Lately I have run into several  managers and entrepreneurs of small and mid size entreprises who were cheating on their wife/husband. The common denominator amongst them: the company turnover was suffering and downtrending.  The phenomena of the cheating manager who then performs poorly, caught my attention so much that I even wrote a book on the subject a few years ago (The Ethics of Excellence).  If you want to manage a small and mid size company successfully, try to maintain a high degree of personal integrity and remember that, in the end, cheaters never win.  If you have junior managers in your company who are cheating on their partner, beware: they'll cause you a great deal of trouble.  This tip may seem unpopular but, believe me, it could save you a great deal of money.  Paolo Ruggeri     

1) Accept responsibility: start by viewing yourself as the cause of underperformance or your staff's lack of motivation. If you think that way, 92% of the times you’ll be correct. Leadership and motivation starts with you. 2) How are you on the emotional side? Are you energetic, enthusiastic, striving to reach great goals? Facts are: if you, yourself, are not enthusiastic or cheerful, then it's very unlikely that you'll be able to motivate anyone else.  3) What is your goal? And is there something in it for the people who should be following you? What are the rewards (tangible and intangible) for them if you win? 4) Work on people's strengths and they’ll get stronger. If you work the other way around (concentrating on people's weaknesses), they will get weaker and weaker. In personnel management you get what you give. Study the "law of attraction" and apply it. 5) Be sincerely interested in your people. Do not treat them as employees, treat them as individuals. Be interested in them, their families, their kids, their aspirations. Remember: they are not employees, they are living beings like you. 6) Demonstrate competence. 7) Acknowledge results and good performance as much as you can. 8) Coach your people often. A real leader is someone who brings their followers to achieve results. It is not the other way around. 9) Maintain a high level of personal ethics. Maintain a high integrity, not only at work, but also at home. 10) Always be ahead of the crowd. The job of a leader is to create the future and not to be stuck in the past. And remember: if you want things to change, if you want your people to be more productive and more engaged in the company, the first one who has got to change is you.  Paolo Ruggeri

Earlier this month the European Commission announced that Slovakia, a tiny country in Central Europe, will be joining the euro next year.

Some of the reasons behind the economic success of this once poor country:

Wise reforms made by Government: private pension funds were set up, retirement age was raised and social spending was cut. This, in turn, allowed Slowakian officials to cut taxes and introduce a flat tax (17% VAT, 17% Corporate Tax, 17% Income Tax).

Low taxation spurred foreign investment and an impressive growth (+10,4% GDP last year alone).

Perhaps it is time that some of the governments of Western Europe follow suit as well: cutting social and government spending in order to reduce taxes in the end creates much more wealth, not only for the already rich, but for the citizens themselves. Well done Slovakia!

Paolo Ruggeri

From last week's Newsweek:

Bottega Veneta (purveyor of 1,350 USD Sandals and 18,400 USD leather tote bags), just reported first quarter global sales are up 31,5% (that's on top of a 49% growth in 2007).

Prada: reported its best results ever for the year that just now ended, with profits up 66%

Hermes: first quarter 2008 sales up 13% - including a surprising 23% jump in the United States, which is supposed to be in a recession...

Sexy (catering to the intangible needs of customers) or Fit (that is to say: giving the customer real value for their money or low cost/budget), both areas of the market keep growing. Everything else is shrinking. 

Paolo Ruggeri

Over the last couple of days I was checking out some personnel analyses and I realized the importance conscientiousness has in personnel interview and hiring decisions.

"Conscientiousness", in final analysis, is responsability. People who score low on conscentiousness tend to be superficial in their jobs, pass off responsibilities, and are seldom very accurate. But, perhaps most important, their supervisor often ends up having to step over or around them, because they simply will not accept full responsibility for their assigned jobs.   People who score low on conscientiousness are one of the greatest sources of stress for business owners and managers. It is better to check people for conscientiousness before you allow them into your organization. You'll save yourself a great deal of pain and suffering. Paolo Ruggeri

Human capital is the basis of economic growth today.

Modern companies are like icebergs. The part above the water comprises the tangible (visible) capital of the company: buildings, equipment, machinery and even the cash on hand. Below the water we have the intangible (invisible) capital of the company: the knowledge the company possesses, the degree of engagement and enthusiasm of the employees, the internal climate, the reputation it has on the market.

Today the intangible capital is key. A company may be very strong on the tangible capital side, but if it is weak in intangible capital, it will struggle on the market. A company's people are the true owners of the intangible capital of the company: if you don't know how to manage them, if you aren't able to engage them in the company and keep them enthusiastic about what they are doing and why they are doing it, you'll encounter a lot of resistance on the market.  To win these days, you need to work on the intangible capital of your company.  Paolo Ruggeri

Hello Friends,

This blog was created in answer to the requests made by my many non-italian friends and customers to stay in touch and also for them to find useful presentations about the leadership and management of personnel.

In the next few weeks I will follow up by posting many additional materials. The english translation of the book The New Leaders has already begun and soon it will be available for download. I'm sure you will all enjoy it. Paolo Ruggeri

Here you can find the PEOPLE AND LEADERSHIP slides I used in my presentation at the Best Western Spring Conference in Barcelona. Attending was a real pleasure for me. Best Western, as far as I am concerned, is a great company made up of great people.

Feel free to use the slides any way you want, edit them, use them as they are, etc. They are yours to use.  To contact me (for further presentations around Europe and in the US, or to receive additional materials or information) please fill out the form available here http://www.paoloruggeri.net/pagine.asp?idp=97  

Paolo Ruggeri 

As the Best Western Spring Conference 2008 is approaching, I wanted to share last year slides with you about Sexy and Fit and the fundamentals of leadership. 

Duing this year's presentation (Barcelona, April 17th) I will cover change, leadership, motivation, and what it takes to involve a group of people in working toward a common goal.

Best Western is a great organization made up of excellent entrepreneurs and, most of all, of excellent people.

Paolo Ruggeri