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SUCCESS WITH HONOR
A GUIDE TO BUSINESS ETHICS Recent
headlines notwithstanding, it is possible for
business leaders to guide their companies to the
heights of success without sacrificing the virtues
that most of us value.
In fact, according to business consultant
Robert C. Solomon, sound ethics is a necessary
precondition of any successful, long-term business
enterprise. He maintains that money, while not a
bad thing, isn't the only thing. Self-respect,
cooperation and a sense of community are equally
important.
In Solomon's words, "A good corporation is
one that is not only profitable but that provides
a morally rewarding environment in which good
people can develop not only their skills but also
their values." Although the most common view is
that "leadership is power," Solomon makes the case
that "Instead of power over others, leadership is
about power with others, or 'empowerment.'"
HOW TO AVOID "ENRONISM"
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HIGHLIGHTS FROM AMA'S CURRENT ISSUES BRIEFING
The first program in
AMA's new series of Current Issues Briefings took
place at the AMA New York Executive Conference
Center on April 18, 2002. Entitled "Warning: Your
Organization Could Grow Up to Be Like Enron," the
program was presented by James R. Lucas, president
and CEO of Luman Consultants International, and an
AMA author and seminar leader.
According to Lucas, "Avoiding Enronism is
remembering that organizational life is not
'either/or' either results or ethics but a
'both/and' results and ethics. Being strong and
being ethical are only opposites to small and
petty minds."
To Avoid Enronism:
- Make truth the priority
- Ask the right questions
- Replace empowerment with powersharing
- Focus on the right kind of control
- Penalize destruction
- Ensure that the board of directors adds
value rather than illusion
- Make a declaration of independence
- Don't trust stories that "hype" companies
Lucas based his presentation on his article
"How to Avoid Enronism" in the Spring 2002 issue
of MWorld, the new quarterly journal of the
American Management Association. MWorld is
available free to Executive Members and to others
at $25.00 per issue, plus shipping and handling.
To view the Fall 2002 schedule of AMA's Current
Issues Breakfast Briefings, go to http://www.amanet.org/events/index.htm
WHAT KIND OF LEADER ARE YOU? (Self-Assessment)
When a crisis occurs, what do you
think about first its impact on
the people who work for you, its
impact on your long-term goals,
whose input you need to address
the crisis, or how to solve it as
fast as possible? Your answer to
this question and nine others in
this insightful self-assessment
will help you define your personal
leadership style.
Find out if your predominant style is
"Inspirational," "Visionary," "Collaborative" or
"Take-Charge" and how to apply your style most
effectively in the workplace.
Here's a thumbnail sketch of the 4
leadership styles:
Inspirational:
Motivating and energizing
others to fulfill their own potential while
contributing to organizational
goals
Visionary: Focusing on the future,
seeing the organization for all it can be and
working toward that
goal
Collaborative: Encouraging
teamwork, getting input from others, promoting
group problem solving and
decision-making
Take-Charge: Directing
or delegating decisively; taking bold steps to
exploit opportunities and solve problems
efficiently and effectively
TAKE THE AMA ONLINE CORPORATE VALUES
SURVEY NOW!
How central are corporate
values to your organization? Are they broadly
disseminated? Widely followed?
HOW TO FIND AND TREAT A BUSINESS' "EARLY
WARNING SIGNS" OF TROUBLE
In the same way we scan our bodies
for disease before the symptoms
become manifest, businesses must
screen themselves for early warning
signals of impending problems. The
key to good corporate health lies
in spotting the signals before the
damage is done, and then aligning
strategies to respond to them.
Here are five early warning signals to look
for:
- The business's growth is out of sync with
industry growth.
- You learn about your competitors' plans
only after they've occurred.
- There is a high cancellation rate by new
customers.
- A decrease occurs in the percentage of
high-level sales prospects.
- The timeframe needed to close deals
increases.
E-COMMERCE ALERT: PROTECTING YOUR CUSTOMERS'
PRIVACY
Attention E-Tailers! What are you
doing to protect your customers
from credit card fraud, identity
theft and "spam?" If you want
to keep your customers, you'll have
to prove to them that their private
information will remain private.
In our exclusive interview with
Mark S. Merkow, co-author of "How
to Protect Your Customers' Internet
Privacy," he states that the current
Internet privacy situation has created
potentially insurmountable problems
that threaten to doom the promises
of e-commerce: "If left unchecked,
the rise in identity theft because
of stolen credentials via the Internet
or abuses of personal information
will cause people to find safer
ways to shop." Every e-tailer needs
to craft a viable privacy policy
that incorporates four central themes:
Notice, Access, Choice and Security
PROTECT YOUR COMPANY'S COMPUTER NETWORK
FROM INSIDER ATTACK
In the hands of a disgruntled employee,
a keyboard can become a lethal weapon,
capable of destroying, or at least
sabotaging, your company's computer
network. Although most organizations
take steps to secure their networks
physical security, firewalls,
anti-virus software, encrypted files,
encrypted login and passwords
additional precautions should be
adopted. According to Patrice Rapalus,
director of Computer Security Institute,
management should provide security
awareness training to all employees,
letting them know that they're on
the front line. Information security
responsibilities should be added
to job descriptions and factored
into performance reviews.
FINDING QUALIFIED BOARD MEMBERS IS MORE
CHALLENGING THAN EVER
Problems Besetting Board Member
Search Committees:
- Many of today's CEOs are already
over-committed, and may hesitate to take on any
additional responsibilities.
- 60% of prospective board members turn
down positions (73% citing lack of time as the
reason)
- Public company board positions demand
100-150 hours per year
- In the wake of so many recent business
casualties, before taking a board seat, a CEO
will be extra cautious about what's on a
company's balance sheet
- The Blue Ribbon Panel guidelines
recommend no more than 2 public board positions
for sitting CEOs
Christian & Timbers, a global search
firm, suggests the following for companies about
to embark on a board or CEO search:
- Know what you have to do to attract the
best candidates and be ready to act on it
- Outline and deal with company "skeletons"
head-on
- Understand the problems your company
needs to resolve and be able to clearly
articulate them
- Build
awareness and gain buy-in from your board
- Outline a clear plan
- Tell all
THREE WEEKS IN TAHITI OR A WEEKEND AT
THE LAKE. IT'S VACATION SURVEY
TIME Take a minute to complete AMA's
online Summer Vacation Survey. (It may even
inspire you to plan that big family trip.)
Results in the June "Executive Matters."
HEADS UP ON TWO UPCOMING
AMA CONFERENCES:
CORPORATE BRANDING
2002 When: November 13-14, 2002 Where:
Marriott O'Hare Hotel, Chicago Theme: "The
Intersection of Brand and Business
Strategy" Executive Members Save $200!
10TH ANNUAL ADMINISTRATIVE
PROFESSIONALS CONFERENCE When: October 28-30, 2002 Where:
Caesars Palace, Las Vegas Highlights:
Trail-blazer Erin Brockovich, motivational speaker
Dr. Traci Lynn, trainer Keith Harrell, change
expert Sheila Murray Bethel plus five learning
tracks and much more. Executive Members Save
$200! An additional $100 Early Bird Discount is
available until August 1st.
TWO WAYS TO SAVE BIG $ ON AMA
SEMINARS:
*Members Only: Save up
to 50% off the current member price
when you register for select AMA
seminars. Space is limited, so act
now.
*Register for any AMA seminar held between
now and June 30, 2002 and bring a colleague or
friend for 30% off the applicable member or
non-member price.
Call 1-800-262-9699 for details.
AMA members can save 25% on
the Global KM eXchange 2002 Conference and
Exhibition in New York City June
25-27.
It is the first event to look
forward to the next generation of knowledge
management, placing the discipline in a context in
which success is measured by real, practical
business gains.
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EXECUTIVE MATTERS is a monthly newsletter created exclusively for Executive Members of the American Management Association, 1601 Broadway, New York, New York 10019. Editor: Florence Stone
Copyright 2002: American Management Association. Material in this issue may be quoted free of charge provided the following reference is given: 'Source: American Management Association,' http://www.amanet.org, 800-262-9699. |
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