Taking Note of headlines in the news
Principles and values at work in the business world
First-Hand Look at a Scandal
Stanford Business magazine
When New Mexico’s governor asked retired business executive Douglas Minge Brown to help sort out a $160 million financial and ethical scandal in the State Treasurer’s Office, he was shocked at what he found. Brown’s conclusion: “While some people have a moral compass that will keep them doing the right things when no one is looking, many don’t.”
Bankers Embracing Transparency
American Banker
In the wake of recent Wall Street declines, many senior banking executives are more receptive to meeting with stock analysts than they were last year when the industry was coming to grips with harrowing credit issues. “Bankers now realize that there is a lack of credibility and transparency, and they’re getting better at addressing it,” said an analyst.
Water Cooler Chats Build Corporate Value
Knowledge@W. P. Carey
Office coffee klatches aren’t wasted time – they are modern tribal gatherings that help bring organizational strategies and mission down to a personal, local level. “How people feel about their employer is largely dependent on how they feel about their tribe…rather than the organization’s larger culture and objectives as dictated by upper management,” reported Knowledge@W. P. Carey.
Can Responsibility Help Liberty Mutual Sell Car Insurance?
“Greenwashing” is a term that’s being used more frequently these days, and for the most part it’s not a compliment. It refers to the practice by which companies, organizations or individuals with less-than-outstanding reputations on green issues attempt to market themselves as friends of the environment. If a company’s greenhouse gas emission levels have increased dramatically, for example, it might seek to distract attention from that unfortunate fact by launching a program that enables first-grade schoolchildren to plant new trees around the school. With environmental sustainability now dominating so much media buzz, greenwashing is an attractive if unseemly route to improving a questionable public image.
More ››
Exploring new approaches to business in the high-powered world of digital technology
Like a lot of people, I have decidedly mixed feelings about technology. When my PC is firing away, performing all the tricks it’s supposed to, it’s extremely easy to envision myself as a digital trailblazer, pioneering exciting new dimensions of 21st century communications and knowledge. And when my computer seizes up and grinds to a halt, frustrating those world-conquering digital ambitions, I am reminded of the perspective of newspaper columnist Dave Barry: “People in the computer industry use the word ‘user’, which to them means ‘idiot’.”
And so it was with some trepidation that this computer “user” recently accepted an invitation to discuss HOW with a group of executives from the technology industry. In my experience, tech execs tend to be smart, not afraid to challenge and holding strong opinions about what works and what doesn’t – especially in the world of business. But I figured I could hold my own.
More ››
An apology pays dividends.
"Say you’re sorry.”
It’s an order parents routinely give their children as a way of mending relationships damaged by a careless or thoughtless act. And centuries of experience demonstrate that the formula actually works.
Now, The New York Times reports, even the medical profession is finding advantage by leaning into our new 21st century world.
Transparency and collaboration in intellectual property:
An interview with John and Nancy Cronin of
ipCapital GroupJohn and Nancy Cronin are principals with ipCapital Group, a consultancy that helps companies organize and capitalize on their intellectual property. HOW Online talked to them about the ways in which collaboration has changed the ways companies invent.
More ››
Ensuring customer experience doesn’t begin and end at the runway
Earlier this month, the FAA notified Southwest Airlines that it was going to fine the company an unprecedented $10.2 million for violating safety inspection rules. Gary Kelly, the company’s CEO, immediately responded, saying the fine was unfair because his company had “acted responsibly.”
As it turned out, that wasn’t the case. In 2006 and 2007, Southwest operated 47 planes – almost 10% of its fleet – without inspecting them for fuselage cracks. The planes flew a total of 61,000 flights before they were finally grounded for inspection. Cracks were discovered in six of the planes, with some of the cracks as long as four inches.
Within a week, Mr. Kelly had apologized to customers and regulators for the company’s “poor judgment.” Three Southwest employees were placed on administrative leave, and the CEO vowed to make Southwest “the safest airline in the world.” He acknowledged “there are some that have lost trust in Southwest Airlines,” and that the company would “have to regain that trust.” Now, with several FAA inspectors alleging Southwest tried to control the inspection process, Southwest is facing a full-scale crisis – its response will dictate the sincerity of Mr. Kelly’s words.
Don’t let Grandma talk to the press.
The rank-and-file aren’t the only ones affected by stupid rules.
According to Business Week (Feb. 25, 2008), the new employment contract between investment firm Lazard and Bruce Wasserstein, its CEO, has one of the most far-reaching non-disparagement agreements in recent memory.
More ››
Predicting change.
Jane Buckingham’s new book, What’s Next: The Experts’ Guide, collects the opinions of a wide range of experts, from actors and yoga teachers to lawyers and city planners – all working in areas in which dramatic change is expected in the near future.
I was asked by Ms. Buckingham to provide my perspective for her book. In my contribution, I discussed the growing importance of conduct – both personal and business – as a source of differentiation and success.
You can learn more about the book here.
Forbes.com's "On Solutions"
Forbes.com recently developed a report on K-12 education as part of their “On Solutions” series. A wide variety of people, including myself, were asked to write a short opinion piece about things that might be done to fix the education system in America.
More ››
Rethinking the subprime mortgage crisis
Over the last few months, the subprime mortgage crisis has grown to become one of the biggest problems in our economy. As we look over this crisis, its short-term impact is apparent: massive write-downs in the banking industry, a drop in home values and a slowdown in new construction, just to begin with. And as we look down the road, it is clear that this crisis will be with us for some time to come.
Had the mortgage industry been driven by a different set of values – had financial institutions been thinking in terms of should instead of could -- the story might have turned out differently.
Dov Seidman's Posts
