iPhone "Blowback".

Why does everyone hate the iPhone all of a sudden? I have some ideas why:

1. The iPhone CHANGED THE GAME. People don't carry their laptops as much as they used to. It also forced all the other companies to get their butt in gear to compete. Think about it — most smartphones before the iPhone sucked.
2. The iPhone is HUGE. I go to airports and see EVERYONE using the iPhone for movies, music, business, calls, etc.
3. The Google Droid is coming out. Congratulations! I am so happy there is a valued contender to the iPhone. The winner will be the consumer when competition rears its ugly head.
4. It's the natural course of media popularity. For 2+ years, the iPhone has been the darling of all things media. Now it is time for them to drive it into the ground. Makes a good story and people buy papers/watch the news. Media today is not just fickle, it's sometimes FALSE.
5. The Tech World has always hated the iPhone. First, they picked at it because it wasn't based on Windows or Linux (techie's faves). Then they attacked it because it is a closed system and they welcome the Droid because it is an open system. Just wait - when viruses and hidden apps begin to profulgate on these open systems, they will relish in the motherload of security apps for viruses. How would you love to have Symantec/McAfee virus checker on your PHONE?

In the end, there are a lot of players with lots of hidden agendas out there. My experience? Don't ever go by what they are saying. Ask a user or play with the technology yourself — that's the best way to make an informed decision.

Sunday Funnies.

Take A Vacation From Your Problems.

The great psychologist Dr. Leo Marvin gave his patient Bob Wiley some sage advice (on a prescription pad) in the movie: What About Bob — "Take a vacation from your problems, Bob." You should too. With the economy, unemployment, increased work pressures, etc., it's hard to focus - it's hard to relax - it's hard to think and act strategically.

In times like these, we tend to think short-term and tactically. Not long-term and strategically.

In times like these, companies don't have a real handle on what's going on - so all the 'balls' are in the air right now. The smart executives are the ones who reach out and catch those balls, not hide under their cubicle desk until things get better.

In times like these, smart executives reach out to key companies and talk to influential movers within that company. They make their future — they engage their peers in the industry — and get that new job or position. I call it 'golfing without clubs'.

But most executives don't do that. They get a 'bad economy' inferiority complex. They feel that they aren't worthy.

Unemployed executives feel less empowered. Why? They are no different than executives who have jobs. They just have more time.

Employed executives are running scared. They are afraid if they stand out and do anything, they will be next on the chopping block.

Well I say - take a vacation from the bad economy. Take a vacation from unemployment. Change your mindset — click that switch that says that you're unemployed and start acting like you have a job. Go out and make appointments with key executives in companies just to talk about the industry. Don't ask for a job - you are there to have a conversation — to connect — to make a new friend. Try to figure out what you can do for THEM.

If you are employed, do the same thing. Start having lunch with key executives inside (and outside) your company. Have a conversation — connect — make a new friend.

You'll find that you will surf these rough seas and come out on top. If you're unemployed, you'll get that dream job. If you are employed, you'll expand your connections and open up areas you never even knew existed. Trust me — it works.

Why Most Executives Experience A "Crisis of Confidence".

Many of my clients have been struggling with what I call a "crisis of confidence" — where their inner guide and strong self-esteem are taking big hits during this downturn in the economy. Do you find yourself thinking this during your workday?

"My boss wants to have a morning meeting . . . he's going to fire me . . . I'm going to lose my job . . . I will be out on the street by Christmas."

"Even though we are posting good numbers, the board is never satisfied. Lately, they never warm to any of my accomplishments or ideas. I am on my way out."

"Every day I lose customers . . . and it's seems that my current ones are not purchasing as much as they did last year."

"I can't find a job . . . I don't know where to look . . . we are going to be out on the street by Christmas."

If you do, read below.

In business, there are ups and downs.

FACT #1: The ups are not as 'up' as we think and the downs are not as 'down' as we perceive. FACT #2: When we feel that we have no recourse or ability to affect the outcome, we actually do. FACT #3: All is not lost, in reality, there are many options open to you.

You just don't see them clearly. The problem is that we let the story overcome reality. Why?

Stories are fun. Stories are interesting and easy to remember. Stories are fun to develop, add characters, and grow as time goes on.

Reality is scary. It is fact-based and hard to remember. It sometimes hits you square in the face and that isn't a pleasant experience.

Example — one story (from a current client): "If I call that executive out of the blue, he is extremely busy on a project, will get on the phone and either blow me off or yell at me for wasting his time."

Same Example — an alternate story (that I made up for the same client): "When I call that executive out of the blue, he will listen to my interest in his company, and make an appointment to see me in the next week."

Both are stories — which one are you telling yourself today? Probably the first one. But you will never know if your story will become reality unless you act on it. And that's the paradox — the story prohibits you from acting on it. So I say — stop making up stories and take ACTION.

Just do it. Try it. Make that call. See what happens.

Look at the facts first and banish the story. Logically look at what needs to get done and DO IT.

What does it mean for you? That's easy — you get out of story-land and actually take positive steps to change your situation. What's the worst that can happen? You get fired. But you would probably get fired anyway for doing NOTHING.

Let's Get Rid Of Airline Service & Car Audio.

Two things I've experienced this week are airline food/service and car audio. You know what? They have to change. Let me tackle Airline Food/Service first. I just flew to Reno, Nevada to run a series of workshops for a very famous retail company. I flew first class both ways — so I was quite comfortable. In retrospect, here's my opinion — many things need to change on most continental (within the US) flights:

1. Get rid of the food & drink service. This is a hold-back from the 1940's - being 'served' in your seat. Get your own food and drink in the terminal and bring it on-board or eat before you get on the flight. Why? The food is usually bad and the service is clumsy in close quarters. I don't need a drink either - no liquor. If you can't hold out drinking liquor for a few hours, you have a problem.
2. Get rid of flight attendants. Not all of them — keep one for each flight to handle emergencies and do garbage clean-up service. Think of other forms of public transportation - buses, trains, etc. — they usually only have one driver or conductor. Why do planes need a retinue of players to make the experience that much more memorable?
3. Give me room to work/read. Even in first class, when someone reclines their seat in front of me, I can't use my laptop effectively. I almost never use the recline feature - so I would eliminate it. I can sleep and relax just fine in my seat. Also, current legroom on planes is adequate (I'm 5'11") - don't know why so many people complain.
4. Give me an outlet to plug in my stuff. I don't want to buy an adapter that might not work on all flights or short out my laptop/iPhone. I want a PLUG until laptop/iPhone batteries last for days while watching movies/doing work.
5. Give me wireless connectivity for free & let me make phone calls. I understand the security issues — but I want to make phone calls from my phone and not pay college tuition to make one using the plane's phone service.
6. Ban all carry-ons. Except for briefcases that hold laptops (it should fit under the seat in front of you). Many of you might disagree — but I am getting sick and tired of the amount and size of luggage that people bring on. In addition, if you can't lift it over your head to stow it — it's should be checked. We would cut de-planing time in half if we banned all carry-ons. We can then eliminate the overhead compartments (that I hit my head on EVERY time I stand!).
7. Give me a second armrest between seats. Be honest, you don't like touching strangers (unless you're one of those types of people) - so why do they force us to share armrests? Give us a little more space and two armrests. Thank you.

My Car Audio rant is more concise. I spend a lot of time in my car (2003 Honda Accord EX) traveling to the office, speaking engagements, and client pitches. I have an iPhone and listen to music and podcasts (Adam Carolla & This American Life) exclusively. Also I use the phone too - but I try not to - so I can focus on my driving. Get rid of the sound system. Really.

1. I don't need a radio. AM/FM is not dying — it's dead. All the info I get from my radio I can get on my iPhone. Weather, traffic, school closings, etc. - all on my iPhone. I know - it's audio and I should concentrate on driving. So check it before you leave or pull over. It's that simple. But getting back to AM/FM — it sucks. The announcers/personalities are awful — they are from another generation. And even if they are good — there are 45 minutes of commercials for every hour of talk. Put radio out of its misery.
2. I don't need a CD Player/Changer. With my iPhone, I have my entire music collection (for the moment) in my hand. Not only do they break down frequently (and are expensive to repair), every CD that ever hit my car becomes unplayable because of scratches and sun damage (I have kids).
3. Just give me an basic amplifier with speakers (and a microphone). And a connector with a small display on the dash for info. I can then plug my iPhone in and get EXACTLY what I want to hear — for a lot less money. Don't get into the PalmPre/Android/Zune argument - until they hold a 30-70% share of the market (like the iPhone/iPod) — go away.

I know that new cars have this ability - but they are still installing radios with CD players. I also know that I can have my current car set up with a connection — but it will cost a hundreds of dollars to install.

Again, this is MY opinion. But if you disagree, think about it a bit — some of the things I say should have happened years ago. But let me know in the comments section.

Have a GREAT FRIDAY!

Desperate Times Do Not Call for Desperate Measures.

As a small business owner, you will probably lose some business during the downturn, despite your best efforts, as client companies cut their budgets, shift strategy, or, sometimes, go away altogether. By Julia Rogers at Open Small Business.

The economic downturn has made client and investor retention trickier than ever. Business owners have to do a lot more to compel investors and clients to make long-term commitments and agree that investing in their services or products are essential. According to SMSmallBiz.com and the Wall Street Journal, a lot of businesses are focusing on new strategies – like diversification and re-envisioning current skills or products – that will help them reach new markets and keep the attention of existing clients.

Bernard Nneji, president of Sigma Works Group, a process-improvement agency, suggests a variety of reasons clients and investors say they have lost interest in a small business: the client contact has changed and decides to “fire” the business; budgets and timelines are no longer working for the client; the small business’ strategies and execution of strategies cease to be in line with the client’s mission or the client has outgrown the small business and needs some bigger, fresher ideas. Ultimately, losing clients or investors most often comes down to a basic relationship-building problem –business owners’ inability to identify their clients’ and investors’ real needs from the beginning and a failure to satisfy them.

Regardless of why small businesses lose clients or why interest wanes among their client or investor base, they must focus on building relationships, and there are ways to maintain solid relationships with your best clients and set the precedent for eliciting long-term commitments from new ones.

The truth is, in any economy, chances are, if a small business finds itself with a lot of clients that don’t want to make long-term commitments or leave after one project, it’s often the small business’ problem … not the clients’! The following tips can help you maintain strong relationships with small business clients and investors as you weather the recession.

Know what the sales cycle is and follow a process for bringing your clients through it. Many business owners fail to recognize that the sales cycle is a tangible, consistent process that must be followed with each and every prospect, customer and client. Basically, the sales cycle is the time it takes for a qualified prospect – someone who genuinely needs your products or services and is willing and able to invest in them – to close. The goal is to shorten the sales cycle for each client and increase their trust in you enough to sign on the dotted line. This will make it more efficient to bring in clients. According to Jeff Thull at Inc.com, a key to shortening the sales cycle is bringing clarity to your clients so they are certain you are the best solution to their problems. Figure out what compels your prospective clients and investors – and what ails them – so you can create a sales pitch and a communication style that will appeal to them and keep them interested.

Make real plans to communicate. Many small business owners lose momentum during a sale because they stop communicating with their prospects and investors … or their prospects and investors stop communicating with them. Regardless of which party drops the ball, once this happens, the sale will not close. As a small business owner, you have to take responsibility for communicating with your prospects and clients at all points of the sales cycle with diligent, relevant, planned follow-up techniques … without being a pest. Communication is at the center of any long-term business relationship. According to Denise O’Berry, a resident small business expert at AllBusiness.com, strong relationships – both those within your own company and those with others that are potential and existing clients and investors – will be the best foundation for your business.

Make sure relationships are always mutually beneficial. Facing difficult, desperate economic times and rushing towards a quick sale, many business owners fail to highlight the term “mutually beneficial” as they are proposing agreements and contracts to current and new clients and investors and building relationships. Relationships with clients especially need to take you beyond short-term solutions and center on long-term plans that help these clients better understand where their businesses are going and also help you plan your own future. Take the opportunity to show your clients that you care about their needs as much as you care about your own. Illustrate how signing a long-term agreement with you can bring clients and investors specific benefits, address the long-term challenges they face and add real value. All relationships you build should be built around benefits that keep you and your clients and investors happy and prosperous.

In order to survive through the recession, business owners have to take control of their own businesses and stick to a very solid plan. They need to focus on building solid relationships and staying strong with existing customers and clients.

There's A Talent War & The Ceasefire Is Over.

With so many companies focused on simple survival during the downturn, with so much job loss and anxiety among those who survived, it was easy to forget about the war for top talent. But the downturn was just a temporary truce; the battle is about to erupt again in full force. And ironically the companies are the most at risk of losing their best leaders are ones that responded most vigorously (but often misguidedly) during the recession. By Michael Watkins at Harvard Business Review.

Why? Because there is tremendous pent-up demand for new opportunities and advancement among high-potential leaders. According to a recent study just 10% of high-potential leaders lost their jobs during the recession (with many quickly securing new opportunities). But fewer than usual received promotions or moved to new companies. So at the first sign that the job market is heating up, many will be dusting off their resumes and seeking greener pastures.

Companies that did a clumsy job of managing cost-cutting and restructuring during the downturn are particularly at risk of losing their best talent as conditions improve. Given plummeting revenues and the need to get costs under control, many firms rightly went into crisis mode. But the way they went about making the reductions varied greatly. For some, it was a process akin to taking a meat cleaver to the organization, with rapid, often indiscriminate cuts, and the attitude that virtually anything could be demanded of the survivors (longer hours, reduced salaries) because things were so dire.

These same survivors, especially the most talented of them, understandably feel absolutely no loyalty to their current employers; they will jump ship the instant they feel it's safe to do so. In fact it's a wonderful time for strong companies to consolidate their positions and accelerate out of the downturn by cherry-picking the very best talent out of competitors who have (probably irreparably) damaged their corporate cultures. Some attention to effective on-boarding is also warranted as it will help you to retain the talent you hire.

If you are leading a company that fell into this trap, what can you do? If you aren't already highly focused on how you will retain your best talent in the next couple of years, you should be. In part, this means launching immediate efforts to rebuild the culture and restore trust. This may, unfortunately, require that you bring new top leadership that hasn't been tainted by what was done while the business was in survival mode. Beyond that, you should be looking hard for any sign that the job market is heating up and anticipate what you need to do to rapidly adjust compensation and benefits. Above all, you should have a clear view about who your top talent is, be communicating actively with them about their potential, and charting attractive pathways for them within your organization. And you should be doing these things now, because if you wait six months, it most likely will be too late.

What about companies that did a good job of managing talent during the recession? Are they in the clear? Well yes and no. One very fine company that I work with, a Fortune 100 firm, is a case in point. It did virtually all the right things during the downturn by moving quickly but deftly to reduce costs. Executives took the lead in pay cuts, job losses were managed through attrition to the greatest extent possible and then via merit. Alternatives were offered to displaced workers where possible. Above all, the company did a wonderful job of communicating through the whole organization why it needed to do what it was doing. And it continued to invest scarce resources in the development of its best leaders despite enormous pressure not to do so. The net result has been minimal damage to a people-focused culture, and the company is beautifully positioned to accelerate out of the recession.

So the good news is that this company's high-potential leaders harbor strong loyalty and are inclined to stay. The bad news for the company, and others like it, is that they will be very attractive recruiting grounds for firms that didn't do such a good job during the dark times. And the desperate need for those firms to recruit leaders to replace the ones they've lost — or are about to lose — is going to rapidly bid up compensation and benefits. As is usually the case when it comes to talent, no good deed goes unpunished.

Michael Watkins is the author of, most recently, Your Next Move.

The Problem With Cable News Thinking.

Not only the networks of all political persuasions that come to mind, but the mindset they represent... By Seth Godin (my hero) at Seth's Blog.

When I was growing up, Eyewitness News always found a house on fire in South Buffalo. "Tonight's top story," Irv Weinstein would intone, "...a fire in South Buffalo." Every single night. If you watched the news from out of town, you were sure that the city must have completely burned to the ground.

Cable news thinking has nothing to do with fires or with politics. Instead, it amplifies the worst elements of emotional reaction:

• Focus on the urgent instead of the important.
• Vivid emotions and the visuals that go with them as a selector for what's important.
• Emphasis on noise over thoughtful analysis.
• Unwillingness to reverse course and change one's mind.
• Xenophobic and jingoistic reactions (fear of outsiders).
• Defense of the status quo encouraged by an audience self-selected to be uniform.
• Things become important merely because others have decided they are important.
• Top down messaging encourages an echo chamber (agree with this edict or change the channel).
• Ill-informed about history and this particular issue.
• Confusing opinion with the truth.
• Revising facts to fit a point of view.
• Unwillingness to review past mistakes in light of history and use those to do better next time.

If I wanted to hobble an organization or even a country, I'd wish these twelve traits on them. I wonder if this sounds like the last board meeting you went to...

Have More Fun.

Great viral videos are hard to come by, but Volkswagen appears to have hit the bullseye. Their new campaign “The Fun Theory” is a series of experiments, captured on video, to find out if making the world more fun can improve people’s behavior. This video, Piano Stairs, has achieved over 1 million views on YouTube – I can’t count how many times friends have shared it this week. Among the experiments: does turning a set of subway stairs into a real-life piano encourage people to use them (answer: yes, 66% more). Another experiment asks whether making a trash can sound like a 50ft-deep well will make people pick up their trash. An upcoming experiment, meanwhile, will turn a bottle recycling center into an arcade game.

The brand placement is as subtle as it could possibly be: a simple VW logo dropped in at the end. And yet the content carries that logo all around the web, as tens of thousands of people pass around the video, along with their positive associations for the VW brand. Isn’t that the definition of a perfect brand campaign?

The Kinds of Employees You Want to Hire.

Those who are innately confident and self-directed routinely outperform co-workers, regardless of their backgrounds. By Nick Tasler at BusinessWeek.

There are two kinds of employees. Some believe they can make things happen, and the others believe that things happen to them. The first group believes that the outcome of their life and career is more or less in their own hands, and they wouldn't have it any other way. The other group takes more of a Forrest Gump approach: They sit around and wait for a bus to take them somewhere. This distinguishing feature is captured by something called a "core self-evaluation." After more than a decade of research, psychologist Tim Judge has discovered that virtually all superstar employees—from rainmakers in the field to line workers on the floor all the way to big guns in the boardroom—have one thing in common: a high core self-evaluation. Judge describes core self-evaulation as "a person's fundamental bottom line evaluation of their abilities."

Judge and his colleagues have shown overwhelmingly that employees who feel like they control the events in their lives more than events control them and generally believe that they can make things turn out in their favor end up doing better on nearly every important measure of work performance. They sell more than other employees do. They give better customer service. They adjust better to foreign assignments. They are more motivated. They bring in an average of 50% to 150% more annual income than people who feel less control over the fate of their careers. Not surprisingly, these employees also like their jobs a lot more than the Gumps do.

Better Performers In Good Times And Bad In one study, Judge and his team tracked the progress of more than 12,000 people from their teenage years to middle age. He found that core self-evaluations predicted who did and didn't capitalize on the advantages life dealt them. With only a bleak view of their capacity to handle life's challenges and opportunities, even the brightest kids born to executives and engineers failed to reach as high an annual income as their less fortunate classmates.

By contrast, the supremely confident sons and daughters of roofers and plumbers who had only mediocre SAT scores and below average grades earned a 30%-60% higher income than the smart kids with dreary views of their abilities. And those kids with all the advantages of intelligence and pedigree plus a firm belief in their competence earned three times as much money as their otherwise equally blessed peers.

It seems that the difference between the successful and the unsuccessful employees has as much to do with an employee's beliefs about her ability as the reality of that ability. Considering that this difference is based as much on illusion as on reality, you might think the employee's performance would take a serious nosedive under challenging circumstances.

After all, if you think you're special, what happens when your superior or your board tells you about the areas in which you're falling short? Worse yet, what happens when the self-described superstar finds himself laid off or responsible for a division with tanking revenues? In other words, what happens when people who believe they are capable of controlling the world find themselves in an economy that is out of control? It turns out that this is when the true stars shine. Tough times weed out both those with low self-evaluations and those poseurs who only pretend to have a high self-evaluation—the narcissists. Judge finds that only about one in five people with a high core self-evaluation also scores high on measures of narcissism. That's probably why researchers continually find that those with a high self-evaluation do so much better in turbulent times compared with those with a dimmer view of their abilities, and compared with those narcissists with fragile egos.

In a series of studies by different researchers, employees with high self-evaluations have been found to respond better to corrective feedback. They also experience less stress and burnout than other employees, struggle less with work-life balance, and persevere more when searching for a job. Rather than shattering their beliefs in their abilities, it seems that a high self-evaluation creates a mental toughness that makes these people stronger and more resilient even when the chips are down.

The Core of Your Recovery Strategy To identify these stars who can take charge of your organization's rebound, you can use Judge's simple 12-question "Core Self-Evaluations Scale." (You can learn more about the scale and download it for free on Tim Judge's Web site.) It would also be a good idea to start keeping an eye out for these positive go-getters already working for you and consider giving them more responsibility and visibility in your recovery efforts. Here is how to spot them:

• "I Think I Can" Attitude: Kindergarten never taught a lesson more supported by empirical evidence than this: People who believe they can overcome challenges are more successful in virtually every sphere of life, including work.
• In Control: Does this employee take control of his work, or does he always point to outside circumstances when his projects go astray?
• Confident, Not Narcissistic: There is an important difference between having a high self-evaluation and being a narcissist. Does the employee pitch in when teammates need help, or bad-mouth co-workers they view as threats? Are they receptive or defensive when you give them feedback?
• Emotionally Stable: Employees who aren't easily discouraged are less likely to succumb to stress and burnout. They solve problems instead of saying, "See, I knew it wouldn't work!"

You could argue that getting these winners and their can-do attitudes on board still can't do much about a dismal economy. After more than a year of watching the economy go the way of the Titanic, nobody would blame you for trying to wait out the hard times. But do you really want to spend the coming months soothing your anxieties with a box of chocolates, and hoping that your bus arrives before the wind picks up?

Nick Tasler is a writer, researcher, and organizational psychologist. Tasler began his career at Andersen Consulting, was director of global research and development for think tank TalentSmart, and has consulted for Fortune 500 companies as well as smaller public and private enterprises. His book The Impulse Factor was named Best Career Book of 2008.

Will Social Media Be of Any Help to CEOs?

Experts believe social media presents good opportunity for businesses to connect with their customers. By Fayazuddin A. Shirazi at Chief Executive Online.

Although industry analysts are increasingly advocating the usage of social media by companies, CEOs apparently are going easy on the suggestions. As against the increased usage of social media – such as Twitter, Facebook, MySpace and the fast growing blogs domain - by general public, CEOs are still lagging behind in adopting to such emerging trends and technologies.

Writing for his blog “My Three Cents”, Ken Makovsky, CEO and President Makovsky + Company, a NY based global investor relations company believes, CEOs are losing, what he calls, a powerful opportunity to connect with their customers by ignoring social media.

Commenting on a recent research piece which pronounced most of the CEOs to be social media slackers, Makovsky thinks social media is a rapidly growing community and CEOs should identify and align themselves with these emerging technologies.

The research by UberCEO.com, a blog watch on CEOs, found most of the Fortune 100 CEOs they surveyed were social media hermits. Out of the 100 CEOs analyzed only two had twitter accounts.

Eighty-one percent of chief executives did not have a personal Facebook page. Only 13 had profiles on the professional networking site LinkedIn. Three-quarters of the CEOs did have some kind of Wikipedia entry, but nearly a third of those had limited or outdated information, such as incorrect titles, or failed to provide sources. While some CEOs contribute to other blogs, not one Fortune 100 chief executive had his or her own blog, writes Makovsky.

However, recent research data from Nielsen revealed that people are spending more time on social networking and blog sites than ever before. Nielsen research found the number of minutes spent on social media in the United Sates is doubling over the past year. “Despite an increase (82 percent) in the total number of minutes spent year-over-year and average time per person (67 percent) year-over-years, the CEOs are still staying aloof from the rapidly growing social media community,” wonders Makovsky quoting the Nielsen and UberCEO report.

So why is that CEOs are wary about social media? Experts believe CEOs fear, their open dialogue could spell potential trouble for them as they are closely watched by the law and the governance agencies.

"No doubt regulations such as Sarbanes-Oxley and Reg-FD make CEOs cautious about communicating freely, but they're missing a fabulous opportunity to connect with their target audience and raise their company's visibility," Sharon Barclay, editor UberCEO.com told Reuters, referring to financial reporting regulations aimed at protecting investors.

Experts feel unless CEOs are motivated to use the social media themselves, they really cannot know what it is.

“You (CEOs) can't understand Twitter, Facebook, or blogging by reading an article in a magazine or a report from your CMO. Sure, they can tell you what they are, but you won't be able to truly understand how they could change your business unless you actually use them,” George F. Colony, CEO Forrester Research and the self-proclaimed CEO Guru had observed in his recent blog posting. He says the only way CEOs can understand social technologies is by using them.

“Social is like sex. It's fun to talk about and read about, but you can't truly comprehend unless you do it,” Colony noted in his blog posting at Counter Intuitive CEO.

According to Colony, the CEO of Zappos, Tony Hsieh, uses social extensively and now has 300 customer service representatives at the company on Twitter. Why? As Tony says..."People don't relate to companies, they relate to people."  “This is important insight. You, the 57 year old CEO may not use social, but that doesn't mean that your customers don't use social. You are not your customer,” Colony points out referring to Tony Hsieh’s view.

Makovsky believes, while not every CEO has the skills, inclination or regulatory freedom to blog, it’s worth remembering that the social media represent a powerful opportunity for a company — or virtually any other entity— to really connect with its most important stakeholders.

“Yes, much of the social technology is a titanic time waster. And yes, much of the technology is crap. But there may be real value here for your company -- something that you can't grasp unless you engage with social,” George F. Colony pointed out.

Build a Social Media Hiring Strategy.

Jon Jordan got a weird feeling recently when he interviewed a candidate for a sales and marketing position. By Chris Penttila at Entrepreneur Magazine.

The applicant’s claim of double-digit sales at another company didn’t parallel with that company’s turbulent history. “It didn’t match up,” says Jordan, founder of Atlantic Business Technologies, a Raleigh, N.C. web development and marketing firm with 30 employees.

He went on LinkedIn and found a connection in the applicant’s network to verify his suspicions. The claim “was completely false,” says Jordan, 30. The applicant didn’t get the job.

Jordan’s not the only one cruising social networking sites during the hiring process. A June Jump Start Social Media survey of 100 hiring managers at small, mid-size and large companies found 75 percent go to LinkedIn to research job candidates before making a job offer, while 48 percent check out Facebook and 26 percent go to Twitter. When asked where they find talent for job openings, 66 percent said LinkedIn, 23 percent said Facebook and 16 percent said Twitter.

Social media sites have become an integral piece of the hiring puzzle; it’s how to leverage these sites most effectively as a recruiting tool that has companies scrambling. These sites are low-cost or free to join, but it takes time and effort to make them truly useful.

“Most companies aren’t doing enough,” says Veronica Fielding, president of Jump Start Social Media. “They think there’s an ROI that’s got to be associated with it immediately.”

Other companies are still trying to wrap their heads about the whole idea of social media. When Oklahoma City-based HR consultant Jessica Miller-Merrell gave a talk about social media at an HR conference this spring, some people asked her how to use “Tweeter,” while others believed social media was the domain of marketing and Generation Y, not the HR department.

“Most of the HR people there [were] not seeing the value yet,” says Miller-Merrell, who blogs about the social media/HR axis on her site, BloggingForJobs.blogspot.com.

On the other end of the spectrum are entrepreneurial firms like New York City’s 5W Public Relations, which is seeing a big payoff from its social media recruiting efforts. The 75-employee firm has a LinkedIn profile, a company Facebook page, a blog and a Twitter account with hundreds of followers. Founder Ronn Torossian, 34, posts job openings to Twitter and recently recruited a great hire with way. He’s recruited other employees through Facebook. “I think social media absolutely does work to help recruit [new hires],” he says.

Atlantic Business Technologies posts job openings on Twitter that direct applicants to the company website and the company’s Facebook page. Its LinkedIn profile offers a company overview and employee profiles. Jordan likes taking the company’s job openings viral on Twitter by “re-tweeting”-- that is, having his followers spread the word to their followers. “Many times it just takes a couple of ‘re-tweets’ to get potential candidates to review the job description,” he says. “Facebook and LinkedIn are great for networking and Twitter is better for broadcasting.”

Twitter is more than a form of microblogging; it’s also a real-time search engine. Miller-Merrell suggests using hash tags that designate a topic (i.e. #jobs) and simplify Twitter searches. “You can actually search for ‘#jobs’ and use advanced options to sort or narrow it down by zip code,” she says. Sites like TweetMyJobs.com and Jobshouts.com will let you post job openings that are fed over to Twitter. For best results, balance your marketing with links and trendy insights that position your brand as a valuable part of the Twitter community, Fielding says.

How to Build a Social Media Strategy This downturn is a great time to develop a social media recruiting strategy if your company doesn’t have one yet. Here are some basic tips for getting started:

Analyze your staffing needs. What kinds of jobs will you fill over the next year, and which social media sites will get you in front of your target applicants? If you run a small grocery, your potential workers are on the more casual Myspace and Facebook. If you need a director of sales, LinkedIn is a better bet.

Start where you’re comfortable. Some sites will feel more intuitive to you, and that’s fine. Dedicate 15 minutes to your favorite social media site a few times a week until you’ve got it down, and then branch out. Learn how other entrepreneurs use social media sites for recruiting, and don’t be embarrassed to ask other members on these sites for shortcuts as you’re learning them.

Remember your manners. Would you walk into a networking event full of people you don’t know and tell them to find the perfect applicant for you ASAP? Of course not; that would be rude. The same manners apply in cyberspace. Join some groups on social media sites and participate actively for awhile before you ask members to forward your job listings and so on. Good manners and common sense give people a good vibe about you, and your company.

Don’t do too little, but don’t do too much. Some candidates might think your company is in the dark ages if its social profile is too low, while others might get intimidated--even suspicious--if your company seems to be everywhere, all the time. Ponder the right level of exposure as you position your company.

Be consistent and responsive. Make sure employees have a uniform way of describing the company on these sites so job seekers aren’t confused, Fielding says. Designate an employee to check the company’s social media pages daily, too. If a customer posts a message to your company’s Facebook page saying the company is unresponsive, you’ll only further this perception if the complaint goes unanswered for weeks.

Realize that it’s a long-term commitment. Don’t expect a quick ROI from your social media efforts. It takes six months minimum to build relationships with people on social media sites “and that’s if you are hardcore,” Miller-Merrell says. Be patient, stick with it and be prepared to make a few mistakes as you poke around these sites.

What you do now will put you miles ahead of your main competitors in finding the right hires when the economy picks up. “If you don’t have good people, you don’t have a good product,” Jordan says. These days, you can’t have a good recruiting strategy without a good grasp of social media, either.

Chris Penttila is a freelance journalist whose work has also appeared in The Costco Connection, Oregon Business magazine, QSR Magazine, TheStreet.com and other publications. She lives in the Chapel Hill, N.C. area and covers workplace issues on her blog, Workplacediva.blogspot.com.

Lots of Enemies? Make Friends With The Press.

Part Five of a series on Ethical Leadership — many more to come. Have I lost my mind? Honestly — the idea of making the press your friend is obscene!

Hear me out — there is a logic to my madness.

When my team coaches businesses on the inner workings of their business, we ask them to develop a Mastermind group. A group that includes a tax accountant and an attorney. Why? In addition to the visionary participants (marketing/sales), as a business owner you need trusted individuals who will tell you the truth — and don't have an agenda — because they stick to the FACTS.

Now I will lay all my cards on the table — certain parts of the press are unreliable, sneaky, and downright corrupt (like all areas of business). But there are certain areas of the press who are ethical, forthright, and just. Reporters who stick to the facts and tell it like it is — whether it is good or bad news. Finally, reporters who are in it to report the NEWS and not just get the juicy story.

Those are the people that you sidle-up to and make friends. Why?

Because they are ethical. And they will keep you on the straight and narrow. It is always refreshing to surround yourself with people that will not only massage your ego, but trusted advisers who will tell you the truth AND let you know when you venture into unethical territory.

Now let's be honest — you don't have to tell them everything. But if you get a trusted editor or publisher that you meet for lunch on a regular basis, you can be assured that they will tell you what's on their mind.

And that my friends, is worth its weight in GOLD.

Passing Of A True Genius: Norman Borlaug.

Agricultural scientist Norman Borlaug, who won the Nobel Peace Prize for his role in combating world hunger and saving hundreds of millions of lives, died Saturday in Texas, a Texas A&M University spokeswoman said. He was 95. By Matt Curry & Betsy Blaney at The Huffington Post

Borlaug died Saturday night at his home in Dallas from complications of cancer, school spokeswoman Kathleen Phillips said. Phillips said Borlaug's granddaughter told her about his death. Borlaug was a distinguished professor at the university in College Station.

The Nobel committee honored Borlaug in 1970 for his contributions to high-yield crop varieties and bringing other agricultural innovations to the developing world. Many experts credit Borlaug with averting global famine during the second half of the 20th century and saving perhaps 1 billion lives.

Thanks to Borlaug, world food production more than doubled between 1960 and 1990. In Pakistan and India, two of the nations that benefited most from the new crop varieties, grain yields more than quadrupled over the period.

"Norman E. Borlaug saved more lives than any man in human history," said Josette Sheeran, executive director of the U.N. World Food Program. "His heart was as big as his brilliant mind, but it was his passion and compassion that moved the world."

Equal parts scientist and humanitarian, the Iowa-born Borlaug realized improved crop varieties were just part of the answer, and pressed governments for farmer-friendly economic policies and improved infrastructure to make markets accessible. A 2006 book about Borlaug is titled "The Man Who Fed the World."

"He has probably done more and is known by fewer people than anybody that has done that much," said Dr. Ed Runge, retired head of Texas A&M University's Department of Soil and Crop Sciences and a close friend who persuaded Borlaug teach at the school. "He made the world a better place – a much better place. He had people helping him, but he was the driving force."

Borlaug began the work that led to his Nobel in Mexico at the end of World War II. There he used innovative breeding techniques to produce disease-resistant varieties of wheat that produced much more grain than traditional strains.

Harvey McKay: How To Negotiate!

I love Harvey McKay. From one of his first books, Swim with the Sharks, I saw a real professional who was not shy about revealing his tried and true business secrets. He is a one-of-a-kind leader! By Harvey McKay

I got a phone call from a Fortune 500 CEO one week whom I had never met. After decades of begging the government to relax their regulatory grip and let his industry experience the joys of competition, his wish had been granted—and his bottom line had plummeted. He wanted me to talk to his top executives for two hours and zero in on negotiating strategies.

A bit overwhelmed, I said, "I'm very flattered but, frankly, I don't know if I can talk for two hours on negotiating." Then I realized I was actually negotiating with myself. As my brain finally reconnected, I cut myself off. "Well, let me sleep on it and I'll get back to you."

Later that evening, I began to write down some of my negotiating experiences and saw that my problem was going to be holding the speech down to two hours. I'd already brushed up against the first and second laws of negotiating that morning in my conversation with the CEO:

1. Never accept any proposal immediately, no matter how good it sounds.
2. Never negotiate with yourself. You'll furnish the other side with ammunition they might never have gotten themselves. Don't raise a bid or lower an offer without first getting a response.

Here are some more negotiating rules and insights:

• Never cut a deal with someone who has to "go back and get the boss's approval." That gives the other side two bites of the apple to your one. They can take any deal you are willing to make and renegotiate it.
• If you can't say yes, it's no. Just because a deal can be done, doesn't mean it should be done. no one ever went broke saying "no" too often.
• Just because it may look nonnegotiable, doesn't mean it is. Take that beautifully printed "standard contract" you've just been handed. Many a smart negotiator has been able to name a term and gets away with it by making it appear to be chiseled in granite, when they will deal if their bluff is called.
• Do your homework before you deal. Learn as much as you can about the other side. Instincts are no match for information.
• Rehearse. Practice. Get someone to play the other side. Then switch roles. Instincts are no match for preparation.
• Beware the late dealer. Feigning indifference or casually disregarding timetables is often just a negotiator's way of trying to make you believe he/she doesn't care if you make the deal or not.
• Be nice, but if you can't be nice, go away and let someone else do the deal. You'll blow it.
• A deal can always be made when both parties see their own benefit in making it.
• A dream is a bargain no matter what you pay for it. Set the scene. Tell the tale. Generate excitement. Help the other side visualize the benefits, and they'll sell themselves.
• Don't discuss your business where it can be overheard by others. Almost as many deals have gone down in elevators as elevators have gone down.
• Watch the game films. Top players in any game, including negotiating, debrief themselves immediately after every major session. They always keep a book on themselves and the other side.
• No one is going to show you their hole card. You have to figure out what they really want. Clue: Since the given reason is never the real reason, you can eliminate the given reason.
• Always let the other side talk first. Their first offer could surprise you and be better than you ever expected.
• You must be fully prepared to lose a great deal in order to make a great deal!
• "Make every bargain clear and plain, that none may afterwards complain." - Greek Proverb

Successful Startups: The Method Company.

A series highlighting successful startups - big and small. Enjoy! By Margaret Heffernan at Reader's Digest.

Eric Ryan and Adam Lowry were having dinner with their new investors. The 27-year-old entrepreneurs had finally gotten a million dollars in venture capital to kick-start their company, but it came with stiff financial targets. It turned out this was the least of their problems that night. "We were passing our credit cards under the table to each other," Ryan recalls, "but none of them worked, because we had maxed them out. Eventually, we persuaded the restaurant owner we were good for the money."

In the eight years since that embarrassing moment, Ryan and Lowry have built Method into the world's largest eco-friendly cleaning brand. Their green products use natural ingredients like corn, coconut oil, and palm oil and are packed in attractive, recyclable containers. In the process, the two changed the perception of green home-care products—and the industry too.

Ryan and Lowry had been friends since high school, but it wasn't until after college that they hit on the idea of a home-care-products company. "We were shocked to learn how toxic cleaning products were," says Ryan. Why couldn't they create green products that would be just as stylish, fragrant, and environmentally pure as Aveda's skin- and hair-care lines?

When Ryan's mom heard about the plan, she stared at him blankly: "I've never even seen you clean your room!" Undeterred, Lowry, the chemical engineer, experimented with nontoxic ways to clean, while Ryan, the ad guy, focused on marketing. In February 2001, they mixed their first four cleaning sprays and convinced the managers of 20 independent grocers to try them. Once they had their approval, they tapped friends and family and pooled their savings to come up with $90,000 in seed money.

From the start, "Go big or go home" was their mantra. Their first financing—that $1 million—was due to be signed on September 11, 2001. By the time they got it, two months later, says Ryan, "we had $16 in the bank and personally owed $300,000."

Snagging a national retailer proved just as tricky. The friends set their sights on Target, known for its trendy, affordable merchandise. "But Target didn't like the product or the brand," recalls Ryan. "We thought the deal was dead, but then a new senior buyer saw that even though we weren't selling big volumes, we were profitable, just on a smaller scale." They won over Target, but their first bottles of dish soap, shaped like bowling pins, leaked all over the shelves (intrigued shoppers removed the caps for a whiff and left them off). The partners got the mess cleaned up and redesigned the containers.

When they launched their triple-concentrated detergent, they ditched the huge boxes that were the industry norm. "We made it easier to handle, less cumbersome, and better for the environment," says Ryan. "Now almost all detergents are concentrated."

Consumers were hooked on the natural ingredients and exotic scents like ginger, yuzu, lychee, and ylang-ylang. Today, the partners sell 130 products in more than 8,000 stores, and revenues are "north of $100 million." Such hyper-growth has at times stressed the men's friendship. "Eric and I agree on 'what' but never on 'how,'" says Lowry. "Because we are willing to challenge each other, we come up with interesting and smarter solutions. There's a little bit of fire and ice between us."

Q. You launched in the middle of the 2001 recession. How did you pull that off? A. Eric Ryan: To be successful, you have to reinvent some thing, or a process, or have a point of differentiation. A recession forces you to sharpen that differ- entiation. Our customers instantly understood our products. They got the whole style and substance thing.

Q. What do you say to someone starting a business? A. Adam Lowry: Understand with great clarity what creates value for your consumer, and don't be afraid to deliver.

Q. Do you worry when companies copy you? A. ER: No, because part of our mission is to make competitors follow us. We get copied all the time, so we've created an organization that is good at changing.

Q. What's your favorite product? A. ER and AL: Whichever one we've just launched!

Q. Are you pro-clean or anti-chemical? A. ER: We're both sailors, so we are very sensitive to changes in the environment. Green has always been core to our beliefs.

Q. Could anyone do what you two have done? A. AL: Entrepreneurship is one third luck, one third effort, and one third willingness—or naïveté—to take a risk. Not everyone would put in the effort or take the risks we've taken.

Q. Do you clean your own homes? A. ER: I have a cleaning service, but the simplest way to a cleaner home is just not to bring so much crap into it. Take your shoes off! AL: I do most of the cleaning, but my wife helps too. I don't freak out about every speck of dirt. I care more about keeping things uncluttered.

Q. Is money important? A. AL: I have a three-month-old daughter I want to put through college. I live in a 1,200-square-foot apartment, and I have a mortgage, so money isn't unimportant. But it is lower on my list of priorities. What I get from Method is a great sense of fulfillment, and that's far more important.

How to Go on the Offensive with Facebook.

I love Guy Kawasaki — his thinking is light years ahead of his contemporaries. I hope you enjoy his latest piece on Facebook - read, absorb, and act!

By Guy Kawasaki at Alltop

A friend of mine conducted this informal poll about what a person should do if she were asked to show a male interviewer her Facebook page. Only 12% said they would agree. Thirty-three percent said they would walk out of the interview or refuse. Fifty-five percent said they would ask why and then decide.

It’s time to “face” two facts: First, most organizations are either already looking at candidates’ Facebook profiles, or they are going to start soon. Second, people who are worth hiring either have a social-networking profile on some service or will soon—indeed, recruiters may already think that a candidate who doesn’t have a profile is hiding something, disconnected, or clueless.

Given these two developments, the defensive advice that experts are pedaling to “be careful what you put on your Facebook profile because recruiters may look at it” is ass-backwards. Instead, you should assume that organizations are checking you out (in fact, I blogged about a more efficient way to do this here) and use this to your advantage.

That is, rather than cleanse profiles in order to escape rejection, enlightened candidates will use Facebook profiles to market themselves—perhaps even asking to show their Facebook profiles in interviews. Think about what companies are looking for: bright, diligent, honest, well-rounded, socially-responsible, green, and connected people. Now imagine that you were giving a tour of your Facebook profile to a recruiter. Would you be able to make these kinds of statements?

“This is my graduation picture. I completed a four-year program on time while working full time." “This is one of my favorite professors. I took ABC from him (where ABC is a subject area relevant to the job).” “This is a photo essay of when I traveled throughout China. I was totally blown away by the entrepreneurial spirit of the Chinese, and I made many friendships that will help me in your position.” “Here’s when my hockey/soccer/basketball/whatever team won the championship. I learned so much about hard work, discipline, and team play because of sports.” “Here’s a bunch of my friends hanging out with me (this picture should contain people of multiple genders, ethnicities, religions, and sexual orientations) right before we went on a mission to build schools in Guatemala.” “This is the day that I got my iPhone/iTablet/iWhatever—I have to admit that I’m an early-adopter of technology.” Even better: “This is a picture of how I use what this company makes.” “Here’s when I went to Demo/TechCrunch50/World Economic Forum/G8/whatever in order to learn about what’s happening in the industry.” “This is the tweetup/meetup/faceup/whatever that I coordinated to help people network better.” "Here’s where I volunteered to work at SXSW so that I could attend all the sessions for free. This is the most amazing conference—have you ever been to it?" “Here’s when I met Robert Scoble/Mike Arrington/Charlene Li/Jeremiah Owyang/Chris Anderson/Steve Rubel/Ariana Huffington/Steve Ballmer/Steve Jobs/GRAMEEMBANK/David Pogue/Walt Mossberg/whoever.”

You don’t need to get all Forest Gump, but you get the point. Some folks might make the case that I’m missing the point of Facebook: It’s supposed to be one’s personal, “let my hair down,” silly world. Yes, you will lose some cred with your friends for selling out. Welcome to the real world—here you have to make tradeoffs all the time.

For a while, people who work Facebook like this will stand out from the crowd. Then recruiters will figure out that you’re playing them. Still, I would look at it this way: “At least this candidate is clever enough to work the system.”

The irony is that if enough people start doing this, recruiters may tire of looking at Facebook profiles, and then you can go back to showing pictures of when you barfed your brains out at a party while wearing no clothes.

09 • 09 • 09

The Beatles are the defining group of my generation and I might daresay — many generations. Today marks a date where they will release all of their music in a remastered state AND expand their presence into younger generations via a RockBand video game offering (there are also hints of their catalogue appearing on iTunes - so stay tuned!). If you don't know it already - when it comes to marketing - The Beatles are the BEST.

I remember the first time I heard them - I was five years old in my brother's room. On the turntable was Meet The Beatles and "It Won't Be Long" was blasting out of one single speaker on the floor (that's 60's high fidelity for you - Heathkit by the way!).

I instantly fell in love. My older brothers allowed me to stay in their room and listen to the whole album before I was again banished back to my room forever.

The funny thing is that as time goes on, other bands that I LOVED just fade away - U2, REM, Jethro Tull, The Partridge Family, etc. Their music still has meaning to me — unfortunately I just don't listen to their albums anymore.

But I still have the entire Beatles catalogue on my iPhone. There is something compelling, enjoyable, and fun about their music. I listen to it ALL the time.

Go figure.

So I will be asking for the entire remastered Beatles catalog for Christmas. And Santa, I've been a good boy.

P.S. What's your favorite Beatles' song and album?

Losing Your Compass? Try Simple Philosophy.

Part Four of a series on Ethical Leadership — many more to come. "The higher the buildings, the lower the morals." - Noel Coward

In the past three parts of this series, I've endeavored to lay out ways for leaders to strengthen their ethics and how to apply it to their leadership style. Some are hard and some are easy. This is an easy one:

Get Philosophy into your life.

It could take many forms - religion, classes, books, people, etc. But a strong dose of philosphical study in your life will allow you to become more grounded and keep you thinking about past, present, and future ethical positions. Some suggestions:

1. Religion - If you are at all religious, hit a church, synagogue, or organization to reacquaint yourself with the ethical and moral teachings of that religion. It's not taxing, doesn't cost a lot of money, and you surround yourself with a lot of people who believe the same way you do. And when you hit an ethical pothole in the road, you can lean on them to send you on the straight and narrow once again.
2. Books - Read! There are thousands of philosophers out there. If you like the classics, dive into them. If you like the moderns, there are many to choose from. I especially love the ethical textbooks from college - they present differing points of view of an ethical choice - and they really make you think (email me for a list of great texts - richgee@richgee.com).
3. Speakers - Go to one of their meetings. Listen and see how you can begin to incorporate some of their teachings into your life. The worse that can happen is that you don't agree with their position - you can then walk out.

By taking this first step, it allows you to always have an 'ethical rudder' on your life - it will guide you in your business and personal life.

Book Review: The Management Myth: Why the "Experts" Keep Getting it Wrong - By Matthew Stewart

"How can so many who know so little make so much by telling other people how to do the jobs they are paid to know how to do?" The answer to this question, posed by a professor of author Matthew Stewart, is basically the entire volume of The Management Myth, itself. This darkly funny, brutally detailed look at the management consultant class manages to unveil nonsense and presumptions of everyone involved in corporate life in America, from current gurus like Tom Peters (In Search of Excellence) to modern-day Fortune 500 company heads to the worshipped founders of business schools and management theory.

By SusanG at DailyKos. The Management Myth: Why the "Experts" Keep Getting it Wrong - By Matthew Stewart - Hardcover, 352 pages - W.W. Norton & Co., New York - $27.95

Along with the money has come a whole lot of admiration for the great leaders of the corporate world. University leaders, philanthropists, hospital administrators, and politicians promise to manage their fiefdoms like CEOs manage their companies .... When Jesus is compared with a CEO, it is Jesus who is thought to gain by the comparison. Whether the problem is a soul in search of salvation, a relationship on the rocks, or a superpower in trouble, according to the received wisdom the answer is to turn it into a private corporation and then manage it like a CEO.

Stewart's personal story exemplifies the ludicrousness of the consultant trade in a nutshell. Armed with no business experience or even a record of academic business classes--but a Ph.D. in Philosophy from Oxford!--he interviewed on a lark for a consultant position, urged on by a friend with about as much business experience as Stewart who'd struck gold with a firm with a top-tier firm.

Luckily for readers, Stewart was hired ... and spent years on the front lines taking notes like an embed in the consultant industry, rising from a low-level (but highly compensated) hire to founding partner of a spin-off firm, a company that (ironically) ended badly in a tangle of lawsuits and textbook examples of bad management practices.

Alternating tales of his own personal rise and disillusionment with the industry with historical background on how business education and business management became its own field in the first place, Stewart's keen eye and biting insight provide a work that is both entertaining and informative. And the book's timing couldn't be better; as outsiders look in on Wall Street and wonder how so many supposedly brilliant financiers could have been so wrong, Stewart's look at the underbelly of CEO's and their parasitic class of consultants provides several clues as to how the current economic crisis came about.

If any political party funded political science departments in the way that corporations fund the business schools, we would naturally consider their research to be little more than propaganda.

Let's begin, then, at the beginning, as Stewart does: with the origins of the business schools and the business of advising business itself. For many years, capitalists like Andrew Carnegie and J.P. Morgan managed somehow to create empires without paying theorists or obtaining MBA's, but that all changed when the first efficiency expert, Charles Frederick Taylor, did some very unscientific scientific studies and became if not the first, at least the most renowned (and pompous), advisor to businesses. "With this time-wasting stopwatch rituals and other grossly inefficient sacraments to the god of production," Stewart writes, "Taylor embodied the subtle madness of a new and profoundly unbalanced religion of practicality." But Taylor gave the "profession" a genesis and a scientific aura, despite the fact that later examinations of his "studies" proved them to be inaccurate and ... well, fudged. No matter. A "profession" of management and business consultancy was born, taken up and promulgated by Taylor's successors.

Medicine is a profession not on account of research in molecular biology but because it has licensing requirements, standards commissions, and policing mechanisms for controlling malpractice. The "profession" of business management as Donham and Mayo conceived it has none of these features. It merely exhorts good behavior on the basis of putatively "scientific" findings.

It's not that Stewart objects to quantification and analysis in a knee-jerk humanities/philosopher fashion. In its place, he acknowledges, statistics and projections can help chart a course and can turn up problem areas in need of attention. He also understands the place and role of leadership in organizations, even as he despairs of the "professionalization" of it.

But the modern idea of management is right enough to be dangerously wrong and it has led us seriously astray. It has sent us on a mistaken quest to seek scientific answers to unscientific questions. It offers pretended technological solutions to what are, at bottom, moral and political problems. It conjures an illusion--easily explained--about the nature and value of management expertise. It induces us to devote formative years to training in subjects that do not exist. It favors a naive view of the sources of mismanagement. Above all, it contributes to a misunderstanding about the sources of our prosperity, leading us to neglect the social, moral, and political infrastructure on which our well-being depends.

Not only does fetishization of ill-founded management theory threaten that non-corporate infrastructure to which he refers, it also often doesn't even make sense in a business context. "'Pure' analysis," he claims, "in most business situations tends to be conservative rather than creative. It implicitly favors optimizing the existing business rather than building a new one."

Still, there is a certain constructive role that outsiders can play in the modern corporation, if they keep the scope of their mission in mind. Often consultants can serve as hatchet men (or women, but usually men), for example. Or they can become the conduit of communication from one department to another in a poorly structured organization. Or ... they can just pull strategy out of the air sometimes, just to get things moving.

But overall, the business of advising business is a charade, one Stewart likens at one point to the introduction of a virus into an imperfect but moderately functioning organism. Sure, every corporation could probably use a wee bit of objective analysis, but the road to succumbing to a fatal parasitical malady usually begins with picking up an advisor on one project and then four years down the line having an entire staff of consultants in every department, sucking the life out of organizations, mandating lay-offs of employees even as the ranks of the contracted consultants swells.

And some of the modern strains of hyped business practice can be downright alarming on close examination. "Strategic planning," for example, uses projection and top-command control tactics that look an awful lot like Soviet Russia-era five-year plans, and can wind up creating the same kind of sullen, drag-footed compliance and stifling of innovation in the modern multinational corporation.

And most of the best business practices come down to common sense, anyway, Stewart maintains. After living the advising life and bailing on it, he's embarked now on a new writing career that's refreshing, bold and valuable. In The Management Myth, Stewart not only bites the hand that fed him--he cuts it off, chews it up, spits it out and examines its anatomy so that those unfamiliar with the practices of that invisible hand can benefit from knowledge of its previously invisible ways. Out of these shadows emerges the credo of the consultant--and the corporate--class:

Hire the smartest people in the room, the theory goes, and they'll figure out on their own how to extract money from the other people unlucky enough to be caught in the same room.