The Lead: Risk of a Financial Crisis, The Youngest Self-Made Billionaire

The Lead, AchieveForum’s weekly brief of leadership news and insights, provides quick clarity into relevant headlines and straight-forward analysis for applying effective leadership tools and techniques.

Federal Communications Commission to Loosen Regulations

The FCC (Federal Communications Commission) has revealed their plan to repeal net neutrality rules, which prevent broadband companies from slowing down or blocking any sites or apps. This would move the enforcement of net neutrality to the Federal Trade Commission.

Our View: Leading through evolving regulations and other changes requires a combination of foresight, preparedness, vigilance, and problem-solving skills. Change can lead to fear that stifles or paralyzes action, so balance changes by keeping some consistencies. In other words, don’t change everything at once. Further Reading

China’s Risk of a Financial Crisis

China’s debt will likely increase over the next five years, increasing their risk of a financial crisis. “Adding debt equivalent to almost 70 percent of GDP in the next five years wouldn’t mean a crisis is inevitable, but it would severely reduce the chances of avoiding one,” Bloomberg economists said in a recent note.

Our View: Leaders must often deal with different types of debt at their organizations. Two key types are financial debt and management debt. Leaders are always in management debt, unlike financial debt, and they must develop a mindset to address management debt. They should always be working to address problems, underlying issues, and the hidden impacts of their decisions. Leaders should overcome discomfort and actively seek out problems and work relentlessly to resolve them. Further Reading

Saudi Arabia’s Tourist Visas

Prince Sultan bin Salman, head of the Saudi tourism and national heritage commission, shared with CNNMoney’s Richard Quest that Saudi Arabia plans to issue its first tourist visas in 2018. Plans for resorts, theme parks, and other projects to attract tourists are part of Saudi Arabia’s plan to reduce its reliance on oil.

Our View: Risk abounds when leaders grow their organizations outside of their core competencies, but organizations with a strong core that expand their strengths to new arenas can survive the long term. An ideal place to look for adjacency opportunities is inside an organization’s strongest customers. Further Reading

The World’s Youngest Self-Made Billionaire

John Collison is the co-founder of a US-based software business called Stripe and the world’s youngest self-made billionaire. Stripe is a software system that allows firms to easily collect payments, safely store customer data, and run other parts of their websites and security systems. Stripe charges customers an amount per transaction, and the company grew quickly despite its numerous competitors.

Our View: With the possibility of Stripe being the first truly global Internet company, their executives and founders will likely be looked to as thought leaders. A thought leader is a credible industry expert that delivers results. Thought leaders can boost their industry presence by working with mentors and influencers, seeking out speaking engagements, attending networking events, and publishing as often as they can. Further Reading

Chip and Dan Heath’s New Book

Authors Chip and Dan Heath released their new book called The Power of Moments: Why Certain Moments Have Extraordinary Impact. The Heaths share their discoveries about the happiness of customers and “positive defining moments” that make a difference for individuals and organizations. They found that executives estimated that their companies spend 80% of their resources trying to improve the experiences of their unhappiest customers, yet “there’s nine times more to gain by elevating positive customers than by eliminating negative ones.”

Our View: When people assess their experiences, minute-by-minute sensations are not averaged, rather people tend to remember leading moments such as the highs, lows, and transitions. Furthermore, people tend to forget or ignore the length of an experience in a phenomenon called “duration neglect.” The understanding of how we remember certain moments and why is becoming more clear, and this understanding helps leaders start to create more moments that matter. Further Reading

 

 

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