by D. Kevin Berchelmann | Jan 17, 2017 | Brazen Leader, Executive Improvement
I was just doing some thinking on a plane ride recently (not much else to do). Often, we are our own worst enemy, sabotaging our efforts with our own behavior. Though added resources (people, money, etc.) seem to be an answer to many of our challenges, the reality is that Leadership, first and foremost, is what will cause us to succeed or fail.
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by D. Kevin Berchelmann | Jan 13, 2017 | Brazen Leader, Miscellaneous Business Topics
I was asked this question on Quora:
I have never been in leadership but I want to be a leader. How can I achieve this target?
Though straight-forward, your question has some depth of thinking…

Two things to start:
- Be a leader where you are. Demonstrate leadership, empathy, support, advocacy for others, etc. wherever you are. Leadership, in its true form, doesn’t need a business card.
- Make sure your boss, and others in the food chain, are aware you would like to advance and at some time move into leadership. It’s important for them to know—the floors are littered with employees who were expecting someone to just “recognize their potential” and promote them extemporaneously. It happens, but don’t live your life expecting it. Take action and let someone know.
Now, to be promoted, I tell people to be mindful of the Three P’s for promotion… for you to be promoted:
- Performance. Yours must be top-notch. Maybe not the best, but certainly well above satisfactory. You’ve got to demonstrate discretionary effort, above just doing your job.
- Potential. You’ll need to demonstrate that you can do more. By doing more, by asking to do more, by accepting almost anything that comes your way, by requesting and embracing any learning opportunity, etc.
- Position. You can knock #1 and #2 out of the park, but there still must be a position to promote to, or you cannot move. This is where your patience will be tested, and you simply must rise to the challenge. If someone is promoted “over” you, your performance, attitude, etc. cannot falter. Even if you were unjustly skipped. Keep the performance top-notch, and your behaviors positive.
Be Brazen.
by D. Kevin Berchelmann | Nov 28, 2016 | Brazen Leader, Human Resources, Kevin Berchelmann, Miscellaneous Business Topics, Organizational Effectiveness
So, with CPIs hovering around 3-3.5%, and most surveys showing 3.5-4.0% increases in salary budgets for 2007, life’s a breeze, right? Just add the percentages into the Excel formula, press “Enter,” and you’re done, right?
Actually, wrong.
Enter “wage inflation.”
I’m going to avoid the ecomomist argument that higher wages do or do not cause inflation. That’s just not our relative concern here. What is clearly our concern is that our currently strong economic growth lowers general unemployment rate. This, theoretically, can cause businesses to bid up the price of labor and (hopefully) pass through those higher costs in the form of higher prices.
If only it were so easy. As the CPI shows general inflationary trends (e.g., our product/service cost increases), wage inflation is an additional cost on top of inflationary pricing. In other words, it’s a potential incremental cost.
Now, again theoretically, profit-conscious firms aren’t going to hire employees at a rate of pay more than his utilitarian or marginal value, or more than the additional revenue earned. Hardly rocket science, right?
The reality, however, shows that sometimes wages do increase faster than general inflation, particularly for individual functions, positions and/or jobs, rather than an overall employment market.
Enter compensation planning. It’s easy to get in a cyclical rut: analyze the jobs, survey the market, establish a range. Then adjust for infation a couple of years and start all over again. That’s simply not enough. We must pay close, specific attention to the inflationary movement of key positions within our organziations and adjust accordingly — or at least be acutely aware of the disparity. No reason for a surprise here.
Sometimes compensation planning takes foresight, analysis, and a real awareness of what’s going on in the world.
Don’t get caught napping…
by D. Kevin Berchelmann | Nov 8, 2016 | Brazen Leader, Miscellaneous Business Topics
Not too long ago, I worked with a group of division presidents for a fast-growing company. Two things struck me as interesting, and somewhat of a paradox: First, they were all reasonably successful in their jobs (and their jobs were substantially the same, just different geographic regions). Second, they were all incredibly different. Yes, they each had similar behavior characteristics, such as intelligence and work ethic. In other areas, such as sales, marketing, people management, organizational skills, strategy, planning, and do forth, they were all over the charts.
So what? Well, I’ll tell you “so what.” You hear a lot of garbage about understanding your “strengths and weaknesses,” and then you’re supposed to work on your weaknesses. Let’s look at it differently. How about we assume that succeeding in a position can be done in any of several different ways, using a variety of skills. Using that reasoning, you don’t have strengths and weaknesses, you have learned skills and skills you have yet to learn.
Wow!
So, then, we should then simply “learn more skills,” right?? No, no, no… We should, instead, clearly identify our skills, since we know that we can succeed with them, and work on improving our strengths! That’s right, improve our strengths, since we already know that they work for us. Learning new skills is time consuming, and depending on application, may or may not work for us the way they work for others.
Now, this logic assumes current success, so don’t confuse this with those managers who are clearly unsuccessful, though I would argue this could help them with their improvement also.

In other words, as Bum Phillips (retired Houston Oilers coach) would say, “Dance with who brung you.” Use the skills you have — improve and hone them to a razor’s edge — and continue your increasing levels of success. Over time, identify some additional skills you would like to pick up, and develop a plan to learn them in a reasonable time and fashion.
But don’t break what works.
Be Brazen…
by D. Kevin Berchelmann | Nov 2, 2016 | Brazen Leader, Miscellaneous Business Topics
Leadership is Timeless
I’m a military veteran.
As such, I frequently read old military books, discourses, and papers to compare corporate leadership today with historical military leadership. The similarities are astounding.
A 1941 book published by the Military Service Publishing Company is one such work. Edited by the staff, it has no specific author, but is a compilation of thoughts, ideas, suggestions and directives from a stream of notable military leaders. Some — just as an example — include the likes of General J.G. Harbord, who began as a private in the Spanish-American war, achieved prominence as General Pershing’s Chief of Staff, and later commanding the USMC’s 2nd Division before assuming the Chairmanship of the RCA Corporation.
Just an example of the caliber of input for this book…
In this book, Chapter II discusses “Orientation.” Of course, it is meant to apply mostly to new officers at a new post or assignment. Truth is, the advice given there — some 65+ years ago to junior officers — is as appropriate today for first time managers as it is senior-most leadership.
Sections and brief summaries include:
Your Brother Officers:
The commissioned officers of the U.S. military are a cross-section of the American Public… as a group, they are subject to the same ambitions, variations in viewpoint, and human frailties as the people they serve.
This, of course, matches up with our corporate situations today. Managers and leaders have different backgrounds and experiences, bringing different thought-processes and judgment. When harnessed for the common good, this is an excellent trait, one we should exploit, not suppress. Different thinking means more choices. More choices usually means better decisions. Or, as many would put it — embrace your weirdness.
Performance of Duty:
In the military, the performance of duty to the limit of one’s capacity is a fetish. Striving for perfection is more than a figure of speech… as you demonstrate your capacity for additional responsibility, it will come to you; be not impatient… there is much to learn.
Wow, is this apropos or what…? Work hard, smart, and consistent. Do what you say you’ll do. Make well-thought decisions. Those of you who have achieved significant corporate rank: Did you get there through politics, trickery, and slight-of-hand, or was it hard work, diligence, and sacrifice??
This stuff really works.
Get Out, or Get in Line:
Mind your business. If the concern where you are employed is all wrong, and the Old Man a curmudgeon (I like that word), it may be well for you to go tell the Old Man, confidentially, privately, and quietly, that he is a curmudgeon. Explain to him that his policy is absurd and preposterous. Then show him how to reform his ways, and offer to lead the effort to cleanse the faults. Do this, or if for any reason you should prefer not, then take your choice of these: Get Out, Or Get in Line.
If you work for a man, in heaven’s name, work for him! Speak well of him, think well of him, stand by him and the institution he represents. If put to the pinch, an ounce of loyalty is worth more than a pound of cleverness. If you must vilify, condemn, and eternally disparage, why, resign your position and, when on the outside, damn to your heart’s content.
This quotation is so appropriate in corporate management today that it needs no explanation, segue, or pithy remarks from me. Simply put — work for whomever you work for. Grammatical errors aside, you get my point. Don’t we all get tired of those who work “for” us part of the time, and “against” us the rest?
Importance of the Word ‘NO’:
As an officer, many questions will come to you for decisions… the choice you make in the mere act of saying “yes,” or “no,” may constitute the measure of your success.
A weak man can say “yes” to troublesome situations, dissipating the efforts of the whole. An unwise man can say “no,” and by mere obstruction, cause the failure of the unit. It takes a happy combination of courage and wisdom to be able to say “no” at the right time and place.
Simply put, our most significant, regular responsibility — day to day and strategic — is making decisions. Anyone can make the easy ones… they seldom take forethought, intellect, or wisdom, since they are usually painfully obvious and accolades are near. No, they pay us for the hard ones. The lonely decisions. The times when we make the “right” decision in the face of dissent and conflict, and where the easier decision is to abide with consensus. That’s why they pay us the bucks, and give us these fancy business cards.
Adaptability:
Adaptability is required. Leadership is a new and different life. He must be equally quick to detect and avoid those things which are abhorrent to military life… the road to recognition and fame may lie ahead. How well and how quickly the opportunities are embraced depends upon the promptness of adapting himself to the new horizons the career provides.
You can’t always spell out the details of a leadership role in a nice, convenient job description. Our worlds are dynamic, fluctuating, and ever-changing. We’ve got to know when to “stay the course,” and when to turn on a dime. All the while keeping those looking to us for leadership engaged in our path. This is what sets us apart.
I only provided these today for two reasons. First, a reminder: Leadership — it’s theories, concepts, and approaches, really haven’t changed since the beginning of man. Yes, some applications of principles have evolved over time, given our changing workforce, demographics, and societal norms. The real concepts and basis of leadership, however, remain constant.
And lastly, we can learn a lot from simplicity. Sometimes we make this stuff too hard, when we could get to the same place — maybe even a better place — with approaches that embrace simplicity and ease of thought.
Be Brazen.
by D. Kevin Berchelmann | Sep 14, 2016 | Brazen Leader, Executive Improvement, Human Resources, Organizational Effectiveness
I hate to call anyone a crook. It sounds unseemly and judgmental, and just a tad juvenile…
Ah, to hell with that. Wells Fargo, you guys are a bunch of crooks. Specifically, the leadership involved in the fraudulent account processing debacle.
Yes, the leadership, not the schmucks that
leadership whacked in the process.
The numbers, for you analytical types:
- 565,443 — The number of unauthorized credit card applications filed by Wells Fargo’s community banking division
- 1,534,280 — The number of unauthorized deposit accounts opened by Wells Fargo’s community banking division
- 5,300+ — The number of schmucks (mentioned above) fired for actually opening these fraudulent accounts
- $185,000,000 — The amount of the fine levied on Wells Fargo for this fraudulent activity
- $200,000,000 — The amount of stock held by John Stumpf (just “Stumpy” from here on)
- $19,000,000 — The amount of money Stumpy hauled in last year.
- $125,000,000 — The amount to be paid to Carrie Tolstedt, the executive in charge of these fraudulent activities
- $20,000,000,000 — The approximate dollars in annual profit made by Wells Fargo
- 0 — The number of senior leaders held accountable for this travesty
Here’s the deal… there’s simply no way that 5,300 people–all doing the same job for the same division–can be fired for fraudulent (potentially criminal) acts, and no one in real leadership was aware of the problem. Just no way. Think about it–that many people whacked, same division, same job, all for fraudulent activities in a bank. And no one noticed? That’s your story? Seriously?
I call bullshit.
If you hold a gun to someone’s head and say, slap Bill over there or I’ll pull the trigger, well, Bill’s about to get slapped. It doesn’t matter that you aren’t the violent type, that you’ve never hit anyone in your life, or that Bill is a helluva good guy. None of that matters. What matters is you have a gun to your head. The schmucks fired at Wells Fargo, all likely justified for doing something way wrong, had guns to their heads.
Over aggressive daily sales quotas; hourly (yes, you read that right)–hourly–conference calls to make sure your quotas are on track; after-school detention overtime and forced marches on Saturdays for anyone coming up short. And if you came up short after two months, you got whacked. I’d say that feels like a gun to the head. Held there by senior leadership at Wells Fargo.
The push was relentless, and making these arguably unreasonable quotas was not simply an issue of performance–some personal bankers had as much as 20% of their total compensation tied up in sales commissions from these extra accounts. In other words, another gun. I’m not excusing criminal or unethical behavior by those doing it; the firings were likely justified, and behavior like that is deplorable no matter the incentive. But to just punish over 5,000 workers while senior leadership is not just held unaccountable, but rewarded with mucho dinero?
In a 2013 interview, Wells Fargo CFO Timothy Sloan said “I’m not aware of any overbearing sales culture.” Where’s that bullshit flag again…? I’m throwing it. Of course, Timmy had good reason for–and was rewarded for–his ignorance; he’s been promoted twice since that interview, and is now heir apparent to Stumpy himself. Things that make you go hmmm. I’m certain it’s just a coincidence…
Stumpy doubled-down on his perception of executive innocence in a Sep 13 WSJ article, stating “There was no incentive to do bad things,” and that “…some employees didn’t honor the bank’s culture.” And what, exactly, might that culture be, bigshot? My favorite Stumpy quote: “I feel accountable.” Not “I am accountable.” Tweeeeet! Throwing my flag again…
Leadership matters. Ethics, integrity, even simple honesty, are all driven from the top. That which you condone, allow or permit, through action, inaction or positive consequence, is what you get. Culture really is that simple. Honest leaders get honest employees (for the most part). Ethical senior leadership promotes ethics and integrity throughout. Conversely, fast-and-loose behavior at the top creates a culture of shady corner-cutting throughout the organization. Plausible deniability is a good movie line, but it sucks when used by senior leaders to allow bad behaviors to boost profits.
This is Stumpy.
Stumpy likes money
Stumpy doesn’t question where it comes from
Stumpy’s people get him money
Stumpy makes lots of money
Don’t be like Stumpy
Be Brazen…