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Brandon W. Jones

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The Risks Of Promoting Without Giving Raises

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The Wall Street Journal article The Risks Of Promoting Without Giving Raises by Paul O. Lopez explained that there are many companies that want to promote their employees even though they are experiencing hard economic times.

The Risks Of Promoting Without Giving Raises - Article Review

2 Reasons Why to Promote Without a Raise?

The companies are promoting without raises for two reasons:

    1. They know the employees will take on the additional responsibilities to help the company
  1. The promotion will boost employee morale.

The companies, however, are unable to provide raises with the promotion. There is nothing illegal or inappropriate about doing this.

Factors to Consider When Promoting Without Giving Raises

Companies promoting without giving raises should consider past employees that have been promoted to similar positions and the types of raises they received. They must take particular caution when there are promotions that could be construed as racist or discriminatory. [Read more…] about The Risks Of Promoting Without Giving Raises

Planning For Success

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Recently, I attended a retirement planning workshop. The presenter explained the importance of planning for success by doing the right things today. He explained that with all the workshops and coaching he does, he runs into many people that aren’t planning or did not plan for their retirement. That is evident when they have no money in savings and decide to retire in one year. It is also evident when they don’t review their savings to determine if it is enough for their retirement. Also, occasionally he runs into people that worked way longer than needed because they didn’t understand what they wanted retirement to look like for them.

Your Financial Plan

The most important thing people can do is review and understand their current financial situation, future retirement goals, and options available to get where they want to be. When you take this approach, you are planning for success. This workshop really got me thinking about how I am planning for success in my financial future. [Read more…] about Planning For Success

The Collapse Of Nations – Leadership Fiduciary Responsibility

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Yesterday, I wrote a post about the fundamentals of leadership fiduciary responsibility.  I addressed that post mostly towards business and corporate leaders and what fiduciary responsibility they have.  As a leader, it is very important to take your fiduciary responsibility seriously because your organization will flourish or perish based on how you handle the money.  As a fiduciary leader in a corporate environment, you make major choices on how to spend money and where to make strategic investments.  In many cases, however, the money you spend is money from investors.The Collapse Of Nations - Leadership Fiduciary Responsibility

Additional Reasons To Have Fiduciary Responsibility

In addition to the business and corporate environment, there are many leaders in government (many times politicians or political leaders) that have a great fiduciary responsibility.  They regularly make major financial decisions that shape where their nations go in the future.  Sometimes one decision or a series of decisions over a short time frame can change the course of a nation for many years.  [Read more…] about The Collapse Of Nations – Leadership Fiduciary Responsibility

Do You Take Your Leadership Fiduciary Responsibility Seriously?

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Over the past five to ten years there have been many leaders that have squandered money from others in some fashion.  Sometimes those other people are investors, employees, stockholders, or stakeholders of some form or another.  Many times the leaders are entrusted with large sums of money, but they are careless when making decisions.  Other times, leaders just make risky investments without doing adequate research.  So why do leaders make these types of decisions?  There are probably many reasons, but they all stem from the fact that they don’t understand their fiduciary responsibility.Do You Take Your Leadership Fiduciary Responsibility Seriously?

What is a fiduciary responsibility?

Wikipedia explains, “A fiduciary (from Latin fiduciarius, meaning “(holding) in trust”; from fides, meaning “faith”, and fiducia, meaning “trust”) is a legal or ethical relationship of trust between two or more parties.  Typically, a fiduciary prudently takes care of money for another person.  One party, for example a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to the other one, who for example has funds entrusted to it for investment.”  As a leader, you have a fiduciary responsibility to those who have entrusted you with their money. [Read more…] about Do You Take Your Leadership Fiduciary Responsibility Seriously?

How To Make It Through The Hard Times By Having A Vision

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Hitachi, the Japanese electronics giant, has been around for 102 years.  Recently they went through one of their worst periods in company history.  During the four year period from 2006 to 2010, Hitachi went through a company depression where the total losses equaled $12.4 billion.  The losses were the worst in company history.  The following two years they posted record profits.  In 2011 alone, they posted a net profit of $4.35 billion.

So why did they go from having record losses to record profits? What happened to make them profitable?  In April 2010, Hiroaki Nakanishi took over as the president of Hitachi.  When he took over, he had been in the company for many years which gave him a lot of experience, but he didn’t adopt the previous leadership culture that led to the problems.  With all his experience, he hadn’t allowed himself to grow into the same mold as all the past executives.  He had a completely different thought process than all the previous leaders.  The article Hitachi President Prods Turnaround in the Wall Street Journal by Daisuke Wakabayashi states:

Hitachi under Mr. Nakanishi has broken away from a plodding, risk-averse style of management, spinning off at breakneck pace its consumer-related operations in mobile phones, computer parts and flat-panel TVs to concentrate on selling big-ticket—and more profitable—power plants, rail lines and water treatment facilities.

While other Japanese electronics firms continue to suffer from losses in consumer products and the punishing impact of the strong yen, Hitachi—Japan’s largest electronics manufacturer—has posted a second year of record profits

[Read more…] about How To Make It Through The Hard Times By Having A Vision