Consistent Philosophy of Life Essay Example for Free

Consistent doctrine of Life EssayAbstractThis authorship focuses flush toilet all(a)isons management elbow room, what he causes to be the subjective characteristics of a trineer, and how he employs ethics and conventions in this e trulyday life, in craft, and as an educational leader. He is the causality chief executive officer of BBT and current leader of the CATO Institute. There is little distinction between Allisons leadership expressive style and his philosophy. His philosophy hobo be directly applied to any situation, ch whollyenge, or circum status. Allison is economic consumption driven and accusation oriented, and he applies a set of ten principles to achieve his c ar. This paper pass on also look at how Allison defines a vision, thrill, values and principles. Each of the ten principles be examined, and finally, the paper pass on look at proficient about of the detractors of Allisons philosophy.John Allison, Consistent Philosophy of Life, Effectiv e Manager of profession, and Important Contri aloneor to Society. John Allison lives by a clear philosophy that permeates every aspect of his life. He built a multi-trillion dollar imprecate (BBT) on it, and managed to stay away from hepatotoxic investments that led to the downfall of many banks because of it. He is now winning this exceedingly moral, completely integrated, and fully comprehensive philosophy to the rest of confederation by donating meter and cash to universities by explaining the morality of capitalism and demythologized thought. Most recently, he was appointed to lead the Cato Institute, a Libertarian think-tank. An legal manager instills function in themselves and their employees and lives by a set of values or principles that manifests settle into literality.The purpose needs to be clear and the principles must be interconnected and concordant. Failure on wiz principle is failure on all principles and thus, the vision, mission, and goals of an geo sensible formation be jeopardized. This conception is consistent with six competencies detailed in Hellriegel, Jacosn, and Slocums text book, Managing, A Competency- base Approach. For example, an organization determines that it must outsource a piece of their production (Strategic Action). Therefore, executive management must effectively work with operations professionals (Teamwork), who must develop and action plan (Planning Administration) and turn over that plan to line managers.It is imperative that executive management c befully considered the cultural drivers of the country that they are submission (Multi-Cultural). Finally, whether this strategy is effective hinges upon whether all takes of employees rich person uncorrupted Self- solicitude skills. Failure on any part of these competencies will lead to failure on the whole. Hellreigels six competencies pass John Allisons integration hear even so, Johns principles remove the organizational lens of the six competenc ies to obligate them practically basic and universal. This paper looks at John Allisons management style and how it is driven by his vision, mission, and principles. Success with these principles will lead to the success of the six competencies. Finally, this paper will spend some time with the detractors and mis empathizeings of Johns philosophy.John Allisons Management StyleIt is impossible to explain John Allisons management style without acquire into the details of his basic philosophy first. The Richard Craver of the Winston-Salem journal wondered Allison in July 2010, and he noned that, the key lesson of Allisons success is that if you give out the basics right, the details will follow, and you will run your business right. If you bring about the basics wrong, youll eventual(prenominal)ly make a fatal mistake in the details (Craver 2011). Allisons basics are a purpose driven life and organization that is achieved through principles. This philosophy is detailed in a 30 scallywag employee enchiridion that all employees are expected to understand and has remained consistent at BBT for over 20 years. As a result, BBT attracts employees who agree, and repels employees who disagree. After a quarter century, they have established a culture of great coherency, and in business, that is a great power (Craver 2011). From a bigger picture perspective, John Allisons management style is utilitarian in its climax however, this implies that BBTs goal is to simply be profitable.However, profitability is a core to the overall vision of BBT, which is to make the greetledge base a better vest to live in (Allison 2011). Allison explained in a lecture at Wake Forrest University that money is non the end game instead pelf are the means of the overall goal (Allison 2011). The utilitarian methodical approach whitethorn be considered amoral, at best however, it drop deads highly moral in the context of a moral vision and purpose. At the eggshell-by-case train, BBT does non simply manage employees, instead, they develop leaders.Allison explained that Most business failures are due to leadership failures more or less of those are the result of personal leadership failures (Allison 2011). Therefore, each employee is not just given a handbook of BBTs vision, mission and values, but they also attend a presentation given by Allison himself. In this presentation, Allison explains that in that respect are two fundamental aspects to leadership. First, leaders must create a mavin of purpose in themselves and their employees. Purpose creates passion. Second, leaders must live principles that turn purpose into reality (Allison 2011). Living these principles motivates add up performers to perform at an above total level and prevents the Great from becoming average.Allisons Clear philosophyAllisons philosophy bath be summarized by a public vision that is manifested by a mission statement. The vision is To make the world a beam that you want t o live in (Allison 2011). The mission is to apply principles that improve the odds of staying alive, becoming successful, and ultimately world happy. The ten principles are go on outlined herein and are universally applied to individualist and organizational missions. Allisons personal vision and mission parallels BBTs vision and mission statement, which is To make the world a better place by part our clients achieve economic success and financial security creating a place where our employees can learn, grow and be fulfilled making the communities in which we work better places to be and thereby, optimizing the long-term return to our shareholders, while providing a safe and sound investment (Handbook 5). With the Vision and Mission clearly defined, Allisons ten principles are commandment 1 RealityThe reality principle is an Aristotelian concept that A=A. In an interview with newly York Times, Allison said that, Wishing something is so does not make it so (Martin 2009). Altho ugh this concept seems very simple, there are plenty of examples in history where individuals, governments and businesses evaded reality. Allison projected that, I guarantee that long before the rest of us knew, those geniuses at Lehman Brothers, knew that something was wrong, but they evaded it (Martin 2009). Reality is self-employed person of authority. For example, the ratings agencies had a level of authority in the market place however, the ratings agencies evaded the reality that subprime lending was unsustainable. BBT avoided the subprime market by not evading reality and being accountable for evaluating authority and find out what was true (Allison 2011). Reality is also independent of popularity. For example Galileo bucked the popular idea that the earth revolved just about the sun.Principle 2 Reason / ObjectivityAllison contends that mankinds competitive advantage is that humans have the ability to think and develop concept formation. Allison avoids religion however, this concept is not in conflict with a Christians perspective with some distinction. divinity fudge created man in the image of God. Therefore, to dry land is to approach God and to fulfill His intention for mankind. Allison applies Aristotles model of thought. First, base premise on facts second, use inducive and deductive reasoning third, integrate conclusions that are not contradictory and forth, use conclusion to reach a higher level of thought (start the cycle again). Deductive reasoning is the concrete application of a general principle. Inductive reasoning is the taking a general principle and applying it to a specific application. BBT has been a highly strategic organization, which requires objective thought and facing reality. In the late 1980s, laws were about to change that would allow banks to put in other states.Realizing that North Carolina would soon be flooded with competition from larger banks, he began a serial of intra-state acquisitions prior to the changing of the laws. This allowed them a head start on the out-of-state competition while giving BBT the sense to perfect the merger process well before the larger consolidation of the industry. Allison recognized the reality, used inducive and deductive reasoning to conclude that they would need to get bigger, be purchased, or struggle as a result of the changes in the law, and then was able to move on with a new premise of how to become bigger. Despite the popular opinion that BBT was paying too much for some of its acquisitions, the strategy paid off. BBT defended its authority as acquirer of choice, and stressed the strategic nature of its acquisitions.It had developed a reputation as one of the most successful integrators of acquired banks in the industry. Darn few have been able to get away with a consolidation strategy, but one of the best is BBT, an SNL Securities analyst told the Business Journal Serving Charlotte and the Metropolitan world (BBT.com). Allison also uses reason t o implement a method of philanthropic activities in order to be more effective found on BBTs core strengths. Allison explained in Philanthropic Magazine that, The money that was being spent wasnt going to promote the well-being of our company or our country. We take to focus our contributions on something that will matter, and we think that presenting the concepts that undergird capitalism is essential for both BBTs well-being and the well-being of the society in which we live (Sparks 2011).Principle 3 IndividualAllison contends that all thought happens at the individual level. Our brains are not physically connected (Allison 2011). Teamwork is important principle, but new ideas are generated by the individual. A group can improve the idea or even give some the inspiration to develop a new idea, but the thought came from ones mind. This principle also means that the individual is responsible for themself. A manager cannot be responsible for their employees, Allison explained in his lecture. A manager, parent, or leader can sole(prenominal) guide nation, but the individual must make choices and affix attitudes for herself/himself.Understanding this concept is very liberating not only for the individual employee, but also for the organization. At the employee level, ownership of their own role gives them a sense of importance. At the organizational level, businesses benefit by having limitless ideas that bubble up to management. In Cravers interview with Allison, he noted that, The decision not to write mortgage loans of the type that are now called toxic was made by a fairly low-level executive without even consulting Allison (Craver 2011).Allison continues the concept of liberating the individual by saying, Man has rational efficacy, and a capitalist arranging allows him the grea hear individual separateddom to exercise that capacity for creativity and innovationand to be reciprocateed accordingly. It is, in a very deep sense, a just system (Sparks 2 011).Principle 4 ProductivityProductivity is a measurable at the organizational level though output and profitability. A profitable business is a good thing. More fundamentally, productivity is the gut-level commitment to get the job done (Allison 2011). From a Christians perspective, production and productivity is a very eldritch concept the idea that something tangible was formed from the intangible. This is especially spiritual when the idea was inspired through entreaty and worship. There is a parallel between with the most miraculous event in history, when the spirit became flesh, and when someones idea becomes reality. The root word for sacrifice is to approach (Wigoder 873) therefore, when a person creates, she is performing a kind of sacrifice not in the sense that something is given up, but instead, both the tangible world and the spiritual world are in agreement On earth as it is in heaven.Allisons professional trajectory certainly is one of productivity. He started at BBT, once have intercoursen as the grow Banking and Trust Company, in 1971 and became chief executive in 1989, when the bank had $4.7 billion in assets. By the time he retired as C.E.O. in December, he had overseen 60 bank and savings-institution acquisitions and turned BBT into the 11th-largest bank in the nation, with $152 billion in assets, according to the bank (Martin 2009). Allison commented on BBTs Sterling Award winners (internal awards found on productivity). He noted that the same people won 25% of these awards, and that they all shared a commonality. All of them discussed what they were doing, and were not stuck on the obstacles. There is a basic belief in their ability to achieve (Allison 2011).Principle 5 HonestyWithout honesty, nothing else whole works, whether that is capitalism, a church, a business, or a government. Marilyn Fedak is a retired Investment Manager that works with John Allison on making the case for the free market at the university level. In a gi ve voice conference with Allison, she refers to the importance of honesty, At its best, the free market produces a virtuous cycle, but it has to be grow in trust and the rule of law. Trust and predictability are everything. Capitalism is based upon the idea that, implicitly or explicitly, youre making contracts with people all day long, and if you cant trust that the laws in place will prevail and that the other person is going to fulfill their side of the bargain, well, then no transactions are going to take place. (Sparks 2011)Allison explains that being honest 100% of the time is a true test of right. For example, You can be wrong and be honest. We are not omniscient. Therefore, We must mean what we say and know what we mean (Allison 2011). This phrase encompasses two concepts. One, cumulative white lies lead to a black lie. For example, some managers are less than honest on performance reviews by sugarcoating or enabling underperformance. Then, the manager reaches a severanc e point, or the poor performance leads to major mistake.The employee neer gets the chance to correct their actions due to their manager not being honest. On the other hand, the manager may be wrong in his/her premise that the employee is the problem. The real problem may be a poorly designed system, which could have been addressed during the performance review. The concept of cumulative white lies is also evident in personal relationships. Allison gives an example of a married couple, the preserve gets mad at the wife for not hearing what he didnt say (Allison 2011). Two, it is up to the individual to take responsibility for their claim to knowledge. Sometimes the best answer is, I dont know (Allison 2011). Principle 6 IntegrityIntegrity is defined as the consistent application of moral principles. David Leoper is the CEO of Wealthcare Capital Management. He also subscribes to Allisons objectivist philosophy. Leoper references Ayn Rands description of morality as the, Judgment t o ramify right and wrong, vision to see the truth, courage to act upon it, dedication to that which is good, and integrity to stand by it at any price (Geracoiti 2011). By this definition, integrity is akin to faith. One may not immediately understand the consequences of breaking a moral principle, but she or has faith that such actions will have an eventual consequence.A key example of Allisons integrity was after the Supreme Courts disreputable Kelo decision. BBT was the only major bank not to provide financing for projects that used land seized through noble domain for private purposes. We thought that was a violation of a principle that is necessary for a free society, Allison says. The banks decision, turned out to be great economics, which doesnt surprise me at all (Sparks 2011). Later in 2011, Don Luskin moderated a conference with John Mackey of Wholefoods and John Allison. Mackey was highly criticized for his public stance against Obamacare and was nearly thrown out of h is own organization.Mackeys conclusion was that he will think again before making political comments. Allison, however, disagreed and explained, Im a person that believes very strongly in my principles, and I cant sacrifice them in my business, regardless of the consequences in the short-term. We took a strong mental attitude on eminent domain, after the Kelo decision. I couldnt tell my customers and employees that we have principles, but in this case wed turn a blind eye to peoples property being expropriated to be given to other private people. In our case, it was successful. We got thousands of people moving their accounts to BBT because of our position on eminent domain, because we acted on principle. Thats the same reason we refused to write loans to people who couldnt afford them. I did it because I never want to have to tell someone that I did something that I thought was morally wrong. (Vegter 2011)Allison took a distinct stance against the federal government once again in 2008 when he submitted a 14-point letter to sexual intercourse in which he objected to the bailout of the financial-services industry out of concern that it will hurt, well-run financial institutions such as BBT (Craver 2011). His integrity was questioned when BBT accepted TARP monies shortly after the closed-door session with the nations political leaders. currently thereafter, Allison stepped down as the CEO so that he could start his education campaign. His work at the university level and at the CATO Institute is an effort to stop governmental force being exerted against independent businesses again.Principle 7 Justice / FairnessAccording to Allison, The good news is that we are all unique individuals (Allison 2011). Managers that make the average above average and to keep the great from becoming average instill justice in the workplace. Allison believes that, egalitarianism is one of the most destructive ideas in our society (Allison 2011). Managing equal outcomes not unequ al input is really unjust. Since individuals are not the same in their talents and abilities, a managers key function is to adjudicate and judge others. This is a difficult function therefore, Allison prescribes a three point method for judging others in order to stay fair. The person needs to be judged (1) as an individual, based on (2) the personal merits and based on (3) what matters in that specific circumstance. Therefore, We reject collectivism and how they judge, which is based on their memberships groups, such as race, sex, nationalism, etc. Collectivists are always wrong because they are making an individual decision based on a group observation. An Individual cannot be a group (Allison 2011).Principle 8 PrideAristotle described compliment as the ultimate virtue because in order to have pride, all other virtues (justice, honesty, integrity, and rational independent thought) needed to be mastered. The pride described here is not arrogance or hubris, but instead, it is th e reward to do good deeds and the reward for having done good deeds. Allison describes this as the psychological rewards However, the rewards for Christianity are much more profound. The apostle Paul speaks of a healthy pride that one should have in oneself and others (2 Cor 512 74 824 Gal 64). Christianthinktank.com quoted the Greek-English lexicon of the New Testament that Even Lexicons based on semantic domains have entries for pride (legitimate) (Chistianthinktank.com 2012).Allison equates pride with strong ethics. In a defiance allusion to rabbit warren Buffets quote about ethics, Allison says, The next time you face an ethical decision, ask yourself if you would be willing to tell the people that you love, care about, and judge to be of high-esteem the decision you made, not the newspaper.Principle 9 Self-Esteem / Self-MotivationAllison believes that this principle is the foundation of happiness. In his lecture, he states that, You must believe at a very deep level that you a re capable of being good and that you have the moral right to be happy. He explained that this is, The most important and controversial thought that I have to share with you today (Allison 2011). On several occasions, Allison has made reference to the sandbox example. It is a story about a boy named greyback that is playing with his toy truck in the sandbox. Fred then comes and takes Johnnys toy truck because he wants to play with it. A get by then ensues, and Johnnys develop comes over and says, Johnny, be a good boy and share with Fred. Allison asks, What message does that give to Fred? More importantly, what message does that give to Johnny? (Allison 2011).The breast of self-esteem is that a person can only control his or herself, not others. Therefore, the individual can only be in charge of their attitudes and their work and thus, must be focused on them. Egalitarians are focused on others, and as a result, are adverse to others for being great. This is envy, which is the u ltimate immoral pastime. Allison explains that, you may be able to fool your boss, but you will never fool you. Do your best, and self-esteem increases. Do less than your best and self-esteem decreases (Allison 2011).The trader principle fits with any of the other ten principles, but it curiously fits with self-esteem and self-motivation. The trader principle simply means that because people are self-interested, only win-win relationships are sustainable over the long term. All other relationships are either a lose-lose or eventually a lose-lose. Free-market capitalism is a highly moral system because it incentivizes good behavior and provides for a system for people to interact with others in search for win-win relationships. Allison explains this concept as the new leader of the CATO Institute One of the things that I really want to do is make this a moral fight instead of a fight around the technical aspects of economics.The libertarian vision is a moral vision and we own the mo ral high ground. A free society is the only society in which people can think for themselves and pursue their rational self-interest. Freedom creates the ability, through creativity and incentive, to raise the quality of life for everyone. When I was CEO of BBT we saw the opportunity, on many occasions, to create products and services that would improve the quality of life of our clients but some government law prevented us from doing it. Unfortunately most business leaders are not really capitalists. They are comrade capitalists looking for some way to use the government to give them a special advantage. Cato is a shielder of real capitalism, real free markets (Benko 2012).Principle 10 TeamworkIn a philosophy that is built on the individual and self-motivation, police squadwork may be overlooked as a key principle. However, teamwork is essential in an organization and a society. Teamwork allows much more to be produced. Craver noted in his interview with Allison that, What mak es Allison unusual among leaders is that his philosophy is one of realism not phony idealism. Its all about excellent individuals making personal contributions to a joint effort for the purpose of making profits, not saving the whales. Allison candidly says, in effect, a team is made up of people, each of whom is an I. We insist that you be an individual, and that if you want to be on the team, you have to voluntarily buy into the mission we have all chosen to share (Craver 2011).Detractors of ObjectivismForbes dubbed John Allison as the Philosopher King however his philosophy is not easily accepted by many. The first and most relevant critique is that God is absent from this philosophy. This paper has included some allusions to how objectivist principles can mesh with Christian ideals however, the architects of this philosophy, namely Ayn Rand, were atheists. The incongruities of this philosophy and Christianity mostly lie in the concept of natural order (mother-nature) and the belief in God that is not visible (faith). As explained above, Christians cross this intellectual divide by substituting natural order or mother nature with God. There are also some differences in the idea of selfishness and self-sacrifice. More research is needed to find intellectual bridges however, some of these conflicts are semantic in nature. Nonetheless, there is a logical case for God, and Christians knows that God reveals rational thought, purpose, creativity, motivation, and reason through prayer. There is some confusion between being selfishness and self-destructive. Detractors of objectivism and capitalism contend this it is a dog-eat-dog system that takes advantage of others. Allison argues that taking advantage of others is truly self-destructive, not selfish.If a business takes advantage of a customer, then the customer will alert the market-place and thus, the business will be harmed. Businesses take advantage of others through the political process, but that is not capitalism, and as Allison said, is not congruent with his philosophy. Finally, detractors find Allisons philosophy lacks emotion. Allison disagrees and says that emotions can be a good thing. Passion is an emotion, and you need passion in life (Allison 2011). Allison believes that emotions are learned, not magical. This certainly seems to be true with some emotions, such as phobias however, to the Christian, emotions can be divine inspiration. Allison warns leaders to check their premises when their emotions are at odds with reason. He further advises to always go with reason over emotion.Christians would disagree, at least in part. A Christian may always go with reason over emotion, but only after prayer and meditation and when reason and emotion are in-line. Certainly, a Christian should go to God in prayer to check their premises and motives. Life becomes easier to live, organizations are easier to lead, and employees are easier to manage if one has a clear philosophy and set of principles. With this in mind, BBTs senior management style is written in its literature as being as participatory, team oriented, fact-based, and rational (BBT History 111). They define management concepts as, obtaining and retaining excellent people, training employees well, give employees the appropriate level of authority and responsibility, expect a high level of achievement, and reward performance accordingly (BBT History 112).All of these definitions and concepts line-up with Allisons core philosophy. BBTs website explained that, Allisons management style stressed decentralization, striving for a community banking scent at the branch level (BBT.com). The individual, self-esteem, productivity, and teamwork principles are the driving principles for this decision. Moral Clarity leads to better decision making, longevity, success, and happiness. This is good for all the stakeholders involved in the organization.This paper will conclude with scripture that encapsulates the role between managers and employees and consistent with most of Allisons principles. Ephesians 65-9 says Ephesians 65-9 Slaves, obey your earthly masters with respect and fear, and with sincerity of heart, just as you would obey Christ. Obey them not only to win their favor when their eye is on you, but as slaves of Christ, doing the will of God from your heart. Serve wholeheartedly, as if you were serving the Lord, not people, because you know that the Lord will reward each one for whatever good they do, whether they are slave or free. And masters, treat your slaves in the same way. Do not threaten them, since you know that he who is both their Master and yours is in heaven, and there is no favoritism with him.ReferencesAllison, John (7/21/11), Principled Leadership Lecture at Wake woodwind University Schools of Business. http//vimeo.com/27183721BBT (1998), The BBT Philosophy Mission and Values guidebook.BBT (2012), Our Account, History of BBT 10th edition 2012.Benko, Ralph (7/2/12), W ho Is JohnAllison? A Randian, Libertarian Business motion-picture show Takes Over the Cato Institute http//www.forbes.com/sites/ralphbenko/2012/07/02/who-is-john-allison-a-randian-libertarian-business-icon-takes-over-the-cato-instituteCraver, Richard (7/10/11), My Interview on John Allison Todays John Galt, Winston-Salem Journal http//www.iamjohngalt.com/2011/07/my-interview-on-john-allison-todays.htmlGeracioti, David (Apr. 12, 2011), Cold Call Wealth Manager Operates Firm on Rands Objectivism Wealthmanagement.com, http//wealthmanagement.com/institutions/cold-call-wealth-manager-operates-firm-rand-s-objectivismGreek-English lexicon of the New Testament Based on semantic domains (electronic ed. of the 2nd edition.) (Vol. 1, Page 310). New York United Bible societies.Hellriegel, D, S. E. Jackson and J. W. Slocum, Jr. Management a Competency-Based Approach. (2008). Cincinnati Cengage. ISBN 0 32 4421400Martin, Andrew (8/1/09), Give BBT Liberty, but Not a Bailout, New York Times, http //www.nytimes.com/2009/08/02/business/02bbt.html?_r=0Perman, Matt (4/29/30), A Christian View of Management in Ephesians 65-9. Whats Best Next http//www.whatsbestnext.com/2011/04/a-christian-view-of-management-in-ephesians-65-9/Sparks, Evan (2011), Intellectual Capital, Philanthropy Magazine, http//www.philanthropyroundtable.org/topic/excellence_in_philanthropy/intellectual_capitalThe Holy Bible. NIV forwards Charles F. Stanley and Andy Stanley Side by side bible NIV KJV. 2011 Biblica, Inc.Wigoder, Geoffrey Paul, Shalom M. Viviano, O.P., Benedict T. Stern, Ephraim (1986) Illustrated Dictionary Concordance of the Bible. G.G. The Jerusalem Publisying House ltd.Zigarelli, Michael (2003), The Priorities and Practices of Christian Leaders, Regent Business Review, http//www.cbn.com/finance/rbrchristianleaders.aspx