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Archive : December 2013

By The Leasing Group

Cultivating Mutual Trust

The typical lease agreement is six pages long, laced with legal terms and conditions spelling out the obligations of each party! This document is the product of a team of lawyers determined to disclose every suffocating detail.  Like so many legal contracts, a lease is best read late at night by those in search of sleep.   

 

Our lease is no exception.  It is well-crafted, specific and thorough, as it should be.  But, in spite of its importance, I can’t remember more than a handful of clients having ever read it. 

 

Do our clients lack the qualifications to read and ask clarifying questions?  Do they lack the time and energy to study our lease before they sign?  Are they intimidated by the legal detail?  With so much at stake, wouldn’t it make sense to have an attorney review every paragraph?  Instead, our clients typically flip through the pages in a matter of seconds, and then ask…“Is there anything in here I need to worry about?” 

 

Here is why:

 

  • Our clients know we will honor the terms we agreed to verbally.

 

  • Our clients know we will not add hidden fees and charges that change the economics of the transaction.

 

  • Our clients know we will not place liens or encumbrances on unrelated business assets.

 

  • Our clients know our early buyout provisions are fair and without penalty.

 

Trust takes time and effort to build over years of doing what we say we will do.  In the short term building trust can be costly.  But, long term nothing matters more.   Trust strengthens every relationship, while reducing the time and energy spent on doubt, fear and suspicion.  Cultivating mutual trust is the only way to do business. 

By The Leasing Group

“Know it alls” Not Wanted Here

Jack Welch retired as General Electric’s Chairman and CEO in 2001 after a twenty year run, over which GE enjoyed unparalleled profitability and diversified growth.  During his tenure Welch was notoriously known for pruning the company of 10% of its lowest performing managers each year.  Investors and peers alike considered his bold honesty and decisive courage his greatest leadership qualities. 

Today Welch continues to write, teach and advise managers on the subject of leadership.  Below are the most destructive qualities he finds in POOR leaders: 

  1. A “know it all” attitude coupled with failure to listen to other points of view.
  2. Distant and detached behavior, often remote and un-engaging.
  3. Insensitive, hurtful and bullying comments directed to subordinates.
  4. A reluctance to make difficult decisions for fear of making mistakes.

On the flipside, Welch points to the shared traits of SUCCESSFUL leaders, qualities worth learning.  This list includes good listening skills, sensitivity, personal engagement, courage without arrogance and continuous self awareness. 

I’ve never seen or heard Welch include an Ivy League education, a high IQ, charismatic speaking ability, uncompromising personal ambition, overflowing self-confidence, or a blue-blood pedigree?  These qualities seem conspicuous by their absence.

By The Leasing Group

Thoughts on Full Employment

I will admit it.  Surfing the C-Span channels for economic debates on policy affecting employment is not everyone’s definition of fun.  Professor X wants more stimulus while director Y rails over failed stimulus of the past.  Senator Z argues in favor of fiscal constraint and a balanced budget while a panel of congressmen and women question the wisdom of lower spending during an anemic recovery.  Before long my head is exploding with conflicting arguments. 

 

What are we to believe amidst so much chatter, where every point of view has its supporters and detractors?  Is it possible to determine truth from fiction, given the arguments and information at our disposal?  After sorting through the pros and cons, I’ve assembled a list of recommendations.  While far from perfect, they seem worth considering.      

 

1.  Achieve energy independence.  Isn’t it time to put thousands to work by easing regulation on energy exploration, production and transportation, if we can do this safely?  The benefits….new jobs, 100% energy independence, millions of dollars pumped into our economy, and freedom from Middle East terrorist influenced oil.

 

2.  Train for tomorrow’s jobs.  How about creating a new class of interest-free student loans available to fund training for the high tech jobs of tomorrow, the jobs crying for talent?  A four year college degree is not for everyone.  Educating the lawyers, doctors, engineers, artists and psychologists is fine, but we must also train computerized machine tool technicians and digital press operators.

 

3.  Tax policy to reward “Made in USA” employment.  Bring the overseas manufacturing jobs back home and give them to anyone who wants to work.  With focused favorable tax incentives directed to the right companies, we can do this and employ Americans in the process.  What’s standing in the way? 

 

Is full employment possible?  Is a living wage possible?  Is a revitalized middle class possible?  I think so.  It’s simply a matter of agreeing on a job creation policy and implementing it.  No excuses acceptable.