Jack D. Deal's Free and Inquiring Mind Applied; Change before you have to...831-457-8806

Letter to Alumni and Friends of Harvard University on Funding and the Downturn from President Drew Faust Nov 10 2008

Dear Harvard Alumni and Friends: Earlier today I wrote to the Harvard community here on campus about the current global financial situation and its effect on the University. Now I write to share that letter with you, our loyal alumni and friends. Sincerely,  Drew Gilpin Faust ----------------------------------------------------------------------------------------- To Harvard Faculty, Students, and Staff: I write today about the global economic crisis and its implications for us at Harvard. We all know of the extraordinary turbulence still roiling the world's financial markets and the broader economy. The downturn is widely seen as the most serious in decades, and each day's headlines remind us that heightened volatility and persisting uncertainty have become our new economic reality. For all the challenges such circumstances present, we are fortunate to be part of an institution remarkable for its resilience. Over centuries, Harvard has weathered many storms and sustained its strength through difficult times. We have done so by staying true to our academic values and our long-term ambitions, by carefully stewarding our resources and thoughtfully adapting to change. We will do so again. But we must recognize that Harvard is not invulnerable to the seismic financial shocks in the larger world. Our own economic landscape has been significantly altered. We will need to plan and act in ways that reflect that reality, to assure that we continue to advance our priorities for teaching, research, and service. Our principal sources of revenue are all likely to be affected by these new economic forces. Consider, first, the endowment. As a result of strong returns and the generosity of our alumni and friends, endowment income has come to fund more than a third of the University's annual operating budget. Our investments have often outperformed familiar market indexes, thanks to skillful management and broad diversification across asset classes. But given the breadth and the depth of the present downturn, even well-diversified portfolios are experiencing major losses. Moody's, a leading financial research and ratings service, recently projected a 30 percent decline in the value of college and university endowments in the current fiscal year. While we can hope that markets will improve, we need to be prepared to absorb unprecedented endowment losses and plan for a period of greater financial constraint. The economic downturn also puts pressure on other revenues that fuel our annual budgets. Donors and foundations will be harder pressed to support our activities. Federal grants and contracts for sponsored research will be subject to the intensified stress on the federal budget. Tuition remains an important source of revenue, but in times like these we want to keep increases moderate, mindful that many students and families are facing economic strain. Over the past several weeks I have been meeting individually and collectively with the deans of the faculties, as well as the Corporation, to share ideas on how we can best respond to this changed economic environment. We need to sustain our high academic ambitions at the same time that we bring greater financial discipline to all our activities. We have to think not just about what more we might wish to do, but what we might do at a different pace or do without. Tradeoffs and hard choices that can be avoided in times of plenty cannot be averted now. And, given the ongoing volatility and uncertainty, we need to plan and budget with a range of contingencies in view, including scenarios for reducing our spending both this year and next. As we plan, we must also affirm our strong commitment to financial aid for our students. In Harvard College , that will mean carrying forward our recent years' initiatives to make a Harvard education affordable for outstanding students from low- and middle-income families. As before, families with incomes below $60,000 will pay nothing to send a child to Harvard College , and families with incomes up to $180,000 and typical assets can expect to pay no more than approximately 10 percent of income. Across our graduate and professional schools, we will maintain financial aid budgets at least at their current levels -- and ensure that our students still have access to needed loans, even though many banks are making them less readily available. We have long been dedicated to research and the discovery of new knowledge across a wide range of fields of scientific and humanistic inquiry. In recent years we have made significant investments toward breaking down intellectual barriers across disciplines and across Schools to generate new knowledge and to develop new courses and educational opportunities for our students. These commitments must continue to guide us as we make decisions and choices in a significantly more constrained fiscal environment. Harvard values its reputation as a stable and supportive employer, and we view our workforce as a critical part of all we do. We recognize as well the responsibility that comes with being one of the largest employers in the commonwealth of Massachusetts . At the same time, changing financial realities will require us to look carefully at compensation costs, which account for nearly half the University's budget. We are assessing all aspects of our ambitious capital planning program, including the phasing and development of our campus in Allston. We are working with administrative and financial deans from across the University to develop new approaches for generating both savings and new revenue sources, building on the ideas and best practices of each of the Schools. Harvard is a famously decentralized place, and one size will not fit all. Each School will face its own particular challenges. But we must at the same time join together to address these new circumstances with creativity and a spirit of common enterprise. Today, perhaps as never before, we need to work collectively to develop approaches and efficiencies that will allow every part of Harvard to thrive in the years to come. Together, we must continue to advance the priorities that define us. For all that has changed in recent weeks, we remain devoted to attracting the very best students, faculty, and staff to Harvard. We will undertake the daily work of education and scholarship with the same intensity and imagination. We will set our academic sights just as high, and we will ensure that the ambitions and vibrancy of our community and the strength of its commitment to the pursuit of truth remain unsurpassed.      Drew Gilpin Faust

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Why Mocking Can Backfire and Why Attacking is Not Always a Good Strategy

	jackddeal as long as Axelrod and Burton remain in charge of Obama's campaign we are giving McCain-Palin a great chance to win...duh... less than 5 seconds ago from web
	jackddeal "We're not running against Gov. Palin." --David Axelrod...oh yeah, then why every day are Biden and Obama attacking her? less than 5 seconds ago from web
	jackddeal "It was just like a month ago they were all saying 'experience, experience, experience.' Then they chose Palin" --Obama; and Obama? less than 5 seconds ago from web
	jackddeal how will Obama be viewed 'mocking' McCain? where was the high road? doesn't Burton have any other strategy? less than 5 seconds ago from web
	"She's going to have to answer questions. She's going to have to say where she wants to take America" --Joe Biden on CNN.com less than a minute ago from web
	today again Burton had Obama and Biden attacking Sarah again...looks like that's the whole strategy...while McCain's image rises...duh... about 7 hours ago from web
	time is running out on any big decision and it might be too late already...firing Burton and Axelrod would look bad with little time left... about 14 hours ago from web
	at least Burton should know what to say, even if he doesn't know what to do...groan... about 14 hours ago from web
	clearly Chairman Burton is clueless and what can be gained by his continued mistakes and goofs? he doesn't even know what to say... about 14 hours ago from web
	with all the braintrust in the Demo inner circle it certainly must be hoped there is someone with some idea of what is going on... about 14 hours ago from web
	we are in trouble because we have no strategy except attack Sarah or say McCain is a clone of Bush; after a certain point, that rings hollow about 14 hours ago from web
	like Willie Brown said on CNN, we Demos are in trouble and that is the truth... about 14 hours ago from web

Coaching and Mentoring for Managers, Executives and Owners

Coaching and Mentoring for Managers, Executives and Owners

---

Reply to: [email protected]
Date: 2008-05-06, 6:59PM PDT

Sometimes managers, executives and owners need to make slight behavioral and perceptual changes to compete on strategy in today's markets. Sometimes they need someone to help then go through those changes so they can get to that level. Sometimes these decision makers also need someone to "run things by" or "bounce ideas off of"; someone that isn't an employee, friend or relative. If you or one of your team members needs coaching or mentoring to get the edge reply to this ad or contact JD Deal at 831-457-8806.

• Location: Santa Cruz
• it's NOT ok to contact this poster with services or other commercial interests

PostingID: 670886115

We All Learn by Falling Down or Negative Reinforcement is a Great Teacher

My editor and I were sitting on a bench on the edge of a park discussing my awkward syntax when we noticed a young boy walking with his father.  At the edge of the swings and slide area was a wooden border about one foot high.
   
The little boy was balancing on this wooden mini-fence when he fell -- taking a tumble such as only an inexperienced and innocent two year old can manage.   He landed on the asphalt sidewalk and was as startled as much as shaken.
 
Like a downed athlete he tried to gather himself as his father picked him up.  The boy's surprise turned to fear when he saw the scrapes on his knee and elbow.  Tears came to his eyes but he did not cry.  His father made certain he was not injured and set him back down.

For several minutes the young boy stood there. Finally his father told him it was time to go and started walking away.   The boy turned to the wooden border and stepped back up. 

As he finished walking down the section he jumped triumphantly off with the flair of an athlete who had just scored.  His face beamed with accomplishment.

This incident kept replaying in my head for several days.  There were several points that kept standing out.
   
The first was the surprise the boy had when he fell.  The pain, although intense, was not necessarily more than the surprise.  The second was the father did not pick up his son and say the sorts of things like "it's all right" or "the hurt makes it better."
 
It clearly wasn't all right and the hurt did not make things better.  Once the father realized his son had no real injury, he allowed his son to learn from the experience.   

The son was allowed to deal with the reality himself and on his own terms.  There is an old saying that goes "that which does not kill, strengthens..."  Maybe it's something like that.
 
Then the boy climbed back up and continued the quest.  The challenge and fun far outweighed perceived pain and risk even though he had been shaken and scared just moments before.   

The joy he expressed when jumping off showed that not only had it been fun but he had overcome a significant challenge and was proud of that accomplishment.
 
There is a parallel in the workplace.  A good manager lets his people take certain risks and fail.  When they fail, the good manager does not chastise or degrade.  The good manager allows her people to learn from their mistakes and failures and to try again.

Because the boy found the fortitude to try again he not only succeeded but gained the experience of facing an obstacle and overcoming it. Many parents and managers will not allow this simple process to take place. 

By denying their children and employees opportunities to make mistakes they unwittingly force compliance and even silly over cautiousness. Good managers and good parents allow their employees and children to learn to help themselves.
 
The results in the workplace are clear.   Those employees that are engaged enough to try new ideas are almost always better employees.   Those employees that learn and improve are more productive.
 
And the same can probably be said for children...

Can Innovation be Engineered? Creativity, Measurable, Free Flow, Counterproductive, Restraints, Optimized Brain

    Increasingly in today's business environment the need to innovate has become a key for success.   Innovation does not have to be the big patents or major product breakthroughs.   Innovation can be figuring out how to do something better and more effectively, no matter how small or trivial the innovation may seem.   What made Einstein, Edison and Leonardo da Vinci such prolific creators?

     The problem with creativity is that it often is not tangible or measurable.   The scientific experts tell us they don't know what it is but business people say it is becoming increasingly important in the workplace.  Some countries and cultures have a different propensity toward innovation with some countries having little or no marketplace innovation.   

     Like morale and image, creativity becomes more accepted if it is kept in company conversations and meeting agendas.    Since innovation is not a commodity, the rules for managing commodities do not apply here.   That is why some of the biggest companies are the worst innovators.  Reward creativity as soon as you see it.   

     Innovation centers around the free flow of ideas and questions.   Any management  system that creates obstacles for this flow is being counterproductive.   The question to ask is "what can we do to become more creative and innovative?"   

     Creativity and innovation cannot be turned on and off like a faucet.   One strategy is to let the creative juices flow when they flow naturally; when they are not turn to other tasks to  get them out of the way. 

      When looking at  your company's business model; try to define the constraints, limits and focus of  your creative efforts.   There are no limits but there are constraints...it is important your people know these. 

     Track your company's ideas and innovations on spreadsheets.   This will let your people know you are serious about gaining a creative advantage. 

     If your people aren't interested in ideas and being creative, find new people that are.  Hopefully you will hire these people before you go out of business. 

     It  does appear that the free mind is also the creative mind.   Harsh external conditions may in fact cause the creator to focus more on their own creativity.   

     Inquiring implies effort on the part of the learner.  This takes the focus away from the self and shifts it to society and the world at large.   People that are interested and busy pursuing those interests don't have a lot of time to sit and worry...

     There appears to be some link between genes and interests but at this point there is not much known in this area.   When an individual is able to follow their interests the genes and energy match up and it appears that creativity is also enhanced as well.   That does not mean that by simply following one's interest one can induce creativity.   It simply means that the set and setting is optimized and with the brain working at a furious pace ideas can be generated.   

Jack D. Deal

    

    

We All Learn by Falling Down; Athlete, Perceived Pain, Risk, Compliance, Silly Over Caution

     My editor and I were sitting on a bench on the edge of a park discussing my awkward grammar when we noticed a young boy walking with his father.  At the edge of the swings and slide area was a wooden border about one foot high.   The little boy was balancing on this wooden mini-fence when he fell -- taking a tumble such as only an inexperienced and innocent two year old can fall.   He landed on the asphalt sidewalk and was startled as much as shaken. 

     Like a downed athlete he tried to gather himself as his father picked him up.   The boy's surprise turned to fear when he saw the scrapes on his knee and elbow.  Tears came to his eyes but he did not cry.  His father made certain he was not injured and set him back down.

     For several minutes the young boy stood there. Finally his father told him it was time to go and started walking away.   The boy turned to the wooden border and stepped back up.  As he finished walking down the section he jumped triumphantly off with the flair of an athlete who had just scored.  His face beamed with accomplishment.

     I thought about this incident for several days.  There were several points that kept  going through my head.   

     The first was the surprise the boy had when he fell.  The pain, although intense, was not necessarily more than the surprise.  The second was the father did not pick up his son and say the sorts of things like "it's all right" or "the hurt makes it better."  It clearly wasn't all right and the hurt did not make things better.  Once the father realized his son had no real injury, he allowed his son to learn from the experience.   The son was allowed to deal with the reality himself and on his own terms.  There is an old saying that goes "that which does not kill, strengthens..."  Maybe it's something like that. 

     Then the boy climbed back up and continued the quest.  The challenge and fun far outweighed perceived pain and risk even though he had been shaken and scared.   The joy he expressed when jumping off showed that not only had it been fun but he had overcome a significant challenge and was proud of that accomplishment. 

     I still think about this incident and especially when I'm in the workplace.  A good manager lets his people take certain risks and fail.  When they fail, the good manager does not chastise or degrade.  The good manager allows her people to learn from their mistakes and failure and to try again.  Because the boy found the fortitude to try again he not only succeeded but gained the experience of facing an obstacle and overcoming it. 

     Many parents and managers will not allow this simple process to take place.  By denying their children and employees opportunities to make mistakes they unwittingly force compliance and even silly over caution.    Good managers and good parents allow their employees and children to learn to help themselves. 

     The results in the workplace are clear.   Those employees that are engaged enough to try new ideas are almost always better employees.   Those employees that learn and improve are more productive. 

     And and the same can probably be said for children...

Jack D. Deal

    

Business Success and the Free and Inquiring Mind; Dreams, Migraines, Opportunities, Intellectual Stimulation, Success, Risk

     So what attitudes bring the best business results?   It's more than just having a positive attitude...the bankruptcy courts are full of those that knew they could never fail.   We all know people that have inquiring minds and those that have closed minds.   Below are some ways we can contrast ways of thinking and gain some insight as to how that effects the bottom line:

• Free and inquiring minds chase rainbows and build dreams.   The closed mind only remembers the past and somehow hopes it will return. 
• Inquiring minds take more risks and subsequently fail more often.   They also succeed more often.   
• A  closed mind has fewer headaches in the short term but more migraines in the long term. 
• The inquiring mind gets more decision making practice and consequently develops better decision making skills.   Successful businesses consistently make good decisions. 
• The closed mind is not only more sluggish but also tends to restrict options and miss opportunities.  Today those companies that don't take advantage of opportunities will eventually fail.   
• The free and inquiring mind is better adapted to facing new circumstances.   The closed mind  is more likely to ignore the new until it becomes painful and overwhelming.   In today's markets those that ignore the new rapidly become the obsolete.
• Inquiring minds tend to hire inquiring  minds; close minds often hire those that are less capable and pose less of a threat.   
• Inquiring minds hit upon more breakthrough strategies.   Closed minds tend to trade on what they always have traded on...
• Inquiring minds become more adept at facing realities while closed minds try to make realities fit their perceptions.   
• Inquiring minds seek challenge and the satisfaction of meeting a challenge.   Closed minds avoid the difficult and are constantly seeking a comfort zone.
• Inquiring minds thrive on intellectual stimulation while closed minds go with the tried and true they already know.
• Inquiring minds look for potential and improvements.   Closed minds look to habit and precedent.   
• Inquiring minds view failure as the path to success.   Closed minds avoid failure since all failure is perceived as risk.

     So often it is a thin perceptual line between success and failure.   One has to wonder if all those businesses that go under had simply made a few perceptual adjustments, their outcomes would have been different.   

Jack D. Deal

    

Yes, But Are You Happy?; Rat Race, Big Contract, Paycheck, Egocentric, Envy, Templates, Formulas

     By chance I met an acquaintance I had not seen for some time.  We had always had lively discussions when we spoke and we both were between appointments so we struck up a conversation.  We updated each other on recent successes and failures and touched briefly on the old alma mater.

     After the pleasantries we entered into the more 'important' things.  He spoke of a friend that had gotten out of the rat race for a year or so.   At that point another company offered her a big contract and she felt compelled to accept an offer that was not meant to be refused.   I was impressed with the salary and we both joked about what kind of weekly paycheck that would make. 

     Being the selfish, egocentric Californians that we are, we were both envious.   

     On a whim, perhaps a whim based on envy, I asked the simple question,  "Yes, but is she happy?"

     My friend became silent.   No, he finally answered.  She was definitely not happy.  A year ago she had left her career work because it was no longer satisfying and at 70-80 hours a week she had no personal life.  She had hoped at some point to remarry but was feeling she was already married to her job and no suitor could  break up the family.    If it were not for the money she would quit and do what she really wanted to do.  But the big salary did not make her happy either.   It sounded crazy but she just could not give up her fragmented life and so continued to remain miserable. 

     We ended up our conversation slapping each other on the back and saying how lucky we were to be doing what we are interested in.   We agreed to talk soon but both knew our busy schedules would not make that possible anytime soon.   Our conversation had lasted a half hour yet this conversation is one I have replayed in my head many times.   Yes, but are we happy?   

     Thinking about the workplace I was about to enter I knew I would not see many happy people.  I would see owners that hate their industry, employees and customers.  I see employees that show up for work only to get a paycheck.  They whine and complain and nothing is ever good with them...I see managers snap at employees as if they were unruly school-kids.   Why do people do work they do not like?  Why don't more people do what they want?

     The question is an intriguing one.  Most of my interest has been generated by the concept that a happy worker is a more productive worker.   Make the worker happy and watch production soar.   On a simplistic level this is almost always true. 

     But it goes past the simplistic.   Each of us must look deeply inside and what each of us sees will be different.  There are no formulas or templates.

     Many of us are possessed with our own happiness -- the United States was founded on the principle that we all have the right to pursue their own ways.  Consequently this is one question each person must answer for himself. 

     And always that nagging question -- Yes, but is she happy?   

Jack D. Deal