Why are public company CEOs not paid for performance? New York Post makes a good case that they get “pay for luck” in a structure that penalizes stockholders.
Whatever your opinion on Donald Trump, everyone can agree that there are huge changes coming to America and the world, starting January 20.
How can a business person or any other citizen adapt and prosper in this volatile time? Since the election November 8, I have come up with a few ideas. None of them involve Tweeting after awards shows.
KEY MOVE #1
BE READY TO LAUNCH NEW BUSINESSES TO PROFIT FROM BIG CHANGES
The US government is the largest organization in our nation. It is about to drastically transform. A multitude of new businesses will spring up to manage the intentional and unintentional results of this disruption. I believe people are going to prosper in new enterprises arising to exploit or even to oppose this radical shift in government.
It’s not simply that we’ve moved from a Democratic to Republican administration. Mr. Trump seems determined to disrupt the way governing has been done for decades, just as he broke all the rules of campaigning. Whether you love or loath the incoming President, it’s obvious that the next four years will not be business as usual. Is Donald Trump the Amazon of politics, a profound game changer? Or is he closer to Bitcoin or Google Glass, a passing sideshow oddity? Either way there are big changes in store starting right away.
Some of the sectors where the new administration and Congress will make drastic changes include health care, national security, energy policy, international relations, tax rules, business regulations, laws over individuals, and conservation. As these changes are instituted, businesses and jobs will be created to manage new challenges and exploit new opportunities. I expect an explosion of innovation as our nation grapples with the new Administration’s game-changing approach to government.
These opportunities will not be for business owners only. If you don’t own your own company, be on the lookout for openings your employer can exploit, and suggest new moves. You could end up leading a new division of your company! And look for part time side business ideas as well.
There will be opportunities for Republicans and Democrats alike. Innovative enterprises aimed at fighting Mr. Trump and Republican control of government are already emerging.
The Trump Disruption will have no borders. There will be opportunities not only for Americans but people the world over. As America is disrupted from within, other nations will have new chances to excel and challenges to overcome. You could write a book about Russia alone.
I advise everyone to look at every upcoming change, and ask the question: “what’s my opportunity to help?” Particularly focus on areas relating to your experience and expertise. There will be many ways to add value, through businesses, government and non-profit civic causes. Opportunities are there whether you favor or oppose the Trump Administration.
KEY MOVE #2
BEWARE OF SCAMS
Government regulations of businesses are going to be loosened. That’s a sure thing with the new power structure. For my own businesses (hospitality, retail beverage marketing and event services), fewer regulations will be a catalyst for growth, innovation and profits. But while a more permissive regulatory environment will present opportunities, it also creates more openings for fraudulent operators. As regulations fall, new scams are sure to crop up. It will be increasingly important to read the fine print and do due diligence on every personal and business deal. Remember, if something sounds too good to be true, it probably is!
KEY MOVE #3
DON’T IMITATE DONALD TRUMP!
The blunt, unfiltered approach that works for Mr. Trump is 99% likely to backfire for the rest of us in our daily lives. Even if you are a Trump fan, it’s important to avoid insulting, arrogant, thoughtless behavior in business and personal interactions. You are not a billionaire TV star.
The satirical magazine The Onion was on point with this spoof:
REPORT: It Is Still Nowhere Near OK to Act Like Donald Trump
ITHACA, NY—In the hours since the Republican nominee’s stunning election to the nation’s highest office, reports have confirmed that, regardless of circumstance, it is not even remotely close to okay to act like Donald Trump. “Just to be perfectly clear, speaking or behaving in a manner similar to President-elect Trump is just as unacceptable now as it has ever been,” the reports stated, adding that in zero percent of cases is it even borderline permissible to conduct oneself either personally or professionally in a fashion akin to Trump, and that has not changed in the past two days. “In fact, acting like Mr. Trump does for even a moment will result in a wide range of negative social—and in some cases, criminal—consequences for you personally.” – THE ONION satirical media site
KEY MOVE #4
FOLLOW THE MONEY (AS ALWAYS) ON ITS NEW PATHS
Eight years of divided government are over. Republicans are in control of all Federal branches and the majority of State Houses. Similar to the first term of President George W Bush in 2000, there will be a huge shift of resources toward Republican-preferred programs and away from those seen to benefit Democratic constituencies.
This shift will create two new sets of opportunities:
First and most obviously, Republican favored programs flush with new funds will offer new jobs and contract opportunities for businesses.
But also, Democratic favored programs losing funding will be searching for creative ways to continue their endeavors. This too is an opening for entrepreneurial minded people to step up with creative solutions.
Just don’t expect the government to shrink in total size and spending. Even Mr. Trump is not that radical. Rhetoric always comes in second to self interest, regardless of who rules! So count on plenty of ways to profit working with the new boss. Same as the old boss.
Our Chicago mayor Rahm Emanuel famously said “Never let a crisis go to waste.” Whether you think Trump will “make America great” or be a “disaster,” unprecedented opportunities are on the way with the “huuuuuge” changes we’ll all be experiencing. Welcome to the uncharted territory of Trump’s America.
We’ve noticed as you merge and grow your customer service goes down the drain.
You replace most of the experienced people we’ve gotten to know with barely trained robotic staff.
You make up rules that don’t exist and aren’t consistent branch to branch.
You use fraud protection as an excuse for bad service and no common sense.
You’d really prefer not to have lobbies or provide any services other than selling us stuff.
The only way for a business owner like myself to efficiently and pleasantly do business with a bank to pick one branch and only go to that one branch. Get to know the people so they can make “exceptions” that shouldn’t have to be exceptions. It’s like having to know the doorman at a nightclub!
When you merge, your original shareholders tend to get short-changed unless they are bank management.
If an independent restaurant grew into a chain the way banks do, they’d go out of business.
Then again, restaurants aren’t bailed out by taxpayers when they make bad decisions!
Tim Ferris author of 4 Hour Workweek has a great blog post about the emotional roller coaster ride taken by Start Up Founders or any Entrepreneur, and how to handle the different stages. I found it enlightening and helpful!
Have an adventurous and profitable week!
Grateful Dead closed out their 50 Year Career in Chicago last night at Soldier Field (a mere 2 blocks from my home). It was the same location as their last show with Jerry Garcia in 1995. I’ve never been a big DeadHead but have appreciated their music, longevity, experimentation and also their business sense. They were one of the first bands to have their own record label and sell their own tickets, and everyone knows they are kings of merchandising and brand building. They changed the concert touring business as well with their traveling band of fans, long improvisational shows, and allowing fans to tape their shows starting decades ago.
Along with Led Zeppelin they were one of the rock bands that did the most to shape the music and concert business.
Over the weekend I tweeted some of my favorite Grateful Dead lyrics that also can be taken as good self improvement advice in business and life.
Fare Thee Well!
What a long, strange trip it’s been.
~~ Equal Pay Day is an important day for the hospitality business, as our industry has provided more management and ownership opportunity to women than most fields. Recent NRA research found more than 45 percent of today’s restaurant managers are women, compared with 38 percent in other industries. Further, the number of restaurants owned by women increased 50 percent between 1997 and 2007.
~~ Equal Pay Day is the day on which the average woman will make what the average man made in the previous year. So in all of 2014 plus every day of 2015 up to today the average woman’s earnings = the average man’s year 2014 earnings. There are many ways to calculate this and it is no where near an unassailable number or date. Yet the issues of why women lag in earning power are important and fair to debate. Here is a well-documented, balanced analysis from Pew Research Group, which shows improvements to be celebrated as the wage gap closes, yet still areas of opportunity for improvement.
~~ My take is that we have to be very careful not to choose “solutions” that will make things worse for women and the workforce as a whole, such as banning salary negotiation.
~~ To read more on the issue of diversity from the National Restaurant Association here.
A restaurant in Singapore is planning to experiment with drones delivering food and drinks within the restaurant. Read about it here at WaPo. Sounds messy to me, so what do you think?