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I must say that my last blog entry about how to spot good or bad leadership at the White House generated lots of controversy.  Good,

The point though was not about politics.  It is about leadership.  More succinctly, two signs of a good leader are:

1.  Who s/he picks as lieutenant?

2.  Who fills the key manager/advisor roles?

The point being that one person can not run a company, non-profit organization, government agency or country.  So the quality of the people you surround yourself with is critical.

Watch President Elect Barack Obama as he transitions into the White House.  There may be some great leadership lessons for us all.

First, CEO-entrepreneurs should copy the traditional management model at the White House - President and Chief of Staff work hand-in-hand.  The President serves as the leader - visonary, planner, goal setter, relationship director.  The Chief of Staff serves as the manager - day-to-day operations, analyst, detail director, oversees the staff. 

Obama has already confirmed that he will use this model.  The strength of the person coming in as a manager will tell us alot about whether Obama understands the difference between leadership and management.  One is outfront; one is inside.  Bush by his nature is probably a better manager.  Clinton and Reagan by their natures were better leaders. 

The second leadership test for Obama will be who he surrounds himself with.  Reagan mastered this.  He put the best person he could find in each cabinet and key position of his administration.  None of us is naive enough to believe that Obama can manage all the country’s problems himself.  The strength of his leadership will also be defined by who he puts in each position.  If he wants to micromanage, they will be weaker.  If he’s a true leader, they will each be smarter and stronger than he is regardless of political affiliation and past history.

CEO-Entrepreneurs would do well to hire the best, strongest and brightest for the key positions in their companies.  After all, when you go through the brain damage to found and grow a company, don’t you deserve to bring in others to take it to the next level.

Watch Obama…the greatest leadership challenge of his life will unfold in only the next seven days.  His first actions will tell the most.

My friend Aldonna Ambler, the Growth Strategist ™, addressed the EverythingJersey Conference with tips from leaders of the fastest growing companies. “Being able to focus despite background noise is your most important skill,” she said. It is easy to be distracted with worries about payroll, access to credit, competition, and the election.

So, Ambler encouraged attendees to exercise, get enough sleep, and resist fast food so they can think clearly. She observed that the entrepreneurial leaders of the fastest growing companies still take the time to visit the gym several times each week.  Ambler reminded the business audience that “we are all in the same business of energy management.”  One of her clients has started to bring comedians into their meetings to help their sales people laugh, relax, and think more clearly.  Another brought in a trainer to teach improvisation techniques to improve their managers’ ability to think on their feet. 

“It’s important for business owners to continue to look for opportunities and not freeze during tough economic times,” said Joan Verplanck, President of the New Jersey Chamber of Commerce. “Aldonna reminded business owners that true wealth is often traced back to products that were introduced during recessions.”

Ambler observed that recessions provide unique opportunities for business growth.

Affordable Market Research - When the economy slows, customers give themselves permission to complain and whine.  A business can save a great deal of money on expensive market research by listening carefully to whining. You can look like a hero if you demonstrate that you heard what customers have said.  ”Listening to what is really important to customers helps you focus your product innovation, which saves money,” advised Ambler.

Joint Ventures - Ambler encouraged entrepreneurs to consider large business ideas since complementary companies will be more willing to participate in joint ventures to spread the risk. Plus, it can be easier to admit that you need help during recessions.

Recruitment of Top Performers - It is possible to recruit top employees away from competitors during a recession. Bright creative people can feel bored or underutilized. You may well be able to afford to hire a candidate who seemed out of your price range just a few years ago. Top performers prefer to work for companies that are going somewhere rather than feel trapped behind indecisive business owners who take a ”wait and see” approach during recessions.

Talking about the economy at the Fortune Small Business/Gazelles Growth Summit in Atlanta on October 21, Management Guru Tom Peters used his irreverent, forceful voice to inspire leaders of small and growing companies.  My favorite quotes from the session:

“Command and control do not work now.”

“The most essential elements of leadership are execution, decentralization, accountability and getting up at 6:15 am every day ready for work.”

“We are the company we keep.”

“The yogurt has hit the fan because moeny was loaned to people who should not have had it.  I expect unemployment as high as 8%.  We have not seen this kind of economy for the past 25 years.”

“You need to understand yourself to be a good leader.”

“Leaders exist to serve the people who serve.”

“If the people who work for you don’t scare you a little, then you don’t employ the right people.”

“Internal organizational excellence is your deepest blue ocean.”

“Why is Germany the number one exporter in the world?  It is filled with mid-market companies who defined narrow niches of products and exploited them.”

            Despite media reports to the contrary, Colorado business financial expert Roy Martinez says that entrepreneurial companies can tap into “a lot of financing” right now.  The managing director of Cimarron Equity Partners, Martinez notes that many lenders and equity groups are not meeting their annual goals and therefore welcome small and mid-sized companies to apply.

            For example, only 75 per cent of the funds guaranteed by the U.S. Small Business Administration (SBA) last year at this time have been approved this year.  While the SBA does not lend the money directly, Martinez suggests that business owners who need $2 million or less in financing approach an SBA-approved lender.

            In addition, Martinez says that profitable companies should approach “non-bank” lenders such as asset based lenders, mezzanine financiers and private equity firms.  “Asset based lenders have been underutilized in particular during the past year,” he said.

           Roy Martinez is managing director of Cimarron Equity Partners LLC, which raises capital for businesses as they grow or change ownership. 

October 16 is Boss’ Day.  Will your employees remember?  What will they do for you?  What would you like them to say about your as a leader?

As for me, I do not expect my employees to make a big deal, and if they plan something, I will enjoy it wholeheartedly.  What I hope that they say and feel is that:

I am fair, help them to develop, know how to make decisions especially when quick decisions are needed, provide stability to the firm, put myself first when I need to and put them first when that is a better choice, motivate them to come to work, provide creative opportunities.

Post your ideas now.

My friend and client Adriane Sanford (CDOT Work Force Development) scared the bigibies out of me yesterday.  In her industry, construction, the average worker is 51 years old.  Calculate quickly and you realize that we will run out of construction workers in the next 20 years.

Actually, construction does not stand alone facing this problem.  The U.S. Department of Labor has projected a woeful shortage of labor for the next generation.  From where will our future employees come?

Employee retention and creative hiring will be musts to survive.  What are you doing to retain and recruit employees?