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The Black

Book
of
Executive
Politics
By

Business
Management
 Daily
special report BBEP
The Black
Book
of
Executive
Politics
By

Business
Management
 Daily
special report BBEP
Author: Z
Editor: Kathy A. Shipp
Editorial Director: Patrick DiDomenico
Associate Publisher: Adam Goldstein
Publisher: Phillip A. Ash

© 2010, 2002, 1995, 1993, Capitol Information Group, Inc., 7600A Leesburg Pike, West
Building, Suite 300, Falls Church, VA 22043-2004; www.BusinessManagementDaily.com.
Phone: (800) 543-2055. All rights reserved. No part of this report may be reproduced in
any form or by any means without written permission from the publisher. Printed in
U.S.A.

ISBN: 1-880024-05-5

“This publication is designed to provide accurate and authoritative information in regard


to the subject matter covered. It is sold with the understanding that the publisher is
not engaged in rendering legal, accounting or other professional service. If legal advice
or other expert assistance is required, the services of a competent professional person
should be sought.”—From a Declaration of Principles jointly adopted by a committee of the
American Bar Association and a committee of publishers and associations.
About ‘Z’
Y ou probably know Z. In fact, you’ve no doubt read quotes by him in
newspapers and seen him interviewed on television shows. You have also
probably seen his picture in major business magazines.

Z held top executive positions in several of America’s foremost corporations


over more than two decades. During those years, Z helped those corporations
expand and solidify their leadership in highly competitive fields. In the pro-
cess, he developed some fascinating and controversial views on what makes
people competitive in business.

We are pleased to share with you Z’s secrets for political survival in the cor-
porate arena. Z’s only stipulation was that we preserve his anonymity.

What follows is a unique, unvarnished collection of political survival tactics


from a top corporate executive.
Contents
1. All About Office Politics 1
Introduction 1
Is Something Holding You Back? 1
Your Political Road Map 3
Gauge What a Person Can Do for You 5
Your Personal Power Inventory 7
Your Executive Style 9
Political Mistakes 11

2. The Influence Game 13


When You Must Use Your Clout 13
Double Your Chances of Persuading Someone to See Things Your Way 15
The Incredible Power of Opinion 16

3. Survival Skills 19
The Power of Acting Out of Character 19
Using the Technique 19
Fighting Manipulation From Others 20
How to Take Intelligent Risks That Lead You Upward 21
The Solitary Risk 22
A Dangerous Game: Bypassing Your Boss 23
How to Distance Yourself From a Boss in Trouble 25
Sexual Come‑Ons in the Office 26
Handling a Hostile Press 29
Coping With Emergencies 30
Keep Pace With Tech Talk 32

4. Sizing Up the Opposition 35


The Power of Influence 35
Deal Diplomatically With an Opponent—and Get Even if You Have To 36
Recognizing Secret Agendas, Hidden Backstabbers 37
How to Spot Deceitful People 39
Emergency Phrases 43
When Overkill Is the Only Way 45

5. Keeping the Upper Hand 47


Mavericks—Should You Coddle or Control Them? 47
How to Know When Subordinates Are Going Over Your Head 48
Strategies for Coping With Resistance to Criticism 50
Pros and Cons of Hiring a Friend 51
Why Picking the Right Successor Is Vital 52

6. Personal Patterns of Success 55


How to Bypass Your Firm’s Salary Structure and Negotiate a Raise 55
How to Capitalize on Your Ideas and Those of Others 57
Giving Away Ideas 58
Using Other People’s Ideas 58
What a Well‑Positioned Mentor Can—and Cannot—Do for You 59
How to Score Points With the Boss 60
Use Jargon Wisely 61
How to Look Like a Person of Status 62
Decorate Your Office in Leader Style 63

7. Moving Up or Moving On 65
Are You Promotable? 65
Read the Handwriting on the Wall 66
The Good News About Losing Your Job 68
When to Take the Money and Run 69
Black Book of Executive Politics / 1

All About Office Politics 1


Introduction

P eople who fail come in all shapes and sizes. In my years in business,
I’ve seen them all. Some rose through the ranks quickly, only to stall
and drop for good like punctured balloons. Some were geniuses who
perennially were underappreciated and not rewarded enough. But most
were simply hard-working people with good ideas and instincts who got
permanently stuck in ruts.

I’ve also seen a handful of people who—regardless of education, intel-


ligence, manners, appearance or other obvious factors—rose steadily
through the ranks and then stayed on top through fat and lean times.
They were the type who, either consciously or instinctively, knew the art
of political survival.

These people didn’t get ahead as a result of immoral or amoral behavior.


Don’t think that for a minute. They succeeded by throwing out an over-
blown, overly polite, crippling world view that keeps most of today’s
executives tripping over themselves to avoid offending other people.

Is Something Holding You Back?


Early in my career, I began watching people around me. What I found,
in careers both big and small, is that those who succeed have the ability
to question and discard some, if not all, of the rules that ensnare and ulti-
mately immobilize others.

Our society teaches us to blindly accept hundreds of rules. These strictures


have been so ingrained in us since childhood that we don’t even feel the
crippling limitations they impose on our daily lives. Consider the follow-
ing “rules”:

1
2 / Business Management Daily

There are two sides to every question. (The fact is, sometimes you’re

right and the other side is wrong. The opposite can also be true.)
Always insist on getting credit for your ideas—and on giving credit

to others for their ideas. (Letting other people use your ideas can be
more advantageous to you than to them if you “cash in” on the favor
later on. And I’ve noticed that many other people have good ideas
they don’t mind lending.)
Work hard and success will invariably follow. (No one will notice

hard work unless you make sure they do.)


Success results from teamwork and cooperation. (The fact is, success

often follows periods of conflict and discord.)


The best ideas occur when everyone has a chance to contribute. (This

is bunk; some of the greatest ideas in history have come from one
visionary thinker.)
To get people to work hard, you have to get them to like their jobs—or

like you. (A quick glance at corporate history disproves this one. Lee
Iacocca, for example, was not popular with his subordinates.)
It takes time to come back after a failure. (In reality, stunning suc-

cesses often follow stunning failures—provided a winning mind-set


is at work.)
Behave consistently if you want other people to respect you. (People

won’t know you think a situation is threatening unless you get a little
excited from time to time.)
● People will like you more if you fit in. (In reality, it is differences that
win respect and set you apart: You’re smarter, better connected, faster
at making decisions and so on.)
The best way to deal with people is to treat them as you would like to

be treated. (Sure it’s the Golden Rule, but nine times out of ten people
would like to be treated differently from the way you would.)
Do these opinions sound like the mental baggage you’ve been lugging
around? Have they been slowing you down? If so, good. We’ve got some-
thing to work with.
Black Book of Executive Politics / 3

If I can get you to toss out or just bend one or two of the stale, outmoded,
ultimately useless ideas I just mentioned—or the ones I’m about to attack
in the following pages—I guarantee your career will change in ways you’ll
hardly believe.

You’ve got to have a little faith in me—and a lot of faith in yourself. But
if you’re ready to change your life and your career, read on and let’s get
started.

Your Political Road Map


Before you can apply the techniques explained in this book, you’ll need
an organized, clear picture of the lines of power that exist within your
workplace. I’ll show you a system for analyzing power structures that
has helped countless executives.

Start with a sheet of ledger-sized paper or a computer graphics program.


Place the names of the highest-ranking people in your unit or company
in a row across the top of the page. Allow about an inch and a half for
each name. Draw a circle about two inches in diameter around each name,
allowing space for comments. Beneath the top-ranked people, write the
names of the people who report to them. Continue down the chart past
your level, leaving enough room for one or two ranks of names beneath
yours.

Tip: Don’t forget about “influence agents”—those who may lurk in and
around your organization, such as an outside investor who tends to
meddle, a hands-on member of your firm’s board of directors or a long-
time consultant who has the CEO’s ear. Even though these folks aren’t in
the normal chain of command, include them among the highest-ranking
people.

Next, write one or two impressions and comments about each person in
his or her circle. Be sure to include information about the type of rela-
tionship you have with each one, interests you share and potential areas
of conflict. Then, indicate all reporting relationships by putting lines
between the circles in blue pen (some of the lines will have to be curved).
4 / Business Management Daily

Draw red lines to indicate any personal or strong political alliances you
have perceived between people, which may or may not coincide with
reporting lines.

On or near each line, put one or two facts about the relationship. Examples:
John reports to Mary but only on budget; Sue can’t make a decision without
consulting Elaine.

Don’t leave this road map lying around; it is a valuable political tool that
could be misused in the wrong hands.

This road map allows you to quickly visualize many of the relationships
and cross-relationships that exist in your work­place, putting you at an
instant advantage over people who try to carry this information around
in their heads. Others may base their plans for advancement on the com-
pany’s organizational chart, but you are beginning to get a picture of the
power centers at work beneath the surface.

You may find, for example, that certain people to whom you report form
a power center you had partially overlooked in the past. Perhaps the
president and one vice president attended the same college, and maybe
a second vice president is a very close friend of the other one. That’s a
structure that can have real power. Knowledge of this structure may enable
you to exert influence on the company president by lending support to
the ideas and projects of one of the vice presidents in question. Give sup-
port to the right person, and positive news about you will travel quickly
upward to the president.

Your map can provide knowledge of where you can exert influence on
people, often without talking to them directly.

I used this system early in my career to identify an executive who was not
closely allied with company leaders and who was therefore likely to leave
soon. With this insight, I positioned myself to be the candidate of choice
for that job when it became vacant. I made a point of getting involved in
the activities supervised by the outgoing executive and added to my skills
and experience in areas that would qualify me for his position.
Black Book of Executive Politics / 5

Update your road map every few months without fail. When you’re
dealing with a large number of individuals, you’ll be surprised how fre-
quently new situations evolve and power structures change. People leave,
and new people come on board. A group of executives falls out of favor
with the company president, or their departments lose importance in light
of new company agendas.

Gauge What a Person Can Do for You:


A Tale of Two Executives
The most common mistake people make in evaluating others is that they
jump to conclusions; they fail to take the time to develop a full picture of
someone’s strengths and connections.

Here’s an example: A firm I once worked for hired two marketing


executives whose duties included assuming the workload of a seasoned
executive who was about to leave the firm. One of the young executives
immediately dismissed the departing executive as a has-been and started
proposing all sorts of new programs and projects. The other newcomer
realized that the outgoing man was a virtual gold mine of information
and political connections and started using him to establish a broad net-
work of clients and internal contacts. Today, the second—and obviously
smarter—of those two new executives is situated near the top of the com-
pany’s structure. The other guy is right where he started.

Avoid snap judgments about people. Instead, consider the following points
when deciding which contacts to cultivate and how to use them:

■  Do your homework. Learn everything you can about a contact’s history,


both before and after joining the company. If appropriate, simply ask the
person about her past activities and ideas.

Be observant too. For example, notice what kind of technology the top
executives use. I love the Handspring Visor, a step up from my old Palm
Pilot. I carry it around everywhere. A sales-support guy who’s way down
on the totem pole here is an expert on personal digital assistants (PDAs),
and awhile ago he saw me using my Visor. We compared notes like two
6 / Business Management Daily

excited techies. Now he’s always ready to show off some new feature of
his Visor to me when we run into each other in the coffee room or hallway.
We have a little bond as a result.

If you’re trying to learn about someone who is inaccessible because of


higher rank, ask everyone you can about her past and her major accom-
plishments. Try to find out what her management style is and what types
of subordinates she prefers to work with. Don’t forget to ask, too, about
education, interests, personal life and so on. Such traits can form a vital
bridge to others in your organization.

■  Confirm your findings. In a casual way, confirm your findings with


other people. One technique: Say to a colleague, “We’re really lucky to
have Chris here, after she spearheaded the development of that successful
line at Plum Software.” Watch and listen carefully to gauge your contact’s
reactions.

■  Hone your observations. Using your personnel road map, begin to


develop a picture of the person’s responsibilities, reporting lines and
activities. As you gather information, enter it into the map. Note projects
or programs the person is currently overseeing or has headed in the past.

■  Go outside the firm. A wise executive doesn’t confine himself to his


own firm. By going outside your firm, you’ll learn things that you can’t
learn from within. For example, if a newcomer brought an extraordinary
amount of success to a former employer, odds are that someone outside
your firm will provide more detail about it than a coworker can or will.
You’ll also gain valuable insights on the agenda and approach the new-
comer is likely to bring to your company.

Such knowledge will give you an advantage over others. If you are told that
a newcomer placed great stress on monitoring sales figures at his previous
firm, for example, you can start monitoring them, become the in-house
expert and win approval and support more quickly than your peers will.

■ Consider the person’s status. Seasoned managers will often provide


help to people who are new to a company or industry. If you are fairly
Black Book of Executive Politics / 7

new to your firm, you may find a well-positioned, senior executive who
is willing to share ideas and political assistance if you show yourself to
be bright and diligent. (Fair or unfair, it is usually more difficult to win
that same kind of mentoring support from someone who is at your rank
because you are perceived as a potential source of competition.)

Don’t overlook recently laid-off executives, by the way. Cultivating a


relationship with someone who has taken “early retirement” can pay
unexpected dividends—especially if that person has a wide network of
contacts you can tap to land a better job later.

Your Personal Power Inventory


Take a moment to think about some powerful, influential people you have
known or observed. You will notice that they make the most of whatever
assets they possess, rather than hide them from view.

Thinking politically today requires you to uncover the many tools you
possess that have gone unused, to overcome any resistance you may have
to activating them, and to apply them aggressively in a structured pattern
to get ahead. Consider these assets you may not be using:

■  Community. Do you live in the same community as colleagues or some-


one in upper management? Sharing a commute can strengthen a valuable
alliance. So can the advantage of being able to talk about community
concerns such as schools, parks and environmental issues.

■  Family. Don’t be reluctant to call on your relatives for advice or help.


And sharing opinions with colleagues about children’s schooling and
other family matters can establish a comfortable common ground. If you
or your spouse can offer advice to your colleagues on concerns such as
real estate, investments and so on, don’t be shy about doing so.

■  Education and schooling. If you had a first-class education from pres-


tigious schools, let that fact be known in quiet, unpretentious ways. Look
for well-placed alumni of your alma mater. Review what you studied to
be sure you are not neglecting skills or interests that could help you rise
on the job.
8 / Business Management Daily

Tip: Scan the parking lot for cars adorned with stickers of your alma mater.
If you find one, chat up the car’s owner and ask, for example, “Did you
go to Yale?” Even if the person didn’t, she may have a kid who’s going
there. Offer to help her son or daughter network with alumni.

■ Style. Are you a sophisticate, a jock, a chic dresser, a suburbanite, a


tweedy rumpled type or a something else? Look for colleagues who share
your style. You’ll experience a high level of comfort and rapport with these
people—and you’ll find a number of allies.

■  Personality. You can build an alliance by seeking out those who are
attracted to your personality type or who share it. (You have been doing
this already, of course. But have you stopped to think about how and
why you do it?) Do you have a great sense of humor? Are you a positive
thinker? Are you highly creative and intuitive? Are you a hard-boiled
skeptic? These traits have value, and they can work for you. Look for
people who sympathize with you and admire your outlook, and build
your natural ties to them.

■  Heritage. Although discriminating against people makes you a legal


liability, you shouldn’t be reluctant to take advantage of your cultural,
religious, racial or national-origin background when selecting a firm to
work for or when building alliances.

It’s an equally great mistake, of course, to gravitate only toward people


who share your background. If you do, you cut yourself off from many
valuable contacts and sources of support.

People who take pride in their religion, ethnic background, country of


family origin and so on encounter a heightened level of respect from
those around them. Such self-respect, in fact, enables people from differ-
ent backgrounds to connect to each other through similar experiences.

■  Appearance. An average appearance shouldn’t slow you down in busi-


ness, but if you’re better than average looking, you already stand apart
from the crowd. Don’t rely on good looks exclusively, but count them as
an asset that can help you look the part for a leadership role.
Black Book of Executive Politics / 9

■  Linguistic ability. If you grew up speaking a second language or if


you acquired proficiency through study, you have a valuable tool. Use it
to build ties to others who speak the same language, and look for oppor-
tunities to help your business move into foreign markets or establish ties
abroad. Few abilities count for more in today’s increasingly international
business climate.

■  Personal interests. Hobbies, sports and other interests can gain you
an immediate set of connections. Do you collect paintings or stamps,
for example? These may seem like idle pastimes, but if you make these
interests known at work, you may find a network of others who share
them—even the company president or CEO.

■  Home. Just like your community, your home can be a great career
asset. Use it to host power parties or an open house that showcases your
interests and tastes.

Your Executive Style


When I think about the most successful people I have known, I find they
have very few physical or intellectual traits in common. What they do
share are certain elements of style. What is the style that draws leaders
toward the boardroom, and how can you acquire it?

■ Individuality. Don’t try to anticipate what other people might like—


simply espouse enthusiastically what you do. While sharing pursuits with
others is important, having an involved, enthusiastic life is what will make
you attractive to others.

In an effort to cultivate corporate style, many young managers try to


emulate the attitudes, interests and outlooks of their colleagues. They
try to fit in and finally do just that—right into pigeonhole-sized niches
they have built for themselves.

I remember one young executive who fit in so well that she was nearly
indistinguishable from all her colleagues at first. It was only when I worked
with her closely on several projects that I learned she had many interest-
10 / Business Management Daily

ing individual traits. She had published articles on furniture refinishing


and cooking and was a very competitive amateur tennis player. When I
asked her why she had never distributed one of her articles or displayed
any tournament pictures of herself in her office, she replied that it didn’t
seem appropriate to do so at work.

My view: If your business is inhospitable to your style and thinking, try-


ing to conform will only make you a fish out of water. Frankly, you’re in
the wrong business.

■  Standards. If you want to rise to the topmost executive ranks, you have
to make a careful assessment of your personal and professional standards.
Then you have to make a commitment to stick by them staunchly, no mat-
ter how difficult the circumstances.

For example, if you are fully committed to the profitability of your depart-
ment and it’s time to let some workers go, fire those who are the least
capable—regardless of your feelings.

Central issue: Do you want to make friends or earn respect? The middle-
management ranks are crowded with people who are popular, well liked
by everyone—and stuck. Company CEOs and presidents are often not so
well liked. In many cases, it is not because they are callous or unfriendly,
but because they adhere to high standards and policies that make them
stand apart.

■  Focus. The ability to concentrate completely on a task and get it done


is central to advancement. Focus is also the most important part of
what is often called ”executive presence.” To see it in action, observe
the person of power in a meeting. While others are veering off toward
secondary concerns and dead ends, this person will not be diverted from
his or her goals.

■ Appropriateness. Treat serious issues with a serious attitude. Some


executives seem eager to make light of every situation. I have even seen
some of them crack jokes just before laying off dozens of staff whose jobs
were the sole means of support for their families.
Black Book of Executive Politics / 11

Needless to say, I never again considered those executives for promotions.


Although telling a few jokes to blow off steam may break the tension of
difficult decisions, it will also make you appear too green for positions of
real responsibility.

■  Sobriety. Nothing will undermine your credibility more quickly than


having a few drinks at lunch and returning to the workplace smelling of
alcohol. Never do it. Even worse: drinking and acting out of character at
a company party or picnic.

What you do at home is your affair, but what you do at work is your busi-
ness. By the same token, inappropriate romantic or sexual liaisons will
push you right off the corporate ladder. (See Chapter 3, “Sexual Come-Ons
in the Office.”)

Political Mistakes
Now that you’re on your way toward building a bulletproof political
network and putting all your assets to work, consider this list of things
you should never do:

■ Bad timing. If you haven’t progressed beyond establishing that you


and your contact share an interest in travel, it’s too soon to ask for help in
winning a new sales territory. You have to bide your time. Before asking
someone for help, consider whether your relationship is ready to bear the
weight of what you’re requesting.

■  Toe stepping. Before you look to a person (or a group) for support,
consider the position he occupies. If a new territory or set of responsibili-
ties is up for grabs, asking the head of another department for help in
winning that may be a serious mistake if he’s considering making a play
for it as well.

Exception: If your alliance with such a person is exceptionally strong and


well maintained, asking for his support may prompt him to drop out of
the competition, sometimes without resentment. Alternately, it may open
up discussion of a mutually beneficial approach to the situation.
12 / Business Management Daily

■  Relying on foundationless alliances. Being friendly with another man-


ager is not enough for you to rely on him for strong support in emergency
situations. Be sure there are a variety of other supporting factors, including
a history of cooperation, to add a foundation to your relationship. The
more you ask for, the stronger the relationship must be.

■ Overusing an alliance. The more valuable an alliance, the less often


you should use it for help in big projects. (A strong ally will be silently
working for your interests in many small ways without your knowing it
every day.) If you walk into a highly placed colleague’s office too often to
ask for a favor, the quality of your connection will erode quickly.

Think of an alliance as a rechargeable battery. After using it, you have to


re-energize it before tapping into it again. After getting a favor, return
a favor in a big way or do some high-level stroking to keep the alliance
running strong.

■  Letting alliances lapse. If the very person who can help you is someone
with whom you used to enjoy close political ties but have been neglecting
lately, don’t count on picking up your former close relationship where it
left off. It is also a serious mistake to suddenly start currying favor by tak-
ing that person out to lunch, calling him to chat and so on before making
a pitch for support. Best: Maintain close ties to your colleagues, letting
none of them lapse. Next best: Come clean. Tell the person that you are
aware you haven’t been in close touch lately but you have good memories
of past projects you shared and are calling to ask for support. Strengthen
this approach with an immediate offer of support for one of your contact’s
current concerns.

■  Posturing. When trying to win support or influence someone, it’s


dangerous to imply that she should support your project because you are
strongly connected to someone at the top. First, the implication is a threat.
Second, if the top person turns out to be a less-than-staunch supporter
in this instance, you’re going to lose face with everyone. Third, everyone
knows that you are strongly connected to the bigwig anyway and will
weigh that information in deciding whether to support you. Blowing your
own horn only makes you a blowhard.

These are the basics of political survival. Now let’s turn to how you can
use them to win the influence game.
Black Book of Executive Politics / 13

The Influence Game 2


When You Must Use Your Clout

C ontrary to a popular misperception, “clout” is not your ability to


threaten or coerce people into cooperating with you. Instead, clout
is your unspoken influence that leads others to line up behind you and
support you without being pressured. It’s that kind of strong, silent sup-
port base you need to make the ultimate climb into the executive suite.

You don’t get clout in a day, or even a week. It accrues gradually as people
come to see you as a leader when you apply standards, learn to focus and
use the other positive political assets I’ve already discussed.

There are certain times in business when you must “cash in” on the clout
you have built up. Of course, you’re not going to call people up and
threaten them into supporting you. You are, however, going to tell them
you are counting on their support to reach a particular, focused goal. Why
do you need to contact people and ask for support? Simply because people
are busy and actively pursuing their own needs. You can’t expect them to
monitor your activities and know when you want their help to reach an
immediate goal. It is part of your job to communicate with them—to say,
“I’m counting on your help this time, when it will really count.”

Here, then, are certain times when you may want to cash in your clout by
asking for specific support:

■  You’re heading up an especially risky project. Lending your support


to a new project that succeeds is a career windfall; to one that bombs, a
career nightmare. It’s better to be remembered for three remarkable suc-
cesses than for four remarkable successes and one or two failures, so step
into high-risk situations with care and use your clout to build support.

■  Responsibilities are up for grabs as your firm reorganizes. If your com-


pany changes direction and your responsibilities change, you may need

13
14 / Business Management Daily

focused help as you carve out a new role for yourself. (Fact: A temporary
cutback in re­sponsibilities usually becomes permanent.)

■  You’re taking on significant new responsibilities. If you’re supervising


a new department or division, for example, you may need to use your clout
to get the cooperation required to let you start from a position of strength.

■  You’re moving to a new location. If you take a job in a branch or regional


office, you must leverage your clout to make sure it’s not a trip to nowhere.

■  Your momentum has stalled. You’re not at the top, but your upward
progress has stopped. Perhaps you’re not included in meetings or invited
to head new committees. Perhaps your staff is being reduced. You’re get-
ting positive feedback on job reviews, but no promotions. Calling on your
support base can break the deadlock. I’ve seen stalled executives time and
time again regain their career momentum by calling on their clout to win
several well-timed gains.

How you frame a request has a real impact on the outcome. Here’s a simple
example of how the same request can be framed to appeal strongly to dif-
ferent types of people:

Suppose you are trying to win support for a community-centered program


in which your company would help local elementary schools pay for high-
speed Internet access so students could use the Web more efficiently. The
idea sounds like only one proposal. But consider how it can be reshaped
and positioned in a number of ways to appeal to different executives:

1. When pitching the idea to the head of marketing, position the idea as
a marketing tool. Your campaign can reinforce the company’s image as a
cutting-edge firm that is committed to introducing the latest technology
into the community. It can also be used as a vehicle for public relations
in the local media, as a form of effective advertising, as a way of gaining
exposure for your company through cooperative programs with Internet
service providers.
Black Book of Executive Politics / 15

2. When pitching it to the head of human resources, position it as a way


to improve employee morale by engendering the feeling that the company
practices good citizenship in the community.

3. When pitching it to a cost-conscious company president, position it as


a relatively low-cost way to win widespread community exposure and per-
haps even as a cost-effective alternative to planned advertising campaigns.

An idea is like a work of art in that each observer looks at it a bit differently
depending on his vantage point. Your job is to position your idea or pro-
posal in the best light for each person who sees it. This system can double
or even triple the frequency with which you gain support for your ideas.

Double Your Chances of Persuading Someone


to See Things Your Way
When people get ready to negotiate for something they really want, they
often weaken their chances by overpreparing and overdocumenting. You’re
far more likely to win support if you make smart, simple preparations.
Review the following checklist:

✔  Keep things simple. Distill your ideas into a few sentences. Have sup-
porting data and paperwork available to settle disputes, strengthen your
case or distribute later—but don’t present them in negotiations unless
they’re needed.

✔  Structure your presentation. Reveal your biggest idea immediately,


without a preamble. If your first point is well received, make your second
and third points. Resist the temptation to keep throwing in lesser and
lesser points to fill up the time—they only weaken your stance. If you win
agreement, stop talking—even if you still have points to make. The longer
you talk, the greater the chance that someone will disagree.

✔  Anticipate objections. Be sure to do your homework on how the


people on the other side are likely to react to your proposal. Research how
they treated similar proposals in the past, and anticipate objections your
opponents are likely to make.
16 / Business Management Daily

✔  Build in some sacrifices. To protect the meat of your proposal—the


things you really don’t want to see cut out—add a few chips you’re willing
to give up. You can then bargain them away and end up with the parts
that mean the most to you.

✔  Don’t try to score all the points. Your position will be strengthened—and
cooperation more likely—if you accede to some ideas from people who are
critiquing your presentation. They’ll feel as though they are part of the deci-
sion, and they’ll be more committed to seeing your idea succeed.

✔  Meet resistance flexibly. When you care a great deal about a project,
you may tend to overreact when someone raises questions. Try to foster
an atmosphere of cooperation—it implies that your project or proposal is
already under way. If negotiations stall completely, try to ascertain what
is really bothering the other side. Don’t become argumentative, but make
an effort to read between the lines. As a last resort, consider throwing one
of your sacrifice chips away to get things moving.

✔  Don’t give away the store. Accept a certain number of modifications to


your plans, but don’t let them get converted into another person’s project
that you’re now expected to supervise. If you see this happening, offer to
withdraw the entire proposal.

✔  Rise above politics. It’s funny advice to be giving in this book, but try
not to classify past opponents as enemies when you’re making a presen-
tation. The more important your proposal, the more vital it is to appear
to have the interests of the entire company at heart—especially when
top management is in attendance. Don’t betray any aggressive feelings
toward your opponents or act condescending.

The Incredible Power of Opinion


Of all the commonly held, stale misconceptions in our society, one of the
most damaging is the idea that there are two valid sides to every issue. We’re
all supposed to believe that other people’s views are just as good as ours
and that they deserve equal consideration. Any idea will become stronger,
so it is said, if we open it up to discussion.
Black Book of Executive Politics / 17

Yes, teams can accomplish remarkable things. But I’m also a firm believer
that great ideas come from individuals who convince other people through
the power of their opinions. Without individual opinions, group progress
can become difficult, if not impossible. How many times have you been
in a meeting that generated no ideas because everyone was trying to be
open to everyone else or proposing lukewarm solutions to avoid offend-
ing anyone?

One of the most remarkable and effective executives I’ve observed at close
range owed much of his success to the fact that he didn’t follow this prac-
tice. For our purposes here, let’s call him Mr. O. Having started as head
of a branch office, he had been promoted to director of operations for an
electronics company in a few short years. When I collaborated with him,
he had remained on top for nearly a decade, solidifying his position as
he guided his growing company to a position of prominence in its field.

Mr. O was not a visionary genius. But what he did have—whenever he had
done his homework and knew he was right—was an opinion. In fact, the
ability to press strongly toward the goals he felt were valid was really the
only thing that set him apart from his colleagues. He would stride into a
meeting armed with some idea or plan he believed was right, and every-
one pres­ent would be forced either to react positively or to propose—and
defend—another approach to the problem.

Plans were made and projects completed effectively and simply because
Mr. O’s opinions acted as a fulcrum for others to use in their thinking and
work. I began to notice one curious fact: Ideas from almost everyone on
the staff were being implemented—not just the ones from this man. Yet
he was the reason for the progress.

Does an approach like Mr. O’s run counter to all the new thinking about
teams and cooperation? No. Opinions and agendas are always at work
within any group of people—whether you call it a team, a task force or a
committee. People who have the substance to say, “This is what I think;
this is what I believe is right,” serve as the catalyst for change and action.
We need them more than ever. I’ve also noticed that such action-oriented
individuals often get the credit when a group achieves noteworthy results.
18 / Business Management Daily
Black Book of Executive Politics / 19

Survival Skills 3
The Power of Acting Out of Character

C onsciously acting out of character is manipulative, but it is one of the


most powerful tools at your disposal. In my first job after college, it
worked on me.

I was called into the office of one of our company vice presidents—a man
who was, to put it mildly, aloof. In fact, he had not even nodded to me
up until then. When I entered his office, he invited me to sit and was very
cordial. He asked questions about my college studies, my interests, my
family and whether I had found satisfactory living quarters in the city.
Then he outlined some stiff new responsibilities he wanted me to assume
and ushered me out of his office. The next day, all I got from him was a
hurried nod in the hall.

Hungering for some of that same interpersonal contact again, I worked


hard to get the job done well. Years later, I realized that he had manipu-
lated me by a change of style. But the ruse was as beneficial for me as it
was for the manipulator. I got extra motivation to get the work done, and
it contributed to my advancement.

This story bears out one of the central ideas of this book: In most cases,
bending the rules gets things done and helps everyone out. The rule that
was broken in this case was the one that says people will work best for
you if you project a consistent personality and outlook.

Using the Technique


To act out of character, you must define what your character generally is.
And it’s equally important that you use this technique only occasionally.
Continually shifting your stance would water down your personality,
rather than give it strength.

19
20 / Business Management Daily

Here are some basic character polarities and how to use them:

■  Familiar versus aloof. As shown in the last example, sudden friendli-


ness achieves results. If you are habitually gregarious, by contrast, a dose
of aloofness can go a long way toward making people think that you
have something on your mind or that they are not performing to your
satisfaction.

■  Polite versus brusque. If you’re a cut‑the‑baloney type, a sudden act


of politeness (holding the door for a colleague or helping someone into
an overcoat) can temporarily disarm an opponent or predispose an ally
toward doing a favor for you. If, however, you are usually a model of
civility and decorum, storming out of a meeting once in your career to
make an important point is probably a good idea.

■ Serious versus humorous. Shifting from one pole to the other can pro-
duce stirring results. If you’re a never‑crack‑a‑smile type, you can sway a
meeting once in a while by opening with a cornball joke. However, if you
usually have a sunny personality, you can send a shiver down people’s
spines by refraining from laughing when everyone else does.

■ Opinionated versus passive. If you always state your views strongly


and give detailed instructions, you can motivate a colleague by saying,
“You’re in charge on this project, and I trust you to do what is necessary.”
However, if you’re more passive in nature, try taking a strong line for an
important project.

Fighting Manipulation From Others


Other people will try to use techniques similar to those outlined above
to manipulate you. I once worked for a man, for example, who gladly
approved all my ideas and activities for months, then went on the warpath
for a week or two—aggressively attacking a particular project or activity.

He believed that casting me into the doghouse occasionally would keep


me from becoming too self‑assured. He also believed that I would think
he was watching me very closely (he wasn’t) if he occasionally seized on
Black Book of Executive Politics / 21

something I had done and pulled it apart. It was management by terror—or


at least an attempt at it. But I didn’t let myself become a victim.

Here are the strategies I used to fight this manipulation:

First, my work was always very good. When this executive was in his
“attack” mode, he couldn’t really destroy what I had done. I always had
a reason for what I had done, approval from the necessary people and a
valid goal I was trying to reach. Even when he was looking the other way,
I maintained high standards.

Second, I kept a steady course. I realized that if I let that executive trick
me into spending weeks “repairing” some project he had just attacked,
he would then pounce on some other activity that I had temporarily rel-
egated to a lower priority. I saw that I needed to prioritize my activities
according to valid goals and needs, and remain steady. By showing that I
was incapable of being manipulated off course, I forced him to deal with
me on a more honest plane.

Third, I didn’t let the manipulations upset me—at least not visibly. I saw
the manipulation for what it was—a clumsy attempt at intimidation. I
adopted a calm, businesslike demeanor when I was under attack or scru-
tiny. I answered questions, looked the attacker in the eye, remained calm
and kept up to speed on all assignments. The boss soon realized that I was
not vulnerable to his maneuvers.

How to Take Intelligent Risks


That Lead You Upward
Risk-taking is important for your career. You’ll never get anywhere unless
you are willing to try something risky periodically. Doing so shows that
you have vision and courage. It also enables you to score some significant
wins—the kind of noteworthy advances that any executive needs to bring
ultimate success.

Before taking on risk, however, there are several things you should
consider. For example:
22 / Business Management Daily

■  What are the worst—and best—things that can happen? If the worst
thing that can happen is that you’ll irritate your staff and the best thing
is that you’ll contribute significantly to the bottom line, the risk is worth
taking.

■  Do you have the total support of the people you need? Look at your
political road map (see page 3) and my earlier comments on clout (see
page 13). Consider whom you will need to support you. If necessary, rein-
force your critical political alliances.

■ Is it fun? If you can convince yourself, your staff and your superiors
that a risky undertaking is challenging and fun, you’re far more likely to
gain needed support. Frame the undertaking in an appealing way to gain
support—like the way Tom Sawyer induced others to help him whitewash
Aunt Polly’s fence.

■ What are the implications for your career? If you undertake a risky
assignment and succeed, you become strongly associated with what you
have done. That’s a tie that will exert a force on what people ask you to
do in the future. Consider career implications before taking action.

The Solitary Risk


When the time comes to take on something risky alone—going to the
president to complain about your supervisor, for example, or to ask for a
chance to oversee your company’s application of a costly investment in
new technology—you are in a sacrifice situation. You’re ready to assume
great risk on the chance that you’ll win out. Follow these steps:

■ Understand and minimize the risk. Have a concrete plan for what
you’ll do if you lose. Example: If your complaints about your boss fall on
deaf ears, your only recourse may be to leave the firm. Adopt a free-agent
mentality to cushion the blow. That means thinking of yourself as CEO of
your own income-producing potential. Prepare a Plan B so that you can
keep earning money somewhere else, whether by taking on consulting
work or job hopping to another full-time position elsewhere. Ask yourself,
“Am I really desperate enough to take these risks now, or should I wait
until I am in a stronger position?”
Black Book of Executive Politics / 23

■ Analyze the outcome if you succeed. Are you ready to deal with what
you’ve taken on if you succeed? It’s a trap to romanticize the joy of how
wonderful it will be to advance rapidly by taking a big chance. It can be
grand—but such a step is not without risks.

■  Prepare. The wise risk-taker knows what she’s getting into. Don’t just
reinforce your key political connections two or three days before you
make your move. Telecommuters can fall into this trap if they suddenly
start showing up at the office to butter up their contacts just before they
submit a controversial proposal. If you’re playing with this degree of risk,
you had better keep your fences mended—and reinforced—at all times.

A Dangerous Game: Bypassing Your Boss


There is another risk that you may need to take at some point in your
career: bypassing your boss. It should be attempted only when a boss is
so limiting that you don’t have that much to lose—and, as a consequence,
a great deal to win.

Let me give you an example. I once supervised a man who was a brilliant
electrical engineer. As head of research and development at an electronics
firm where I was CEO, he supervised a staff of a dozen other engineers
and a large number of technicians and support personnel.

One of the engineers who reported to him was not only a good researcher
but also a woman with a great deal of marketing vision. She was better
than her boss, in fact, at envisioning marketing possibilities for some of the
technical work they were doing in the lab. She had repeatedly proposed a
very good, marketable idea for a new product to her boss, who disagreed
with her and did not pass the idea upward. She finally decided to write a
report on her idea anyway, making sure through some clever politicking
that it came to my attention.

What was my reaction? I could have reacted badly to what she had
done because I do not often favor breaking ranks or breaching company
structures. I could have labeled her a malcontent or a troublemaker, and
her career could have suffered. However, the virtue of her proposal was
24 / Business Management Daily

immediately clear to me, and I made a point of subtly promoting it and


giving her a chance to show what she could do. (Incidentally, I did not
penalize her boss for his resistance to the idea; our opinions on its virtue
were simply different.)

This was an instance where a subtle end run around a boss netted good
results. She succeeded for these reasons:

● Her idea was good. That’s the most important factor. Had it been a
poor idea, she would not have won.

● She had shown herself to be an excellent worker. People with poor


track records had better not try to circumvent a boss—even the most
flawed boss in existence.

● She had made an honest, concerted effort to convince her boss. She
wasn’t sneaking around trying to use her good idea to make her boss
look bad. She had, in fact, tried to win approval “by the book” and
had been rebuffed and ignored by him.

● She chose a means that was respectful of company structures. Had


she marched into my office to complain about her boss, I would have
shown her right out again. She allowed me, through her memo and
reports, to recognize the virtue I saw in her idea without making her
boss look bad.

● She had a CEO who was smart and receptive to good thinking. I
have always valued profitable ideas over company protocols. Some-
how, this woman realized I was that kind of CEO—a factor that
lessened the degree of risk and increased the chances of a positive
response to her idea.

There are other situations, too, when it’s not out of the question to bypass
a boss. If your boss is a bully or completely ineffectual, for example, he
will be seen as such by upper management. The spread of 360-degree
feedback, in which employees get critiqued not only by their boss but
Black Book of Executive Politics / 25

also by their peers, allows many organizations to identify and eradicate


duds pretty quickly. And if it’s any comfort, bad management radiates
up as well as down.

If you think that your boss will soon leave or be replaced, that will lessen
the overall risk of bypassing him. Doing so may even position you for
gain in the restructuring that will follow his departure.

But let me close this section on the same note as I began: Bypassing is a
great risk. Never attempt it without a prior grasp of the possible and even
probable damage that can follow a failed effort. By handling it as I have
suggested here, you can make it a calculated risk instead of a slapdash
one and increase the chances of success.

How to Distance Yourself


From a Boss in Trouble
How can you distance yourself from a sinking boss without showing open
disloyalty? Displaying unfaithfulness to any boss, even one in his final
days, undermines your own credibility with upper management. Observe
this precaution: Shape your relationship with any boss in such a manner
that you are associated with him in the best professional ways—and in
very few ways that will get you in trouble if hard times come.

A healthy relationship with a boss has these characteristics:

■  Personal independence. If you have established a strong pattern of


making decisions on your own, your boss won’t view your autonomy as
a sign of disloyalty when trouble strikes his career. My advice is to find
ways to stand a bit apart from your boss from Day 1.

In part, establishing this independent profile is a question of style. Don’t


always be seen with your boss—the me‑and‑my‑shadow syndrome. At
staff meetings or company retreats, don’t hover around the boss or race
to sit close to him. Resist the temptation to cultivate a close tie with your
boss exclusively by socializing. Be sure to earn his support through a
variety of means.
26 / Business Management Daily

■  Professional autonomy. In your relationship with your boss, be clear


that your work activities are your products—even though he may have
instructed you to do them. Invest your work with your personal approach
and content.

■ Political independence. Develop a broad range of contacts and a net-


work of support in which your boss is not the only player. Report to him,
but interact with dozens of other key people.

If your boss falls into disfavor with top management, key shareholders
or the board of directors, you must immediately decide whether that
disfavor is justified. If he really has been performing inadequately, con-
tinuing to lend unqualified support will only make you more strongly
associated with your boss’s team—and less likely to ­survive any coming
debacles.

If, however, your boss is genuinely capable and upper management is


being unfair, you have to weigh a variety of factors and plan appropriate
actions accordingly. Consider:

■  Upper management’s style. If your company’s leaders motivate workers


by instilling fear, it’s possible that your boss may not be on his way out.
Bide your time, and see what happens.

■  Your boss’s clout. If your boss is well respected in your industry, it


might be wise to continue your support. He will land on his feet with some
other company or emerge victorious from the current power struggle, and
your support will have earned you his gratitude. If he leaves, the fact that
you continued your support may not work against you with top manage-
ment—especially if your boss was in the doghouse because of a difference
in style or approach rather than incompetence.

Sexual Come‑Ons in the Office


If you’ve scanned the headlines lately, you’ve probably read about the
latest company to get embroiled in a sexual harassment suit. There have
been some staggering verdicts for plaintiffs, and that leads CEOs like me
Black Book of Executive Politics / 27

to be vigilant as hell about setting the right example and treating every
allegation of harassment seriously.

The current efforts to safeguard all employees against the pressure of


sexual harassment on the job are laudable and long overdue. However,
it is important to remember that sexual attractions are a natural part of
interpersonal chemistry, and the workplace is certainly not exempt.

Sometimes, Ms. and Mr. Right meet on the job, fall head-over-heels and
plan to spend the rest of their lives together. When this happens, all other
issues have a way of sorting themselves out—when and how the pair
should tell coworkers and whether one of them should leave the firm to
preserve healthy business and domestic relationships.

But other sexual interactions pose more difficult questions. The key is
to nip unwelcome come-ons in the bud so they don’t escalate. Be on the
lookout for a coworker who:

● Sends you e-mail with off-color jokes or links to sexually suggestive


Web sites.
● Calls you over to gawk at magazine articles, drawings or photographs
with a sexual theme.
● Violates your personal space subtly but repeatedly during face-to-face
encounters.
● Follows you to your car in the parking lot frequently, and pries about
your personal life (asks about your dating activity, status of your
relationship/marriage and so on).
● Seems unusually interested in your personal grooming and appear-
ance, and consistently comments on it in excessive detail.

While none of the above necessarily constitutes sexual harassment, the


larger issue is knowing how to recognize these red flags and taking steps
to deal with them. For example, don’t let yourself get suckered into being
behind closed doors alone with such a person. While the odds are that
nothing terrible will happen, why risk it?
28 / Business Management Daily

Another politically smart move is to remain friendly with these folks—but


not too friendly. Ignore their risqué e-mails, but reply by discussing a busi-
ness issue. If they snoop about your personal life, laugh off their interest
and change the subject. You might say, “Oh, my life’s just fascinating,” and
then, without skipping a beat, ask in all seriousness, “What’s the status
of your report?”

Of course, others may simply find you attractive and want to test the
waters. They may not know you’re married or otherwise “taken,” or they
may know but want to pursue you anyway. Your job is to draw the line.
Accept compliments about your appearance with thanks, and then move
on. Fend off advances with a firm but polite reply: “My rule at work is to
keep things entirely professional.”

When someone makes a sexual overture toward you, ask yourself the
following:

■  Is it a power play? Since biblical times, people have been using sex—
either promised or provided—to advance themselves. Look objectively at
the person’s position, and decide whether you can make whatever choices
you want, free of coercion. Then look at your own emotions: If you feel
complimented, empowered or excited by the sexual advance, take care
that your own emotions don’t lead you into a trap.

■  Is it just sleazy? Men and women who are bored and looking for sexual
liaisons among coworkers often lose sight of their professional or personal
priorities. In many cases, they’re emotionally stunted, devious or plain
old troublemakers. Avoid these people.

■  Is it interesting? It would be crazy for me to tell people never to enter


into relationships with coworkers. If you have determined (after a reason-
able amount of time and some reflection) that the personal and political
risks are minimal, you may decide to make an informed decision to explore
the attraction—but always do it outside the workplace. Don’t blab about
your escapades to a “friend” at work. Trust me, no one’s going to keep that
kind of secret! Word will spread, and then the real disruption will set in.
There are always more risks than you can anticipate when romance and
Black Book of Executive Politics / 29

work are combined. It’s like throwing a stone into a pond—the ripples
extend outward and may have secondary effects that you simply cannot
predict.

■  What does it say about you? When two coworkers enter into a relation-
ship, it is almost always discovered or sensed by others at work. Pretend
that others on the job know of your relationship. What would that be like?
What would it say about you? What impact would it have on your career
or your partner’s? If their comments about you would be bad (because
your potential partner has had previous relationships with coworkers, one
of you is married, and so on), refrain from entering into the relationship.

■  What is the context? If a coworker invites you to dinner or the theater,


the flirtation has begun on a fairly sophisticated plane and is mutual.
However, a sudden advance at the office party—allowing no time for you
to consider the ramifications—should be rebuffed at all costs. It could eas-
ily make you the center of gossip and destroy the credibility it may have
taken you years to achieve.

Handling a Hostile Press


Your firm is under fire. The media are on the phone or waiting outside
the door—and they want blood. As the representative for your company,
you have to meet them—alone. A misstep can damage the company, your
career and your chances with the thousands of potential employers who
could see or read about your blunders. But if you handle the media like a
pro, you can reap big rewards and get great career exposure.

Here are some tips that have helped me walk through the minefield of
media relations.

First, claim some basic privileges: the right to be treated politely and fairly,
the right to have a chance to say what you want and the right to remain
in control of the situation. That includes the right to hang up the phone
or turn your back and walk out of the room if your other rights are not
being respected.
30 / Business Management Daily

Another important strategy is to speak in “sound bites.” Use sentences that


are as brief as possible to limit the possibility that your comments will be
misinterpreted or taken out of context. This is especially important when
you’re taping a radio or TV interview because they are likely to summarize
your remarks in only two or three seconds of footage. A long, rambling
sentence is more likely to be used only in part, increasing the chances
that your statements will be used out of context and make you look bad.

Coping With Emergencies


With luck, you’ll have time to assess the situation and gather background
information before you’re on the spot. However, there may come a time—
an executive’s nightmare—when you’re suddenly before the cameras try-
ing to explain why your company’s oil tank caught fire or why your firm
is closing a plant that employed a large number of workers.

The worst thing you can do is lie, evade or stonewall. Just as harmful is
to issue an opinion based on skimpy information in the hope that you’ll
later be proved right by the facts.

Although the press and the public certainly won’t want to hear the “that
matter is currently under investigation” line, it is often the safest and most
honest thing you can say. But honesty will only get you so far with report-
ers, who may try to trip you up with the following ploys:

■  The “what if” question. Example: “What if the fire spreads and fatalities
result—will your firm make restitution to the families of victims?” Don’t
ever let yourself get pulled into speculation. Reporters can trap you in a
seemingly unimportant speculation and then lead you into more damag-
ing statements.

■  The “yes-or-no” question. Example: “Did your company take adequate


safety precautions? Yes or no?” This is an overt ploy to make you look bad,
and it will work. To limit the damage, say, “We will be issuing a report
containing that information shortly.” Whatever you do, don’t pick some
arbitrary date when an answer will be forthcoming.
Black Book of Executive Politics / 31

■ The “No. 1 priority” question. Example: “What is your company’s


No. 1 priority in fighting pollution?” If you say you’re reducing your
plant’s output of airborne pollutants, the press might criticize you for
ignoring water‑purity restrictions. Say, “We are attacking many major
concerns, including . . .”

■ The “off-the-record” question. Always respond to a reporter as though


your statements will become a matter of public record. Odds are that they
will. If you are asked to comment off the record, refuse. Never say anything
unless you are prepared to see it in print or on the air.

■  The “either/or” question. Example: “Either your company wants to


keep the citizens of this town employed or it wants to close down the
factory. Which is it?” This is an attempt to paint you into a corner. Your
best defense is to point out that the “either/or” case is spurious. Time
permitting, explain the issues that confront your company.

■  The “multiple-choice” question. Example: “Will you replace outmoded


equipment to meet new EPA guidelines, repair the old equipment or just
shut down temporarily?” Simply because the reporter is supplying the
options doesn’t mean that you can’t ignore them and supply some of
your own.

■ The “statement” question. Example: “You obviously don’t want to


spend money on community development projects.” Convert the state-
ment into a question: “If you’re asking about our current programs, let
me explain them for you.”

■ The “second-guess” question. Example: “How do you think your


competitors will respond to your new product line?” You should respond,
“You’d better ask them that question.”

■  The “policy-statement” question. When you go before the press armed


with information on a specific issue, some reporter may ask, “What is your
company’s stand on the environment?” To avoid a lengthy silence or an
ill‑conceived reply, tie your answer into the matter you came prepared to
discuss and point to it as an example of your company’s outlook. Ques-
32 / Business Management Daily

tions like this present a golden opportunity to display your background


research and tell of past activities that show your firm in a positive light.

Keep Pace With Tech Talk


Office politics always seems to involve some degree of scheming, back-
stabbing or pettiness. But today’s dot-com workplace tests your political
skills in a whole different way. You have to make sure you can talk the
“tech talk” and not sound like a fool.

If you’re a techie, mastering the latest software upgrades or wireless prod-


ucts comes naturally to you. But the rest of you better not get left behind.
The tech-savvy will inherit the earth—or at least the biggest offices.

Ask yourself, “What do my bosses think of all the latest technological


advances?” If your CEO brags about his digital camera and understands
advanced spreadsheet programs, you at least better get up to speed on
what he cares about. Why? You can bet his management team shares (or
pretends to share) his enthusiasm for technology. So if you want to play
at the highest level, you need to speak the language.

I know a guy who runs a big subsidiary of General Electric. He insists


on digitizing everything. He really believes in the paperless office and
preaches his vision every day to employees. All his managers have laptops,
and he insists they bring them to meetings. In fact, he frowns on anyone
who dares enter his office without a laptop. “If they keep showing up ex-
pecting to talk business or schedule appointments without a laptop, that
pretty much tells me they’re not with the program,” he told me.

Let me give the Luddites out there a few other tips on office politics stem-
ming from technology issues:

• Stay abreast of online developments. Read at least one Internet


magazine a month. That way, if you get into a chat with an executive
about Web “cookies” or the hidden costs of e-commerce, at least you
can carry your half of the conversation.
Black Book of Executive Politics / 33

• Track applications in your industry. Stay plugged in to what your


competitors are doing on the technology front. Ask friends in those
companies what programs they’re using, which vendors and what
investments they’re making. You may not get all the answers you’re
looking for, but snooping can’t hurt. And if you uncover useful infor-
mation, you can pass it along to your bosses and look like a hero.
• Talk to the IT staff. You win office politics when you build trust—and
you develop real trust only by sitting down with people and inter-
acting with them on their turf. So don’t just exchange occasional
e-mails with the info-systems crew down the hall. Get together and
learn what excites them. Become familiar with the new technologies
they’re beta-testing so that you can, in turn, brag about your cutting-
edge knowledge to unenlightened execs.

Maybe you’ve seen the Saturday Night Live skit, “Nick Burns: Your Com-
pany’s Computer Guy.” Nick is an all-too-recognizable help-desk geek who
mistreats the hapless end user. He likes to yell “Move!” when he arrives
to fix a technical glitch; then he fiddles with the person’s computer and
promptly saves the day. There’s a political lesson in this sketch: Be nice
to folks who have expertise that you lack. Even if they’re obnoxious, rise
above the urge to act the same way. Get on their good side and you’ll have
key allies throughout the organization.
Black Book of Executive Politics / 35

Sizing Up the Opposition 4


The Power of Influence

A ll of us have gotten into neck‑and‑neck races with another executive.


 It can be as elementary as a one-on-one fight for a promotion slot or as
complicated as a political struggle to increase staffing during crunch times.
In direct competition, you’ll be comparing yourself to your adversary:
your work records, length of employment and so forth. But the sum total
of all these variables is the elusive factor known as influence.

Roughly defined, influence is the degree of acceptance that upper man‑


agement has accorded you based on your past efforts, personality and
political strength. No two employees have the same power to influence.
It’s one of the most important factors in determining who will succeed.

An insecure opponent will usually resort to posturing: alluding to


connections, dropping names and bragging about how much she has con‑
tributed to the firm in the past. Or, a close political ally of your opponent
may drop by to convey this information to you indirectly.

If your adversary throws up this smoke screen, don’t be discouraged or


intimidated prematurely. Your adversary may or may not be in a position
of power—you won’t know until you confirm the following information:

■ Activity. Is your opponent still on the same committees that she served
on three or six months ago?

■  Connections. What personnel changes have occurred above the person?


Did she lose support when a close supervisor left?

■  Staff. How many people does your opponent supervise? Has this
number gone up or down over the last year or two? How does turnover
in your unit compare to that of your opponent? Why did people leave?

35
36 / Business Management Daily

■  Positioning. Where is your company headed? Considering current


company policy and plans, compare the role of your department to that
of your adversary’s. For example, a marketing director may have an
advantage over a head of sales in a firm that is moving away from field
sales and into direct marketing promotions.

■ Personality. If you find your opponent unpleasant, odds are that upper
management does, too. Unless they need an ogre to do the job, you are
probably at an advantage.

Deal Diplomatically With an Opponent—


and Get Even if You Have To
When a colleague steals one of your big ideas, spreads rumors to under‑
mine your credibility, bad‑mouths your managerial skills to your subor‑
dinates or engages in some other form of back-stabbing, the following
strategies will help you reassert your position of power:

■  Understand what happened. Rumors may have blown your opponent’s


act out of proportion. Before doing anything, speak to one or two people to
find out what actually occurred. Nothing makes you look more foolish than
overreacting to a minor infraction. Don’t kill a mosquito with a shotgun.

■ Keep your composure. Don’t lose control or become erratic. If you’re


going to become unpleasant or combative, let it be a conscious decision,
used to obtain specific results. In most cases, a calm exterior, coupled with
decisive action, lets you come out looking like a pro.

Act quickly. Waiting a few days to get your defenses in place will only
■ 
magnify the damage.

■  Respond appropriately. If another executive has told a member of


your staff that you’re a bad manager, don’t go right to his staff and make
the same charges—it would only show that you operate on the same low
plane as your opponent. Retaliate instead by winning a bigger victory
elsewhere. Consider what your political network can do to help you. You’ll
show your opponent that you can play a more sophisticated game than he
Black Book of Executive Politics / 37

can and that it doesn’t pay to tangle with you. But most important, you’ll
send the message subtly.

■  Deal with the problem directly. Sometimes it is best to go directly to


the offender, state exactly what he has done and demand an explanation.
This approach may trigger a feud that will be hard to contain. More often,
however, the result is something unexpected—your opponent comes back
at you with a countercharge about some offense you committed in the past
and have forgotten. If so, you have been handed a bargaining chip. Agree
to undo the damage, and it may be possible to arrange a compromise and
win the conflict.

As in all other matters, a well‑maintained political network increases your


odds of success: Your opponent knows that what happens to you will affect
his political fortunes as well as yours.

Recognizing Secret Agendas, Hidden Backstabbers


That people are not always what they seem in business should come as
no surprise. Some people are even dishonest and manipulative; they are
not above telling you that they are on your side while actually working
to undermine or defeat you and your goals. An incident that happened
in a company where I worked several years ago offers some guidance on
how you can recognize these types.

A friend of mine, the head of another division, seemed shaken and upset.
He had just fired an assistant who had been his close associate and con‑
fidant for some years. The reason for the firing was that the assistant had
been trying to build support to unseat my friend. This younger executive
was telling selected people that his boss was not doing a good job, was
out of step with recent developments in the industry and was incapable of
running the department well. Fortunately, the assistant was foolish enough
to make these claims to a close associate of my friend, who let him know
that his trusted staff member was engaging in dirty tricks.

The real message of this story lies not in the fact that the younger execu‑
tive was summarily dismissed, but in the words my friend spoke after he
learned of his subordinate’s trickery:
38 / Business Management Daily

● “Something about him didn’t add up from day one.”


● “I sometimes wondered why I had seen him in the company of so many
people around the organization—people with whom he had no reason to be in
contact.”
● “He often would make statements about how much he hated dishonesty and
politicking.”
● “If I had trusted my gut feeling, I would have known that he was up to that
kind of monkey business.”

To my knowledge, my friend was never deceived again. And you won’t


be either if you apply the following tactics:

1.  Acknowledge what you see and suspect. If you see a subordinate in the
company of dozens of your peers or visiting offices around the company
for no apparent reason, ask the people he saw about the purpose of the
visits. Then approach the suspected offender with some casual questions
about what he was doing, and compare his answers with those of the
people he visited.

Same goes if you notice that an employee routinely sends e-mail to a


wide range of coworkers in other departments. If you’re one of the many
managers who occasionally monitors your workers’ e-mail usage—which
I wholeheartedly suggest you do after informing your staff that their
e-mail should have a business purpose and that you reserve the right to
check up on them—see if you’re surprised by any names that keep pop‑
ping up as senders and receivers of his messages.

Note, too, that a trickster may take a long time establishing rapport with
someone whom he will only later use for political purposes. But you will
inevitably see a pattern of deception emerging, provided you pay atten‑
tion to what’s happening and ask questions early on.

2.  Listen for patterns and repetitions. A worker who talks too often about
morality or honesty may well be immoral or dishonest. Moral, honest
people don’t need to tell everyone they have integrity.
Black Book of Executive Politics / 39

3.  Compare statements with results. There are always small discrepancies
between what a dishonest person does and what he says. A worker may
make a show of being a great salesperson, for example, but that greatness is
not reflected in the figures he attains. Or he may claim to have great ideas,
but you discover that those ideas are never as great or as well developed
as he promised.

4.  Engage in some subtle fact‑finding and cross‑checking. Almost always,


a deceptive person will inadvertently betray dishonest intentions. He may
claim to be nearly done with planning a project, for example, but then
prove incapable of showing you what he has accomplished. Or he may
claim to have discussed an issue in a meeting, but your probing reveals
that he has lied about what was discussed or planned.

People unknowingly reveal their secret intentions if you are astute and
patient enough to ask the right questions and watch small patterns of
behavior over time. In even a short while, a number of small things can
add up to a pattern of deception and dishonest plans. There is no reason
for you to be taken by surprise.

How to Spot Deceitful People


Although I am a firm believer in the stimulating power of competition,
I am also the first to admit that person‑to‑person competition can often
take on negative overtones.

As you begin to solidify your power and build your political network,
your growing potency will often make you a target of carping from envi‑
ous—and often malicious—people who will try to intimidate you, bruise
your self‑image and imply that your growing power is of no significance.
It’s simply a fact of corporate life—something that all high‑ranking execu‑
tives have been through as a rite of passage into the executive suite.

Your best strategy—the only one, really, if you’re going to win that top
slot—is to study power plays with objectivity and learn as much as you
can. Identifying someone as an enemy gives you a chance to watch his
actions, which is far better than having him silently dreaming up plots
40 / Business Management Daily

against you. In all likelihood, he will make some mistakes and give you
the opportunity to accrue some benefits.

In the next section, let’s look at the most common types of detractors and
what you can do about them.

Self‑aggrandizers
These opponents rou­tinely exaggerate accomplishments or political clout.
At first, you may be taken in by them. They seem to be powerful, influ‑
ential, well positioned. But something does not add up, and that lack of
legitimacy in their claims quickly becomes clear.

Some years back, I knew a self‑aggrandizer in human resources who


continually made reference to the many changes she had brought about
in the company benefits package—the benefits she had proposed, the
money she had saved, the thanks she had reaped from grateful employ‑
ees. But then I noticed that the company benefits package was nothing
special; it was one of those boilerplate affairs so common at many firms.
Later, I noticed that the company president was looking at materials from
a medical insurance company and asking my opinion rather than that of
the human resources head. Of course, I saw quite clearly that the woman’s
claims were bogus.

That is the essence of how you spot self‑aggrandizers. Something is not


believable about their claims; something simply does not add up. When the
company president says “Good morning” to him in the hall, the braggart
will come by to tell you he just had a policy meeting with the company
president. You won’t be taken in if you become sensitive to discrepancies
between what a person says and what you see happening.

Perennial self‑aggrandizers are generally not taken too seriously by anyone


unless, for example, the posturer is the president’s nephew or the president
himself. You can generally pay little attention—or listen quietly—to the
person’s trumped‑up tales of glory and either forget them or mentally file
them away for later assessment.
Black Book of Executive Politics / 41

Insinuators
They engage in intrigues by playing people against each other, juxtaposing
half‑truths that seem to add up to reality but have no basis in fact. Often,
their manipulations seem to serve no political end—they are simply a
product of some quirky thirst for turmoil and intrigue.

One insinuator I knew told a female executive that the president had just
rewritten her quarterly earnings report because it was “disorganized.”
So she spent two days revising the report. When she presented it to the
president, she was astonished to hear that the report had been just fine
in the first place. When the woman confronted the insinuator, he tried to
wriggle his way out of his original claims by insinuating that the woman
had misunderstood. Needless to say, the next time he appeared at her
office door, she discounted his news.

Insinuators often possess magnetic personalities that make their concern


seem genuine. Frequently, they offer advice or information in areas where
they have no business prying. So beware of sudden “friendly advice”
with not‑so‑friendly overtones, especially from those who have no good
reason to offer it. Question their motives. Chances are, they are only try‑
ing to trip you up.

To defend yourself from insinuators, make it a practice to confirm their


reports directly with those concerned or with others who have pertinent
knowledge. The insinuator may say, perhaps, that you are using the
wrong vendor and give you the name of someone “better.” Take that
name to other people in the firm and get confirmation that the suggestion
is a good one. Or, in the guise of a friend, the insinuator may claim that
your boss is displeased with something you’ve done. Your best defense
is to go right to your boss and disclose what that “friend” just told you.
Then confront the perpetrator directly. Even if he tries to shirk blame by
saying you misunderstood, you will have sent the signal that he’s being
scrutinized. A chronic insinuator will eventually play the same card too
often and become widely recognized for what he is.

One step I’d counsel against, however, is going to others in your firm and
issuing warnings about the insinuator. It can only reflect badly on you. At
42 / Business Management Daily

best, you’ll come off looking like a tattletale. In the worst of circumstances,
it can drag you into a morass of charges and countercharges that can be
long‑running and damaging to your reputation.

Sleight‑of‑hand artists
A variant of the insinuator, this type tries to throw you off by providing
some focused, spurious information to win an immediate, strategic advan‑
tage. Just before a meeting, for example, I once had another executive tell
me: “That idea of yours will never get approved. I proposed the same
thing last year, and it got shot down.” Well, I went ahead and proposed
it anyway, and it got approved. I could smell that something did not add
up in the man’s sudden counsel, and I knew that my idea was good.

How do you spot these types? The fact is, it’s hard not to be fooled once
or twice by this type of con artist—especially if he is clever and has been
a good colleague in the past. Usually, you can spot the spurious advice
because it is designed to prevent you from taking some specific action,
such as making a presentation or signing a contract. Often, the advice
comes at the last minute and is not specific: Something is simply “wrong”
with your idea; it is sure to “make you look bad,” for no explicable reason;
it “requires more time for development.” You might be fooled once or
twice—but make sure the second time is the last.

Advantage‑seeking strategists
These types implement short‑range schemes designed to make them look
good in any situation. For them, even the most minute opportunity to
look good at the expense of others must be seized—from ordering sand‑
wiches for a meeting (she knows a better deli than you do) to writing a
contract (you’d better let her lawyers have a look at the document your
lawyer prepared).

When you’re cooperating on a project with this type of person, she says
there’s no pressure and starts off at a sluggish pace. When you follow her
lead and start slowly, she secretly catapults forward, finishes far ahead of
you, then turns in her work early to make you look like a snail.
Black Book of Executive Politics / 43

We’ve all been victims of petty intrigues like these. But the good news
is that such small wins constitute major victories only in the eyes of the
strategists themselves. No one else much cares.

Bullies
They’re simply addicted to the feeling that other people are knuckling
under. They may rant, yell or threaten. Just as often, they subtly point out
dire consequences if other people do not do as they say. In most cases, they
are simply grown‑up versions of kids who bullied other kids in school.
In many cases, I suspect, they are the very kids who acted that way and
who revert to that behavior pattern when they feel unempowered and
incapable.

Your best defense is, first, to assess their clout objectively and stay focused
on doing your job well. If the bully is your boss (which is often the case),
it will take a lot of internal fortitude to keep focused on important work.
Look at the worst harm the bully can inflict: Will he fire you? In all likeli‑
hood, he will not.

Adopt a calm, determined approach to getting your work done well.


A bully is never a good manager. He may well be reacting to upper-
management pressures by bullying people. His power is not real or
durable. By remaining emotionally detached from the threats and yelling
(it takes concentration and determination on your part), you will even‑
tually outlast a bully. After all, he has already embarked on a process of
self‑destruction in which company leaders will be only too happy to assist.

Emergency Phrases
Whether you’re meeting with hostile executives or belligerent reporters,
their attacks may leave you hard pressed to reassert control of the situa‑
tion. You can regain control in this kind of hostile fire by using the right
words in the right way.

Here are several potent phrases and advice on how to use them:
44 / Business Management Daily

■  “I would like to make a statement.” This announcement creates a


moment of silence and throws aggressors off stride. You then have a few
seconds of uninterrupted time to use as you see fit. Supporting tactic: If
you’ve made a strong statement and it seems to have been heard, call an
end to the conversation. If you are meeting reporters, simply say, “That
will be all,” and leave. If you are in a meeting, demand an immediate
decision on the issue at hand.

■  “Let me repeat what I just said.” If you’ve already responded with your
strongest statement, repeating it may be your best defense—especially if it
was ignored the first time. You sometimes have to repeat the same state‑
ment three or four times before it sinks in, especially in a situation where
tempers are running high.

■  “What do you need to give me the go‑ahead on this?” Many times,


asking people what they want, and then offering at once to agree to it,
is an instant and powerful way to win consensus. If your opponents say
your idea is too expensive, offer to do it for less. If it is too risky, ask where
the risk lies and find creative ways to minimize it. If it requires too many
hours of his staff’s time, offer to take over more of the grunt work within
your department. This approach involves some fast thinking on your feet,
but it can consistently roll roadblocks out of the way.

■  “I want a show of hands indicating who supports me in this.” This


statement can gain some startling and quick wins in meetings where it
seems to be “open season” on you and your ideas. When you call a vote,
a number of fence‑sitters will simply not go on record as having voted
against you.

■  “I’m going to do the preliminary work‑up on the project and prove


to you that I’m right.” In a meeting where you cannot gain approval,
short‑circuit the process by approving the project yourself. Once work
is in progress on any project, it often moves ahead without the need for
formal consent.

■ “What do you think about this, Paul (or Lynn, or whoever)?” Bringing
another person into the limelight is a powerful way to break the aggressors’
Black Book of Executive Politics / 45

pace, allow yourself time to think and regroup, and move the conversation
away from sticking points. It is vital, however, to make a strategic choice
of the person to whom you throw the ball.

You can ask the highest‑ranking person what he has to say; if he is likely
to agree with your position, or even unwilling to take a side, your detrac‑
tors may back down. By asking an opponent who you sense will hesitate
to enter into open conflict with you, you may be able to create a useful
schism in the forces that oppose you. Or you can pick a neutral person
who you suspect may move toward your position, thereby shifting the
tide toward supporting you.

Accompany any of these phrases with strong, unflappable body language.


Maintain eye contact with the aggressors. Remain calm and sit upright. Jot
down notes on what the aggressors are saying—while they are saying it—to
show you are in control of the situation and they are not getting to you.

When Overkill Is the Only Way


There are times when you must be extremely aggressive to win a critical
victory. You need to go all the way—pull out all the stops—to win support
in the face of overt aggression from another person or a group. You call
all your political allies and ask them for their assistance; you mend fences
with old enemies and ask for immediate support; you identify a member of
the opposition and issue a face‑to‑face challenge or ultimatum; you imply
dire consequences will result if you are defeated on this particular issue.

These are not pretty scenarios. And such tactics are to be used sparingly
in any career. In fact, using all‑out measures when less potent ones would
do makes you seem like either a hothead or a very threatened individual.
Use an all‑out assault only as a last resort—when losing a battle means
you will lose a job, forfeit a central part of your responsibilities or budget,
or suffer some other setback from which you may not recover.

Call in all your political assets. Call back some of the favors people owe
you, or rely on the clout of certain highly placed individuals whom you
have not called on recently. Leave no asset untapped.
46 / Business Management Daily

Find and attack at least one weak point in your opposition. It might be
one member of the opposition who can be swayed to your side, a central
flaw in your opponents’ ideas or plans, or a political ally who can be lured
back into your camp with the right approach or proposal.

Again, let me stress that all‑out war is rare and should not be undertaken
unless absolutely necessary. If you continually ask your political allies
for their support in emergency situations, your power and influence will
quickly erode. A key rule to observe: Your most influential political allies
are the people you should call on the least often—in those rare situations
when you have to fight fire with fire to survive.
Black Book of Executive Politics / 47

Keeping the Upper Hand


Mavericks—Should You Coddle
5
or Control Them?

T here is no doubt that creative employees are worth their weight in


gold. As fonts of new and unique ideas, they are often catalysts for a
new way of thinking. Unfortunately, their behavior doesn’t always conform
to normal business standards. Such people are called mavericks.

Mavericks pose a serious problem for managers: How can you best tap
and encourage their creative powers while ensuring they do not become
disruptive?

Here are some tactics to help you get the most from mavericks and mini‑
mize the risks:

■  Keep expectations and demands high. Although creative, mavericks


often are unable to set priorities. They’re just as happy writing a funny
spoof of an office memo as they are finishing up the report you need by
noon tomorrow. Keep close control to be sure their energy is flowing where
you need it. Tell a maverick in clear, structured terms what must be done.
And if the job has not been done right, explain exactly why.

■  Turn back work that does not meet standards. Creative people are
often best in a project’s imaginative stages and less skilled at finishing in
an organized way. If results show brilliant ideas but ultimately fall short
of what you need, educate the maverick by giving back the work and
explaining what you want. Never assign other people to mop up after a
creative person. That wastes staff time and engenders resentment.

■  Be ready to bend company rules. Any true maverick will come up


with ideas that require a certain bending of company rules and customs.
I once supervised a creative man who consistently ran slightly over

47
48 / Business Management Daily

budget and a highly creative woman who needed to spend a fair amount
of time outside the office to complete her research. In both cases, I needed
to go to bat with upper management and point out the benefits of bend‑
ing the rules.

■  Make sure the maverick stays on a positive tack. A potential pitfall of


creative, intelligent people is that they sometimes think they are smarter
than company leaders—including you. If this is the kind of maverick you
are dealing with, monitor him closely; step in the moment he begins to
influence other people to think cynically about the company or about you.
The key to managing a maverick is to keep his creative energy focused
on positive activities.

How to Know When Subordinates


Are Going Over Your Head
It can be a shock to find out that one of your staff has gone over your head
and taken a problem or concern directly to your boss. It can be doubly
troubling if you are a manager who takes pride in your ability to listen to
workers’ concerns and problems. Still, it happens to even the most sym‑
pathetic and committed supervisors.

It is vitally important to anticipate possible end runs by the people who


report to you. Being able to anticipate and stop such circumvention has
clear benefits. First, your subordinate will give you some reasons why
she was not able to talk directly to you about her problem. Second, if a
valuable worker skirts you and goes to the top, this break of protocol will
often reflect badly on him. You may even lose a needed worker who will
be difficult to replace.

For these reasons, and more, you need to be able to predict when someone
is about to stage an end run. Here’s the system I have used successfully
with my staff:

■ Listen for double talk. I always have talked to my people every day,
asking about their current activities by using direct, pointed questions.
Black Book of Executive Politics / 49

When you maintain a close, hands‑on relationship with each staffer, you
will be more likely to know when you are being fed lies or double talk.
When someone’s style suddenly changes, or he hedges about information
you are asking for, chances are pretty good that he is engaging in some
behind‑the‑scenes activities that may well culminate in an end run.

■  Build personal rapport. I use many of the tools described in Chapter 1


to make sure there is a personal connection with each individual I super‑
vise. It is harder for people to conceal their emotions if they are about to
take action against someone who has established a sympathetic, personal
relationship with them. Suddenly, a subordinate’s body language and style
will change noticeably. She may avoid making eye contact with you, may
react nervously when you are around or may suddenly grow fidgety when
a particular subject is mentioned.

If you see that happening, let the conversation stray to other topics and
come back to the one that prompted the nervous response. If it happens
again, you have found a probable area in which a double-cross is about
to occur. Zero in on it with some pointed questions. At the very least,
you have sounded out something that the staffer is hiding—duplicitous
intentions or not.

■  Look for irregular behavior. An impending double-cross is often


betrayed in this way. I once had a subordinate who regularly provided
me with memos about all his activities. Suddenly, his reports contained
less data on a particular sales region under my jurisdiction. When I zeroed
in on it, I found that a particular test product was selling extremely well.
Fortunately, I uncovered the fact that he was withholding information
early enough to foil his plot. My subordinate, it turns out, planned to
hide this from me and use this information to get a higher position under
a rival executive.

To spot an upcoming double-cross, you do not need to become a


cloak‑and‑dagger spy. You do need, however, to hone your powers of
observation and apply them consistently in your relationships.
50 / Business Management Daily

Strategies for Coping With Resistance to Criticism


You call a subordinate into your office and begin making some largely
positive comments about the way he performed a particular job. But the
moment you begin to explain your point of view, the staffer senses that
criticism is on the way. You realize that whatever you say will meet with
resistance and perhaps even a denial that your points are valid.

Such situations can be crippling for executives who want to bring about
positive change in the people who work for them. Unless people correct
mistakes, how are operations to improve?

At the same time, you must look at the situation from the point of view of
the employee. The ability to accept criticism objectively and unemotionally
is rare. Yet is this gap between manager and managed something that no
executive can breach? Hardly.

I have been able to develop and implement certain strategies that get
my criticism across in a positive and productive way. Here are some
approaches you can take:

■  Don’t open on a critical note. Start instead by embarking on a balanced


discussion of things that are going well and things that need improve‑
ment—with a stated desire to improve overall quality and have better
results next time. Example: If a subordinate developed a new product
that was not as successful as you had anticipated, don’t ask only what
went wrong. Instead, pull every stage of the process apart and engage in
a balanced, positive discussion about the process from A to Z.

■  Ask open‑ended questions. Ask your subordinate to explain his


decisions and actions so that you can understand them and help lend sup‑
port in the future. Some good questions to ask: Did he feel the assignment
was a success or a failure? What are his impressions of the most critical
problems confronting him or his staff at the moment? How would he envi‑
sion making improvements? What will his next activities be?
Black Book of Executive Politics / 51

■  Challenge your own assumptions. Perhaps you think that the subordi‑
nate failed to perform a particular assignment according to your instruc‑
tions. Or perhaps you assume that the results were poor. Rather than open
with accusations, start instead by discussing the worker’s impressions of
what happened. Again, you need to ask questions. How did she develop a
plan for what was to be done? How was that plan structured? What were
the actual results, in black and white—as opposed to your impressions
of the results?

Challenge yourself, and invite the person you are criticizing to engage in
a process of self‑evaluation. By doing so, you elevate the discussion to a
higher plane.

■ Invite the staffer to set a personal agenda for change. As the session
draws to a close, bring up the issues of improvement, corrections and
change. Invite the worker to bring you a plan for making immediate
improvements in the problems you discussed.

Pros and Cons of Hiring a Friend


If you have decided that hiring a friend always is either a very good or a
very bad idea, you haven’t given the matter enough thought.

When considering a friend, weigh the same factors you would when
making any hiring decision, but add the pluses and minuses that your
friendship might bring to the professional relationship. Here are some
steps to take:

■ Consider your friend objectively. Are you sure that she’s really the
best person for the job? How about other candidates? If your friend is
not the most knowledgeable or experienced for the job, do strength of
character and the advantages of your relationship outweigh any of her
shortcomings?

■  Follow normal hiring procedures. Make sure you approach the recruit‑
ing process consistently every time. Even if you have a friend in mind,
52 / Business Management Daily

consider several applicants. Post the job internally and describe the job
opening on your company’s Web site. That way, you’ll cast a wide net
before narrowing down the finalists.

■ Assess the nature of your friendship. Look at areas in which you


communicate well, but also consider areas of friction. It’s reasonable to
expect your professional relationship to mirror these tendencies. Prevent‑
ing problems before you hire someone can avoid both professional and
personal friction.

■  Consider the benefits—and detriments—of having a friend on the job.


Knowing that you can count on someone is a tremendous plus. But it can
also cause tension with other staff members, who may resent your close
personal relationship.

■  Weigh the political implications. Like it or not, you’ll be operating


as a team, at least in the public view. Consider the ramifications for the
political relationships you’ve already established. Is hiring your friend
worth the potential damage?

■  Build in an escape chute. Establish a mechanism for regularly sharing


views about how the liaison is going, and agree that you will terminate
the business relationship if it is not working out. If possible, bring your
friend in for a trial period and then cement the relationship if it is work‑
ing out well.

Why Picking the Right Successor Is Vital


Choosing the right person to step into your job when you move on is a
necessity today. Whether you handpick someone who already works for
you or bring in someone new from the outside, you can reap significant
benefits from selecting the right person.

On the flip side, there are harmful surprises ahead if you pay too little
attention when you choose your successor.
Black Book of Executive Politics / 53

Here are some factors that might not have occurred to you:

■  The right successor will handle most of your job while you are still
on board. If your candidate is highly capable and eager to advance, you
can delegate a lot of your work to him. Then you can begin to devote your
time to other important pursuits, such as carefully planning for your next
promotion, engaging in some long‑range departmental planning or simply
managing your other staffers with more care. You can nearly perform two
jobs at the same time—and look like a top‑notch manager in the process.

■  The presence of a strong candidate reflects well on you. The current


business climate rewards executives who can delegate authority and
develop talent. Your ability to select and groom your successor marks
you as someone who is worthy of advancement into the upper ranks of
the organization—someone who is planning for the future instead of just
striving to protect the status quo.

■  A strong successor continues to build your image. The capable work


of a strong successor goes on polishing your image long after you have
moved upward in the company or taken a new job elsewhere. If things fall
apart after you leave, it implies that you left unsolved problems.
54 / Business Management Daily
Black Book of Executive Politics / 55

Personal Patterns
of Success 6
How to Bypass Your Firm’s Salary Structure
and Negotiate a Raise

I ’ve noticed that most people have no idea how to gain rapid salary
increases or advancement. Yet there are simple approaches that can
accomplish these objectives with surprising speed.

It amazes me how many managers don’t make more of a stink over their
pay. They may complain to buddies over beers after work, but they don’t
do anything about it! Maybe it’s because inflation has been mild the last
few years, or they have a spouse who’s also a breadwinner, so money’s
less of an issue.

Then there’s the fear factor. Announcements of massive layoffs are com‑
monplace, and it seems that downsizing is no longer isolated to one
industry or one type of company. From Internet start-ups to multinational
corporations, many people are losing their jobs. And that may lead lots of
folks to cash their paychecks quietly without asking for more.

Most people believe that promotions will come as they move upward in
a line, from position to position. This system works, but slowly. Others
believe that throwing all their efforts into building departmental profits,
or something similar, will gain the attention of upper management and
lead to advancement. This system really is only a variation of the first,
and it can be just as slow.

In today’s work climate, the key is to look outside your company—even


when you intend to remain in your firm. Look at trends in your industry.
Assess how your firm is conforming to them—or failing to—and position
yourself several steps ahead of the field.

55
56 / Business Management Daily

Bottom line: Determine what position your company is going to need to


fill in six months or a year—and then hire yourself for the job before it is
actually created.

Years ago, I saw a young woman use this strategy to remarkable effect.
Hired as a sales rep for a computer and office equipment company, Jane
foresaw that more and more business users would be linking their comput‑
ers together into local‑area networks. She visited suppliers and learned all
she could about LANs. When the market opened up, Jane was already on
top of the situation. She was assertive enough to nail down the position of
supervising the firm’s network sales and customer support services, and
she increased her salary by 20 percent.

Like Jane, you’ll have to be politically savvy to ensure that you’re the
person who will take the job you’ve “created.” But with thought and
planning, the possibilities for advancement are tremendous. Consider
exploring these:

■ New marketing strategies. Is there some new marketing approach or


tool that is well suited to your products or company goals? If so, become
the in‑house expert and sell it to top management.

■  New markets. It’s not always easy to spearhead a company’s expansion


into a new market, particularly if you’re in lower management. But if you
think some new product or a variation of one already in production could
open up new profits, educate yourself about the possibilities. Then make
a convincing pitch to oversee the expansion.

■  New geographical areas. If you know a lot about an area of the coun‑
try—or even a foreign country—where your firm has not yet made inroads,
you have a golden opportunity. Even better: If you have an insider’s
knowledge of a foreign country or fluency in a foreign language, you
have a leg up.

■ New joint ventures. Consider your company’s products or services,


and the possible benefits of launching a joint venture or co-branding with
another business.
Black Book of Executive Politics / 57

Negotiating a raise also involves knowing your market value. Political


novices think that by comparing themselves favorably to their peers, they
can win the “I’m worth more than Mark in the next cubicle” argument.
But that’s a dead-end strategy. A wiser approach: Assess your worth on
the open market by analyzing salary surveys of your industry—many are
available online—and contacting trade groups or professional associations
for the latest employment trends and salary data.

Also, remember there’s more to compensation than money. Benefits play


a bigger role than ever. And you may want to discuss how you can make
a greater contribution by expanding your responsibilities, working from
home, taking a sabbatical or participating in cross-training. As a CEO, I
can tell you it’s much easier to negotiate a compensation package with a
manager who talks in big-picture terms about how he can make my life
easier or address my company’s needs than with someone who harps on
demanding another $10,000 or $20,000 a year.

How to Capitalize on Your Ideas


and Those of Others
Ideas are the bread and butter of your career. Any executive worth her
salt will have many good ideas every day. Over the years I have worked
out the following system of generating ideas, and it can work for you.

Keep a small notebook or PDA with you at all times. The minute any idea
occurs to you, record it—but don’t make any judgment about its merits
at that time. Review these raw ideas a day or two later and then apply
your judgment.

Some ideas that seemed great to me at their moment of conception looked


skimpy when objectively reviewed later. Conversely, I’ve also found that
some ideas that seemed flawed by flamboyance, lack of scope or other
problems later proved to be valuable.

The secret? Reserve judgment, and do some energetic thinking.


58 / Business Management Daily

When you have a truly wonderful idea, enhance your proprietary control
over it through documentation. Present it in a memo or e-mail, with cop‑
ies to all concerned.

If someone has appropriated an idea you haven’t documented, try first


to get back into the process by writing a memo: “Here are some further
thoughts on the marketing plan I proposed . . .” If that fails, you may be
justified in speaking to a member of upper management with whom you
have firm political ties. But it is often better to reassert your clout by win‑
ning some key project or promotion.

Giving Away Ideas


Once you’re producing a large number of ideas, one of the best things
you can do is to give them away. The ability to go to a colleague and
say, “For what it’s worth, here’s a thought I had on that problem in your
department,” marks you as cooperative and helpful, with such a produc‑
tive mind that you don’t need to cling to every idea as though it carried
a personal copyright.

Don’t overlook the political advantages of this process. It puts you in the
position of deserving support from colleagues. It also gives you leeway
to use their ideas—among other favors—to your benefit.

Using Other People’s Ideas


I’ve spoken elsewhere in this book about the crippling rules that inhibit
success. One of the greatest is the notion that another person’s idea is
always proprietary. This is simply not true. Two observations:

• A cooperative attitude—asking permission to use an idea and giving


credit where it’s due—is often the key to profiting from others’ ideas.
People are generally flattered if you are able to use their intelligence to
your own advantage. They get to share the credit for something that
works well while someone else does all the grunt work—you.
Black Book of Executive Politics / 59

• The idea that seems most valuable to you—the very solution to some
major business problem—may be of little significance to the person
who thought it up. In some cases, he may not even remember it.

What a Well‑Positioned Mentor Can—


and Cannot—Do for You
Much has been written about mentors over the last several years. A
mentoring relationship is actually a close political alliance in which the
flow of information goes more strongly in one direction than the other.
Such a relationship usually is born when a more senior person recognizes
some special potential in a subordinate and singles him or her out for
mentoring.

My own belief is that a broad network of cultivated relationships is likely


to be more beneficial than a strong political alliance with one individual.
However, if there is one powerful person who seems to take a special
interest in you and wants to further your ideas—or who is very well
placed and knowledgeable in your field—the advantages of cultivating
such a relationship may outweigh the lack of political mobility you’ll
have to accept.

You don’t have to be crazy about somebody to want to establish a close


alliance and learn from her. Sometimes an attitude of interest and respect
is all that is needed to form the backbone of a mentor‑student relation‑
ship. But in most successful cases, the relationship has been nurtured by
political cultivation.

A well‑placed mentor will speed your progress and teach you important
lessons. But be aware of the following pitfalls:

■  Picking the wrong mentor. In your eagerness to establish ties with a


bigwig, don’t link up with somebody who is not well connected, doesn’t
know as much as you expected or is about to leave. Do your homework.
You’re better off being unallied than tied to the wrong person or camp.
60 / Business Management Daily

■  Getting hamstrung. When some people get a mentor, they worry so


much that their actions will reflect badly on their ally that they fail to act
at all. As a result, they become ineffectual clones who wait for guidance.
Avoid this by finding a mentor who encourages independent efforts and
by continuing to act autonomously on most of your projects.

■  Getting reined in. You have an idea that you think is terrific and propose
it at a meeting. To your surprise, your mentor is furious because he wasn’t
consulted or thinks it’s a bad idea. Recognize that when you agree to a
mentoring relationship, you are also agreeing to a certain amount of control.

■  Blurring roles. Always remember that your mentor is your superior.


In almost all cases, it is unwise to take the lead in introducing personal
elements into your relationship. In matters of joke telling and social inter‑
action, always let your mentor establish initial guidelines. For example,
never be the first to suggest that the two of you have lunch.

■  Causing burnout. Don’t overtax the relationship by asking for advice


too often or stopping by when you have nothing, or only something
minor, to discuss. A close relationship can eventually degrade if you
become a mental burden to the person who has taken you on. Be willing
to distance yourself when necessary.

How to Score Points With the Boss


Your relationship with your boss is a barometer of your potential in the
firm. Here are some vital pointers to help you manage this all‑important
relationship effectively:

■  Format information her way. As a subordinate, one of your major


duties is to supply your boss with facts. Try to meet your boss’s prefer‑
ences. If she prefers a daily morning chat to a stack of impersonal e-mails
or memos, act accordingly.

■ Understand his personality—and your own. For the relationship to


work effectively, you may have to put a damper on your own style. For
Black Book of Executive Politics / 61

example, if you’re fun loving and your boss is always serious, superim‑
posing your lively style on the relationship can be disastrous.

■  Learn when to make proposals and when to keep quiet. Especially


in the early stages of a relationship, offer only your best and most fully
developed ideas. Spattering your boss with a buckshot hail of suggestions
in the hopes that some will hit the mark can brand you as someone who
is right only 2 percent of the time.

■ Anticipate pressures. Pay attention to how and when your boss feels
pressure most acutely. Is it when he is facing a meeting with a particular
high‑ranking exec? When he prepares quarterly reports? Offer your sup‑
port in these areas first.

■ Stand by your boss. Never gossip about his shortcomings; it’s far too
dangerous a game. If your boss is on the outs with upper management, you
will have to appraise his situation and act accordingly. In all but the most
extreme cases, defending your boss is your own best defense.

Use Jargon Wisely


Business generates new words and expressions almost every day. Although
it’s sometimes tempting to jump in and start spouting the latest lingo,
using language the wrong way only makes you look faddish.

Avoid the following:

■  Meaningless phrases. A new expression isn’t good just because it’s new.
Take an objective look at terminology and decide which words are useful.
Is the new term really the clearest, simplest way to express a concept? If
not, don’t use it.

■ Jargon that excludes people. Using a new word or acronym that half
the people in the room have never heard may make you feel stylish, but
chances are you’ll be seen only as impolite.

■  Words or expressions you don’t fully understand. Misusing a word is


a sure way to look stupid.
62 / Business Management Daily

■  Craze phrases. Will people still be using the expression in six months?
Remember when every executive seemed to fret about devising “value-
added” services to delight customers? Or how sticking an “e” or “virtual”
in front of whatever business strategy you were talking about gave it cachet
(such as “e-commerce” or “virtual leadership”)?

■  Overused words or phrases. Don’t become so enamored of a new phrase


that you use it all the time. People will stop listening.

How to Look Like a Person of Status


You’ve seen it happen time and time again: One person stands out from
the crowd as the leader. It isn’t merely a question of physical attractiveness
or stature. What is it? From my own experience, I have found that people
who dominate a group tend to do the following:

■  Remain at the center of a conversation. This is the most powerful tool


at your disposal. When it is evident that people are directing their com‑
ments to you, and waiting for your response, you are at the center of the
group’s energy. Ask questions of those around you and strike up a lively
conversation. By keeping yourself at the center of the conversation, you
remain the recognizable leader of the group.

■  Listen attentively. Many people think that the person who is talking the
most appears to be the leader of a group. In fact, the person who makes
short statements and then listens attentively will be perceived as the
group’s leader. The key is making sure that speakers are giving you most
of their eye contact, not ignoring you and focusing on others.

■  Don’t stand at the back. You needn’t be the person in the lead if the
group is walking together. You can be in the front, in the middle or even
on the side. The one place you should not be is at the back. People who are
facing the backs of all other group members are never perceived as being
in charge because they are clearly not communicating with the others.

■ Adopt receptive, comfortable body language. It is not necessary to


walk with an exaggerated, stiff posture to look like a leader—unless that
Black Book of Executive Politics / 63

is your habitual style. Comfort, not a militaristic posture, conveys a sense


of authority. Face each person directly as you converse—even if he is sit‑
ting to your side. If you are walking with a group of colleagues, placing
a hand on the shoulder of someone of the same sex as you listen implies
that you are the person in authority.

■  Maintain a slight smile. To look like a leader, you need to look interest‑
ing, interested, intelligent and alive. As you listen to other people, smile
slightly and show that you are listening and taking in what is being said.

Decorate Your Office in Leader Style


Your office should function well for you. It should look clean and efficient,
without piles of paper or other clutter. But you must also pay close atten‑
tion to your office’s atmosphere. Does it convey an air of seriousness and
efficiency? Does it look like a place where some heavy-duty thinking is
taking place?

To decorate your office so you look like a leader, follow these tips:

■  Express your personality. Your office should reflect your interests and
pursuits. Include things that appeal to you. Looking for items to please
other people only waters down the personality you’re trying to convey
and can make you seem wishy‑washy. Never be ashamed of your tastes.
If you love your classic 1967 Corvette, put a picture of it on the wall, even
if your colleagues all have reproductions of impressionist paintings.

■  Include items you understand. If you put up a painting or a framed


quote you like and know something about, you’ll create a positive impres‑
sion when you explain it to those who inquire. If you put up something
you’re supposed to like but really don’t, you’ll seem pretentious.

■  Remind people of your successes. If your biggest client sent you a


glowing letter of appreciation, frame it and display it prominently in
your office. Likewise, if you received a certificate for completing a course
offered by an industry association, hang it on the wall. But don’t go over‑
board. You want to show competence, not a big ego.
Black Book of Executive Politics / 65

Moving Up or
Moving On 7
W hen it comes right down to it, any executive with anything on the
ball has two choices: moving up or moving on. The tactics I’ve
outlined in this book will go a long way toward helping you move up.
But sometimes moving up necessitates moving on, so I’ve included some
tips to help you position yourself for success in your next undertaking—
whether it’s a new job or retirement.

Are You Promotable?


Just because you’re doing an efficient job of handling your career, don’t
assume that you’re promotable. When you get passed over for a big promo‑
tion, you’ll end up saying, “How could they do that when I motivated my
staff so well?” or “How could they do it when I just got my first invitation
to the boss’s executive barbecue?” To make it to the top, you’ve got to keep
building up the areas where you’re weakest.

Take the following test. Any areas in which you answer “no” can scuttle
your chances, so start working on them now. Ask yourself:
● Have I established a strong individual presence and profile?
● Are my spoken and written communication skills as strong as I can
make them?
● Have I kept abreast of new technologies affecting my business and
learned how to apply them?
● Have I consistently supported colleagues, taken an interest in their
projects and helped them achieve results?
● Have I demonstrated a strong ability to confront and solve problems,
or have I just skirted them?
● Have I demonstrated an ability to perform under pressure?

65
66 / Business Management Daily

● Have I consistently completed management’s priority assignments


before my own?
● Have I completed projects that demonstrated my specific strengths
and abilities?
● Have I defined my long‑term objectives, and do I understand the role
my current activities play in attaining them?
● Have I supported my superiors by cheerfully taking on work in dif‑
ficult periods and offering good advice?
● Have I achieved a high degree of political clout that reinforces the
strengths outlined above and seals the promotion?

Read the Handwriting on the Wall


As I write this, we’re going through a wave of downsizings. Companies
of all sizes, from tiny Internet software makers to multinational corpora‑
tions, have announced massive layoffs.

In many companies, layoffs hit indiscriminately. The superstars get


dumped along with the deadwood. You can play all your cards right,
make the right friends and become indispensable, yet still get booted
onto the street.

In the “New Economy,” no one’s really safe. Even you. We’re in the midst
of a shakeout in which certain companies in some industries will prevail,
while others will die off. Don’t believe it when your CEO insists that your
organization’s on “the cutting edge of technology” or “first to the space” in
creating and winning new markets. It’s all a bunch of marketing hooey.

Wise up by giving yourself plenty of options. Free yourself of worrying


about how your current employer fares in this fast-changing, competitive
environment. Think like baseball players Alex Rodriguez and Manny
Ramirez—see yourself as a hotshot free agent who can pick and choose
the best team to join.

I adopted this mind-set in the late 1970s, when one of my employers let
me and pretty much everyone else on staff go in one fell swoop. We were
Black Book of Executive Politics / 67

downsized, although that word wasn’t used at the time. I learned that
you need to grab opportunities when they come along and not get com‑
placent just because you’re getting a decent paycheck every two weeks. I
also learned that those who possess transferable skills and leave no stones
unturned in their search for new opportunities can maintain their career
momentum.

Take these steps to manage the risk of getting downsized out of a job:

■  Befriend quitters. When people leave your organization, stay in touch.


Even if you weren’t good friends before, make up for lost time now. Invite
yourself over to see their new office. Try to finagle a tour of their facility,
and meet some executives who might someday want you on board. Try
to trade business cards with everyone you meet.

■  Cultivate consultants. Before many CEOs decide to downsize, they


throw big bucks at consultants who come in, inspect the place and reas‑
sure them that, yes, it’s time to downsize. When consultants spend the
day observing your operation, make nice. Forge a relationship by asking
intelligent questions about what they do and offering ways to help. Find
out how they got the assignment with your firm and who their other
clients are. Your goal is to make enough of a positive impression so that
you can stay in touch. Consultants are great resources to call upon when
you’re looking for job leads.

■ Track your company’s financials. Spot downward trends early. If you


see sales slipping or orders drying up—and you sense things will only
get worse—network like mad. Stop skipping those Toastmasters’ meet‑
ings. Attend conferences hosted by your professional association. Be on
the prowl every day.

If despite your best efforts you’re laid off, don’t pout, lash out or crumble
into a fetal ball. Think future, future, future. First, secure the best severance
package possible so that you can start job-hunting ASAP while getting as
much “going away” money as your employer can possibly spare. That
financial cushion will give you the kind of confidence and peace of mind
that will impress prospective employers.
68 / Business Management Daily

Then, after your last day at work, move on. Don’t keep scheduling lunches
with old colleagues or finding other reasons to return to the scene of the
crime. Hanging around your workplace after you’ve been downsized
is kind of pathetic. Get the hell out of there at your earliest opportunity.
Scan the next 10 days of your appointment book and say to yourself,
“I want to fill every block of my schedule.”

Finally, don’t make any rash moves soon after losing your job. Don’t
write a scathing letter to your former boss. Don’t talk to a reporter about
how outrageous your former employer treated you. Don’t threaten to file
a lawsuit. Keep cool, think ahead and see how you feel in a week. I’ve
watched too many otherwise decent folks burn bridges—permanently—by
reacting impulsively in the days after a layoff.

The Good News About Losing Your Job


I was fired from a job many years ago. I should have been. I was doing
the wrong kind of work, in the wrong industry and at the wrong organi‑
zational level. I’ve also “lost” two other jobs. I left them—even though I
needed the income they provided—because they were not meeting my
long‑term needs.

A major turning point like a lost job always spells opportunity, provided
you develop the outlook and resilience to recognize the opportunity and
take advantage of it.

First, ask yourself why you lost the job. Was the company losing market
share and making cutbacks? Did you perform as well as you should have?
Did you head up a department whose function was becoming less critical
to the company’s long‑term plans? Answering these questions may be hard,
but you can profit from the answers if you have the courage to seek them.

Second, a lost job gives you a chance to start again. Nearly everyone I know
who has lost a job finds himself in greatly improved circumstances within
a few months. Standard comments are: “Losing that job was inevitable;
it was the best thing that could have happened to me.” “I really needed
to be pushed out of the nest.” Without a shove, these people would not
have tested their abilities and strengths.
Black Book of Executive Politics / 69

Here are some factors to consider as you take that blank piece of paper
and begin to draft a description of what your next job ought to be:

■  In which industry? Should you consider a job in the same industry? In


light of the valuable knowledge you gained in your last job, should you
make a change? What kind of company would be best for you?

■  How about your strengths, skills and abilities? Were they fully used
in your last job?

■  What other circumstances would you like to change? Perhaps in your


former job you were uncomfortable with the leaders’ style of doing busi‑
ness. Perhaps you were in a small, family‑run concern where you stood
little chance of making it to a leadership position. You can never change
such factors while you are in a job, but you can change them instantly
when you switch jobs.

Make a long‑range career plan and fit your next job into it. Where would
you like your career to take you? Do you want to head your own small
company? Do you want to become the CEO of a corporation or one of its
top‑ranked officers? Is there a particular industry that you love and in
which you want to make your mark? Make your next job fit into a plan;
don’t accept a job offer that you know is not the right one.

I’d venture to say that accepting the wrong job is far more harmful than
losing the wrong job. The former spells lost time and wasted effort. The
latter can spell nothing but opportunity and new challenge.

When to Take the Money and Run


Whether you should retire, or retire early, largely depends on your personal
financial picture. If you have planned, saved and built a good program
of retirement benefits throughout your career, you can make the decision
based on your desires and preferences, rather than financial need.

Assuming this is the case, you should ask yourself the following questions
before deciding to take early retirement:
70 / Business Management Daily

✔  How much more will my benefits grow if I wait? Ask for help from
your accountant or financial planner to determine this. Pay special atten‑
tion to the amount you have vested in your 401(k) and your pension and
how your taxes, Social Security (if applicable) and other income‑providing
vehicles will be affected if you bail out early. Also, consider the impact of
early retirement on your estate.

The bottom line: Over the next 10 years, exactly how much of a difference
in income will you experience if you get out now? Over the next 20 years?
Note: If your political alliances are strong, you can have your cake and
eat it too by arranging to work on a reduced schedule while increasing
pension vesting and Social Security benefits.

✔  Do I want to start a new business? If you’re anxious to become a con‑


sultant or start a new business, the chance to do it with a steady income
behind you offers a considerable advantage over your competition.

✔  Have I completed my work? If you’ve reached your career goals and


are in danger of becoming a lame duck, sitting pat won’t do you or your
reputation any good. However, if your long‑term aims are about to be
realized, staying at the helm and seeing them through may solidify your
reputation and pave the way for future challenges.

✔  What will I do? A common mistake is painting a hazy, unfocused pic‑


ture of how good it will be to have lots of leisure time after retiring. Don’t
forget that spending more time at home (if that’s your plan) will be a major
adjustment for you and your family. Try to build a well‑defined picture
of what you would like to do. Then plan on how to do it—whether you
will need to move, pursue a second career and so on.
ISBN 1-880024-05-5
90000>

9 781880 024058
BBEP1011

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