Drucker and Peters agree on CEO compensation

Forgot to post on an article that I saw this past weekend (Investor’s Business Daily… sorry no direct link available).¬†¬† It had a brief note that

…Peter Drucker once warned that CEOs who receive 25 times more compensation that the average employee’s salary undercut the teamwork demanded by successful enterprises.

…¬†Tom Peters…, recently urged boards to clamp down on bloated CEO pay.

I’m more of a “Druckerite” than a “Peterist”, but it is interesting that both agree.¬† Ideologically I have difficulty with imposed caps.¬† However, given the bubble has just burst, it is hard to believe that the ROI claimed by highly-paid executives was anything more than bubble-driven.

Tom Peters: 80% good, 20% overboard

Tom Peters has a list on how to lead during what he calls “weird” times (post here, also read the comments here).¬† As always, he’s thought-provoking.¬† My biggest concern is that folks¬†like to cherry-pick from Tom without understanding that the points in his “lists” often build on or reinforce¬†each other.¬†

With that caveat,¬†here is Tom’s list.¬† My comments are below in bold.

  1. Be conscious in the Zen sense. Think about what you are doing more than usual. Think about how you project.  (Crossderry: The last is critical at these times.)
  2. Meet daily, first thing, with your leadership team‚ÄĒto discuss whatever, check assumptions. Perhaps meet again late afternoon. Meetings max 30 minutes. (Crossderry: All good, harder for me to implement in a global team.)
  3. If you are a “big boss,” use a private sounding board‚ÄĒcheck in daily. (Crossderry: Interesting… hadn’t thought of that.)
  4. Concoct scenarios by the bushel, test ’em, play with ’em, short-term, long-term, sane, insane. (Crossderry: Too many leaders think that this means “just throw s*** against the wall” by rearranging everything or withdrawing to a bunker to do scenario planning.¬† Prime example of a topic that gets cherry-picked from a list. If you aren’t doing this w/ managing by walking around [MBWA] and working the phones, experts, customers, vendors, etc., you’re missing the point.)
  5. MBWA. Wander. Sample attitudes. Visible but not frenzied.  (Crossderry: The last is critical at these times.)
  6. Work the phones, chat up experts, customers, vendors. Seek enormous diversity of opinion.  (Crossderry: Oh yeah, no time to head for the bunker!) 
  7. “Over”communicate!!!!!!!!!!!!!!!¬† (Crossderry: Yup.)
  8. Exercise‚ÄĒencourage your leadership team to double up on their exercise.¬† (Crossderry: This verges on “double plus good” Motivation-speak.¬† How about “If you don’t exercise, start; if you’re not exercising enough, do more; if you’re already exercising enough, don’t stop.”)
  9. Underscore “excellence in every transaction.”¬†¬†¬† (Crossderry: You betcha… and it’s a nice loop back to point 1.)

Hat tip: Bas de Baar

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