Wednesday, January 07, 2009

Good Things I Learned from Bad Bosses

I have had my share of bad bosses over the years (and my share of really good ones too), but I have found that even though bad bosses can make your life miserable and take all the fun out of work, even they can teach you some useful skills and good lessons. So with that in mind, here are a few of the lessons I have learned.

Caring for Individuals - My most recent boss prior to my current company was the worst that I have ever had. She was disrespectful of her team and of others in the organization, dismissive of ideas and opinions (except her own), rude, incredibly political and worst of all had zero respect for other people's time. She would schedule meetings and simply fail to show without cancelling, or even worse, show up for the meeting and then constantly take calls and answer e-mails while others waited. However, even such a horrible boss had many good things to teach me. In a crisis she was always supportive of her team, and at the personal level she truly cared about her staff. If you had a personal problem, she would go to extraordinary lengths to help you find a solution. She was also extremely competent and insightful in dealing with customers, and I learned a great deal from her about running projects and about getting things done. Incidentally, a few weeks ago I learned that she was recently demoted in all but title and this is what gave me the idea for this post.

Tenacity, Will Power and Projecting the Right Image - The CEO at another start-up I worked for was a completely different kind of bad boss. He was very personable, extremely smart and a Harvard MBA to boot. He was a true visionary. His problem was that he was such a visionary - always seeing seven steps ahead - that he neglected to see what was immediately in front of his face. He made a series of bad hiring decisions, undercut the authority of his management team by tasking their staff directly, and constantly changed the company's strategy. He ran the company into the ground and was eventually ousted. That, however, was long after I resigned my position and moved on. Nevertheless, from this gentleman I learned the importance of business vision. I also learned that sheer will power and an unshakable refusal to fail can bring an organization very far indeed. This boss also taught me that you can do a lot with very limited resources and that how your company projects its image to the outside world makes a huge difference on your ability to land new business. So much so, that this small company was able to land a contract worth tens of millions of dollars with a huge  multinational company.

Delegating and Taking Chances - Another of my bosses was an infuriating individual. He was disorganized, had a ridiculously inflated opinion of himself and worst of all had less than questionable ethics. Lying was not beneath him. However, this CEO was extremely good at hiring top notch people, and once he hired them he trusted them completely and gave them full authority to complete their projects in the best way they could. He listened to his executives. He also had an amazing ability to find his way into the right business niches. He had a sort of sixth sense for landing the right deal, even when others told him he was crazy to pursue such long odds.

My point is that there is something to learn from practically everyone, even from your worst bosses. The business skills and ideas that I have gained from my worst bosses are at least as important and useful as the ones that I learned from my best ones. That's not to say that working for these people was a pleasure. It most certainly wasn't. However, even if you find yourself working for a jerk, an incompetent manager or someone who is otherwise a hopelessly bad manager, don't give up on advancing your career. Look for what makes that manager bad and learn from his or her mistakes. These folks inevitably have some useful skills that they can teach you, after all somehow they were able to become your bosses...

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Monday, January 05, 2009

GMAC Bail-Out: My Personal Share

It's no news by now, the government is bailing out those Detroit dinosaurs known as the auto companies, in spite of my sound advice. Don't those slackers in D.C. read Money and Such? One part of this bail-out is the rescue of GMAC - GM's financing arm - to the tune of $6 billion. I decided that it would be interesting to figure out how much of my own personal money the government is handing over to the shareholders of GM, the private equity firm Cerberus (which owns Chrysler)  and to the United Auto Workers... Bear with me as I run the numbers on the back of this handy envelope (which I also use to accept bribes for appointing U.S. Senators):

There are approximately 330 million people living in the U.S., which means that each of us is paying about $18 to this failing company. There are five people in my household, and since our three kids are not currently paying taxes (living at the expense of the working class), my wife and I would be paying about $90 to stave of the evil creditors of that noble establishment. But wait! Not all U.S. residents pay a similar share of this nifty Christmas bonus to GMAC owners, I happen to be a bigger tax benefactor than most. 

According to Kiplinger's our household income places us in the top 5% of tax payers. Good for us. However, we are not quite lucky enough to be in the top 1% of the pyramid. The same article suggests that the top 1% of tax payers account for 40% of taxes (yikes) and the top 5% accounts for 60% of taxes. This means that excluding the top 1% my income group accounts for 20% of all income taxes paid. Now we are ready for some real action: there are about 100 million households in the U.S. - 4% of us or a total of 4 million account for 20% of the bills paid, which means that our personal share in the GMAC bail-out comes to a tidy sum of about $1,500. Sweet. Will that be cash or credit?

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Sunday, January 04, 2009

Apparently, Things Aren't THAT Bad

My family and I spent this extended weekend skiing at the Heavenly Ski Resort, located in South Lake Tahoe on the border between California and Nevada. If you think that the economic situation would reduce attendance at this peak time of the year, you would be wrong. The resort was crowded during the day and at night the casinos were packed (I am not a gambler, but my brother in-law said the place was full).

Things may be bad economically, but apparently there are many thousands of people who are willing and able to shell out $75 or more a day for a lift ticket and $20 for some bad food.

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Friday, January 02, 2009

We Need a Carbon Tax Now!

If you thought that the spike in oil prices would have a lasting effect on people's energy use habits, think again. No sooner had gas prices retreated from their historic highs, and in the middle of the toughest recession in recent memory, American are back to their ol' tricks: buying gas gulping monster trucks for their daily drive to the office. A couple of days ago CNN reported that SUV and truck sales are going to account for more than half of all vehicle sales in December - reversing a recent trend.   

This will simply not do. At a time when the world seems to finally be getting ready to do something about global warming, it is clear that high gas prices had a profound impact on people's driving and car buying habits. The best way to ensure that such good habits are maintained in what is destined to be a temporary (but possibly not a short) period of oil price collapse, is for government to impose a carbon tax - possibly in the form of gas taxes, with the objective of getting gas prices closer to about $4 per gallon.

Now before you all come screaming at me about the stupidity of raising taxes in a recession, there is no reason why this increase should impact consumers. For example, government could pass the funds raised by this tax back to taxpayers, in the form of an income tax reduction, sales tax reduction or some form of rebate. The trick is that we should not be causing financial hardship for those who can least afford expensive gas, but gas itself must become dearer so that folks will continue to have an incentive to save energy, buy reasonable vehicles and reduce carbon emissions. To read more about why I think a carbon is necessary, see this previous post. 

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Thursday, January 01, 2009

Taking an Expensive Vacation in a Tough Economy

My company has been shut down for the holidays since December 23, and I have been trying to make the most of that time. Last week the family and I went to Disneyland and later this week we will be going up to Tahoe for a couple of days of skiing. All this traveling costs quite a bit of cash, probably in the neighborhood of $2,000 when all is said and done, but the final tally will only be available when we return.

This is a fair amount of change to be spending in this type of economic climate, but I think this is money well spent. First of all, we are a family of 5 so the cost per person is pretty modest when you think about. While visiting Disney we stayed at a reasonably priced Holiday Inn, and the kids got only $25 each for souvenirs. At Tahoe, we are renting a vacation house, with my wife's entire family. Since our vacation is all in California, we are driving everywhere and have no expensive air travel to deal with.

I think that my wife is bit more concerned about spending all this money on a vacation, but I am not terribly concerned. First, now that my company has completed its second round of fund raising, we have enough cash for over a year of operations, and I believe that my position within the company is very stable (unless I somehow cause a major blunder - which I am not currently planning to do...). Second, our emergency cash reserves are fully funded. We have over one year of living expenses in cash and equivalents. So, while I am nervous about the economic situation (who isn't), I don't intend to hide under the covers until the sun comes out. We'll be reasonable, prudent and frugal, but we are not going to stop living. The holidays are a good time to relax and enjoy life, and that's what we intend to do.

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