Monthly Archives: February 2017

Random thoughts – keeping you on your toes

Making Mistakes

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When your action or judgment is misguided or wrong we call that a mistake.  Regardless of the magnitude or visibility, acting or deciding wrongly is a mistake.

Of course, the outcomes and consequences of the mistake might not be in accordance with the type or level of the error.  That is to say a small error could have serious consequences.

And the Oscar goes to……..

Last Sunday was an obvious case where a small slip has disasterous results.  A accountant who works for PWC (Price Waterhouse Coopers) gave the wrong envelope to Warren Beatty on Sunday.

This minor slip resulted in the wrong movie being given the best picture Oscar for a brief two and a half minutes.  More than long enough to create a massive, even monumental fuss.

Fate Intervenes

Warren got the wrong envelope with the wrong contents and under usual circumstances, you would expect he would recognize the winners card was incorrect and stop the train before the crash.

To be fair, Mr. Beatty is 79 and was slowly working through his mind  the puzzle of the strange winners card .  Faye Dunaway, his co star in the 1968 Oscar Best Picture nominated movie “Bonnie and Clyde” , was the co-presenter.

Unfortunately, the relationship between Faye and Warren was a little acromonious.  In particular she is known to have little patience with his slow considered approach.

So Faye, loosing patience with Warrens slow progress, snapped the card from Warren , glanced at it, and read the wrong winner.  And so the error that began with the wrong envelope was exposed.

Fortunately!

In this case the impact is large but certainly not irrepairable, after all  the winning movie was recognized.

I am a little sad for the PWC accountant who will probably bear the brunt of consequences  but really to some extent was only a victim of circumstance.

Random thoughts – keeping you on your toes

The never ending quest for balance

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Basically our daily lives are filled with a series of behaviors ( and the associated actions).  That is, what  we do results in outcomes, that is why we do it.

The outcomes are either satisfying or not.  Very simplistically stated, we do stuff to cause stuff and then we die.  (We may die because thats the natural outcome of the stuff we do, but that is a different deep  conversation).

Sounds boring

We do stuff that causes stuff to happen over and over.  On the surface it seems repetitive and unmotivating, why bother?  The key to managing the outcomes in a fun and motivating way is  through the practice of balance.

This requires analysis and planning.  Balancing the things you do to achieve better results more efficiently can be invigorating.  It puts a lot of spice into your activities.

How does it work?

Practicing balance is the process of determining how much time, effort and what kind of time and effort is best used to achieve the result you seek.

For example you need groceries because you are hungry.   You are low on funds so you will need to balance what kind of food you buy against what you can afford, yet still satisfy your hunger.

You are hungry now but you need to balance speed ( by car -low on gas) with walking ( slower but definately better on gas).

These simple examples highlight the competing choices we encounter all day as we figure out if we should do this or do that or some combination.

Frequently we need to balance the options carefully to attain the best result.  The simple emotional approach to resolve the need directly is often not the best.  Take your time, plan it out, incorporate balance.

For example, building on the above scenario,   you are hungry so  drive to the store intending to buy what you want.  Unfortunately you may run out of gas or money so can’t afford what you want and end up still hungry.

Remember, things are not always as straightforward as they initially appear and a considered balanced approach might not only be more satisfying, but could also achieve a better result.

 

Random thoughts – keeping you on your toes

Adversarial Conduct

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Adversarial discussions are characterized by conflict or opposition and lurking  beneath the covers, probably some hostility.  Too often, these conversations stem from assumptions of intention.

It may start with some innocent questions for clarification.  The other stakeholder assumes you are against what they are trying to achieve and the adversarial dance begins.

Sadly!

A simple misinterpretation of intentions can derail a potential productive interaction which should have gold at the end of the rainbow.  Even clarifying intentions often won’t put it back on track.

Sadly this type of behavior occurs regularly in most organizations.  It is of course exacerbated by cultural bias, but it is not unusual to see the dance occur, regardless of culture.

To my amusement, often I observe  those who are actually in violent agreement (based on what they are saying) but appear to be just the opposite (i.e., violent disagreement).

Just Listen

The root cause of this type of adversarial discussions lies with  misunderstood intentions.  These stem from listening skills.  That is not just hearing the words but rather the message.

For me as I watch the head butting, or even when I am the object of head butting it never ceases to amaze how agreement is manipulated into disagreement.

Don’t Get Hooked

The way out of these situations is to ensure you are not “hooked” by the others.  That is often the intention of the other party.  They believe if they can just get the hook firmly embedded in your throat they can hall you in.

Unfortunately the result is usually dissatisfaction to all which is of course really unfortunate since the whole situation was actually on the brink of a great collaboration.

Ah, to behave like a human – we are just animals after all.

 

 

Random thoughts – keeping you on your toes

What would you Do?

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Yesterdays post was about two key measures used to identify leaders.  Intellectual skills and behaviour skills.  These two measures have been labled EQ and IQ.

In essence these measures are just predictors of how a person will behave.  That is, what would you do if…..?

How it works

For example if you saw an obnoxious drunk bother patrons in a public place you would:

  1. call security
  2. confront the drunk
  3. ignore the situation
  4. gather more data before deciding what to do
  5. leave

Persons with behaviour characteristics high in empathy or motivation would most likely take action 1 or 2.  Intellectually focused would take 4 or possibly 5 ( depending on the results of 4.  )

Those with average or low leadership tendencies probably go with the default.   Do nothing.

Many psychology experments have been conducted using tests to acertain IQ and EQ and then used scenarios to determine what the testee’s do.  In some cases rather than scenarios some of these studies used past behaviours.

Consistently, the behaviour you would expect intuitively based on the IQ and EQ measures  (  like the example above) was confirmed.

Think about it

A very powerful technique for improving your EQ  consists of walking yourself through significant scenarios you participated in over the last month and remembering how you behaved.

Were your objectives met.  Or if met was it efficient and pleasant?  What EQ characteristic behaviours could you have used for a better result.  Did others consider your actions kindly and effective?

Use the outcomes from these key experiences to drive improvement in the way you behave.  That is identifying what could be down better and what personal behaviours you need to change for that to become reality.

You can be a great leader, make it so.

Random thoughts – keeping you on your toes

Emotional Intelligence

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Today I got into a discussion with some colleagues about leadership behaviours.  The question arose what is more important for a leader, a high IQ (i.e., smart) or strong ability to interact with others (i.e., charismatic)

In his 1995 milestone book, American pyschologist Daniel Goleman proposed that while IQ probably represented the price of entry for great leaders(you needed at least some minimum IQ to succeed)  more important and a key determiner of success  was how you behaved.

He labled the measure of this ability to interract with others your emotional intelligence (EQ).  Goldman also developed a framework of five elements that can be measured to define your level of emotional intelligence.

An interesting side to this is the belief EQ can be developed and improved while many believe your IQ is what you were born with and cannot be developed.

Goldmans EI model has a great following in the by organizations around the world and has been adopted in various iterations by many companies.

Goldmans 5 Characteristics

Below are drastically  edited versions of Goldman’s 5 behavioural characteristics (for simplicity) taken from this website.  This just to give a flavour of what he considered behaviours that contributed to a high EQ..  For me, a high EQ equals a powerful and effective leader.

1) Self-Awareness – Self-aware people understand their emotions, and because of this, they don’t let their feelings rule them. They’re confident – because they trust their intuition and don’t let their emotions get out of control.  Many people believe that this self-awareness is the most important part of EI.

2) Self-Regulation – This is the ability to control emotions.  People who self-regulate typically don’t allow themselves to become too angry or jealous, and they don’t make impulsive, careless decisions.
3) Motivation – Motivated people are willing to defer immediate results for long-term success. They’re highly productive, love a challenge, and are very effective in whatever they do.
4) Empathy – This is the second-most important behaviour. Simply put, it is the ability to identify with and understand the wants, needs, and viewpoints of those around you.
5) Social Skills – Those with strong social skills are typically team players. Rather than focus on their own success first, they help others develop and shine.

Curious What Your EQ is?

There are numerous EQ test available on the internet that will provide you with an estimationof your EQ and an idea of areas you might to focus on to improve your EQ and so your leadership capability.

Random thoughts – keeping you on your toes

Personal Financial Management

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Having a financial plan ( that is a document of what is going to be done by whom and when relative to your finances) is a critical underpinning of your personal financial health. However, without validation, the plan looses a lot of value.

Annual Review

Personally I think a review as least annually is the minimum although some probably like to check how there are doing more often.  Less often provides to great a risk that important adjustments get missed and ultimately result in the plan no longer being achievable.

I do my reviews on a calendar year basis and have 2016’s currently underway – hence this post.

What is it?

Simply put the review should consist of four things:

  • Income – How much was it and where did it come from.    This could be on a before or after tax basis (if after tax you don’t need to track taxes as a separate expense item).
  • Expense – what did you spend your income on, the use of categories here to group expenses is pretty well mandatory so the document is not unwieldy.  It should have enough detail though to be enable meaningful analysis and decisions.
  • Income less Expense –  This is pretty important.  If you are spending more than your income some adjustment is likely needed.
  • Investment Income –  I do a more detailed separate breakdown on this income because of the risk and volatility associated with it.   The focus of this review is obviously realized and unrealized capital, interest and dividend incomes (or losses but I try to avoid those.)

For What time frame?

The longer period the data covers the better and this is really key for good retirement planning.  For me the data covers 20 years.

Now the question is, based on this data, are things proceeding as you planned?

That means focusing on questions like;

  • Are there unexpected increases in expenses?
  • Considering what stage your plan is at is the increase in net income or decrease as expected?
  • Is inflation occurring at expected levels (e.g., checking the average cost of property tax over time – assuming the base property is the same gives a sense of what percent it is creeping up – 20 years of data really help with this.)

And so on.  The same type of thought process can be applied to your investment portfolio.

And finally, figure out what you need to change, adjust the plan and you are good until next year.

Note:  Net worth analysis and change over time, future income forecasts, and expense forecasts, market and inflation analysis, security considerations (e.g., insurance) are all advanced attributes but this post is focusing on the basics.

 

Random thoughts – keeping you on your toes

Leaving your comfort zone

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Routine activities can provide you with a feeling of comfort.  By definition these are things you do regularly.  Overtime they become intuitive, there is little unknown and risk , doubt, stress levels are low.

Routine things are part of your comfort zone.  Knowledge, experience, and  skill levels are all high when you are in the zone. So why leave there?

Challenge Yourself

At the risk of being trite, life is meant to be lived to it fullest.  Staying in your comfort zone does not typically reflect living to the fullest. That is experiencing new things, embracing challenges and figuring it out.

Stay Balanced

This is not to suggest moving to an extreme behaviour and living on the edge.  There is the need for a balance between living in relative safety and stretching the envelope.

This balance is very personal and attached to you as a person.  For each of us, the amount of time spent in your comfort zone versus that spent bursting out of it  works best when it is the right mix that conforms to our personalities, value system and so on.

For Example

You may have worked for others as an employee for a long time, this is your comfort zone in the employment space.  You decide to change to self employed or become entrepreneurial and strike out on your own.

A balanced approach to this change could involve taking a part time job initially doing something you know well and are familiar to balance against the unfamiliar activities you are trying out.

 

Random thoughts – keeping you on your toes

Am I as good as I think I am?

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Asking if you are as good as you think you are, is not necessarily questioning your level of self-confidence, rather it could be philosophical (what is good, who am I, etc) or it could be part of a continuous self  awareness check.

Switch it Around

Am I only as good as other people think I am?  Of course this begs the question “What do other people think of me?”  That question can be hard to answer truly objectively.

I have been fortunate enough to have past employers pay for a confidential survey of myself, colleagues, subordinates and supervisors, on several occasions.

This feedback is fabulous for capturing what you think of your own interpersonal behaviour skills and what others think.  It is anonymous, so theoretically the input should be objective.

The results could reinforce what you think (e.g., I work well with others and they agree) or could be the opposite (e.g., others don’t think I work well with them).

Of course this kind of deedback can go beyond whether you work well with others but can include how confident you are percieved to be, honesty, ability to motivate and so on.

If you can organize it, I strongly recommend these feedback tools as a great way to find out how what you think about yourself maps to what others think.

Could someone else do better?

When you move on from a situation, role or assignment it is always interesting to consider if your sucessor did better than you?  That is , am I so good there is no one better.

It is probably comforting to believe this may be true, but don’t forget the old saying “Anyone can be replaced”.  It might be truer than you think.

Random thoughts – keeping you on your toes

Vocabulary Lesson

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My mother held a Bachelor in Arts from the University of Manitoba. She was an English major  and believed her children should become masters of a large vocabulary (among other things of course).

For her, and by association her children, a large vocabulary represented  a key underpinning for reading, writing, and verbal communication skills.

Of course reading itself  is a good way to build vocabulary.  Since I was ten I have read at least 60 books a year, often more.  As a result of my mothers encouragement I often find, in general discourse with others, I am able to use words they are not familiar with.

Who Cares

Todays post is definitely a bit self effacing, so might not strike broad empathy among my readership. It is however prompted by the fact I received an email the other day with a word I was not familiar with.

The word was antithetical, which means directly opposed or contrasted; mutually incompatible.  For example, “people whose religious beliefs are antithetical to mine”

The really cool thing about the English language is it’s specificity.  I would like to say there is a word for everything (probably a bit of an exageration).

This enhances the ability to use English to create a message with extreme clarity and power.  In the case of the note I received yesterday, once I understood the word, the simplicity and clarity of the statement was obvious.

Thanks Mom

So well I did not appreciate it growing up, I owe my Mom a vote of thanks for forcing long strange words on me day in and day out.  Imagine, instead of looking up the odd word occassionally I could be leaping to my dictionary over and over.

 

Random thoughts – keeping you on your toes

Leveraging your Financial Advisor or Broker

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I regularly recommend managing your financial plan and investments yourself if at all possible.  It is not a trivial effort but no one is as invested (pun intended) in your financial affairs like you are.

Whatever you do, the impact on your financial advisor/broker is irrelevant.  I mean it’s nice to make money for them as well as for yourself I guess, but really they are just a tool to help you.

Fess Up

I am a big proponent of do it yourself investing.  No one can do it better than me.  However, I must confess I am fortunate to have an equal partner when it comes to financial planning and investing (my wife).

Without this  partnership I probably would consider employing a professional to assist me.

Fortunately that is not the case.  The real nice thing is my wife and I complement each other beautifully.  While she plays the financial analyst/ broker role I am the feisty client.  For us this interplay is natural and really works.

Self Serve  Financial Mgmt

If you can manage your own finances the results are probably better than trusting another person.   It does require a lot of effort though and the optimal scenario is probably the kind of partnership my wife and have created.

We are fortunate in being able to share equally the effort while collaborating and playing off each other to get the best from our skills.   We also share equally in successes and failures.  No finger pointing here.