Do You Have Courage?

                                     
                              Greetings to you in the New Year!

As I talked last time, 2011 will bring some challenges and opportunities for governments, organizations, business and individuals. In the past we've talked about creating wealth. Today I want to talk about the courage it takes to handle money properly.

Like you, I get pretty tired of hearing politicians talk about what they are going to do, and then never doing it.

The words you will hear from both democrats and republicans for the New Year will be directed toward the enormous deficit our country is facing. They will make loud mouth claims saying we must reduce spending after they (the 111th congress) added to the national debt the largest amount of money ever. It's like saying we must lose weight after dedicating your self to eating a box of Twinkies every day for a year! I agree with what Senator Tom Coburn said last week. "The United States will suffer from apocalyptic pain if the nation does not curb its massive debt."

If you think Coburn's comment might be an over statement, look at other countries who couldn't or wouldn't have the courage to implement common sense economic policy. My friends in Greece live in a country that will never be the same economically. Even as I write this post there is bombing in Athens by anarchist who are adding to the despair from the countries financial melt down. Even in the U.K. students are tearing things apart because of the entitlement mentality that countries can't afford any longer. In the U.S. our politicians will make good common sesne statements, the problem is, they don't have the COURAGE to do anything about it. And if they don't acquire that courage quickly, we soon could be going down the same path as Greece, Spain, Portugal and others.

But before we criticize them too much, possibly many of us should look at our own financial situation and lack of courage and do something about our own personal and/or corporate balance sheets. The problem of living beyond our means is systemic. I don't want to be an alarmist, but if individuals and companies don't get serious about money management  we will be looking at a bleak financial future.

Look at the following points which have government, personal and organizational implications.

1. You just can't pay for everything or buy everything no matter how well meaning it might be. That's common sense, but we must have the courage NOT to spend. We must understand that some programs and habits MUST be eliminated. This may include meal programs for low income kids, social security benefits, your habits of eating out or providing benefits to employees you can't afford. Unions must come to grips with financial reality and give up their "I want mine regardless" attitudes.

2. A little adds up BIG time. Spending 5 bucks here, 3 dollars there ends up depleting your account quicker than you think. Some in my own family think I'm "tight" with money when it comes to spending but the fact is we are financially healthy (not rich) because of the courage and discipline NOT to spend those little amounts that we encounter each day. The same is true for governments and business. Washington D.C. doesn't even talk billions any more because they have piled up trillions of dollars on our debt with earmarks that, independently, may not look like much but in the whole it is an unsustainable habit and a budget killer.

3. Saving money is not the same as not spending money. In government we can not play games with this area of financial discipline. We must adopt the "just say NO" to seemly good deals and programs. In our personal lives, those after Christmas sales will kill ya! It's still money coming out of your account, so unless you just can't live with out it, don't spend it!

4. Pay your self first. Regardless of your age, make certain you put back 15% of your earnings into your 401, IRA, SEP account. You cannot depend on the government being there for you in the future. Social Security was never meant to be a retirement program to begin with. The new retirement age will probably be 75 yrs. old, if our government has the courage to do something about Social Security entitlement. This applies to business as well. I know of some good organizations who survived the recession because they were not cash poor.

5. Get out of debt. If you have debt hanging over your head now, put in place a plan to pay it off. Don't just say "I will work on getting out of debt.", write down the blueprint of when and how that's going to happen. Then discipline your self to do it. As for your government representatives, hold their feet to the fire this year!! Write them and call them regularly with your thoughts on financial issues. Watch their voting record on every bill and then work to get them out of office if they don't have the courage to make the tough decision to get us out of debt! No more talking, it's time for action. If we as voters do this collectively, we again can take our government back and make sure they work for us.It's time for courage to go along with common sense.

6. Educate your employees and family members about financial issues. This is a constant drum beat of mine. I'm forever blown away at how little people understand sound financial principles. Employees are at a loss to understand the importance of eliminating cost, how wealth is created and the free market system that has made our country the economic power it is. I continue to meet brilliant people who are financial morons. I believe every company should have REGULAR financial education and information available and communicated.

It's true, money won't make you happy. However, financial health will allow you freedom to be generous when it counts, and give you peace of mind which will allow you to work on the other areas of personal, business and government life. There is nothing wrong with having "stuff", but that stuff is a whole lot more fun when it's paid for.

In 2011, let's stop talking and let's have the courage to get our finical houses in order. It really is our future were talking about.

Looking Ahead at 2011

                             
Well, another year is almost in the books and we are looking at the prospects of Opportunities and Challenges in 2011.

How we deal with varied aspects of our lives and business will determine how successful we will be this time next year. When we look back one year from today and evaluate how we handled both the opportunities presented and how we dealt with the challenges we will probably be able to determine if we handled them, or circumstances and events handled us.

During my next several posts I'll list the opportunities, challenges and strategy for dealing with governments, markets, ethics and personal behavior issues. But today I want to briefly talk about financial considerations both personally and professionally.

Most of you have heard me talk about the two tracks necessary for financial health. 1.) Good money management i.e. saving, cost cutting, taking bold actions to eliminate waste, limit debit etc. 2.) The next track deals with developing revenue streams i.e. making money! This is where I want to camp for few minutes. I want to remind you of the difference between being a good money manager and "creating wealth."

Creating wealth seldom happens by drawing a pay check, asking for contributions, drawing unemployment, saving your money or any other action that allows you to tread water or "get by." Some of these actions may be necessary for the short term but often the short term fix becomes the strategy for corrective action.

We live in a world of entitlement. People commit illegal acts, riot, protest with the insistence of "you owe me." This runs deep in almost every aspect of business, labor, non-profits, churches, education and governments. The amazing thing is to hear how people have hypnotized themselves, through their rhetoric, to actually justify and believe in their entitlement spin.

Companies and individuals who create wealth are never satisfied with the status quo and are willing to take risks that may make them or break them, but are willing to take the chances in order to grow. With high risk comes the possibility of high rewards. What paralyzes people is that with high risk also comes the possibility of failure.

> My dad was a carpenter who lived on a dirt farm that produced very little. He was a good money manager and knew how to squeeze the life out of every dollar he ever had. However, he was just getting by. He did not experience financial health until he took the necessary steps to "create" wealth. Instead of being a carpenter working for an hourly wage, he started his own business building quality homes. He invested heavily into poultry production which turned his pitiful farm into a cash machine.

>  Sam Walton went from being a store manager drawing a monthly salary from a large corporation to opening his own store which ultimately evolved into the largest retail organization in the world.

> Rick Warren went from a preacher asking for money to giving away most of what he makes after writing a number #1 best selling (40 million copies) book. The "Purpose Driven Life" gave Warren both fortune and fame. But more than that it gave him a platform for his message.

> The technical world stands still when Steve Jobs announces his yearly "new product." Not satisfied with "getting by" or living on past success, Apple is still a tough competitor with loyal "fans"around the globe.

Some will attribute the above to luck. I believe you make your own luck which includes (but not limited to) talent, strategy, guts, Providence, tenacity, knowledge, wisdom and financial cognizance.

Not every person can start their own business, but every person can create wealth for themselves and for the companies they work for.

In organizations around the world we are lacking in financial knowledge and common sense. If we are going to do more than just survive, we must learn how to create wealth. As I work with organizations around the world, we will be doing just that. We must because I believe during this time of economic uncertainty, traveling down two different tracks must merge into ONE in order to overcome the challenges and take advantage of opportunities of 2011 which will position us to THRIVE, not just survive.

From us to you...Merry Christmas and Press On for a prosperous New Year!

Hypocrite?

                                         Hypocrite

What an interesting word. What an interesting behavior. Being Hypocritical ...what a destructive behavior.

Often you hear that word in religious context as people offer up a reason for not going to church. They will say "I'm not interested in religion because of the hypocrites in the church." Which in it's self is a ridiculous argument suggesting God will be OK with our behavior because of the poor behavior of others. Since God does not grade on the curve, I doubt that will hold water. But that's a subject for another time.

Today I want to talk about everyday leaders, companies and people who are hypocrites and the damage it manifests daily. Let's start with the common definition.


Hypocrite:
One who puts on a mask and feigns himself to be what he is not; from Greek hypokritēs actor

I will admit that personal experience in recent weeks has caused me to think a lot about hypocrites. I have watched seemingly good people become destructive because of their hypocritical behavior. And of course, as always, I turn inwardly to question my own behavior. We all stumble on occasion and it's easy to point fingers at others but it is more difficult to ask myself the honest question "am I pretending to be something I'm not?"

* Organizations and people should know who they are, not just what they do. And then, they should be checking and double checking their daily behaviors to determine if they have been true to what they claim.

* Having value statements and/or ethical principles communicated but not lived out is more destructive than having none at all.

* You can't pick and choose what you think is right or wrong. There are absolutes.

* A person can never really escape the consequences of deceitful behavior. A secret smoker, a person who tells little white lies, a closet drinker, shading the expense report, taking advantage of position and power, hurtful gossiping about others, being jealous or envious. All will be found out.

As a business coach and advisor to influence leaders, I am required (if I'm going to do my job right) to call out hypocritical behavior that I see. But my advice to others is only meaningful if I'm calling myself out daily on those behaviors which are not congruent with my professed values.

Now the question becomes, "What about you?" "What about your company?" Review what you stand for. What have you compromised on? Have you or your management team become "actors?" Are you Hypocrites with policy, procedures and relationships?

In his recent book, President G.W. Bush said "You may disagree with my policies, but I'm proud to say I did not compromise my principles." I hope in my business and professional life I can say the same.

Press on...



.