Wednesday, December 26, 2007

Questions...questions...

Take extreme capitalism with its determined one-purpose seeking mentality and try to apply this to government. Does it mean that basically there are two completely different ways for value enhancement and that mostly due to ownership issues? Questions about centralization and decentralization raise, problems around mixed interests etc.

Try applying these HBR posed questions to the whole government (not to a specific government body) and what do you get? To my mind philosophically very interesting task…

* Have we left too much cash on our balance sheet instead of raising our cash dividends or buying back our own shares?
* Do we have the optimal capital structure with the lowest weighted after-tax cost of total capital, including dept and equity?
* Do we have an operating plan that will significantly increase shareholder value, with specific metrics to monitor performance?
* Are the compensation rewards for our top executives tied closely enough to increases in shareholder value, with real penalties for nonperformance?
* Have our board members dedicated enough time and do they have sufficient industry expertise and financial incentive to maximize shareholder value?

Monday, December 10, 2007

Breaking the Silence

After busting my leg (Fawlty Towers – “to bust someone’s ass”), I feel it is appropriate to bust the silence in this blog and try to write something after more than a year. Hmm, has it really been that long?

Well, actually what I found interesting and what I wanted to comment was and article that I read in the November’s HBR. Extending You Brain: A Personal Program.

Let’s see how it goes for me.

First recommendation: “Manage by walking about. Leave the executive dining room and drop by the company cafeteria, production floor, or loading docks...” Comment: well, to be honest, this is something I should do more often. Guess it’s my laziness that keeps me going down to the same places, especially the one in the cellar. The good thing is that last week in Sweden, I didn’t choose the same turkey place, but instead went to the Hansa business centre and had some kind of a lunch there. It mainly consisted of chicken. Taste, you ask me? Was ok, but wouldn’t recommend too much… Conclusion: should broaden my horizons from this aspect a bit more…

Second recommendation: “Read funny books. Humour promotes insight and enhances your health”. This one’s quite good – a couple of weeks ago I finished a book called Changing Places by David Lodge. A good and funny read – have to thank my dear birthday guest for that. Thanks! But then again, I have a tendency to read too serious books and usually get stuck with one of them after having completed a few. Now for example I’m reading “Barbarians at the Gate”, which isn’t too funny… So, what’s the conclusion? Try to find a balance: maybe one serious book and one serious one at a time?

Third recommendation: “Play games. Activities like bridge, chess, sudoku…provide good neural workouts”. Comment: on Saturday I played poker and reasonably well to my surprise. What else? Football? Hah, I guess that doesn’t count as a game here. How about Colin McRae? Maybe. I have something for rallying, but don’t know what it is. But yes, once again, I should play some more mind stimulating games…only if I had the time…

Fourth recommendation: “Act out. At its best, play is discovery – and what you discover through improvisation is your inner actor, who can try on many roles” Which makes me say “And what should I say now?” I really don’t know, how could I change my roles. Guess that’s truly a lack of my imagination. And to some extent I have already accepted it. But honestly, I think that it is one true thing that really needs some work. Have to be more active in this sense…

Fifth recommendation: „Find what you are not learning. If you’re like most executives, you tend to ask very similar questions day to day in your professional and personal lives.“ Try to find out what you don’t seek? Well, I don’t see this as my real problem. Why? Guess I read too many different books, with no common thread. But yes, different perspective is always needed and my experience has told me to ask it from others. But do it carefully…

Sixth recommendation: „Get the most out of business trips. Travel provides excellent opportunities for jolting your brain“. Well, and how do I spend my traveling time? Reading of course. I take a pack of newspapers and read them thoroughly. If I have spare time (which I usually don’t), I read some reports or something like that. Nothing about the place that I usually go to, which is sad. And also I should speak more to locals. I have thought about that actually…

Seventh recommendation: „Take notes – and then go back and read them.“ And that I do, since about September, because the amount of information I needed to consume was a bit too much. Now I always carry a notebook with me and take notes at meetings and when reading. Strangely, most of successful people that I have met, have that habit. For example last week Intel’s director of innovation wrote down main points of our conversation. And reading them? I actually do sometimes.

Eighth recommendation: „Try new technologies“ I’m trying, but not as often as I should. Actually was thinking of buying an iPhone, but the opportunity fell out of my fingers. Next time when a friend of mine goes to the US, I will make them bring one.

Ninth recommendation: „Learn a new language or instrument“ Heh, does motorcycle count as an instrument? Anyway made licenses this summer. Today I decided to go skiing to Sweden in January. Tried to start learning drums, but the studio I was supposed to play in, closed down. And for languages: been thinking about Italian and Russian, but don’t have time. And NLP is high on the list as well.

Tenth recommendation: „Exercise, exercise, exercise“. Hah, here’s the irony, twisted my ankle yesterday in football training, so that it looks like a boxing glove at the moment. Sadly, I think that’s about it with trainings this week. But yeah, I try to do as much of it as possible and as much as is allowed by my busy schedule. Oh and lastly, maybe I should quit football and try something more civilized like tennis or golf?