BigBlog

Everyone’s probably seen the pictures of George Dubba having shoes thrown at him by now. 

On the morning of the news breaking I was having breakfast at a roadhouse café at Eaglehawk outside of Canberra and we were laughing at the fact that even though two shoes were thrown at the President, none of his security detail jumped in front of him. 

The cook, one of those wisend characters that such roadhouses seem to create, gave the best response – “Why would they? After all which Secret Service agent would want to go through the rest of their career being known as the one who took a shoe for the President?” 

Loved it!

2009 – where did 2008 go? 

It’s day two already and I bet some of those New Year’s resolutions are already broken by some. One of mine is not to lose my wireless modem while moving again (having moved my business to Canberra) – it’s so nice to be back on line.  

One of the good things about the new year is the chance to set some targets for the coming twelve months; something to aim for. For me it’s a busy time as I work with friends setting targets and preparing for coaching them in their businesses and personal areas throughout the year. 

For those who struggle with goal setting (not a term I personally like) here are some tips that might help you in your journey to achieving the things that are important to you. 

1. Set the target: sounds like a no brainer, but how can you aim at something unless you know what it is you’re aiming for?  

I normally look at 5 Area of Life_© when setting my targets – Family (those closest to us), Health (emotional, physical, mental), Security (work, $, future etc), Personal (self education, personal development, spiritual) and Spheres of Influence_© (friends, associates, clubs, committees etc). 

2. Focus on the Today! not the big picture: Once you know what it is you want to achieve simply ask yourself each day - "What is it that I can do, right here, right now Today!, given everything that is happening in my life right now, that will allow me to take one step closer to my target" _©    

By focusing on the Today! we concentrate on those small, achievable steps rather than the one large, sometimes frightening, target we want to achieve. We focus on what we can do.  

For instance, one of my targets is to run 10km in 50 minutes by the end of the year. Fact is I won’t be able to run that speed for a while. In training, some days I will be able to get close while on others, because of various reasons, I won’t even get within cooee. But each day, my target is to do the best I can on the day – even if that means I’m slower today then I was yesterday. 

The secret of this approach is to just do the very best I can do each and every day.  

It also means that I don’t beat myself up for not achieving my ultimate target, but allows me to recognise that I did achieve something – which is the third step. 

3. Recognise your achievements – every day: One of the things I seen most people do when chasing a dream is to forget to recognise their achievements and to focus too much on what they didn’t achieve (how depressing!).

At the end of the day, instead of looking at what you didn't achieve, look at what you did do - after all, if you have done the very best you can on any given day then that's all that can be asked of you - recognise it as an achievement. 

The people I coach all write down their achievements in each of the 5 Areas_© every night (I also get them to do this at the end of each week and each month). That way they have a constant reminder that they are Achievers and are working their way towards their bigger targets.

This approach is so much better for our self-belief than focusing on what we failed to do each day.  And it doesn’t matter how small the step is; it’s still an achievement.

After all, one small step each day of the year in one Area of Life_© will place you 365 steps closer to your dream at the end of the year and that’s got to be better than no steps at all. In the 5 Areas_© that equates to 1825 steps – now that’s something to celebrate.      

4. Review – am I on track?: The final stage is to look at what I’ve achieved and assess what it is I need to do from this point on to reach my bigger target.

The minimum I do this is monthly as this allows me to set the target for the next month. From there I can set the weekly targets. From there I’m back to step 2, the daily targets. 

All success in 2009. Go on; make your dreams a reality.  

_© Today! Seminars 2002.

Following the Recession blog, I have been asked how someone on a self managed fund should react to the current economic situation – given the negative returns being experienced in the share market. 

The difficulty in  providing an answer to this is that everyone’s situation is different; so every person requires specific guidance based on their personal circumstances – which is why I always advice people to seek professional, independent and qualified financial planning advice before doing anything with their finances. 

Nether-the-less, here are some tips that might help you in making a wise decision: 

1.      Don’t panic: people often make financially fatal decisions when panicked. I have seen people lose their whole life savings simply because they acted first without getting all the facts and investigating their best options. Don’t be caught out by the “if you don’t sign now you’ll miss out” option. If it’s good today it’ll probably still be good tomorrow.

2.      Take a long term view: look at your accounts and ask, “Is the money I’m losing coming off my principal or the interest I’ve earned on my principal?” Losing off your principal means it is coming off your money. Losing off the interest means you are losing on the banks money. Long term what is the interest earned on your investment – has it and will it continue to grow long term? The long term return is usually (not always) a better indicator of the safety of your investment log term. Remember, downturns don’t last a lifetime – the results of bad investment options do!

3.      Can I cut back on my drawings for a short time?: Most economic downturns are temporary; maybe lasting 18 to 24 months. Can you cut back or delay your spending for that amount of time until you can again start earning higher returns on your investments? If you don’t have one, it might be a good time to do a budget and plan ahead.

4.      Check the fine print: Read all the terms and conditions. Too many people end up being locked into high fee, high penalty investments simply because they didn’t check the fine print. It means they can’t move if needed, pay more than they should or don’t earn as much as they need. Often that’s money down the drain.

5.      If it’s too good to be true, it probably is: If the returns being offered seem way over the top of current market rates, then chances are it may just be too good to be true and could end up costing you more than you bargained for. It’s amazing that even today, with all the media attention it gets, people are still conned by email or internet scams or unscrupulous investment promoters; all promising amazing returns or “guaranteed” above market earnings. Chances are you are better off throwing your money out of the window of a moving car and hoping you will get your money back as putting your money into these scams. These vultures rely on one principal – there’s a sucker born every minute!

6.      Do your homework and assess the risk on return: As a rule, the greater the return, the greater the risk. What most respectable investment advisors should tell you that on average shares can expect a negative return 1 in every 4*  years, property once every 1 in every ten*  years and cash negligible* years. Higher return markets can have an even higher rate of risk, even to the point of losing their total value overnight (Just ask anyone who invested in companies like Pyramid Building Society – yes, 15, 20, 25%+ returns sound good, but really!). Before investing in a riskier investment ask yourself, “Can I afford to lose this money?”

7.      Set your limits and establish your options before you invest: Ask yourself, “What will I do if ….?” Regularly review these options – annually at the minimum or whenever you have a major life event. Plan ahead and help yourself avoid panicking when things do change.

8.      Remember, by the time you read about a hot tip, chances are so has everyone else: don’t be caught out by those “get-into-this-now” tips – seek independent advice and do your homework.

9.      Get independent advice: is your advisor linked to one particular fund or investment type or are they truly independent? Watch out for advisors who are directly linked to the investment you are making – for example, I’ve seen some property investment sales pitches include promoting their own finance advisor and property valuer, and financier; each with a stake in your sale (of course this is all made to make it easy for you to get into debt). Do they provide a range of investment options? What upfront, ongoing and exit fees will you pay? What commissions or trailing commissions will the advisor receive on the products they are selling or do they receive one set fee or no fee at all no matter which product they sell? Are they providing advice that will give you or them the best return on your investment? Is it better for you to pay an upfront fee rather than paying commissions etc? Check around and choose your advisor carefully. Check their credentials – are they FSRA accredited? If not, steer clear.

10.  What will the cost to you be if you do change your investment strategy: often there are penalty, exit or entry fees payable whenever you change investments. Sometimes what you loose in fees outdoes the cost of staying put long term.

11.  How long will it take to recover those lost fees etc if you do change strategies?: How quickly it takes to recover your loses (all fees, charges and lost interest etc) and return to your current position is the starting point for choosing to change strategies. You then also have to assess what the growth potential is over time. You may find your current strategy, while losing short term, is still a better option once you look at all the costs and long term returns involved.

12.  Would you be better off letting someone else manage your investments?: This is one way to avoid the emotional attachment to any decision making you have to make in relation to your retirement funding. There are many low cost, good return superannuation funds available to look after your money. Generally I have found that the industry superfunds tend to have a lower fee/ higher return position than their retail fund manager cousins. After all, why spend your retirement worrying about your investments (which is a full time job even for the professionals – and even they don’t get it right all of the time)? Many of these superfunds now even let you change asset classes and portfolio options on a regular basis with no fees attached. This still gives you a degree of control over your money without the day-to-day worry. 

* Source: “Frontier Investment Consulting”

Hope this helps. Probably gives more to think about than providing direct answers. Talk to an accredited professional – they can assess your position and tell you what’s best for you and your needs.  All success!

Over the years I have had the privilege of working with some magnificent, inspirational people; most of them being just ordinary people who have dared to challenge their paradigm of life and change.

The joy of what I do is that every day I am inspired by how, when given a chance, the guidance and support, these people grab hold of an opportunity to change, to make a difference in their lives and run with it.

THE HERO
Rudy was a hero – not necessarily a winner or a star.  He was a hero because he had shown that dreams can come true and that being an achiever does not have to mean coming first or being the best or being a star. 

For winners, they can be beaten, and a star may burn bright for a time before fading.

First the good news; leading economists have successfully predicted 20 of the last 4 recessions.

Now the bad news; they are predicting the 21st.

(Before I go any further, and to satisfy some government regulations, I am not a financial advisor, property development professional and the opinions in this blog are just that, personal opinions. Before anyone takes any actions that could affect them financially, they should seek the advice of a relevant industry professional). Can’t be too careful here.

Please forgive me for seeming to make light of the effects of a recession or economic downturn (I'm not). I know that in every economic downtown people suffer, jobs are lost, businesses can close down, people can go bankrupt, lose their homes or retirement funds. Just two weeks ago I had the extremely unpleasant task of making the members of a magnificent team redundant, for no other reason than the corporation said that hundreds of jobs had to go, such are the machinations of a major corporate identity. In the past, economic downturns have seen me lose jobs and close businesses I had struggled to establish. It’s not easy.

But from every period of economic turbulence there appears great opportunity that calls out for the brave soul to take hold of and run with. And for those who see the opportunities it becomes a question of, “Recession! What recession?” It becomes a matter of perspective.

Just look at how people are responding to the current turmoil happening in Australia. I would suggest that 90% of the problem has nothing to do with reality – it’s mainly to do with people’s perceptions of what is happening.

And when enough people start to say that things are on the nose then the greater perception takes hold that there is something smelly happening. Perception fulfils its own destiny and becomes a reality.

Just look at these few issues that seem to carry a lot of weight in the media and look at how perception is different to reality.

Perception: That money in banks is not secure. The truth is that nothing can be further from the truth. Australia’s banks are in a reasonably strong position. The perception is money is at risk. The result is that people panic and feel insecure. Yes, there is some downturn in returns due to exposure to the international funding issues and credit is hard to come by (which may not be that bad a thing), but that doesn’t mean we will lose our money. After all, all Australian banks are required to keep a certain amount of money in reserve just for this very reason.

So what happens when people panic? The government reacts, businesses and people go into kneejerk response mode and next second we have another, unpredicted, crisis. The self fulfilling prophesy becomes a reality of sorts.

Perception: Now is a bad time to invest in property. The truth is property prices are lower in some areas than they have for a while, interest rates (when measured against long term trends) are reasonable, rents are high and vacancy rates are low; so why wouldn’t anyone look at investing in property?

As an ex-bank manager in mortgages the problem isn’t the price of housing or the level of interest rates. It’s a matter of affordability.

It used to distress me to see people knocked back by my bank heading off to another lender to get a loan when I knew they couldn’t afford the loan if rates moved up. They were flying that close to affordability. (And boy, did you cope it when you would tell them they couldn’t afford it). I’m telling my kids to buy – right now if they can.

Here is a tip. If you want to know if you can afford to buy, ask your bank to calculate your loan affordability with a 2% higher rate of interest then they currently offer. Why do that? It shows you where you are positioned should rates go up, which is what has caught so many people these days.

Of course, it should go without saying, but good credit/investment advise is always worth seeking before making any investments like this.

Perception: I have to stick to a secure job. The truth is that there is no such thing as job security – as people tend to think of job security. Companies do and will lay off staff if they need to at a drop of a hat.

The reality is that when people talk of job security, what they are really talking about is income security. (Robert Kiyosaki of Cash Flow Quadrant fame talks about income security as a key strategy for life).  Solve the income security problem and job security becomes less of an issue.

The key? I have worked with people from all levels of income, from long term unemployed onwards. The key to change in every person’s life that has changed is asking the question: “What have I got to do in order to secure my income for the future?” More education? Different job skills? Establishing a savings plan or doing a budget? Changing jobs or even careers? Finding another income stream? Investing? Personal development? Coaching? Going into business for yourself?

The truth is that income security only comes about by the actions I take to change a given situation. Even $5 a week saved and set aside can make a difference. Cutting back on spending and getting rid of credit cards, paying them out etc can make a difference in improving cash flow.

Economic downturn is not easy for anyone. People are and will hurt. I have found though that even the worst of times in my life have had a point of turnaround. That opportunity presents itself when I least expect it and that if I take the time to look at what I need to do to change the situation, to prepare myself to take advantage of situations when they come, to be open minded when the opportunities present themselves, then, and only then, can I look recession in the eye and say, “Recession! What recession?”

All success and make your dreams a reality.

Hi everyone, sorry I’ve taken some time in getting the next blog online. I was going to publish a blog on the recession last week, but with the loss of my father two weeks ago it’s taken me a bit of time to get back on track. (The recession blog is being posted straight after this one).

The loss of someone you love tends to focus you on the important things in life – important things like family and friends – after all everything else seems to pale to insignificance compared to those.

My Dad and I weren’t that close these past few years, more my positioning than his. My Dad was one of those people to whom life throws a curve ball and just keeps chucking them. In some ways life let Dad down; but he never let life down. To him the important things were his partner, his children and the people he cared for, especially in his work as a hospital orderly. He had a heart bigger than Pharlap. And he loved his Sharks (Cronulla Sutherland) rugby league club. And when Dad grew a rose he grew a rose!

While funerals are generally considered a sad event, in many ways Dad’s funeral was a celebration of a simple man who shared his life with others in a big way. And it was a reason to bring the family together again – a real positive. Which is the point of this blog.

I spend most of my life working with people in their personal life and in business coaching them towards the targets that are important to them. And sometimes I find we are living in a world where it is easy to lose track of people, we are so busy and our lives are so full. My resolve is to ensure that in my busy life I make more time for my friends and my family; to make certain I just touch base with them on a regular basis and share time with them.

In our busy lives, imagine spending just a few more minutes of each week touching base with those people who are important to us, to tell them that we care about them.

I missed the last few years of my Dad’s life, and missed out on a chance to tell him one more time “I love you”. By the time I tried to find him (I had a strange feeling some months ago but couldn’t locate him) it was too late. Maybe there is someone in your life with whom you have lost touch but have thought you want to find them – even just to let them know you think of them. My advise, go, see if you can find them – don’t leave it ‘til it’s too late.

Life is too short to miss out on any of it.

Remember; live like there is no tomorrow, dance like there is no-one watching, love like there are no broken hearts, smile like the sun that shines above every cloudy day, strive to achieve like there is no failure and give some of your self so the world can share in the brilliance that is you.

To my Dad

Colin

Leadership!

Since time immemorial people of all races, creeds and social standing have followed the call of great leaders.Nations have risen from nothing or have been conquered; seas have been sailed in voyages of discovery into the unknown, or for trade; people have given their lives or been given life; ideas have been acted on and history made—all at the behest of a great leader; King Richard I, Queen Victoria, George Washington, Abraham Lincoln, Winston Churchill, “Weary” Dunlop, Sir Arvi Parbo, all names synonymous with strong, positive leadership.

Conversely, acts of cruelty, deception, war, death, destruction, atrocity, famine and murder have been carried out by people following a leader who has led them on the wrong path. One only needs to recall the names of Hitler, Pol Pot, Stalin, and Jim Jones of the Jonestown mass suicide infamy to see that the charismatic qualities of a great leader can be used for ignoble purposes.

In today’s world, corporations have been born and destroyed by the implementation of qualities and ethics endorsed by the leaders of those companies. Names like those of Richard Branson, Lee Iacocca and Bob Ansett stand out against their ethical opposites such as Bernard Ebbers, Kenneth Lay and Christopher Skase.Many books, thousands of words, have been written in order to describe the illusive characteristics that make a leader great.

Anyone wanting to know how to be a great leader can borrow them from any local library. Libraries are filled with biographies of great leaders – biographies that expose their actions, their achievements and their skill at making the impossible possible.

Yet somehow, when it comes to leadership in the workplace we seem to have missed the point of what makes a great leader great. So often the qualities that make a leader even mediocre seem lacking in business and the community in general.

Some would even suggest that many of our current leaders are more concerned with their multi-million dollar payout than with the effect their decisions have on the people in their business and society at large. Just look at the effect the decisions like those of the Lehman Brothers leadership has had on the world.

Yet poor leadership doesn't just happen at the top end of businesses. Take an example of a recent restructure in a major company. After announcing that there would be major redundancies the senior leadership then went into a virtual cocoon; failing to communicate (except for one or two emails - a totally personal touch don't you think?) with their staff in the weeks (not days!) between the announcement and the actual event of laying staff off.

The result was to have a group of staff blindly wondering about their future, guided only by rumour and their emotions. Even when the announcements were made their was silence from the senior management.

What would it have cost for the senior management to walk around and, during the weeks leading up the the sacking of so many staff, letting them know what is happening (even to know that there is nothing happening is news to those whose lives are placed on hold while wondering about their future)? Or what about walking round to each person in the group and touching base with them before they leave?

A true leader would have done that!

It may not have been easy, but sometimes it is the simple things that show the true qualities of a leader. It is simple things - like touching base with their team members, of being there with them in a difficult time, of sharing the bad, and not just the good, with them - that distinguishes a great leader from a poor manager.

So, what are your experiences of good leadership or poor management?

Who inspires you as a great leader?

What do you look for in a great leader?

What annoys you most about bad leadership?

Do you think there is a difference between being a leader and being a manager?

I look forward to your comments.

Copyright 2008 TODAY! Seminars

Hi and thanks for taking the time to read my blog. Hopefully, as time goes on, I can provide you with some points of discussion.

As a speaker I am constantly looking at gaining other people's opinions on the various topics I talk about; mainly Leadership, business deveopment (small & large), personal development and sales.

You can always check out our web site for full details of who we ae and what we do.

 I look forward to hearing from you.

Regards

Colin