[This is column by me to the Class of 2008, published in the Cold-Call Chronicle.]
My research has focused on business disasters, such as the Panic of 1907, M&A deals from hell, Enron, etc. Business disasters have a common theme of failure to prepare for adversity. Here we are again in the middle of a turbulent moment: market illiquidity, failures and rescues of financial institutions, vaulting inflation in energy and food prices, layoffs—and as all of you know, challenges in finding jobs consistent with your aspirations. This is also a moment of extraordinary opportunity, in fields such as technology, exports, and consumer products. Even the industries that are feeling the most pain today will yield opportunities when their recoveries begin. But dealing with the turbulence and harvesting opportunities depends on preparation for the known and unknown adversities. Simply learning tools and concepts at B-school isn’t good enough; you must employ them to your advantage. You must be a weather-proof MBA. What does that mean?
To be an all-weather business professional is to perform consistently in good times and bad, and to be ready for both of them. Readiness stems from a range of attributes:
- Total integrity. At market extremes, business people are severely tested in their capacity for truth-telling, trust-building, and social awareness. You are your own brand. What brand reputation do you want? Live the values associated with total integrity. If you discover that it is not possible to do so, move onto a position where it is possible. Find a community of trust, or form one.
- Work ethic. Hard workers are the first hired and the last fired. Thomas Jefferson said, “I believe in luck, and I find that the harder I work, the more of it I have.”
- Sensible risk-taking. Markets tend to work in ways that compensate you for the risks you take. Take risks, but be sensible. If you have not already read Nicholas Taleb’s Fooled by Randomness, do so soon. Stay out of any game that you don’t understand. Go where the competition is not: you won’t create a lot of wealth in highly competitive markets. Remember that most get-rich-quick schemes, like lotteries, are based on the assumption that you can get something for nothing, a notion that markets reliably reject. Borrow sparingly; buy what you need (not what you want); save.
- Learning. Continue to invest in your intellectual capital. Rest assured that graduating classes of MBAs who follow you are bringing refinements and new best practices into the world of practice. Job security is associated with keeping your human capital near the forefront of your chosen field.
- Joy. The all-weather people bring to their work a spark and energy that carries through good times and bad. Personal sustainability and the consistency of execution distinguish the best performers. I’m not referring to “enjoyment”; they do call it “work” for a reason. But joy, a fundamental sense of fulfillment, is essential.
My meetings with hundreds of Darden alumni over the recent years confirm the vitality of these attributes. Their stories are sometimes painful but resonate with virtues such as these that ultimately carried our graduates to success. Great business success is often reached through adversity. Strive for sunshine, but prepare for rain.
Posted by Robert Bruner at 05/17/2008 06:07:52 PM