Level 5 Leadership
The key differentiator between good and great companies is Level 5 leadership. This is the premise of Jim Collins' best-selling book Good to Great: Why Some Companies Make the Leap … and Others Don't.
The following criteria are used to identify the sustained excellence of Level 5 leadership: companies needed to exhibit a 15-year cumulative stock return at least three times above the market average. Out of the Fortune 500, only 11 companies qualified.
Level 5 leaders have some surprising characteristics in common. Instead of being high-profile, big-ego leaders, they are self-effacing and reserved. All are humble and clearly see their own limitations in what is an increasingly complex and ever-changing marketplace.
Consequently, their role as leader is less about promoting their own vision and more about surrounding themselves with the best talent available, then grilling that talent with penetrating questions to devise ongoing strategies to accommodate the ever-changing marketplace.
This is described as "first who … then what." Because no single person has all the answers, the emphasis is on first "who" is onboard and then "what" to do is decided. In the book, an analogy is made to a bus. The Level 5 leaders first make sure to get the right people on the bus and the wrong people off the bus. Then, collectively, they decide where to drive the bus.
Level 5 leaders also exhibit an unwavering resolve to do whatever must be done to produce the best long-term results for the company, show a relentless ability to confront brutal facts and never lose faith. And, most importantly, they avoid the pitfall of being good. It turns out the biggest impediment to being great is the complacency that comes with being good.
Thursday, September 9, 2010
For the week of September 6, 2010
INFO THAT HITS US WHERE WE LIVE>>
Market Update
Last Thursday, July Pending Home Sales came in UP 5.2%. This measure of signed contracts on existing homes indicates we should see an increase in Existing Home Sales for August and September. Some analysts feel it shows the start of positive market movement after the end of the tax credit, which pushed signed contracts forward into April. We now have a new batch of buyers looking to take advantage of today's affordable prices and historically low mortgage rates.
Speaking of prices, Standard & Poor's/Case-Shiller National Home Price Index reported home prices UP 1.0% from May to June in 20 major U.S. cities. This was the index's third straight gain, which many experts feel came from the increased demand due to the tax credits. So sellers still need to be flexible, since not as many eager buyers are now in the market. But prices do seem to be stabilizing, so buyers would do well to act on a property they like, rather than hold out for any significant price declines going forward.
National average mortgage rates have recently been at historic lows. But in their latest forecast, Mortgage Bankers Association economists see rates going up slightly in the last three months of the year, rising a bit above that for 2011, then perhaps up another percentage point by the end of 2012. More reason for buyers and refinancers to not drag their feet!
Review of Last Week
POSITIVE WITH NEGATIVES... The U.S. economy keeps delivering mixed signals, but this week investors on Wall Street let a positive vibe drive the proceedings. Stocks went up four days in a row, ending with a big rally Friday driven by an August Employment report that was by no means great, but better than the downbeat readings that were expected. All three major stock indexes ended up for the week with the Dow now up for the year.
There were notable negatives that continue to show the pace of recovery has slowed. The ISM Services Index came in below estimates indicating modest growth in the non-manufacturing sector. Consumer inflation was UP 0.2% in July and UP 1.5% over a year ago. This is still within the Fed's acceptable range, although some economists think inflation should start rising noticeably next year. Personal income was up 0.2% for July, but this was below what the consensus expected. Finally, final Q2 Productivity dropped to a 1.8% annual rate, a bigger dip than previously estimated.
Positive signs included the ISM Manufacturing index, reported up for July instead of down as expected. August Consumer Confidence also beat expectations. But the big news came with Friday's Employment Report. The U.S. economy lost 54,000 nonfarm jobs in August, far less than the 100,000+ job losses expected. The private sector added 67,000 jobs, while upward revisions to the two prior months took the net gain to 133,000 jobs. Average hourly earnings were UP 0.3% for the month and UP 1.9% this year. But unemployment ticked up to 9.6%, due to an increase in the work force. So even though the report played well on Wall Street, it didn't on Main Street.
For the week, the Dow ended UP 2.9%, to 10447.93; the S&P 500 was UP 3.7%, to 1104.51; and the Nasdaq was UP 3.7%, to 2233.75.
Bond prices held up for most of the week, but Friday's jobs report surprise kept things in check. The FNMA 30-year 4.0% bond we watch ended UP 7 basis points for the week, closing at $102.27. Again, Freddie Mac's weekly survey showed national average fixed rates for conforming mortgages at historic low levels.
This Week’s Forecast
TAKING A BREAK...This week truly is a break from the hectic pace of economic reports we've seen lately. The Fed's Beige Book on Wednesday will give us another take on the central bank's view of the economic recovery, as reported from Federal Reserve Districts across the country. Observers look to this survey for signs of where Fed policy decisions may be heading in the future. We will continue to watch Thursday's Initial and Continuing Jobless Claims, as experts are predicting a slow improvement there. Thursday's July Trade Balance is expected to be down slightly from the prior month, perhaps signaling more demand for our goods overseas.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months Economists believe the Fed will keep rates low well into next year unless we get a boost in inflation or the recovery. Virtually no one expects either of those things just yet. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
Market Update
Last Thursday, July Pending Home Sales came in UP 5.2%. This measure of signed contracts on existing homes indicates we should see an increase in Existing Home Sales for August and September. Some analysts feel it shows the start of positive market movement after the end of the tax credit, which pushed signed contracts forward into April. We now have a new batch of buyers looking to take advantage of today's affordable prices and historically low mortgage rates.
Speaking of prices, Standard & Poor's/Case-Shiller National Home Price Index reported home prices UP 1.0% from May to June in 20 major U.S. cities. This was the index's third straight gain, which many experts feel came from the increased demand due to the tax credits. So sellers still need to be flexible, since not as many eager buyers are now in the market. But prices do seem to be stabilizing, so buyers would do well to act on a property they like, rather than hold out for any significant price declines going forward.
National average mortgage rates have recently been at historic lows. But in their latest forecast, Mortgage Bankers Association economists see rates going up slightly in the last three months of the year, rising a bit above that for 2011, then perhaps up another percentage point by the end of 2012. More reason for buyers and refinancers to not drag their feet!
Review of Last Week
POSITIVE WITH NEGATIVES... The U.S. economy keeps delivering mixed signals, but this week investors on Wall Street let a positive vibe drive the proceedings. Stocks went up four days in a row, ending with a big rally Friday driven by an August Employment report that was by no means great, but better than the downbeat readings that were expected. All three major stock indexes ended up for the week with the Dow now up for the year.
There were notable negatives that continue to show the pace of recovery has slowed. The ISM Services Index came in below estimates indicating modest growth in the non-manufacturing sector. Consumer inflation was UP 0.2% in July and UP 1.5% over a year ago. This is still within the Fed's acceptable range, although some economists think inflation should start rising noticeably next year. Personal income was up 0.2% for July, but this was below what the consensus expected. Finally, final Q2 Productivity dropped to a 1.8% annual rate, a bigger dip than previously estimated.
Positive signs included the ISM Manufacturing index, reported up for July instead of down as expected. August Consumer Confidence also beat expectations. But the big news came with Friday's Employment Report. The U.S. economy lost 54,000 nonfarm jobs in August, far less than the 100,000+ job losses expected. The private sector added 67,000 jobs, while upward revisions to the two prior months took the net gain to 133,000 jobs. Average hourly earnings were UP 0.3% for the month and UP 1.9% this year. But unemployment ticked up to 9.6%, due to an increase in the work force. So even though the report played well on Wall Street, it didn't on Main Street.
For the week, the Dow ended UP 2.9%, to 10447.93; the S&P 500 was UP 3.7%, to 1104.51; and the Nasdaq was UP 3.7%, to 2233.75.
Bond prices held up for most of the week, but Friday's jobs report surprise kept things in check. The FNMA 30-year 4.0% bond we watch ended UP 7 basis points for the week, closing at $102.27. Again, Freddie Mac's weekly survey showed national average fixed rates for conforming mortgages at historic low levels.
This Week’s Forecast
TAKING A BREAK...This week truly is a break from the hectic pace of economic reports we've seen lately. The Fed's Beige Book on Wednesday will give us another take on the central bank's view of the economic recovery, as reported from Federal Reserve Districts across the country. Observers look to this survey for signs of where Fed policy decisions may be heading in the future. We will continue to watch Thursday's Initial and Continuing Jobless Claims, as experts are predicting a slow improvement there. Thursday's July Trade Balance is expected to be down slightly from the prior month, perhaps signaling more demand for our goods overseas.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months Economists believe the Fed will keep rates low well into next year unless we get a boost in inflation or the recovery. Virtually no one expects either of those things just yet. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
All "Betts" on Brian! The Only Realtor you want!
Last Week in the News
Last Week in the News
The Standard & Poor's/Case-Shiller 20-city housing price index — on a seasonally adjusted basis — rose 0.3% in June after a 0.5% increase in May. Home prices are 6% above the April 2009 bottom, but 28% below their peak in July 2006.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending August 27 increased 2.7%. Refinancing applications rose 2.8%. Purchase volume rose 1.8%. Refinancing made up 82.9% of total applications, the highest level since January 2009.
The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 56.3 in August after reaching 55.5 in July. Economists had anticipated a reading of 53.2. A reading above 50 signals expansion. It was the 13th straight month of expansion.
Total construction spending fell 1% to $805.2 billion in July, following a downwardly revised $813.1 billion in June. Economists had anticipated a drop of 0.6% in July.
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 5.2% in July after a revised 2.8% decrease in June.
The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 51.5 in August from 54.3 in July. A reading above 50 signals expansion.
Initial claims for unemployment benefits fell by 6,000 to 472,000 for the week ending August 28. Continuing claims for the week ending August 21 fell by 23,000 to 4.4 million. The unemployment rate rose to 9.6% in August from 9.5% in July.
Upcoming on the economic calendar are reports on consumer credit on September 8, international trade on September 9 and wholesale trade on September 10.
All "Betts" on Brian! The Only Realtor you want!
The Standard & Poor's/Case-Shiller 20-city housing price index — on a seasonally adjusted basis — rose 0.3% in June after a 0.5% increase in May. Home prices are 6% above the April 2009 bottom, but 28% below their peak in July 2006.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending August 27 increased 2.7%. Refinancing applications rose 2.8%. Purchase volume rose 1.8%. Refinancing made up 82.9% of total applications, the highest level since January 2009.
The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 56.3 in August after reaching 55.5 in July. Economists had anticipated a reading of 53.2. A reading above 50 signals expansion. It was the 13th straight month of expansion.
Total construction spending fell 1% to $805.2 billion in July, following a downwardly revised $813.1 billion in June. Economists had anticipated a drop of 0.6% in July.
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 5.2% in July after a revised 2.8% decrease in June.
The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 51.5 in August from 54.3 in July. A reading above 50 signals expansion.
Initial claims for unemployment benefits fell by 6,000 to 472,000 for the week ending August 28. Continuing claims for the week ending August 21 fell by 23,000 to 4.4 million. The unemployment rate rose to 9.6% in August from 9.5% in July.
Upcoming on the economic calendar are reports on consumer credit on September 8, international trade on September 9 and wholesale trade on September 10.
All "Betts" on Brian! The Only Realtor you want!
Daily Quotes!
Daily Quotes Sept. 9 2010!
"We may encounter many defeats, but we must not be defeated."
-- Maya Angelou, poet
"You do not succeed because you do not know what you want or you don't
want it intensely enough."
-- Frank Crane, Minister
"Self-esteem is like a difficult-to-cultivate flower. It requires
frequent nurturing that occurs when you keep your word and follow
through on your promises."
-- Derrick Bell
"There's no such thing as not enough time if you're doing what you want
to do."
-- Robert Half
"All life is a chance. So take it! The person who goes furthest is the
one who is willing to do and dare."
-- Dale Carnegie, motivational expert
All "Betts" on Brian! The Only Realtor you want!
"We may encounter many defeats, but we must not be defeated."
-- Maya Angelou, poet
"You do not succeed because you do not know what you want or you don't
want it intensely enough."
-- Frank Crane, Minister
"Self-esteem is like a difficult-to-cultivate flower. It requires
frequent nurturing that occurs when you keep your word and follow
through on your promises."
-- Derrick Bell
"There's no such thing as not enough time if you're doing what you want
to do."
-- Robert Half
"All life is a chance. So take it! The person who goes furthest is the
one who is willing to do and dare."
-- Dale Carnegie, motivational expert
All "Betts" on Brian! The Only Realtor you want!
Wednesday, September 8, 2010
Daily Quotes!
Daily Quotes Sept. 8 2010!
"There is no such thing as a minor lapse of integrity."
-- Tom Peters, Author
"The chains of habit are too weak to be felt until they are too strong
to be broken."
-- Samuel Johnson, Lexicographer
"Character is the ability to carry out a good resolution long after the
excitement of the moment has passed."
-- Cavett Robert
"Deliberation is the work of many men. Action, of one alone."
-- Charles de Gaulle, statesman
"If you want to get the best out of a person you must look for the best
that is in him."
-- Bernard Haldane
All "Betts" on Brian! The Only Realtor you want!
"There is no such thing as a minor lapse of integrity."
-- Tom Peters, Author
"The chains of habit are too weak to be felt until they are too strong
to be broken."
-- Samuel Johnson, Lexicographer
"Character is the ability to carry out a good resolution long after the
excitement of the moment has passed."
-- Cavett Robert
"Deliberation is the work of many men. Action, of one alone."
-- Charles de Gaulle, statesman
"If you want to get the best out of a person you must look for the best
that is in him."
-- Bernard Haldane
All "Betts" on Brian! The Only Realtor you want!
Tuesday, September 7, 2010
Daily Quotes!
Daily Quotes Sept. 7 2010!
"I love the man who can smile in trouble, gather strength from distress
and grow brave by reflection."
-- Thomas Paine, Statesman
"A strong imagination begetteth opportunity."
-- Michel de Montaigne, writer
"It's not what you do once in a while; it's what you do day in and day
out that makes the difference."
-- Jenny Craig, diet guru
"It is dangerous to go into eternity with possibilities that oneself has
prevented from becoming realities. A possibility is a hint from God. One
must follow it. "
-- Soren Kierkegaard, Philosopher
"No great performance ever came from holding back."
-- Don Greene, performance coach
All "Betts" on Brian! The Only Realtor you want!
"I love the man who can smile in trouble, gather strength from distress
and grow brave by reflection."
-- Thomas Paine, Statesman
"A strong imagination begetteth opportunity."
-- Michel de Montaigne, writer
"It's not what you do once in a while; it's what you do day in and day
out that makes the difference."
-- Jenny Craig, diet guru
"It is dangerous to go into eternity with possibilities that oneself has
prevented from becoming realities. A possibility is a hint from God. One
must follow it. "
-- Soren Kierkegaard, Philosopher
"No great performance ever came from holding back."
-- Don Greene, performance coach
All "Betts" on Brian! The Only Realtor you want!
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