5 C's for Success!!

For the first time in several years I was asked to teach the Corporate Finance course for Southwestern College this fall. As I prepared I was reminded of the 5 C’s of credit that banks and other financial institutions use to determine credit worthiness of potential clients. The 5 C’s of credit are character, capital, capacity, conditions, and collateral. Success in life or in the business world also has 5 C’s. We’ll take some time and visit about the 5 C’s of success.

First, in order to succeed in the long term we must realize that each day is a series of choices. Ultimately those choices determine who we are and what we do in life. While some choose to study and work to get ahead others choose a recreation priority. Our great country has attempted to provide equal opportunity, we have mistaken that to include equal outcome. Outcomes are determined by the choices made when given opportunity.

The second key to success is becoming consistent in applying the things we learn and the experiences we have gained. To be able to perform something well once is not enough. We must practice until performance at a high level is a repetitive almost monotonous activity. Consistency in performance is developed by good habits: good habits are developed by finding successful methods and using them over and over.

Communication is the third C on the journey to success. We can never rest and think that our individual or corporate communication has arrived. Having worked with approximately twenty companies of various sizes in my consulting business yielded one thing they each had in common. No matter how well they appeared to communicate, a company survey always revealed a need for communication to be improved.

The day of the “lone wolf” is almost gone in our society. The need for our fourth C, collaboration, becomes more important as time goes by. Little is accomplished today by singleness of effort. In families, businesses, churches, and schools much can be gained by working together. Collaborative effort makes possible Steven Covey’s “third alternative” where two or more people come together with ideas that are blended into a superior final consensus that can be used and adjusted where necessary.

Effective use of the first four C’s positions an organization or an individual to be successful in using the final C, making a contribution. That contribution can be to our family, our company, or even to our society but it becomes much larger than it might have been. Ultimately we are largely judged by the contribution we make to the organizations we align ourselves with. By keeping in mind and developing the C’s of success we can maximize our contribution to the causes we choose as worthy of our time.

Longevity: A Real Benefit!

September is usually a great time of the year. It starts getting cooler, football begins in earnest, and the holidays are just around the corner. This year September started as usual and then a visit to my dentist changed everything. After completing my filling Dr. Tonk Mills said he had decided to retire in December. He was a little sorry since on June 13, 2013 we could have celebrated fifty years together.

What are the benefits of a doctor- patient association of fifty years? I could count on Dr. Mills to give me recommendations and often choices for my dental care. On all but one occasion I took his advice. Once he said I should have a root canal but I chose to remove the tooth. Years later after three root canals I realize his advice should have been followed.. We both enjoy golf, so the years have provided discussions of his trips to Scotland and our adventures on the course. We’ve talked about playing a round, but it never came about. Maybe it will since we both have more time on our hands.

Years ago I gave Dr. Mills a copy of my book “Thinking Out of the Box” and he commented upon it several times also sharing it with his employees. He has encouraged me about the book many times. On this occasion, our last as Doctor-patient, he said he was sharing the book with his grandson in Kansas City. The grandson was starting his career in business. Sharing the eleven year old book was just another example of encouragement coming as a result of our relationship’s longevity.
In our modern organizations longevity yields benefits also. There is always a place for new people and new ideas, but the contribution of veterans is immeasurable. The longer term employees tend to be the “go to people” that can be counted upon to lead in time of crisis. In his book “Leadership is An Art” writer Max DePree identifies tribal storytelling as the art of moving myths, legends, and values of the company forward to the next generation and it is absent without longevity.

Early in my insurance career I had great managers and training that helped me launch my career. In addition our office had over fifteen people with over twenty years with the company. We used to have a joke that it depended whether someone had thirty years of experience or one year of experience thirty times. The ones making use of and sharing their experiences were invaluable. Hours in the office with those veterans added a great deal to my individual growth. Without the experiences of those with significant longevity my development would have been much slower.

Oh by the way, happy retirement Dr. Mills!

All Show, No Go!!

One of the most important determinants of leadership success is the character of the leader. Much of our society looks for the charisma of the leader. Both are important qualities but given the chance to pick only one, character will win the day.

Leaders of character say and do right things. The world is full of people who talk a good game. Unfortunately, they are often all show and no go. Some of the most charismatic of leaders collect a following but fail to follow through. Finally they end up losing their following.

Sometimes a charismatic leader tries to take advantage of his or her ability and tries to baffle others with talent. In the short run this often works but only builds up more disappointment when the character flaws become apparent.

Character stands the leader in good stead over the long haul. Someone has said that character is who you are when no one is looking. I think the statement is true but doesn’t totally define a person of character. So what are some of the things a person of character says and does that are right?

Persons of character spend time determining right things and then stand upon them no matter the consequence. They do not blow with the wind or go for the flavor of the month. In our modern society there is value in flexibility but not when it comes to compromising one’s governing values. Persons of character stand for something rather than fall for anything.

Persons of character are loyal. Loyalty can be shown in supporting a subordinate, but also in having the courage to be honest and tell another when they are wrong or have made a mistake. Too often in the business world, people go along to get along and so honest evaluation with the intent of remediation is absent. Persons without character would rather be liked than to take care of a job’s toughest tasks.

Finally, persons of character are consistent. They become very predictable. After subordinates have been with a leader of character for a while they can almost always guess how the leader will respond in situations. This consistency builds the foundation for relationships to develop. No guessing and fearing how the leader might react when things don’t go well or when they do go well.

When we are given the opportunity to choose a leader with both character and charisma that would contain the best of both worlds. However, given the choice of one or the other, character should win out every time. With that choice we have a lot of go and not just show.

The Cycle of Life

As it is with most things the journey through life is cyclic. Business goes through cycles of ups and downs, booms and busts, in order to become successful. In our personal life we also go through cycles of feast and famine to get to the magic time: retirement. In order to successfully complete life, three distinct phases must be mastered and ultimately completed.

First, comes the learning phase. Formal learning starts at five or six; but in reality, learning starts long before school days. Children learn from parents, siblings, and others. Some of the learning is instructional, but much of it is by observation. School broadens both academic and social learning and hopefully produces a balanced individual, ready to make his or her mark on society.

At the other end, formal education often ends at 18, 22, or 25, but to be continually successful a person must become a lifelong learner. Part of lifelong learning is gaining some additional information, but most of it is applying what we have learned to the vocation we have chosen and to enhance the relationships we enter over the years of life.

Next, comes the earning phase. We enter a workforce where we are told we are under qualified and often have times later when we are overqualified. In between are the years we accumulate things, raise a family, and hopefully set aside for later years. Building a career and chasing children activities dominate this second phase of life. We often catch ourselves coming and going in order to juggle the various duties.

Late in the earning stage as children start on their own earning quest, we begin to enter the final phase of life as we begin to return some of what we have gained in the earning stage. The returning phase is different for different people. It might be serving in the PTO or helping with service projects for the Rotary. Returning could be running for public office or making a contribution to the local college. Communities are made stronger by the volunteer efforts of those in the returning stage.

As children have left the learning phase and entered the earning stage, parents have more time and resources to return to the community for what the community has given them. This cycle has worked for decades in our society; and yet in recent years, we have seen a decline in participation in groups and organizations that foster returning phase activities. Hopefully we will see volunteerism grow and be healthy again as we move into the future. The cycle must continue in order for our learning and earning phases to stay healthy.

Work Smarter, Not Harder

For almost as long as I can remember I have heard the terminology “work smarter, not harder” and as I matured in my various roles I could see how I might employ the strategy. Early in my career I spent many hours working, but much of the time I was spinning my wheels and not getting much done. It occurred to me that there must be a better way, and so I gained advice from those seeming to accomplish much more with their efforts.

One of the first aspects of “working smarter, not harder” was to plan my work. Knowing where you are going saves a lot of time in the long run. The second half of planning is that once work is planned to then work the plan. Someone else improved upon this advice by telling me to work when you’re working and play when you are playing. Both are important, but should be separate activities and seldom mixed.

Understanding an application of the Pareto principle is also important. That is, that 80% of your results come from 20% of your efforts, or 80% of your problems come from 20% of your clients. When this is well understood effort can be made to focus on productive areas and spend less, but necessary, time on less productive ventures.

Learn to say “No.” You could live to be a hundred and still not have time to do everything you want—that’s the curse and blessing of being intelligent and having high expectations of yourself. The good news is you can choose what to focus on. You have far more freedom than you may realize. Review everything in your life and ask, “What’s the worst that can happen if I stopped doing this?” Saying “No” sometimes is the only way you can say “Yes” to what you really value.

Another aspect of “working smarter, not harder” is to avoid perfectionism. Perfectionism cripples us into redoing work repeatedly for that perfect result. The secret is there is generally no perfect result and the time spent seeking a perfect result could be better spent on other tasks. Perfectionists tend to employ “tunnel vision” and can’t do more than one task at a time. In our complex business and personal environment we must learn to multitask and live with several unfinished tasks in the process of moving towards completion.

Avoiding perfectionism will allow better use of another aspect of “working smarter, not harder” to take place. It will be easier to delegate some tasks to others when we know that some of their work will also not be perfect. Our attitude of “I can do it better” will be tempered to one of “I will have time for other important tasks.”

Finally, developing flexibility will help us to “work smarter, not harder.” Most of our plans, whether performed by us or others, will seldom go exactly as they were laid out. When problems arise adjustments will determine success. The more we anticipate the needs for adjustment, and possible diversions from, the more time we’ll have to accomplish the tasks.

Mentoring Revisited

Mentoring is a hot topic in the business world, as well as in many other areas of our society. It has become a real “buzz” word in the current business jargon. Much has been said and in many cases less has been done. I recently attended a men’s meeting with the men of our church. One of the topics was mentoring and I received a fresh perspective on the topic and how its success depends upon mastering four activities.

First of all we must give them a personal challenge. If they keep on doing what they’ve been doing they’ll keep on getting what they’ve been getting. When Vince Lombardi took over the Green Bay Packers in 1958 they had won thirty per cent of their games in the previous twelve seasons. Over the next nine years the Pack had nine winning seasons, won seventy-five per cent of their games, and five world championships (Including the first two Super Bowls). Lombardi challenged them to reach for their best and they set the standard of excellence in professional football.

Once the challenge has been given then the mentor must give the follower confidence. They must know we believe in them. Our confidence in them must be real, it must be given regularly, and it must be specific. It’s not just enough to say “good job”, we must let them know how they have succeeded and the behavior will be repeated. A great deal of our time must be spent wandering around finding them “doing something good.” As tasks are completed successfully we give larger assignments and thus build their confidence levels.

Bumps in the road will happen and when they do we must give them honest counsel. When we have worked successfully at building their confidence, they will be more receptive to our counsel. Our motives for counsel are really important at this point. A key question must be, “Am I correcting for my benefit or for their benefit?” When we have earned the right to correct we must make sure we apply the correction in an empathetic way. The human tendency is to be hard on others and easy on ourselves. It is important to think how we would like the matter handled if the roles were reversed.

An outcome of successful mentoring is to see growth. When growth is observed we should give sincere praise. When growth happens we practice the fourth activity of successful mentoring- giving them full credit. We can undermine the whole process by trying credit for their growth. We might have contributed, but they made it happen. Let them have their day in the sun. Our reward will be the increased performance received as a result of their growth.

Moving Upward and Onward!

The business world is full of people dreaming of moving up in their organization. Most have the desire and many have the ability, but lack of focus keeps many from succeeding. At the same time our organizations need to have people ready and willing to fill key positions. Being able to focus in four areas provides readiness for the position desired.

First, we must work hard to learn the fundamentals of our current position and the position we want. A successful manager once told me that being ready for a position and the position being available seldom happen at the same time. Therefore, we must be constantly working to develop and improve. Find out what people successful in jobs like we’re aiming for are doing and develop the skills even before we need them. Ask the employer/manager for advice in what additional abilities he or she sees essential for movement in their organization.

Second, once we have the skills we must continue to practice them. Often skills are developed and then not used, causing them to become dull. Feeling like we are treading water can cause complacency but it is important to stay sharp and look for new skills to incorporate into our practice. The difference between good and great is often the commitment to continued practice. Living on College Street I often see teams of runners out complying with their coaching instructions. At other times I see a mere handful (and sometimes just one) of the same people running on their own and making a commitment to being the best they can be.

Third, understand that even ultimate preparation doesn’t insure immediate ascension to the desired position. Paying the dues is difficult but it must be done. John Wooden, the legendary UCLA basketball coach, coached for over 20 years before winning a national championship and then won eleven championships in the next thirteen years. Paying the dues takes real personal mental toughness and persistence. Impatience can often cause people to quit, thus falling short of their desired promotion.

Finally, once a level of performance that gets recognition is attained it must be maintained. We have to keep it going. Others will probably want the same position we are seeking. We must give decision makers a value added that puts us at the top of the list. The more time we spend creating value the closer we move towards our goal. If we temporarily can’t move upward we can always move onward by continuous improvement. The Japanese system of kaizen (small continuous improvements) works well while waiting.

Life's Lessons!!

As we pass through life we learn many lessons. Some of us learn the lesson the first time; others take many times to finally “get it.” A wise man once said "If we don't learn from history, we are doomed to repeat it.” We’ve all done it both ways, but repeating the same mistakes can be both painful and, in many cases, expensive. I’ll take this opportunity to share a few of my life lessons with you. Maybe you can avoid some of the problems I’ve encountered.

• Haste makes waste: We live in a microwave society and the tendency is to rush everything. Experience has shown that doing and redoing is more expensive and time consuming than doing a job right in the first place. By being a little more deliberate we end up with more time for other important activities.

• Listen to the other side of the story: Sometimes people come to us with a story so well stated that we buy it to be the whole story. Painful experiences have taught that it always pays to get what Paul Harvey called “the rest of the story.” People see things from their perspective and it helps to get a broader view. The truth often lies somewhere in between the two positions.

• A big mouth doesn’t make a big person: Our society seems to value the outspoken and often just plain rude. While it is often nice to know where others stand, consideration should be given to the views and feelings of others. Being argumentative doesn’t really solve anything. Only time will prove a position to be right or wrong.

• When in doubt, don’t: My sixth grade teacher told me this when I was eleven. I’ve gone against the advice several times and lost each time. Her wisdom has been valuable to me for over fifty years. If you can’t get inner peace about a decision either delay it or go in a different direction.

• If you don’t stand for something you’ll fall for anything: We’ve become a nation of the wishy-washy and full of compromise on too many issues. My studies of both Scripture and the business world tell me that right is right and wrong is wrong. I know this isn’t a popular opinion among “gray area” types, but I’ll take solace in an old Winston Churchill quote,” You have enemies? Good. That means you've stood up for something, sometime in your life.” Churches, civic clubs, and even employers struggle due to lack of commitment on the part of their members.


These are just a few of the lessons life has taught me. Some have been painfully learned over a long period of time, while others were easier to grasp and become part of my philosophy of life. When followed they have saved time and headaches.

The Market: In or Out?

Recent days have brought extreme volatility in the stock market. Almost daily people are asking the question, “Should I stay in or get out of the market?” The only sure thing right now is that if you had $100 invested two weeks ago you have about $85 now, if you decided to sell the shares. One basic maxim of the market is to buy low and sell high. In reality when either of those events happen it is for most people just guesswork. In order to have a chance to prosper in the market there are several proven principles that must be followed. When we allow the rules of the market to work and get professional advice we have the best chance for success.

RULE #1: Prior to investing have several months of income set aside in a low interest, accessible fund for emergencies. Murphy’s Law of investing is that when you have an emergency fund you seldom need it, but when you don’t things happen.

RULE#2: Be in the market for the long term. Short-term put-and-take investing yields losses and frustration. Long-term investment returns show gains larger than bonds or fixed interest products. The tendency, for many, when the market turns down is to panic and sell, thus assuring a loss.

RULE#3: Regularly invest an amount that is comfortable and realistic for your economic situation. Doing this takes advantage of a concept called “dollar cost averaging.” Which simply put is buying shares over an extended period of time at various rates thus pulling out the highs and the lows of the market.

RULE#4: Keep in mind that you haven’t gained or lost anything until you are at the point of selling. In 2008 my wife’s account lost about 35%, but we decided to keep investing on the hope of coming to a point of recovery. Fortunately, she recovered her losses and even had some gain. With our impending retirements we were no longer RULE#2 investors, so we moved her funds to a fixed interest account. We used Will Rogers famous quote, “I’m not so interested in the return on my money as I am the return of my money” to make our decision.

RULE#5: Balance risk and reward with your investment capacity. Most people really can’t afford high risk investment ventures because they really can’t afford the downside possibilities. The great percentage of investing comes in mutual funds there the risk and the return are both lower and diversification is achieved by the number of companies and industry sectors in the portfolio.

Life and Business Are a Lot Like Golf

Over the past 20 years a lot of my leisure time has been spent at Quail Ridge Golf Course. It occurs to me that success in life or business is similar to success in playing golf. Golf pro Mike Hammond told me that to play a good game of golf depended upon grip, posture, tempo, and a lot of practice. Grip, posture, and tempo are basic fundamentals and practice develops the ability to use the fundamentals over and over, producing a quality game. Life and business are the same as golf. There are basic fundamentals that must be learned and then practiced consistently.

Early in my business career I was told proper practice produces pleasing performance. Another concept I was exposed to was that “People don’t plan to fail, they just fail to plan.” So then planning is an important ingredient in any life success. Planning in golf is the grip, posture, and tempo that then must be practiced. In golf, as in life or business, not everyone has the discipline to stay with the plan, practice, and ultimately be successful. Not everyone has the same ability or level of accomplishment. Only a small percentage of those starting to golf ever score lower than 100 strokes, even fewer break 90 for 18 holes, and a very small number become par (or scratch) golfers. Just as two people can take the same golf equipment and the same instruction and get far different results, two people can get the same training in the same organization and end up with differing performance records.

The goal then should be maximizing our skills to get the most we can from golf, business, or life. Accomplishing this goal of excelling is dependent upon continuing the fundamentals. Planning and practicing are just the beginning. An equally important concept is having the focus to remain with the task no matter how the early results go. When the plan doesn’t work out adjustments must be made. In golf it is called “the rub of the green.” You hit a good shot and it takes a bad bounce. Life can sometime give us the same. We do things right and it just doesn’t happen. Keeping our eye upon the goal and continuing to move toward it is important. As has been said, “ the race doesn’t always go to the fastest, or the strongest, but to the one that keeps running.” Remember Aesop’s fable of the hare and the tortoise. Insurance millionaire W. Clement Stone had it right, “success is achieved by those who try and keep trying.”

Leading When Times Are Difficult

It seems nearly impossible that this column begins my fourth year of sharing my thoughts in “It’s Business… and more.” Shortly after I began, the whole U.S. economy seemed to go South with bailouts, stimulus packages, and bad news dominating the headlines. During these difficult times good leadership becomes even more important. Writer Max DePree states that the first duty of the leader is to define reality. The leader must carefully assess where their people are and then take them where they need to go.

In a storm people often retreat and wait for the storm, often denying reality. When times are bad the leader needs to show the way in higher, not lower, levels of activity. Bad times and low performance often lead to a lack of confidence and a resulting shrinking in self-worth. The leader must show he or she still believes in them. It must be a sincere belief and the leader must remember that you cannot give what you do not have.

The leader must instill a sense of what can be! Tough times bring out the importance of relationships. We need each other even more in difficult times. It is important to pool our resources and be more interdependent than independent. We must share and give rather than just take and hoard. Teamwork becomes even more important as we work through difficulties. The leader must guard and watch their attitude and monitor and guide the attitudes of subordinates. Our attitude is our greatest asset or our greatest liability. It is not what happens to us but what happens in us that makes a difference. Everyone has adversity it is how it is faced that makes a difference.

An important question is “What are you learning during this time.” We tend to think of our losses or gains when what we are learning from difficulties is much more important. How is what I’ve learned changing me? How can what I’ve learned help others? If we don’t learn we stay down longer and often go through the same or similar difficulties. Our role as a leader is to help others get up and get it going again. In difficult times some do well and some don’t, why is that? The ones that do well have learned and adjusted. As leaders we can help give others courage to get up and go again. Like someone has said “I’m never down, I’m either up or I am getting up.” So then, when things go bad we can help others “pick themselves up, dust themselves off, and start all over again.”

When Things Slide, Pull them Aside

My last column covered one of the real pleasures of dealing with people- finding them performing well. Unfortunately things don’t always go well and people don’t always perform well. When performance falters, dealing with the problems takes completely different actions than when things are going smoothly. When poor work is observed it needs to be corrected privately. It also needs to be done in as positive a manner as possible. You wouldn’t want to be corrected and humiliated in front of your peers and neither would they. Remember, when things slide, pull them aside.

One of the first priorities is to show them you care. If you have effectively dealt with their good work the task is much easier. Sincere positive feedback for good performance earns the right to deal with poor performance. They will know you are in it to help them rather than trying to put your thumb down on them. As much as possible let them choose their path to better performance. Get them to think of how it might be better handled after the problem is explained. Using this method makes it a more personal solution and has a much better chance for long term solution. If they become stumped for an avenue of correction you can make suggestions or give them examples to get their thoughts flowing.

Another area of concern for the manager is employees developing bad habits. Whether it’s habitual lateness, excessive use of company time for personal issues, or any number of other possible infractions, poor habits must be addressed. First, don’t beat around the bush about the issue. If they’re continuously late, restate the time for reporting to work. If they aren’t required to meet the rules soon others will follow their example and eventually chaos will reign. Next, while it is important to be direct, also be gentle. Where possible, state the “why” of the rule their bad habit is breaking. Maybe they haven’t seen the importance of being there at 8:00 rather than 8:15 or 8:30.

The final issue in dealing with poor habits is to be aware of sidetracks. They will often try to change the subject and must be brought back to the point at hand and resolution. In the video “The Practical Coach” one of the best methods for dealing with poor performance or poor habits is referred to as “the 2 minute Challenge.” The Challenge goes like this: a. State what you’ve observed b. Wait for a response c. Remind them of the goal d. Ask for a specific solution e. Agree together Used properly the challenge keeps things focused and headed toward correction. It also reminds them once again that what they do matters to you.

Say it Often, Say It Loud

When Bill Medley became Superintendent of Schools in USD 465 one of the first things I remember hearing from him was his mantra, “Find them doing something good!” The first time I heard him say that it seemed a little corny, but through the years I have come to understand the slogan’s truth and wisdom. Sincere encouragement in almost any form is as close to a silver bullet as there is in human relations. Using encouragement in the workplace is paramount in achieving lasting success.

In the video “The Practical Coach” the leader is challenged to “when you see it say it” concerning the employee observed doing good work. I would add: say it often, say it loud. Let others know when good work is happening. Doing so commends the employee and sets a pattern for others. What is said also is important. Just saying “good work” is better than nothing, but letting the employee know what you liked about their performance assures repetition. Failing to be timely in recognizing good work can lead to a sense of lack of appreciation. Too much is better than not enough in the case of kind words of praise.

Be careful that the praise is sincere and specific. The purpose is not to flatter but to commend and show appreciation. The words reinforce behavior and help give the employee a sense of belonging and meaningful contribution to the task. In reality, coaching or leading is no more than letting people know that what they do matters to you. When we let them know about good work, they sense we care and have taken time to notice them. When we are silent we may send an unintentional message that we are disinterested or that what they are doing is of little importance to us. It remains important to have consistent dialogue with them.

Often in employee surveys a missing ingredient is the employee knowing what is expected and how they are performing. Performance evaluations given once or twice a year are important, but lack time relevance. The delay contributes to the overall perception of a lack of effective communications within an organization. By the time formal evaluations are given there is little recollection of the commended (or criticized) events. It is important that the leader or coach never lets good work go unnoticed so it will become a sequence of successful events.