Funny, But True Stories: Keep Your Girlfriend Out of the Picture

Cheating on a spouse has been the downfall of many a business owner or CEO. Some of these stories aren’t too surprising. Consider the case of the founder of the famously hacked website Ashley Madison, created specifically to make it easy for people to cheat on their spouses. At one time the cheaters’ website claimed earnings of $115 million and a membership of 39 million around the world.

So can anyone feel surprised when it was revealed that founder Noel Biderman had cheated on his own wife, despite his claims to have a strong marriage? He called himself the King of Infidelity and in June 2014 when asked if he had ever cheated on his wife, he said, “Not yet.”

He got outed by the hackers, as did thousands of others whose extra-curricular activities were uncovered. Many divorces and some suicides have been linked to the hack.

Obviously it’s not good for anyone to cheat. Not on their taxes, not on their spouses. But it’s even more critical when you’re a CEO or business owner. You stand to lose a lot more than your marriage.

Yet, it happens. All the time. Take the case of the married president of a pipe manufacturer I worked with. In addition to running his business, he wanted to craft a racer with an innovative design.

He was successful and was asked to be on the cover of a prestigious industry magazine. Sounds great, right? Except when the photographers came to shoot the cover, his girlfriend was there, in her revealing bikini. Did he ask her to make herself scarce for a bit? He did not. And who shows up in the background on the cover with him? Yep, the girlfriend in the bikini.

It didn’t take long for his wife to figure out what’s up. And oh yeah, her husband had started the business with her father’s money. She filed for divorce and he lost control of the company. I’m not sure what he did with that magazine cover, or whether he got to keep that racer or not.

Want People to Work for You? Make Them Feel Heard

They have 14,000 employees. And more clamoring to come on board.

Under Armour was recently included on LinkedIn’s U.S. list of Top Attractors, the top 40 companies at attracting and keeping the best employees. In an article referencing the inclusion, “To Thrive at Under Armour, You Have to Answer Kevin Plank’s Three Questions,” I found out one of the reasons why more people want to join the ranks at the sports clothing and accessories company with close to $4 billion in revenue.

The three questions management is encouraged to ask after every meeting or conversation are:

  • This is what I heard
  • This is what I think
  • This is what we are going to do

The goal of the questions, Kevin said, is to make sure you heard and understood what people said. With this method you don’t waste time on miscommunication, you facilitate buy-in and people feel their ideas have been heard, a huge factor in employee morale and retention.

My favorite method for clear communication is the whiteboard. I’m a huge fan of the whiteboard, even writing a whole chapter on its use in my book, “How Not to Hire a Guy Like Me: Lessons Learned from CEOs’ Mistakes.”

For more reasons I love the whiteboard, please read my post “The Value of the Low-Tech Whiteboard in a High-Tech World.” Good luck with your new and improved communication.

 

3 Reasons You Want More Women on Your Board

It’s a man’s world. At least in the board rooms of Fortune 500 companies, where women continue a pattern of holding less than 17 percent of corporate board seats. Compare that to other countries, some of which are so concerned about the lack of females on boards that they have set quotas. These countries have set quotas of 40 percent and have come a long way toward meeting them.

The top five countries in terms of percentage of female representation are:

Norway: 35.5

Finland: 29.9

France: 29.7

Sweden: 28.8

Belgium: 23.4

Germany hasn’t fared much better than the U.S., with just 18.5 percent of female board members. However, it recently introduced a quota of 30 percent by 2016.

While mandating quotas for U.S. companies may not be the answer, it’s time for companies to take a good look at their numbers and what having more women on the board could mean for them.

Here are three reasons you should consider adding more women to your board.

  1. Having women on your board is good for your bottom line

A study done by Catalyst, a non-profit organization for women in business, found that Fortune 500 companies in the top quarter of number of female board members outperformed those in the lowest quarter with a 16 percent higher return on sales and 26 percent increase on invested capital.

These numbers increased to 84 percent higher return on sales and 60 percent increase on invested capital for companies with sustained high representation of women on their boards.

A study on decision-making was conducted by Chris Bart, professor of strategic management at the DeGroote School of Business at McMaster University, and Gregory McQueen, a McMaster graduate and senior executive associate dean at A.T. Still University’s School of Osteopathic Medicine in Arizona, and published in the International Journal of Business Governance and Ethics.

For their study they surveyed 600 board directors on how they made decisions. The results showed that while men prefer to make decisions following rules and tradition, women are more likely to consider the rights of others and to take a collaborative approach to decision-making, which translated into better performance for their companies.

  1. Having women on board can decrease your company’s chances of going bankrupt

A study done by Leeds University Business School found that having just one woman on your board could cut your risk of bankruptcy by 20 percent. Having two or three members lowered your chances even more.

The study involved 17,000 companies in the UK that went insolvent in 2008. The results were published in an article in The Times with the title “Higher Heels, Lower Risk: Why Women on the Board Help a Company Through Recession.” Unfortunately, this one didn’t seem to be available online as I was intrigued to read more.

  1. Having women on your board can result in less fraud, corruption and scandal

This from a recent article on thinkprogress.org, “Appointing Women to Company Boards Helps Avoid Scandals, Fraud and Corruption.”

MSCI, Inc., a provider of investment decision support tools, looked at the presence of women on the boards of thousands of companies and their corresponding propensity for scandals and tensions with shareholders. The results showed “a clear pattern between having higher than mandated percentages of women on boards and fewer governance-related controversies.”

The research is clear. Having a diverse board can benefit your company in many ways.

Yet, U.S. companies have been slow to respond. In fact, the article points out that male board members named John, Robert, James or William outnumber all women on boards.

Want to improve the performance of your company? Get a woman on board.

5 Tips for Siblings Working Together in the Family Business

This is the second in a two-part series on siblings in family businesses. Part one covered some successful sibling partnerships, while part two give tips for success for siblings who are in business together.

Even though you may have fought over whose turn it was to use the bathroom and who sat where in the car as children, that doesn’t mean you can’t own and run a successful business with your sibling.

There are unique challenges to it, of course. You may not have chosen your sister as a business partner. You can’t easily quit and go to another business when you’re frustrated. And it can be uncomfortable to attend Sunday supper with the family if you’ve just had a disagreement over an issue at work.

Here are some tips for you and your sibling to work together successfully.

  1. Have separate roles based on skill, not family hierarchy

Just because he started with the company first doesn’t mean that sibling should become the CEO. He may not be best suited for the job and would rather use his background, education and natural skill with numbers to serve as CFO. Perhaps another sister or brother is best suited to the role, and just needs a bit more training to take over the lead position, while a different sibling might have the perfects skills and personality to run the sales department.

  1. Understand, trust and respect each other’s contributions

I imagine Walt Disney got frustrated with Roy sometimes when he didn’t immediately jump on his latest vision for their company, being concerned with how they would finance it. And Roy was equally frustrated by Walt’s tendency to continually start new facets of the company without considering available resources.

But they were smart enough to realize they each played a crucial role in the company and that it took both of them to make it successful. They needed, respected and trusted each other.

  1. Communicate frequently and put it into writing

Any business needs open channels of communication on all levels. With family businesses, making sure decisions are communicated in writing is critical, as there tends to be more verbal communication among family members.

If you’re at a family picnic and make a decision about something crucial to the business, follow it up with an email to ensure you both understood the decision you made.

Hold regular, formal meetings with your siblings to discuss the business. Make sure every partner feels heard during the discussions and that notes are taken during the meeting and distributed afterwards.

  1. Establish, tweak your mission and goals together

Maybe you and your sibling started the company with one mission, but as you took your goods or products into the marketplace, you saw that a correction to that mission is necessary and your goals may shift. Or you’ve decided you should shut down one subsidiary in favor of focusing on another.

Discuss any changes or direction with your sibling partner. Don’t assume he or she has come to the same conclusion.

  1. Establish boundaries between work and family

If you and your siblings enjoy socializing outside of the office, that’s great. But if you’re forced to more than you’d like, maybe from pressure from dear old mom and dad, seek to minimize that time together, or just request it be a no-work-talk social event.

It won’t always be easy to be a partner with your sibling. When times are tough, remind yourself that you do love each other and you will always be family. Ultimately, you share the same goals of maintaining family harmony and growing a successful business.