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A Letter Regarding Financial Faith

Dear Financial Community:

The failure of Silicon Valley Bank is enormously troubling. Call it an isolated circumstance all you want, but it has further stressed our nation’s dialogue. An echo of other bank failures has followed SVB down the drain. Long lines of anxious customers waiting outside banks are never something we want to see. This was unnecessary. This was bad form.

As dependability in our institutions continues to fray, I worry increasingly about where we’re headed. As divided as we are in this nation, can we withstand a true crisis of faith in our banking system? What understandable assurances are in evidence that wider contagion is not possible, that limits can be maintained on the ramifications of remarkably poor judgment?

Where does resilience meet its match and cause us to lose faith in the basics of our grand experiment in economic expansion?

Our economy works on a number of elusive factors in concert with tangible reporting. One of those is faith. If we lose faith in our banking system, the notion of ongoing growth and innovation at scale seems to go out the window. The economic miracle we have created together freezes solid and then melts into the ordinary.

Ample credit fuels dreams. Intelligently borrowed capital brings to market hopeful new companies and bolsters the expansion of existing businesses. Financial institutions, mostly banks, have to lend money for ideas to become enterprises.

Lending money as its own business only works if there is leverage in lending. We understand the rules of engagement: a bank keeps some cash on reserve and lends more than it has at any given time. This works fine as long as there are no unaddressable runs on banks.

Should redemptions exceed liquidity, banks are forced to liquidate assets at any price to return cash to depositors. Trust in the banking system and the FDIC is required of depositors to prevent runs from melting down banks. Trust is a reflection of faith. Lose all faith, lose all trust, we all lose.

Here’s ground zero: If we lose faith that banks can get our money for us whenever we ask for it, deposits cease. If there are no deposits, there can be no lending. That’s the endgame you are teasing when you fail to do your job and cautiously manage risk. Kill deposits, kill lending — that’s a death spiral in the making.

Faith is increasingly becoming a conflicted proposition. Reckless financial engineers test us every decade. The savings and loan crisis. Long-Term Capital Management. Sub-prime mortgages. Washington Mutual. Collateralized debt obligations. Lehman Brothers. One day the combined impact of these attacks on faith may succeed in fully undermining the little faith we have left.

Then the thinning ice cracks for good.

Don’t tell me this time it’s about rising interest rates that weakened your balance sheet. You’re smarter than that. You know history. You knew interest rates had to rise. Nearly free money is never forever. You’ve been making loans as long as you’ve existed. You understand liquidity. You understand it so well that you spend millions lobbying against the very regulations you need to stay in business.

There are no excuses. You take bonuses for being clever. When you’re too clever, the damage has the potential to become systemic. When faith in the system evaporates, apologies are meaningless.

A brand is a promise. When a bank’s brand fails that promise, the entire concept of for-profit banking is soiled. We are only human. Serial violations of trust reveal fragile faults in what we’re repeatedly told is a robust system. We can only experience so many failures before trust is gone.

If we come to believe that U.S. Treasuries are the only safe place to park our money, what happens to commercial lending? If commercial lending retreats, how do the entrepreneurial efforts of the next hundred years replicate the last hundred years?

Do we really want to depend on government to keep righting the wrongs of irresponsible, conniving executives? Government’s role is to referee where self-regulation has proven farcical. Regulate, yes. Adjudicate, yes. Underwrite exponential losses, unsustainable.

If government must guarantee every deposit regardless of the amount in order to maintain faith in those deposits, how can bank executives ever be trusted to take risk seriously?

There’s a lot at stake, more than many of us may yet realize. We’re shell-shocked, but we’re supposed to maintain faith. Each day it’s harder. Each day we put our own historical investment paradigm at risk.

In simplest terms: Please stop putting our nation’s future at risk and punting your unnecessary failures to manufacture compensation you haven’t earned and don’t deserve.

Seek to restore our faith. You need deposits. We need loans. Keep our money safe to put it to work properly. We’ll pay our installments. That’s the contract. It’s a virtuous circle. We all have to abide by the rules, not wait to get caught if enough oversight is available.

Please make the rules work to all our advantage and believe in something more than your own benefit. Prosperity hangs in the balance. You’re toying with breaking everything. Let’s look to another hundred years of wise lending and liquidity to continue investing in positive outcomes we can’t even yet imagine.

Yours in faith,

A dissatisfied lifelong banking customer

_______________

Photo: Pixabay

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Cold Call Catastrophes and Catalysts

As the economy comes under increasing pressure, I find myself wading through an email inbox increasingly filled with clutter. I am being too polite. It is filled with garbage. Sadly, much of that garbage comes from sales folk who think they are reaching out to me to generate much-needed business for their companies.

Cold-calling is part of a salesperson’s job, I know that, and it is hard. If you don’t learn to do it well, you won’t be in sales long, or you will be doing it for the rest of your life on increasingly less lucrative accounts with thinner commissions than you are currently receiving. If you are not hearing back from me and the many others you are bombarding with modestly tailored spam, I am sure I don’t have to remind you that you are not succeeding.

While overcoming objections is a pillar of sales, you aren’t doing that if I delete your pitch on sight. Given the lack of good training you might be getting, allow me to suggest a few things you might be doing wrong. At the risk of inviting further assault, I will then suggest some things you might want to consider doing instead. If you are a manager overseeing a platoon of cold-callers, this might be an excellent time to audit your strategies, tactics, directions, and results to help those under your wing succeed rather than struggle.

“Can I send you a gift card for your time?”

No, you can’t. I don’t trade my time for $10 per half-hour. I also don’t want a free Yeti mug. I am not taking a meeting as a thank-you for something I can buy on my own. Anyone who takes this paltry bait is either violating their company’s conflicts policy or stringing you along without decision-making authority. Don’t offer to have coffee, lunch, designer cookies, or anything else sent to my office as an introduction. We don’t know each other. This is not going to make us friends. It’s insulting and you must stop now. This is not the same as me agreeing to have lunch or dinner with you in person because you have caught my interest. It’s cheap, it’s icky, and it compromises both our integrity.

“Can we jump on the phone for a few minutes?”

No, we can’t. I don’t jump on calls. I choose them wisely. Remember the obvious: I don’t know you and you don’t know me. You’re selling to me. It’s not my job to pick a time from your calendar to hear a sales pitch you initiated. You are being presumptuous and overreaching if you think I am going to drop what I am doing to jump at your opportunity. Don’t make yourself look silly when you are introducing yourself.

“Are you the right person to consider a new service?”

Seriously, you can’t be bothered to do your homework and know the answer to this before you send your inquiry? Why do you think I pick the VOIP system here? Or the cleaning service? Or the door alarm? If you’re wrong soliciting me, do you think I’m going to tell you whom you should pitch when I don’t know you? If we’re considering a new voicemail platform, someone is already working on that and you’re too late.

“Did I drop below the top of your email list?”

Yes, each of the last three times you emailed me and I didn’t respond. Moving your fourth inquiry back to the top of my email inbox at best is going to remind me of the last three I ignored in my backlog or deleted. What’s that old saying about the definition of insanity?

Okay, enough timesink, I’m sure there are dozens (hundreds) more examples of these non-icebreakers. Your time is valuable, same as mine, and neither of us can afford to be wasting it. Your bosses may tell you they want to know how many cold calls you made yesterday (almost no one calls anymore so most of this is email), but what they want are prospects — warm leads they believe you can convert to business. Here are a few avenues that might get you an email in return, the start of a conversation, which is the best you can hope to achieve on a first solicitation.

Get a proper introduction.

Want to meet me? Find someone who knows both of us and get that person to facilitate an introduction. I just heard your head explore: “That’s so hard,” you bellowed. “It could take weeks, and then why would anyone volunteer to bother you about an intrusive sales call?” Yes, exactly. It’s going to be a rare occurrence, but if you know someone I know and they think meeting you could potentially help me, they will reach out on your behalf. This is the drumbeat of effective networking. When it’s mutually beneficial, all boats float. A warm introduction beats a cold introduction every day of the week. It is worth all your time to secure one.

Send me something I don’t know.

I may not want your canned demo, but if you take the time to prepare a custom report that clearly demonstrates how your product or service solves a problem I have, I might flip past slide one. It all depends on how hard you’ve worked to make your case, how much useful data you can amass that catches my attention, and how relevant your argument proves to be from the first sentence to the last. “I can’t possibly do that for every cold call,” you groan. I agree, you don’t have to do it for every unrequested approach, just the one you want me to acknowledge.

Establish a relationship based on shared interests.

There’s a lot you can learn about people you want to meet by doing research — the organizations where they belong, the charities they support, the articles they’ve written or talks they’ve given, If you find a way to establish an authentic bond or point of connection, there is a chance you might open a dialogue that leads to a business opportunity. This is a much longer road and it will fail more than it will succeed, but it is much easier to pitch someone when they’ve already decided you are credible, rather than evaluating your personal credibility and your pitch in the same instant. Would you be surprised to hear that people like to do business with people they know or have already done business with in the past? Getting that history is hard, but once you have it, a lot more doors open.

What’s the real secret?

The real secret to building a successful sales pipeline hasn’t much changed in a hundred or more years: It all comes down to advance work. As much as 90% of your sales success is in preparation. Once you get in front of someone, which is the shortest time on time on the calendar, your presentation skills will stand or fall on your offstage readiness. Shortcuts seldom work. It’s your time out of sight that makes your time in sight resonate. Your time is an investment in your outcome, and the more you invest, the more likely you are to establish the basis of an opportunity.

Or you can offer to send me a gift card for a luscious fruit basket I won’t redeem and add that send to the tally you report to your boss. Your choice.

_______________

Photo: Pixabay

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Be In The Room

Over the past weeks, several major companies have announced various return-to-office policies. That means a requirement to be in an office some number of days each week. Thus far I have resisted sending a similar memo because I think for the most part this is best left to the judgment of department leaders who understand their goals, More than that, I am counting on the good judgment of individuals to make sense of advancing their career horizons.

Let me offer this one bit of advice: If you have the opportunity to be in the room and are not taking it, you might be doing yourself an enormous disservice. The time you spend at home may make your current life easier. I have significant doubt it will make your future more successful.

In my experience, there is no substitute for being in the room. It is where true bonds are created. It is where you can see in person how difficult challenges are met. It is where your gifts can be shared and recognized not just by your peers and boss, but by your boss’s boss, and anyone up the chain who might poke in their head and see you in action.

That’s not office politics. That’s reality.

Willingly giving up a chance to be in the room is a choice you make at your own risk, to the extent you have the choice. If you still have that choice, consider what you might be giving up in exchange for those nasty commute hours and a refrigerator full of your own preferred food.

Several decades ago, I was a recent college graduate desperate for an opportunity. I offer the word desperate quite deliberately. Despite a bachelor’s degree in the humanities from a known college, a string of paid jobs and internships, and a resume filled with extracurricular projects, I was just another unknown job applicant in a huge pool of recent college grads. The economy was in rough shape. It seemed no one who mattered even wanted to talk with me, let alone hire me.

All I wanted was to be in the room.

Like so many others, I ceaselessly kept at it and eventually got interviews. After many of those I got hired into a lousy job, then another lousy job, then several other lousy jobs, then finally a good job that I believe started my real career. At no time during that arc or any subsequent arc did the notion of willingly working remotely ever cross my mind, although one of those jobs happened to be such four out of five days each week because they had no desk for me. Any time I was able to be at work I considered it a catapulting privilege to be among accomplished, ambitious colleagues.

I never forgot what it was like being in a small apartment waiting for the phone to ring for an invitation to be in the room. I also can’t imagine doing what I do today without those many decades of watching other people perform their jobs across the spectrum from expertly to incompetently.

Every chance to be in the room for me has been a chance to learn. At the same time, it has been a chance to collaborate, creatively engage, and be a part of innovation.

Have I taken solo work home to review evenings and over the weekend regularly? You bet.

Do I believe there are times when telecommuting makes sense? Absolutely.

Do I see the internet as an unrivaled tool to share ideas globally among people who might never have the chance to gather under the same roof? Without question.

Would any of it convince me that forgoing an opportunity to be in the room for comfort, convenience, or an alleged increase in productivity was a reasonable trade? Not on your life.

Working alone may increase efficiency. I don’t see it increasing creativity.

Covid-19 response was an anomaly. Did it teach many of us a new set of behaviors, that we could accomplish things remotely if it was a necessity? It certainly did. Is the continuing right to work remotely an entitlement that is the result of that learning? Well, not exactly.

I suppose in an employment market where talent has unlimited options, the benefit of working remotely might be a trading card that management can offer to attract team members. Yet if management is only offering this benefit because it has no choice if positions are to be filled, how positive do you think management feels about that? Hiring managers want choices just like you want choices. When anything becomes a mandate, it often does so with a nagging amount of reservation.

One of the things I noticed when Covid first grounded us was how quickly and well our leadership team adapted to remote meetings. In many respects, I think it is the reason our company succeeded and curiously accelerated during Covid. Many colleagues at other companies weren’t as lucky. Some tragically saw their companies in demise, not only as a result of unprecedented business conditions but of the challenges in responding to those conditions with untested practices.

The more I thought about this, the more I was convinced that we succeeded because of the years we previously spent together in the room. Those many years of collaboration established a solid foundation for crisis management we could apply remotely. We were able to talk in shorthand because we had established that shorthand. We were able to use humor because we knew each other’s sensibilities and sensitivities. I couldn’t even imagine the idea of trying to onboard a VP into a remote setting, where I knew others were trying and failing at this.

Our team knew this management paradigm was intended to be temporary and that we would be back in person as soon as practicable. Personally, I couldn’t wait and was back in the office as soon as I could. We also didn’t overreact. We knew that five days a week in person for everyone no longer made sense because it had never made sense. It was obvious that forty or so required office hours was too broad a brush. We knew workplace equilibrium would work itself out, while we counted on individuals to make sense of their careers in tandem with company needs.

Moderation always seems like a better approach to consensus than absolutes. Individual decisions always seem preferable to sweeping mandates when inspiring people’s best work.

I had a sense that every individual would come to understand the value of being in the room. To be in the room is to absorb the skills you will call upon to address the next set of challenges you will face. To be in the room is a gift, perhaps not every day, but on the days that matter and will stay with you for a lifetime.

You may be arguing with me in your head. You may be telling yourself this is a new day, a different generation, a wiser and more inspired collective that embraces work-life balance and knows to mistrust corporations that don’t have their best interests at heart. You might be convinced that because technology advances have made remote work viable, we’d be silly not to ride the horse in the direction it seems to be going. You might be right, but I am always reminded of those very dangerous words that creep up every time I think they are going away forever: “This time is different.”

I have written before about leverage in getting your way. It can be an effective tactic as a matter of last resort, but it is seldom a path to trust, long-term relationships, and compounding progress. If the only reason you are allowed to work remotely is that you think your employer has no other choices, I wonder whether you really want to work for that company. If there is a mutual understanding about workplace arrangements that benefits you and your employer in agreeing to a schedule that helps you with childcare, quiet time to think on your own, and still leaves room for in-person collaboration, that’s one thing. If either side is making a demand of the other, that seems like a shaky platform to advance together.

Some types of professions like software engineering seem particularly well suited to remote working as has been evinced by decades of sharing libraries and contributing to enterprise projects, where most of the engineer’s time is spent on individually created program code that is later assembled with other modules. Even then, when I see software engineers in a room with marketing and finance professionals, I often see exponential progress in shorter windows of time.

Don’t undervalue intangibles. Learning to read a room can help you secure unexpected allies to support a controversial strategy. The most unassuming bits of advice acquired from unfamiliar colleagues in the breakroom can be life-changing. Lifelong friendships emerge and develop from unplanned acts of empathy and compassion. You can say all of that plus mentorship and coaching are available electronically and you’ll be right. The in-person impacts you might be underestimating are tone, degree, and happenstance.

When we are together, we learn from each other. We have peripheral vision that lets us see not just what Zoom or Teams puts on the video screen, but what catches our attention in the corner of our eye. We take in winning and losing arguments and approaches. We have the unique opportunity to establish and build company culture.

My advice: Don’t wait for the company directive, don’t even wait to be asked politely. If you have the opportunity, be in the room.

_______________

Photo: Pexels

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When Friends Rally

This will be a bit messier and less polished than my normal work. It’s timely and a moment is upon us. I may edit or add to this later, but I want to share it now.

It was a curious Christmas Eve. Somewhat out of the blue, an antisemitic leaflet was left outside our house. It referenced a claim that, “Every single aspect of the media is Jewish” and that “6 Jewish corporations own 96% of the media.” Even more curious, in smaller print it also stated that, “These flyers were distributed randomly without malicious intent.”

None of that requires much in the way of interpretation. The flyer was placed in a plastic bag anchored with small pebbles so it could be tossed from a passing car window (my guess) and not blow away. The cowardice of that free speech exercise is apparent.

As a matter of course I reported it to the local police, who informed me that many of these had been distributed in the neighborhood and my home was not singled out. That didn’t make it better, but it did give me reason to believe something more threatening was unlikely to follow. Remember, these are cowards who operate in the shadows. For me, free speech only has gravitas when it has a clear author willing to stand by the expression of their considered thoughts.

None of that is why I write this on Christmas Day. I write this because emerging from that heinous expression of bigotry was a mitzvah, a blessing of goodness. You see, as an author, I have been pounding out these posts for years and years, alongside three published novels, all of which likely add up to a somewhat progressive worldview. You might expect as much from the later generation of an immigrant family that sought freedom, opportunity, and acceptance in this imperfect but still idealistic place called America.

Well, guess what, I have all I wanted. The cowards lost. I won.

Here’s why.

Shortly after I received the ugly missive of antisemitism, I posted a photo of it on social media. You know that old expression, “sunlight is the best disinfectant.” It’s true.

I guess I wanted to warn others in my area that bad actors were doing malicious deeds on the seventh day of Hanukkah, which also happened to be Christmas Eve. I also wanted to share outrage with my community, as if to wonder how on such a sacred day that speaks to joy and peace, someone took it upon themselves to exploit that occasion for fear and hate.

I didn’t expect much response. I write a lot and never quite know how it lands. That’s the thing about being on this side of the screen. You compose thoughts, share them, sometimes you get a response, more often than not you don’t hear from people you know. They are busy. They get accustomed to seeing your posts and only occasionally comment.

If you write a lot, you do receive a fair amount of criticism from people you don’t know. Some of it is warranted. Some of it helps me to be a better writer. Sometimes it comes in the same form as the antisemitic leaflet delivered on Christmas Eve. If you offer a public point of view, incoming invective comes with the territory. The worst of it is anonymous, more cowardice, and you become largely immune to it. I had excellent teachers on this topic.

I don’t write for a response. As I’ve said many times, I write to breathe. The written word is air to me. It’s my breathing pattern. Whether you hear me or not, I still need to breathe.

To my surprise on this one, on busy Christmas Eve, you heard me. You responded, full-throated and magnificent. You reminded me that it matters to many of you that I do this, that I type these words, why each breath matters.

Here’s a sample of what you said on social media:

You know, there are many hundreds of us who have your back.

We are standing with you.

Oh no. No no no,

That’s awful, I’m sorry, Please keep safe.

Love to you and your family.

Wishing you much peace and safety.

May your light shine bright this Hanukkah season.

These heartening comments are still coming in and probably will be for a while. That’s because there are shared values we can count on in the circles we travel, and when one of us blows the whistle on malfeasance, our communities rise together in response.

When do we know we have made a difference? When friends rally.

To know there is a community standing in solidarity together is to know that one’s voice is being heard. We are not alone when we are attacked for race, gender, ethnicity, origin, age, preference, or any other identity trait that makes us who we are. We stand on that platform of diversity, acceptance, kindness, and reject all who stand against our freedom to embrace our living history and self-define without ignorant critique.

You heard my voice. I heard yours. You acknowledged me as someone who matters. The cowards drift into irrelevance.

Our community is strong. Our community is ours.

Isn’t that the message of the day, that in this world of constant conflict, the voice of love is the platform we celebrate? Yes, we celebrate the idea of peace—the peace that begins in our hearts, resonates through our community, repels the ignorance that would undermine our shared compassion, and returns to our hearts to rekindle the flame.

We light the menorah to remind us there is light in the world. The candles are iconic, a visual metaphor of commemoration. We are the light when we choose to be, when we empower each other, when we stand by each other, when we commit to build a better day as the reason for the season.

I deeply, profoundly thank you for reminding me what is too easy to forget, that our work is never done. It is best done together when we show each other how much we care.

I believe it’s one part coincidence and one part fate that today is both Christmas and the eighth night of Hanukkah. Whatever you are celebrating, or even if you’re not celebrating but just contemplating the potential for good in our troubled world, I write today to assure you it’s there if you look hard. People will surprise you out of nowhere if you let them.

So let that be.

As I wrote to my social media community: Stay vigilant, teach all who come your way the beauty of diversity, the power of compassion, and the healing strength of love.

_______________

Photo: Pixabay