Having a great career entails making unique and useful contributions to an organization, in addition to instilling strong feelings of loyalty and trust within others. The unique and useful contributions make up the "what" of an individual's career.
The contributions themselves come from an individual's specific mix of passions and talents. The loyal and trusting relationships make up the "how" of an individual's career.
These flourishing relationships are the result of an individual's character and conscience. Because anyone can make unique contributions and maintain trusting and loyal relationships, anyone can have a great career.
Individuals need to practice and improve their skills to be able to contribute effectually to the organization, and they need to have a character that is worthy of the loyalty and trust of others. Career-seekers also need to maintain the right kind of ambition.
If someone is ambitious solely for financial success and is not willing to work hard for it, their ambition will likely destroy their career and make them miserable. However, if they are ambitious to make a positive and helpful contribution to their organization and the public as a whole, they will be much more likely to experience success and fulfillment both in their personal lives and in their career.
By committing to doing what is right, individuals will become driven to contribute more, feel better about themselves, earn more money, and have a wider range and greater number of positive opportunities.
The landscape of the global economy is experiencing a shift from the Industrial Age to the Knowledge Age.
The Industrial Age used machines to increase productivity and required workers to fulfill specific roles and complete very specific tasks. In the Knowledge Age, however, people are expected to choose the problems they work on.
They need to make unique and effective contributions by using their own skills and talents to solve the issues at hand. And because of the dependence on skill and knowledge rather than machinery, there is no limit to the number of contributions an individual can make so long as they continue enriching themselves.
While it is true that the current state of the economy is resulting in a decrease in job security, it is also true that organizations still face a wide variety of problems, and by making oneself useful by posing solutions to those problems, they can ensure the security of the position they already have or obtain an entirely new position.
Many employees feel as though they are just going around in circles, getting nowhere with their career.
They feel imprisoned by their job description, they limit themselves and their abilities to so that they can fit within the constraints they've imposed upon themselves. These employees need to realize that their jobs are no longer defined by their job descriptions, and that if they truly are dissatisfied with their line of work, it is never too late to reassess themselves and their career and begin the search for a position that melds better with what they have to contribute and what they would like to achieve.
In the Knowledge Age, individuals can challenge old assumptions and bring new insight to the table, they can stop pigeon-holing themselves into unsatisfying jobs, and they can address problems with a ride range of easily available informational resources. Individuals need to ask themselves what their actual contribution will be, not what their job description says.
Those stuck in the Industrial Age believe that they are their function, that they are a job seeker, or that they are simply a gear in the organization's machine, while those moving into the Knowledge Age know that they should make significant contributions, that they are a problem solver, and that they are a human being with a unique and useful set of strengths.
This articles is based on the book "Great Work, Great Career." The book summary is available online at Business Book Summaries.
Stay updated with articles packed with lessons on business, leadership, management and self-improvement.
Friday, December 9, 2011
Wednesday, November 16, 2011
Making a Career Satisfying
The ideal career is an enjoyable one that utilizes a person's skills and abilities in a pleasant environment with good co-workers. However, a self-defining career that brings joy is unattainable for most people.
The Bureau of Labor Statistics reports that 67 percent of American workers are unhappy on the job because they dislike their boss or co-workers, the duties they must perform, lack of a challenge, and other reasons. To better understand why two thirds of Americans are dissatisfied, interviews were conducted with individuals experiencing both joy and disdain for their careers.
One worker enjoyed her job because of some of the conditions: decent pay, an easy commute, and prior knowledge of what she was expected to do. In addition, despite feeling a little bored about the work itself, she appreciated having the job during a period of high unemployment.
At the other end of the spectrum, another worker cited politics, too many changes, and 60-hour workweeks as reasons for the stress and dread he faced each day. Instead of appreciating what he had, he felt the company owed him more.
The first challenge around the aspect of career is for both employers and employees to ask the hard questions to better understand the roots of any dissatisfaction. Employers should consider whether or not they are respecting their staff by providing fair wages, competitive benefits, clear expectations, the right tools to do their jobs, recognition for their work, and opportunities for them to voice their opinions.
Employees are recommended to explore the following questions:
* Are you giving it your all? In other words, workers need to determine if they are performing to the best of their abilities, doing an honest day's work, and surpassing both their supervisor's expectations and their own.
* Would a different job matter? People who stay in unsatisfying positions are not helping themselves, their bosses, their customers, or the company as a whole, and would be better off making a change. Showing up at any job with the wrong frame of mind contributes to a culture of disengagement.
* Is it time for a change? Some workers fail to realize that what started out as a "job," has turned into a "career," and that it is not the right fit for them. Perhaps they lack the skills to excel and make a contribution, knowledge of their industry, or the motivation to deal with office politics or other challenges. The other challenge is to continually focus on one's own personal growth. By enhancing their own skills, employees not only add value to their company and earn more appreciation and respect from their bosses, but they prepare themselves for more satisfying opportunities that become available.
Here are some good action items:
* Pursue training offered by the company. Employees should take advantage of learning opportunities, especially those that enhance their job performance or teach transferable skills.
* Take advantage of online training opportunities. Instead of wasting their computer leisure time at social media sites, people should look into taking online courses, many of which are free or affordable, and offer more flexibility for people who lack the time and resources to head over to a college campus. Sometimes training is not offered by the company, so employees must take the initiative to learn themselves.
* Read a book a month. Reading is one of the best self-paced methods of personal development. Some self-improvement books can be borrowed from the library or a friend for free. You may also want to sign-up for book summaries available on Business Book Summaries.
The Bureau of Labor Statistics reports that 67 percent of American workers are unhappy on the job because they dislike their boss or co-workers, the duties they must perform, lack of a challenge, and other reasons. To better understand why two thirds of Americans are dissatisfied, interviews were conducted with individuals experiencing both joy and disdain for their careers.
One worker enjoyed her job because of some of the conditions: decent pay, an easy commute, and prior knowledge of what she was expected to do. In addition, despite feeling a little bored about the work itself, she appreciated having the job during a period of high unemployment.
At the other end of the spectrum, another worker cited politics, too many changes, and 60-hour workweeks as reasons for the stress and dread he faced each day. Instead of appreciating what he had, he felt the company owed him more.
The first challenge around the aspect of career is for both employers and employees to ask the hard questions to better understand the roots of any dissatisfaction. Employers should consider whether or not they are respecting their staff by providing fair wages, competitive benefits, clear expectations, the right tools to do their jobs, recognition for their work, and opportunities for them to voice their opinions.
Employees are recommended to explore the following questions:
* Are you giving it your all? In other words, workers need to determine if they are performing to the best of their abilities, doing an honest day's work, and surpassing both their supervisor's expectations and their own.
* Would a different job matter? People who stay in unsatisfying positions are not helping themselves, their bosses, their customers, or the company as a whole, and would be better off making a change. Showing up at any job with the wrong frame of mind contributes to a culture of disengagement.
* Is it time for a change? Some workers fail to realize that what started out as a "job," has turned into a "career," and that it is not the right fit for them. Perhaps they lack the skills to excel and make a contribution, knowledge of their industry, or the motivation to deal with office politics or other challenges. The other challenge is to continually focus on one's own personal growth. By enhancing their own skills, employees not only add value to their company and earn more appreciation and respect from their bosses, but they prepare themselves for more satisfying opportunities that become available.
Here are some good action items:
* Pursue training offered by the company. Employees should take advantage of learning opportunities, especially those that enhance their job performance or teach transferable skills.
* Take advantage of online training opportunities. Instead of wasting their computer leisure time at social media sites, people should look into taking online courses, many of which are free or affordable, and offer more flexibility for people who lack the time and resources to head over to a college campus. Sometimes training is not offered by the company, so employees must take the initiative to learn themselves.
* Read a book a month. Reading is one of the best self-paced methods of personal development. Some self-improvement books can be borrowed from the library or a friend for free. You may also want to sign-up for book summaries available on Business Book Summaries.
Friday, November 4, 2011
Finding Synthesis in Dealing with Dilemmas
Finding synthesis and creating options are the two "pillars" of dealing with dilemmas. Finding synthesis means going beyond analytics and thinking outside the box to form new solutions and perspectives, rather than making straightforward choices.
Let's take a look at German philosopher Georg Wilhelm Friedrich Hegel's dialectic of thesis-antithesis-synthesis. Thesis refers to the prevailing view or common wisdom.
But it typically carries disadvantages that cause others to develop an opposing viewpoint, or antithesis. While this may solve the original disadvantages, it typically brings new ones, creating a dilemma between thesis and antithesis.
At this point, however, there is not an either or choice. A synthesis can be arrived at, generating a new thesis.
Consider again the top down or bottom up dilemma between the financial and business process perspectives. There is the traditional "thesis" that upper management should set strategic objectives and that the rest of the organization should become aligned with them.
This centralization allows for more uniformity, economies of scale, and greater control but has the disadvantages of reduced flexibility, a reduced focus on changes in the market, and a lack of empowerment for middle management to find alternative solutions to opportunities or problems. Out of this comes the "antithesis" of decentralization, a bottom up approach that brings the decision making power closer to market opportunities and allows for more agility and growth.
But this may bring the disadvantages of fragmentation and higher costs from inefficiency. The two approaches appear to be mutually exclusive; the advantages of the thesis are the disadvantages of the antithesis.
But perhaps synthesis can be achieved with standardization. A standard is a "a uniform approach for people to apply in different situations."
Standards can help maintain some uniformity while still empowering people to tailor solutions to specific situations. Standardization becomes the new thesis which will eventually be challenged by a new antithesis.
For instance, how should a company deal with exceptions in a standardized environment? Will standardization stifle innovation?
A new synthesis will have to be developed.
Resolving the dilemma of value or profit requires the same kind of thinking. If business is thought of as a zero-sum game in which the customer's gain in value is the company's loss in profit, the dilemma will never go away.
What needs to be found is a synthesis of how profit can be made while also giving value to customers and others in the value chain. For example, Apple's iPod is a synthesis of the you-and-me dilemma between the customer's value of free downloadable music and the industry's need for profitability.
On one hand, Apple considered that embracing the trend of free downloadable music might create customer value and might allow it first-mover advantage in the market, but it was not clear how to compete with free. On the other hand, trying to maintain the industry's existing model would keep profitability and control of the end product, but it risked creating greater numbers of unsatisfied customers and becoming a market casualty.
Again, the choices appear to be mutually exclusive, but Apple challenged the assumptions to find the "and." How could the trend be maintained and be used to generate profit? The company noticed that free mp3 files were not always high quality and were often difficult to put onto mp3 players.
Apple found synthesis by 1) integrating hardware and software with its iPod and iTunes store to meet the needs of the demand chain and 2) by making music highly available through distribution contracts on the supply chain. By uniting integration and distribution, they were able to charge a modest price for each track and make a profit.
Value and profit were both achieved. Finally, the inside out or outside in dilemma (the tension between the back office and front office) must also utilize some kind of synthesis.
Organizations cannot really choose one or the other; they must be both efficient and effective, focused on streamlined business processes and meeting customer needs. One strategy companies have used to synthesize these competing demands is through mass customization principles, where each transaction is customizable and customers have greater self-service abilities.
This article is based on the book "Dealing with Dilemmas." The book summary is available online at Business Book Summaries.
Let's take a look at German philosopher Georg Wilhelm Friedrich Hegel's dialectic of thesis-antithesis-synthesis. Thesis refers to the prevailing view or common wisdom.
But it typically carries disadvantages that cause others to develop an opposing viewpoint, or antithesis. While this may solve the original disadvantages, it typically brings new ones, creating a dilemma between thesis and antithesis.
At this point, however, there is not an either or choice. A synthesis can be arrived at, generating a new thesis.
Consider again the top down or bottom up dilemma between the financial and business process perspectives. There is the traditional "thesis" that upper management should set strategic objectives and that the rest of the organization should become aligned with them.
This centralization allows for more uniformity, economies of scale, and greater control but has the disadvantages of reduced flexibility, a reduced focus on changes in the market, and a lack of empowerment for middle management to find alternative solutions to opportunities or problems. Out of this comes the "antithesis" of decentralization, a bottom up approach that brings the decision making power closer to market opportunities and allows for more agility and growth.
But this may bring the disadvantages of fragmentation and higher costs from inefficiency. The two approaches appear to be mutually exclusive; the advantages of the thesis are the disadvantages of the antithesis.
But perhaps synthesis can be achieved with standardization. A standard is a "a uniform approach for people to apply in different situations."
Standards can help maintain some uniformity while still empowering people to tailor solutions to specific situations. Standardization becomes the new thesis which will eventually be challenged by a new antithesis.
For instance, how should a company deal with exceptions in a standardized environment? Will standardization stifle innovation?
A new synthesis will have to be developed.
Resolving the dilemma of value or profit requires the same kind of thinking. If business is thought of as a zero-sum game in which the customer's gain in value is the company's loss in profit, the dilemma will never go away.
What needs to be found is a synthesis of how profit can be made while also giving value to customers and others in the value chain. For example, Apple's iPod is a synthesis of the you-and-me dilemma between the customer's value of free downloadable music and the industry's need for profitability.
On one hand, Apple considered that embracing the trend of free downloadable music might create customer value and might allow it first-mover advantage in the market, but it was not clear how to compete with free. On the other hand, trying to maintain the industry's existing model would keep profitability and control of the end product, but it risked creating greater numbers of unsatisfied customers and becoming a market casualty.
Again, the choices appear to be mutually exclusive, but Apple challenged the assumptions to find the "and." How could the trend be maintained and be used to generate profit? The company noticed that free mp3 files were not always high quality and were often difficult to put onto mp3 players.
Apple found synthesis by 1) integrating hardware and software with its iPod and iTunes store to meet the needs of the demand chain and 2) by making music highly available through distribution contracts on the supply chain. By uniting integration and distribution, they were able to charge a modest price for each track and make a profit.
Value and profit were both achieved. Finally, the inside out or outside in dilemma (the tension between the back office and front office) must also utilize some kind of synthesis.
Organizations cannot really choose one or the other; they must be both efficient and effective, focused on streamlined business processes and meeting customer needs. One strategy companies have used to synthesize these competing demands is through mass customization principles, where each transaction is customizable and customers have greater self-service abilities.
This article is based on the book "Dealing with Dilemmas." The book summary is available online at Business Book Summaries.
Thursday, October 27, 2011
The Quiet Revolution of Women
A 1978 study of accomplished women, which became known as the Imposter Phenomenon, revealed behavioral patterns indicating a lack of confidence. Women at that time felt they were tricking others into thinking they were smarter than they actually were.
They also believed their promotions were due not to their ability but to luck and timing. Women carefully calculated every move, including how they expressed themselves, fearing that others would realize they had given them too much credit.
Throughout the 70s and 80s, women who chose to work often felt they had to emulate men in order to achieve success and be accepted into the corporate world. They wore traditional, dark-skirted suits with shoulder pads.
Women also adopted a masculine communication style, getting into verbal arguments and discussing sports. Women who have a drive for success still deal with stressful situations related to their careers, but their needs have evolved.
They seek challenges to show off their skills and to avoid boredom. They also want to establish clear career paths, and they want the ability to communicate in a manner that will ensure others take them and their ideas seriously.
Women feel entitled to receive job satisfaction and opportunities; they will move on if the current organization does not support their needs. One should not mistake this sense of entitlement for laziness.
High-achieving women work hard to attain their desires. There are five drivers of both success and difficulty for modern, high-achieving women:
1. Extreme confidence. This positive attitude compels women to work hard for what they want; however, it may lead them to work too hard and to take on projects that are too difficult.
2. Constant need for new challenges. Women seek to meet their needs with successive accomplishments, possibly leading to frequent job changes without careful planning.
3. A strong drive for recognition based on performance, not gender. Women are more concerned with proving their own unique abilities, rather than those of females in general. This attitude may cause others to perceive them as harsh and insensitive.
4. Work is their life's blood. High-achieving women might only feel pleasure from their accomplishments in the working world. They might lose sight of the big picture and become disconnected from the rest of the world.
5. Experience is the best teacher. Learning comes easily and quickly, but this ability could lead women to believe they are self-sufficient, rejecting the advice and support of others.
Since the mid-80s there has been a profound change in working women, particularly those who are high-achieving. They no longer leave their professional personas at work; they are stronger as individuals, and their careers define who they are.
While this is a significant advancement from working simply to cover financial obligations, it has left many ambitious women unable to separate themselves from their work. This change can be attributed to four major shifts in society.
The first is the widespread teaching of self-esteem. From the time they are toddlers, women have been taught they can do anything and their opinions matter.
Not only are they instructed not to rely on others, but they are frequently told they are better than their peers. This teaching has resulted in a generation of mentally strong women who are so obsessed with their quest for excellence they push themselves too hard.
The increase in competitive sports for women has also been significant. Sports have taught women to fend for themselves, both mentally and physically.
Another factor is the growing number of women holding advanced degrees, which increases their earning potential and available job opportunities. The final factor is the positive support women now receive.
Their predecessors were not expected to excel in the work environment. Now, people believe that women can work and also be good at it.
This article is based on the book "Wander Woman." The book summary is available online at Business Book Summaries.
They also believed their promotions were due not to their ability but to luck and timing. Women carefully calculated every move, including how they expressed themselves, fearing that others would realize they had given them too much credit.
Throughout the 70s and 80s, women who chose to work often felt they had to emulate men in order to achieve success and be accepted into the corporate world. They wore traditional, dark-skirted suits with shoulder pads.
Women also adopted a masculine communication style, getting into verbal arguments and discussing sports. Women who have a drive for success still deal with stressful situations related to their careers, but their needs have evolved.
They seek challenges to show off their skills and to avoid boredom. They also want to establish clear career paths, and they want the ability to communicate in a manner that will ensure others take them and their ideas seriously.
Women feel entitled to receive job satisfaction and opportunities; they will move on if the current organization does not support their needs. One should not mistake this sense of entitlement for laziness.
High-achieving women work hard to attain their desires. There are five drivers of both success and difficulty for modern, high-achieving women:
1. Extreme confidence. This positive attitude compels women to work hard for what they want; however, it may lead them to work too hard and to take on projects that are too difficult.
2. Constant need for new challenges. Women seek to meet their needs with successive accomplishments, possibly leading to frequent job changes without careful planning.
3. A strong drive for recognition based on performance, not gender. Women are more concerned with proving their own unique abilities, rather than those of females in general. This attitude may cause others to perceive them as harsh and insensitive.
4. Work is their life's blood. High-achieving women might only feel pleasure from their accomplishments in the working world. They might lose sight of the big picture and become disconnected from the rest of the world.
5. Experience is the best teacher. Learning comes easily and quickly, but this ability could lead women to believe they are self-sufficient, rejecting the advice and support of others.
Since the mid-80s there has been a profound change in working women, particularly those who are high-achieving. They no longer leave their professional personas at work; they are stronger as individuals, and their careers define who they are.
While this is a significant advancement from working simply to cover financial obligations, it has left many ambitious women unable to separate themselves from their work. This change can be attributed to four major shifts in society.
The first is the widespread teaching of self-esteem. From the time they are toddlers, women have been taught they can do anything and their opinions matter.
Not only are they instructed not to rely on others, but they are frequently told they are better than their peers. This teaching has resulted in a generation of mentally strong women who are so obsessed with their quest for excellence they push themselves too hard.
The increase in competitive sports for women has also been significant. Sports have taught women to fend for themselves, both mentally and physically.
Another factor is the growing number of women holding advanced degrees, which increases their earning potential and available job opportunities. The final factor is the positive support women now receive.
Their predecessors were not expected to excel in the work environment. Now, people believe that women can work and also be good at it.
This article is based on the book "Wander Woman." The book summary is available online at Business Book Summaries.
Tuesday, October 18, 2011
Success in the Training Industry
While organizational leaders understand the importance of training, they often wrongly assume that training automatically results in improved performance. The training industry has struggled to demonstrate success in the past because organizations measure the quality of training and not the resulting impact on performance as the indicator of training's effectiveness.
The training industry borrowed its fundamental concepts from higher education. The industry boomed in the 1980s and 1990s as a result of corporations hiring externally to meet their growing training needs.
In response, training companies watered down their models to a "one-size-fits-all" approach. Training models fail when the training does not align with business goals, and misguided measurement processes do not represent return value--the primary benchmark for which training should be measured.
Measurement should focus not on the training itself but on the resulting impact on employee performance. True corporate learning can only occur when employees take ownership for their learning, an internalization that distinguishes learning from training.
In order to reach employees and influence such ownership, corporate trainers must connect with employees through experiential instructional methods, allowing trainers and employees to find a common ground. As a result, employees will feel ownership of their new skills and motivation for continued learning.
Malcolm Knowles, the father of adult learning theory, advocated for learner-centered instruction, where the instructor is a facilitator instead of a lecturer. He believed ownership of the learning process was central to learning, a departure from traditional instructional theories of "leading the learner."
Knowles's theory evolved into the action learning model, resulting in a learning system that begins with a shared experience, engages employees with corporate strategy, and leads to reflection, learning, and new application. The new application, which ends in a new experience for learners to share, completes the action model.
Trainers are called to recognize learning research, realize that adults have different learning styles, and adapt training models to interactively engage and motivate employees. Additionally, they are encouraged to take responsibility for transforming their traditional models of training into learner-centered models to extract a greater ROLI.
This article is based on the book "Corporate Learning Strategies." The book summary is available online at Business Book Summaries.
The training industry borrowed its fundamental concepts from higher education. The industry boomed in the 1980s and 1990s as a result of corporations hiring externally to meet their growing training needs.
In response, training companies watered down their models to a "one-size-fits-all" approach. Training models fail when the training does not align with business goals, and misguided measurement processes do not represent return value--the primary benchmark for which training should be measured.
Measurement should focus not on the training itself but on the resulting impact on employee performance. True corporate learning can only occur when employees take ownership for their learning, an internalization that distinguishes learning from training.
In order to reach employees and influence such ownership, corporate trainers must connect with employees through experiential instructional methods, allowing trainers and employees to find a common ground. As a result, employees will feel ownership of their new skills and motivation for continued learning.
Malcolm Knowles, the father of adult learning theory, advocated for learner-centered instruction, where the instructor is a facilitator instead of a lecturer. He believed ownership of the learning process was central to learning, a departure from traditional instructional theories of "leading the learner."
Knowles's theory evolved into the action learning model, resulting in a learning system that begins with a shared experience, engages employees with corporate strategy, and leads to reflection, learning, and new application. The new application, which ends in a new experience for learners to share, completes the action model.
Trainers are called to recognize learning research, realize that adults have different learning styles, and adapt training models to interactively engage and motivate employees. Additionally, they are encouraged to take responsibility for transforming their traditional models of training into learner-centered models to extract a greater ROLI.
This article is based on the book "Corporate Learning Strategies." The book summary is available online at Business Book Summaries.
Friday, October 14, 2011
Animal Spirits and Their Effects
Animal Spirits dissects standard economic theories and demonstrates their failure to account for human emotions, even though emotions have a large impact on the economy. Traditional economic theory operates under the assumption that individuals act rationally and make economic decisions based on purely economic reasons.
These economic theories are widely accepted by professional economists and are utilized in governmental policy-making. Unfortunately, traditional economic theory does not examine how the economy behaves when individuals make rational decisions based on non-economic reasons, irrational decisions based on non-economic reasons, or irrational decisions based on economic reasons.
In the quest to make economics a more scientific and calculable study, economists have largely left out the single largest influence on the economy: the animal spirits of human emotion. All animal spirits fall into one of five different categories: confidence, fairness, corruption, money illusion, and storytelling.
All of these categories have strong effects on the current economy, and their influence must be taken into account when creating government policy and making economic predictions. Ignoring the fact that human emotions affect purchasing and financial decisions only serves to create policy that will not hold up to these constantly-changing animal spirits.
By accepting and understanding these emotions, however, economists and policy makers can create more effective policies and plans. These policies and plans will not be permanent, however, and should change according to the cultural, economic, and emotional climates of the time.
For example, when banks stopped becoming mortgage holders and just became mortgage initiators, policy did not keep up with this change. Traditionally, banks would approve individuals for mortgages and then hold the mortgages themselves.
Because they held the mortgages, it prevented them from writing mortgages that people could not afford because they did not want to end up with the property or losing out on mortgage payments. Then, in the 2000s, banks began to sell the mortgages they had to other financial institutions.
These financial institutions did not know about the fiscal standing of the mortgages they held because the banks had divided individual mortgages into parts and sold the different parts to different institutions. Because of the large signing fees the banks earned when they approved individuals for mortgages, and the fact that they planned on selling the mortgages after they were signed, the banks approved people who could not actually afford them.
Because policy did not take this into account, the real estate bubble grew and eventually crashed once the individuals who received mortgages they could not afford began to have their homes foreclosed upon. This is just one example of the many ways in which animal spirits can affect the economy.
This article is based on the book "Animal Spirits." The book summary is available online at Business Book Summaries.
These economic theories are widely accepted by professional economists and are utilized in governmental policy-making. Unfortunately, traditional economic theory does not examine how the economy behaves when individuals make rational decisions based on non-economic reasons, irrational decisions based on non-economic reasons, or irrational decisions based on economic reasons.
In the quest to make economics a more scientific and calculable study, economists have largely left out the single largest influence on the economy: the animal spirits of human emotion. All animal spirits fall into one of five different categories: confidence, fairness, corruption, money illusion, and storytelling.
All of these categories have strong effects on the current economy, and their influence must be taken into account when creating government policy and making economic predictions. Ignoring the fact that human emotions affect purchasing and financial decisions only serves to create policy that will not hold up to these constantly-changing animal spirits.
By accepting and understanding these emotions, however, economists and policy makers can create more effective policies and plans. These policies and plans will not be permanent, however, and should change according to the cultural, economic, and emotional climates of the time.
For example, when banks stopped becoming mortgage holders and just became mortgage initiators, policy did not keep up with this change. Traditionally, banks would approve individuals for mortgages and then hold the mortgages themselves.
Because they held the mortgages, it prevented them from writing mortgages that people could not afford because they did not want to end up with the property or losing out on mortgage payments. Then, in the 2000s, banks began to sell the mortgages they had to other financial institutions.
These financial institutions did not know about the fiscal standing of the mortgages they held because the banks had divided individual mortgages into parts and sold the different parts to different institutions. Because of the large signing fees the banks earned when they approved individuals for mortgages, and the fact that they planned on selling the mortgages after they were signed, the banks approved people who could not actually afford them.
Because policy did not take this into account, the real estate bubble grew and eventually crashed once the individuals who received mortgages they could not afford began to have their homes foreclosed upon. This is just one example of the many ways in which animal spirits can affect the economy.
This article is based on the book "Animal Spirits." The book summary is available online at Business Book Summaries.
Thursday, October 13, 2011
Clarifying Intent
A very important aspect in the art of convening is defining the desired result or intention of the meeting. This step is necessary because if a leader does not fully consider the intention of a meeting, the intentions can be confusing or conflicting.
The biggest challenge conveners face when trying to define their intent is doubt. Doubt can manifest itself in the form of fear.
It is important for a convener to be fearless when examining their intentions and to consider how those intentions align with who she is by asking the following questions:
By clarifying intentions, meeting leaders identify motives or desires that might distract them or others from the primary goal. It takes patience, but conveners should try to look past their immediate conclusions and try to examine their deepest intent.
Armed with the knowledge of their true intentions, conveners will have confidence and energy to pursue the next steps toward authentic engagement. One good way for meeting leaders to do this is to sit down and write for at least 30 minutes.
They should first ask themselves, "Who am I and what am I doing right now?" Then, they should take that self-knowledge into consideration while writing down an intention for their next meeting or gathering.
This article is based on the book "The Art of Convening." The book summary is available online at Business Book Summaries.
The biggest challenge conveners face when trying to define their intent is doubt. Doubt can manifest itself in the form of fear.
It is important for a convener to be fearless when examining their intentions and to consider how those intentions align with who she is by asking the following questions:
- What are my intentions?
- Are they in line with who I am?
- How will we relate to one another?
By clarifying intentions, meeting leaders identify motives or desires that might distract them or others from the primary goal. It takes patience, but conveners should try to look past their immediate conclusions and try to examine their deepest intent.
Armed with the knowledge of their true intentions, conveners will have confidence and energy to pursue the next steps toward authentic engagement. One good way for meeting leaders to do this is to sit down and write for at least 30 minutes.
They should first ask themselves, "Who am I and what am I doing right now?" Then, they should take that self-knowledge into consideration while writing down an intention for their next meeting or gathering.
This article is based on the book "The Art of Convening." The book summary is available online at Business Book Summaries.
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