IT'S NOT WHAT YOU KNOW, BUT WHO YOU KNOW???

It has been an adage for as long as I can remember: who you know is more important than what you know. It is relationships, the adage suggests, that really get you somewhere … in fact, relationships trump wisdom or any systemic knowledge central to your organization.

It is clear to me that knowledge and relationships have equal weight and both make important contributions to the success of every company. Nevertheless, the reality is that, sometimes, the "I know X" phenomenon carries such weight that it can indeed supplant a systemic approach which, in the long run, might be better for the organization by fostering healthier operations and a better communications platform.

Nevertheless, it can be challenging to persuade some people that knowledge has equal weight, since we’ve all been brought up to believe in this adage. Here is a case in point: the National Committee for Responsive Philanthropy (NCRP) recently conducted a study — reported in The New York Times — which showed that more than 100 foundations that lost 30 to 100 percent of their assets in the Madoff scandal had four or fewer board members. Now what is wrong with that?

Aaron Dorfman, executive director of the NCRP, notes that one or more people on a small homogenous board either knew — or knew someone who knew — Madoff and were aware of the fact that he paid great returns for a sustained period of time. But, Dorfman points out, “it's not enough to allow Uncle George or Grandpa to say Bernie Madoff is a great guy and (then) make an investment." Dorfman believes, and I concur, that a larger, diversified board would not have accepted this casual approach and would have instituted a system whereby criteria were established for an investment policy. According to the NYT article, the median size of the boards of foundations that are members of the Council of Foundations is 11.

If there is a system in place that reflects the size board needed for a particular organization and enables the knowledge and facts to meet the entity’s goals, then the entire board can take responsibility for decisions regarding investments or any other matter. The end result might be the same, but the solution will be arrived at because of agreed-upon criteria, rather than someone’s general impression that so-and-so is a great guy and performs well.

This appreciation for systems, regardless of what needs to be achieved in business, is not to be confused with the very fact that public relations is all about building relationships with an organization's constituencies who can make or break a business. How well you get to know the people in these constituencies is fundamental to the success of that organization. But public relations, indeed, is a system in and of itself.

Technorati Tags: National Committee for Responsive Philanthropy, The New York Times, Bernie Madoff , Aaron Dorfman, organization, Makovsky + Company, communications, public relations

SURPRISES IN THE TOP JOB

“What has surprised you most about the top job? What do you like most in people you hire? What message would you convey in a commencement speech?” These questions and more are asked of corporate leaders by The New York Times reporter Adam Bryant in the column titled, "Corner Office," in the Sunday Business Section. As in my last blog, I am focusing on some of the more unique observations made by the vice-chairman of Wal-Mart Stores, Eduardo Castro-Wright, and the CEO of Darden Restaurants, Clarence Otis, Jr. which I believe we can all learn from. These are lessons in communications, if ever there were ones.

The biggest surprise for Mr. Otis is "how amplified everything you say or do is." He elaborates that if you are thinking out loud, some thought you had, suddenly becomes a directive "even though ten seconds later in your own mind, you dismissed it." On the other hand, a disappointment for Mr. Castro-Wright is that business schools don't teach certain behavioral courses that are so critical in the leadership job: "how you talk with an employee you're firing" or "how you talk with an employee who comes to your office late at night to tell you that her daughter is sick, and she might not be able to come in the next day."

I feel Mr. Otis' next point is critical. He likes people he hires to be "comfortable with ambiguity and uncertainty" and not unmoored by people with differences regarding the same situation. "They've got their wits about them, so they're looking as much for the opportunity that's inherent in that as they are for the risk." Wise advice. Mr. Castro-Wright also hits on a key point, noting that leadership roles require both physical and emotional energy. "You're exposed so often to decisions that are emotionally charged, you have to have the balance and the energy, the emotional strength to actually do it."

"...Provide leadership in whatever area [you] choose to dedicate [your] life to," says Mr. Otis, as his key commencement message. It is an obligation for those of us who are so privileged to have elite educations, he points out. He also notes that what the individual wants to accomplish is crucial, but the person needs to make sure “that those things have some payoff for others." Obviously, he reminds us, nothing is accomplished alone.

Mr. Castro-Wright underscores in his proposed commencement message that there is no leader who can be one "if he or she doesn't have personal integrity, or if they don't deliver results, or if they don't care about the people they lead or if they don't have a passion for winning."

Technorati Tags: Makovsky + Company, The New York Times, Adam Bryant, Corner Office, Mr. Castro-Wright, Mr. Otis, Darden Restaurants, Wal-Mart, leadership, business, communications, public relations

The Most Important Leadership Lesson

I am always looking for novel perspectives on business leadership, or even reminders of leadership basics that are often forgotten. And lately I have been finding them in the series on leadership in the Sunday Business section of The New York Times in Adam Bryant’s column titled, "Corner Office," where various CEOs and senior executives answer some fundamental questions, such as: “What is the most important leadership lesson you have learned? How has your leadership changed over time?”

Here—based on interviews with the vice-chairman of Wal-Mart Stores, Eduardo Castro-Wright, and the CEO of Darden Restaurants, Clarence Otis, Jr.—are some points I found worthwhile that all of us can learn from.

I particularly like and believe in what Mr. Castro-Wright says. He makes two salient points: "Leadership is about trust. It's about being able to get people to go to places they never thought they could go. They can't do that if they don't trust you." But that trust, he implies, can only be built, and the consequent achievements it enables, "if you do not care who takes credit for" the achievement. As we know, business is a team sport, but the team, Mr. Castro-Wright implies, may be as important as any individual ego. It is no doubt why at Makovsky + Company, our "collaboration" value wins out over the others when we recognize role-modeling via our We Achieve program.

The point is reinforced by Mr. Otis from another angle. "Leaders really think about others first. They think about the people on the team, trying to help them get the job done...and think last about 'what does this mean for me.'" He cites his years in the theatre and his reliance on others in the cast as preparing him for his current role. "You could have your piece [lines] down, but if one person on the team [cast] doesn't, you're in trouble."

Technorati Tags: Adam Bryant, Corner Office, Makovsky + Company, Mr. Castro-Wright, Mr. Otis

JUST A SIMPLE LID, Please.

Am I a petty guy just because I want to buy a cup of coffee with a solid lid – with no hole in it -- that stops it from spilling?

And what the heck does this have to do with smart public relations?

Well, let me tell you the story. It seems this happens to me mostly in airports, but it could happen anywhere.

You go to Starbucks, or any one of the others. You have a suitcase and a briefcase to carry -- and you get handed an aroma-packed tall paper cup of coffee with a lid that has a sipping hole. So you can't put it in a bag, obviously. You need a full hand to carry it. "

Do you have a lid without a hole in it ?" I ask. Of course, 90 percent of the time the answer is "no!" So then I ask, "Do you have a tape I can put over the hole so I can put this in a bag and don't have to carry my briefcase and suitcase in one hand?" You know the answer. And so now I think twice, particularly at airports, about buying the cup of coffee I so desperately want. And then there's the brewmeister's attitudes when I make my request. They don't care. How can they not get it?

Flat lids without holes could not be more expensive than the "holy ones." Are they? I refuse to be vanquished on this one. Isn't this basic customer satisfaction? Good public relations? Even if I am in a minority, it seems so logical to at least provide a choice.

Technorati Tags: coffee, Starbucks, Makovsky + Company, communications, public relations