Right Attitudes » Ideas for Impact
» by Nagesh Belludi

Last week, General Electric (GE) announced that its Board of Directors had accepted CEO Jeffrey Immelt’s recommendation that he not receive his bonus for 2008 and $11.7 million in compensation under a long-term incentive plan.

In 2008, GE’s missed its profits estimates and the company’s stock declined significantly. Still, GE reported the highest revenues in its history, a profit margin of 9.59%, and a net income of $17.4 billion. Jeff Immelt could have claimed his 2008 bonus and the long-term compensation he deserved for the company’s performance between 2006 and 2008.

Additionally, he held more than 1.6 million shares in the company. The value of his GE stock has depreciated by more than $45 million since 2-Jan-2008. (GE’s stock price declined from $37.10 to $8.60 between 2-Jan-2008 and 27-Feb-2009.)

Over the last several years, the world of business has experienced a public uproar over executive compensation. This has led to a perception that corporate executives are greedy, resent shareholders’ proposals to cap compensation, and focus on short-term results. Considering this bitterness, Jeff Immelt’s initiative in turning down a substantial portion of his compensation is certainly praiseworthy and admirable.

In an interview with The Wall Street Journal earlier this month, Jeff had stated, “My compensation is never going to be an embarrassment to GE. … It’s going to be responsible; it’s going to be appropriate; it’s going to be transparent; and it’s going to reflect the financial performance of the company.”

GE has long been a model for corporate governance. Since taking over as CEO four days before the 9/11 tragedy, Jeff Immelt and the company’s board have aligned executive compensation with long-term company performance, converted over to equity-based compensation plans, stipulated that executives hold large proportions of GE stock, and committed to greater transparency and disclosure.

I shall share my thoughts on executive compensation in a separate blog article tomorrow. [Update on 1-Mar-09: Release of this article postponed due to its sensitive nature.]

Recommended Reading

• Jeff Immelt on understanding breadth, depth and context
• Jack Welch’s four types of managers

***See other articles related to executive compensation, corporate governance, Jeffrey Immelt, Jack Welch, General Electric

A quarrel is quickly settled when deserted by one party:
there is no battle unless there be two.
* Lucius Annaeus Seneca

In any contest between power and patience, bet on patience.
* W. B. Prescott

Follow the three Rs:
Respect for self,
Respect for others and
Responsibility for all your actions.
* The Dalai Lama

First you get on,
then you get honest,
then you get honors.
* Lew Wasserman

Thou shalt not separate thy being from BEING, and the rest,
but merge the Ocean in the deep, the drop within the Ocean.
* Helena Petrova Blavatsky

Consistency is the last refuge of the unimaginative.
* Oscar Wilde

You should have the determination of a bumble-bee,
aerodynamics says it cannot fly, but still it flies.
* A. P. J. Abdul Kalam

To be a star you must follow your own light,
follow your own path, and never fear the darkness,
for that is when the stars shine the brightest.
* Unknown

Nothing gives one person so much advantage over another as
to remain always cool and unruffled under all circumstances.
* Thomas Jefferson

Forgiveness does not change the past, but it does enlarge the future.
* Paul Boese

Visit www.Inspiration.RightAttitudes.com for my compilation of inspirational quotations by author and topic. You may also subscribe to the weekly newsletter of inspirational quotations by sending a blank email to iqml-subscribe@yahoogroups.com.

*Keyword(s): Inspiration, Quotations

To some extent, while we think we are simply driving to work
every morning to earn a living, the soul knows it is
secretly engaged in a life-or-death struggle for its existence.
* David Whyte

If we did the things we are capable of, we would astound ourselves.
* Thomas Alva Edison

He restrains his friend from committing sins,
and induces him to do good deeds.
He conceals the unseemly secrets of a friend,
projecting only his good qualities.
He does not desert his friend in difficulties,
but gives timely assistance.
Saints describe these as the characteristics of a true friend.
* Subhashita

You can’t think of risks. I have nothing to lose.
You either make something that you like,
or you don’t, and you throw it to the universe.
* Mike Myers

Be a hero. Always say, “I have no fear.”
Tell this to everyone — “Have no fear.”
* Swami Vivekananda

It has become appallingly obvious that our technology has exceeded our humanity.
* Albert Einstein

If our thoughts and hopes are elsewhere, it is impossible for us to set our
faces steadily toward the work required of us.
* Anonymous

By cultivating the beautiful we scatter the seeds of heavenly flowers,
as by doing good we cultivate those that belong to humanity.
* Vernon Howard

There are two kind of truths.
You can recognize small truth because its opposite is falsehood.
The opposite of a great truth is another great truth.
* Niels Bohr

Good, the more communicated, more abundant grows.
* John Milton

Visit www.Inspiration.RightAttitudes.com for my compilation of inspirational quotations by author and topic. You may also subscribe to the weekly newsletter of inspirational quotations by sending a blank email to iqml-subscribe@yahoogroups.com.

*Keyword(s): Inspiration, Quotations

In this Fast Company article, Gary Flake, Director of Live Labs at Microsoft identifies Systems Thinking as an important trait for career success.

There are three traits that will serve anyone wanting any role at any company, not just ours: systems thinking, passion, and clear communication. Systems thinking is a way of looking at the world that allows you to see how many small pieces come together to make a more complex whole. System thinkers see the hidden interconnections that bind together the parts and know how to make the best use of ambiguity and uncertainty as a result.

Gary’s reflection reiterates the importance of understanding context and perspective in our jobs. A previous blog article and a podcast discussed this indispensable trait for success.

Systems Thinking for a Big Picture Approach

From an early age, we’re taught to break apart problems in order to make complex tasks and subjects easier to deal with. But this creates a bigger problem . . . we lose the ability to see the consequences of our actions, and we lose a sense of connection to a larger whole.
* Peter Senge

Traditional methods of problem analysis concentrate on dividing problems into smaller, more comprehensible components. The drawback of understanding isolated or unrelated elements, functions, and events is that the effects of changes to one element on other elements of the whole are rarely considered.

In contrast, the discipline of Systems Thinking emphasizes analyzing the whole in terms of interrelationships of its elements. Examining structures, relationships, and outcomes facilitates taking into account any secondary consequences of decisions and actions pertaining individual elements.

We work in increasingly connected organizations where an event that affects one part of an organization is likely to have a meaningful effect–in the short-term or the long-term–on another part of the organization. The discipline of Systems Thinking enables us to develop a broader, holistic perspective of problems and opportunities in businesses and make effective decisions.

Resources, References

Over the last couple of decades, System Thinking has evolved into a formal discipline and has incorporated several rigorous analysis techniques. Here are two excellent resources to help you gain more knowledge of these methods.

• The ‘Thinking’ in Systems Thinking: Seven Essential Skills, Barry Richmond
• The Fifth Discipline: The Art and Practice of the Learning Organization, Peter Senge

Recommended Reading, Listening

• Ideas for Impact Podcast ‘The Importance of Understanding Perspective’
• How to broaden your thinking and grow on your job

***See other articles related to career success, skills for success, systems thinking, analytical reasoning, decision making, problem solving, big picture, thought process

To some extent, while we think we are simply driving to work
every morning to earn a living, the soul knows it is
secretly engaged in a life-or-death struggle for its existence.
* David Whyte

If we did the things we are capable of, we would astound ourselves.
* Thomas Alva Edison

He restrains his friend from committing sins,
and induces him to do good deeds.
He conceals the unseemly secrets of a friend,
projecting only his good qualities.
He does not desert his friend in difficulties,
but gives timely assistance.
Saints describe these as the characteristics of a true friend.
* Subhashita

You can’t think of risks. I have nothing to lose.
You either make something that you like,
or you don’t, and you throw it to the universe.
* Mike Myers

Be a hero. Always say, “I have no fear.”
Tell this to everyone — “Have no fear.”
* Swami Vivekananda

It has become appallingly obvious that our technology has exceeded our humanity.
* Albert Einstein

If our thoughts and hopes are elsewhere, it is impossible for us to set our
faces steadily toward the work required of us.
* Anonymous

By cultivating the beautiful we scatter the seeds of heavenly flowers,
as by doing good we cultivate those that belong to humanity.
* Vernon Howard

There are two kind of truths.
You can recognize small truth because its opposite is falsehood.
The opposite of a great truth is another great truth.
* Niels Bohr

Good, the more communicated, more abundant grows.
* John Milton

Visit www.Inspiration.RightAttitudes.com for my compilation of inspirational quotations by author and topic. You may also subscribe to the weekly newsletter of inspirational quotations by sending a blank email to iqml-subscribe@yahoogroups.com.

*Keyword(s): Inspiration, Quotations

Often, professionals suppose that being considered smart, intelligent, or “on top of things” implies presenting themselves with much self-confidence, and requiring knowing everything. Consequently, they tend to force themselves to pretend to “know it all” and hesitate to respond with an “I don’t know.” When superiors, peers, or employees ask tough questions, they habitually fail to admit their ignorance and force some misguided answer out of themselves.

Think about it: having to know all the answers can actually be quite stressful. It drives professionals to think incessantly about potential challenges, risks, and outcomes. The constant pressure to be “on guard” can steer them towards supposing the worst.

“I Don’t Know; Let me Find Out” is a Perfectly Acceptable Answer

Effective professionals recognize that perfection, flawlessness, and other superlatives are often masks. They acknowledge what they do not know and promise to follow up in proper time and get the right answers. Rather than losing their standing, they gain the trust of their people.

Acknowledging that they do not have answers to all questions, releases professionals of unwarranted worry. This opens the door for others to assist with relevant inputs and promotes good judgment.

There is a downside, however, to repeatedly admitting not knowing many things. A professional is expected to be knowledge about all the essential aspects of her job and explicate all the relevant data to drive her decisions. Where the organization depends on her to know the answers to certain questions, any hints to heedlessness, neglect, or oblivion can weigh down her standing within her organization.

Recommended Reading

• Establishing Credibility for Persuasion: How to research and deduce concrete inferences in support of your positions
• ‘Pre-Wiring’ Presentations to Key Audience for Buy-In: How to ensure others’ support to your conclusions and avoid surprise reactions and disagreements.

***See other articles related to pragmatism, humility, humbleness, credibility, meetings

Character is higher than intellect…
A great soul will be strong to live, as well as to think.
* Ralph Waldo Emerson

Many run about after happiness like an absent-minded man
hunting for his hat, while it is in his hand or on his head.
* James Sharp

Our lives are measured not by gain but giving
* Raistlin Majere

Act so in the valley that you need not fear those who stand on the hill.
* Danish Proverb

Education is a progressive discovery of our own ignorance.
* William Durant

No matter how good you are,
there’s a lot of luck involved.
* Reggie Miller

When we talk about understanding,
surely it takes place only when the mind listens completely,
the mind being your heart, your nerves, your ears,
when you give your whole attention to it.
* Jiddu Krishnamurti

Great minds have purposes; others have wishes.
* Washington Irving

A drop of water has the tastes of the water of the seven seas:
there is no need to experience all the ways of worldly life.
The reflections of the moon on one thousand rivers are
from the same moon: the mind must be full of light.
* Hung Tzu-ch’eng

It is vain to expect our prayers to be heard,
if we do not strive as well as pray.
* Aesop

Visit www.Inspiration.RightAttitudes.com for my compilation of inspirational quotations by author and topic. You may also subscribe to the weekly newsletter of inspirational quotations by sending a blank email to iqml-subscribe@yahoogroups.com.

*Keyword(s): Inspiration, Quotations