Index-Investing (Bloomburg) A good defense here against recent critics
First, it costs less — often much less. High fees are a drag on returns; compounded over decades, they lead to a 20 to 30 percent penalty on total returns. Next, the alternative is active-stock or mutual-fund selection or some form of market timing. Academic research overwhelming shows that the vast majority of investors lack the skills or discipline to do that. Attempts at outperformance invariably lead to underperformance. Last, even among those who have the requisite skills, the discipline and emotional control necessary to successfully manage money is intermittent at best, absent at worst.
Some people are impressive and motivational in their achievements and messages, but the practice of true Greatness is a rarity.
The Trouble With Girls: Obstacles to Women’s Success in Medicine and Research (thebmj)
Warren Buffett: The Three Things I Look for in a Person (Farnam Street)
“You’re looking for three things, generally, in a person,” says Buffett. “Intelligence, energy, and integrity. And if they don’t have the last one, don’t even bother with the first two. I tell them, ‘Everyone here has the intelligence and energy—you wouldn’t be here otherwise. But the integrity is up to you. You weren’t born with it, you can’t learn it in school.”
I was lucky enough to be in the room a few years ago for a conversation with a very successful and prominent coach. There were about 12 coaches there to hear him speak.
The coach asked a question, “What do you center your team around.” Not all responded, but most said, “our culture.” All around the room.
His response, “I don’t know what that means.”
He went on,
“For me, I center everything around one simple question, What’s best for the team. Every decision. The players do the same.”
He explained a bit more and answered more questions, but this one response has stayed with me.
Don’t talk about “culture”–talk very specifically about your team. The word culture is like the word technology–overly broad with too many different interpretations.
What is your team culture? Do your players know? Can we see it from the outside?
When you have a very clearly defined culture, a set of values, shared language, a plan, principles that you believe in, and accountability, all your decisions get easier.
This does not mean executing them is always easy, but making the decision to act gets easier.
So, what’s your culture?
Recently I was in Utah to help lead a retreat for a very high-end, high-quality sporting goods store. They sell great stuff that’s way out of my price range, but super valuable for people who spend their lives on the slopes or outdoors and need quality.
The owners were in the room, as were the leaders of each of their divisions and all of their stores. It was a funny, bright engaged group.
The view out the window was stunning. Fortunately I was facing the window, and the group was not, or we would never have held their attention.
Here’s a photo from my morning hike!
Basically the retreat was a positive experience on many levels.
The company asked us to center the retreat around the book The Culture Club by Daniel Coyle, which they were reading in a company wide book club.
The Culture Club seeks to answer the question: why do some groups excel while others fail?
He says culture.
But more importantly he tells us his three keys to setting up this culture.
First Key: Make it Safe. Foster Belonging.
Each member of the team must feel comfortable speaking his or her mind. Strong groups foster a sense of belonging and understand how to develop this through common language and “signals of belonging.”
These signals must be consistent and used often in order to foster this.
You can’t toss it out every now and again and think it will have an effect.
The Second Key: Be willing to Share Vulnerability
Of course these two (safety and vulnerability) are linked, but he makes a very interesting point that we often wait until we are certain that it’s safe–until we trust a situation–before we show who we are:
“Normally we think about trust and vulnerability the way we think about standing on solid ground and leaping into the unknown: first we build trust, then we leap. But science is showing us we’ve got it backward. Vulnerability doesn’t come after trust–it precedes it. Leaping into the unknown, when done alongside others, causes the ground of trust to materialize beneath our feet.”
The Third Key: Have a Sense of Purpose. Tell Your Story Well.
This third point circles me back to that prominent coach I started this post with: What do you center your team around? What are the defining values everybody is aware of? What’s the story you tell internally and externally?
In The Culture Code Coyle gives some great examples of this including touching briefly on the All Blacks, the New Zealand Men’s Rugby Team.
He does not mention the book Legacy , but it is one of the best examples of a clear culture I have ever read.
They know how to tell their story. How to create a sense of belonging. And, how to be willing to take a step back, be vulnerable, and let others shine.
RITHOLTZ: Let me give you a quote from the book which I find fascinating, “We all fool ourselves from time to time in order to keep our thoughts and beliefs consistent with what we have already done.” Why is the desire for consistency such a motivator of behavior?
CIALDINI: Two reasons one is we prefer to have our — for reasons of self concept to be consistent within ourselves, right? We want to see ourselves as reasonable, as logical, and rational individuals would be — would say one thing that would fit with the next thing we say, the other is the people around us want us to be consistent too.
And so for both of those reasons, internal status and external status, we want to be consistent and appear to be consistent in our environment.
Even worse than wasting your own time is wasting the time of others. Drucker reminds us that leaders can be their own organizations’ worst bottlenecks. “In a knowledge organization, if something sits in the leader’s in-box for two weeks, it’s like the line being down in a factory for two weeks,” says Wartzman. “No one would tolerate that.”
The first surprise: Whether a manager spends 36% or 9% of her time on employee development doesn’t seem to matter. “There is very little correlation between time spent coaching and employee performance,” says Jaime Roca, one of Gartner’s practice leaders for human resources. “It’s less about the quantity and more about the quality.”
Her mother-in-law once advised her that the key to a happy marriage was sometimes pretending to be a little deaf; Ruth has said the same applies to being a female Supreme Court justice. “When a thoughtless or unkind word is spoken, best to tune it out,” she observed. “Reacting in anger or annoyance will not advance one’s ability to persuade.”
From the author of Endure one of my favorite books this year
That’s great news. Even better is that it doesn’t take much. The study’s main conclusion is that even one session or less than an hour a week of resistance training reduced the risk of cardiac events and death from all causes during the study, no matter how much (or how little) aerobic exercise the subjects were also doing.
“We have known from some small, not well controlled studies that the microbiome does change — and we have known for many years that adopting a Western lifestyle is associated with an increase in disease,” said microbial ecosystem expert Jack Gilbert, director of the University of Chicago’s Microbiome Center, who was not involved with the current study. “This brings those two concepts together.”
In response, a new management team under Graham Henry began to rebuild the world’s most successful sporting team from the inside out. They wanted a fresh culture that placed emphasis on individual character and personal leadership. Their mantra? ‘Better People Make Better All Blacks’. The result? An incredible win-rate of just over 86pc, and a Rugby World Cup.
In his 15 seasons as an NBA player, Kerr played for elite coaches such as Cotton Fitzsimmons (832 career wins), Lenny Wilkens (1,332 wins), Phil Jackson (1,155 wins) and Gregg Popovich (1,022 wins). So he knows how great coaches operate. Part of what he has learned is the importance of perspective: Maintaining a sense of humor and playfulness by showing your team that, indeed, there is more to life than basketball.
(The Coaching Conversation is an amazon affiliate. Every time you purchase through here you support this blog. We thank you for doing so. Of course, we also think the public library and your local independent bookstore are good choices as well.)
Do you coach an introvert or have a really quiet athlete on your team? Perhaps you are an introvert yourself?
If so, you may want to take a look at Susan Cain’s books, Quiet and Quiet Power. I have read and can recommend the first.
Quiet reminds us to make room on our teams for the introverted athletes without requiring anyone to change or to be self-conscious.
You don’t need to be loud to have the best ideas. Strength is not correlated to loudness. There’s an amount of light that is best for each person. Allow the athlete to find and enjoy that light. There is power is authenticity; power in quiet.
So if you coach an introvert perhaps just celebrate who she actually is without judgment or concern.
Quiet Power is on my list.
Look Beyond the Leaders
She also contributed a piece to the New York Times about the importance of followers in an organization.
“Yet a well-functioning student body — not to mention polity — also needs followers. It needs team players. And it needs those who go their own way.
It needs leaders who are called to service rather than to status.”
In the process she asserts by thinking of leadership in only one way we also hollow out the meaning of leadership.
“One young woman told me about her childhood as a happy and enthusiastic reader, student and cellist — until freshman year of high school, when “college applications loomed on the horizon, and suddenly, my every activity was held up against the holy grail of ‘leadership,’ ” she recalled. “And everyone knew,” she added, “that it was not the smart people, not the creative people, not the thoughtful people or decent human beings that scored the application letters and the scholarships, but the leaders. It seemed no activity or accomplishment meant squat unless it was somehow connected to leadership.”
Interesting article on effective feedback in Psychology Today. Basically he articulates the value of criticism in development and reminds us of the problems with excessive praise.
“Well-chosen criticism, delivered in an environment of high expectations and unconditional support, can inspire learning and development, whilst poorly judged praise can do more harm than good. Even relatively young children can tell the difference between constructive and destructive criticism, and it is a serious and unhelpful error to conflate the two.”
Found the article via Changing the Game Project on Twitter. Read the whole article. Also, give them each a follow on twitter.