by Tony Mayo | For Business Owners, Leadership Development
Levy: Let’s talk about web services. Amazon Web Services is dominant in hosting—one observer says that you are the Coke of the field, and there’s no Pepsi. How did an ecommerce site wind up in the position where it’s hosting web powerhouses like Foursquare, NASA, Netflix, and The New York Times? … Young startups all tell me that even if Google offers them free hosting, they still want to use Amazon.
Why do you think that is?
Jeff Bezos: We were determined to build the best services but to price them at a level that customers couldn’t match, even if they were willing to use inferior products. Tech companies always have high margins, except for Amazon. We’re the only tech company with low margins.
Levy: How did you do it?
Jeff Bezos: We really obsess over small defects. That’s what drives up costs. Because the most expensive thing you can do is make a mistake. We can afford to focus on smaller and smaller defects and eliminate them at their root. That reduces cost, because things just work.
—Wired
December 2011
by Tony Mayo | For Business Owners, For Executive Coaches, Leadership Development
Years ago, while I was establishing myself in a new executive coaching practice, I supported my family by working as a part-time, outsourced CFO. Here is a reminiscence of a deep learning I earned during one of those accounting gigs.
I sought help from my own executive coach with the very difficult behavior of a bookkeeper employed by my client. She had called several urgent meetings with the partners and each time threatened to quit, more or less because of me. These meetings were very exasperating as she made charges that were either too vague to dispute or clearly contrary to plain facts. For example, although we repeatedly assured her that she had her job as long as she wanted it she insisted she could not continue to work under such uncertainty and would resign immediately because we were conspiring to take her job away. The partners felt obligated to placate and mollify her because she was the only bookkeeper out of several they had tried who was able to make any progress in getting their bills out to clients.
I said to my executive coach, “I am stressed and bothered because of her unpredictable behavior, of course, but I am mostly bothered by the fact that it bothers me. I am so ‘trained’ and ‘transformed’ I ought to be able to deal with her behavior without becoming stressed, hurt, or angry. I try to remain calm, not react to her outbursts, and keep on working because I need this income. I do what is necessary just to keep getting paid, so why do I lose sleep and spend my non-billable time talking about her with my coach, family, and friends?”
By the way, is this scenario reminding you of anything in your life, right now?
My coach reminded me of the dangers of attachment, of identifying with our property or positions. We confuse preferred outcomes with necessary results. We grasp so avidly to particular bits of property or actions by others that we forget we can still be ourselves without them. We attach money or prestige to ourselves so firmly that we forget that we are not our results or our reputations. What I want is not what I am.
I then remembered the old samurai expression (I suppose all samurai expressions are now old).
The most effective warrior dies before entering the battle.
The bookkeeper was not damaging my body or physically invading my free time. My attachments were the only things making my life difficult. I was attached to looking good in the eyes of my client, I was attached to (more…)
by Tony Mayo | For Business Owners, Leadership Development
I just 
read a talk by the head of the US government’s Office of Personnel Management, John Berry. He provides a concise and cogent summary of the new management thinking that I hope will become a major influence in organizations around the world. This shift in management is, I believe, the result of two major trends. First, the crash of 2008 made it very clear that we had been placing too much emphasis and confidence in our top leaders while day-to-day quality of life for the rank-and-file stagnated or declined. Second, a huge wave of research in behavioral economics and positive psychology is shifting management practice toward methods that are tested and proven rather than anecdotal and heuristic.
Below are excerpts from the speech that illustrate some of my favorite points, the practices I emphasize with my own CEO executive coaching clients.
But don’t read my excerpts.
I recommend that leaders of organizations, particularly chief executives, read his entire speech by clicking here. Try to forget that he is speaking about government employees. Ignore references to the President and Congress. Imagine, instead, that you made this speech to your managers and employees. What would the impact be of making these changes in your own leadership style, in your company’s performance review process, in your day-to-day life?
Selected remarks of OPM Director John Berry
Interagency Resource Management Conference
Kellogg Conference Center
What if, when setting performance standards, we engaged our employees and got clear about expectations? What if we made sure performance standards were detailed, objective, aligned to agency mission and goals, and had employee buy-in – that they weren’t just dictated from on high?
Consider the four essential pieces of how we currently manage performance: (more…)
by Tony Mayo | For Business Owners, Leadership Development
The telephone and Internet were still not connected three days after moving our office. I had spent way too much time on hold and hearing excuses from Verizon. I needed to get free of their bureaucracy to focus on running my business. So I called in the Marines. Actually just one former Marine, a recently retired Colonel. For some jobs one Marine is plenty.
“Chet,” I said, “I know you are an executive here and you have plenty to do. So do I. We need telecomm restored ASAP. Do what you can. Okay?”
“Sure, boss.” Chet replied, “Whatever it takes.”
I was a little concerned by the martial fire in his eyes when he said, “Whatever it takes,” but I was determined
to get the business back online and myself focused on other tasks.
“Right,” I said, “Get it done.”
When I walked into the office the next morning (more…)
by Tony Mayo | For Business Owners, Leadership Development, Recommended Books
The Economist offers a fascinating summary of the new book by Stanford’s Jeffrey Pfeffer, Power: Why Some People Have It and Others Don’t. The key requirement is to get into the right department and specialty. As with starting a business, riding a rising tide by choosing a growing, lucrative sector makes everything else easier and success more likely. Once you are in the right place, three practices help you rise to power:
- Manage up. Ask for help and mentoring; flatter your seniors; and make a good impression.
- Be a bridge or node. Nurture relationships across departments and levels; be able to call on the right person to get key information or smooth a transaction.
- Practice loyalty. Persevere with difficult postings. Don’t change companies for short term advantage.
by Tony Mayo | For Business Owners, Leadership Development
New York Times columnist David Brooks, alumnus of my college and our off-campus newspaper, explains beautifully some of the reasons I advise my executive coaching clients to put away popular business books and get into great novels.
Studying the humanities improves your ability to read and write. No matter what you do in life, you will have a huge advantage if you can read a paragraph and discern its meaning (a rarer talent than you might suppose). You will have enormous power if you are the person in the office who can write a clear and concise memo.
Studying the humanities will give you a familiarity with the language of emotion. … Branding involves the location and arousal of affection, and you can’t do it unless you are conversant in the language of romance.
Studying the humanities will give you a wealth of analogies. … If you go through college without reading Thucydides, Herodotus and Gibbon, you’ll have been cheated out of a great repertoire of comparisons.
—David Brooks
History for Dollars
NYTimes.com.
Also see my short post, Why I review novels on a blog for CEOs and executive coaches
by Tony Mayo | For Business Owners, Leadership Development
I noticed something interesting about executive effectiveness while reading an article in The Atlantic Monthly titled, What Makes a Great Teacher? The researchers identified specific traits of the most effective teachers, traits that I immediately recognized as characteristic of exceptional business leaders. Try reading the following excerpt from the article while substituting “manager” for “teacher” and “employees” for “students.”
First, great teachers tended to set big goals for their students. They were also perpetually looking for ways to improve their effectiveness. For example, when Farr called up teachers who were making remarkable gains and asked to visit their classrooms, he noticed he’d get a similar response from all of them: “They’d say, ‘You’re welcome to come, but I have to warn you—I am in the middle of just blowing up my classroom structure and changing my reading workshop because I think it’s not working as well as it could.’ When you hear that over and over, and you don’t hear that from other teachers, you start to form a hypothesis.” Great teachers, he concluded, constantly (more…)
by Tony Mayo | Communication, Conversation, & Confrontation, For Business Owners, Leadership Development
Disputes are inevitable any time you are working with people to produce significant results. What is not inevitable is dreading or delaying the confrontation required to resolve the conflict. Here’s how to get it over within one conversation.
My 3 Rs of dispute resolution are:
- Relationship,
- Responsibility, and
- Request
RELATIONSHIP: Early in the conversation, state plainly the quality of the relationship you want to have with the person. Invite the other person to declare their intentions, too. A client once said to me, “I hope when we’re through negotiating this and we (more…)
by Tony Mayo | For Business Owners, Leadership Development
At Accelerent, I was lucky to meet the commander of the USS Cole and hear his story of the day his destroyer was nearly sunk by al-Qaeda. Kirk Lippold made clear that his ship was saved mostly because of how he led and trained his crew in the years prior to the attack, rather than by any dramatic decisions or heroics on October 12, 2000.
His “Five Pillars of Leadership” are:
• Integrity
• Vision
• Personal Responsibility and Accountability
• Trust and Invest
• Professional Competence
He gave a thrilling and informative presentation. I particularly thanked him for illustrating the masterful use of chain of command, maximizing his impact as a leader by improving his officers rather than continually reaching down to personally resolve specific issues.
The Navy, unfortunately, tends to be rather unforgiving of officers whose ships are damaged so Kirk Lippold never made Captain. The military’s loss is our gain as he tours the country sharing his leadership lessons.
by Tony Mayo | For Business Owners, For Executive Coaches, Leadership Development, Team Manager Skills
What coach has had the greatest impact on a client? The man with the strongest claim may be Earl Woods, whose famous client is his son, golfer Tiger Woods. How did Earl Woods become such a fantastic coach?
By studying, as I have, with the most important influence on executive coaching, Werner Erhard. Some of Earl Woods’s coaching wisdom is below, excerpted from the 1996 article in Sports Illustrated about Tiger being chosen Sportsman of the Year. It is all pure Werner Erhard.
“What I learned through est [created by Werner Erhard] was that by doing more for myself, I could do much more for others. Yes, be responsible, but love life, and give people the space to be in your life, and allow yourself room to give to others. That caring and sharing is what’s most important, not being responsible for everyone else.
“Which is where Tiger comes in. What I learned led me to give so much time to Tiger, and to give him the space to be himself, and not to smother him with dos and don’ts. I took out the authority aspect and turned it into (more…)
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