At particular times a great deal of stupid people have a great deal of stupid money....  At intervals.... the money of these people—the blind capital, as we call it, of the country—is particularly large and craving; it seeks for someone to devour it, and there is a “plethora”; it finds someone, and there is “speculation”; it is devoured, and there is “panic.”—Walter Bagehot, regarding the Great Crash of 1929


If stupidity got us into this mess, why can’t it get us out?—Will Rogers


A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers—Lawrence G. McDonald, title of book



Following are the contents of the book for Lehman Brothers’ internal course Introduction to Management.  Though this spiral-bound book is 107 pages long, most of the pages is space for writing notes, and the rest is in the format of a Power Point presentation.  This means that there aren’t that many words on all those pages, but also that on many of the pages, the relationship between what’s on each page is shown by their placement on the page, and graphics.  Since this webpage must be laid out in HTML format, it will have to show these relationships in other ways.  The ideas in this course should be very clear here.

In Japan the financial meltdown is called the Lehman Shock, and they certainly were among the most irresponsible.  On April 15, 2009, Donald Trump said in an interview on Larry King Live, “I look at Wall Street and whether it’s Bear Stearns or Lehman Brothers, I was hearing that—oh, for years.  The guys at Lehman were the smartest guys on the Street.  They’re great geniuses and everything else.  Well, they’re all gonzo.  I mean, they’re—it’s—the firm was wiped out.  The head man is going to be fighting lawsuits for the rest of his life.”

The following is an advertisement from Lehman Brothers, in 2005:





“Stated Income” must mean what’s usually called “liars’ loans,” and “Low Doc” could be called “partial liars’ loans.”  But, of course, when businesses take too much risk in getting liars’ loans they seem merely excessively venturesome, while when working-class people do, they seem to be contemptuous and profoundly dangerous deadbeats.


(a barbecue apron from Lehman Brothers, in which high yield is a euphemism for high risk, but that means high excitement)


Yet the following introduction to management gives the sorts of ideas that would apply to very normal businesses, and talks rather frothily about people-skills.  This says that it’s based on research, which would have to include psychological research on how to get the best results from employees.  Like many standard psychological techniques, while this would improve things in a functional environment, any business that’s taking gonzo risks would have to be dysfunctional.  For example, the following instruction book includes, “Feelings not dealt with lead to agreements that do not stick,” “Respond to the feelings...  Reflect twice—for clarity,” and similar instructions about others’ feelings that, if they weren’t intended to get employees to serve the company better, would seem touchy-feely.  Sure, Time Magazine’s 25 People to Blame for the Financial Crisis starts its webpage on Fuld with, “The Gorilla of Wall Street, as Fuld was known, steered Lehman deep into the business of subprime mortgages, bankrolling lenders across the country that were making convoluted loans to questionable borrowers,” but such a person could still believe in empathy if research has proven that empathy within a company boosts morale.  Though Ayn Rand hated social workers, the section on empathy could even make good training for them.  One could only wonder how those who had a sense of the gonzo dangers, would have empathetically dealt with the feelings of co-workers who didn’t, especially since they were in the majority and they set the rules.

Of course, this empathy did apply to subordinates at work in order to “Leverage the Firm by being a team player,” (as  Lehman Brothers CEO Dick “There’s a Reason Why I’m Not Called Richard” Fuld, said, and was quoted in this book) but wouldn’t apply to the millions or billions of people around the world who’d be affected by Wall Street irrationally using too much leverage.  William D. Cohan’s book about the fall of Bear Stearns, House of Cards, A Tale of Hubris and Wretched Excess on Wall Street, begins its first chapter, The Ultimate Roach Motel, by saying that Bennet Sedacca, president of the Atlantic Advisors investment management company and hedge fund, announcing that credit default swaps were going bust especially for Bear and Lehman, “Lehman went from twenty-five to thirty-five times leveraged in one year.  And then they announce a big stock buyback at $65 a share and they sell stock at $38 a share.  I mean, they don’t know what they’re doing.  And yet they get rewarded for doing that.  It makes me sick.”



This book refers to management of salesmen, so this wasn’t just about those who make sure secretaries type what they’re supposed to.  Of course, we may never know what percentage of their interactions left the door open to unusually high risks, so maybe most of the time the frothy stuff applied, and only some of the time the unusual risk-management applied.  But if they set sane limits on some transactions but not others, that would have required even more training of the managers as to when they do and when they don’t allow liars’ loans, etc.  Obviously salesmen and their managers had a lot more empathy toward desires to get thrills through high-risk investments, than they had toward legitimate fears of such approaches.  One could also say that an introduction to management could mean only the people-skills, but at the same time, considering how gonzo the risks at Lehman Brothers were, I’d think that even an introduction to the management of that couldn’t look like an introduction to the nice management of mundane office personnel, as this one does.  This course certainly encourages the managers to use their own natural decision-making abilities, applied to leadership.  The appendix, “Lehman Leadership Profile,” includes, “Operates within the risk appetite of the Firm while achieving the best returns possible,” and, “Delivers the Firm to customers; provides the best resources, practices, and ideas from across the Firm,” so this includes the deliveries of the Stated Income and Low-Doc loans.  As Greenspan testified during his famous mea culpas in front of congress on October 23, 2008, “That is what I find most disturbing.  We are not dealing with people who are dumb.  We are dealing with, by far, the most sophisticated, thoughtful people about the way markets work who created the major problems,” and if a new Lehman’s manager were smart enough to realize that real estate values couldn’t remain so unnaturally high, that manager would have had big problems (though this would have been no problem if the managers were promoted from the optimistically deluded who already fit in at Lehman’s).  Then again, on April 20, 2009, Fortune Magazine ran an interview with Warren Buffett in which he said, “In the end banking is a very good business unless you do dumb things.  You get your money extraordinarily cheap and you don’t have to do dumb things.  But periodically banks do it, and they do it as a flock.”  In essence, stressing empathy in “gonzo” Lehman’s was something like stressing it in a crime syndicate.  Sure, that would increase the team spirit, but...

Also, as Frank Partnoy’s Infectious Greed, How Deceit and Risk Corrupted the Financial Markets says, “Wall Street is a dog-eat-dog world where, it is said, salesmen wear Milkbone underwear.”  Traders can raise their trading profits by lowering salesmen’s commissions, and are able to do so by estimating the values as what would suit themselves.  “One of a bank manager’s challenges is to keep the traders honest, and to keep the salesmen from killing the traders.”  If both the salesmen and the traders were of  the mentality of, “FIRE IT UP!  WITH LEHMAN BROTHERS HIGH YIELD,” it might have been hard to be empathetic toward both.

At some time or other, those who took the Introduction to Management course would have had to realize that what Lehman told them in their training is what people are supposed to believe is happening, while acceptance of gonzo risks is just the way that the real world works this time.  A section of this book is titled, “Successful Transitions—From Individual Contributor to Manager Leader,” so it could be possible that some of these people made the transition from individual sleazebag to leader of sleazebags, so the transition from normal to sleazebag wasn’t necessary.  One really would have to ask what was the general corporate culture of Lehman, and how this culture would have treated someone who expected responsibility.  In the New York Times’ series on what led to the financial meltdown, the article on Washington Mutual says, “[Sherri Zaback, who worked for John D. Parsons, supervisor at a WaMu mortgage processing center] ran applications through WaMu’s computer system for approval.  If she needed more information, she had to consult with a loan officer—which she described as an unpleasant experience. ‘They would be furious,’ Ms. Zaback said.  ‘They would put it on you, that they weren’t going to get paid if you stood in the way.’”  One could only imagine what, “Respond to the feelings...  Reflect twice—for clarity,” etc., would have looked like when addressing objections to irresponsibility, like hers.  Those who went through this management training course would have retained enough of their natural sense, that no doubt plenty of them had problems with the liars’ loans, unless they had the usual optimistic delusions that of course property prices would stay at those unnaturally high levels.

On October 9, 2008 CNN’s Anderson Cooper 360, announced that they were naming Fuldie as one of their Top Ten Culprits of the Collapse.  New York Times business columnist Joe Nocera said that when the mortgage market was starting to collapse, “Lehman wound up thinking people are making a mountain out of a molehill.  And if we go in now when everybody else is in a state of quasi-panic and buy up a lot of these things, we’ll make a lot of money.  And it was a bad bet.”  CNN correspondent Joe Johns said, “The doom mounted quickly.  In September, Lehman needed billions in cash to keep the company afloat.  But according to the Wall Street Journal, just five days before declaring bankruptcy, on a conference call to shareholders, executives were talking about selling assets but didn’t explicitly say anything about needing extra cash.”

Fuld testified before Congress, “No, sir, we did not mislead our investors.  And to the best of my ability at the time, given the information that I had, we made disclosures that we fully believed were accurate.”  Sean Egan of the Egan-Jones rating company responded, “Either he should have known that the company was in difficult circumstances or, if he did know and didn’t tell, it creates another problem.  So on the one hand, he is either a liar or else on the other hand, he is stupid.”

A Colossal Failure of Common Sense, by Lawrence G. McDonald, begins with the keynote quote from Abraham Lincoln, “A house divided against itself cannot stand,” includes a chapter titled King Richard Thunders Forward, which includes such claims as, “Now, Dick had either been born or had somehow evolved into a very strange character, remote from his key people, apparently allergic to the engine room of the business, and obsessively jealous of his hold on power,” and, “Larry and I were preparing the mother of all presentations, to convince the top Lehman executives that this ship must swerve away from the course set by Dick Fuld and Joe Gregory, who had not personally  been on the bridge for five years.”  This book also includes, “Either Dick Fuld or Joe Gregory had to go.  Together they formed a duo that could no longer be trusted, principally because it seemed neither of them could stand to be among truly clever people,”  “Fuld, predictably, was furious.  He summoned up a pugilistic expression, drawing on his bottomless wells of anger and resentment, that air of suppressed violence that had gained him so many boardroom victories and lost him so many friends,” and, “There were dozens and dozens of extremely profitable business engines and departments in the firm.  It was like 24,992 people making dough and 8 losing it.”

Sure, a CEO like that might train his managers to be empathetic since then the workers could work with each other better, but those same people would have to be empathetic under those rules.  Then again, the website, obviously not a bunch of whiners, says, “He leads Lehman like an army and there are few who have the tough-guy reputation that Fuld brings to the office every day,” so these expectations that his underlings be empathetic might be something like Ayn Rand’s conceptions of altruism being a form of self-sacrifice, something like Mother Teresa’s spiritual advisor being sociopathic pedo-priest Daniel McGuire.  Or, maybe this empathy tended to take the form of enabling the reckless, in which empathy toward them would seem plenty acceptable, but empathy toward the responsible would have seemed to be empathy toward wimps, which might sound nice, but only losers insist on this sort of niceness.  (Of course, for all we know, maybe Fuldie had the sort of traumatic childhood that leads to both cynicism in his dealings with others, and a need for empathetic contact with others.)

When Condé Nast’s Portfolio, in consultation with a panel of business-school professors, decided on a list of “the 20 Worst CEOs of All Time,” Fuldie was in first place.  As the Portfolio staff wrote, “Fuld’s reckless risk-taking may have been typical of Wall Street, but his refusal to acknowledge that his firm was in trouble—and take the steps necessary to save it—was beyond the pale.”

On another webpage on this website, I have another internal Lehman Brothers’ instruction book, this one for salesmen, which teaches the same sort of interpersonal connections.  One would expect that from any business.  Probably even Enron expected that of its salesmen.  At the same time, what Lehman’s salesmen sold with their winning ways, could have been as unsafe as those liars’ loans.  Also, both this instruction book, and the “presentation tips” instruction book, have this strange tendency to leave periods off of the end of a lot of sentences, to refer to Lehman as “the Firm,” and to capitalize the letter at the beginning of some words that they want to emphasize, but aren’t proper nouns.  That book includes some of the same ideas, such as open- or closed-ended questions, our “other voices,” having a winning mindset, and being aware of the other person’s feelings.  Both books give a bunch of short statements, obviously leaving the in-depth explanation up to the accompanying lectures, though both were addressed to people who either made the gonzo sales or managed this sort of thing, so you’d think that efforts to instruct them would have to make sure they understand how to handle this.  Therefore, both books must have originated in-house.  As of yet, I haven’t yet found any other Wall-Street-sleazebag firms’ in-house training books being sold on e-bay, so this may be an innovation of Lehman’s.  I originally put the book for Lehman’s salesmen on my website so that the readers could get advice that could help them in speeches programs and other communication, but I’d also seen so much on what Lehman was selling, that I realized that that book could also serve as a great illustration of how easy it was to cause a major disaster (that would have been a lot worse without the bailouts of those who caused it).  Likewise, I originally put this book on my website as an illustration of how easy it was to cause this disaster (even managers with such saccharine marching orders could do it), yet this could also serve as a guide that anyone could use both to deal with subordinates in a less hierarchical fashion and even to talk with your peers.  Of course, while standard Introduction to Management books would no doubt stress eliciting the cooperation of those who you manage, they probably wouldn’t stress empathy this much.


(Hey, I’ve got two inside guides on how to succeed and be popular, from a company that, until recently, looked like super-winners!)


As The Two Trillion Dollar Meltdown, by Charles R. Morris, says, the financial crisis resulted from deregulation, blind faith in computerized financial models, and,

A second fault line is a worsening of the “Agency” problem—or the problem of ensuring that an employee, a contractor, or a company performing a service doesn’t act against your interest.  A young trader named Nick Leeson destroyed Barings Bank in 1997 by taking exorbitant trading risks.  By consensus, that was Barings’ own fault.  Highly compensated traders playing with the house’s money are an extreme, and well-known, case of the Agency problem, so most trading houses have developed elaborate risk control procedures to protect themselves.  Barings didn’t, and paid for it.

In the extreme economic bubble that led to the financial meltdown, this sort of caution was obviously very necessary, not only regarding the low-level traders, but also regarding even the highest-ranking executives.  Since they, also, are employees of the shareholders, the executives’ being motivated to make money in ways that hurt the shareholders in the long run, is another example of the Agency problem.  The managers at Lehman’s, just like the managers at the other businesses responsible for the meltdown, both were motivated to take the risks that would most compensate them, and saw everyone else playing the same game.

As Brad Hintz, an analyst at Sanford C. Bernstein & Co., said just before Lehman failed, “Lehman’s problem is mortgages.  They grew the balance sheet too fast.  While diversification has been pretty good in recent years, Lehman still doesn’t have the investment banking or asset management businesses at the same level as rivals.”

As Walter Gerasimowicz, who had worked at Lehman as an investment strategist, said just after Lehman collapsed, “It makes me rather sad to see this organization brought to its knees as the result of what I’ll call a lack of control, poor management of internal risk and ultimate self-interest.” 

As late as December 13, 2007, Fuld said, “Our global franchise and brand have never been stronger, and our record results for the year reflect the continued diversified growth of our businesses,” though in June of 2008, he said to some friends, “To put your head under the covers and hide is a useless exercise.  When you get dealt a hand, react to it.  Don’t pretend it’s going to go away.  Create a plan, execute it and get back to work.”

And this was the climate under which those who got this introduction to management, were supposed to manage empathetically.  Someone who actually attended the management course added some of the facts presented in the lectures.




Lehman Brothers Leadership Development

Introduction to Management
VP Leadership Development
SVP Leadership and Management Development
MD Leadership and Management Development

Global Themes

● Knowing oneself and one’s preferred style
● Knowing the key interpersonal skills to be successful
● Knowing how to use this knowledge to influence the organization around you

Welcome to the Course

● Since 2001 over 700 managers globally have participated in this course
● Last year over 300 participated globally
● And this year over 300 managers globally will participate
●Two key learning modules in this course are derived from material in the MD Leadership Program

As a Result of Participating in This Course

You will:

Conceptual Framework

Recognize: Learning Styles Inventory, Feedback from Colleagues

Mobilize: Development Plan

Verbalize: Role Plays, Group Discussions, “Site/Central”

Making the Transition

Individual Contributor to Influencer:

Formal Role

● Manager
● Supervisor

Informal Role

● Team Leader
● Project Leader

Table Group Discussion

● Describe Your personal transition to Manager/Leader

• Formal Role?
• Informal Role?
• Going through now?
• Have recently gone through?
• Anticipate going through shortly?

● What are/were your biggest challenges?

Discuss with Group
Capture Challenges on Flip Chart
Report Out to the class

Successful Transitions From Individual Contributor To Manager/Leader

Examine, consider and apply research that will help you—

● Gain clarity around your role of manager/leader
● Understand the challenges of making the transition from individual contributor to a successful manager/leader
● Formulate a plan for capturing the new set of resources and skills needed to make it happen

The Role of Manager/Leader

A Transformation of Identity

Individual Contributor to Manager/Leader

A specialist and doer.  Directly performs specific technical tasks.  Strongly identified with those tasks.


A generalist and agenda setter.  Orchestrates diverse tasks.  Strongly identified with a business or the management profession.


Acts individually.  Gets things done mostly by one’s own efforts.  Strongly identified as relatively independent.


A network builder.  Gets things done through others.  Strongly identified as highly interdependent.


Do you know how hard it is to be the boss, when you are so out of control!  It’s hard to verbalize’s the feeling you get when you have a child.  On day X minus 1, you still don’t have a child.  On day X, all of a sudden you’re a mother or a father and you’re supposed to know everything there is to know about taking care of this kid.

Linda Hill
Becoming a Manager Mastery of a New Identity
Harvard Business School Press, 1992 Penguin Books, 1993

Understanding the Transition

● A change in mindset

● A new set of skills and resources

● Establishing key relationships

● Neither Quick nor Easy

● Stressful

The Four Stages of Change

Denial, to Resistance, to Exploration, to Commitment

Moving Yourself Through the Stages

Be Positive—Job satisfaction increases, judgment is sharper, mental and physical well being is stronger—people feed off positive energy

Be Your Own Best Manager—Stress is bound to rise during periods of change. Be aware of self-induced pressure.  You can’t solve every problem, nor should you try.

Take Care Of Yourself—Eat right, get enough sleep, and take a little time each day to recharge and gain perspective

Seek Help When You Need It—You have resources all around you—use them—don’t go it alone

Moving Yourself Through the Stages


● Gather information
● Avoid rumor and speculation
● Take time for personal reflection


● Accept
● Build support, seek emotional support


● Realize that agenda may change
● Think outside the box
● Set short-term goals


● Continually revisit and refine
● Continually expand skills and knowledge


I don’t know how much you really can teach a person about management.  It’s like teaching someone how to ride a bike.  You can go through the motions.  You can understand perfectly well what it is you need to do—that you need to get on the bike, hold on to the handlebars, move your feet so that you turn the pedals just so, and go down the road to that tree over there.

But that still doesn’t teach you how to balance...  You can give them theory, you can give them a good feel for it, and work on the individual skills.  But until they get on the bike and start riding it and fall down a couple of times themselves, they just can’t know it.

Linda Hill
Becoming a Manager Mastery of a New Identity

Critical Resources

● Experiences

● A Network of Relationships

● Formal Resources and Training


Table Group Discussion

Individually, think about experiences that you have had that will help you make the transition

● Discuss with Group
● Capture Experiences on Flip Chart

Network of Relationships

Individual Reflection

● Think about the key people who can help you reinvent yourself as a leader.
● Create a list of at least 5 individuals.

Formal Training

● Corporate Policies, Procedures and Resources
● Insight into Corporate Culture
● Apply new knowledge and skills
● Safe environment in which to receive feedback
● Network Building—Peers
● Time and Space to Reflect

Formal Training
Introduction to Management

● Successful Transitions from Individual Contributor to Manager
● Learning Styles
● Interpersonal Skills
● Effective Delegation
● Giving and Receiving Feedback
● Leadership at Lehman Brothers

Some Final Thoughts

● Make the commitment to a new Identity and Mindset.
        See yourself through other “filters”
● Familiarize yourself with the new realities and challenges of managerial work.
        Build your Network
● Seek opportunities to exercise leadership.
        Step up
Make time to think about it.  Engage in Introspection.
        Consider keeping a journal
● Your suggestions?

● What insights do you have about your personal transition to Manager/Leader?

● How will you apply what you’ve learned?

Information Processing Preferences
(aka Learning Styles)

In this context, a preference is the way an individual decides to absorb, process and act upon information and experiences

It is one aspect of learning.

Learning Styles

Action versus Reflection

Experiencing versus Thinking

Experiencing + Action = Accommodating (Doing)
Experiencing + Reflection = Diverging (Brainstorming)
Thinking + Action = Converging (Problem Solving)
Thinking + Reflection = Assimilating (Integrating)

Basic Strengths

Accommodating (Doing) =

● Getting things done
● Leading
● Taking Risks
● Initiating
● Adaptive/Practical

Diverging (Brainstorming) =

● Being Imaginative
● Understanding people
● Recognizing Problems
● Brainstorming
● Being open-minded

Converging (Problem Solving) =

● Solving Problems
● Making Decisions
● Deductive Reasoning
● Defining Problems
● Being Logical

Assimilating (Integrating) =

● Planning
● Creating Models
● Defining Problems
● Developing Theories
● Being Patient

Communicating Across Preferences

Accommodating (Doing) =

● Emphasize Action Steps
● Give them a chance to demonstrate

Diverging (Brainstorming) =

● Emphasize real-life examples
● Give them a chance to explore

Converging (Problem Solving) =

● Emphasize practical plans
● Give them a chance to work out a solution

Assimilating (Integrating) =

● Emphasize the big picture
● Give them a chance to describe connections

Interpersonal Skills

Communication Skills

● Encouraging
● Listening
● Conforming
● Questioning

Interpersonal Skills Framework

● Probe & Clarify
● Actively Listening
● Advocate Position
● Ask Questions

Recognize the Power of Mindsets

They Serve Us...

● They enable us to make sense of our experience
● They help us make predictions
● They simplify the world

...And limit us

● They often oversimplify the world
● They are difficult to change
● They can be self-fulfilling

Learn to See the “Awareness Gap”

What we think we do

● “Operate with an open agenda”
● Disclose our data, reasoning, and feelings
● Listen to others’ perspectives with an open mind

What we actually do

● Operate with a hidden agenda
● Withhold our data, reasoning, feelings
● Prejudge others’ perspectives

IP Skills Framework

● Advocate Position
● Actively Listen
● Ask Questions
● Probe and clarify (with Encouraging and Confirming)

Along with a Frame and a Bridge

Frame: State the context and high-level objectives of the interaction: makes differences in mindset and intention explicit and visible at the outset.

Bridge: Connect with the other person.  Develop a shared understanding of your different perspectives and then work to integrate those perspectives.

Advocate Position: Make sure your position is clear—State what’s important to you—And remember to ask the other person what’s important to him or her.

Actively Listen: Listen for Facts and Feelings: Paraphrase content and acknowledge feelings.

Effective Two-Way Communication Requires Active Listening

If we listen only to the rational side (What is said, content), we get half the message, but with the emotional level (How it is said, feeling) included, we have all the data

Active Listening Has Two Ingredients


● The ability to understand the other’s view of reality, even though it is different from ours
● The ability to identify and understand the other’s feelings


● The ability to take the other person’s position as true for him or her, irrespective of any agreement

Feelings not dealt with lead to agreements that do not stick.

Active Listening Steps

● Recognize the other person’s feelings

— Listen for the feeling messages - the “music” behind the words
— Identify for yourself the feelings you hear

● Respond to the feelings

— Reflect, in a non-threatening way, the feeling you hear expressed (it’s okay to be wrong—the other person will help you clarify)
— Help the person put words on feelings
— Reflect twice—for clarity
— Use accepting language

● Respond to content and connect it with the feeling

— Help the other connect with the feeling and what caused it
— Listen to the message as a whole—the facts and the feelings surrounding them

● Help the other state the whole problem

— Get a clear definition of both aspects of the problem
— Make sure that your understanding is accurate

Ask Questions: First use Open-Ended and High Gain questions to get the most meaningful information.
Then use Closed-Ended questions when you are trying to gather the details.

High Gain Questions

Brief and clear
Relevant to the person’s situation and position

● Motivate people to:

— Reflect
— Evaluate or analyze
— Speculate
— Express feelings

High Gain Questions: Examples


● “You saved that account.  What do you think was the turning point?”

Evaluate or analyze

● “What is your rationale for making that your top priority?”


● “If you could do it all again, what would you do differently?”

Express feelings

● “How did that make you feel?”

Activity: High Gain Questions

● Think about a personal challenge you anticipate as part of your transition to Manager/Leader responsibilities

• Consider Network building
• Consider Gathering additional information

● Develop 1 or 2 high-gain questions
● Practice your questions with your partner
● Get advice

Probe and Clarify (Encouraging, Confirming): Take time to better understand the other person’s position or perspective—don’t make assumptions.

The Impact of our ‘Other’ Voices

● In one-on-one interactions, what percentage of meaning do you think people derive from:

— The spoken word? (7%)
— The tone of voice? (38%)
— Facial expression and body language? (55%)

Relating to Former Peers

● Recognize that Authority affects Relationships
● Set Boundaries and Expectations clearly
● Don’t take it Personally
● Don’t try to assert your authority all at once
● Learn from Past Experience
● Talk to others with Similar Experience
● Create a Joint Vision with your employees

Interpersonal Skills—Personal Reflections

● What insights do you have about the way you communicate with others?
● How will you apply what you’ve learned?


● Who’s ever been involved in a corporate restructuring?
● How did you feel while that was going on?

● This is a timed group exercise that tests individual reactions to change either as a:

— Manager/Leader
— Staff Member
— Observer

Stand Up and Delegate!

Stand in one of the two corners where you are most comfortable, “Do it myself,” or “Let/Ask someone to do it”

With your Group

● Discuss the reasons for why you are where you are.
● Discuss the Advantages and Disadvantages

Effective Delegation: Planning

1. Assess the stretch

— Focus on the Skill and Will
— Determine the stretch level

2. Delegate

— Let the team member take the lead, as appropriate
— Check for clarity throughout
— Address concerns

• Question and Encourage
• Express confidence

3. Monitor Progress

— Ensure that the task is on track
— Address concerns

Step 1: Assessing the Stretch (Skill & Will)

● Look at the person’s

— Skills (Technical and Interpersonal)
— Experience
— Knowledge of the organization
— Confidence
— Time and resources available

● Identify a stretch level

Step 2: Delegate

Decide for how far along this process you will delegate responsibility to others to decide: Set Context and Goal, Specify Results, What to Do, How to Do, Do

Conducting the Discussion

● Set Context and Goal
● Specify Desired Results
● What needs to be done?
● How should it be done?
● Address Concerns

Step 3: Monitoring Progress

How Often Depends On

● Complexity of the task and experience level of the team member

● Check to see whether the team member

— Is on schedule
— Has or will encounter any obstacles
— Is getting the necessary support
— Is confident about their ability to accomplish the task

Addressing Concerns

Team Member

● Tries to give the task back
● Isn’t making progress
● Constantly asks for more advice than you feel is necessary
● Says stakeholders don’t accept his or her authority

Effective Delegation

Think about a major deliverable for you this year.  Working with your partner:

● Identify what you can delegate

● Develop your plan

• Identify the team member
• Identify the stretch level
• Identify the delegation level
• Discuss concerns

Giving Feedback

Group Discussion: Think of feedback you’ve given to others and feedback you’ve received from others

What has been effective?
What has not worked well?

The Evolution of Feedback

In the Beginning...  And Then...  Today...

Barriers to Giving Feedback


● Lack of time
● Lack of space
● Internal process/procedure
● Lack of training


● Your personal feelings, opinions, beliefs and attitudes

— Fear of conflict
— Fear of losing a key player

● Embarrassment about having let the situation get this far

— Sense that the recipient is not interested in the feedback
— Fear that giving feedback will mean having to receive it as well

It may help us if we change out mindset about feedback, especially critical feedback—

● Recognize that most people do, in fact, want to improve and therefore want feedback

• Rather than view feedback as criticism...
• Think of it as information...
• Information that we share with each other to build individual and team success.

Types of Feedback

● Positive (Motivational) Feedback

— Reinforces that employees are doing things right and doing the right things

● Developmental (Formative) Feedback

— Helps employees to get to the next job or level of responsibility
— Issues that will have an impact on the individual’s career

● Critical (Corrective) Feedback

— Immediate “Fix it Now” situations
— Immediate Course Corrections

Feedback Model

Frame: Describe The Situation and the Specific Behavior

Bridge: Acknowledge The Impact and Why it matters

Put these both together, and you get: Suggestions/Change Direction


Describe the Behavior (the exact behavior that is problematic or praiseworthy)
Examples: “When you...,” “I observed you...,” “It was great when I saw...”

Acknowledge the Impact (what the impact of the other’s behavior is: acknowledging impact is equally important when giving reinforcing/positive feedback)
Examples: “And the impact of that was...,” “I noticed that...,” “It helped me to...”

Specify Suggestion/Direction (ask explicitly for a different, specified behavior or a continuation of the same behavior)
Examples: “What I would prefer is...,” “What I need is...,” “What I liked was...”

Giving Feedback—

● Have a Plan

● Time your Feedback

● Limit feedback to no more than two key areas

● Use “I” messages

● Avoid the sandwich method of feedback

● Consider feedback a two-way street

● Eliminate BUT from your feedback vocabulary—substitute AND

Tips for Handling Difficult Feedback Situations

● Remain patient and objective—manage your own emotion

● Let the person vent a bit—Focus on Active Listening

• Facts
• Feelings

• Question
• Probe/Clarify

● If appropriate, correct misinformation

• Re-Frame if Necessary
• Re-Advocate if Necessary

● Focus on the future—Bridge to mutual problem solving

Providing Feedback—Practice

● Table Triads

● Three rounds

● Each person gets a chance to play all three roles

—A feedback giver
—A feedback receiver
—A feedback observer / Time Keeper

Barriers to Receiving Feedback

● Lack of private space
● Rules/procedures about who is responsible
● Fear that you may have been perceived to have failed
● Fear of criticism
● Belief that feedback is unnecessary
● Lack of confidence in your own skills and abilities

How to Ask for and Receive Feedback


● Know in advance specifically what you want to learn from the feedback


● Do you—and the other person—have the time?
● Are you—and the other person—ready?


● Be aware of appearances


● “What did I do that helped and/or what could I have done better?” versus “How’m I doing?”


● Make asking for feedback routine

Determining Your Response to Feedback

● Actively Listen to Feedback

• Keep an open mind
• Assume good intentions
• Ask questions—Probe and Clarify
• Write it down

● Determine validity for you

● Evaluate what is actionable

• Try it on

● Establish importance and value

Leadership at Lehman Brothers

Group Discussion

● Think of the best leaders you have ever worked with

— What leadership behaviors do they employ most effectively?

— What observable impact do their leadership behaviors have:

• On people they manage and interact with?
• On their own ability to achieve results?


Dick Fuld


...on Leadership



Leadership at Lehman Brothers

Reflections on Leadership

● Know your business

● Leverage the Firm by being a team player

● Always surround yourself with the best people

● Lead by example

—Critical Qualities of Leadership—Dick Fuld speaking to the 1st MD Leadership class in June, 2001

Burke-Litwin Model—Where does an organization’s culture come from?

From the individual, to Culture/Climate, to Motivation/Performance, to Bottom Line Results

Personal Reflections on the Management Leadership Program

I plan to start:

I plan to stop:

I plan to continue:


Lehman Leadership Profile

Our Firm

● Lives the mission... connects it to business execution
● Promotes & protects the Firm... its brand, culture & economic health
● Fosters teamwork & trust across the Firm
● Enacts a powerful future for the Firm through vision & strategy

Our Clients

● Delivers the Firm to customers; provides the best resources, practices, and ideas from across the Firm
● Constantly seeks to understand what’s on the customer’s mind, runs the business accordingly
● Drives for origination expansion... with existing and prospective customers

Our Shareholders

● Acts as a shareholder... keeps expenses lean while investing in the future
● Operates within the risk appetite of the Firm while achieving the best returns possible

Our People

● Recruits the best people; assimilates & mentors them effectively
● Demonstrates respect for others and for work/life balance and diversity... cares
● Develops his/her people... provides for stretch assignments, training, succession
● Sets a high performance bar, and makes tough and timely decisions on poor performers
● Provides regular feedback & accountability, ties them to objectives and metrics
● Builds global and diverse teams & capability

Personal Leadership

● Acts with the highest integrity... has the courage to do the right thing
● Is a good and committed communicator... with employees, clients, partners
● Challenges outdated conventions, searches for opportunities to change & grow
● Keeps ego in check... is viewed as approachable & open minded
● Makes him/herself visible and available... to clients, employees, and in regions, communities











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Men Dying for Love

On Doping

“Oh, Yeah?” Upbeat Echoes from the First Great Stock Market Crash

Victim Correction as a Panacea, the Summary (Page 1)

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Cancer Victims Corrected Too

Victim Correction as a Panacea

 Documentation On the Social Problem of Unnaturally Rampant Depression

 Standard Rationales for Victim Correction as a Panacea

 Schopenhauer on Predators

 Emphasis on Victim-Self-Blaming

Darwinist Lehman Brothers’ INSIDE Sales Tips

Top of Darwinist Lehman Brothers’ INSIDE Introduction to Management Book

Out of the Same Mold as the Great Crash of 2008

Message for Intellectuals in the Islamic World

Candace Newmaker’s Experience

Breaking Important Confidences for Your Own Good

A Glimpse Into the Soul of Victim Correction

Cigarette Industry and Victim Correction

Niebuhr’s Ideas on Our Nature and Destiny

Herbal Experiences for Women

Some Ideas for Rapport