Executive Matters

October 2002

"PLANNING WITHOUT ACTION IS FUTILE; ACTION WITHOUT PLANNING IS FATAL."
- (ANONYMOUS)

Surprisingly, a recent AMA survey on Crisis Management and Security showed:

  • 51% of the organizations surveyed do NOT have a crisis management plan in place
  • 59% do NOT have written policies and procedures for crisis management
  • 62% do NOT have a written contingency plan

According to Jon Goldberg, Exec. VP, PR21 and speaker at AMA's recent Current Issues Briefing, "One Year Later—Have We Done Enough?", "Having a viable crisis management plan is like buying an insurance policy. You hope you'll never have to use it, but you can't buy insurance if your house is already on fire."

Click below for complete AMA Crisis Management Survey results http://www.amanet.org/research/index.htm

Click below to read a summary of Jon Goldberg's presentation http://www.amanet.org/editorial/goldberg.htm

In This Issue

ARE YOU A "JUGGLER?" SELF-ASSESSMENT AND AUTHOR INTERVIEW

AMA MEMBER CHALLENGE NEWS: CONGRATULATIONS TO OUR WINNER!
PLUS, ENTER THIS MONTH'S AMA MEMBER CHALLENGE FOR YOUR
OPPORTUNITY TO WIN A FREE AMA SEMINAR!

NEW STUDY ON EXECUTIVE COMPENSATION—GOOD NEWS FOR CFO'S

CONFRONTING YOUR "FEAR OF FAILURE"

18 QUESTIONS TO ASK BEFORE YOU BUY A FRANCHISE

READ PART II OF OUR EXCLUSIVE INTERVIEW WITH ALEX HIAM,
AUTHOR OF "MAKING HORSES DRINK—HOW TO LEAD AND SUCCEED IN BUSINESS"

 

red dotARE YOU A "JUGGLER?" SELF-ASSESSMENT AND AUTHOR INTERVIEW
If you're like most people, you wear a lot of hats—manager, employee, parent, community member, friend, etc. And to handle all of these competing responsibilities, you've probably refined the art of "juggling." But according to a new book, "Beyond Juggling: Rebalancing Your Busy Life," the truth is, juggling doesn't work. The authors, a team of consultants, educators and researchers, have identified five alternative strategies (Alternating, Outsourcing, Bundling, Techflexing and Simplifying) for work-life balance that represent different choices, advantages and tradeoffs.

Are You a Juggler? (Select all that apply):

  My workdays are tightly scheduled, and my weekends aren't much different
Time spent with my partner, children and/or friends often feels rushed
I manage to stay on top of things, but I don't know how long I can keep it up
Quiet time for myself—reading, exercise, hobbies, etc.—is hard to fit in
I use some of my vacation days to run errands and catch
up on chores
I feel overtired or stressed out more often than not
My life is certainly not boring, but it's also wearing me out

If you checked at least four, you're a juggler; if you checked 7, your juggling is out of control! Click here to complete the entire self-assessment and click here to read our exclusive interview with one of the book's co-authors.

red dotAMA MEMBER CHALLENGE NEWS:
CONGRATULATIONS TO LOIS DAVIS OF INTUIT INC., TUSCSON, AZ, WINNER OF A FREE AMA SEMINAR!
(Enter this month's member challenge for your chance to win)

Response to our first AMA Member Challenge in September was so favorable that we've decided to make it a monthly feature on our Members Only Website.

Here's how it works: Simply answer all five AMA Member Challenge questions (based on current business events) correctly and and complete the entry form for a chance to win a FREE AMA Seminar of your choice. (The seminar must be from 1-4 days in length and held in the U.S. only. Multi-unit programs and meeting #1534 are excluded). It's easy and fun. And YOU could be the winner!

red dotNEW STUDY ON EXECUTIVE COMPENSATION—GOOD NEWS FOR CFO'S
Tell your kids to enroll in some accounting courses—if they want to make big bucks in the corporate world when they grow up. According to a new report by search firm Christian & Timbers, although CEO compensation decreased by 15% in base pay and a whopping 43% in bonuses in the first half of 2002, base pay for Chief Financial Offers increased an average of 12%. Jeffrey Christian, chairman and CEO of the firm, says, "Shareholders, the SEC and the public at large are demanding that companies focus on the books to guarantee accuracy in the wake of so many business scandals. Companies are paying more for CFOs who will put themselves on the line for honest, complete financial reporting."


red dotCONFRONTING YOUR "FEAR OF FAILURE"
Do you avoid becoming involved with interesting projects because you're afraid they may be too risky? According to Susan B. Wilson in her book "Goal Setting," "In trying to avoid failure, you may miss the adventure of personal growth, the fun of meeting a new challenge or the excitement of living for those things in which you believe." Wilson offers a variety of strategies to help reduce your fear of failure, including:

  • Confront your fear. Why do you feel this way? Is this particular fear justified? If it is, what can you do to eliminate or reduce your fear?
  • Specify the risk you associate with the particular goal under consideration. Identify how large that risk really is and what its potential impact could be.
  • Identify the benefits that accrue from taking the risk and succeeding. After you determine the probability and degree of the risk, you may decide that the anticipated benefit outweigh the potential disadvantages.

red dot18 QUESTIONS TO ASK BEFORE YOU BUY A FRANCHISE
Barry Thomsen, Publisher/Editor of the "Small Business Idea-Letter" advises, "Ask these 18 questions before you write the check, and you'll have a much better chance of seeing a return on your investment."

  • Are the products or services something you enjoy personally or have an interest in?
  • Is your franchise company a leader in its industry or at least well known?
  • Are selling prices competitive in the marketplace?
  • Is the start-up cost within your budget?
  • Do they offer a protected territory or area?
  • Do they have company owned stores or services?
  • Are other franchisees making money? (talk to five or more)

Click below for the other 11 questions:
http://www.amamember.org/smallbiz/index.htm


red dotREAD PART II OF OUR EXCLUSIVE INTERVIEW WITH ALEX HIAM, AUTHOR OF "MAKING HORSES DRINK—HOW TO LEAD AND SUCCEED IN BUSINESS."
Part I of the interview
(See: http://www.amamember.org/leadership/index.htm)
focused on how Hiam's metaphorical use of the "leading a horse to water" fable relates to a leader's role and responsibilities to employees. Part II presents the action steps leaders need to embrace to help their employees—and through them, their organizations—thrive and succeed.

According to Hiam, "It is important to recognize that businesses must cycle between explorative creativity, at one extreme, and routine production, at the other. You make money when you can systematize and replicate something—in other words, do it over and over. But in today's economy, you can't expect one system, one formula, to work for very long, so you also have to nurture the ability to recreate it. I think of this as constructive creativity (in contrast to the 'creative destruction' ideal of Enron's top brass which destroyed that company in the end.)"

One foundational action for the leader is to make a practice of being extremely inquisitive and curious. Model the behavior you want and you will spread it naturally. Maybe you could start by carrying an idea notebook in which you enter at least one "Why?" and one "Why not?" question each day, then collect employees' answers to those questions. If even one out of twenty of these notebook pages yields a useable insight, your time will have been well spent. And employee will soon pick up the habit of asking the proverbial "dumb questions" and start generating even greater returns."

To read the entire interview click here.

red dotAMA'S FALL 2002 CURRENT ISSUES BREAKFAST BRIEFING SERIES
All meetings are held at AMA's Executive Conference Centers. Registration and Breakfast: 8:30 a.m. Program: 9:00-10:00 a.m. Q&A: 10:00-10:30 a.m. AMA Executive Members may attend for the special discounted price of $25; all other attendees pay $50.

SCHEDULE
Secrets of Customer Retention and Acquisition in These Tough Times.
Speaker: Angelo Valenti.
October 17, Washington, DC 
November 13, New York City

How to Master the Seven Negotiations from Hell Inside Today's Leaner and Meaner Organizations
Speaker: Frank L. Acuff
October 10, Atlanta

Socially Responsible Business Practices Can Build Your Brand
Speaker: Adrian Hodges 
October 16, Chicago
October 22, New York City

Winning the Race Against Time
Speaker: Dan Carrison
October 24, San Francisco

To register, call 1-800-262-9699


red dotAMA ANNOUNCES TWO SPECIAL CURRENT ISSUES FORUMS
"BUILDING AN ETHICAL CORPORATION"
November 7, 2002/ 8:30 a.m.-12:30 p.m.
Join a distinguished panel of business ethics experts to learn what it takes to keep your company on its best behavior by creating and promoting an ethical culture throughout your organization. Don't miss this timely, information-packed presentation. Members $195; Nonmembers $250

"TEAR DOWN THOSE SILOS: CREATING CULTURES OF COLLABORATION"
Thursday, December 12, 2002/8:30 a.m.-5:00 p.m.
Is a silo mentality undermining your organization's success? Join author Karl Albrecht and other experts to learn how to settle the turf wars that stand in the way of optimal performance and how to create an atmosphere of open dialogue and knowledge sharing. Members $395; Nonmembers $495

Both events will be held at AMA's Executive Conference Center in New York.

red dotIF YOU CAN ATTEND ONLY ONE BRANDING EVENT THIS YEAR, MAKE IT THIS ONE!
CORPORATE BRANDING 2002
When: November 13-14, 2002
Where: Marriott O'Hare Hotel, Chicago
Highlights: Top Marketing experts from BMW, Kinko's, Xerox
and other leading firms will provide proven strategies and
tactics for building powerful brands.

red dotSAVE UP TO 50% WHEN YOU REGISTER FOR SELECTED SESSIONS OF SOME OF AMA'S MOST POPULAR SEMINARS.
"Management Skills for New Managers" and "Fundamentals of
Finance and Accounting for Nonfinancial Executives"
Click here for a complete list. Space is limited, so act now!

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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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