Chicago Base Podcasts

How Honest Should You be with Your Employees?

Bigg Success

Clinton Korver wrote a great article for Harvard Business Publishing. He talks about his experience running a start-up and why it#8217;s especially important during tough times to share information with your employees. He says that he went against the advice of his venture capitalists. They feared losing employees, customers, and other investors if the bad news got out. Clinton found that being completely forthright strengthened his relationships with his employees. ------ ------ One of my radio managers did that when our company wasn#8217;t doing so well. I appreciated the honesty and how it put all of us on the same page. ------ Honesty is high on most of our lists of core values. However, do we really think that we should always be honest? For example, picture yourself standing with your best friend adoring her newborn baby boy. You think he#8217;s the least attractive baby you#8217;ve ever seen. She#8217;s going on and on about him, when she asks you the dreaded question ... Isn#8217;t he the best looking baby you#8217;ve ever seen? Would you tell her what you really think? Or would you pick your words carefully to avoid hurting her feelings? Of course, this is a different situation than the first one presented #8211; being honest with your employees, even when things are not going well. But it illustrates that there can be a second value at stake #8211; the desire to not cause undue harm. Is there a reason to tell your friend what you really think? What good will come from it? ------ I#8217;ve come to believe strongly in open-book management. As a general rule, I think the more you share with your employees, the better. Having said that, I have found you also have to know your employees. Open-book requires a higher level of maturity from your employees. If that#8217;s not present, sharing more just creates undue emotional distress. ------ The reason an ethical dilemma is a dilemma is because two or more core values at odds with each other. These situations flow up to the leader. You have to find a good solution. It#8217;s a personal decision. There likely will be disagreement on the best way to handle it. That#8217;s why it#8217;s so important to have a framework in place for these kinds of decisions. This framework will help you: be more efficient in making decisions like this make decisions that are consistent instead of all over the board build goodwill with all affected parties respect the face you see in the mirror at the end of the day We have a great resource that helps you set up the framework so when an ethical dilemma comes your way you#8217;re prepared. It outlines the three steps to solving an ethical situation: Know your core values Select an ethical model that helps you apply those core values Use a problem-solving process to work through the situation at hand So we#8217;ve presented an ethical dilemma today ... should you share all news with your employees, even the bad stuff? What do you think? Subscribe to The Bigg Success Show in iTunes.#160; Subscribe to the Bigg Success feed. Related posts [cref 1186] [cref 599] [cref 300] (Image by darktaco) read less

Latest Episodes for this Channel

How Honest Should You be with Your Employees?

Thu September 04 2008

Clinton Korver wrote a great article for Harvard Business Publishing. He talks about his experience running a start-up and why it#8217;s especially ... read more

5 Interview Questions for John McCain

Wed September 03 2008

Here in the United States, it#8217;s convention time with the Republican National Convention winding down tonight as John McCain strives to land the... read more

Here in the United States, it#8217;s convention time with the Republican National Convention winding down tonight as John McCain strives to land the biggest job in the world. Whenever any of us goes for a job, it pays to think about our strengths. What makes us unique? What sets us apart? ------ ------ Now when we think of the Republican Party, we think of elephants! Sure enough, this huge, bumbling animal has become the symbol for the Republican Party. Last week, we talked about what a donkey could say in an interview to stand apart. This week, we#8217;ll do the same for an elephant. So we showed our fictional elephant how to hold his trunk so it looked like a tie, and sent him off for an interview. Of course, we gave him a healthy breakfast of grass before he left! Our elephant stressed that he has an excellent memory. He will help you remember important things about your key clients. He can also recall facts that may not have been documented. Our elephant emphasized that he was as strong as any creature you#8217;ll ever find. He can shoulder weights that you would never dream of on your own. Elephants have been used to transport goods all over the world. So our elephant stressed that your work will be much easier if you hire him. If you remember, our fictional donkey also stressed how strong he was. We found this intriguing #8211; two animals both emphasizing the same strength. It#8217;s interesting, though, that they#8217;re still different. There are situations where you would use a donkey, but not an elephant and vice versa. So don#8217;t just think about your strengths #8211; think about the nuances of your strengths and how a potential employer might find them useful. Comedian Jake Novak, of Jake#8217;s Comedy Corner, called in for today#8217;s show. He#8217;s thought about some common interview questions that might be good for the Presidential candidates. Last week, he had some questions for Barack Obama. This week, we#8217;ll share questions for John McCain.#160; Jake#8217;s Take #8211; 5 Interview Questions for John McCain Question #1: Where do you see yourself in five years? Please don#8217;t say the Shady Pines Nursing Home, because that#8217;s where I want to put my parents and there#8217;s not enough room as it is! So try a different nursing home. Question #2: Are you willing to travel for this job? Because you know, Senator McCain, you tend to get cranky when you have to sit on the plane for more than fifteen minutes at a time! Question #3: Describe your employment history. And I#8217;d like you to leave out all of the stuff before the invention of metal tools! Question #4: What can you do for us that other candidates can#8217;t? Because the last time I checked, the Senate has 115 Republican white guys who want to be President! You#8217;re not really that unique in that way! Question #5: What will you do when you get this position? I#8217;m just hoping you won#8217;t go on Jay Leno again, because that#8217;s really not doing right by the American people. #8220;Executive privilege#8221; means you don#8217;t have to appear on other people#8217;s TV shows. Our main question comes before the job interview ... when John McCain filled out the application for the job of President, what did he put down for his address? Get the tips and tools you need to be a BIGG success. Subscribe to the Bigg Success Weekly #8211; it#8217;s FREE! Next time, we ask if it pays to be honest with your employees even in tough times. Until then, here#8217;s to your bigg success! Related posts [cref 1188] Subscribe to The Bigg Success Show in iTunes.#160; Subscribe to the Bigg Success feed. (Image by cssdteacher, CC 2.0) read less

Great Athletes Have One. So Should You

Tue September 02 2008

We were thinking about mentors and coaches recently. In our discussion, we defined them as follows: A mentor is an informal advisor. A coach also of... read more

We were thinking about mentors and coaches recently. In our discussion, we defined them as follows: A mentor is an informal advisor. A coach also offers advice, but in a more formal way because you#8217;re paying for their services. We#8217;ve both had a number of mentors and coaches in our lives. Both have been immensely valuable! That#8217;s what prompted our discussion.#160;#160; ------ ------ Going where you haven#8217;t gone before However, since we don#8217;t pay for the services of our mentors, we don#8217;t talk to them as much. After all, we don#8217;t want to abuse the privilege. We#8217;ve talked with our coaches much more frequently, usually every week in fact. It#8217;s part of the agreement we had with them when we signed on for their services. We love the quote by Bill McCartney, former coach of the University of Colorado. He said, #8220;Coaching is taking a player where he can#8217;t take himself.#8221; It seems that behind every great athlete is a great coach #8211; from Michael Jordan to Michael Phelps and a bunch of other outstanding performers not necessarily named Michael! What a coach can do for you In this age of personal branding, a coach can do the same for us #8211; take us where we can#8217;t take ourselves. We#8217;ve found that our coaches save us time #8211; we get where we want to be faster because they help us identify what#8217;s most important. Bigg Success is our baby! We#8217;re very close to it. Our coaches bring us that outside, objective point-of-view that is necessary to help us move forward intelligently. We work for ourselves. A coach gives us someone to whom to be accountable. We#8217;ve found that it keeps us on our toes. We work ON our business more than we would otherwise because we#8217;re forced to prepare for our weekly sessions. It#8217;s like having homework! Our coaches also ask us questions that we#8217;re not asking ourselves. We#8217;ve found ourselves looking at our business and careers in new ways #8211; ways we wouldn#8217;t have uncovered on our own to go back to the quote. How to find a coach that#8217;s right for you Along the way, we#8217;ve learned a thing or two about finding a great coach. Now we look for someone who has reached a level we want to reach. For example, we recently attended a convention for people with online shows like The Bigg Success Show. We met a man who is very successful with his show. We#8217;re talking with him about coaching us so we can understand how to replicate his success. Another coach we#8217;ve had, Liz Strauss, was referred to us by a mutual friend. We started following her blog and saw that she was hosting a conference. We attended her conference and got to know her more. We hired her to coach us. She#8217;s been incredibly helpful in pushing us to a higher level.#160; Mentors are valued advisors that contribute to your success. Coaching is still catching on. Athletes figured it out a long time ago. Now the rest of us are getting it. It takes a small investment to hire a coach, but there are BIGG payoffs for those who do!#160; Get the tips and tools you need to be a BIGG success. Subscribe to the Bigg Success Weekly #8211; it#8217;s FREE! Next time, with the Republican Convention wrapping up, we#8217;ll talk about elephants. Until then, here#8217;s to your bigg success! Subscribe to The Bigg Success Show in iTunes.#160; Subscribe to the Bigg Success feed. Related posts [cref 780] (Image by terren in Virginia, CC 2.0) read less

A Better Way to Pay Off Your Mortgage Early

Mon September 01 2008

Over the years, a number of ways have been touted to pay off a mortgage early. Recently, we#8217;ve seen a number of solicitations for a new way to ... read more

Over the years, a number of ways have been touted to pay off a mortgage early. Recently, we#8217;ve seen a number of solicitations for a new way to do it. The basic idea is to take out a Home Equity Line of Credit (HELOC) with your chosen bank. You use this account like your primary checking account. You will pay all of your bills out of this account and deposit all of your income into it. Any left over money goes to pay off your mortgage. ------ ------ The benefit is appealing #8211; you may pay off your 30-year mortgage in as little as 10 years. Of course, if you have any other debt (e.g. credit card debt or car loan), it#8217;s almost certain you should pay that off first. We#8217;re talking in generalities here; you and your financial planner can determine your best financial move based on your specific situation. The pluses We liked that the program we looked at included a great visual that showed you the exact month and year your mortgage would be paid off if you stuck with it. We also liked that you could easily see your money coming in and going out. Using intuition The example showed a rate of 6% on the first mortgage and an 8.6% rate on the HELOC. Intuitively, it didn#8217;t make sense to us to borrow at 8.6% to pay down a 6% loan. So we decided to do some calculations to see if our intuition was right. New vs. old We decided to compare this new way of paying down a mortgage to the oldest of the old ways #8211; including an additional amount with each regularly-scheduled payment. The example we looked at was for a couple who made $5,000 a month and had bills totaling $4,000 each month. They held a $200,000 mortgage, with a 30-year term, and an annual interest cost of 6%. The main driver #8211; with the old way or the new way #8211; was the $1,000 in discretionary money each month. The new program also accessed the HELOC in the first or second month, but once again that money is being paid back at 8.6% instead of 6%. Apples to oranges We found that the new program lived up to its promise #8211; you will pay less in interest over a 30-year period. The problem is that it#8217;s an apples-to-oranges comparison. Their basic assumption is that you will use ALL of the $1,000 in discretionary money each month to pay down your mortgage if you are on their program. If not, you won#8217;t use ANY of it #8211; that is, you won#8217;t pay down your mortgage OR invest it. Apples to apples So we decided to do our own comparison. We used the simple, old, do-it-yourself extra mortgage payments method #8211; we added the $1,000 of discretionary income to our monthly mortgage payment. The result? We paid off all of our debt (which consisted of only a first mortgage) eleven months faster than they paid off theirs (which included the first mortgage and the HELOC)! We found some of the assumptions about the timing of income and expenses questionable. With a more conservative approach, we would actually pay off all of our debt fourteen months faster using our old-fashioned strategy. As for total interest savings, we would save between $10,989 and $24,210, depending on the timing of income and expenses discussed in the previous paragraph. This takes into account the cost of their software as well as a small annual fee on the HELOC. Conclusions In a strictly financial sense, the old-fashioned way is your best bet. However, it#8217;s important to also consider the human side. That#8217;s where programs like this come into play #8211; some people would be more likely to pay off a mortgage early because they could track their progress so easily. Of course, you could set up one account yourself. With basic spreadsheet skills, you could set up a chart (or talk a friend into doing it for you) to show the effect of additional mortgage payments. The bottom line #8211; the old way is the better way if you#8217;re looking to save the most money. But if you#8217;re a little light on financial discipline, programs read less

Improve Your Strategic Decision-Making Skills with this Simple Game

Thu August 28 2008

Anita Bruzzese is the author of 45 Things You Do That Drive Your Boss Crazy. We were fortunate to meet her at a conference we attended a few months ... read more

Anita Bruzzese is the author of 45 Things You Do That Drive Your Boss Crazy. We were fortunate to meet her at a conference we attended a few months back. She had a great post recently, where she discussed a game she played with her kids called, #8220;Which would you rather?#8221; ------ ------ With this game, you present your fellow players with a choice. For instance, I asked Mary-Lynn which she would rather give up for a month #8211; chocolate or her cell phone. ------ That was a tough question, but I would give up chocolate. My phone is my mobile device; there#8217;s no way I could live without it for a month! ------ Hmmm ... Mary-Lynn with no chocolate. I#8217;d plan to be away that month! ------ A fun way to keep a conversation going When we discussed conversation continuers recently, we said that games are one way to keep a conversation going. This is a great example of a game you could play to do that. For example, you could ask ...#160; ------ Who would you rather work for #8211; a boss who#8217;s super-demanding or a boss who#8217;s never around? Anita posed more great questions in her post. ------ If you check out her post, you can see how I answered the questions she asked. ------ A fun way to improve strategic decision-making Decision trees are a great way to visualize possible business strategies, since a business can be thought of as a series of either / or options. Sounds like a ramped-up version of #8220;Which would you rather#8221;, doesn#8217;t it? Question 1 leads to Question 2 and so on. For example, let#8217;s say you plan to start a restaurant. Play #8220;Which would you rather?#8221; Which would you rather open #8211; a big restaurant or a small restaurant? Let#8217;s say you choose bigg ... with two g#8217;s of course! Which would you rather be #8211; part of a franchise system or an independent? You really want to create your own brand, so you want to be independent. Where would you locate #8211; in a strip center or a free-standing building? You could do some research to determine which one seems to work better for restaurants like the one you plan to start. We could keep going, but you get the idea. The reason you create the decision tree is to see the impact of your choices. For instance, if you chose #8220;franchise#8221; for the second question, they may specify whether you#8217;re inline or free-standing. A fun way to teach your kids critical entrepreneurial skills Play this game with your kids and help them develop critical entrepreneurial skills! Just add the #8220;decision tree#8221; dimension one question at a time. So instead of asking your kids to think of one question, ask them to think of three #8211; the initial question and a follow-up question for each of the possible answers. They#8217;ll be thinking like an entrepreneur in no time! Get the tips and tools you need to be a BIGG success. Subscribe to the Bigg Success Weekly #8211; it#8217;s FREE! Next time, we#8217;ll examine a highly-touted way to pay off your mortgage early. Until then, here#8217;s to your bigg success! Subscribe to The Bigg Success Show in iTunes.#160; Subscribe to the Bigg Success feed. Related posts [cref 1171]#160; (Image by sundstrom) read less

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How Honest Should You be with Your Employees?

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