One of the NFL’s greatest coaching legends is former San Francisco 49ers coach Bill Walsh.  In one of his books entitled The Score Takes Care of Itself, he lays out his philosophy of leadership that helped to catapult the 49ers from the bottom of the league to three super bowl victories and built a system that won two more after his retirement.

A central theme in Coach Walsh’s philosophy of leadership is teaching.  Not only teaching players, but teaching coaches.  Not just finding people that will fit into your system, but people who are so hungry that they will eventually leave your organization to create new achievements of their own.  This view of leadership and method of coaching is even more remarkable when one considers the competitiveness of the NFL, and how much pressure is placed on coaches to reach impossible levels of success.

This philosophy stands in moderate contrast to the traditional view of a leader as somebody who boldly commands a team to achieve victory.  The leadership philosophy of the commander focuses on what happens in the heat of battle.  The leadership philosophy of teaching is built on the preparation that precedes the heat of battle, and that most people never notice.  The teaching leader does not seek to build a team where everybody does a specific job perfectly … instead, a teaching leader builds a team where each member learns how to grow beyond their current role and become more.  The cohesive team functions like a well-oiled machine until one of the team members leaves or cannot serve as part of the team anymore.  The growing team continually adapts to a changing environment and makes the adjustments that are necessary for success.

This understanding is especially important, since so much media focus is placed on business and political leaders who portray themselves as commanders who are boldly issuing orders to their army of subordinates to achieve victory.  The ultimate problem with such a viewpoint is that it focuses exclusively on what you can see … namely a flashy show that is staged for TV cameras by clever spinsters who have learned to manipulate public sentiment in their favor.  What matters much more is what remains unseen … namely the teaching, coaching, and development that turns a team of individuals into a collection of future leaders.  Popular culture does not reward true leadership … rather, it rewards the “appearance” of leadership.  In the mind of these pseudo leaders, the goal is to appear successful for long enough so that the illusion of success opens up a new opportunity before the lack of teaching and (real) leadership collapses the house of cards.

It is my sincere hope that every person reading this article has a desire to become a teaching leader tho produces real value, instead of a flashy leader who is only interested in the appearance of success.  If that is the case (and I suspect that it is), then it is best to focus your efforts on helping the people you work with to learn.  Help to expand their horizons and be open to learning from them so that your horizons expand as well.  True teachers will frequently learn just as much from their students as their students learn from them.  Teaching and learning are not (and should not be) constrained to the time that you spend in school.  Learning should be a continual activity and teaching should be a main priority of anybody who is tasked with leading a team toward success.

When people talk about the ‘will to win’ it is frequently interpreted as some form of emotional passion.  However, I must deliver a news flash that nearly all leaders (and most team members) are already quite competitive.  The “Real” will to win is a willingness to invest the work and preparation that is necessary to achieve success.  It means years of preparation for an opportunity that has not emerged yet.  It means that when your chance to shine comes, you may not have time to prepare … you must be ready when the opportunity arrives.

Teaching leaders make sure that their team is ready.  Teaching leaders help their team to prepare.  Teaching leaders do not ‘wait’ for an opportunity to come … they know that opportunity will come eventually, and the only question is whether they are ready.  Whether in business or life, always keep this principal in mind.  Be ready for opportunity when it finds you, because it will … and if you’re not ready it will walk right past you.  Teach your team to be ready for opportunity.  Prepare for success, avoid blindly waiting for luck to shine on your fortunes.  Focus on teaching, and your team will grow successful.  Do the right things, and the score will take care of itself.

 

Most people are aware of great deals and tremendous opportunities that people they know have seen or experienced throughout their lifetime.  All of these phenomenal deals share one key characteristic in common . . . somebody took action so that the opportunity could be turned into reality.  This willingness to act is what separates great achievers from the average person.

Conversely, a psychological paralysis grips many people and freezes them into stalling, waiting, and preparing until the opportunity to act has passed.  At this point, many people will begin to create justifications for their decision to avoid action.  This gives us a sense of satisfaction since we avoided what could have been a big mistake.  However, we also avoided what could have been a great opportunity.

The critical skill that high achievers develop is an ability to quickly determine which deals have the highest probability of success, and then to take action on those opportunities that are favorable.  This sounds simple, but it is surprisingly difficult to carry out in the world of reality.  Most of us gather information, get ready to act, then stall . . . and stall some more until the opportunity has passed.

The curious thing about taking action to create success is that it is not a one-time deal.  Most people who achieve high levels of success did not do so because of one single decision.  By and large, success is the result of consistently making wise decisions and taking action over an extended period of time.  It is likely that the benefits of your decisions will compound to produce greater results, but the important part is to start the ball of achievement rolling.

The other side of this insight is that we should avoid looking for the ‘one big deal’ that will make so much money that we never need to work again.  Those deals certainly exist, but they are very rare.  A much more consistent strategy for achievement is to start taking action now and remain open to opportunity as you move forward.  Always keep your future vision in sight, but focus on the next step that you will be taking now.

In the end, Aesop’s words will unfortunately ring true for most people.  However, they do not need to be a description of your life.  By finding opportunity, making wise decisions, and taking action you can consistently build achievements until a temple of success has been constructed for you and your posterity.

 

When engaged in the regular news cycle, it can become very easy to develop a cynical demeanor.  After all, there are so many problems in the world, and nothing seems to be getting better.  People who read “The Business of Life” are well aware of my concerns regarding the future of our financial and political wellbeing.  However, all of these concerns must be placed in the context of tremendous opportunities that exist, even in spite of problems and difficulty.

Consider that even the most downtrodden and poverty stricken among the people in America (or the entire western world for that matter) have more opportunity at their fingertips than approximately 80% of the world’s population.  This is not to diminish the difficulty that people experience in their lives, but rather to emphasize the magnitude of opportunity that is afforded to people by the simple nature of where they live.

The elusive aspect of this opportunity is the fact that it does not come to find you.  It will not stop you in the alley and mug you.  Nobody will randomly walk up to you in the street and hand you a bag of money.  (Or if they do, you should be very concerned about what will happen next.)  The opportunity waiting for discovery underneath your feet must be actively pursued.

This is the step in our path to prosperity where most people fall down.  Many are unwilling to put forth the effort that is necessary to achieve success.  Some are willing to expend the effort, but are afraid of working toward a goal whose achievement is uncertain.  In addition to this, there are others who become so obsessed with success that they sacrifice other meaningful and fulfilling facets of life, simply for the sake of greater material achievement.

The trick with seizing opportunity is to understand that success is much more holistic than simple material possessions, fame, or other external symbols of status.  In this way, the point of emphasis shifts from what ‘can’ I achieve to what ‘should’ I achieve?  Specifically, what am I willing to sacrifice for the sake of achievement, and what is so important to me that I will accept a lower level of material achievement for the purpose of preserving it?  In many cases, people who have families will pass over opportunities for career advancement because of a desire to avoid spending too much time away from their spouse and children.

Thus, we see that a ‘real’ understanding of success must be inclusive of both what we can accomplish with the opportunities before us, and what we choose to pursue, because of the conscious decisions that we have made about the course of our lives.  The real secret that most people fail to grasp is that our lives are evaluated by standards that we create.  Many people unconsciously adopt the standards used by their associates or the mainstream media, but that does not change the fact that each person is ultimately accountable to themselves.

We see that a world of opportunity is really set out before our feet.  The only relevant question is whether we are willing to take the necessary action to turn that opportunity into reality, and whether we have developed the intellectual and emotional maturity to direct our achievement toward a definite end and purpose, instead of a blind lust for ‘more’.

In the end, life comes down to a competition against ourselves.  The thoughts of our minds manifest into actions and circumstances.  The ability to shape this reality has always been in our grasp.  If there is one thing that any of us can do to positively impact our lives, it is to train ourselves to think and act in a manner that consistently pushes us closer to our personal vision of success.

 

Most of us are well aware of the popular statement that appearances can be deceiving.  Upon deeper analysis, it turns out that this kitchen table wisdom has more applications than frequently meet the eye.  In all walks of life, from personal to professional and financial, we should be careful to avoid being overly swayed by outward appearances.  The reason for this is because initial appearances frequently do not tell the whole story.

For every “what” that we see, there’s a “why” it got that way and “how” it happened.  For every “hot” person that is at the dance club, there is a story behind how they arrived where they are at the moment.  For every “get rich quick” opportunity, there is a sequence of events that brought this “opportunity” to your attention.  That flashy, high-paying job that everybody is gunning after may carry expectations and responsibilities that are not immediately evident.  For everything we see that looks and sounds too good to be true, there is a story or a narrative that has not yet come to our awareness.

Consider if you see a highly attractive member of the opposite sex . . . what sacrifices have they made to be so physically attractive?  It could be that the person is naturally attractive, or it could be that they have gone to great lengths to achieve a certain level of attractiveness.  It could also be that their physical appearance is a a form of compensation for greater personal insecurity.  There is no way of knowing the whole story from outer appearance, and therein lies the danger.

If you see an opportunity to become fabulously wealthy in a very short period of time, consider why it is that this opportunity is being shared with you?  If such a deal does exist (and my experience leads me to believe that they do), then why share it with a stranger?  This is why I am especially leery of financial advertisements that I see on television.  If somebody is paying to broadcast an ad on TV, there must be enough profit for them so that they an dissipate the costs of advertising.  That either means the deal is REALLY good or that it is a shill to lure people who will part with their money.  (my experience leads me to believe it is the latter)

When you see highly compensated professionals like executive vice presidents, hedge fund managers, or partners in a law firm, what do you think of?  Most people think of a tremendously high salary, and fantastic amounts of power over your subordinates.  However, many jobs such as this require very large time commitments.  The spillover effect of spending 70 to 90 hours to week working can be dire.  There are many people in highly demanding jobs who have gone through multiple marriages, have children scattered across multiple households, and must commit a large portion of their income to child support and alimony.

Ultimately, there are many people who fall into the trap of taking appearance at face value every day.  From the dating scene, to investments, to work opportunities, there is frequently more to what we see than what we see.  Each person, each opportunity, each job has a story behind it.  There is a unique series of events that have brought everything we come into contact with before us.  This sequence is impossible to determine from a simple observation of outward appearances.  This makes it easy for us to fall into the trap of chasing after an imaginary reality that is generated from a combination of outward appearances and wishful thinking.  In the end, we must all beware of appearance, since there is frequently more to the story than we initially see, and it is always impossible to tell whether what we see is really what we are seeing when we first see it.

 

There is a popular phrase in investing terminology called the ‘smart money’ . . . typically this phrase is used to describe the investors that are ahead of market sentiment.  These are the people with the foresight to sell before the market crashes and buy before the market booms.  The critical question to ask is how we can become part of the smart money?

Beliefs on where the ‘smart money’ comes from span between simply doing a little research to make prudent investments and belief in a vast conspiracy of industry insiders that monopolize all of the best business opportunities.  My perspective is that the reality probably lies somewhere in the middle of the spectrum, since getting ahead of the market certainly requires some sharp analysis.  However, I find it unlikely that it is limited to an exclusive ‘club’ since there is a constant churn of executive ‘insiders’ that fail to predict the market accurately.

One of the easiest ways to move toward the ‘smart money’ is to avoid buying into markets while they are inflating (i.e. Stocks in the late ‘90’s and Real Estate over the last few years) and selling out when they hit bottom.  The easiest way to accomplish this feat is to internalize the fact that once an investment type becomes ‘hot’ it is probably too late for you to capture the big returns.  Simple avoidance of stepping off the cliff of market crashes will catapult you a lot closer to the smart money.

The next step is to determine what emerging areas of opportunity will create the greatest gains.  This is where things become much more difficult, as it is extremely difficult to determine when down markets will bottom, and start climbing again.  One thing is certain though . . . if a new opportunity is being reported on the television, it is no longer an emerging opportunity and the ‘smart money’ is already looking for a new home.

 

In the world of business, life, and investing there are many risks present.  The traditional view of risk is the probability of suffering a loss of value on your investment.  This is a very significant form of risk, but there are other equally important factors that must be considered for a full picture of risk to be formed.

Another kind of risk to be considered is the risk that your ‘safe’ investment will produce low returns that do not keep pace with inflation or do not make you any wealthier.  Preservation of capital is a viable short term strategy, but it will produce very unremarkable results if it is allowed to dominate you consciousness.

Let us also consider the risk that you will not be able to sell your investment asset when you need to.  This risk is particularly appropriate for the people that were engaged in buying and ‘flipping’ real estate properties.  When values contracted and credit standards tightened, there were many people who owned a property that was producing zero cash flow, and couldn’t be sold without incurring a significant loss.

In addition to this, it is important to consider the risk of allowing another person to manage your investments.  The highly publicized Madoff scandal provides a testament to the implicit dangers of allowing an intermediary to do your investment thinking for you.  Also consider that this risk is not limited to theft.  Investment managers tend to charge very hefty fees for their services.  These fees usually have a detrimental impact on your long-term wealth building prospects.

Finally, there is the greatest risk of all . . . the risk of lost opportunity.  People who are afraid to act because of risking failure are passed over by countless opportunities for gain.  As human beings, our perspectives are more heavily influenced by what we can see and touch.  Conversely, we tend to ignore or disregard that which we cannot directly see or feel.  Lost opportunities are unknown to the person whom they pass over, and as such are not considered.  However, opportunity is where the big gains of business, life, and investing are found.  It is critically important that the light of each person’s consciousness be allowed to shine on opportunity before it disappears into the darkness, never to be seen or heard from again.

 

In the ‘Winnie the Pooh’ series of books and stories, there is a character named Eeyore who is famous for being down, dour, and gloomy.  In a typical characterization, Eeyore will be standing below a rain cloud with no desire to move because he believes the rain will just follow him wherever he goes.  In the context of a story, this type of behavior seems silly and humorous.  However, it is the exact behavior that many people exhibit when it relates to the ability to accomplish their goals.

For some strange reason, there never seems to be a shortage of reasons that people cite for their perceived failures.  In addition to this, all of the excuses conveniently tend to be somebody else’s fault.  How easy is it to drop into a slumping rut with excuses like: The economy is bad . . . my boss is a jerk . . . there is no opportunity . . . politicians are crooks . . . and, and, and.

Even if the economy is bad, there is always opportunity present for people that are astute.  Even if your boss is a jerk, there are bosses out there that aren’t jerks . . . especially if you are your own boss.  If you can’t see opportunity, that is probably because you aren’t looking hard enough to find it.  It is likely that a large number of politicians are crooks, but complaining about it won’t improve your life one bit.  Excuses and blame are crutches for weak minds that allow them to dismiss the notion of personal responsibility for their circumstances.

Each of us posses the ability to take positive control of our own actions, regardless of what is happening around us.  Because of this, we have the ability to steadily shape our circumstances.  The only barrier standing in the way of this great ability is the “Tao of Eeyore” that keeps many able & talented people sulking with slumped shoulders.

 

John Kennedy described a crisis as the simultaneous existence of danger and opportunity.  This understanding provides a very accurate description of the current financial crisis that is causing turmoil in the markets . . . it is an opportunity that is riding on the dangerous wind.  To those who are prepared, the opportunity can be very great and to those who are unprepared, the danger can be immense.

We have already seen the danger from the recent financial collapse, and are just beginning to see the opportunities.  One opportunity that we are seeing now is a ‘flight to quality’ that has resulted in treasury bills with yields very near zero, creating extremely low fixed-rate mortgages for those who can qualify.

Another opportunity on the rise is income real estate.  Since the credit collapse has pushed down prices, there are many properties available to an investor that is willing to take action.  When this is combined with the relatively constrictive credit standards most banks are now adhering to, and the high likelihood that interest rates will increase in the future, it is very likely that rents will be increasing.

There are definitely dangerous seas to weather though.  One such danger is the looming specter of inflation.  While it is true that the credit contraction has cause prices in many sectors of the economy to contract, it is also true that the Federal Reserve has significantly increased the supply of ‘high powered money’ in the economy.  Once credit markets normalize, that extra money floating around in the economy will result in dramatic price increases.  (Flat Output + Growth in Money Supply = Inflation)

One possible remedy to this inflation is for the government to pull the excess money out of circulation.  Unfortunately, this would create a rapid increase in interest rates that would have a high likelihood of collapsing the economy back into recession.