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Kevin W. McCarthy

The Professor of On-Purpose

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Business

Define Humility

May 28, 2016 By kwmccarthy

The On-Purpose Proverbs are short bits of wisdom that I’ve been writing for over a decade. I keep saying I need to put them in gift book format. But for now, here is one of my favorites about how I define humility for many of my clients:

Humility is knowing self relative to God and understanding which is the greater.

A new friend/colleague asked me to pray for the CEO of his company. The business has been widely successful in recent years with millions of people’s lives touched by their products. Such massive growth, then crisis and now a more stable growth pattern has been a roller coaster of a ride.

My entire life and career it seems I’ve been around CEOs. As a kid I was blessed to attend Shady Side Academy in Pittsburgh, PA. (Trivia: I was the last class president when it was an all-boys school.) Many of my friends’ fathers were the Presidents, CEOs and/or Chairman of the Board of major corporations. When you see a CEO running around the house in his underwear asking his wife where she put his pants one naturally learns a different sense of the humanness of the person relative to the power of the position!

In my career I’ve continued to work with CEOs and business leaders of billion dollar businesses and brand new ones. Experience shows me that leaders who have the kind of humility described in this On-Purpose Proverb tend to make wiser decisions. In addition to holding themselves to a higher standard, they tend to decide based more from such strength of self-awareness and knowledge. It isn’t as lonely at the top when one gets humility at the bottom of the soul.

Humility Is

 

 

In The Year 2020 This Is What Business Leaders Will Be Called

May 25, 2016 By kwmccarthy

CLO cover 1
Pre-Orders are being taken through June 1- 30, 2016. Click the cover to learn more.

Update: As of 6.1.16 you may Pre-Order the book today at: http://www.clonow.com.

Every business book you’ve read and every class, seminar or workshop you’ve taken over the past 25 years or more was built on the basis of a Chief Executive Officer (CEO) being in charge. What if the effectiveness of that foundation is crumbling beneath you at an alarming rate? What will be different in the management and development of organizations? What is the impact on employees? What has to change for you?

In the future, expect your CEO to grow into or be replaced by a person known as a Chief Leadership Officer™ (CLO). This top leader in your organization will have two primary missions:

  1. Position the organization to be a leader in its chosen field;
  2. Position the people within the company (and beyond) to be leaders of their lives and work

All the business disciplines you’re accustomed to seeing, such as finance, marketing, operations, etc., will still need to happen.  CLOs, however, have a more complete orientation as to the roles and responsibilities of leading enterprise. Whereas CEOs focus on management and administration of the business for shareholder gain, CLOs focus on leading and navigating the company to be a profit-maker true to its purpose.

People in this present Digital Age and the coming Age of Purpose deserve and expect meaningful work, fair compensation, positive working conditions, and respect for their person. CLOs understand that cultivating these measures begins with a clear articulation of organizational purpose and the sincere desire to be positive difference making or contributors to societal improvement.

The Conviction of CEOs

Business leaders have a real problem: they profess innovation but they’re the last to innovate. The financial and human costs are mounting.

Something is wrong, seriously wrong in the state of practical affairs in for-profit and not-for-profit organizations alike. During my decades in business I’ve found the overwhelming majority of my client CEOs, C-Suite teams, managers and employees are good people with a desire to serve the customer while putting in an honest day’s work and then some.

In 2015 Gallup Consulting reported that only 32% of the employees in the U.S. are engaged in their work. This isn’t necessarily an indictment of the employees. One might argue, very rightfully, that when 68% of the workers are disengaged the blame falls at the feet of the executives or employers.

This is only partially accurate. Each shares a measure of the responsibility.  If the employee is disengaged then it behooves them to go find work where it is engaging. If the employee base isn’t engaged, then management better look at their On-Purpose Business Plan for deep answers. Normally, however, they’ll take an expedient, more shallow approach and address the obvious points of “blame” such as hiring practices, on-boarding, training and such.  When in doubt, blame HR! Sadly, HR is dealing with the symptoms of an under-leading C-Suite.  To learn more watch this 9-minute video called: The On-Purpose Business Plan.

CEO-to-CLO

Chief Executive Officer (CEO) is fast becoming the symbol of an antiquated title, mindset, and role that is increasingly missing the mark for profiting business and society … and getting worse by the day. This relic of the Industrial Age in the highest corporate office is the final holdout from innovation.

Our system of doing business, not the people, is broken and out-of-sync with our times. The Industrial Age ways and days of a CEO-run company are coming to a close.

Government intervention in business too often chains the self-correcting mechanism of the free enterprise system making matters only worse. The evidence mounts that more than a technical correction is needed. Such a reformation must come from within business.

What we face is a systemic problem—all of us are affected!

CLOs, Right For People and Society

The opportunity is remarkable. Business funds nearly every facet of modern society. The role of commerce and industry in society has never been as powerful and far-reaching.  It has also never been as short-sighted and squandering of the available talent and resources.

Those in the workforce are increasingly burned out, bummed out, or checked out. Such a widespread sell-off of dreams and hopes in exchange for a paycheck is killing our souls, all in the name of shareholder value and a flawed understanding of profit.

CLOs get that when The On-Purpose Principle is at work there’s an release of human potential and an unforced pace, productivity and commitment.  When a person’s heart is in their work, everything else is so much easier.

The Title Fight

Where are the leaders, the pioneering CLOs? Who will arise to lead in the Age of Purpose? On-Purpose Partners is leading this call to be about business differently.CLO Business Differently

Chief Leadership Officer is a future-facing story making the call for CEOs to replace themselves and become CLOs as the top officer in the company. CLO-led organizations actively elevate the prosperity of society to create win-wins.

Like it or not, being a Chief Leadership Officer (CLO) is what’s next in the career path of the forward-thinking CEO or start-up entrepreneur. Business leaders of tomorrow will operate decidedly different.

Chief Leadership Officer: The Book

This new book is a fast-reading narrative of a sage 100-year-old great-grandfather and his unsettled Millennial great-grandchild, the CEO of a 5-year-old tech firm. Together they launch a hero’s journey to discover a better way to be in business. First they must discover the precepts, promise, and purpose of a new manner and mindset for being in business. Chief Leadership Officer is the embodiment of their work.

Chief Leadership Officer respectfully enters the corner office of CEOs, challenges widely held norms, and calls for self-interested reflection.

  • Aspiring and current business leaders will be faced with making a decision: Will I be a Chief Leadership Officer?
  • Every employee will ask, do I work for a CEO or with a CLO?

Business persons, especially entrepreneurs to CEOs, are invited to embark on their own hero’s journey to take part in a CLO-led reformation. It is a team effort. Every reader has a chance to join the movement, to embrace an emerging manner of being in business today in order to profit tomorrow.

Join The CLO Cause

The CLO message is bigger than me. It needs a bigger platform than I can provide on my own. Chief Leadership Officer will also be a seminal work impacting generations to come. Be a part of breaking new ground and setting a healthier, more wholesome course for people and companies for decades to come.

Starting June 1 and running to June 30, 2016 you can pre-order the book at Publishizer.com, a crowd-funding platform for authors. Funds will go toward production and promotion. There you can download the first few chapters and get a read on the story line.

Write to me. Give me your feedback. This will be a collaborative writing project. Advanced readers will be able to offer insights and ideas that may work their way into the book.  Visit www.ChiefLeadershipOfficer.com.

I can readily self-publish this book on my own; but the message is too big for me to handle alone. The book needs the clout, resources, and reach of a traditional publishing house partner. Therefore, I’m seeking a capable and committed publisher who is as visionary and excited as I am about what we can do together. Pre-orders are a form of proof that readers are interested.

Please join me in this cause to positively reform business for this and future generations by pre-ordering the book for future delivery.

Be On-Purpose!
Kevin

Sales Growth? How Do I Improve it?

April 28, 2016 By kwmccarthy

Sales growth challenge?

What if you had a volunteer sales force spreading the word about your goods and services? Would your business grow? Of course it would. Unfortunately too many of us who are small business or solo owners aren’t clear in our minds about who we are, our ideal on-purpose customer, and our value proposition. In fact, we may not even have a workable mechanism to get paid for our goods and services.

You’re a few short questions away from having a sales force of people recommending your business and getting the sales growth you want. Write out your answer to The 3 Knows:

  1. Know who you are — identity.
  2. Know who you serve.
  3. Know how you profit or add value to your clients.

Equip people to help you build your business and be willing to ask for their help.

Try this sales growth exercise to see how on-purpose your team is.  Ask your 3 Knows of Sales Growthsales team and sales support to respond to The 3 Knows above.  Compare results and candidly assess how much alike or different the responses are.  This will help you gauge just how clearly communicate the core sales growth strategy is for your business.

Another option is to ask five customers or clients to respond. You’ll learn a lot about how easy it is for people to refer or recommend you.

Participate in the economy, but don’t go to the pity party.

A sure way to kill your sales growth (and business) is to blame the economy. Here’s an easy target for slumping sales. The only problem is that it is a distracting and useless exercise. Blame is a losing strategy. You don’t control the economy. U.S. Presidents think they do, but they don’t. Instead focus on items that are under your control and that help to increase sales growth. You do have a degree of control over your economy. Answer The 3 Knows.

Tough times are even tougher especially when we allow ourselves to get distracted from what we do best. In my engagements with business owners, sales persons, entrepreneurs, and executives with P&L responsibility, their greatest challenges are almost always self-inflicted. They just don’t know what they don’t know.

That’s the value of a business advisor, especially one who isn’t an industry insider. We see your business differently. We ask questions. We don’t assume to understand. We’re curious to find out what’s working, what isn’t, and why.

A poor economy reveals what boom times hide.

Use the season of a sluggish economy to strengthen the business by focusing on what is on-purpose. Again the 3 Knows matter big time here.

Test the first of the 3 Knows. Ask someone what they do. Chances are they’ll offer up their title or role, e.g. “I’m a banker,” “I’m a salesperson,” “I’m a health coach,” “I’m a business owner.” 

So what? 

This lazy response reflects an underlying strategic issue of identity confusion. Don’t expect people to understand what it is you do.

Create your DoDo Dialogue. Here’s a fast, easy way to more rapidly and meaningfully engage a volunteer word-of-mouth sales force to send you referrals and recommendations. All because you “bothered” to make their understanding of what you do easily memorable, relatable, and frankly, more exciting. Don’t network for business. Instead, go to equip your volunteer sales force. By the way, be sure to ask them about their 3 Knows first. You’ll have your turn to share.

Watch your sales grow as you equip and inform rather than network and hand out business cards. 

Which Team Experience Would Best Serve Your Business and Life?

March 30, 2016 By kwmccarthy

This On-Purpose Business Minute originally aired in September of 2009 when I was trying to help my daughter, Anne, decide about college sports opportunities. This week I was speaking with a long-time friend about an almost identical dilemma his daughters face so I thought it was appropriate to reach out for crowd wisdom, especially those of you who might have had college sports experiences.

This On-Purpose Business Minute invites your wisdom in the comment section. Help my friend’s daughters and other high school and college athletes better ponder their decisions about college sports programs. Share your perspectives and insights by answering this question:

Which Team Experience Would Best Serve Your Business and Life?

  • To be the 26th player on a national championship caliber team? Or
  • To be a four-year starter at a smaller college?

Learn more about the UNC Women’s Soccer Program by watching the video trailer to Winning Isn’t Everything. This is a great example of an On-Purpose Team!


By the way, Anne decided to focus on her academics while at UNC Chapel Hill and not play soccer. She graduated in three years and has a great job with Automattic, the creators of WordPress, the platform for this website as a matter of fact.

As fate would have it, she arrived on the UNC campus as a freshman and on activities day discovered there was a women’s rugby club team. Fascinated, she joined the club, excelled and took to it. In fact, because of her promise shown in the fall of her freshman year, she earned an invitation to attend the College All-American & National Team training camp. She played rugby for a couple of years until she tore an ACL in her knee at a match at the University of South Carolina. Judith and I were at that match and I saw her go down on the field after making a tackle. I thought her shoulder was hurt, not her leg.

While recovering from the surgery she better realized the physical risks of rugby along with the demands of being a college athlete. She elected to stop playing her last year to focus on her studies. Today, she plays pick up soccer, her sport where she was an All-State Player in Florida; and she remains an avid fan of rugby.

Is It Fair To Profit Off Of A Sick Person?

March 10, 2016 By kwmccarthy


Apart from the political implications, the Affordable Care Act, aka Obamacare is rich in life, business, moral, and economic lessons. Since this Minute was recorded in November 2009, an erroneous and displaced argument continues to be frustratingly waged in a legal, economic, social, political, and medical firestorm. It seems, however, that there is a deeper moral question at work here.

On-Purpose Business Minutes aren’t political in nature. They’re intended to get you below the surface to strategic issues that touch our lives and inform our thinking. By design, my goal is often to disturb your thinking in a manner that gets you closer to the root of the matter — to the purpose. Until you know the purpose, you can’t align your life to be on-purpose. This Minute will likely deliver on disturbing thinking!

My jaw dropped in stunned amazement as I heard Florida Congresswoman, now Democratic National Chair, Debbie Wasserman Schultz make the following statement on the November 22, 2009, ABC News broadcast of This Week With George Stephanopoulos. The following quotation from Congresswoman Wasserman Schultz’s comments can be found in context at this link in the show transcript.

“I hope we can all agree that we have to get rid of the profit-driven, insurance company-driven health insurance system that we have, where it’s insurance company bureaucrats, Senator Coburn, that are getting in between patients and their doctors.

“To suggest that this (healthcare reform) bill will put government in between patients and their doctors is really disingenuous …”

What has changed since 2009? Her comments are important because they reflect the crux of so much of the misplaced debate in the U.S. over healthcare reform. The failure to address core principles is a classic case of arguing sentiment over underlying values and structure that make their way into policy. Read between the lines of what she is saying here about free enterprise, economics, and so forth when she calls for “get[ting] rid of the profit-driven, insurance company-driven health insurance system.” Ask yourself if her comments represent healthcare reform or a reflection of an underlying philosophy of socialism or ignorance of the free enterprise system that created the amazing medical standards of care in the United States?

Here’s where I fall out on the matter … Yes, it is not only fair to profit off of a sick person — it is essential to the health of the individual and greater society. When the business side of doctors’ practices, insurance companies, hospitals, and medical supply companies are healthy, then the people are healthy. Free enterprise tends to increase access to healthcare, raise the standard, and make it more affordable to all. Legislation by definition comes between people’s relationships and behaviors. This burdens the delivery system with additional costs of compliance and drives up costs.

The debate over access to health insurance is a straw man argument. The true question to ask is, Can a sick or injured person gain access to healthcare? Yes! That is not a problem thanks to the Hippocratic Oath and community-based hospital systems that allocate dollars from revenues generated to care for the indigent. Persons in need are not denied healthcare. “The Emergency Medical and Treatment Labor Act (EMTLA) passed by Congress in 1986 explicitly forbids the denial of care to indigent or uninsured patients based on a lack of ability to pay.”

Health insurance is simply a means to pay for services on a shared risk basis that opens up more options to policy holders who choose to participate with their dollars. When every person has access to healthcare, why must every person have health insurance? The moral argument is basically settled. The ill and informed are cared for whether theyHealthcare debate can afford it or not. Society has deemed that to be essential to the well-being of the nation.

Access to healthcare is a right. Health insurance, however, is a choice — not a right. Choice, however, is the essential element of a free market economy. 

Choices come with consequences. Many a time I can look back at my choices and wish I had chosen differently. But I live with my choices and learn from them.

To the original question, the profit motive fuels the engine of creativity and innovation across all sectors of the economy including bio-medicine and healthcare. Entrepreneurs and business people are like economic ants swarming to find a strategic, market, or price advantage crack to gain access to and serve customers. In some minds, this behavior is seen as being unsavory and “disingenuous” and greedy. On the other hand, the profit motive fuels cost reductions, stimulates product/service enhancements, and drives down costs to the consumer in total. Free enterprise creates freedoms in a free society. Within the free enterprise system the legal system catches and punishes those who violate the law. Profit, however, is not a criminal act.

Purpose, however, is an even greater force than profit. Purpose can lightly be thought of as the inherent desire to contribute to the well-being of another person, what is often called “Making a difference.”  Purpose is service. When service and profit are integrated then the heart and the head come together to produce high and noble outcomes that profit us all.

Profit with purpose is a reason the USA has the greatest medical delivery system in the world. It is also why the USA is the wealthiest nation in the world. This combination of moral clarity, technical excellence, and business acumen provides remarkable strategic advantages.

Reform is needed, but to radically alter the course of the socio-economic sanity is the greatest threat to the health of our citizens, country, and the world — especially the coming generations. 


 

How to reduce the costs of healthcare for yourself and the country?

Here’s the Kevin W. McCarthy Solution: 70% of Americans are overweight. Let’s encourage every American to get to a healthier place — to take personal responsibility for what they eat by making healthier choices. The rising cost of the healthcare crisis will end. Doctors will be able to practice acute care medicine instead of wasting their time and talent patching up and medicating our self-inflicted “wounds.”

The true culprit to our the healthcare crisis is a nation’s collective choices of unhealthy habits and lifestyles. Personal responsibility matters deeply in one’s health and well-being. Dumping the cost of one’s unhealthy decisions onto our neighbors isn’t loving them. It is asking our neighbors to underwrite the consequences of our poor choices.

The greatest “pork” in ObamaCare isn’t in the bill itself — although it is massive. The real “pork” is in the people who are weighting down the economy with the mindless self-selecting of diseases like Type 2 diabetes, high blood pressure, gout, cholesterol, and more. These obesity-related diseases lead to strokes, heart attacks, cancers, premature disability, and death — an ironic and discriminating form of Darwin’s natural selectionLove your country, but a waste of human life by any measure.

Do you love your country? Then, get to a healthier place! Stop the slow killing of yourself starting today. If you can’t do it on your own, then get help. There’s no sense giving away your hard earned “profits” when you can gain health and lower the full costs of your healthcare.

Your comments are appreciated.

Be On-Purpose!

Kevin

P.S. Need assistance? Ready to see “the waist” go away? Talk with the Health Coach who forwarded this message to you.

Need a health coach? Talk to my wife, Judith. She can help you get to a healthier place. Go to www.ahealthierplace.com or call her at 407.927.1642.

Facing A Decision? Got A Decision Making Process?

February 22, 2016 By kwmccarthy

Facing a DecisionAs a person or an organization matures, decisions need to be distributed across the team to those closest to the choice. In the absence of clearly articulated and communicated values (and a 2-word purpose) even the most well-intended person makes ungoverned decisions — typically on emotion rather than values.

Where is the root responsibility for such “ungoverned decisions?” If values are not “articulated and communicated” plus reinforced regularly, then leadership, not the person, has failed.

Consider the sheer number and importance of decisions made every day by every person associated with your organization. Every line item on your income statement reflects a decision. Ask: Do we have a specific decision making process in place that is introduced at orientation and is a regular part of our corporate conversation and storytelling?

The highly likely answer is, “No. In fact, with everything else I need to get done, this hasn’t even been on my radar.” The problem is you’re too busy making decisions that could be better done by someone who is closer to the problem who is trained, tested, and trusted.

Experience tells us that this leadership “oversight” undermines sales and profits by 25% annually. Run the numbers — now you know the price of poor leadership!

Better Decisions = Better Business

Values seem well below the surface of the daily waves of activity. In fact they are on the surface of every decision made by every team member. Coming to terms with this hard reality in the busyness of the day can be a daunting, humbling, task for the leader.

On-Purpose Partners helps clients to define, share, and activate their purpose, vision, mission, and values (PVMV) so better decisions are more consistently made across the company.

Follow our 3-step ACE decision making process to align and improve the decision making quality, speed, and effectiveness:

  1. Articulate: Purpose, Vision, Mission, and Values (PVMV). These “On-Purpose Statements” can typically be identified, refined, and written in less than a week for most organizations. For smaller businesses they can be completed in less than a day.
  2. Communicate: Find authentic stories within the organization that reflect the values. Create an open dialogue to introduce them to the larger team so ownership of them spreads into the hearts, minds, and guts of those who engage.
  3. Exercise: Put your On-Purpose Statements to work by creating decision matrices across the organization. Here are just a few places decision-making is improved using On-Purpose Statements:
    1. Strategy & Planning – It is easy to get mechanical and analytical about strategy and planning but your PVMV keep it real on a human level.
    2. People – Employment, engagement, and retention of team members are profoundly influenced by PVMV. This is where “The Tingle Factor” comes from. See The On-Purpose Business Person to learn more about The Tingle Factor.
    3. Financial management – Complement the ROI, NPV, or IRR analysis with your PVMV analysis.
    4. Vendor/sub-contractor selection – Does the vendor demonstrate similar PVMV? Have you shared what you value as a part of right business performance?
    5. Operations – Are the people and processes informed and aligned with the PVMV to create the performance needed to grow the business? If not, then you’re producing a flawed product.
    6. Marketing & Branding – Truth in advertising matters. What, however, determines “truth”? Your PVMV keep the company true to what matters most.

The power of On-Purpose® is profoundly relevant to execution and profitability — but only when the CEO or leader decides it is. Otherwise, it is business as usual.

Business as usual or business on-purpose? Now you’re facing a decision!

How Convincing Are You?

January 26, 2016 By kwmccarthy

We’ve become a contentious and polarizing culture. What place is there for hard edges and righteous attitudes in the course of civil conversation?

Does convincing work? No!

Is it more important to be right or to be in a right relationship? This doesn’t mean that you become a doormat for others to wipe their waste on your thinking or person. Rather it means that you maintain your dignity and decorum as others debate and argue. You need not be defensive or offensive, simply be an adult who doesn’t get drawn into the fray unnecessarily.
Conversing

To influence another person’s thinking there must be a basis of some trust and respect, period.  Those qualities of leadership only come within the context of relationship where conversation, not convincing takes place. Stop convincing. Start conversing!

This approach is much easier said than done. A great technique is to say to someone, “Look, I know I’ll never convince you to change your position, nor you mine; but I would appreciate understanding your rationale, perspective, and opinions on the matter.” Then sit back, ask questions, and learn what the other person is thinking. Then sincerely thank them for sharing and walk away better informed and prepared to understand a different point of view. Build the relationship!

 

How to Make Money?

January 14, 2016 By kwmccarthy

Regardless of whether you have a job or own a business, today’s On-Purpose Business Minute invites you to explore three aspects of what it takes to make money and make even more money. 

Make Money TreeDo you have the mindset, the multiplier and the mechanism in place to make money?

For most people, how much money they want to make isn’t the challenge … it is making that amount of money that presents the real issue. So let’s revisit this classic On-Purpose Business Minute and explore some simple elements to making money.

Study the people who made or make big money — Sam Walton, Warren Buffet, Donald Trump, Bill Gates, Stephen Jobs, or whomever comes to mind — and you’ll find the three essential M’s are present and to the creation of their wealth in a socially responsible manner and in a way that is meaningful to each person.

—————————

Do you have a favorite quote about money and wealth? Share it in the comments section. Here are some that I found valuable.

Abundance consists not alone in material possessions, but in an uncovetous spirit.

                Charles M. Sheldon

 

Those who condemn wealth are those who have none and see no chance of getting any.

                William Penn Patrick

 

That some should be rich, shows that others may become rich; and is hence just encouragement to industry and enterprise.

                Abraham Lincoln

 

Click here to receive an email when I post new On-Purpose Business Minutes.

 

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