Announcing Quought for the Day series for 2008

by Rajesh Setty on Fri 18 Jul 2008 08:49 AM EDT

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Beginning of 2007, I created a project called “Quought for the day” and requested several thought leaders to contribute a quought for my blog.

Quought = Question that provokes Thought.

The project was VERY successful and well received mainly because of so many interesting Quoughts from several leading thinkers.

My Squidoo lens on Questions has details of all the Quoughts for 2007.

Here is the link to the Squidoo lens:

http://www.squidoo.com/questions

This year, I am continuing the tradition and trying to feature some more questions that will provoke thought.

I reached out to a number of people that I respect and asked them this question

What is ONE question that you wish someone had asked you when you were young? And, Why?

The response of course is another question with a brief explanation.

Think about the question yourself and I will start featuring questions from several other thinkers soon.

Have a great Friday!

Social Capital 101 - Interview with Bill Sherman

by admin on Tue 15 Jul 2008 18:41 PM EDT

Bill Sherman has been a friend for years and has helped me with many projects. Two weeks ago, I spent a few days with Bill where I had a chance to learn about his research on “social capital” in the last few months. The topic is of great interest to me and his research findings were intriguing. So I asked Bill to share some of those gems here.

Bill Sherman writes on social capital and thought-leadership marketing at Aha-Moments, where he’s preparing a book on leveraging global relationships. Bill currently serves on the board of advisors for a number of companies in Silicon Valley: Heartwood Studios, Acceledge, and Resiligence.

As a consultant, Bill specializes in organizational diagnostics and analysis. He has consulted with Fortune 500 companies across virtually every functional area, which gives him the nimble ability to leverage solutions across vertical silos.

Now, here is the Q&A with Bill

RS: What’s the problem with today’s social networking?

BS: Many people joined the social networking craze because, on the surface, it’s seems so easy and effortless to build your network. Click a link and make a connection—through LinkedIn, FriendFeed, Facebook, Plaxo, etc. That’s even easier than trading business cards. The problem is that it’s easier to click links than actually build connections. Many people adopted these technologies into their business lives without any strategy or forethought. Now, we’re all increasingly tangled within multi-layered social network technologies.

Here’s just one dilemma. If I accept your invite on LinkedIn, should I also accept your invite on Plaxo or Facebook? I’ve seen people try to answer this question based on the degree of friendship—whether they’re a good friend, a casual acquaintance, or a chance meeting at a business conference.

RS: I’ve heard you say that social networks are just the foundation for social capital—what do you mean by that?

BS: A social network is a collection of connections, but the term doesn’t tell you how well that network will help you achieve your goals. It’s just a map of who you know. Let’s contrast that with social capital.

Social capital represents your ability to locate and mobilize resources within your network. It’s not just who you know, but what would they be willing to do to help you achieve your goals. Maybe they will let you know about a job opening, offer you a hand on a project, serve as your mentor, or invite you into a new opportunity.

RS: Can social capital make an impact on someone’s career?

BS: Absolutely. Let’s take a look at a two studies conducted by sociologists. Ronald Burt studied managers within a high-tech company, and he identified several patterns within managers’ social networks. Those managers who had built the most diverse networks (across functional areas and with channel partners) tended to experience two benefits: early promotion (young for their age) and fast promotion (short time before promotion).  Bonnie Erickson, looked at hiring decisions for upper-level jobs.  She found that “employers prefer to hire people with greater social capital for many upper-level jobs, and that employees with greater social capital get better jobs whether they were hired through personal contacts or not.” Those are pretty compelling arguments for social capital right there.

RS: That reminds me of something Tim Sanders wrote in Love is the Killer App, wrote that “your network is your net worth.” Is that what you’re referring to when you refer to social capital?

BS: I’ve actually discussed that quote a lot with Tim. He was incredibly accurate when he wrote that line, but it’s also just the entry point into a very complex issue on relationships.

Researchers have shown that most people don’t follow a plan when they build their social networks. Their networks just grow organically over time. However, some social network strategies can help you reach your goals sooner while other social network strategies can actually slow you down.

RS: So, which relationship-strategies work and which ones don’t?

BS: When it comes to social networks and social capital, there’s no one-size-fits-all answer. Let’s look at three examples of people with very different network strategies:

A newly-promoted executive: You need to locate a champion and mentor quickly, but that person shouldn’t be your boss. It should be in a dashed-line relationship. You also need to craft relationships with new peers, your direct reports, and perhaps strategic vendors.

A commercial real-estate agent: You might have a mentor in your field and a few specialized peers in town who help you on deals, but your most important connections will be high-level decision makers in other fields.

An IT recruiter: Here, you might want to know many people with similar sets of IT skills so that you can place them at client companies.

Some people build closely-tied professional networks filled with people who share similar skills and interests, while other people build networks with people who have vastly diverse skills and interests. Either strategy can accelerate (or hinder) your career; It depends on how well your strategy fits your goals.

RS: What action should I take to increase my social capital?

BS: People who ask that question have already started to differentiate themselves. From what I’ve seen, people who are successful with social capital build healthy relationship ecosystems around themselves that contain valuable resources that relate to their goal. If you want to be able to mobilize resources within your network, you also must be willing to help others achieve their goals. When you talk to someone within your network, take time to ask what help they’re looking for. Then, locate and mobilize these resources within your network on their behalf.

If you want to access relevant resources, you must give relevant support to your connections. That means you have to invest time beyond just a quick “Let’s connect!” request on LinkedIn. You actually have to build relationships.

Lastly, here is the link to Bill’s blog again:

Aha-Moments

Wisdom of the flying pig - Interview with Jack Hayhow

by Rajesh Setty on Mon 14 Jul 2008 17:54 PM EDT

Last week I had an opportunity to talk to Jack Hayhow, founder of Opus Training. I also had an opportunity to read his wonderful little book called “The Wisdom of the Flying Pig” and thoroughly enjoyed it.

Jack was not only kind enough to answer a few of my questions for the benefit of the readers of Life Beyond Code but also offer an eBook version of “The Wisdom of Flying Pig” for FREE. Details to access the book are at the end of this blog post

Now, here is the Q&A with Jack Hayhow:

RS:  The title of your book mentions managers AND leaders.  What, in your opinion, is the main difference between managers and leaders?

JH:  That’s an important question and one that a lot of people have asked.  There is some overlap between management and leadership, but in my view the roles and responsibilities of managers and leaders are fundamentally different.  Managers look first to the individual in the present moment while leaders look first to the group and toward the future.

Managers help their companies grow one person at a time by helping each individual turn his or her talent into performance.  The great manager’s focus is always locked on to what is happening with each individual direct report in real time.

On the other hand, every leader on the planet woke up today thinking about tomorrow.  The gift of great leaders is that they rally the collective passion of the organization toward a better future.

RS:  How can people evaluate themselves as a manager?

JH:  The important thing to remember is managers don’t get paid for what they do, they get paid for what their people do.  So, if you want to figure out how you’re doing as a manager, ask yourself these three questions:

1)    Are your people more productive working for you than they would be working for someone else?

2)    Are your people growing more working for you than they would be working for someone else?

3)    Do your people stay with the company longer working for you than they would have stayed working for someone else?

RS:  What’s the litmus test for leaders?

JH:  There have been thousands of books written about that question, but I think it’s productive to think about what leaders are responsible for producing.  At the end of the day, it seems to me there are four deliverables of great leadership:

1)    Amazingly engaged employees

2)    Evangelical customers

3)    Consistently solid financials

4)    Growth (Revenue, Profit, Capability)

Without these results, it’s hard to be described as a great leader.

RS:  What’s the most important thing a manager can do to be successful?

JH:  There are a handful of critical activities, so it’s tough to pick just one.  But you asked for one, so maybe we can compromise – I’d mention two:

1)    Make sure your people have the talent they need to do the job you’ve asked them to do.

Great achievement starts with great ability.  The idea that anybody can do anything is just flat wrong.  If you want your people to perform at a high level, you have to identify each person’s talent and then match that talent with the task.

2)    Make sure your people are doing work they find satisfying and meaningful.

Without quoting all the research (and there is a ton of it), just know that intrinsic motivation trumps any external device, process or practice ever invented by man. When the work itself is meaningful and satisfying, people are inspired to amazing achievement and the manager’s need to motivate mostly disappears.

RS:  What characteristics must a leader have to be successful?

JH:  Leaders can be successful in a number of different ways.  But there are some indispensable characteristics.  The two that jump most immediately to mind are honesty and optimism.

Honesty requires that you tell the truth, of course.  But it goes much deeper.  You must always do what you say you will do.  Your actions must be absolutely consistent with your words.  If you don’t walk the talk, you can’t be believed and you will fail as a leader.

Optimism is central to leadership because people need hope.  They need to believe the future will be better than the past.  To be a leader, you must have followers – people who will commit their hearts and minds and sweat to attaining your vision.  Can you imagine that anyone would commit so much to a person who is pessimistic about the future?

Now, here are the instructions to access the eBook version of “The Wisdom of the Flying Pig”

2) Click on “Books and eBooks”
3) Click “Add to Cart”
4) Enter Discount Code:  L8B1C
Have a great week ahead!

McDonalds Iced Coffee and shifting the criteria

by Rajesh Setty on Mon 14 Jul 2008 08:29 AM EDT

On Saturday, I wanted to have a cup of coffee. There was a long line at Starbucks (makes one wonder why they are closing 600 stores) and I was not in a mood to stand in the queue. Next door was McDonalds. I had read advertisements about their new flavored ice coffee and decided to try it.

There were two choices and the person asked me what size coffee I preferred - “Medium or Large” and I said “Medium”. Then she looked at me as if I was from another planet. I thought something must be wrong and looked at the board. The two choices were:

Medium - for $1.89 + tax

Large - for $1.99 + tax

The difference was 10 cents. I asked whether I was one of the few who had ordered a medium drink. She said “You are the first one today” and in her mind, she must be thinking - “Yes, you are. Moron!”

Thinking about it, it just doesn’t make logical sense that for a lot more coffee they just want only 10 cents more. Obviously everyone is picking the larger version. Why would they not - it’s only ten cents more and a lot more coffee.

Why would McDonalds do this?

Well, there has been a lot of research that has gone into this field. Let me explain it in simple terms and then point to a research study.

Iced Coffee is new to McDonalds and hence there is no precedence for the customers to find out whether it is priced right or not. They can’t compare the price of an iced coffee to the price of a burger. So if they introduce only one size with one price, the chances are you will let the consumers guessing whether it is rightly priced or not. By shifting the criteria intelligently, you are now asking the consumers to compare the price of a medium iced coffee to a large iced coffee. And making a typical consumer think - “Wow. the large sized iced coffee is a deal”. In this whole process, the consumer has forgotten to question whether the iced coffee (medium or large) is priced in the right range in the first place.
Dan Ariely explains this concept beautifully in his book Predictably Irrational (website, book) where he talks about “Why Everything is Relative even when it shouldn’t be” in the first chapter. For a deeper discussion on the topic, please refer to the book and other works of Dan. You will enjoy reading about this and other research findings by him.

Have a great week ahead!

IndyMac Bank - A scary lesson for everyone

by Rajesh Setty on Sat 12 Jul 2008 20:38 PM EDT

The failure of IndyMac bank is scary. It’s actually a scary lesson for all of us. You can read the full story at Wall Street Journal - Crisis deepens as Big Bank Fails. What caught my attention is the statement about what the bank specialized in. Here it is

It specialized in Alt-A loans, a type of mortgage that can be offered to borrowers who don’t fully document their incomes or assets

Just because something looks good on paper does not mean that it is good.

Think about it. Would you have deposited money in IndyMac bank if you knew that this was their specialization?

Scary. Very scary!

Is the ball in my court?

by Rajesh Setty on Sat 12 Jul 2008 18:11 PM EDT

The typical question you may ask is “Is the ball in my court?”

Unfortunately, this question is flawed if you assume that there is only one ball to handle. Generally, there are many balls in the air. Here are some of them:

* A ball that relates to your work

* A ball that relates to your family

* A ball that relates to your social life

* A ball that relates to your long-term projects

* <<fill in the blanks here>>

So, in the process of trying to figure out whether the ball is in your court or not, you might forget to ask the real question which is

How many people are in my court?

Enjoy the weekend!

Ways to distinguish yourself #189 - Disproportionately shift the baseline over time

by Rajesh Setty on Fri 11 Jul 2008 18:05 PM EDT

Think about any reasonably successful person and you will see that his or her career path will be plastered with a series of successes and failures. While the media and the outside world may only paint a picture of what his or her successes are, the person will know clearly how the career was a roller coaster ride - up, down, up, up, down and up and so on.

When you plot this typical graph, you will see spikes on both sides of baseline.

However, you can make a difference by consciously working on disproportionately shifting the baseline to your advantage. In simple terms, you can do it by disproportionately investing in yourself over a long-period of time. The components that can disproportionately shift the baseline to your advantage are different for different people. For me (I think) these components are:

* A strong personal brand

* Solid long-term relationships

* High Leverage Thinking

* Access to powerful mentors and teachers

* Continuos learning

* Strong spiritual foundation

Baseline in my definition is the powerbase that a person requires to have to make a  valuable contribution to the marketplace with the current reality. Every year, the person’s capacity increases - shifting the baseline. For example, experience will shift the baseline to the next level - it has to. There is (generally) a difference between what a person with one year experience can produce as compared to what a person with two years of experience can produce. The graph below factors in the “standard shift” in the baseline for a typical person. This means that year over year if you increase your capacity that you are expected to increase anyway, the graph does not show any change in the baseline. That is what is expected of you from the marketplace - so there is no special consideration.

And a few others that are personal to me. I will aggressively disproportionately invest my time, energy, money and other resources in all of the above

For you, they may be different. You and your mentors and teachers can figure out what those are for you and start investing heavily in developing them.

As the baseline shifts, your swing to success and failures won’t matter much as they are operating out of the new baseline that you have created for your own case.

As your baseline deviates from the standard baseline in the marketplace, you start gaining competitive advantage that is hard to beat easily.

Any model that results from careful long-term investment and growth strategy will always have an advantage over the models created based on “short-term” and “fly by night” strategies.

All the best and have a great weekend.

============

Note 1: For links to the other 188 entries in the “Distinguish yourself” series, please visit my Squidoo lens on the same topic:
Squidoo Lens: Distinguish yourself

Note 2: The first 25 entries in the series have been packaged in a ChangeThis manifesto that was published on September 07, 2005. You can download that manifesto here:
ChangeThis Manifesto: 25 Ways to Distinguish Yourself

Note 3: My latest manifesto on ChangeThis was published on August 8, 2007. Here is the link:
ChangeThis Manifesto: Making the Most of Your Time: Going Beyond To-Do Lists

Just being nice is NOT enough

by Rajesh Setty on Fri 11 Jul 2008 10:24 AM EDT

It hurts to see many nice people struggle through life. Just like gravity doesn’t care who you are, the world doesn’t care how much money nice people make. The marketplace rewards value and it helps if that comes from a nice person.

If being nice is on one axis, having the power to make things happen is on the other axis. Being nice and having the power is the winning combination. Any other combination, a recipe for a short-term or a long-term failure.

Here is a Nice-Power matrix to consider

As you can see, if you have no power and you are not nice, you will be a “Clueless Loser” meaning, you don’t have a clue that you are losing or you know you are losing but have no clue why you are losing.

With pure power and no nicety, you will be an “Arrogant Loser” - meaning you may have a short-term win that will boost your arrogance even further until it leads to an eventual failure.

Being very nice but no power, you will be a “Charming Loser” - meaning people will love to be around you but won’t be willing to pay and engage you.

You need both - niceness and power. Only then you have an opportunity to “make it happen” in the short and long-term.

Goals with and without help

by Rajesh Setty on Fri 11 Jul 2008 06:00 AM EDT

Goals are easy if you never have to fulfill them.

Everything is clear when it is in your head. Only when that has to be translated into reality, there’s a problem.

So, if you are alone and you are going at your goals, chances are you may not reach where you are headed. Why? Because at 20,000 feet level goals are simple and you can easily overestimate your capacity to achieve them. As you get down to the ground level, you will realize that you alone are not capable of achieving those big goals. Since long-term relationships cannot be built in the short-term (it just doesn’t make sense, isn’t it) you will probably fall short of achieving the goals.


On the other hand, it is exactly the opposite in the case where you have BIG goals but also have access to a lot of help. With good help, you will start realizing that you can actually achieve more than what you set out to achieve in the first place. So you might really overshoot your own dreams or just simply achieve them in less time than you planned earlier.

All the best and start building those long-term relationships NOW!

The best gift your customer can give you

by Rajesh Setty on Thu 10 Jul 2008 22:14 PM EDT

What is the best gift your customer can give you?

Hint: It’s not money.

It is an act that shows that a customer REALLY cares about you.

Recently Hari (president of Jiffle) and I experienced a gift from one of our customers and it touched our hearts.

Please take a look at this site

http://www.myjiffle.com

It is a referral site for the Jiffle service. It provides a brief overview of what Jiffle offering is and urges potential customers to go and sign up for the service. Think of it like a site with just a landing page. Companies do this all the time.

In this case though - this site was not created by us. It was created by one of your kind customers - Sylva Leduc. Sylva has been a long-time customer, power user and a long-time supporter of Jiffle. But creating a site dedicated to us - that made our day!

Thank you Syl. This means a lot to us!