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January 24, 2008

Charles Handy on Gurus

Filed under: History and Biographies — delicious @ 10:55 am
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So far this is my favorite book for the year. OK, I know it’s only January, but that means a lot of books will have to live up to this one. It’s an insightful look into the life of one of the best managerial writers and observers in the business book world.

Book Excerpt from: Myself and Other More Important Matters by Charles Handy:

Tom Peters was the first management teacher to turn public performer in a serious way. Fortune called him the ‘Ur-guru’ or original guru. The Economist described him as the ‘Ober-guru’. Peter Drucker had written more and for longer (he died aged ninety-five in 2005, writing to the end) and was probably the wisest of all, but he preferred to describe himself as a writer and was, in truth, a poor performer on a platform. Who first coined the word ‘guru’ to describe Peters and his like is unclear, and the word is not in any case particularly appropriate. Peter Drucker once quipped that journalists only came up with the word because ‘charlatan’ was too long for a headline. These management gurus do not cultivate groups of acolytes nor do they hold forth in any sort of management ashrams, but they do lay claim to certain truths about organizations and how they should be manged, and they are certainly not shy about their beliefs and ideas. There are now guru tables that rank the top fifty or so performers according to their popularity among managers, and there is a recognized core of people on the ‘guru circuit’ rather like professional tennis players. Some of these gurus reckon to do at least one hundred performances a year, usually at opera-star fees with the same sort of billing.

It is unclear how one comes to be a guru. You cannot apply to join the club, for there is in fact no formal club. Nor can you nominate yourself as a guru. It is a title that is given to you by the media or the speaker agencies that manage these folk. Most of them are American, because the circuit of conferences mostly exists in America, although it is now expanding alongside the spread of the global marketplace…

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500 votes and counting…

Filed under: Lists,The Company — Todd Sattersten @ 10:21 am
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If you haven’t voted for your favorite books yet, jump over to our Reader’s Poll and click a few buttons.

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January 23, 2008

Excerpt from Fast Profits in Hard Times

Filed under: Personal Finance and Investing — 800-CEO-READ @ 1:35 pm
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The following is an excerpt from the book Fast Profits in Hard Times by Jordan E. Goodman
Published by Business Plus; January 2008; 9780446581561
Copyright (c) 2008 Jordan E. Goodman


10 Strategies: An Overview

Fast Profits in Hard Times will teach you everything you need to know and give you specific resources (websites, toll-free numbers, etc) to implement the following 10 strategies:

  1. Invest in Tax Liens
    Buy liens placed on properties by municipalities because owners have fallen behind in paying their property taxes. Then, when the property owners pay what they owe to the municipalities, receive not only a return of your principal but also a penalty interest rate set by the municipality, typically in the range of 8% to 25%. If the property owner defaults altogether, take possession of the property for a fraction of its real value: the sum of the back taxes you’ve already advanced. You can then sell the property, even a bit below its market value, for a huge profit.
  2. Buy Real Estate Below Market Value
    Identify real estate sellers who are willing to accept less than their property’s full market value for a variety of reasons. Then resell the property immediately at a profit, rehab it, rent it out, or even live in it yourself, all with the built-in financial cushion of having purchased the property for far less than it is truly worth.
  3. Invest in Income Trusts and Master Limited Partnerships
    Earn high yields of 8% to 13% by investing in trusts that extract or transport natural resources such as oil, gas, coal, or timber. Such trusts pass a large amount of their earnings directly to investors through monthly dividends. Depending on the trust or MLP, some of the distributions may be considered a tax-free return of capital, boosting your after-tax return even more.
  4. Invest in High-Yield Stocks
    Invest in stocks with stable businesses that pay dividend yields of 5% to 15% or more. Some industries offering such high yields include electric utilities, oil tankers, and real estate investment trusts, and several broad-based closed-end mutual funds. This is a way to make your capital compound with very little risk when you reinvest the dividends or to boost the income you live on if you take the dividends in cash.
  5. Enroll in Dividend Reinvestment Plans
    Invest in companies that offer Dividend Reinvestment Plans, known as DRIPS, which allow you to use dividends to purchase shares directly and thus bypass brokerage fees. Automatically reinvest dividends back into further stock purchases, thereby compounding your portfolio’s assets over time. Several companies offer discount DRIPS, meaning that you get an additional 2% to 5% bonus every time you reinvest dividends, compounding your return even more at no additional cost to you. So if you get $100 in dividends, you receive $105 worth of stock when you enroll in a 5% discount DRIP.
  6. Buy High-Yielding Bonds
    Buy bonds of companies, municipalities, or foreign governments, either individually or through open and closed-end funds, which pay yields of 5% to 12%. In addition to the high rate of interest, you will receive the return of your principal when the bond matures. There are many types of hybrid bonds available in today’s market with catchy names like STRIDES, ELKS, MITTS and HITS which offer guaranteed return of principal, high yields and potential bonuses based on how the underlying instruments perform.
  7. Use Put and Call Options
    Rather than buying and selling actual stocks or stock indexes, you can, for a fraction of the cost, trade rights to buy and sell those stocks or stock indexes at specific prices within a specified period of time up to two years into the future. This form of leveraged trading allows for far greater gains but also runs the risk of far greater losses than normal stock investing. It is therefore imperative to follow careful strategies that limit risk while optimizing profits.
  8. Profit from Foreign Exchange Trading
    Trade one currency against another currency, on the expectation that the currency you’ve bought will gain in value relative to the one you sold. This provides a convenient way to profit from the decline of the US dollar against most major foreign currencies.
  9. Invest in and Broker Cash Flow Opportunities
    Identify people and/or businesses willing to sell future receivables at a significant discount in exchange for ready cash. Then either buy the payments yourself or serve as a broker for a third party, typically a large financial company, which provides the funds. For example, you can broker or buy cash flows from lottery winners, lawsuit winners, mortgage notes or reimbursements due to a doctor’s office from insurance companies or Medicare.
  10. Set Up Passive Income Strategies
    Set up some kind of system that needs minimal ongoing management but continues to produce significant cash flow far into the future. A few examples include:

    • placing vending machines in high-traffic locations to collect passive income whenever customers make purchases
    • placing ATMs or point-of-sale (credit/debit/card swipe) machines in high sales volume locations to earn small fees paid by merchants whenever customers use the machines
    • Buy high-quality timeshares in desirable locations and seasons and rent them out over the internet to earn substantial rental income

Copyright (c) 2008 Jordan E. Goodman

Author
Jordan E. Goodman is a former Money magazine journalist and the author of several bestselling books, including Everyone’s Money Book, The Dictionary of Finance and Investment Terms, and Master Your Money Type. He provides financial advice to millions of people each month through regular appearances on radio call-in and TV shows and through his seminars to corporate, association, and university audiences. He has been a regular contributor to NBC News at Sunrise, The Marketplace Morning Report on Public Radio, and many other shows. He hosts a popular financial resources Web site, www.moneyanswers.com, and is the host of The Money Answers Show on the VoiceAmerica Radio Network at www.voiceamerica.com. You can find out more about this book at www.fastprofitsinhardtimes.com.

Fast Profits in Hard Times

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January 22, 2008

Rethinking Work: An Interview With Tom Hodgkinson

Filed under: General Business — Jon8cr @ 10:48 am
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Since 1993, Tom Hodgkinson is the editor and co-founder of The Idler, a biannual book-shaped magazine that discusses the virtues of loafing. He’s also written two incredibly insightful books from his country home in the UK, How to Be Idle and The Freedom Manifesto. Using a wealth of historical knowledge and research, current political and economic thought, as well as personal practice, both books discuss ways that we can achieve more by doing less.


The following is from an email interview I conducted with Tom Hodgkinson after many years of joyfully reading his words (I first picked up The Idler in ’94). Now, you might be thinking, “Why would 800-CEO-READ be talking to someone about the virtues of idleness?” Well, read on, and I think you’ll understand. There’s something very important in his words. As we pore over business books, we’re essentially looking for ways to make our jobs easier, our work more fulfilling and our accomplishments more personal. Tom Hodgkinson just might have all the answers.
8cr: First off, please clarify the difference you see between idleness and laziness.
Tom Hodgkinson: Idleness for me is not a giving up on life but a spirited grabbing hold of it. I was idle when faced with wage slavery, i.e., doing boring work for somebody else at times of their choosing, in return for money. In that situation, I would become very lazy. But idleness really consists of doing stuff which is not really recognized as productive behaviour in our profit-driven economies. I might look as if I am lying in bed, but in fact I am turning ideas over. Often I get good ideas in the bath, when I am perfectly relaxed and my mind is flowing freely. And now that I am in control of my own work, I find that I am quite productive. Since retiring from the world five years ago, I have written three books, edited twelve more, written countless articles, run a small magazine from home, and had time left over to play a role in our local community, teaching ukulele at the local school, for instance, and to play with our children. In general I work from nine am till 1, and the rest of the day is for sleeping, outdoor work, walking, playing, cleaning, etc.
8cr: You started publishing The Idler in 1993, and have since turned it into quite a remarkable literary publication – which is no small feat! How does being idle allow such activity to get anywhere, and what can others learn from that?
TH: Idleness leads to good work! To me idleness is a bit like the punk ideal: do it yourself. A band is a good example. Here is a bunch of people motivated by a desire to escape the world of boring jobs and get out of bed when they feel like it. But they end up practicing hard, touring, recording, etc. Paradoxically, the more I have embraced my own idleness, rather than rejecting it as before, the more productive I have become. If work is self-directed, autonomous, and creative – then it does not feel like work. It feels like play. And that is the goal of the idler, to create work for oneself that does not feel like work. To play.
8cr: “Productivity guilt” plagues many. How might people overcome this and possibly see more productivity in the process?
TH: Guilt is a waste of energy. I used to waste a lot of time in beating myself up about early rising or whatever. We are constantly telling ourselves to “do more.” But who does this guilt serve? Does it really help us or is it just a useful tool for our employers? Is guilt an innate emotion, or one that is planted in us by conditioning? I would argue the latter, and when we recognize that there is nothing natural about guilt, but by contrast it is a man-made emotion, then it becomes easier to cast it off. And is “doing more” necessarily a good thing? What about doing less, but with more pleasure?
8cr: What do you feel is the most profound thing that can happen in times of idleness?
TH: A feeling of being joyfully in the present, rather than worrying or regretting.
8cr: Talk about the paradox of work being fun and fun sometimes being work.
TH: We resent work when we feel it has been imposed on us. When we choose it for ourselves, it is fun. Take vacations. Actually, they can be a lot of work: sightseeing trips, water-sports, horse-riding. But because we have chosen and paid for them, we see them as leisure. The same things, were they imposed on us, would feel like work. So there is a question of mental attitude here. Is doing the dishes actually unpleasant? Or is it our mind that makes it so?
8cr: How do you think idleness helps develop a person’s true interests without turning them into a bum? When balanced appropriately, what do you see as the ideal outcome?
TH: Well, first let me defend bums. Bums are independent. Think of the Beatniks, think of Walt Whitman (who wrote: “how I love a loafer”). Layabouts are good for society: they are there to help out when things go wrong, when everybody else is busy working. They provide a commentary on the vanity of human wishes. Bums in old Europe were welcomed: they were called wandering monks, or musicians. Bums can bring a lot of good into the world. It is not true that “hard work” is the only appropriate approach to life (although if you want to work hard, I certainly won’t stand in your way – I’d love to watch). Having said that, I think an increased portion of guilt-free idleness is a useful and healthy addition to anyone’s life. Work kills us, you know. The ideal outcome is for each of us to do work that he or she enjoys and make a reasonable living from it.
8cr: Companies scramble to design systems that address work/life balance issues with their employees. What’s it like at your office?
TH: I work in my study at home which is generally in a state of chaos. There are two desks – one with computer and one without, where I write, with an ink pen, and read. There is also a deckchair for napping. I think the ideal office would house three or four people. There would be a fire burning in the grate and books around the wall. There would be a sofa in the corner for after-dinner naps. The trend towards open plan – i.e., observable at all time – fills me with horror. I think staff should be allowed to create their own working environments rather than being forced to fit the vision of some idealistic architect maniac or profit-hungry CEO.
8cr: The West works pretty hard, but mostly by choice. What are your thoughts about countries where this is more of a cultural act (Japan), or necessity (China)?
TH: My thoughts are sad. In fact, in those countries you mention, the old traditions were against hard work. Taoism is the idea that you should not strain or stretch, but go with the flow. In China till recently, they all napped after lunch. For some reason they have decided to compete and work hard. I suppose that’s up to them, but I wish they would set us a better example.
8cr: What role does technology play in idleness? Technology is supposed to make work and life easier for us. Is this really the case?
TH: I’m afraid not. It seems to create more work. Right from the beginning of the Industrial Revolution, technology has promised to free us from toil. The steam-powered machines were supposed to do all the work. These days, digital technology is always telling us that it makes our lives easier. But does it? The Blackberry, for example, actually ties us to work 24/7. Ditto mobile phones. Email and computers suck time, and waste it. What happened to dancing, and singing? People have more fun in societies with less technology. Technology actually makes us dependent. When our broadband connection went down last month for a couple of days, I initially felt bereft. Then I read a book and picked up the phone and wrote some letters. That was much better. Labour-saving devices just make us try to cram more pointless activities into each day, rather doing the important thing, which is to enjoy our lives.
8cr: Your latest book, The Freedom Manifesto has a chapter about competition. How can a company apply the ideas therein to perform better by not competing?
TH: Well, they can’t! You would have to prioritize other issues over mere performance, things like quality, pleasure in work, creativity. Once you have a company that is publicly owned, its priority is going to be share price, and all other considerations – quality of product, customer service, and employee welfare – become secondary. But the old-fashioned system of business stressed community and fairness in dealings. For example, strange as it may seem to apostles of the free market, the old way was fixed prices. You were not allowed to undercut another guy in the same business because that was unfair (a cynic might point out that oil companies do a similar thing today). Businesses were arranged on a principle of brotherhood rather than competition. Overwork was frowned on because it might give you an unfair advantage over your brother. And this system worked: there was a huge amount of global trade in the 13th and 14th centuries, with fantastic innovative products flying around the world.
8cr: Consumer debt is out of control in America, and causes tons of people to work more, at things they’d rather not be doing, in order to address this. Is there a better solution?
TH: Yes, being thrifty. Don’t buy anything. Strip down your expenses. Throw away the credit card. Don’t commit yourself to $500 monthly payments on an automobile. Buy an old wreck instead. Take fewer trips. Reject holidays. Make bread at home. The new aspiration will be towards a self-controlled, creative, pleasure-filled life where the home becomes productive and we don’t buy rubbish that we don’t need. Throw away the television, don’t buy the newspaper. Try and cut down on the amount of advertising that you take in.
8cr: If practiced on a large scale, this could drastically affect the economy, employment, etc. Thoughts?
TH: I think that would be good. I’m not a big fan of conventional employment and conventional economic thinking anyway. In any case, what of the alternative? We are seeing a lot of value being wiped off Wall Street right now. Banks are failing in the US and Europe, with a direct effect on employment and the economy. This meltdown and loss of confidence is a direct result of greed, sometimes called “the free market.” But now even the most fervent free marketeers are beginning to wonder whether we need to introduce more restrictions on trade, etc. I think people are beginning to question the wisdom of “greed unrestricted” which might describe the financial philosophy of the 80s-90s-00s.
We need to reinvent the principles of economy and put well being and quality of life at the top of the agenda. We need to abandon the notion that the markets, left alone, will sort out all the ills of the world.
We need to ask ourselves: has the Puritan/Enlightenment programme failed?

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Jack Covert Selects – Do the Right Thing

Filed under: Jack Covert Selects — 800-CEO-READ @ 8:00 am
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Do the Right Thing: How Dedicated Employees Create Loyal Customers and Large Profits by James F. Parker, Wharton School Publishing, 288 pages, $22.99, Hardcover, January 2008, ISBN 9780132343343
We’ve all heard the success stories of the small, short-haul, Texas airline that grew out of a loophole in federal legislation to become one of the most profitable airlines in history. James Parker, the former CEO and chairman who led Southwest Airlines during the tumultuous times of 2001 through 2004, is the author of Do the Right Thing. He shares the lessons he learned from the people he worked with during his 25 years of service to Southwest.
Parker tells us that “[t]he overriding lesson I learned doesn’t involve a lot of management guru buzzwords and acronyms. It is the simplest of principles, which we learned from childhood: When in doubt, just do the right thing.” For Southwest, that means being dedicated to people. Both principles are embodied and reinforced in everything the company does; employees and customers respond, in kind, by showing their loyalty. For example, on 9/11, the pilots and crewmembers took it upon themselves to make sure each passenger was safe; customers responded by offering to send money or forego their refunds.
Parker tells the story of a speaking engagement in Boston. Hundreds of people packed a hotel ballroom eager to hear more about Southwest. At the end of Parker’s speech, one person asked for a Southwest employee to explain why they loved Southwest. The employee “stood up and said without hesitation, ‘I think I love working there because it’s a company that loves you back.’”
Southwest’s focus on people has made a world of difference; it shows in its income statement, in its customer service and in its employees’ satisfaction. Do the Right Thing does not unveil revolutionary insights into the business world nor give you a detailed strategy to follow. What Parker does well is remind us of the important lessons that he learned along the way. It’s easy to become so immersed in the present and forget the simple lessons of business: appreciate your employees, treat your customers well and have fun. Sometimes we all need a little encouragement and a reminder to do the right thing.

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January 21, 2008

Which Are You?

Filed under: Strategy — Todd Sattersten @ 4:22 pm
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“There are always two parties, the party of the past and the party of the future; the establishment and the movement.”

-Ralph Waldo Emerson, quoted in the paperback edition of Competing for the Future,

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Ask 8cr! – In the Books

Filed under: Ask 8cr! — Aaron @ 10:47 am
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Ask 8cr! is a section of our blog used as a forum to address the kinds of issues and challenges people are having in the workplace. We take these issues and apply a business book we feel offers a viable solution. Others then chime in via the comments section. The person with the selected challenge gets a free copy of the book, but everyone who reads these posts, wins. What’s your challenge at work? Send it to me at jon(a)800ceoread(dot)com.

This week’s installment of Ask 8cr! is a little different. As Rebecca mentioned elsewhere on our blog, we recently published our first magazine called In The Books, featuring articles and write-ups on the most notable current business books. It’s a handy resource people can use to quickly find some specific topics, or discover something entirely new. Looking at it made me think that this publication is sort of an Ask 8cr! umbrella, in that it leads readers to a variety of sources that cover the most common business challenges. So, I’m using it for today’s Ask 8cr! book, and sending everyone who’s sent me a challenge in the past a free copy.
But that’s not all. The next 100 people that order In The Books get 40% off by using the discount code g6kjm when you purchase online.

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Vote For the Best Business Books Of All Time

Filed under: Lists — Todd Sattersten @ 10:41 am
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Jack and I have been a little quiet on the blog lately. We are pushing to finish the manuscript for our book, which comes out next year.

Our book will feature the 100 books everyone in business should read. There will be many titles that you would expect and more than a few that will be surprising.

We’d like to get your help. Tell us what you think the best business books of all time are. We have set-up a poll for all of you to vote on. If you see something missing, drop kate a note (kate {at} 800ceoread [dot] com).

We are going to feature your favorites in the book, alongside ours. So, get voting!

Thanks for your help and spread the word!

http://800ceoread.com/bookvote/

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Remember When….

Filed under: Audio — delicious @ 9:07 am
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So, it was snowing.

Not just snowing, but really snowing. You know that snow when you were a kid where the piles were high and went almost to your hips and it was just GREAT? It was like that kind of snow. I was, I think 8 or 9 and it went a bit past my hips and yes, it was GREAT! I was tumbling in in, running in it, climbing the great foothills they created in front of the mountains (ok a building). In this particular case, it was the Library building and the foothills abounded in front of it. I loved the Library, especially that day! I found a mammoth one right by the parking lot, climbed on it and started playing King of the Hill with my self, having a blast. Until. Yep, turned out that the hill was actually a bush.

A rose bush.

A rose bush that was big, and huge just like that snow mounds around it. Being such a large bush, it had large thorns and yours truly felt the sting in two places on his knee. I cried, wouldn’t you? If only I knew better. If only I had great, vast information at my disposal….well hopefully this listing of audio books will bring some knowledge to you!

Here’s what books are available on compact disc in our
Top 25 Books of 2007:

Speed of Trust – # 1
It’s Your Ship – # 3
Made to Stick – # 5
What Got You Here Won’t Get You There – # 8
Power of Nice – # 9
The Long Tail – # 11
Blue Ocean Strategy – # 20
Wikinomics – # 21
QBQ! – # 23
The Starbucks Experience – # 25

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Jack Covert Selects – Stirring It Up

Filed under: Jack Covert Selects — 800-CEO-READ @ 8:12 am
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Stirring it Up: How to Make Money and Save the World by Gary Hirshberg, Hyperion, 240 pages, $24.95, Hardcover, January 2008, ISBN 9781401303440
When Gary Hirshberg started in business, he looked at the standard definition of efficiency in our economy and saw it as ultimately unsustainable. In Stirring It Up, he gives us a new standard to gauge efficiency that is both profitable and sustainable, inspired by his 25 years worth of experience applying this standard at Stonyfield Farm.
Hirshberg concludes that we have the power to quicken this process as consumers–that if we show the demand for environmentally sound products, more industries will shift to making more products sustainable. He also discusses the best environmental practices companies are implementing–from newer companies like his own and Patagonia that built these principles into their original mission, to behemoths like GE that have had to change with the times.
To come up with sustainable solutions for his own company, Hirshberg has enacted some practices at Stonyfield that most business people would think are ridiculous and unsound–pay substantially more for materials than competitors, never advertise products, encourage more government oversight of his industry, and release reports on how much it pollutes–but he goes on to explain why each practice has reaped huge benefits and helped the company’s growth. Paying twice as much as competitors for the milk they use to make yogurt, for instance, helps strengthen the small organic farmers who produce it, ensuring Stonyfield will continue to have access to the quality ingredients their customers expect. Instead of needing big budgets for advertising, the quality of the product and their loyal customers have become the best advertising one can imagine. Conversely, Stonyfield’s main competitor, Yoplait, spends much less on producing its product, but spends large sums advertising it. These differences have created a situation where Stonyfield loses in the gross margin battle, but actually wins in net profits.
Stirring It Up is filled with examples of how thinking about your business’s impact on the earth is not only responsible, but profitable. We’re used to viewing big industries as being part the problem. Hirshberg suggests that business, even the smallest, has to be the solution, and his book can be used as a guide for the best ways to bring about that change in mission and behavior.

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