Early Momentum

We spend a lot of time at work. For many people, that time is spent in a particular workspace. Your workspace may be an office, a cubicle or even a vehicle.

The typical workspace is adorned with posters, paintings, pictures of family, and miscellaneous trinkets. These things are great as they bring personality and color, however I would like to propose three additional things to add to your workspace. Each of these things are common in the workspaces of leaders and top performers. They are designed to inspire, encourage and motivate.

1. Pictures of role models-for inspiration
There is nothing like daily reminders in the form of photos of the people we look up to who inspire us to be at our best. This includes people we know as well as those we’ve never met. It may be a teacher, an athlete, an author, a speaker, a pastor, an entrepreneur or an entertainer. And by no means do they have to be a celebrity. For some it may be a neighbor or coworker. Having pictures of people who’ve positively influenced your life and who you have great respect for serves as a constant reminder to us of the kind of person we want to be.

People never improve unless they look to some standard or example higher and better than themselves.-Tyron Edwards

2. Items of accomplishment and recognition-for encouragement
This includes trophies, diplomas, letters of recognition, certificates of accomplishment or virtually any kind of award. When you’re in the middle of a tough day or when you are facing a seemingly insurmountable obstacle, it is encouraging to have reminders around you of your past accomplishments. It’s as though they speak to you saying you achieved great things in your past, therefore you can and will do so again in the future! If you don’t have a lot of these things in your life yet, begin to earn some. Start small if you have to. Even a kid can go join the reading club at the local library, read a few books, and get a certificate!

Please stop teaching my children that everyone gets a trophy just for participating. What is this, the Nobel Prize? Not everybody gets a trophy.-Glenn Beck

Pictures of your goals-for motivation
When you examine goal setting literature, you will find this to be a common recommendation. It really does work! I have a very successful friend who owns his own company. In his office he has a large bulletin board on the wall covered in pictures that represent his goals. The pictures include suits, toys, vacation spots and more. The pictures are ever-changing as he accomplishes a goal, and then updates the board. He says having a visual reminder of his goals in front of him throughout his workday is a constant reminder to work smarter whenever possible. Not just to accomplish his goals, but also in order to have the time to enjoy the good things in life.

In life we tend to get what we think about most of the time. What is it you wish to be, have or do? Whatever it is, you don’t have to look any farther than magazines or the Internet to find motivating pictures for your workspace. Keeping visual representation of your goals keeps you moving towards their accomplishment and a fantastic future!

When you think something, you think in picture. You don’t think a thought in words. You think a picture that expresses your thought. Working with this picture will produce it into your experience.-Grace Speare

  There you have my three recommendations to fill your workspace (or home, room, locker etc.) with. If you haven’t done it yet, perhaps it’s time to redecorate.

Yesterday while driving home from work well into the evening, I found myself stuck in a traffic jam on the freeway. This was well after rush hour and I was beyond hungry looking forward to a bite to eat and getting home. Needless to say, frustration began to set in.

I assumed there was an accident and sure enough as I continued down the freeway with all the other people stuck in the traffic, there was a sign indicating as much. I hate to confess that in my human nature,  my first thought was that somebody was probably driving recklessly and as a result had adversely affected the evening for thousands of people. I quickly stopped myself in the middle of that thought, and corrected myself recognizing that as bad as it might have made my night, I should be thankful that I wasn’t involved in the accident myself  and that I should be sympathetic for the people who were involved. Eventually, after getting off at the next available exit and taking side roads all the way home, I had a late dinner and settled in with the family.

Later on the 10 o’clock news, the accident that caused the traffic jam was covered. Turns out a lady had swerved to avoid rear ending another car and as a result her car flipped causing her to be thrown from her vehicle. She was killed instantly.

Earlier the same day, news spread of the tragic mining accident in West Virginia in which 25 people suddenly lost their lives. A few days before that in Washington state, there was a refinery explosion which resulted in five more lives being lost.

I write of these things now not to be bleak or to depress you, but rather to share some reflections that I have made coming from hearing these stories. In all of these cases, they involve people of different ages and different backgrounds. I’m sure every one of them had plans for their futures if not inspiring dreams. They got up and got on with their normal daily routines having no idea what would be around the corner for them. Each of them had some kind of family. Perhaps parents or grandparents, perhaps children or grandchildren, perhaps a spouse. Despite all that, their lives were unfortunately cut short.

We can (experience) life in three different ways: (1) by doing a deed; (2) by experiencing a value; and (3) by suffering.-Victor Frankl

When we hear of stories like these, or more dramatically when we experience the unexpected loss of a loved one, it is important to let life touch us and capture the lesson. For me, the lesson teaches that even though I already say I understand and pay lip service to the concept of telling people what they mean to me on a regular basis, I must be disciplined and actually do the deed.

It also serves as a reminder of how short life is. With all the things I still want to see and do in my lifetime, I’m sure that if I were to live to 100, in hindsight it would feel like life blazed right by. Yet every day in the world thousands of people have their lives snuffed out by unpredictable misfortunes in everyday life such as a collapsing building, a mis-timed lane change or a faulty amusement ride. For many of them it happens before they’ve had a chance to truly experience much life at all.

There is no cure for birth and death save to enjoy the interval.-George Santayana

As I write this, I am reminded of the kamikaze pilots from Japan in World War II. Every single day they woke up, they learned to embrace that it may be their last day on earth. The kamikaze forces shared the philosophy that we should learn to live life as though we will live forever while at the same time learning to live life as though today was our last day on earth. That’s a high ideal to be sure, but also a wise one.

 My intent is not for this to be a message of doom and gloom. But rather one of encouragement. I hope you will be encouraged to pause for a moment and appreciate the life you have lived so far. Then I hope you will consider tomorrow not to be just another day, but rather a gift of the human experience that we share. I also hope you’ll take a moment to think about the people who are important to your life.

There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.-Albert Einstein

 Finally, I want to give you a challenge. As soon as you finish reading this, take some kind of action to let somebody important to you know how you feel about them. It may be your spouse, your parent, your sibling  or your child who’s in the other room. If you’re by yourself, then make a phone call or even send somebody an e-mail.

Family means too much, friends are too valuable, and life is too short to put off sharing with people how much they really mean to you.

We sure do seem to like top 10 lists. From late-night talk shows to the sports pages we find them all over the place. You can find one for almost anything such as the Top 10 Perfectly Timed Sports Pictures to the  Top 10 Funniest Quotes. But what’s even better than reading other people’s top 10 lists is to create our own!

I started doing this a few years ago in my journal writing. Not only is it fun, but it’s a great way to really capture the great experiences and interests in your life. It’s also fun to look back years later and see if/how your top 10 lists have changed over time. As an added benefit, you’re now ready to strike up conversation when somebody asks you what is your favorite X or when somebody asks you for a recommendation on a common interest.

So in keeping with the theme, here’s my top 10 list of top 10 lists to consider creating for yourself to get started with. Of course you can add a list for what ever interests you have!

10. Restaurants
Give some thought to your favorite places to eat at. Be it fine or casual dining, eating out with friends and family is one of life’s simple pleasures.

9. Books
From entertainment to knowledge, books can be so valuable. What’s on your list for books that have inspired, taught, and motivated or otherwise benefited you?

8. Movies
A common conversation point, one that can certainly lead to some fun debates!

7.  Music
This list is the one that perhaps changes the most over time. There’s also plenty of more specific lists you could create under this such as live concerts, musicians, CDs or individual songs.

6. Travel
Capture the places you’ve been to. Reviewing this list is great for reflection on your experiences visiting places near or far from home.

5. Dislikes
This might seem odd at first, but it’s good to determine the things in your life that you are annoyed by or even  passionately against!  It’s a handy list to have when deciding where to contribute your resources in the name of charity as well.

4. Interests
I have found that boring people are often people who have never taken the time to figure out what interests them. When you give thought to what your interests are, you will know how to better spend your free time. Additionally, it gives direction as to where to develop new friends and acquaintances.

3. Accomplishments
For motivational purposes, this is one of the best top 10 lists you can possibly make. When finding yourself feeling less than your best, you can’t help but feel better when you review a list of some of the greatest things you’ve done in your life!

2. Goals
This one is major! This is the top 10 list that will truly help inspire and motivate you for the future. It is also a list that will hopefully be ever-changing as you accomplish your goals over time and replace it with new ones. Of all the lists, this is the one to post in a place where you can review it daily!

1. Experiences
Creating a great lifestyle is all about having experiences! In fact, almost all of these other recommended lists stem from having experiences. So this list is reserved for the best of the best in your life. From trips, family reunions, graduations, activities or events attended, anything important to you is fair game for this list. Think of it as the best possible way to communicate to somebody all about who you are in 10 bullet points.

Well there you have it. My top 10 top 10 lists. Have fun creating your own!

Compliments are one of the best gifts a person can give or receive. A great thing about them is that they cost us  nothing but the time it takes to speak or write them.

I can live for two months on a good compliment.  ~Mark Twain

Compliments are a form of feedback that is always positive. It is designed to give recognition and/or appreciation to the person receiving it. One of the best things you can do to develop healthy relationships with others is to learn how to both give and receive compliments.

To give effective compliments it is important to be specific. Instead of merely telling somebody you love their house, be specific. Is it the color? Is it the décor in the living room? Likewise, if you’re complimenting somebody’s performance in a play, specify what it was that you liked best. Was it the way they said their lines? Their body language? A particular response to a dramatic moment? Being specific adds value to the compliment and lets the individual receiving it know exactly what they’re doing well and instills pride in their possessions or accomplishments.

To give effective compliments it is also important that we are sincere. So long as it is sincere it is a compliment. If it is not sincere, it is flattery. There’s a big difference between the two. Flattery is almost always seen through by the recipient. The rule is if you don’t really mean it, don’t say it.

Remember when we give a compliment that it is a gift! Therefore, never expect anything in return. Also, never give a compliment right before you ask for something. It will quickly deflate the value of it.

Some people pay a compliment as if they expected a receipt.-Kin Hubbard

Now let’s talk about receiving a compliment. Remember, a compliment is a gift of recognition and/or appreciation. Therefore we should treat it as though we are receiving an actual present.

If someone gives us a present for our birthday or at Christmas, we would never refuse it. We know that would be considered rude. Yet many times we do that when we receive a compliment by saying something like:

“It was nothing, really”

 ”This old thing? I got it on a clearance rack.”

“It was just luck, so and so should have taken first place.”

I’m sure you can you can relate to doing this in the past or have seen this from others. Perhaps we do it out of trying to appear humble. But usually, if we are truthful with ourselves it’s a lack of self-confidence.

So how should we respond when we receive a compliment? We should do it with class and sophistication. Some examples of replies are the following:

“Thanks, this is one of my favorite colors.”

“I appreciate you saying that. I worked very hard at it.”

“Coming from you, that means a lot!”

“Wow, you just made my day!”

A compliment is verbal sunshine.-Robert Orben

Perhaps the greatest thing about giving a meaningful, sincere compliment is that the giver also becomes the receiver. When you do it, you can’t help but feel better about yourself.

Over time it’s become fairly easy for me to pay compliments to those who I know. But recently I wanted to take it to the next level. I decided I would challenge myself to look for opportunities to pay a compliment to a complete stranger.

Recently, I passed a man in line at a restaurant and couldn’t help but notice he was wearing a great-looking tie. Based on his tie and his overall outfit, it was obvious he put some thought into his appearance. At first I continued on my way. But then my challenge to myself popped into my brain at that very moment. I turned back around, walked up to the gentleman, and said “excuse me, I couldn’t help but notice that is a great-looking tie!” The man paused reflecting on what I just said, smiled from ear to ear and replied “thank you very much, it’s one of my favorites!” It was evident my compliment had made his day. I’m sure it stayed with him for hours to come. But perhaps most amazing was how great I felt for the next number of hours.

If this all resonates with you, think about ways in which you could pay compliments to others today. How could you affect their lives by simply making observations and speaking or writing a few good words? Furthermore, consider taking on the challenge of finding ways to compliment even a complete stranger. Perhaps it is the checker at the grocery store who has a great smile. Maybe your mailman who delivers your mail every day at the same time. How about the presenter at a class or workshop?

Compliments are like currency. Why not be a philanthropist?

One thing I have learned in creating a great lifestyle is that experiences are much better than things! Reflect on the things you remember best or talk about most from your life and I bet you’ll agree. 

Experiences create our life’s best memories

I’ll bet your fondest memories in your life have to do with concerts attended, trips taken, games played, and holidays and time spent with friends and family. In your final days it is these things you will cherish. You will not be thinking nearly as much about the cars you have owned, the clothes that you wore or toys you purchased.

Happiness comes of the capacity to feel deeply, to enjoy simply, to think freely, to risk life, to be needed.-Storm Jameson

Experiences make us a better conversationalist

I have much more to talk about with you in a conversation if we have both been to Hawaii than if we both have a flat screen TV. I will bring you more value sharing with you what I learned at a seminar or class than sharing with you about my new golf clubs.

In my life, I will always choose travel over a larger home, the option of going out to dinner with friends or family over a couple new DVDs and going to a live event over acquiring another trinket to put on a shelf.

Life is the collection of experiences, their frequency and their intensity.-Jim Rohn

As you set goals for yourself, and as you consider how you will spend your limited resources of time and money, I encourage you to place the acquisition of  experiences over the acquisition of things!

This is part two of a series of posts on the subject of making the most of your money. Part one is The power of compound interest. Stay tuned for the next post of this series.

One of the most important things you can learn in order to help assure your financial success is the concept of consequence costs. With every purchase you ever make, there are consequences attached to it. At the very least the consequence is not being able to use the money you spent on something else. But often, there are additional consequences in the form of time, energy, options and follow-up costs.

The ultimate example of a purchase with many consequence costs is a pet. Now before you consider me a pet hater, let me assure you I’m not. I fully understand the value and companionship a pet can bring someone. In fact my family has a pet cat named Sam that was a birthday present for me, however he turned out to be more of a family gift. I think my birthday was just an excuse to get him.

He started out so adorable. Little did I realize the consequence cost of his developing annoyingly bad habits. 

As great as pets are, many people make a decision to get one on a whim without taking the time to think about the ramifications. Sure they consider the initial price tag and maybe the upfront shots and licenses. They even realize there will be the ongoing purchase of food. But generally they do not really count the costs long-term. For example, a large size dog is estimated to cost $1,500 in the first year and $700 each year thereafter. With an average life of 14 years, that amounts to $10,600. If one were to invest that amount of money for 20 years at 6% interest, they would have $33,995! For the costs involved for other various pets, see this chart.

Now even if the money is a non issue, it’s important to consider the other consequence costs of a pet. Now that I have a cat, there is energy and time costs of additional house cleaning, additional errands to a pet store for quality products (the cat doesn’t settle for the low-class stuff from the grocery store), and every time my family wants to get away we must arrange plans to have Sam taken care of by family or friends or spend the additional money for boarding. For a dog owner, add the needed daily walks of the animal regardless of the weather or how busy they may be.

Before moving on, let me just reiterate that I think pets can be great. Some people love their pets as though they were their children. Just be sure to think it through when you make the decision on whether or not to get a pet. You have to make sure that the value it brings outweighs the costs. Unless it’s a fish. The kids talked me into getting some fish. We picked out two. One died soon after (I think the other fish killed him, if not by intent than by hogging all the food). At first each morning upon waking I’d walk by the fish tank and say “what cool little fish.” Now upon waking I walk by the fish tank and say “oh, you’re still alive.”

While pets are an obvious example of purchases that have consequence costs, it’s important to give thought to the ramifications of every purchase large and small. For every item you ever bring into your home or life, it means you have one more thing to clean, one more thing to store, one more thing to maintain and one more thing to move every time you relocate. This means taking your time and your energy from doing something else. Sometimes people acquire so much stuff that there is the consequence cost of needing to purchase a larger home or a storage facility just to house it.

To paraphrase Jim Rohn, some people miss out on the treasures of life because they’ve blown all their money on the trinkets of life!

Before making a purchase of any kind, take a moment to consider a couple things.

What will be the follow-up costs in money, time or lost options with this purchase?

Is there something I would rather have that will be delayed or canceled If I make this purchase now?

Wealthy people count the costs, both initial and consequential, of every purchase. Developing this habit early will do wonders for moving you towards freedom in both your finances and lifestyle.

I saw a diet book the other day called The Fat Flush Plan. I thought “if only it were that easy!” I then wondered if it worked as well as the Playboy Buddy Rose Blow Away Diet.  

I recently had a great conversation with a friend from the country of Morocco. He has lived in the United States for about two years. On the subject of the cultural differences he has observed in Americans,  in his opinion, we have a tendency to want everything  now. We seem unwilling to enjoy the ride towards our goals and the work me must do to reach them. Many of us already know this to be true, but it is interesting to hear this conclusion coming from someone relatively new to our country. Even if we don’t want to acknowledge it, the facts stare us in the face when we examine our society today.

As of early 2010, our nations housing market is in shambles. Nearly 25% of all mortgage borrowers owe more on their loans than their homes are worth! While there are multiple factors in this dilemma, it is in large part our desire to get into a house, and then a bigger house, before we’re ready that caused us to get here. Millions of Americans rush in over their heads unwilling to take the time to develop a reasonable down payment. “No money down” sounds great for a major purchase until the economy takes a slide downward.  

We see the “must have it now” culture every time an athlete takes steroids, an accountant cooks the books, or when a student cheats on a test. They are taking the path of least resistance. Human nature to be sure, but somehow when we do such things, I can’t help but think that it erodes our self-confidence. Having to go to sleep at night knowing that we didn’t really earn our accomplishments is no way to live.

I have nothing to offer but blood, toil, tears and sweat.-Winston Churchill

Here’s what truly feels amazing and builds our confidence. Winning a game on our own merit. Paying cash for our purchase. Receiving recognition and awards due to our hard work and diligence. It is the hard work and sweat that make us appreciate our possessions, promotions and awards.

It is good for an ambitious person to be impatient with himself when progress is not being made. It is not good to be impatient when progress is being made, even in small amounts. I encourage you to go for the big play, the hail mary, but don’t neglect to appreciate the one-yard gain! Real success takes time. The person who seems like they lucked into “overnight success” rarely did. In reality it was their day by day activity that eventually compounded into a breakthrough. 

Celebrate one more test passed!

Celebrate one more sale!

Celebrate one more contact made!

Celebrate one more pound added to your bench press!

Celebrate one more ounce of body weight reduced!

Celebrate one more sentence written!

Celebrate one more dollar saved!

The Japanese have a word for this concept. It is called Kaizen and it means continuous improvement in small increments. For some reason we don’t have a word in the English language for this. Perhaps you can think of a new word for our vocabulary. Or learn Japanese.

When I was in school, I really had no idea what DECA was all about. The only thing I knew about students in DECA is that they were the ones selling school sweatshirts and those AWESOME Otis Spunkmeyer chocolate chip cookies in the student store. If I knew then what I know now, I would have made sure to join DECA.

Here is a brief summary of DECA from their website.

More than 60 years ago, DECA organized around an ambitious goal: to improve education and career opportunities for students interested in careers in marketing, management and entrepreneurship. What began with a few hundred students in 17 states has grown to over 185,000 students in all 50 states, Canada, Guam, Puerto Rico, Germany and Mexico.

DECA’s objective is to support the development of marketing and management skills in career areas such as hospitality, finance, sales and service, business administration and entrepreneurship. Programs and activities are tailored to the specific career interest of students and include technical skills, basic scholastic and communication skills, human relations and employability skills, and a strong emphasis on economics and free enterprise.

Over the years I have been a guest speaker for DECA classes and can tell you that their students are at another level of excellence. Furthermore, every single DECA student I have ever hired or worked with turned out to be a top performer who eventually advanced into management.

If you are a student who is even remotely interested in a career in business of any kind, I highly suggest you investigate DECA for yourself.

 If you are a business leader or manager responsible for hiring, I highly recommend you reach out to your local high school or college DECA chapter.  

Click here for the DECA website.

It seems we are still watching more and more television. In fact recent Nielson reports say the average American today watches 151  hours of television per month! That’s about what we spend at a full-time job!

Now I don’t believe that TV is evil, nor do I believe that there is no place for it in our lives. In moderation it can serve us. For example, comedy television makes us laugh which is healthy and a great stress reliever. A great movie or well written drama can be entertaining. Again, in moderation.

Unfortunately, the vast majority of TV watching, and certainly the average person’s quantity of it, is in direct conflict with reaching our potential and living a fulfilling life. For most people, the programming they view brings no value to their lives. The saddest thing about excessive television is that we are living vicariously through strangers .

I find it interesting that so many people will sit at home and watch a sitcom like Friends. What’s happening here? They are watching fictional characters visiting one another, going out for coffee, and sharing life experiences. Really? How about developing some real friendships of your own. Go out with a real life friend for coffee, good conversation and the creating of life experiences!

Often times people fantasize about having the fine cars, nice homes, and fashionable clothes everyone seems to have on their favorite TV shows. Yet it is excessive TV viewing that is keeping them from acquiring those things for themselves. Sitting on a couch watching instead of doing will not bring you the good things in life. The ironic thing is this, it is our watching these people living the “good life” on-screen that pays for them to make it their reality.

. . . it is our watching these (actors) living the “good life” on-screen that pays for them to make it their reality.

The “reality TV” craze we’ve been experiencing for the last number of years is perhaps the most perplexing. I just don’t get watching other peoples so-called “real” lives played out before us instead of living our own.

Turn off “The Biggest Loser” and get to the gym!  Get outside and go for a jog! Lose your own weight and stop watching someone else improve their health and energy!

Turn off  “The Bachelor” and go create your own romance! If you’re married and dreaming about a better marriage, than go to work on it.

Turn off “The Apprentice” and go build your own business and entrepreneurial skills. Get out there and build your own enterprise.

Can you think of someone who frequently complains about being out of work, a stagnant career, or not having enough money? Often times it is these very people who can bring you up to speed on all the celebrity gossip, talk show topics, and who got voted of the island! What if they used even half of their TV time for self-development, earning money, and improving their lifestyle?

The choice is ours!

Albert Einstein is rumored to have said “the most powerful force in the universe is compound interest.” I say rumored because as much as his quote is used in financial circles, its debated whether he really said it or not. Regardless, it’s a pretty valid statement.

Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also itself earns interest. This addition of interest to the principal is called compounding (i.e. the interest is compounded). A loan, for example, may have its interest compounded every month: in this case, a loan with $100 initial principal and 1% interest per month would have a balance of $101 at the end of the first month, $102.01 at the end of the second month, and so on.                  Wikipedia

Compound interest can be for or against you. It is for you when it is applied to the money you’ve saved. It is against you when it is applied to money you owe (either a loan or credit card debt for example). For now I’ll be talking about how you make it work for you by saving and investing your money.

Now before I get any further, let’s be clear that this subject for most people falls into the category of I wish I knew about this sooner! So I’m hoping you’re getting this sooner than later. If not, than let’s remind ourselves that late is better than never.

Let’s look at some examples of what will happen if you start early verses starting late. For these examples we’ll assume the interest we earn will be 10%. Admittedly this is ambitious in today’s economy, however this has been the traditional long-term return on investments in the stock market, particularly when observing the S&P 500 index.

An 18-year-old named Mike who begins saving only $100 a month ($1,200 per year) and invests it with a 10% return until the age of 65 will have $1,151,006.81! He will be a millionaire.

Now assume the same scenario of $100 per month invested at 10% until the age of 65 except Mike doesn’t begin saving until he’s 28. He will than have only $435,652.12. In order to catch up to where he could have been, if he waits until 28 to start saving he would have to now save $250 a month at the same interest rate.

If Mike waits until 38, at 65 he will have $159,851.92. Or he could catch up by saving about $700 per month.

One more example and then we’ll move on.

If Mike as an 18-year-old begins saving $200 a month ($2,400 per year) at 10% interest until the age of 65 he will have $2,302,013.61!

Depending on your age, the numbers will change. Also, your interest rate will change based on a number of factors. So to figure out where you could be, play around with a compound interest calculator. Run some different scenarios for yourself. What will happen if you start sooner than later? If you invest more per year than less?

It is exciting to see that even with modest savings ($100 a month from the time we start our first job), we see the potential to become a millionaire! If you’re starting  later, it is still possible with a little more discipline. But in any event, the key is to leverage your time and your money through the power of compound interest.

In short:

• Save early as possible
• Save as much as possible

Until the recent  turmoil that Toyota is facing , they were truly an example of how to do quality right. Unfortunately for them they’ve gone from being written about as one of the world’s greatest companies to being the target of satire. 

Now don’t get me wrong, I am a fan of Toyota. In fact I have driven four separate Toyota vehicles over the years and have been very pleased. Fortunately my current Toyota vehicles aren’t on the recall list. At least not yet. However they have  become a cautionary tale.  No matter how great a company’s reputation, crisis could hit at any moment. 

We, like companies, have reputations as well. Hopefully we have done what is necessary to earn and maintain a great one. But it’s worth noting that no matter how successful we become, we must not let it go to our head. Like great companies, great people mess up too.   

Typically when we make a major mistake, in the heat of the moment we make bad judgement calls in how we handle it. This is the popular belief about Toyota in their current crises. They have been called to task for not doing the right thing soon enough. 

Toyota’s actions throughout this mess — the initial denials, the obfuscating, the gradual acknowledgment of safety issues — suggest that its priority first and foremost has been to cover its crankcase, not safeguard its customers. 

Los Angeles Times 

Contrast that with how the household brand of Tylenol dealt with their own life threatening crisis: 

The gold standard for corporate crisis management remains Johnson & Johnson’s (immediate) response to the Tylenol scare in 1982. Seven people were killed after somebody placed cyanide-laced capsules in packages on store shelves. 

Although the deaths were limited to the Chicago area, J&J recalled all Tylenol nationwide – 31 million bottles – at a cost of about $100 million. The company also launched a public-awareness campaign to protect consumers. 

Los Angeles Times                    

Man, I messed up!

If you wish to respond effectively in the face of mistakes or crisis, it’s important to decide in advance how you will do so. Consider the following. 

Admit you messed up 

The best of people make mistakes. It is actually a sign of confidence and integrity when you admit you messed up. This is especially true and necessary if you are in a leadership role.  

Admit it quickly 

There is nothing worse than a mistake you made being revealed by someone other than yourself. So admit it as soon as you realize it. You don’t look so good when you fess up after a boss hears about it from your co-worker or customer. 

Don’t sweat it 

Some people are afraid to admit a mistake because they fear the repercussions. But I can tell you that painful repercussions are usually only felt by those who did not admit the mistake before being found out. I have seen many examples over the years of amazing forgiveness for MAJOR mess ups when the person acknowledged their error. 

Make it up 

If it is within your power, do what you can to rectify the situation. Pay the cost in money or time. You will not only ease the blow to those affected, but you will possibly grow your credibility and favor with them. 

Now what about when you’re in the role of leader/boss/parent and dealing with a person bringing their mistake to your attention? 

Recognize you mess up too 

Because you do! 

Consider the effects of your response 

If you fly off the handle, if you come down with “steel fists,” what message will you send to those other people you lead? Will they ever be willing to admit their mistakes? Probably not. What will that do for your results? On the other hand, if you show patience and forgiveness, you will earn the respect of your team and encourage an environment of honesty. Great leaders know that you cannot grow people if you instill a fear of making mistakes in them. 

The world is watching Toyota closely as they handle their extreme crisis at hand. While up to now they have been a case study in excellence, today they are proving to be a case study in handling mistakes. Don’t miss the lesson.

Hi,

I’m Dan Adam and I’m excited that you are checking out my blog Early Momentum as a resource for personal development! The mission here is simple. To equip young adults with a head start on success!

Most of what you’ll find here is directed to young adults who are either in school or just starting out in the working world. That said, much of what you’ll find here can be applied by anyone, of any age.

You can learn more about me and my philosophy elsewhere on this blog. But as a preview to coming attractions, I’d like to share with you some of the things you can look forward to here.

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There’s only one corner of the universe you can be certain of improving, and that’s your own self.

Aldous Huxley