The Vector Group

Unsettled Regions and Future Proofing

2011-02-24T20:33:00.000-08:00

by George Danellis

It's safe to say that you'll have noticed the rapidly increasing prices at the fuel pump. If you're a business leader, I'd say that why prices have risen the past few weeks isn't nearly as important as what it tells you about planning for future events that can impact your organization.

Let's be honest: short-term perspectives are the norm in business today. And that's not just the case for publicly-traded ones beholden to the mantra of "shareholder value". Many privately held companies, especially in today's tough economic environment, are likewise hard-pressed to look much beyond this quarter's results.

Companies that have previously acted to cut the waste from their manufacturing, or shipping and transportation energy use (including corporate travel), are at a distinct advantage with the current trending in energy prices. Those that haven't yet done so are paying the (literal) price. And if your supply chain is particularly petroleum-intensive you will soon experience the results of additional exposure to the increasing price of oil.

Leaders of some companies still believe investments in sustainability are a cost and a fad. Others just don't know how to effectively act - there is no established road map to become more sustainable in a way that simultaneously makes your business more profitable and resilient.

But the companies that have engaged their workforces and integrated sustainability thinking throughout their enterprises are more likely to have developed the capacity to think ahead. Those that have gone through the process of future-proofing are even better off. This natural offshoot of a mature corporate sustainability program entails the anticipation of future developments outside a company's control, and acting to minimize potential negative consequences while seizing on opportunities.

Have you ever wondered why WalMart established it's Supply Chain Initiative? Well, the vast majority of it's ecological footprint resides in it's supply chain. WalMart recognizes the significant risk of not addressing it's suppliers GHG and other impacts. So now also do it's suppliers.

We live in an age of increasing resource scarcity and a globalized marketplace, where geo-political instability half-way around the world is just one factor that can directly impact your bottom line. Companies that have developed and acted on a sustainability mindset are better able to weather rapid and seemingly unexpected changes in the business environment.

Zero Waste, and Why Good Is Not The Enemy of Great

2011-02-12T18:24:00.000-08:00

by George Danellis

Last weekend was Steamboat Springs, Colorado's 98th Winter Carnival. Yes, and that's 98 straight! Our local Zero Waste Alliance has recently made the decision to start working with winter events. So it seemed reasonable to take on the greatest of our cold-season shindigs, the Winter Carnival. If you're not familiar, Zero Waste is an organization devoted to the elimination of waste and toxics. Here in Steamboat Springs our focus is on diverting waste from the landfill while raising awareness of both local citizenry and visitors to the impacts of today's generally-accepted consumption behaviors.

We definitely learned a bunch from the weekend. In addition to attempting a cold weather event (thank goodness it had warmed up from the low for the week of minus 36), we hadn't attempted any events where control of vendor supplies was quite so limited.

At the end of the weekend, we had affected only a slight diversion of waste into recycling or compost. This was in comparison to the great successes of recent summers. In 2010, we would have less than a 33 gallon trash bag go to the landfill from an outdoor concert for 2000+ reveling, sun-soaked music fans.

It would have been easy to hang our heads that we hadn't successfully executed on this effort. However, just being present and able to share with people our approach to waste was incredibly valuable. Those who had been somewhat educated by Zero Waste previously were quick to analyze their own items and lament when anything needed to go in the "Trash" bin. Others marveled at how we would take apart their hot cocoa cups and lids to investigate their compost- or recyclability. In talking with the Chairperson of Zero Waste how I felt we could do better, she pointed out the importance of not letting good be the enemy of great.

I think Jim Collins had it right in his business classic "Good To Great" when he says that 'good is the enemy of great'. But when it comes to sustainability initiatives in the early development stages, that ideal just doesn't hold water. Hey, we all want to hit home runs. But I don't know too many who do so without first learning how to regularly get on base.

When it comes to sustainability you just need to get in the game. It's only then that you figure out how to improve your process to both better manage current initiatives, and select new ones.

Don't let good be the enemy of your coming greatness.

Opportunity Green 2011: Sustainability in Action

2011-01-24T15:56:00.000-08:00

Jeff Hayes

Last night we kicked off Opportunity Green's 2011 sustainability program. Karen Solomon (Co-founder, Opportunity Green) hosted the G-Team at her place in the marina. While it’s hard to believe that we’re already planning our 2011 effort, I also see it as a testament to our team’s persistence and enthusiasm. This will be the fourth year OG puts resources into reducing the negative impacts that result from our conference, and reporting our findings back to you. Here’s the report from our 2009 conference.

Barent Roth (Executive Director, Sustainable Works), Karen and I are really pumped that we’ll have so much lead-time going in to this year’s conference. Last year we started planning just a few months prior, and between a short lead-time, moving to a new venue, and the fact that the US East Coast (where many of our sponsors are headquartered) goes dark in August, we were really up against it.

Coordinating this type of effort across multiple organizations and time zones is complicated. Over the course of 2011 I’ll be highlighting our team’s progress, sharing some war stories - and maybe even save you and your green team some time and energy as a result. At the very least I hope it’ll be entertaining reading.

Some of 2010’s ‘lessons learned’ were:

When it comes to executing a sustainability plan, downstream thinking can be just as important as upstream thinking. We diverted liquids introduced to our system (you’d call it ‘backwash’) so that paper could be collected in the same bins as cans & bottles - but we’d never field-tested the actual diversion process. Our team learned the hard way that just because a system looks like it can accommodate 50 gallons of backwash per-go doesn’t mean that it actually can. Imagine the horror of standing ankle-deep in coffee and soda backwash!

Feelings count. Transparency - via written and signed agreements - is critical to avoiding hurting the people we respect and love. When misunderstandings flair up, energy gets diverted away from the mission at hand. Patching-up formerly strong relationships is wasteful, and its the kind of waste that can only be converted into value by by setting clear boundaries, needs and expectations.

A clearly defined objective is critical, and everyone on the team needs to buy-in to that objective. Without aligned intentions it’s nearly impossible to keep volunteers and staff focused and motivated over the long-haul. The Main Thing for 2010’s G-Team: “Use the Global Reporting Initiative framework to produce a sustainability report for Opportunity Green stakeholders by February 28, 2011”. I'll post a progress update on how The Main Thing 2010 is coming along in a future posting.

We love bringing this conference to the global business community. Karen, Barent and I hope to see you again in 2011! This year we’ll be running November 9 thru 11 - mark your calendars for another great event.

Intro to Sustainability Reporting

2011-01-14T22:23:00.000-08:00

Jeff Hayes

I remember the absolute dread I used to feel in high school when report cards came out. I’m a visual learner, not a book learner. I didn’t “relate” to most of my subjects. I was interested in everything – just not algebra, history & civics. In the Hayes house, the day report cards came out was stressful for everyone.

But analyzing metrics like report cards is one way we progress. It also let's objective third parties draw conclusions about us. How could Harvard or Stanford compare one student to another without standards? Report cards let them make apples-to-apples comparisons and feel good about the choices they make.

And those are the same reasons why the US Fortune 100’s are adopting an Integrated Reporting frameworks.

Integrated Reporting extends traditional business reporting, to include the benefits and harm their organization produces (the positive & negative impacts) regarding ecosystems, people, and communities. This paints a more complete view of the business’ actual performance. As you can imagine, the merits of Integrated Reporting are still being debated even as the US Fortune 100’s are figuring which framework to adopt.

For organizations just getting started on their Corporate Sustainability journey, the advantages of adapting an Integrated Reporting framework are worth noting:

Apples-to-apples comparisons are made easy - partners, customers and clients can quickly evaluate a business regarding its capacity for and success with sustainability.
Shows thought-leadership – implies to those-in-the-know (like Walmart) that you “get it”.
In 2010, the SEC sent a signal by offering guidance on how publicly-traded businesses should disclose risks related to climate change.
Accelerate your organization’s internal adoption, learning, growth and development.
Strengthen relationships with supply-chain partners.

As critical Integrated Reporting is, the jury is still out as to which one to go with. Some companies don’t adopt a widely accepted framework and develop one of their own. The three best-known Integrated Reporting frameworks in 2011 are:

Global Reporting Initiative (GRI).
Carbon Disclosure Project.
The Climate Registry.

If you’re ready to look harder at your Integrated Reporting options then the best way to get started is by reaching out to your downstream customers and your upstream suppliers and vendors, and ask:

What frameworks are they considering?
What frameworks are they using?
Are there data in your possession that could make their process more valuable?
What would they like to see from you?

I dreaded seeing my high school report cards for the same reason executives avoid Integrated Reporting. Criteria appear arbitrary at first, and out of context with their industry, sector or mission. They don’t want to be judged. And what happens if their ‘score’ turns out to paint a less-than-rosy picture of the company? Will they get grounded? No surfing for two weeks?

In the short-term, Integrated Reporting can look like more trouble than it’s worth. But in the long-term, the success of your Corporate Sustainability journey will be determined by answering these and other challenging questions.

One Way To Increase Light Rail Ridership

2011-01-10T09:43:00.000-08:00

Jeff Hayes

After a great visit this weekend with my nieces and nephews, I was heading to Seattle airport and jumped on the light rail. The train was packed. I was stressing about making my flight. So imagine my surprise when I got on the train and saw three college girls standing in front of me in their underpants.

It turns out that yesterday was Seattle's 2nd Annual Ride Light Rail In Your Underpants Day (or something like that). People kept getting on the train and taking their pants off.

By the time we were halfway to SeaTac the train was full of college kids in their underpants – reminded me a little of Burning Man.

They were excited to be part of something bigger than themselves, something fun, and something that raised public awareness around transit solutions - and all the better if it was a little naughty. They were tossing around terms like “increased ridership” and “reduced carbon footprint” like sustainability pros. They were also laughing and joking with total strangers – and no alcohol was involved. In my experience that’s pretty unusual.

When I had gotten on the train I was stressed about making my flight - but 30 seconds later I was trying not to giggle. I was reminded what a lucky guy I am. Who says sustainability has to be serious business all the time?

Here's a link to the story: http://www.seattlepi.com/local/433089_nopants09.html

And here's a shot from my phone - brrrr!

What Exactly Is Corporate Sustainability?

2010-12-20T11:33:00.000-08:00

by Jeff Hayes

For companies in the middle-market, Corporate Sustainability is increasingly seen as an opportunity to reduce costs, drive innovation, engage employees, manage risk and grow market-share. Harvard Business Review and Fast Company say Corporate Sustainability is "the next business mega-trend”. It’s driving management-level job growth, a surge in infrastructure contracting, and an explosion of venture capital. But at a practical level, in the context of running those organizations, what is it – exactly?

First let's define 'Corporate Sustainability'.

Corporate Sustainability is a business approach that prioritizes profits – but not at the expense of ecosystems, people or their communities.

Imagine: a proven money manager offers you an exciting opportunity to invest in his fund. You're tempted - until you realize your dividends will be paid by drawing-down principal from subsequent investments. So if he can't sustain new investor flow, his ability to pay your dividends will become unsustainable.

It used to be that ‘corporate sustainability’ meant ‘profitability’. But today, at Fortune 100's around the globe, profitability is seen as just one aspect of corporate sustainability.

For the last 100 years or so, we business-people have been drawing-down nature’s principal and calling it a dividend earned - a sort of enviro-Ponzi scheme. These methods served us well for several generations. Quality of life and life expectancy both increased significantly. As long as 'natural capital' was abundant and accessible, that draw-down was simply the best way of doing business. But now? Ignoring limitations or risks associated with accessing natural capital, while saying its "the cost of doing business"? For better or worse, those days are gone.

If the great-accountant-in-the-sky drew up our annual balance sheet for natural resources, we could see in black-and-white how our liabilities have grown more rapidly than our assets. When liabilities grow and assets shrink, the value of equity can only head in one direction - down.

Today, business executives are beginning to see that profitable growth doesn't necessarily have to come at the expense of society or ecosystems. There's a growing number of well-respected companies who are de-coupling profitable growth from doing harm.

2010’s rock stars include: New Belgium Brewing, Interface Carpet and Baxter. These companies have built profitable business models and improved brand reputation while actively reducing their negative impacts on ecosystems, people and communities.

Since 2006 Baxter’s program has achieved an annual 3-4 times return-on-investment (when including cost avoidance). They’ve also reduced their year-to-year negative impacts regarding regulated materials, energy, and water. They’re a powerful example of what is possible when a business includes the principles of Corporate Sustainability in their growth plan.

The Fortune 100's are working to de-couple financial growth from their negative environmental and social impacts. Global retailers and mega-brands are scrutinizing Corporate Sustainability from every angle. Many have already positioned themselves - a few by developing their own internal supply-chain standards, many others by taking smaller steps. Middle market companies lag slightly behind their larger customers and competitors. They're also well-positioned to take advantage of Corporate Sustainability - what we call a sustainable business mindset.

In the next few years it’s a safe bet that Corporate Sustainability is going to change the way we do business. Early adopters like Baxter and Interface are already reaping the benefits. Doubters will be caught flat-footed, and be forced to play catch-up while suffering competitive disadvantage. Chances are good that your competition is examining how they can take best advantage of their own sustainable business mindset.

Where does your company stand?

Michael Crooke: Implementing Corporate Sustainability, One Step at a Time

2010-10-15T09:26:00.000-07:00

At the recent Opportunity Green Conference in Los Angeles, former Patagonia CEO and keynote speaker Dr. Michael Crooke from Pepperdine University's Graziado School of Business Management, shared his vision for effectively integrating sustainability principles into companies.

Here is Dr. Crooke addressing a question from Sustainable Wealth Adviser Greg Wendt on the metrics we can use in evaluating companies performance given the negative impacts inherent in doing business. Dr. Crooke is quick to point out that "there are no sustainable companies... so we can get hypothetical or we can start doing something about it."

5 Things Every Entrepreneur Needs to Get Right

2010-08-26T11:36:00.000-07:00

posted by Jeff Hayes

They weren’t kidding when they predicted a flat economic recovery. But in spite of all the bad news, there are still lots of optimistic entrepreneurs out there who are opening new businesses or expanding existing ones.

I’ve put together a list of five key components to running a successful business. First-time entrepreneurs - if you want to accelerate your profitability you should pay close attention to these suggestions and take action immediately. Those of you with a bit more sand in your teeth, consider these fun, helpful reminders of where you were when you got started (isn’t it fun to laugh about what we didn’t know!) and how much you’ve learned about running your business.

Five things every entrepreneur needs to get right are:

Budget
Set and Stick to Goals
Delegate
Network
Have fun

1. Budget
A budget to a business-owner is like a compass is to a sailor – you’ll stay lost without one. A budget isn’t a complete tool set by itself, but it’s a big step towards becoming a responsible custodian of your business. A budget sets a high-bar for what you can expect from employees and associates. It makes your expectations crystal clear. If you’re struggling to put one together, send me an email at jeff@the-vector-group.com and I’ll send you my template.

2. Set and Stick to Goals
If your people are anything like my people they appreciate being told what to focus on and then being held accountable for doing it. When you consistently reset your goals and priorities (prior to measuring the results, of course) you’re teaching your staff to not trust you – you're giving them another great “my terrible boss” story to share around the water cooler. Moving your target willy-nilly creates chaos. Chaos damages profitability. If yearly goals are too difficult for you to track then set quarterly ones. This way you're giving your people exciting stories to share about your high integrity and grace under pressure.

3. Delegate
With your budget and goals in place, delegating tasks becomes much easier. Without a budget and goals in place its very very very difficult to delegate effectively. Posting your goals (quarterly or annual ones) in public makes it even easier for you to delegate effectively. And the time you free-up can go towards building your business, not towards dealing with today’s emergency. My tips here: congratulate your people in public, correct them in private, and before you say anything always say “thank you, good work” when you review progress.

4. Network
Leaders who aren't networking right now are in trouble. They need to pull their head out of the, erm, sand and start scanning their horizon for new opportunities. But networking isn’t showing up to events where you know a couple people and hanging out with them hoping for the best. I’m talking about becoming a master networker – and its easier than you think. My friend Bill Saleeby just wrote a great book on mastering this critical skill. Make no mistake about it, networking is an art. Like any art-form, mastering requires practice. If you personally aren’t willing to master the art then make sure you’ve got people on your team who are already master networkers - and maybe some of their skills will rub off on you in the bargain.

5. Have fun
This is another critical-yet-often-overlooked variable in the business success equation. My friend Greg Wendt often tells me “More joy per now!” and we both do our best to live our lives and run our businesses with that spirit and intention. If you’re struggling because business is down or because you’ve got an especially willful or resistant team-member then the idea of having fun can sound flip or trite - but without fun, what’s the point? You simply can’t put this one off or you’ll never be truly successful in the deepest sense of that word. Joy will feed your success and attract the right people into your circle. Celebrate achieving your goals! Laugh about your mis-steps! This path is the surest way to running a joyful business.

If you’re in Los Angeles on September 13, you can learn specific actions to take around these 5 steps, and how to embed their DNA directly into your business model. I call it my Make It Happen workshop - hope you can make it.

Opportunity Green 2010

2010-08-07T17:31:00.000-07:00

posted by Jeff Hayes

First some transparency: I'm Sustainability Director for Opportunity Green.

I can hear you thinking, “Another green business conference?” In the last few years these conferences have become widespread, and for good reason - the adoption rate of sustainability in corporate America is turning those types of practices into the next business mega-trend.

So how is Opportunity Green different? Well, for starters, the venue is Unocal's former world headquarters, which has been turned into a premier film production site, Los Angeles Center Studios. The conference is also aiming to become a laboratory for transparency and best practices. And this year, our stakeholder report is being developed to comply with the Global Reporting Index's framework.

This is Opportunity Green's 4th year bringing together business leaders, innovators, and change-agents. Attendees will gain actionable ideas, collaborative relationships, and key information about how to improve their company's sustainable business practices. Hands-on product demonstrations and expert speakers will be featured - including executives directly responsible for sustainability at companies like Eastman, PG&E, and News Corp.

Opportunity Green 2010 runs September 22-24, 2010. This year’s theme is "interconnect". The conference's goal is to be an incubator for the sustainable business ideas and practices here in the US and around the world.

As Sustainability Director I'm responsible for tracking resource consumption and reporting this data, along with details on our process, to all of our stakeholders - in other words, to you.

I hope you can make it! If you do, please be sure to ask any G-Team member "What’s the Main Thing?” They'll be easy to find - they'll be manning resource recovery stations all over the venue and carting those resources to our measurement & management station (i.e., the scales and dumpsters).

I'd be remiss if I didn't thank Neha Shaw and Edward Pakdaman of Sustainable Works for developing and managing the tactical components of our plan in 2009 and again in 2010 - thank you both of you!

Here's video of our team answering that question at our 2009 conference.

When Waste is The Value - BuyMyTronic's 30% Growth per Month

2010-07-26T12:09:00.000-07:00

We all know by now that savvy businesses are discovering the benefits of converting waste into financial value. Operational efficiency has been shown time and again to offer significant upside. Brett Mosley's BuyMyTronics.com has a slightly different take - his entire business model is based on waste. And a pretty-well guaranteed supply of it for that matter.

In a world where gadget-craving is the newest addiction, BuyMyTronic's.com has stepped in to fill a niche long needing filling - what to do with all of those older or broken electronic gizmos that no longer have immediate value to owners and yet seem to have nowhere purposeful to go. After discovering that it cost more to get his video camera fixed than to buy a new one, Mosely sensed a business opportunity. After selling some repaired iPods (his original business was BuyMyBrokeniPod.com), he was blown away by how much people were willing to pay for a refurbished unit.

"I'd always had that idea that it would be cool if you could buy things from people at a reasonable price and then have all of your labor and repairs done in-house. You could sell them. It was always something I had been frustrated with and said, 'someone should do something about this.' The opportunity presented itself and I seized the day," he said.

And so a business was born. Mosley today buys many kinds of electronic goods, does repairs, and then sells them on eBay and to a few larger re-sellers. It's an equitable and environmentally beneficial solution to a growing challenge: what to do with all of that e-waste. In 2007 the EPA estimated that of the 2.25 million tons of TV's, cell-phones and computers ready for disposal, only 18% were recycled. The remaining 82% went to landfills, with electronics making up 75% of toxins infiltrating landfill space, threatening soil and groundwater. Today Mosley projects $2 million to $3 million in sales, with the company buying more than 30,000 devices, and employing 13 people. And when a device cannot be repaired, BuyMyTronics ensures that it get responsibly recycled.

"I'm paying people to recycle, essentially. I'm actually paying really good money, and the concept sells really well with people," Mosley notes.

Additionally the business is 100% wind-powered, and by salvaging re-usable parts BuyMyTronics reduces the number of new components needing to be manufactured.

As the challenge of how to dispose of broken or outdated electronic devices has become more pressing, BuyMyTronics is showing that an entrepreneurial approach to problems can transform them into golden opportunity.

A 21st Century Sun Tzu - Managing Your Performance

2010-04-06T18:10:00.000-07:00

submitted by The Vector Group's CEO, Jeff Hayes

This month's Vanity Fair has a really great profile of US four-star General David Petreaus. I was skeptical at first – how could a tool of the entertainment and fashion industries not be biased against the Iraq war? I personally think he’s doing an amazing job over there so I almost didn’t read the article. Do yourself a favor – give it a read.

When he commanded multi-national forces Iraq (after two previous tours) some pundits in the US media labeled him “General Betray Us”. Lots of my friends jumped on this characterization, but it turns out that it was quite unfounded. He couldn’t be a more committed patriot.

Petraeus' achievements include: re-writing US military doctrine, implementing a radical collaboration strategy under conditions more trying than you or I could ever imagine, and actually turning around the quagmire in Iraq. He's now Commander of the U.S. Central Command.

Petraeus’ combat philosophy is unconventional to say the least. Notions like: don't shoot first, human capital has great value, establish security to build community - don’t make you a popular Army officer - thankfully Petraues isn’t interested in being popular. His approach is very practical and it reminds me of the 6th century Chinese General Sun Tzu. Sun Tzu developed a code and method for assuring victory that we call The Art Of War and it describes the virtuous method for resolving conflict he dubbed “taking whole".

Here are five lessons on “military victory” that Petraeus and Sun Tzu see as critical to effective performance management:

Budget realistically – this was one of Rumsfeld’s follies.
Transparency can be a valuable tactic – follow through on commitments to allies even if you have to bend the rules a bit.
The General is: Knowledge, Trustworthiness, Courage & Strictness – the Iraqis nicknamed Petraeus "King David" when his 101st Airborne Division ran security in Mosul.
Know your strengths & weaknesses while knowing also your opponent’s strengths & weaknesses – this is how victory can be consistently achieved.
True victory is “taking whole” (without armed conflict) – this requires capturing the hearts and minds of your opponents.

There’s many more analogies between Petraeus and Sun Tzu’s thinking, and I highly recommend certain translations of The Art Of War. My favorite translation is by the Denma Group, and since the text was originally shared in spoken form, its better grasped (and appreciated) as an audio book. Here's the link.

Careful What You Wish For

2009-12-09T13:01:00.000-08:00

submitted by The Vector Group's CEO, Jeff Hayes

The Vector Group brought on a new client in the spring of 2009, a beach resort in Western Samoa. Given the value I place on stating desires out loud, you’d think I would have paid closer attention when two of the partners said to me independent of each other, “I wish a tsunami would come through this place and wipe it out so we could start over.” Next time I'll stop them right there and work with them to correct that negative intention. I did ask what their tsunami protocol looked like, and if I could review it. Next time I hear anything that sounds like "if only disaster would strike" I'll definitely go a few steps deeper. Next time, in that moment, I'll have this story to share.

We encourage our clients to dream out loud. It’s the first step towards achieving their dreams. It’s also part of our strategy development process - because it’s a great tool for keeping team members in alignment. When two employees can see clearly how their personal goals intersect with the business' goals , it’s much easier to quickly get buy-in on next steps. But our clients don’t usually wish out loud about wiping themselves off the map!

Manifesting is how I got from a being musician to an animator, and from being an animation director to an outsourced COO. I started as an artist, now 20 years later I’m a business man. Someday I'll tell you that story! Manifesting is also how I turned myself from a pudgy and pale 10-year-old bookwork into a 17-year-old big-wave surfer, which led to a period of my life when I experienced great joy. When I was four I even manifested a fresh strawberry on my peanut butter and jelly sandwich - thanks to my best friend's mom. Little kids are particularly good at manifesting their desires.

Manifesting begins with a wish or a desire and I'm fortunate to have had success manifesting positive things and experiences I desire. I'm lucky to have grown up in a family that encouraged the practice. My personal vision is very clearly defined - I’ve gone so far as to write it out on paper as well as creating a vision board that I keep in front of my desk. I could tell you my personal vision and my definite date at the drop of a hat. If you’d like to hear it, I'm happy to share it with you - ask anytime.

You can imagine the chill that went through me when I heard, in August 2009, that our client’s beach resort was completely destroyed by the tsunami that swept through the South Pacific. The good news - guests, the staff and the locals were all safe, because their tsunami protocol was clear, functional and the general manager Nick followed it to the letter.Thanks to Nick, what could have been an unimaginable disaster was “merely” a major crisis. You already know the bad news.

We’re waiting for the insurance company to come through with our payment. We’ve put a third-party adjuster in place to make sure that the insurance company pays up. We’re going to rebuild. And trust me, what we’ll all wish for this time around is 15% net profitability - hopefully for 2011!

As a management consultant and outsourced COO, what I desire for all my clients is simple: business performance excellence. Thankfully before the tsunami we’d embedded a culture of accountability in the culture of the resort. Accountability is the first step towards achieving business performance excellence. And right now accountability is one of the only things keeping the business on track.

So - be careful what you wish for, and only wish for greatness. Remember - the universe is listening.

Great Conductors are great leaders first

2009-11-30T10:49:00.000-08:00

Gustavo Dudamel arrived here in Los Angeles this month. He’s 28 years old. What is there to learn about leadership from a 28-year old ?

He’s still learning to speak English but he’ll be conducting the LA Philharmonic, one of the finest in the world. He’s humble, with no preening, Hollywood veneer. His predecessor, Esa-Pekka Salonen, already revolutionized symphonic music here in LA. What's left for him to do? Alot - Gustavo wants to transform how the symphony and it's music is perceived outside of its typical audience and by doing this he believes he'll transform Los Angeles and maybe even the world. How can he believe this? Because he's already seen it happen.

Dudamel is from Barquisimeto, Venezuela. From boyhood he’s lived inside the world of music, starting with arranging his stuffed animals and toys as if they were an orchestra and conducting along to the Vienna Philharmonic. He wanted to play trombone like his father but his arms weren’t long enough – so he took up violin.

He was trained and developed in the beloved El Sistema, Venezuela’s widely-admired national music education program. When he was just 12 years old he began conducting his classmate’s ensembles. When he was 18 he became music director of the national youth orchestra, under his direction becoming world-renowned as the most electric live performance in symphonic music.

When Gustavo was asked ‘what makes a good conductor?’ he replied that “it takes more than a leader, it’s about having humility. It’s not about being a maestro and they are the orchestra. You must feel like you are a bridge connecting the composer with the orchestra.” And he added, laughing, that “of course preparation was critical” to leading successfully.

Can Dudamel’s wisdom be applied to growing a successful, productive business?

He creates deep bonds with his team. Their shared campaign for excellence is embedded as a large part of who he is. It is his essence. He’s engaged – at the front-line – in what they’re building collectively. Powerful, influential people trust him – because he consistently delivers. His enormous charisma comes partly from his willingness to share his vision with us, joyfully, clearly and concisely. Even though his English is rough his ideas come through because his voice carries both passion and authority, and experience.

Gustavo earned his spot in a community that supports him and trusts him, and is starting to love him because he's a humble man, a gifted musician, and a powerful leader. He doesn’t let himself get caught by unproductive thoughts about how it’s supposed to be, or mope about how it should be.

His patrons look forward to his performances and drool over his interpretations. Sounds to me like ‘job security’. How great would that feel?

How can you be as “lucky in leadership” as Gustavo? Start by trusting yourself. Build a community around your team’s best ideas. Measure, report, repeat. And speak with conviction and authority; that way people will listen to what you have to say too.

The Power of Everyday Thanksgiving

2009-11-26T10:42:00.001-08:00

Ok, so yes, it is Thanksgiving Day and I am sitting here writing a new post. In the interests of family and football, I'll keep it brief.

A number of people have chosen in recent days to share with me their somewhat unique, activities around Thanksgiving Day and this inspired me to suggest a few things that you, as business leaders or motivated individuals, can do to experience the remarkable power in recognizing the gifts in your lives on a daily basis.

Create a list of the top ten teachers in your life and what they taught you. If you feel like continuing on past ten, go for it. Contemplating those who have had a profound impact upon our lives is a wonderful exercise. Add to the list over time as you are reminded of more teachers or are aware of being blessed by new ones.

Another great exercise is to develop a Personal Vision Statement. I was reminded of this when a colleague recently shared with me that he and his wife's day after Thanksgiving ritual is a discussion of their Personal Visions, where they are both as individuals and as a couple. Developing a Personal Vision statement entails becoming clear about what is truly important to you, what you will give in return to attain these things, developing a plan to do so, and continually reminding yourself of these things.

A life-long friend commits to extra mindfulness meditation on Thanksgiving morning. Being with family he finds that it helps him to be less judgmental and tight on what can at times be a difficult day. In mindfulness meditation, one works to achieve a mind that is stable and calm. What we begin to discover is that this calmness or harmony is a natural aspect of the mind. Through mindfulness practice we are just developing and strengthening it, and eventually we are able to remain peacefully in our mind without struggling. Our mind naturally feels content. It is often said that a certain "friendliness" develops and from this reduced stress and a greater appreciation for all people and situations (even annoying ones) is possible. Sound great to me.

Enjoy your Thanksgiving holiday and perhaps consider your own way to reap the benefits of making Thanksgiving an everyday tradition.

Houston, we have lift off

2009-09-23T09:53:00.000-07:00

Welcome to the new blog for The Vector Group, business performance consultancy. We at The Vector Group are pleased to now be better able to share with you tips, resources and success (and failure) stories of small to medium sized businesses, and their leaders.

First, a little background on The Vector Group. We deliver business performance excellence to companies with annual turnover from $50M to funded, pre-revenue start-ups. Using an integrated toolset called Conductor customized to each client's needs, we convert brainstorms into profits, teach our clients how to move from being personality driven to policy driven, and in the process develop a better life-work balance for their leaders. Our toolset means that we can work with companies across almost all sectors, but is particularly suited to those who are feeling overwhelmed by opportunity and growth, or know that there must be a way to enjoy running their business and be more profitable doing so.

But that's enough about us for now. This blog is for you and so you will rarely see us writing about ourselves unless it serves you, our reader. So thanks for checking us out and stay tuned for future posts.