While many leaders fail and whine, the best recognize that they can learn a lot from others. Talking to employees, competitors, customers, or anyone else who may have an opinion; they never shy away from asking a lot of questions.
“How could we have known that would happen?”
Noticed recently how you’re hearing this question a lot more frequently?
More leaders, across a wide swath of industries and sectors, are pointing at recent news items to justify their inability to hit forecasts (which they seemed so confident about just 90 days earlier) when discussing their organization’s performance.
They note:- Fuel costs are skyrocketing and killing the airlines.- People want cars that get more miles per gallon - so the auto industry is suffering.- Food costs surprise everyone as corn is used less to eat and more to run cars.- Spending on infrastructure within most organizations is being cut back.- Downsizing is occurring everywhere.
“How could we have known that would happen?”
Well, to start, they could have asked.
The best leaders ask a lot of questions. They are constantly trying to learn how to do things better. And they know that other people have information and insight that they don’t. So they ask all sorts of people questions to gain perspective and real-world feedback. And with that newfound information, they ask others what their thoughts are.
Consequently, the best leaders aren’t the ones you see at a press conference justifying their recent crappy performance as being “beyond their control,” or making statements like, “nobody anticipated that the price of fuel would go up as much as it has.
What bull!
A couple of years ago, the leaders at Southwest Airlines saw that one coming. So they started investing in hedging funds for their price of fuel. Now, they pay about $55 for fuel while the big airlines are paying $135 and scrambling to survive. If you’ve ever had anything to do with Southwest - as a customer, a business partner, or provider - you know that they have a pretty good grasp of what their customers think. They have managers who work “with the troops.” And those managers - all the way up the chain of command - ask a lot of questions to everyone they meet. And as a result, they don’t get “surprised.” They make plans according to what they hear from those most in-touch. They succeed when others fail.
And, by the way, couldn’t you or your spouse have told the guys making trucks like the Titan, Expedition, Suburban, Tundra, Hummer, etc., was not a sound long range idea because probably the price of gas would soon rise? Really, who didn’t know that? Only, it seems, those auto executives who couldn’t resist the idea that a truck provided about $5,000 more profit per unit than a small car.So they practiced that time-honored approach which I call “management by crossed fingers,” aka: “Let’s hope that nothing happens.
In addition to corporate types, I also coach business owners or managers. When looking at their strategy and forecasts, I always ask, “Now, what’s the worst thing that can happen? If something occurs that will blow these planning premises?” Usually, this question causes a good dialog about what could happen. That then takes us further to discuss what contingency plans are needed to ensure they would survive and recover. Did anyone ask that question at CountryWide Mortgage, or Citibank before they made all those loans for homes that seemed to only go up in price?Do you ask lots of questions? I mean at least five per day?
If not, ask yourself why?
It may be because you don’t want to look stupid. That’s your ego preventing you from doing what’s right. And, as you know already, egos cause a lot of problems in our personal life and in our career success. Don’t let your ego inadvertently cause you to become even stupider.
The best leaders, if you watch them closely, seem to be “ego-less”.” The best leaders have no fear of looking stupid, just a genuine concern about failing. They know they will improve their odds of success by asking questions.
Questions 101: Some leaders tell me that they don’t know what questions to ask in many situations because they aren’t close enough to the work done by that person or her team. So here are a few easy ones to toss out when you find yourself in those situations.
Here are some question guaranteed to get some feedback:
* What are you thinking about when you wake up at 3AM?
* What’s the biggest problem here you see right now?
* What can I do to make it easier for you (or your team) to get the job done?
* If you had one wish to make it better around here, what would it be?
* Do you have everything you need to succeed?
* What do you see on the horizon that could be bad for us?
* What’s the most important thing you (or your team) have got going on right now?
* What roadblocks are holding you (or your team) from rocketing ahead?
Be prepared to hear things that may make you uncomfortable. Don’t make any promises you can’t deliver. But let people see that you’re open to any ideas. This approach will make you and your organization better. And, as a side benefit, it will save you from becoming one of those whiners pleading, “How could we have known that would happen?”
john
Leadership Coach
John M. McKee is the founder and CEO of BusinessSuccessCoach.net, an international consulting and coaching practice with subscribers in 43 countries. One of the founding senior executives of DIRECTV, his hands-on experience includes leading billion dollar organizations and launching start-ups in both the U.S. and Canada. The author of two published books, he is frequently seen providing advice on TV, in magazines, and newspapers. Please visit his site!
Wednesday, October 14, 2009
Wednesday, October 7, 2009
Women, Kids & Money
A concerted effort is being made to help Australian women better understand & manage financial risk to address the demonstrated lack of condfidence this group has when it comes to money matters.
The Financial Literacy Foundation's "Women Understanding Money" report revealed women has a real 'switch off' factor when it comes to finance. The report revealed 52% of Australian women find dealing with money stressful and overwhelming and 25% of women have absolutely no savings for retirement. of the women who do invest, less than 5% look at the company's background information.
And this is happening at a time when women are increasing their independence: for the first time since the end of World War One, there are more single women in Australia than married women.
Children are also being encouraged to develop their money skills.
Banks, community groups and other have developed a number of learning activities to help kids obtain a realistic understanding of money. For example, Citigroup in working with the YWCA to develop a financial literacy program for primary school children, while independent company Kids Money has recently paired up with Bank West to provide seminars and educational resources.
The Financial Literacy Foundation was established by the Government in 2005 to give all Australians the opportunity to increase their financial knowledge and better manage their money. It works in partnership with government, industry and community organisations to advance financial literacy.
The Financial Literacy Foundation's "Women Understanding Money" report revealed women has a real 'switch off' factor when it comes to finance. The report revealed 52% of Australian women find dealing with money stressful and overwhelming and 25% of women have absolutely no savings for retirement. of the women who do invest, less than 5% look at the company's background information.
And this is happening at a time when women are increasing their independence: for the first time since the end of World War One, there are more single women in Australia than married women.
Children are also being encouraged to develop their money skills.
Banks, community groups and other have developed a number of learning activities to help kids obtain a realistic understanding of money. For example, Citigroup in working with the YWCA to develop a financial literacy program for primary school children, while independent company Kids Money has recently paired up with Bank West to provide seminars and educational resources.
The Financial Literacy Foundation was established by the Government in 2005 to give all Australians the opportunity to increase their financial knowledge and better manage their money. It works in partnership with government, industry and community organisations to advance financial literacy.
Thursday, October 1, 2009
Investor Warnings!!
If the investment you are considering sounds too good to be true it probably is! Below is a link to the Australian Taxation Office's ''Investor warnings'' page.
http://www.ato.gov.au/atp/content.asp?doc=/content/19458.htm
Simplified tax system essentials pathway page
| For the 2007-08 and later income years the simplified tax system (STS) no longer operates and has been replaced by the small business entity provisions. For more information, visit www.ato.gov.au/SBconcessions | ||
| |
Below is a link to the Australian Taxation Office's ''Simplified tax system essentials'' pathway page.
Division 7A - answers to frequently asked questions
The questions and answers set out are a guide only and are not a substitute for the law. All references to legislation are to the Income Tax Assessment Act 1936 (ITAA 1936) unless otherwise specified. Please find the following link to the Australian Taxation Office's ''Division 7A - answers to frequently asked questions'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/32059.htm
Home-based business
If you operate a small business (not a non-profit organisation) as a sole trader, partnership, company or trust at or from your home, you can use this guide to help you: claim home-based business expenses; understand how capital gains tax can apply to you; find out where to go for more information.
Below is a link to the Australian Taxation Office's ''Home-based business'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/43191.htm
Tax Rates, Calculators & Tools
Below is a link to the Australian Taxation Office's ''Rates, calculators and tools'' pathway page.
http://www.ato.gov.au/businesses/pathway.asp?pc=001/003/019&mfp=001/003&mnu=601
Business Deductions Essentials!
Deductions for costs incurred in running your business are allowable, provided the expenses are not of a private, domestic or capital nature. Below is a link to the Australian Taxation Office's ''Business deductions essentials'' pathway page.
http://www.ato.gov.au/businesses/pathway.asp?pc=001/003/011&mfp=001/003&mnu=573
Key lodgment dates for businesses
Below is a link to the Australian Taxation Office's ''Key lodgment dates for businesses'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/34949.htm
Doing business overseas - an overview
This overview explains how income from foreign business activities is treated. If you are also earning foreign income from passive investments (such as securities and rental properties), interest or royalties, refer to Investing overseas - overview.
Below is a link to the Australian Taxation Office's ''Doing business overseas - overview'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/65957.htm
Online version of the Tax Withheld Calculator
The current version of the Tax withheld calculator is Version 4.10 – effective from 1 July 2009.
Below is a link to the Australian Taxation Office's ''Online version of the Tax withheld calculator'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/Content/33277.htm
More Record keeping Essentials for Businesses
Start with the 'Basics' to find out which issues affect your business or follow the links to specific topics. Below is a link to the Australian Taxation Office's ''Record keeping essentials'' pathway page.
http://www.ato.gov.au/businesses/pathway.asp?pc=001/003/003&mfp=001/003&mnu=43662
Building and Construction Essentials
Are You in the Charter Boat Industry?
This information provides detail on the ATO position relevant to boat owners who enter into arrangements to provide a boat to a charter operator, or another party, for the charter operator to hire, lease or charter to others.
Below is a link to the Australian Taxation Office's ''Charter boat industry'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/35337.htm
How to Report Tax Evasion...
We are committed to targeting tax evasion and you can help us to make sure everyone pays their fair share of tax. If you have information about fraudulent or possible criminal activity, phone us on 1800 060 062 (between 8.00am and 6.00pm weekdays), or make an online report now. Your information could help make the system fairer for everybody.
Below is a link to the Australian Taxation Office's ''How to report tax evasion'' pathway page.
Imputation Essentials
Dividend imputation has been a major feature of the Australian taxation system since 1987. Entities that are taxed separately from their members are called corporate tax entities, and they are taxed at the company tax rate, which is currently 30%.
Below is a link to the Australian Taxation Office's ''Imputation essentials'' pathway page.
http://www.ato.gov.au/businesses/pathway.asp?pc=001/003/066&mfp=001/003&mnu=10007
Do You Have Difficulty in Paying Your Tax Debt (att: business clients)
If you cannot pay your tax debt on time, please contact us immediately on 13 11 42 to discuss your circumstances.
When you speak to us about payment of your outstanding tax debt or remission of general interest charge (GIC), we are committed to: understanding your situation and individual circumstances; being fair and equitable in the application of the law, processes and policy; considering your case on its merits and assisting you to move on, and assisting you where possible if you are attempting to engage with the Tax Office and do the right thing.
Below is a link to the Australian Taxation Office's ''Difficulty in paying your tax debt (business clients)'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/23130.htm
Changes in Your Business Essentials
Employer Essentials!
FAQs: Activity Statements
Below is a link to the Australian Taxation Office's ''FAQs: activity statements'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/17420.htm
Record Keeping Essentials
Start with the 'Basics' to find out which issues affect your business or follow the links to specific topic
Below is a link to the Australian Taxation Office's ''Record keeping essentials'' pathway page.
http://www.ato.gov.au/businesses/pathway.asp?pc=001/003/003&mfp=001/003&mnu=867
Tax Basics for Non-Profit Organisations
Below is a link to the Australian Taxation Office's ''Tax basics for non-profit organisations'' page.
http://www.ato.gov.au/nonprofit/content.asp?doc=/content/33609.htm
Tax basics for Small Business
Below is a link to the Australian Taxation Office's ''Tax basics for small business'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/25193.htm
This publication, Tax Basics for Small Business (NAT 1908), is also available as a PDF. To download immediately, click on the following link:
http://www.ato.gov.au/download.asp?file=/content/downloads/BUS25193n1908_06_09.pdf
Tax Basics - Introductory Sessions for Small Business
Below is a link to the Australian Taxation Office's ''Introductory sessions for small business'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/6750.htm
Checklist for people starting a new business
Below is a link to the Australian Taxation Office's ''Checklist for people starting a new business'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/69534.htm
Individual Income Tax Rates
Below is a link to the Australian Taxation Office's ''Individual income tax rates'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm
Hey! Where's My Refund?
Below is a link to the Australian Taxation Office's ''Where's my refund?'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/1440.htm
Payment and Refund Essentials
Below is a link to the Australian Taxation Office's ''Payment and refund essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/009
Deductions Essentials!
Below is a link to the Australian Taxation Office's ''Deductions essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/013
How to Pay Your ATO Account
Below is a link to the Australian Taxation Office's ''How to pay'' page.
http://www.ato.gov.au/businesses/content.asp?doc=/content/33696.htm
Tax Return Essentials!
Below is a link to the Australian Taxation Office's ''Tax return essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/006
Failure to lodge on time (FTL) penalty frequently asked questions
Below is a link to the Australian Taxation Office's ''Failure to lodge on time (FTL) penalty frequently asked questions'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/23605.htm
Seniors and Retirees Essentials
Below is a link to the Australian Taxation Office's ''Seniors and Retirees Essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/025&mfp=001/002&mnu=43500
Making Tax Deductible Donations
Below is a link to the Australian Taxation Office's ''Making tax deductible donations'' page.
http://www.ato.gov.au/nonprofit/content.asp?doc=/content/8568.htm
FW: Personal Tax Essentials Pathway Page
Below is a link to the Australian Taxation Office's ''Personal Tax essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/031&mfp=001/002&mnu=1180
FW: When Do We Pay Taxes?
Below is a link to the Australian Taxation Office's ''When do we pay taxes?'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/33808.htm
Keeping Your Tax Records
Below is a link to the Australian Taxation Office's ''Keeping your tax records'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/30327.htm
FW: Deductions Essentials
Below is a link to the Australian Taxation Office's ''Deductions essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/013&mfp=001/002&mnu=42701
FW: Change Job Status Essentials
Below is a link to the updated Australian Taxation Office's ''Change job status essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/037&mfp=001/002&mnu=43232
Did You Study During The Year?
Below is a link to the Australian Taxation Office's ''Study and Claim'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/00172086.htm
Family Tax Benefit (FTB) - New Changes to Claiming FTB
Below is a link to the Australian Taxation Office's ''Family tax benefit (FTB) - changes to claiming FTB'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/00180055.htm
What is the Baby Bonus?
Below is a link to the recently updated Australian Taxation Office's ''What is the baby bonus?'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/33906.htm
Change Job Status Essentials
Below is a link to the updated Australian Taxation Office's ''Change job status essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/037&mfp=001/002&mnu=43232
Deductions Essentials
Below is a link to the Australian Taxation Office's ''Deductions essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/013&mfp=001/002&mnu=42701
Keeping Your Tax Records
Below is a link to the Australian Taxation Office's ''Keeping your tax records'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/30327.htm
When Do We Pay Taxes?
Below is a link to the Australian Taxation Office's ''When do we pay taxes?'' page.
http://www.ato.gov.au/individuals/content.asp?doc=/content/33808.htm
Personal Tax Essentials Pathway Page
Below is a link to the Australian Taxation Office's ''Personal Tax essentials'' pathway page.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/031&mfp=001/002&mnu=1180
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