An article in The Economist (October 5, 2006)* highlights the value of "brainpower (both natural and trained) and especially the ability to think creatively."  It states that "the value of 'intangible' assets - everything from skilled workers to patents to know-how - has ballooned (since 1980) from 20% of the value of companies in the S&P 500 to 70% today."  Also that "the proportion of American workers doing jobs that call for complex skills has grown three times as fast as employment in general."

Every year's different. But, 2009 looks like being really different. For many, the most challenging year ever. So, let's cut to the chase: as you return to work, which of your stakeholders is most frightened - in relation to their dealings with you and your business? Is it customers, employees, suppliers or, perhaps, your bankers? And, what are you going to do to ensure they don't abandon you?

If you were putting together a football team, would you select only people, who play the same position? Probably not. But, that’s what we often do with business teams. No, let's not ask Jenny, she's rather different, and she's not an engineer; and, Fred, he’s only interested in sales. We don’t want anyone who rocks the boat – in other words, with different or confronting views.

Think of your favourite sporting figure!  Who's their coach?  Call to mind how they watch each play or shot – then gently (often almost invisibly) send a message: to relax, focus, push harder or whatever’s necessary.  It's powerful stuff. 

As children, we learnt about rewards.  We got dessert, if we finished our spinach.  We went to the fair, if our rooms were tidy.  It's not surprising therefore that as adults, incentives still work for most of us. 

You won't become famous by being efficient.  It’s too mechanical.  But leaders are brought down by the opposite.  Inefficiency is something your detractors can point to.  It annoys – and offends – people.  No one likes their time being wasted. 

If you can’t keep up, you're part of the problem not the solution.  And, this is true for leaders, as for anyone else.  If you don't understand how your business works today – the market trends, new technologies, economic drivers and so on – then, people won't want to follow you.  As in a primitive tribe, they’ll leave you to die. 

Benchmarking and intellectual property are modern buzzwords.  No business plan or conference is complete without them.  But, as with all jargon, they're more talked of than seriously applied.  Why?  Because, application is hard work.  And, benchmarking leads to comparing my company, division or team with others.  And, that's potentially embarrassing.  So, let's talk but perhaps not do too much. 

Without profit, cash dries up, investment stops and the business fails.  For CEOs, profitability and its supporting measures, such as cash flow and return on investment, are a constant focus.  They’re the business's vital signs: corporate blood count and heart rate.  And, particularly important for small businesses with thinner reserves.

The legendary King Midas had a special gift.  Everything he touched turned to gold.  Sounds great, but it wasn’t good for his diet - and he died.  However today, having the "Midas touch" means the ability to make money.  And, many business leaders have this special skill.  They smell what's profitable and what's not.

I've got clients I've worked with for decades.  This may reflect badly on their judgement.  But, for me, it’s a source of great pleasure.  I understand them and their organisation; and, how they think; what they value; when to listen and when to talk; and, in some cases, when to shout.  This enables me to add greater value.

Nature abhors a vacuum.  Particularly, an information blackout.  And, if you let one arise, it may quickly fill with "good stories" put about by competitors and enemies. 

Which do you prefer: an afternoon at the football; or, an evening at the symphony?  Either way, you'll see teamwork in action.  And, perhaps that's the reason so many highly effective leaders have experience of team sports or other team activities. 

I use taxis a lot.  On rare occasions, I step in and am immediately struck by the cleanliness and polish, the smooth running engine, and the useful gadgets the owner has added.  He or she is normally very polite and clearly proud of their chariot.  And, such cabs instead of aging tend to get better with time.

In a recent leadership survey, respondents told me their most common problem was dealing with difficult employees.  People, who for one reason or another, didn't want to sign-on, cooperate or pull their weight.  This is interesting, since the only thing a leader has to have is followers.  So, if any are opting out, then I’m not a leader.  At least, for them.  Hands up if you’ve ever had this problem!  I have, and all too often. 

Alexander the Great is one of history's great leaders. Two thousand years ago, at the head of his Macedonian army, he unified Greece. And, then led a combined army to conquer their ancient enemy, the Persians. The objectives were clear and it all made sense for his generals and troops. However, after four years, he was still dragging them eastward - arriving eventually in northern India. But, his army no longer cared. Alexander was forced to turn back.

We've all done it: rushed to the shops and come back without something.  And, there's always a reason: someone distracted us, or the phone rang.  But, the real reason is we didn't have a list.  That simplest of plans.

Our skeleton provides the structure for our body.  Without it, we’d be a wobbly heap of flesh on the floor.  The same is true for organisations.  If the structure isn't clear, it's hard to make things hold together.  What am I responsible for?  Who's my boss?  Who are my peers?  Who are the subordinates I'm responsible for?  These are amongst the first questions we ask in relation to a new job.

When I pass a mirror, I often check how I look.  Vanity?  Probably.  Yet, it may tell me to straighten my tie or tidy my hair.  But, what I need more than a snapshot of my appearance is a mirror showing me how I behave; and, its impact on others.

New ways often bring new words; or reinvigorate old ones.  "Betterment" is a case of the latter - and something every leader must deliver.  A strategic rethink may set a whole new direction for your business.  However, between these major shifts, there's lots of room for innovation and upgrades.  That's betterment.

General Motors was once a paragon of American business.  It's now in serious decline.  Its plight illustrates what a famous economist called “creative destruction.”  New industries, products and services rise to prominence; but, later lose their traction.  Horse-drawn carriages gave way to automobiles - ushering in gas stations but destroying buggy-whip manufacturers.  Gas guzzlers had their time on the road, but were overtaken by energy-efficient compacts.  And now hybrids; and, so on.

We've all seen the graph.  Starting low at the left, it rises little over the centuries.  Then, in the last hundred years, begins to rise at an alarming rate.  And today, climbs almost vertically – whether plotting the number of patents, the sale of mobile phones or the growth of online commerce. 

We all believe in honesty. And, for most of us, this disbars stealing from colleagues or our employer. But, what about failing to pull our weight on a team project or using work time to pursue personal interests? We've all done it. And, in that sense, I haven't always been honest. And, that's possibly true for most of us.

The chameleon lizard changes colour with its environment.  As a leader, you have to do much more.  When the world changes, you have to transform your organisation and how it operates.  Otherwise, it may fail.  And, to start the organisational change, you have to change.  New situations bring new leadership challenges. 

For many small business owners, survival is an ever-present issue.  There are so many challenges.  Finding customers.  Delivering the product or service.  Holding good staff.  Managing cash and so much else.  What's the key?  To staying afloat - and, more importantly, growing and succeeding? 

Talk to any soldier and they'll tell you it's frontline troops, not generals, who fight the battles.  HQ may set direction and define key goals but it's platoon leaders and their troops, who go there.  They're the ones, who reconnoitre, take territory, dig in and fight.  Now, business isn't warfare.  But, the metaphor has its place. 

My father had an engineering business - making furnaces and other products.  And, I worked summers in factories, while studying engineering.  So, I love that hot, noisy world of clanging metal as it's formed and worked with presses and punches.

Action is the language of leadership.  As elsewhere in life, it's what you do that counts.  Yes, you need to meet with people and talk a lot.  But, the bottom line is "walking the talk."  Action, not theory. 

Why do organisations fail?  Or, succeed?  Breakthrough technology may help.  So can low-cost production.  Or, superb marketing.  But behind all this, one finds leadership.  Whether it's Murdoch, Gates or Mittal driving growth and achievement; or, Wagoner, Lay or others causing their companies to stumble.  But, their's are huge global businesses. 

Think of the all-time favourite stories.  Many describe a heroic journey: a man or woman leading colleagues in pursuit of an exciting goal.  In comparison, being a leader in business is not usually heroic.  You don’t have to fight dragons or dive to the bottom of the sea.  However, as leader of any team, you share one thing in common with the legendary leaders.  There’s no journey, if people won’t follow. 

Jack Welch, Carly Fiorina, Warren Buffett!  These are the centrefold players, big-ticket stars, the leadership fashion models.  We read their names in leadership articles.  Why?  Big names sell subscriptions.  But, the Fortune 500 companies employ just 500 chief executives.  So, what about the rest of us, with names like yours and mine, that most people never hear? 

To understand Italian opera, you only need five words - or, so they say.  Here's the list: morte (death), amore (love), maledizione (curse), adio (farewell) and andiamo (let's go).  Supposedly, these will guide you through any romantic tale. 

How was your last leadership performance review?  And, feedback from colleagues?  Was the employee survey result less positive than you'd like?

What's the secret to being chosen?  Sadly, there's no one answer.  But there are sensible pointers.  The right experience and qualification; presenting well; and, writing a good resumé.  But years of experience (as both an executive and consultant) tell me the acid test is record of consistently delivering results. 

Think of big corporate disasters you've known or read about.  What was the cause?  Bad strategy, wrong business model, inefficiency, bad luck?  Not in my experience.  Most often, the core issue is flawed human beings - and, at the top. 

Are you a leader or a manager?  And, what's the difference?  For me, the distinction is one of degree not kind.  Most managers spend time leading; and, leaders also manage. 

Frugality is admired. And, necessity (as they say) is the mother of invention. But often, too much is made of scarcity. The extreme being the romantic notion of the starving artist slaving in a garret and producing works of enduring social value.