This 'State of Working America' graph from the Economic Policy Institute illustrates annual growth rates in productivity versus compensation during periods of economic expansion.
Or why we're now all working harder for less.
Nothing you haven't read in SunTzu's 'Art Of War' but the aerial combat tactics developed by World War I flying ace Oswald Boelcke struck me as similarly useful for winning new business:
– Try to secure advantages before you attack. If possible, keep the sun behind you.
– Always carry through an attack when you have started it.
– Fire only at close range and only when your opponent is properly in your sights.
– Always keep your eye on your opponent, and never let yourself be deceived by ruses.
– In any form of attack, it is essential to assail your opponent from behind.
– If your opponent dives on you, do not try to evade his onslaught, but fly to meet it.
– When over the enemy's lines, never forget your own line of retreat.
Boelcke and his pilots flew only in large well-organized
formations dubbed "circuses." Any Allied plane that came within their part of the sky was doomed.
But even as his own kill score grew to 40 Boelcke cared little for his personal record: "Everything depends on sticking together when the staffel (squadron) goes into battle. It does not matter who actually scores the victory as long as the staffel wins."
'The Father Of Air Fighting Tactics' crashed and died after a mid-air collision with one of his own pilots and was buried in the cathedral at Cambrai.
British pilots at the POW camp at Osnabrück sent a condolence card.
Baron Von Richthofen reflected, "I am after all only a combat pilot, but Boelcke, he was a hero."
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STEP 2: Round up a bunch of unemployed friends to be
STEP 3: Raise $1 billion of equity. (This is the
only tricky step. And it's not that tricky. See below.*)
STEP 4: Borrow $9 billion from the Fed at an annual
cost of 0.25%.
STEP 5: Buy $10 billion of 30-year Treasuries paying
STEP 6: Sit back and watch the cash flow in.
At this spread, you should be earning at least 4% per year on your
$10 billion of capital, or $400 million. Sure, there's some risk that
the Fed will grow a backbone and raise short rates, but there's not much
risk. (They have an economy to
fix and banks to secretly recapitalize). And in any event, if the Fed
raises short rates, making your $1 billion will just take a bit longer. (And if they REALLY raise rates, causing you to actually lose money, it
will be someone else's problem.)
You'll have made $400 million in a single year! So pay yourself a
fat salary for all your hard work. And pay your "bankers" fat salaries
for all their hard work (But don't worry--your bankers won't actually
have to do anything. You'll just need one of them to borrow the money
from the Fed and buy the Treasuries, which he will be able to do
part-time.) At the end of the year, celebrate. It's bonus time!
Don't be greedy. Pay yourself and your bankers the industry-standard
compensation ratio of 50% of revenue. Your revenue was $400 million,
so that creates a $200 million bonus pool. Pay each of your unemployed friends
bankers, say, $1 million. And give yourself the rest for being such a
smart entrepreneur and creating all the jobs and value.
Now, you've already made at least $150 million, so it doesn't really
matter what happens next. But you're in this for the world's easiest $1
So proceed to Step 7.
STEP 7: Go public. After bonuses,
your bank will be earning about $200 million a year, your capital ratio
will be super-strong (10% equity-to-debt!), and your balance sheet will
be clean as a whistle (all risk-free Treasuries!). So you ought to be
able to persuade investors
to pay you at least 20-times earnings, or a valuation of $4 billion. Sell 25% of the company for $1 billion.
STEP 8: Use your $1 billion of new equity to borrow
another $9 billion at 0.25% from the Fed. Buy another $9 billion of
Treasuries. Collect another $400 million a year. Pay yourself and your
team bonuses that are twice as large as last year's. You deserve it! And you're now about $500 million to the good.
STEP 9: Wait for your stock to double or triple, which won't take long given your amazing growth trajectory and clean balance sheet. When your market cap hits $10 billion, sell another 10% of the company for $1 billion. Now you're really ready to grow.
STEP 10: If you want to get fancy and get nice
profiles written about you in business magazines, start buying branch
networks from defunct banks (the FDIC will pay you to take them) and
start making actual loans. Also, start hiring trading desks to gamble
on things more exotic than Treasuries. Yes, all this sounds risky, but
just remember--the risk isn't yours, and you're already $500 million to
STEP 11: Sell $500 million of your stock to a
"strategic investor" and let the rest ride. Don't worry, if your
traders and loan officers turn out to be idiots or the Fed suddenly
raises rates, the taxpayers will handle it. And you've already made
your $1 billion.
So, congratulations, you're now a billionaire! Now all there is left
to do is celebrate!
* If you've been paying attention, you will note that the only
potentially tricky step in this process is the "raise $1 billion of
equity." Where, exactly, are you going to get $1 billion of equity? Well, you will have to do some selling there.
Basically, you'll have to tell a few investors about your awesome new
business plan (see above) that will earn them returns of at least 20%
on their equity from Day 1. A 20% return on equity is a lot, especially
when the return is largely risk free. So you should have no problem
raising that $1 billion of equity.Given the government's desperate desire to get banks to start lending
again, you might also want to try to hit up the government for some
funds. The pitch will be simple: Old banks aren't lending because
they're hiding embedded losses and need to protect their balance
sheets. You don't have that problem. You'll use the equity to LEND. (And you will use it to lend! You don't have to say that you're going
to lend it to the US government. None of the other banks are saying
Via Business Insider
View your $117,000 share here. (Roll over figures for explanation.)
...is 12 trillion dollars.
Should make it a bit easier to explain to the grandkids.
Yeah, yeah, it came out when Reagan was president, but its insights about time management and accentuating a person's strengths rather than managing their weaknesses are more timely than ever.
Habit 1: Be proactive
Change starts from within. Most people react to external forces. To lead effectively, you have to overcome that natural tendency.
Habit 2: Begin with the end in mind
You cannot lead unless you know where you want to get to.
Habit 3: Put first things first
You need to have a very clear view of what is important, so that you know what to spend time on. Note that this often means leaving your comfort zone by acting on tasks that you don't naturally like or feel competent in performing.
Habit 4: Think win/win
Seek agreement and relationships that are mutually beneficial. In cases in which a win/win deal cannot be achieved, accept that agreeing on "no deal" may be the best alternative. In developing an organizational culture, be sure to reward win/win behavior among employees, and avoid inadvertently rewarding win/lose behavior.
Habit 5: Seek first to understand, then to be understood
First seek to understand the other person, and only then try to be understood. Stephen Covey presents this habit as the most important principle of inter-personal relations. Effective listening is not simply echoing what the other person has said through the lens of your own experience. Rather, it is putting yourself in the mindset of the other person, listening empathetically for both feeling and meaning.
Habit 6: Synergize
Through trustful communication, find ways to leverage individual differences to create a whole that is greater than the sum of its parts. Through mutual trust and understanding, people can often solve conflicts and find better solutions than would have been obtained through either person's own solution.
Habit 7: Sharpen the saw
Take time out from production to build production capacity through personal renewal of the physical, mental, social/emotional, and spiritual dimensions. Maintain a balance among these dimensions.
Habit 8: Refer to 1 thru 7 with frequency.
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When Netflix first appeared I thought they were one of the most powerful examples of how the internet could fundamentally and permanently change our lives; no more rushing to the video store to avoid late fees, or discovering Blockbuster don't carry "Saturday Night Fever." (Incredibly, they still don't.)
So it's with interest I read through this 127-page online slideshow of their core beliefs.
Above, 'Nine Behaviors And Skills' they look for in potential––and current––employees.
[Thanks to Michelle Roufa for the post suggestion.]
So act like one.
Find your One Simple Thing – The strongest brands in the world own a thought. If you don’t create an OST for yourself, the market will create one for you.
Work the Network – It’s your lifeline.
Breakthrough the clutter – Be original in your outreach, people are overloaded as it is. Make it compelling.
Your resume is your ad – And we all know how much people love to look at ads....so make it stand out.
Your wardrobe matters – Really? Clearly some don’t realize it, so it must be said.
Your questions matter – Ask….care enough to learn about their business.
Follow up…forever – Your network should remain as strong through employment and unemployment.