour defines our performance. So, simply, if we can control our attention, and therefore our thoughts, we can manage our emotions and enhance our performance.

I did not pay much attention, and since it seemed to prolong itself I began to meditate upon the writer’s life. It is full of tribulation. First he must endure poverty and the world’s indifference; then, having achieved a measure of success, he must submit with a good grace to its hazards. He depends upon a fickle public. He is at the mercy of journalists who want to interview him and photographers who want to take his picture, of editors who harry him for copy and tax gatherers who harry him for income tax, of persons of quality who ask him to lunch and secretaries of institutes who ask him to lecture, of women who want to marry him and women who want to divorce him, of youths who want his autograph, actors who want parts and strangers who want a loan, of gushing ladies who want advice on their matrimonial affairs and earnest young men who want advice on their compositions, of agents, publishers, managers, bores, admirers, critics, and his own conscience. But he has one compensation. Whenever he has anything on his mind, whether it be a harassing reflection, grief at the death of a friend, unrequited love, wounded pride, anger at the treachery of someone to whom he has shown kindness, in short any emotion or any perplexing thought, he has only to put it down in black and white, using it as the theme of a story or the decoration of an essay, to forget all about it. He is the only free man.

When you have a business and people in a business that are feeling fulfilled because they're adding value to other peoples lives and they're making money because of that- you've got a win win win win win win situation - everybody's winning. Customers and clients are winning because their lives are improving with the services or products that the business provides them. Business managers owners and employees are winning because they're receiving compensation and a sense of fulfillment for the value they add. And because these two groups of people are winning, society as a whole is winning.

We find that firms with award-winning CEOs subsequently underperform, in terms both of stock and of operating performance. At the same time, CEO compensation increases, CEOs spend more time on activities outside the company such as writing books and sitting on outside boards, and they are more likely to engage in earnings management.

Evolutionarily, the function of attachment has been to protect the organism from danger. The attachment figure, an older, kinder, stronger, wiser other (Bowlby, 1982), functions as a safe base (Ainsworth et al., 1978), and is a presence that obviates fear and engenders a feeling of safety for the younger organism. The greater the feeling of safety, the wider the range of exploration and the more exuberant the exploratory drive (i.e., the higher the threshold before novelty turns into anxiety and fear). Thus, the fundamental tenet of attachment theory: security of attachment leads to an expanded range of exploration. Whereas fear constricts, safety expands the range of exploration. In the absence of dyadically constructed safety, the child has to contend with fear-potentiating aloneness. The child will devote energy to conservative, safety enhancing measures, that is, defense mechanisms, to compensate for what's missing. The focus on maintaining safety and managing fear drains energy from learning and exploration, stunts growth, and distorts personality development.

But as much as Greyson's overly warm body had to be worked around and compensated for in summer, at that moment she was eternally and ridiculously grateful for it. She almost thought she heard her own skin sizzle when it came into contact with his: some of the cramping in her muscles relaxed. Only to tense up again when she saw, through her half-closed eyes, Greyson's second gaurd and Malleus's brother, Maleficarum, advancing on her with a hypodermic needle. Something clear squirted ominously from it's sharp silver tip. "Oh, no," she managed, "You are not giving me a shot." "'Sonly under the skin, m'lady. You'll barely even feel it, honest." Maleficarum's features did no do "innocent" well: he looked like a serial killer trying to hide a severed head behind his back.

Recent research, based on matching declared income on tax returns with corporate compensation records, allows me to state that the vast majority (60 to 70 percent, depending on what definitions one chooses) of the top 0.1 percent of the income hierarchy in 2000–2010 consists of top managers. By comparison, athletes, actors, and artists of all kinds make up less than 5 percent of this group.

What I listen for is someone who really wanted something that could be obtained only through taking the risk, whether that risk was big or small. It's not even important that she managed the risk skillfully; it's only important that she knew it was there, respected it, but took it anyway. Most people wander through life, carelessly taking whatever risk crosses their path without compensation, but never consciously accepting extra risk to pick up the money and other good things lying all around them. Other people reflexively avoid every risk or grab every loose dollar without caution. I don't mean to belittle these strategies; I'm sure they make sense to the people who pursue them. I just don't understand them myself. I do know that none of these people will be successful traders.

Those involved in mental as opposed to physical effort or who carry the responsibilities of management are presumed to require a higher payment for their submission to the purposes of organization than those who render only physical or manual service, however adept or talented that may be. This is because there is profound difference in the nature and extent of the submission that is made. The person on the shop floor or its equivalent gives more or less diligent and deft physical effort for a specified number of hours a day. Beyond that nothing in principle--not thought, certainly not conformity of speech or behavior--is expected. Of the high corporate executive a more complete submission to the purposes of the organization is usually required. He (or she) must speak and also think well of the aims of the enterprise; he may never in public and not wisely in private raise doubt as to the depth and sincerity of his own commitment. Many factors determine his large, often very large, compensation, including the need to pay for the years of preparation, for the considerable intelligence that is requires, for the responsibility that is carried, and for the alleged risks of high position. As a practical matter, his rate of pay is also influenced by the significant and highly convenient role the executive plays in establishing it; much that accrues to the senior corporate executive is in response to his own inspired generosity. But there is also payment for the comprehensive submission of his individual personality to that of the corporation. It is no slight thing to give up one's self and self-expression to the collective personality of one's employer.

Some equestrians were involved in the potentially lucrative business of provincial taxation, thanks to another law of Gaius Gracchus. For it was he who first arranged that tax collecting in the new province of Asia should, like many other state responsibilities, be contracted out to private companies, often owned by equestrians. These contractors were known as publicani – ‘public service providers’ or ‘publicans’, as tax collectors are called in old translations of the New Testament, confusingly to modern readers. The system was simple, demanded little manpower on the part of the Roman state and provided a model for the tax arrangements in other provinces over the following decades (and was common in other early tax raising regimes). Periodic auctions of specific taxation rights in individual provinces took place at Rome. The company that bid the highest then collected the taxes, and anything it managed to rake in beyond the bid was its profit. To put it another way, the more the publicani could screw out of the provincials, the bigger their own take – and they were not liable to prosecution under Gaius’ compensation law. Romans had always made money out of their conquests and their empire, but increasingly there were explicitly, and even organised, commercial interests at stake.

God calls you to productivity, but he calls you to the right kind of productivity. He calls you to be productive for his sake, not your own. While this book will emphasize tools and systems and other important elements of productivity, nothing is more important than your own holiness and your own godliness. No amount of organization and time management will compensate for a lack of Christian character, not when it comes to this great calling of glory through good—bringing glory to God by doing good to others.

The damage caused by overconfident CEOs is compounded when the business press anoints them as celebrities; the evidence indicates that prestigious press awards to the CEO are costly to stockholders. The authors write, “We find that firms with award-winning CEOs subsequently underperform, in terms both of stock and of operating performance. At the same time, CEO compensation increases, CEOs spend more time on activities outside the company such as writing books and sitting on outside boards, and they are more likely to engage in earnings management.

I had tracked down a little cafe in the next village, with a television set that was going to show the World Cup Final on the Saturday. I arrived there mid-morning when it was still deserted, had a couple of beers, ordered a sensational conejo au Franco, and then sat, drinking coffee, and watching the room fill up. With Germans. I was expecting plenty of locals and a sprinkling of tourists, even in an obscure little outpost like this, but not half the population of Dortmund. In fact, I came to the slow realisation as they poured in and sat around me . . . that I was the only Englishman there. They were very friendly, but there were many of them, and all my exits were cut off. What strategy could I employ? It was too late to pretend that I was German. I’d greeted the early arrivals with ‘Guten Tag! Ich liebe Deutschland’, but within a few seconds found myself conversing in English, in which they were all fluent. Perhaps, I hoped, they would think that I was an English-speaker but not actually English. A Rhodesian, possibly, or a Canadian, there just out of curiosity, to try to pick up the rules of this so-called ‘Beautiful Game’. But I knew that I lacked the self-control to fake an attitude of benevolent detachment while watching what was arguably the most important event since the Crucifixion, so I plumped for the role of the ultra-sporting, frightfully decent Upper-Class Twit, and consequently found myself shouting ‘Oh, well played, Germany!’ when Helmut Haller opened the scoring in the twelfth minute, and managing to restrain myself, when Geoff Hurst equalised, to ‘Good show! Bit lucky though!’ My fixed grin and easy manner did not betray the writhing contortions of my hands and legs beneath the table, however, and when Martin Peters put us ahead twelve minutes from the end, I clapped a little too violently; I tried to compensate with ‘Come on Germany! Give us a game!’ but that seemed to strike the wrong note. The most testing moment, though, came in the last minute of normal time when Uwe Seeler fouled Jackie Charlton, and the pig-dog dolt of a Swiss referee, finally revealing his Nazi credentials, had the gall to penalise England, and then ignored Schnellinger’s blatant handball, allowing a Prussian swine named Weber to draw the game. I sat there applauding warmly, as a horde of fat, arrogant, sausage-eating Krauts capered around me, spilling beer and celebrating their racial superiority.

I began to meditate upon the writer’s life. It is full of tribulation. First he must endure poverty and the world’s indifference; then, having achieved a measure of success, he must submit with a good grace to its hazards. He depends upon a fickle public. He is at the mercy of journalists who want to interview him and photographers who want to take his picture, of editors who harry him for copy and tax gatherers who harry him for income tax, of persons of quality who ask him to lunch and secretaries of institutes who ask him to lecture, of women who want to marry him and women who want to divorce him, of youths who want his autograph, actors who want parts and strangers who want a loan, of gushing ladies who want advice on their matrimonial affairs and earnest young men who want advice on their compositions, of agents, publishers, managers, bores, admirers, critics, and his own conscience. But he has one compensation. Whenever he has anything on his mind, whether it be a harassing reflection, grief at the death of a friend, unrequited love, wounded pride, anger at the treachery of someone to whom he has shown kindness, in short any emotion or any perplexing thought, he has only to put it down in black and white, using it as the theme of a story or the decoration of an essay, to forget all about it. He is the only free man.

In fact, the average programming manager would prefer that a project be estimated at twelve months and take twelve than that the same project be estimated at six months and take nine. This is an area where some psychological study could be rewarding, but there are indications from other situations that it is not the mean length of estimated time that annoys people but, rather, the standard deviation in the actual time taken. Thus, most people would prefer to wait a fixed ten minutes for the bus each morning than to wait one minute on four days and twenty-six minutes once a week-. Even though the average wait is six minutes in the second case, the derangement caused by one long and unexpected delay more than compensates for this disadvantage. If

Okay,” Max said. “Now I’m terrified that I, um, said it too late?” His uncertainty turned his words into a question. “Am I too late?” he asked again, as if he actually thought . . . As much as Gina enjoyed watching him squirm, she forced her lungs and vocal cords to start working again. “Are you . . .” She had to clear her throat, but then it really didn’t matter what she said, because the tears in her eyes surely told him everything he wanted to hear. She saw his relief, and yes, he was still scared, she saw that, too, but mixed in with that was hope. And something that looked a heck of a lot like happiness. Happiness—in Max’s eyes. “Are you really asking me for a second chance?” she managed to get it all out in a breathless exhale. He kissed her then, as if he couldn’t bear to stand so close and not kiss her. “Please,” he breathed, as he kissed her again, as he licked his way into her mouth and . . . God . . . She could’ve stood there, kissing Max forever, but the man on the megaphone just shouldn’t shut up. Besides, she wanted to be sure that this was about more than just sex. “Do you want me in your life?” Gina asked him. “I mean, need is nice, but . . .” It implied a certain lack of free will. Want on the other hand . . . “Want,” he said. “Yes. I want you. Very much. In my life. Gina, I was lost without you.” He caught himself. “More lost, or . . .” He shook his head. “Fuck it, I’m a mess, but if for some reason you still love me anyway . . . If you really meant what you said, about . . .” There it was gain, in his eyes. Hope. “Loving me anyway . . .” “I don’t love you anyway,” she told him, her heart in her throat. “I love you because.” She touched his face, his smoothly shaven cheeks. “Although now that you mention it, you are something of a mess, and I’m probably entitled to . . . compensation in certain areas. I mean, in any relationship, you need to negotiate a certain amount of compromise, right?” He actually thought she was serious. “Well, yeah.” “So if, say, I were to point out how incredibly hot you’d look wearing that thong—” Max laughed his relief. “Shit, I thought you were serious.” “Shit,” Gina teased. “I am.” He cupped her face between both of his hands, and the heat in his eyes made her knees weak. “I’ll wear one if you wear one . . .

I've found that, in most cases, managers greatly underestimate the impact that a comment or quick gesture of approval has on employees. They'll spend weeks trying to tweak an annual bonus program or some other compensation system, believing that their employees are coin-operated, but they'll neglect to stop someone during a meeting and say, “Hey, that's a fantastic example of hunger. We should all try to be more like that.” I'm not saying that compensation doesn't matter. But if we want to create a culture of humility, hunger, and smarts, the best way to do it is to constantly be catching people exhibiting those virtues and publicly holding them up as examples. No balloons, pastries, or plastic tchotchkes are necessary, just genuine, in-the-moment appreciation.

A good list of questions to ask your advisor will include the following: Where will my money be held? Right answer: Somewhere else! Are you a broker? Right answer: No! Are you a dually registered advisor? Right answer: No! Do you or any affiliate have proprietary investments of any kind? Right answer: No! How are you compensated? Right answer: Total disclosure in writing and never make commissions on any investment product. What are the credentials of you and/or your team? Right answer: If planning is involved, a CFP is ideal to have on the team. What is your planning and investment management approach? Right answer: The firm should follow a coherent philosophy rather than a bunch of different strategies (unprincipled) and should follow an approach that does not involve market timing or active trading.

REQUIREMENTS TO BE GREAT AT RUNNING HR What kind of person should you look for to comprehensively and continuously understand the quality of your management team? Here are some key requirements:   World-class process design skills Much like the head of quality assurance, the head of HR must be a masterful process designer. One key to accurately measuring critical management processes is excellent process design and control.   A true diplomat Nobody likes a tattletale and there is no way for an HR organization to be effective if the management team doesn’t implicitly trust it. Managers must believe that HR is there to help them improve rather than police them. Great HR leaders genuinely want to help the managers and couldn’t care less about getting credit for identifying problems. They will work directly with the managers to get quality up and only escalate to the CEO when necessary. If an HR leader hoards knowledge, makes power plays, or plays politics, he will be useless.   Industry knowledge Compensation, benefits, best recruiting practices, etc. are all fast-moving targets. The head of HR must be deeply networked in the industry and stay abreast of all the latest developments.   Intellectual heft to be the CEO’s trusted adviser None of the other skills matter if the CEO does not fully back the head of HR in holding the managers to a high quality standard. In order for this to happen, the CEO must trust the HR leader’s thinking and judgment.   Understanding things unspoken When management quality starts to break down in a company, nobody says anything about it, but super-perceptive people can tell that the company is slipping. You need one of those.

He brushed past us, and did not interrupt what he was saying to her, but gave us, out of the corner of his blue eye, a little sign, which began and ended, so to speak, inside his eyelids, and as it did not involve the least movement of his facial muscles, managed to pass quite unperceived by the lady; but, striving to compensate by the intensity of his feelings for the somewhat restricted field in which they had to find expression, he made that blue chink, which was set apart for us, sparkle with all the animation of cordiality, which went far beyond mere playfulness, and almost touched the border-line of roguery; he subtilised the refinements of good-fellowship into a wink of connivance, a hint, a hidden meaning, a secret understanding, all the mysteries of complicity in a plot, and finally exalted his assurances of friendship to the level of protestations of affection, even of a declaration of love, lighting up for us, and for us alone, with a secret and languid flame invisible by the great lady upon his other side, an enamoured pupil in a countenance of ice.

Every problem has a solution”. I have never come across a problem which couldn’t be solved. However, in order to solve a problem, we need two things – a. Define what the problem is? For example, “I am not happy with my job” is a generalized statement. Detect the root cause; is your reporting manager’s behavior is a problem? Is your inability to cope with the demands of your job a problem? Are the processes and the systems you need to follow to complete your job a problem? Is your compensation a problem? Are you not motivated enough to do your job? Is work-life balance a problem? Often, we combine multiple problems into one and then look for one solution to solve them all. It doesn’t work that way. b. Take ownership to find a solution to your problem and stay committed until you find a solution. There is a saying, “Problem is not a problem. It is our approach towards the problem that’s the primary cause of the problem”. And, most importantly, it is YOU who need to solve problems of your life...problems that are bothering you. So, take the ownership. If you are not able to define your problem in less than TEN words and if you don’t take the ownership of resolving it and you still cry about problems in your life...that process is called ranting, playing blame games, spreading negativity, etc.

Here are four more strategies to help you stack the deck in your favor when seeking a raise or a promotion: ✓ DO YOUR RESEARCH: Understand your market value and, more important, your value to the company. Be prepared to explain, candidly and concretely, what you feel you’re doing that you’re not being compensated for. Have confidence in your own worth. ✓ ASK TO BE PAID FOR THE JOB YOU’RE ACTUALLY DOING: If your responsibilities have increased but you haven’t been recognized since, say, you’ve taken over for the manager who left several months earlier, approach your new boss and say, “I’ve been effectively doing this person’s job since she departed and I’d like to formally assume her position.” Have a conversation. Express that you feel confident you can grow in this role and create value for the organization. ✓ PROVE YOUR WORTH: To earn an increase in salary, you need to be increasing your responsibilities and performing at a higher level than when you were hired. ✓ DON’T NEGOTIATE IF YOUR BOSS SAYS NO: Typically no means no when it comes to this type of discussion. If your boss says no, you have two choices: you either accept the rationale, think about it, and grow based on the feedback, or you leave. This is a good time to be reflective. Ask why you haven’t earned the increase. You may not walk away with a new title or more money, but hopefully you’ll learn something that will help you correct your course moving forward.

Where to stash your organizational risk? Lately, I’m increasingly hearing folks reference the idea of organizational debt. This is the organizational sibling of technical debt, and it represents things like biased interview processes and inequitable compensation mechanisms. These are systemic problems that are preventing your organization from reaching its potential. Like technical debt, these risks linger because they are never the most pressing problem. Until that one fateful moment when they are. Within organizational debt, there is a volatile subset most likely to come abruptly due, and I call that subset organizational risk. Some good examples might be a toxic team culture, a toilsome fire drill, or a struggling leader. These problems bubble up from your peers, skip-level one-on-ones,16 and organizational health surveys. If you care and are listening, these are hard to miss. But they are slow to fix. And, oh, do they accumulate! The larger and older your organization is, the more you’ll find perched on your capable shoulders. How you respond to this is, in my opinion, the core challenge of leading a large organization. How do you continue to remain emotionally engaged with the challenges faced by individuals you’re responsible to help, when their problem is low in your problems queue? In that moment, do you shrug off the responsibility, either by changing roles or picking powerlessness? Hide in indifference? Become so hard on yourself that you collapse inward? I’ve tried all of these! They weren’t very satisfying. What I’ve found most successful is to identify a few areas to improve, ensure you’re making progress on those, and give yourself permission to do the rest poorly. Work with your manager to write this up as an explicit plan and agree on what reasonable progress looks like. These issues are still stored with your other bags of risk and responsibility, but you’ve agreed on expectations. Now you have a set of organizational risks that you’re pretty confident will get fixed, and then you have all the others: known problems, likely to go sideways, that you don’t believe you’re able to address quickly. What do you do about those? I like to keep them close. Typically, my organizational philosophy is to stabilize team-by-team and organization-by-organization. Ensuring any given area is well on the path to health before moving my focus. I try not to push risks onto teams that are functioning well. You do need to delegate some risks, but generally I think it’s best to only delegate solvable risk. If something simply isn’t likely to go well, I think it’s best to hold the bag yourself. You may be the best suited to manage the risk, but you’re almost certainly the best positioned to take responsibility. As an organizational leader, you’ll always have a portfolio of risk, and you’ll always be doing very badly at some things that are important to you. That’s not only okay, it’s unavoidable.

Why do we despise, ostracize and punish the drug addict when as a social collective we share the same blindness and engage in the same rationalizations? To pose that question is to answer it. We despise, ostracize and punish the addict because we don’t wish to see how much we resemble him. In his dark mirror our own features are unmistakable. We shudder at the recognition. This mirror is not for us, we say to the addict. You are different, and you don’t belong with us. Like the hardcore addict’s pursuit of drugs, much of our economic and cultural life caters to people’s craving to escape mental and emotional distress. In an apt phrase, Lewis Lapham, long-time publisher of Harper’s Magazine, derides “consumer markets selling promises of instant relief from the pain of thought, loneliness, doubt, experience, envy, and old age.” According to a Statistics Canada study, 31 per cent of working adults aged nineteen to sixty-four consider themselves workaholics, who attach excessive importance to their work and are “overdedicated and perhaps overwhelmed by their jobs.” “They have trouble sleeping, are more likely to be stressed out and unhealthy, and feel they don’t spend enough time with their families,” reports the Globe and Mail. Work doesn’t necessarily give them greater satisfaction, suggested Vishwanath Baba, a professor of Human Resources and Management at McMaster University. “These people turn to work to occupy their time and energy” — as compensation for what is lacking in their lives, much as the drug addict employs substances. At the core of every addiction is an emptiness based in abject fear. The addict dreads and abhors the present moment; she bends feverishly only towards the next time, the moment when her brain, infused with her drug of choice, will briefly experience itself as liberated from the burden of the past and the fear of the future — the two elements that make the present intolerable. Many of us resemble the drug addict in our ineffectual efforts to fill in the spiritual black hole, the void at the centre, where we have lost touch with our souls, our spirit, with those sources of meaning and value that are not contingent or fleeting. Our consumerist, acquisition-, action- and image-mad culture only serves to deepen the hole, leaving us emptier than before. The constant, intrusive and meaningless mind-whirl that characterizes the way so many of us experience our silent moments is, itself, a form of addiction— and it serves the same purpose. “One of the main tasks of the mind is to fight or remove the emotional pain, which is one of the reasons for its incessant activity, but all it can ever achieve is to cover it up temporarily. In fact, the harder the mind struggles to get rid of the pain, the greater the pain.” So writes Eckhart Tolle. Even our 24/7 self-exposure to noise, emails, cell phones, TV, Internet chats, media outlets, music downloads, videogames and non-stop internal and external chatter cannot succeed in drowning out the fearful voices within.

One winter day in 1993, Bob, Giselle, and Dan proposed taking me out to dinner with the stated purpose of “giving Ray feedback about how he affects people and company morale.” They sent me a memo first, the gist of which was that my way of operating was having a negative effect on everyone in the company. Here’s how they put it: What does Ray do well? He is very bright and innovative. He understands markets and money management. He is intense and energetic. He has very high standards and passes these to others around him. He has good intentions about teamwork, building group ownership, providing flexible work conditions to employees, and compensating people well. What Ray doesn’t do as well: Ray sometimes says or does things to employees which makes them feel incompetent, unnecessary, humiliated, overwhelmed, belittled, oppressed, or otherwise bad. The odds of this happening rise when Ray is under stress. At these times, his words and actions toward others create animosity toward him and leave a lasting impression. The impact of this is that people are demotivated rather than motivated. This reduces productivity and the quality of the environment. The effect reaches far beyond the single employee. The smallness of the company and the openness of communication means that everyone is affected when one person is demotivated, treated badly, not given due respect. The future success of the company is highly dependent on Ray’s ability to manage people as well as money. If he doesn’t manage people well, growth will be stunted and we will all be affected.

5. Move toward resistance and pain A. Bill Bradley (b. 1943) fell in love with the sport of basketball somewhere around the age of ten. He had one advantage over his peers—he was tall for his age. But beyond that, he had no real natural gift for the game. He was slow and gawky, and could not jump very high. None of the aspects of the game came easily to him. He would have to compensate for all of his inadequacies through sheer practice. And so he proceeded to devise one of the most rigorous and efficient training routines in the history of sports. Managing to get his hands on the keys to the high school gym, he created for himself a schedule—three and a half hours of practice after school and on Sundays, eight hours every Saturday, and three hours a day during the summer. Over the years, he would keep rigidly to this schedule. In the gym, he would put ten-pound weights in his shoes to strengthen his legs and give him more spring to his jump. His greatest weaknesses, he decided, were his dribbling and his overall slowness. He would have to work on these and also transform himself into a superior passer to make up for his lack of speed. For this purpose, he devised various exercises. He wore eyeglass frames with pieces of cardboard taped to the bottom, so he could not see the basketball while he practiced dribbling. This would train him to always look around him rather than at the ball—a key skill in passing. He set up chairs on the court to act as opponents. He would dribble around them, back and forth, for hours, until he could glide past them, quickly changing direction. He spent hours at both of these exercises, well past any feelings of boredom or pain. Walking down the main street of his hometown in Missouri, he would keep his eyes focused straight ahead and try to notice the goods in the store windows, on either side, without turning his head. He worked on this endlessly, developing his peripheral vision so he could see more of the court. In his room at home, he practiced pivot moves and fakes well into the night—such skills that would also help him compensate for his lack of speed. Bradley put all of his creative energy into coming up with novel and effective ways of practicing. One time his family traveled to Europe via transatlantic ship. Finally, they thought, he would give his training regimen a break—there was really no place to practice on board. But below deck and running the length of the ship were two corridors, 900 feet long and quite narrow—just enough room for two passengers. This was the perfect location to practice dribbling at top speed while maintaining perfect ball control. To make it even harder, he decided to wear special eyeglasses that narrowed his vision. For hours every day he dribbled up one side and down the other, until the voyage was done. Working this way over the years, Bradley slowly transformed himself into one of the biggest stars in basketball—first as an All-American at Princeton University and then as a professional with the New York Knicks. Fans were in awe of his ability to make the most astounding passes, as if he had eyes on the back and sides of his head—not to mention his dribbling prowess, his incredible arsenal of fakes and pivots, and his complete gracefulness on the court. Little did they know that such apparent ease was the result of so many hours of intense practice over so many years.

History favors the bold. Compensation favors the meek. As a Fortune 500 company CEO, you’re better off taking the path often traveled and staying the course. Big companies may have more assets to innovate with, but they rarely take big risks or innovate at the cost of cannibalizing a current business. Neither would they chance alienating suppliers or investors. They play not to lose, and shareholders reward them for it—until those shareholders walk and buy Amazon stock. Most boards ask management: “How can we build the greatest advantage for the least amount of capital/investment?” Amazon reverses the question: “What can we do that gives us an advantage that’s hugely expensive, and that no one else can afford?” Why? Because Amazon has access to capital with lower return expectations than peers. Reducing shipping times from two days to one day? That will require billions. Amazon will have to build smart warehouses near cities, where real estate and labor are expensive. By any conventional measure, it would be a huge investment for a marginal return. But for Amazon, it’s all kinds of perfect. Why? Because Macy’s, Sears, and Walmart can’t afford to spend billions getting the delivery times of their relatively small online businesses down from two days to one. Consumers love it, and competitors stand flaccid on the sidelines. In 2015, Amazon spent $7 billion on shipping fees, a net shipping loss of $5 billion, and overall profits of $2.4 billion. Crazy, no? No. Amazon is going underwater with the world’s largest oxygen tank, forcing other retailers to follow it, match its prices, and deal with changed customer delivery expectations. The difference is other retailers have just the air in their lungs and are drowning. Amazon will surface and have the ocean of retail largely to itself.

Leo was at her side in an instant, crouching on the floor as he sorted through the hissing tangle of limbs and skirts. “Are you hurt? I feel certain there’s a woman in here somewhere. … Ah, there you are. Easy, now. Let me—” “Don’t touch me,” she snapped, batting at him with her fists. “I’m not touching you. That is, I’m only touching you with the—ow, damn it—with the intention of helping.” Her hat, a little scrap of wool felt with cheap corded trim, had fallen over her face. Leo managed to push it back to the top of her head, narrowly missing a sharp blow to his jaw. “Christ. Would you stop flailing for a moment?” Struggling to a sitting position, she glared at him. Leo crawled to retrieve the spectacles and returned to hand them to her. She snatched them from him without a word of thanks. She was a lean, anxious-looking woman. A young woman with narrowed eyes, from which bad temper flashed out. Her light brown hair was pulled back with a gallows-rope tightness that made Leo wince just to see it. One would have hoped for some compensating feature—a soft pair of lips, perhaps, or a pretty bosom. But no, there was only a stern mouth, a flat chest, and gaunt cheeks. If Leo were compelled to spend any time with her—which, thankfully, he wasn’t—he would have started by feeding her. “If you want to help,” she said coldly, hooking the spectacles around her ears, “retrieve that blasted ferret for me. Perhaps I’ve tired him enough that you may be able to run him to ground.” Still crouching on the floor, Leo glanced at the ferret, which had paused ten yards away and was watching them both with bright, beady eyes. “What is his name?” “Dodger.” Leo gave a low whistle and a few clicks of his tongue. “Come here, Dodger. You’ve caused enough trouble for the morning. Though I can’t fault your taste in … ladies’ garters? Is that what you’re holding?” The woman watched, stupefied, as the ferret’s long, slender body wriggled toward Leo. Chattering busily, Dodger crawled onto Leo’s thigh. “Good fellow,” Leo said, stroking the sleek fur. “How did you do that?” the woman asked in annoyance. “I have a way with animals. They tend to acknowledge me as one of their own.” Leo gently pried a frilly bit of lace and ribbon from the long front teeth. It was definitely a garter, deliciously feminine and impractical. He gave the woman a mocking smile as he handed it to her. “No doubt this is yours.

HR can and should serve as advisors to organizational leadership to develop strategic workforce plans that link to the organization’s strategic plan to ensure that the right people are on board so that the firm can meet its objectives and fulfill its mission. HR partners with line management to provide development opportunities to maximize the potential of each and every employee. HR advises management on total rewards programs (compensation and benefits) and rewards and recognition programs designed to minimize costly employee turnover and to maximize employee engagement and retention.

HR professionals often see their largest job challenges as sourcing talent, improving performance management, defining compensation, and providing training programs and other HR systems.

Business Owner Planning Business owners have additional and complex Retirement Planning needs. Counting only on the sale of your business requires tremendous luck and success. If business owners consider the business as simply one asset among many, then they should seriously consider additional assets such as: -Executive Bonus Arrangements -Nonqualified deferred compensation plans -Qualified retirement plans -General investment portfolio Motto for Business Owner Planning As I look back on thirteen years of entrepreneurship, I can see that the best and smartest thing to do is to have a plan with the end in mind and you in mind. The time still goes by and time is expensive. That sentence is really a whole book and you should or will understand sooner than later, hopefully. That would have looked like business succession planning. Proper business succession planning requires sound preparation in order to have a smooth and equitable transition. Financial, tax and legal planning are all necessary for a success.

The 8 Basic Headers Work Family & Kids Spouse Health & Fitness Home Money Recreation & Hobbies Prospects for the Future Work The Boss Time Management Compensation Level of interest Co-workers Chances of promotion My Job Description Subordinates Family Relationship with spouse Relationship with children Relationship with extended family Home, chores and responsibilities Recreation & hobbies Money, expenses and allowances Lifestyle and standard of living Future planes and arrangements Spouse Communication type and intensity Level of independence Sharing each other's passions Division of roles and responsibilities Our time together Our planes for our future Decision making Love & Passion Health & Fitness General health Level of fitness Healthy lifestyle Stress factors Self awareness Self improvement Level of expense on health & fitness Planning and preparing for the rest of my life Home Comfort Suitability for needs Location Community and municipal services Proximity and quality of support/activity centers (i.e. school. Medical aid etc) Rent/Mortgage Repair / renovation Emotional atmosphere Money Income from work Passive income Savings and pension funds Monthly expenses Special expenses Ability to take advantage of opportunities / fulfill dreams Financial security / resilience Financial IQ / Understanding / Independent decision making Social, Recreation & Hobbies Free time Friends and social activity Level & quality of social ties Level of spending on S, R&H Culture events (i.e. theater, fairs etc) Space & accessories required Development over time Number of interests Prospect for the future Type of occupation Ratio of work to free time Promotion & Business development (for entrepreneurs) Health & Fitness Relationships Family and Home Financial security Fulfillment of vision / dreams  Creating Lenses with Excel If you wish to use Excel radar diagrams to simulate lenses, follow these steps: Open a new Excel spreadsheet.

I see why they call you Lady Alys,” he said with a mocking humor. “Managing an estate, several businesses, and children as well. You are an extraordinary woman.” “Most women are extraordinary. It compensates for the fact that most men aren’t”.

Come back to bed,” she whispered. “I need you to warm me.” Cam stripped away his shirt, and laughed quietly as he felt her hands plucking at the buttons of his trousers. “What happened to my prudish gadji?” “I’m afraid”—she reached into his open falls and stroked his aroused flesh—“ that continued association with you has made me shameless.” “Good, I was hoping for that.” His lashes lowered, and his voice turned slightly breathless at her touch. “Amelia, if we have children … will you mind that they’re part Roma?” “Not if you don’t mind that they’re part Hathaway.” He made a sound of amusement and finished undressing. “And I thought life on the road would be a challenge. You know, it would terrify a lesser man, trying to manage your family.” “You’re right. I can’t imagine why you’re willing to take us on.” He gave her naked body a frankly lascivious glance as he joined her beneath the covers. “Believe me, the compensations are well worth it.” “What about your freedom?” Amelia asked, snuggling close as he lay beside her. “Are you sorry to have lost it?” “No, love.” Cam reached to turn down the lamp, enfolding them in velvet darkness. “I’ve finally found it. Right here, with you.

In many companies, managers’ pay is contingent upon the efficiency of their staff as measured by revenue per employee hour. Scheduling software helps them boost these numbers and their own compensation. Even when executives tell managers to loosen up, they often resist. It goes against everything they’ve been taught. What’s more, at Starbucks, if a manager exceeds his or her “labor budget,” a district manager is alerted, said one employee. And that could lead to a write-up. It’s usually easier just to change someone’s schedule, even if it means violating the corporate pledge to provide one week’s notice.

When evaluating a new client for degree of independence, I consider four factors: 1. Emotional issues: Does the person have good resources within himself or herself for coping independently with emotional issues that come up, or does he or she turn to parents not only for advice, but for cues as to how to react to the event in question? 2. Financial issues: Does the adult child earn an adequate living on his or her own, or does he or she rely heavily on parental input for things such as job contacts, supplemental funds, or housing? 3. Practical issues/interactive situations: Can the person manage day-to-day living, finances, nutrition, exercise, and housekeeping? 4. Career/Education issues: Does the person have a rewarding job or career that is commensurate with his or her abilities and offers the potential for further success? Is the person willing to learn new things to increase his or her productivity or compensation? These are the basic skills of living, many of which are addressed in the social ability questionnaire. Just as there are levels of social functioning, so too there are levels of independent functioning. All three of the following levels describe an adult with some degree of dependency problems. A healthy adult is someone who is independent financially, is able to manage practical and interactive issues, and who stays in touch with family but does not rely almost solely on family for emotional support. Level 1—Low Functioning Emotional issues: Lives at home with parent(s) or away from home in a fully structured or supervised environment. Financial issues: Contributes virtually nothing financially to the running of the household. Practical issues: Chooses clothes to wear that day, but does not manage own wardrobe (i.e., laundry, shopping, etc.). Relies on family members to buy food and prepare meals. Does few household chores, if any. May try a few tasks when asked, but seldom follows through until the job is finished. Career/education issues: Is not table to keep a job, and therefore does not earn an independent living. Extremely resistant to learning new skills or changing responsibilities. Level 2: Moderately functioning Emotional issues: Lives either at home or nearby and calls home every day. Relies on parents to discuss all details of daily life, from what happened at work or school that day to what to wear the next day. Will call home for advice rather than trying to figure something out for him- or herself. Financial issues: May rely on parents for supplemental income—parents may supply car, apartment, etc. May be employed by parents at an inflated salary for a job with very few responsibilities. May be irresponsible about paying bills. Practical issues: Is able to make daily decisions about clothing, but may rely on parents when shopping for clothing and other items. Neglects household responsibilities such as laundry, cleaning and meal planning. Career/education issues: Has a job, but is unable to cope with much on-the-job stress; job is therefore only minimally challenging, or a major source of anxiety—discussed in detail with Mom and Dad. Level 3: Functioning Emotional issues: Lives away from home. Calls home a few times a week, relies on family for emotional support and most socializing. Few friends. Practical issues: Handles all aspects of daily household management independently. Financial issues: Is financially independent, pays bills on time. Career/education issues: Has achieved some moderate success at work. Is willing to seek new information, even to take an occasional class to improve skills.

To fill this gap in the capital market, Davis and Rock set themselves up as a limited partnership, the same legal structure that had been used by a short-lived rival called Draper, Gaither & Anderson.[18] Rather than identifying startups and then seeking out corporate investors, they began by raising a fund that would render corporate investors unnecessary. As the two active, or “general,” partners, Davis and Rock each seeded the fund with $100,000 of their own capital. Then, ignoring the easy loans to be had from the fashionable SBIC structure, they raised just under $3.2 million from some thirty “limited” partners—rich individuals who served as passive investors.[19] The beauty of this size and structure was that the Davis & Rock partnership now had a war chest seven and a half times larger than an SBIC, and with it the ammunition to supply companies with enough capital to grow aggressively. At the same time, by keeping the number of passive investors under the legal threshold of one hundred, the partnership flew under the regulatory radar, avoiding the restrictions that ensnared the SBICs and Doriot’s ARD.[20] Sidestepping yet another weakness to be found in their competitors, Davis and Rock promised at the outset to liquidate their fund after seven years. The general partners had their own money in the fund, and thus a healthy incentive to invest with caution. At the same time, they could deploy the outside partners’ capital for a limited time only. Their caution would be balanced with deliberate aggression. Indeed, everything about the fund’s design was calculated to support an intelligent but forceful growth mentality. Unlike the SBICs, Davis & Rock raised money purely in the form of equity, not debt. The equity providers—that is, the outside limited partners—knew not to expect dividends, so Davis and Rock were free to invest in ambitious startups that used every dollar of capital to expand their business.[21] As general partners, Davis and Rock were personally incentivized to prioritize expansion: they took their compensation in the form of a 20 percent share of the fund’s capital appreciation. Meanwhile, Rock was at pains to extend this equity mentality to the employees of his portfolio companies. Having witnessed the effect of employee share ownership on the early culture of Fairchild, he believed in awarding managers, scientists, and salesmen with stock and stock options. In sum, everybody in the Davis & Rock orbit—the limited partners, the general partners, the entrepreneurs, their key employees—was compensated in the form of equity.

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But we will never allow Berkshire to become some monolith that is overrun with committees, budget presentations and multiple layers of management. Instead, we plan to operate as a collection of separately-managed medium-sized and large businesses, most of whose decision-making occurs at the operating level. Charlie and I will limit ourselves to allocating capital, controlling enterprise risk, choosing managers and setting their compensation.

The moment you feel the need to tightly manage someone, you’ve made a hiring mistake. The best people don’t need to be managed. Guided, taught, led—yes. But not tightly managed. We’ve all experienced or observed the following scenario. We have a wrong person on the bus and we know it. Yet we wait, we delay, we try alternatives, we give a third and fourth chance, we hope that the situation will improve, we invest time in trying to properly manage the person, we build little systems to compensate for his shortcomings, and so forth. But the situation doesn’t improve. When we go home, we find our energy diverted by thinking (or talking to our spouses) about that person. Worse, all the time and energy we spend on that one person siphons energy away from developing and working with all the right people. We continue to stumble along until the person leaves on his own (to our great sense of relief) or we finally act (also to our great sense of relief). Meanwhile, our best people wonder, “What took you so long?

Pro-risk, aggressive investors, for example, should be expected to make more than the index in good times and lose more in bad times. This is where beta comes in. By the word beta, theory means relative volatility, or the relative responsiveness of the portfolio return to the market return. A portfolio with a beta above 1 is expected to be more volatile than the reference market, and a beta below 1 means it’ll be less volatile. Multiply the market return by the beta and you’ll get the return that a given portfolio should be expected to achieve, omitting nonsystematic sources of risk. If the market is up 15 percent, a portfolio with a beta of 1.2 should return 18 percent (plus or minus alpha). Theory looks at this information and says the increased return is explained by the increase in beta, or systematic risk. It also says returns don’t increase to compensate for risk other than systematic risk. Why don’t they? According to theory, the risk that markets compensate for is the risk that is intrinsic and inescapable in investing: systematic or “non-diversifiable” risk. The rest of risk comes from decisions to hold individual stocks: non-systematic risk. Since that risk can be eliminated by diversifying, why should investors be compensated with additional return for bearing it? According to theory, then, the formula for explaining portfolio performance (y) is as follows: y = α + βx Here α is the symbol for alpha, β stands for beta, and x is the return of the market. The market-related return of the portfolio is equal to its beta times the market return, and alpha (skill-related return) is added to arrive at the total return (of course, theory says there’s no such thing as alpha). Although I dismiss the identity between risk and volatility, I insist on considering a portfolio’s return in the light of its overall riskiness, as discussed earlier. A manager who earned 18 percent with a risky portfolio isn’t necessarily superior to one who earned 15 percent with a lower-risk portfolio. Risk-adjusted return holds the key, even though—since risk other than volatility can’t be quantified—I feel it is best assessed judgmentally, not calculated scientifically.

A few weeks later, the United States Steel Corporation was formed. It was a testament to the power of Morgan, and the entirely unregulated securities market, that he could go from a handshake to a public company in less than eight weeks. As the syndicate manager, Morgan’s firm deposited $25 million to execute the mechanics of the transaction. Morgan’s role was to organize the consolidation, sell shares to the public, and serve on its board of directors. Morgan himself was not a major shareholder of any of the consolidations he sponsored or underwrote. His compensation generally came in the form of fees for arranging these massive transactions. U.S. Steel combined every major steel consolidation of the previous three years, along with Carnegie Steel, into a superconsolidation. On March 29, when the shares were brought to market, U.S. Steel became the first company to be valued at over $1 billion.

But the start-up was the land of mercenaries, young men whose spirits ran counter to traditional corporate culture but who were vastly capitalistic in their personal financial ambitions and their sacrifices. As risky as start-ups were, given that most failed, these employees had little notion or expectation of stability. In addition, start-ups often paid less than comparable corporate jobs but required more hours. To offset the low compensation and lack of job security, start-ups offered equity in the form of stock options. And if the stock options paid off, the newly rich early employee often became difficult to manage. The dynamics were more similar to joining a pirate ship than the Royal Navy.

We adjust, hide, and compensate in order to manage our differentness in relation to the spaces we

War taught me many things, among them that, like anyone, I could be a coward one minute and brave the next, depending entirely on circumstance. They say that war brings out the best and the worst in people, and I certainly saw both sides. When I think of the dozens of people who risked their lives for us, it almost helps compensate for all the sad and bitter memories of those who were so cruel. War also made me accept the inevitable and savor the important gains, like my two wonderful sons and the granddaughter I might so easily have never lived to see. Through the memories of those we’ve lost and our shared sense of unity and pride in what we’ve gained, I’ve somehow managed to keep hope alive, against what often seemed impossible odds.

After all, the Fed has driven down rates with the intention of encouraging investors to take on more risk. Yet those who embrace low yields, poor credits, thin liquidity and even currency mismatches today may discover, when market conditions deteriorate, that the modest yield pick-up proves poor compensation for future losses. Mr. Piketty can rest easy. In an age when risk-free assets yield little or nothing, the determination of the wealthy to earn somewhat more will, in due course, do more to restore equality than his proposed taxes. A free market solution to a political problem–who says capitalism is failing?

he was furious with Paulson for not having insisted on strict limits on compensation for the managements of banks that would take advantage of the program.

VC Fred Wilson estimates that a typical startup will turn over its management team three times between its inception and when it achieves significant scale. Wilson emphasizes that turning over a team is not the same as firing someone for poor performance. Still, it can be tough to create new roles for senior managers who can’t handle the evolving demands of their current positions, and terminating them can be demoralizing for colleagues who’ve worked with them since the beginning—especially if those individuals are torchbearers for the startup’s mission and values. Wilson notes that serial entrepreneurs, having seen these patterns before, are better equipped to manage executive churn. He also advises founders to be open with new hires, letting them know that “they may not make it to the finish line, but they will be handsomely compensated with equity.

Human lifetimes are time documented by time, employment is compensated by documented time for work; and the value of life is expensive. No one is wealthy enough to buy time for infinity...so why let them waste yours! #Studypeople who do not value the #expense of life & time...gain old, but common #wisdom. #Studypeople who value the expense of life & time...gain new but uncommon wisdom. Last year will never repeat in your #lifetime, neither will the New Year. Consider how you manage the #destiny #distraction of #timewasters... I reset my #NewYear clock with an alarm to signal the entry of expensive time wasters, so I can kindly show them back to the exit point. People who consciously care to connect their active purpose with others who value share them, are more likely to make most of time's expense, rather than waste time, as if forever could be spared.

As their personal connections to a geographical community shrink, so people look to work to compensate; volunteer schemes organised through the workplace and corporate social responsibility programmes become a substitute. Putnam quotes one commentator's conclusion: 'As more Americans spend more of their time "at work", work gradually becomes less of a one-dimensional activity and assumes more of the concerns and activities of both private (family) and public (social and political) life. It is the corporation which hands out advice on toddler pottytraining and childcare, offers parenthood classes and sets up a reading support programme in a local school - all of which exist in British corporations – rather than the social networks of family, friends and neighbours. This amounts to a form of corporate neopaternalism which binds the employee ever tighter into a suffocating embrace, underpinning the kind of invasive management techniques described in Chapter 4.

They all try damn hard to hide their disgust. Some manage better than others. As good as she is, though, like the rest of them, Constanza can’t stomach looking at my face, even in low light. I don’t mind the fact that the only reason my hookups remain with me for any length of time is for the extravagant trips and lavish gifts I shower them with. Unrivaled luxury—compensation for being subjected to having a beast at their side. It’s a fair compromise. Some chicks can tolerate it for longer. Most can’t.

There is a conundrum at the heart of the efficient-markets hypothesis, often called the Grossman-Stiglitz Paradox after a seminal 1980 paper written by hedge fund manager Sanford Grossman and the Nobel laureate economist Joseph Stiglitz.22 “On the Impossibility of Informationally Efficient Markets” was a frontal assault on Eugene Fama’s theory, pointing out that if market prices truly perfectly reflected all relevant information—such as corporate data, economic news, or industry trends—then no one would be incentivized to collect the information needed to trade. After all, doing so is a costly pursuit. But then markets would no longer be efficient. In other words, someone has to make markets efficient, and somehow they have to be compensated for the work involved. This paradox has hardly held back the growth of passive investing. Many investors gradually realized that whatever academic theory one subscribes to, the cold unforgiving fact is that over time most active managers underperform their benchmarks. Even if they do beat the market, a lot of the “alpha” they produce is then often gobbled up by their fees. With his usual wit, Bogle dubbed this the “Cost Matters Hypothesis.”23 However, the truth of the Grossman-Stiglitz Paradox does raise some pertinent questions around whether markets may become less efficient as more and more investing is done through index funds.

Ross’s “arbitrage pricing theory” and Rosenberg’s “bionic betas” posited that the returns of any financial security are the result of several systematic factors. Although seemingly stating the obvious, this was a seminal moment in the move toward a more vibrant understanding of markets. The eclectic Rosenberg was even put on the cover of Institutional Investor in May 1978, the bald, mustachioed man depicted as a giant meditating guru with flowers in his hair, worshipped by a gathering of besuited portfolio managers. The headline was “Who Is Barr Rosenberg? And What the Hell Is He Talking About?”8 What he was talking about was how academics were beginning to classify stocks according to not just their industry or their geography, but their financial characteristics. And some of these characteristics might actually prove to deliver better long-term returns than the broader stock market. In 1973, Sanjoy Basu, a finance professor at McMaster University in Ontario, published a paper that indicated that companies with low stock prices relative to their earnings did better than the efficient-markets hypothesis would suggest. Essentially, he showed that the value investing principles espoused by Benjamin Graham in the 1930s—which revolved around buying cheap, out-of-favor stocks trading below their intrinsic worth—was a durable investment factor. By systematically buying all cheap stocks, investors could in theory beat the broader market over time. Then Banz showed the same for small caps, another big moment in the evolution of factor investing. Follow-up studies on smaller stocks in Japan and the UK showed similar results, so in 1986 DFA launched dedicated small-cap funds for those two markets as well. In the early 1990s, finance professors Narasimhan Jegadeesh and Sheridan Titman published a paper indicating that simply surfing market momentum—in practice buying stocks that were already bouncing and selling those that were sliding—could also produce market-beating returns.9 The reasons for these apparent anomalies divide academics. Efficient-markets disciples stipulate that they are the compensation investors receive for taking extra risks. Value stocks, for example, are often found in beaten-up, unpopular, and shunned companies, such as boring industrial conglomerates in the middle of the dotcom bubble. While they can underperform for long stretches, eventually their underlying worth shines through and rewards investors who kept the faith. Small stocks do well largely because small companies are more likely to fail than bigger ones. Behavioral economists, on the other hand, argue that factors tend to be the product of our irrational human biases. For example, just like how we buy pricey lottery tickets for the infinitesimal chance of big wins, investors tend to overpay for fast-growing, glamorous stocks, and unfairly shun duller, steadier ones. Smaller stocks do well because we are illogically drawn to names we know well. The momentum factor, on the other hand, works because investors initially underreact to news but overreact in the long run, or often sell winners too quickly and hang on to bad bets for far longer than is advisable.

In my experience, the key to sound decision-making is not to resist having strong feelings about an issue. It’s human nature to have emotions. The question is: Do you get swallowed up by your emotions? Or do you have an emotional reaction, recognize it, and then manage to postpone your initial impulse long enough to make a considered choice? Responding takes discipline; reacting does not. The best time—indeed, often the only time—to build that discipline is before a moment of disruption strikes. I have found that what distinguishes strong leaders and good decision-makers isn’t that they have no emotional bias. It’s that they understand their emotional biases and compensate for them.

Many parents believe there is no reason for ADHD and they can control their child’s behavior by imposing rules and discipline to compensate for symptoms of ADHD and eventually outgrow the symptoms. Unfortunately, this is not true. The symptoms can be managed or controlled, but you can’t outgrow ADHD.

1 = Very important. Do this at once. 2 = Worth doing but takes more time. Start planning it. 3 = Yes and no. Depends on how it’s done. 4 = Not very important. May even be a waste of effort. 5 = No! Don’t do this. Fill in those numbers before you read further, and take your time. This is not a simple situation, and solving it is a complicated undertaking. Possible Actions to Take ____ Explain the changes again in a carefully written memo. ____ Figure out exactly how individuals’ behavior and attitudes will have to change to make teams work. ____ Analyze who stands to lose something under the new system. ____ Redo the compensation system to reward compliance with the changes. ____ “Sell” the problem that is the reason for the change. ____ Bring in a motivational speaker to give employees a powerful talk about teamwork. ____ Design temporary systems to contain the confusion during the cutover from the old way to the new. ____ Use the interim between the old system and the new to improve the way in which services are delivered by the unit—and, where appropriate, create new services. ____ Change the spatial arrangements so that the cubicles are separated only by glass or low partitions. ____ Put team members in contact with disgruntled clients, either by phone or in person. Let them see the problem firsthand. ____ Appoint a “change manager” to be responsible for seeing that the changes go smoothly. ____ Give everyone a badge with a new “teamwork” logo on it. ____ Break the change into smaller stages. Combine the firsts and seconds, then add the thirds later. Change the managers into coordinators last. ____ Talk to individuals. Ask what kinds of problems they have with “teaming.” ____ Change the spatial arrangements from individual cubicles to group spaces. ____ Pull the best people in the unit together as a model team to show everyone else how to do it. ____ Give everyone a training seminar on how to work as a team. ____ Reorganize the general manager’s staff as a team and reconceive the GM’s job as that of a coordinator. ____ Send team representatives to visit other organizations where service teams operate successfully. ____ Turn the whole thing over to the individual contributors as a group and ask them to come up with a plan to change over to teams. ____ Scrap the plan and find one that is less disruptive. If that one doesn’t work, try another. Even if it takes a dozen plans, don’t give up. ____ Tell them to stop dragging their feet or they’ll face disciplinary action. ____ Give bonuses to the first team to process 100 client calls in the new way. ____ Give everyone a copy of the new organization chart. ____ Start holding regular team meetings. ____ Change the annual individual targets to team targets, and adjust bonuses to reward team performance. ____ Talk about transition and what it does to people. Give coordinators a seminar on how to manage people in transition. There are no correct answers in this list, but over time I’ve

WHAT IS IT? The one-firm firm approach is not simply a loose term to describe a "culture." It refers to a set of concrete management practices consciously chosen to maximize the trust and loyalty that members of the firm feel both to the institution and to each other. In 1985, the elements of the one-firm firm approach were given as: •Highly selective recruitment •A "grow your own" people strategy as opposed to heavy use of laterals, growing only as fast as people could be devel-1 oped and assimilated •Intensive use of training as a socialization process •Rejection of a "star system" and related individualistic behavior •Avoidance of mergers, in order to sustain the collaborative culture A set of concrete management practices consciously chosen to maximize the trust and loyalty that members of the firm feel both to the institution and to each other. • Selective choice of services and markets, so as to win through significant investments in focused areas rather than many small initiatives •Active outplacement and alumni management, so that those who leave remain loyal to the firm •Compensation based mostly on group performance, not individual performance •High investments in research and development •Extensive intra-firm communication, with broad use of consensus-building approaches The one-firm firm approach is similar in many ways to the U. S. Marine Corps (in which Jack Walker served). Both are designed to achieve the highest levels of internal collaboration and encourage mutual commitment to pursuing ambitious goals.

Are we expanding our sales force appropriately to match needed sales growth and market penetration?   2. Are our reps properly trained, and what is the lag time between training and an effective rep?   3. Is our compensation package and awards program sufficient to attract and retain high performers?   4. Is our field sales forecasting system functioning properly to anticipate negative trends?   5. Can we continue to leverage the sales expense line without damaging sales?   6. Is our expense budget tracking system effective?   7. Are we accurately monitoring sales force morale?   8. Is our pay schedule competitive?

beaten and humiliated and experience indescribable suffering and anguish. Will become sin offering and die on job. To qualify: Must be male, minimum age 30. Father must be God, mother must be of house and lineage of David, must have been virgin when he was born. Adopted father must also be of house of David. Must have sinless blood and spotless record. Must have been born in Bethlehem and raised in Nazareth. Must be self-motivated, with aggressive personality and burning desire to help people. Must have tremendous knowledge of Old Testament and firm reliance on biblical principles. Must incorporate the foresight of Noah, the faith of Abraham, the patience of Job, the faithfulness of Joseph, the meekness of Moses, the courage of Joshua, the heart of David, the wisdom of Solomon, the boldness of Elijah, the power of Elisha, the eloquence of Isaiah, the commitment of Jeremiah, the vision of Ezekiel and the love of God. Wages: Holy spirit (without measure) to start. Additional payoff in intimacy with God and receiving revelation as necessary to complete job. Constant on-job training, supervision and guidance by top-level management. Benefits: Position will lead to highly exalted position in future if job carried out successfully. Workman’s compensation: Injuries sustained on job, including death, well compensated by promotion including new body. Management will highly promote name upon successful completion of job, and entire publicity department will be devoted to getting name before multitudes. Will assume presidency of expanding international venture (The Ministry of Reconciliation), as Head of Body of well-equipped members ready to move dynamic new product on world market. All in all, tremendous eternal potential for growth and rewards in return on initial investment of giving life. If qualified, management will contact you. No need to apply.

Leadership and Culture” may seem like a vague or general catch-all phrase. Let me offer some questions to guide you down the path and to set the stage for upcoming chapters on this important first piece of the framework. What does it feel like to be part of your company’s sales team? Is it a high-performance culture? Why do you feel that way? Are team members laser-focused on goals and results? What’s the vibe in the sales department (whether it is local or based remotely)? What does accountability look like on this team? How often, how big, and how loud are victories celebrated? Is the manager leading the team or just reacting to circumstances? Are sales team meetings valuable? Do salespeople leave those meetings better equipped, envisioned, and energized, or drained and discouraged? Do members of the sales team feel supported, valued, and appreciated? Does the existing compensation plan make sense and does it drive the desired behaviors and results? In what ways is the manager putting his or her fingerprints on the team? How much of the sales leader’s time is devoted to non-sales activities and executive and administrative burdens? What’s the level of intensity, passion, and heart-engagement of team members? I don’t believe that anyone would doubt that we can create significant lift in a sales organization by improving the answers to these questions.

Efficient management without effective leadership is, as one individual has phrased it, “like straightening deck chairs on the Titanic.” No management success can compensate for failure in leadership. But leadership is hard because we’re often caught in a management paradigm.

Dayna emphasized that the main challenge for companies deciding whether to adopt biomimetic solutions hinges on value generation. Profit is usually the only metric that is used, and while she recognizes the tremendous potential for profit offered by biomimicry, she stressed that there are also highly valuable, albeit less easily measured, benefits for companies that adopt biomimicry into their practices. Employees see real purpose and personal mission in their work. It creates passion, loyalty, creativity, and team building. Biomimetic product development starts from a nontoxic, nonharmful stance. Rather than designing for end effect and then compensating for toxicity and waste management, it also saves adopters considerable money on increasingly arduous and expensive environmental regulations-and future remediation liability.

The deliverer of feedback experiences anxiety, which often is compensated for by insensitivity masquerading as directness. The receiver experiences hurt feelings, wounded pride, and defensiveness. More often than not, both parties try to hide their true emotions, and that in itself becomes a variable in the conversation that if not managed can get in the way of clarity and effectiveness. This may be contrary to human nature, but the most effective means of preventing this is to be open about how the conversation is making you feel rather than trying to hide the emotional truth beneath a veneer of managerial bluster.

Bill Bradley (b. 1943) fell in love with the sport of basketball somewhere around the age of ten. He had one advantage over his peers—he was tall for his age. But beyond that, he had no real natural gift for the game. He was slow and gawky, and could not jump very high. None of the aspects of the game came easily to him. He would have to compensate for all of his inadequacies through sheer practice. And so he proceeded to devise one of the most rigorous and efficient training routines in the history of sports. Managing to get his hands on the keys to the high school gym, he created for himself a schedule—three and a half hours of practice after school and on Sundays, eight hours every Saturday, and three hours a day during the summer. Over the years, he would keep rigidly to this schedule. In the gym, he would put ten-pound weights in his shoes to strengthen his legs and give him more spring to his jump. His greatest weaknesses, he decided, were his dribbling and his overall slowness. He would have to work on these and also transform himself into a superior passer to make up for his lack of speed. For this purpose, he devised various exercises. He wore eyeglass frames with pieces of cardboard taped to the bottom, so he could not see the basketball while he practiced dribbling. This would train him to always look around him rather than at the ball—a key skill in passing. He set up chairs on the court to act as opponents. He would dribble around them, back and forth, for hours, until he could glide past them, quickly changing direction. He spent hours at both of these exercises, well past any feelings of boredom or pain. Walking down the main street of his hometown in Missouri, he would keep his eyes focused straight ahead and try to notice the goods in the store windows, on either side, without turning his head. He worked on this endlessly, developing his peripheral vision so he could see more of the court. In his room at home, he practiced pivot moves and fakes well into the night—such skills that would also help him compensate for his lack of speed. Bradley put all of his creative energy into coming up with novel and effective ways of practicing. One time his family traveled to Europe via transatlantic ship. Finally, they thought, he would give his training regimen a break—there was really no place to practice on board. But below deck and running the length of the ship were two corridors, 900 feet long and quite narrow—just enough room for two passengers. This was the perfect location to practice dribbling at top speed while maintaining perfect ball control. To make it even harder, he decided to wear special eyeglasses that narrowed his vision. For hours every day he dribbled up one side and down the other, until the voyage was done. Working this way over the years, Bradley slowly transformed himself into one of the biggest stars in basketball—first as an All-American at Princeton University and then as a professional with the New York Knicks. Fans were in awe of his ability to make the most astounding passes, as if he had eyes on the back and sides of his head—not to mention his dribbling prowess, his incredible arsenal of fakes and pivots, and his complete gracefulness on the court. Little did they know that such apparent ease was the result of so many hours of intense practice over so many years.

Alternatives include Brookfield Asset Management, Fairfax Financial, Leucadia National, Loews Companies, Markel Corporation, and White Mountains Insurance. While these companies meet Buffett-style compensation criteria, some public investment vehicles have married hedge-fund-style compensation with a value investment approach. Examples include Greenlight Capital Re and Biglari Holdings.

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Amelia, if we have children … will you mind that they’re part Roma?” “Not if you don’t mind that they’re part Hathaway.” He made a sound of amusement and finished undressing. “And I thought life on the road would be a challenge. You know, it would terrify a lesser man, trying to manage your family.” “You’re right. I can’t imagine why you’re willing to take us on.” He gave her naked body a frankly lascivious glance as he joined her beneath the covers. “Believe me, the compensations are well worth it.” “What about your freedom?” Amelia asked, snuggling close as he lay beside her. “Are you sorry to have lost it?” “No, love.” Cam reached to turn down the lamp, enfolding them in velvet darkness. “I’ve finally found it. Right here, with you.

Agustín Parlá Orduña was among the early Cuban aviation aces. He was born in Key West, Florida, on October 10, 1887, and received his early education there. After Cuba was liberated from Spain, the family returned to Havana, where he continued his education. On April 20, 1912, he received his pilot’s license at the Curtiss School of Aviation in Miami. On July 5, 1913, when the Cuban Army Air Corps was formed, Agustín Parlá was commissioned as a captain in the Cuban Armed Forces. On May 17, 1913, Domingo Rosillo and Agustín Parlá attempted the first international flights to Latin America, by trying to fly their airplanes from Key West to Havana. At 5:10 a.m., Rosillo departed from Key West and flew for 2 hours, 30 minutes and 40 seconds before running out of gas. He had planned to land at the airfield at Camp Columbia in Havana, but instead managed to squeak in at the shooting range, thereby still satisfactorily completing the flight. Parlá left Key West at 5:57 in the morning. Just four minutes later, at 6:01 a.m., he had to carefully turn back to the airstrip he had just left, since the aircraft didn’t properly respond to his controls. Parlá said, “It would not let me compensate for the wind that blew.” When he returned to Key West, he discovered that two of the tension wires to the elevator were broken. On May 19, 1913, Parlá tried again and left Key West, carrying the Cuban Flag his father had received from José Martí. This time he fell short and had to land at sea off the Cuban coast near Mariel, where sailors rescued him from his seaplane.

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Talent management is popular because it helps legitimize and normalize horrendously inflated pay cheques. ‘This “talent mind-set” is the new orthodoxy of American management,’ Malcolm Gladwell wrote more than a decade ago. ‘It is the intellectual justification for why such a high premium is placed on degrees from first-tier business schools, and why the compensation packages for top executives have become so lavish.’25 According to this line of thought, it is entirely acceptable that some people are rewarded inordinately while others are left empty handed.

The advice process: From the start, make sure that all members of the organization can make any decision, as long as they consult with the people affected and the people who have expertise on the matter. If a new hire comes to you to approve a decision, refuse to give him the assent he is looking for. Make it clear that nobody, not even the founder, “approves” a decision in a self-managing organization. That said, if you are meaningfully affected by the decision or if you have expertise on the matter, you can of course share your advice. A conflict resolution mechanism: When there is disagreement between two colleagues, they are likely to send it up to you if you are the founder or CEO. Resist the temptation to settle the matter for them. Instead, it’s time to formulate a conflict resolution mechanism that will help them work their way through the conflict. (You might be involved later on if they can’t sort the issue out one-on-one and if they choose you as a mediator or panel member.) Peer-based evaluation and salary processes: Who will decide on the compensation of a new hire, and based on what process? Unless you consciously think about it, you might do it the traditional way: as a founder, you negotiate and settle with the new recruit on a certain package (and then probably keep it confidential). Why not innovate from the start? Give the potential hire information about other people’s salaries and let them peg their own number, to which the group of colleagues can then react with advice to increase or lower the number. Similarly, it makes sense right from the beginning to choose a peer-based mechanism for the appraisal process if you choose to formalize such a process. Otherwise, people will naturally look to you, the founder, to tell them how they are doing, creating a de facto sense of hierarchy within the team.

It’s Time to Split HR 500 words HBR article by Ram Charan, July–August Many CEOs are disappointed with their HR departments. Charan proposes a radical solution: Eliminate the position of chief human resources officer and split HR into two functions: HR-A (administration), which would manage compensation and benefits and report to the CFO, and HR-LO (leadership and organization), which would focus on improving people capabilities and report to the CEO. Here’s what our readers had to say:

The typical mentality among the leadership of “less work for more money” is far too prevalent. Outstanding efforts by individual employees are frowned upon, because they give “management” a reason to expect better results without an increase in compensation.

consciousness. Elizabeth Gaskell’s Mary Barton (1848) and North and South (1855), Charlotte Brontë’s Shirley (1849), George Eliot’s Silas Marner (1861) and many other such literary portrayals appeared in these years to testify to this growing attention. A novel might have been written about the travails of Davitt’s life too. As a child he was employed in the cotton industry, working in the local mills that resounded to the din of vast and deafening spinning machines that regularly nipped off workers’ limbs and scalps; in 1857, Davitt himself lost an arm to one of these machines and was dismissed from the works without compensation. In his teens, he managed to acquire an education

Consider James D. Sinegal, co-founder and CEO of Costco, a warehouse retailer. His salary in 2003 was $350,000, which is just about ten times what is earned by his top hourly employees and roughly double that of a typical Costco store manager. Costco also pays 92.5% of employee health-care costs. Sinegal could take a lot more goodies for himself, but has refused a bonus in profitable years because “we didn’t meet the standards that we had set for ourselves,” and he has sold only a modest percentage of his stock over the years. Even Costco’s compensation committee acknowledges that he is underpaid. Sinegal believes that by taking care of his people and staying close to them, they will provide better customer service, Costco will be more profitable, and everyone (including shareholders like himself) will win. Sinegal takes other steps to reduce the “power distance” between himself and other employees. He visits hundreds of Costco stores a year, constantly mixing with the employees as they work and asking questions about how he can make things better for them and Costco customers. Despite continuing skepticism from analysts about wasting money on labor costs, Costco’s earnings, profits, and stock price continue to rise. Treating employees fairly also helps the bottom line in other ways, as Costco’s “shrinkage rate” (theft by employees and customers) is only two-tenths of 1%; other retail chains suffer ten to fifteen times the amount. Sinegal just sees all this as good business because, when you are a CEO, “everybody is watching you every minute anyway. If they think the message you’re sending is phony, they are going to say, ‘Who does he think he is?

No management success can compensate for failure in leadership.

Nipsy Jhamb - Responsible for managing HR Operations, HRIS, Benefits, and Recruiting for a global organization specifically designing, aligning and executing a global HR business strategy into the operating fabric of the Firm. Consult with senior business leader across a full spectrum of HR areas, especially in talent programs, total rewards, executive compensation, global integration, etc.

On May 17, 1913, Domingo Rosillo and Agustín Parlá attempted the first international flights to Latin America, by trying to fly their airplanes from Key West to Havana. At 5:10 a.m., Rosillo departed from Key West and flew for 2 hours, 30 minutes and 40 seconds before running out of gas. He had planned to land at the airfield at Camp Columbia in Havana, but instead managed to squeak in at the camp’s shooting range, thereby still satisfactorily completing the flight. Parlá left Key West at 5:57 in the morning. Just four minutes later, at 6:01 a.m., he had to carefully turn back to the airstrip he had just left, since the aircraft didn’t properly respond to his controls. Parlá said, “It would not let me compensate for the wind that blew.” When he returned to Key West, he discovered that two of the tension wires to the aircraft’s elevators were broken. Two days later, Parlá tried again and left Key West, carrying the Cuban Flag his father had received from José Martí. This time he fell short and had to land at sea off the Cuban coast near Mariel. Sailors from the Cuban Navy rescued him from his seaplane. Being adventuresome, while attending the Curtiss School of Aviation in 1916, Parlá flew over Niagara Falls. In his honor, the Cuban flag was hoisted and the Cuban national anthem was played. The famous Cuban composer, pianist, and bandleader, Antonio M. Romeu, composed a song in his honor named “Parlá over the Niagara” and Agustín Parlá became known as the “Father of Cuban Aviation.

Authority lets you get away with weak arguments and poor justifications, but it’s a pretty expensive way to work with people, because they’ll eventually turn off their minds and simply follow orders—if they’re in a complicated compensation or life situation, that is. Otherwise, they’ll just leave.

We pay higher than most similar companies in base pay, which is guaranteed and not subject to some management fad or poorly set goals. And we tend to give a little more stock equity as well, to compensate employees for the lack of bonus—with the side benefit of focusing employees on long-term versus short-term objectives. My belief has always been to pay people well, so they feel it’s fair, but don’t cloud things by believing that compensation is the great motivator, especially for creative roles.

real life the role of randomness is far less obvious than it was in Langer’s experiments, and we are much more invested in the outcomes and our ability to influence them. And so in real life it is even more difficult to resist the illusion of control. One manifestation of that illusion occurs when an organization experiences a period of improvement or failure and then readily attributes it not to the myriad of circumstances constituting the state of the organization as a whole and to luck but to the person at the top. That’s especially obvious in sports, where, as I mentioned in the Prologue, if the players have a bad year or two, it is the coach who gets fired. In major corporations, in which operations are large and complex and to a great extent affected by unpredictable market forces, the causal connection between brilliance at the top and company performance is even less direct and the efficacy of reactionary firings is no greater than it is in sports. Researchers at Columbia University and Harvard, for example, recently studied a large number of corporations whose bylaws made them vulnerable to shareholders’ demands that they respond to rough periods by changing management.44 They found that in the three years after the firing there was no improvement, on average, in operating performance (a measure of earnings). No matter what the differences in ability among the CEOs, they were swamped by the effect of the uncontrollable elements of the system, just as the differences among musicians might become unapparent in a radio broadcast with sufficient noise and static. Yet in determining compensation, corporate boards of directors often behave as if the CEO is the only one who matters.

Based on Better Work's experience with hundred's of enterprises, there have emerged 5 critical areas of conversation between manager and contributor 1- goal setting and reflection - where the employee's OKR plan are set for the upcoming cycle. The discussion focuses on how best to align individual objectives and key results with organizational priorities. 2- ongoing progress updates, which are brief, data-driven check-ins based on the employee's real-time progress with problem-solving as needed. Progress updates really entail two basic questions - what's going well and what's not working well 3 - two-way coaching to help contributors to reach their potential and managers do a better job 4- career growth to develop skills, identify growth opportunities and expand employee's vision of their future at the company 5- light-weight performance reviews. A feedback mechanism to gather input, and summarize what the employee has accomplished since the last meeting in the context of the organization's needs. And note this conversation is held apart from the employee's annual compensation performance review.