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Michael Bloomberg 2019: A commencement speech worth reading and a message worth sharing.

Sun, 04 Aug 2019 17:55:11 +0100

In my work and personal life, it often seems like we are provided false choices. I am suspicious of people who frame issues as only an either-or proposition. I respect leaders who have the courage and character to speak honestly about the complex challenges facing our world.

Maybe that's why I found Michael Bloomberg's commencement speech at Harvard Business School so timely and refreshing. "Calling on the Harvard Business School Class of 2019 to demonstrate “moral leadership,” and to invoke integrity in the service of country and capitalism."

Here are some of my favorite highlights:

· “Being ethical does not require a master’s degree,” he said. “It requires having a conscience and following it.”
· "No party has a monopoly on good ideas or good people. But I believe all of us have an obligation to reject those who traffic in dishonesty and deceit. That is not a partisan position. That is a patriotic position. Unfortunately, when we elect people to public office who have no interest in ethics, that depravity trickles down, and it seeps into our culture."
· "Thirty years ago, Senator Daniel Patrick Moynihan of New York described society’s growing tolerance for illicit behavior as “defining deviancy down.” Today, we face the same problem — except that the bad behavior is not on city streets, but in the halls of power in Washington. And as our political culture degenerates, so does our ability to address all the big challenges we face. Now, the good news is: There is a solution. In fact, I believe that the solution to our political problems is also the solution to our economic problems. And I can sum it up in one word: integrity."

How do we proceed?

Be sure to read the entire commencement address for some ideas. But in simple terms, whatever positions we hold we are each called to lead with integrity. Leaders must have the courage to speak and defend the truth. Having the character to lead through these moments in history is a calling for each of us to consider carefully.

History is filled with wisdom. Humans have seen difficult moments before. So it is useful to recall this statement by Abraham Lincoln when he was asked:

"What's the best test of a person's character?"

From one translation, "Lincoln noted that the response most people gave to that question is adversity — that people's true selves are revealed when times are difficult, or when they are faced with a particularly daunting challenge. In Lincoln's experience, however, the true measure was power. His actual quote - "Nearly all men can stand adversity, but if you want to test a man’s character, give him power."

So today, we must evaluate our leaders by their conduct. As CEO's do they compensate themselves first. Do they demand to be paid 10 or 30 times that of their ordinary employee? Do they hide behind what is legal (Citizens United that enables nearly the outright purchase of elections) and avoid the fundamental moral question of what is right for all considered?

In both business and political life, it appears clear to me that it is deeply important to get this right.

Leaders Must Avoid False Choices

Leaders of all types must lean into complex issues and avoid false choices that are frequently framed by the media or political elite. As just one of many examples, society and particularly young adults are told asked to make a simple choice without thinking about the complexity of a moderate position. The political choices today appear to be between capitalism or socialism. This false choice ignores the value and importance of competition. My point here isn't to debate a political topic but to reveal that the truth is revealed not in the choice but in the context. The best leaders help to demonstrate the context and avoid a false choice that despite its appeal will be a disservice to society. For instance, the context for health care or public education is that competition provides choice, but only in when certain minimum requirements are included as part of the solution. So in the case of health care. It seems practical that all citizens should be able to purchase health insurance independent of their employer - call it universal health or Medicare for all the point is important for all citizens to access essential medical care. Likewise, for education, competition can provide valuable choices for families but depends upon minimum levels of funding to deliver quality education regardless of what zip-code a student lives in. I am not a policy expert, but as a student of leadership, I firmly believe we need leaders who possess the character to speak honestly about the problems we face. We need leaders who are honest and capable of framing the issues of our time with the correct and complete context. Leaders - in brief - with integrity.

Life, Careers & Entrepreneurship

Thu, 16 Mar 2017 17:14:46 +0100

It is interesting to me how age and perspective that comes with it shapes my view of Life, Careers and Entrepreneurship. Please share your feedback with me on the few slides and diagrams that I hope are helpful to friends who may read this post.

In my twenties I had a narrow view of each when it would have benefited me most to have had a broad view. My first job in the furniture business I worked in was really not about furniture, but about learning about the scope and complexity of operating a manufacturing business. I learned about the value and limits of branding (Sealy) and the value of distribution and credit. To this day, I still think that for many retail businesses the reality is you can sell anything you can finance.

In my thirties, I broadened my view and consider how to apply my knowledge, relationship and insights to learned adjacent markets. I moved from affinity marketing of credit cards to building College Publisher - the leading technology platform for college and university newspapers and to building a pioneering affinity student lending business.

In my forties, my career kept expanding and saw the problems faced by student loans and the high cost of college as and opportunity to create another adjacent business (GradGuard) focusing on collegiate insurance programs. The technology we used for the collegiate business became useful to building another adjacent business to fulfill the insurance needs of affinity groups and their members (MyLifeProtected).

So I look forward to my next decade and seeing how my observations of the past 4 decades may change.

Dr. King's Lessons in Leadership

Wed, 21 Jan 2015 23:02:20 +0100

While I was in graduate school for my MBA, I read for the first time Dr. Martin Luther King's Letter from a Birmingham Jail from April 16, 1963. This letter may seem like unusual reading for MBA students and mostly dedicated capitalists, as Dr. King's letter addressed themes of leadership and social justice.

After reading the view of local clergy, Dr. King wrote his letter in the Birmingham Jail on scraps of paper and completed it on a legal pad provided by his defense attorneys. It is interesting to consider that an MBA program would require reading Dr. King's letter, but as I share below his words are powerful reminders that the words and conduct of leaders are powerful. I encourage you to read the letter for yourself and consider the lessons on leadership that are contained within his well chosen words:

I want to try to answer your statement in what I hope will be patient and reasonable terms.
I cannot sit idly by in Atlanta and not be concerned about what happens in Birmingham. Injustice anywhere is a threat to justice everywhere. We are caught in an inescapable network of mutuality, tied in a single garment of destiny.
But I must confess that I am not afraid of the word "tension." I have earnestly opposed violent tension, but there is a type of constructive, nonviolent tension which is necessary for growth.
Lamentably, it is an historical fact that privileged groups seldom give up their privileges voluntarily. Individuals may see the moral light and voluntarily give up their unjust posture; but, as Reinhold Niebuhr has reminded us, groups tend to be more immoral than individuals.
For years now I have heard the word "Wait!" It rings in the ear of every Negro with piercing familiarity. This "Wait" has almost always meant "Never." We must come to see, with one of our distinguished jurists, that "justice too long delayed is justice denied."
The nations of Asia and Africa are moving with jetlike speed toward gaining political independence, but we still creep at horse and buggy pace toward gaining a cup of coffee at a lunch counter.
There comes a time when the cup of endurance runs over, and men are no longer willing to be plunged into the abyss of despair. I hope, sirs, you can understand our legitimate and unavoidable impatience.
One has not only a legal but a moral responsibility to obey just laws. Conversely, one has a moral responsibility to disobey unjust laws. I would agree with St. Augustine that "an unjust law is no law at all."
How does one determine whether a law is just or unjust? A just law is a man made code that squares with the moral law or the law of God. An unjust law is a code that is out of harmony with the moral law. To put it in the terms of St. Thomas Aquinas: An unjust law is a human law that is not rooted in eternal law and natural law. Any law that uplifts human personality is just. Any law that degrades human personality is unjust.

Real leaders require this understanding of justice and the courage to articulate and demonstrate such conviction. What is interesting to me is that leadership is fundamentally defined by having the courage to express your views - despite opposition, despite fear, despite overwhelming odds. It is courage that defines leadership. Even though it may not have the same impact as Dr. King, re-reading the letter reminds me that business leaders need similar courage. In big and small things. We need courage to speak the truth.

Looking back it is easy to know understand why Harvard Business School required 900 emerging leaders to read Dr. King. Dr. King's letter is Ione of the best illustrations of expressing the courage required of leadership. It is very difficult to appreciate the context for his arrest, the violence and unrest that surrounded him - yet his letter captures so many complex emotions, speaks about enduring values and illustrates the courage that is needed by anyone who assumes the mantel of real leadership.

Do yourself a favor and take the time to read Dr. King's entire Letter from Birmingham Jail. Take from it what you will, but it should inspire each of us to find courage to give voice to the values we know to be true.

Top 7 - Not to Be Missed Topics from 2014

Wed, 21 Jan 2015 22:59:39 +0100

2014 was filled with many experiences, events and articles have stayed with me and continue to make me think about challenges facing the U.S. education system. Here is a summary of major topics and themes that are worth more thought.

During a Young Presidents' Organization luncheon prior to the annual ASU GSV Summit on Education Innovation, I listened to Jeff Selingo (author of College Unbound: The Future of Higher Education and What It Means for Students) lead a panel on the challenges facing higher education. The usual discussion of a MOOCs, online learning, "flipped classrooms" took pace and the usual frustrations expressed.

The question, that resonated most with me, however came from someone in the audience who asked -"but would would wish this form (online) of college education for your own children?" It isn't a cut and dry question - but in so many ways this type of empathy is what is needed most in our discussions surrounding so many important topics facing the U.S.

Top 7 - Not to be Missed Topics from 2014

1) The Case for College - It is useful to consider the remarks of Harvard University President - Drew Faust - defending the value of a higher education. In contract with Peter Thiel questioning the value of college and even CNN joining the discussion with its Ivory Tower documentary.

2) Greater Accountability - The White House push for greater accountability by the more than 4,000 institutions that benefit from $238 Billion in annual financial aid programs led to a useful service titled College Scorecards in the U.S. Department of Education’s College Affordability and Transparency Center. Though the debate continues to know if this is sufficient or an over-reach in regulations, the call for accountability for the public investment (in grants, student loans etc) will continue. It is striking to me how ACE and others now claim that the cost of regulations is driving the rapid rise in the cost of college.

3) Important Insights regarding College Completion by Gallup / Lumnia Foundation. Be sure to read the data from Gallup Education and subscribe to Lumnia’s work be sure to watch pursuit of one specific goal—what they call Goal 2025. By the year 2025, Lumina wants 60% of Americans to hold a college degree, certificate or other high-quality postsecondary credential. Complete College America – The 4 Year Myth This is an important study. Current on-time graduation rates suggest that the “four-year degree” and the “two-year degree” have become little more than modern myths for far too many of our students. The report describes the reality as "our system of higher education costs too much, takes too long, and graduates too few." It is noteworthy that Lumnia / Gallup have advanced some of the best thinking, without the apparent resistance, from earlier work by the Gates Foundation.

4) Transparency – Student Press Law Center / Clery Act Reporting by Schools Title IX and Violence Against Women Act captured headlines and focused a meaningful discussion by colleges on how to balance the needs of victims with the rights of the accused. Though there were nearly weekly articles on these topics, what may have been missed by others is the overarching theme is about how colleges and universities either embrace or avoid transparent policies.The work of the Student Press Law Center. When SPLC addresses a topic, it signals to me that a fundamental shift is occurring regarding themes of transparency. Look for more work from SPLC to encourage local reporting of how colleges are disclosing the reality of campus and student life.

5) Disruptive Innovation - You may have missed The Atlantic’s article attacking the adoption of “Disruptive Innovation” by Harvard Business School Professor, Clay Christiansen. It is worth reading but do so with caution. Though it seems to have legitimate limitations to education, many in the education technology sector do not see them. Even so, I agree the dilemma that Christensen describe nearly 20 years ago in his book is probably still the best guide to thinking more intelligently about it. I prefer Gallup's Brandon Busteed's view that “ We may learn that the real disruptive innovation in education is the need for a human support system and deep learning experiences. Though colleges and universities might be threatened by disruption from online courses, they should have an advantage on fundamentals like mentoring, caring professors and deep and experiential learning."

6) Education Technology – Google Gmail / Apps & Net Neutrality Two noteworthy developments that were easy to miss address the technologies that enable college and universities. The first was the admission by Google that it was mining data from student and teacher emails through its Education Suite of services. Google ended the practice after an outcry and lawsuit to protect users privacy, Google Stops Mining Education Gmail And Google Apps Accounts For Ad Targeting In addition, the debate on “Net Neutrality” has implications for education as well. The concept of net neutrality holds that all Web traffic should be treated equally by Internet providers and governments. However, the Federal Communications Commission proposed new rules that would allow providers, such as Comcast and Verizon, to charge content providers differently. It may not be a major concern but without net neutrality educators may face one more obstacle to distributing their content through affordable and reliable channels.

7) In all of the debate about education reform consider this data point, 71% of Americas 17 – 24 year olds are ineligible for military service.
According to a report issued by the Mission: Readiness Group - about 71% of America's 17- to 24-year-olds are ineligible for military service due to lack of education, obesity and other physical problems, or criminal history. Read the report to see how the military is advocating for stronger schools and communities. Imagine the challenges facing colleges and universities when also confronted with these trends when attempting to increase college completion rates.

Implications for 2015.

What ever your view is of these themes, I welcome a thoughtful discussion and your insights. More schools, families and students depend on GradGuard to help students' overcome the unexpected financial losses that may disrupt their pursuit of a college education. You can count on our continued voice

A wise friend told me once, that the failure of our educational system is really just a symptom of communities and families that are failing. As much as we may look for alternative remedies (technology, common core, new funding formulas etc), the balance of the issues surrounding education also depend upon your point of view. Too often, our leaders ask us to make a false choice. Is education a personal benefit or a community good? In fact, it is both. Education, and particularly a higher education, is important to building both the capacity of individuals and our society. Stay tuned as these themes will continue to evolve in 2015.

Trends in Alumni Affinity Marketing & Beyond

Wed, 21 Jan 2015 22:57:18 +0100

Most of my career has been involved with affinity marketing. Often the focus has been between affinity - what consumers care about, non-profits / universities and financial institutions such as banks, student lenders and insurance companies.

As a result, it is interesting for me to read, the annual CFPB report to Congress on college credit card agreements. The world of alumni collegiate marketing has changed and there may be implications for other affinity markets as well.

The number of higher education institutions, alumni groups, and other affiliated groups that sponsored credit cards declined in 2013.
Continuing a trend that began in 2009, compensation paid to the institutions and affiliates for these programs also dropped.

Not surprising, the total accounts from alumni associations are also declining.

For 2013, 26 credit card issuers had 448 agreements, and the issuers paid $42.9 million to the higher education institutions and affiliated groups. Bank of America which acquired the pioneer in the field, MBNA, accounted for more than half of the credit card agreements.

For most of the last two decades one of the largest source of funding for alumni associations has been its affinity credit card programs. In addition to greater oversight of these agreements by CFPB, consumer behavior with credit cards has changed. It is unclear if alumni programs have become less valuable or just been disrupted. In fact, during the same period of declining credit card programs, affinity insurance programs have continued to grow. These programs are clearly relevant and addressing the needs of their members.

The Value of Alumni Remain Strong: Indeed the market of alumni of colleges and universities is valuable. In fact, only approximately 30% of adults in the U.S. have earned a bachelors degree and the value is shown in both earnings and higher employment rates.

Value is Shifting to Other Channels: Reaching college graduates is clearly a viable marketing strategy, but affinity marketers can now easily reach this audience through other channels. Credit card companies and other product providers can now easily identify college graduates through many other online "affinity" communities such as LinkedIn and Facebook.

The Affinity Challenge: Affinity groups and particularly alumni associations need to clearly identify the unique contribution they provide to product providers. Affinity marketing is more than just licensing marks, affinity marketing is about the value of the endorsement, the relationship the affinity group has with its members and the knowledge the affinity group maintains on its members.

Even with deep relationships and knowledge, however, affinity endorsements may not be sufficient to overcome consumer preferences such as rewards. For instance, today with credit card programs rewards often trump affinity. In 1997, I was fortunate to work with colleagues at First USA (now part of JP Morgan Chase) who responded to a request of Eustace Theodore, the Executive Director of Yale University's Alumni Association to offer an affinity card for its alumni that was best in class - that featured both rewards (miles) and affinity. Yale knew that its alumni would respond to a unique offer that combined both rewards and multiple card images. It worked so well that the program was renewed by Chase in 2007 and continues now with First BankCard of First National Bank of Omaha.

Lessons for the Future of Affinity Marketing: It is vital to recognize that affinity begins with a real and relevant relationship. It is no surprise that the internet age requires affinity group marketers - both sponsoring organizations and product providers - to recognize that their members can easily identify a bad deal. It is just as easy for their members to be offended when irrelevant offers reach them (think of the alumni travel cruise that a new graduate may receive). Affinity group members have more choices than ever and will be able to find the truth and will likely ignore offers that are irrelevant to either their organization or life-stage.

Please let me know what you think Affinity 2.0 will become?

What is working for your organization? What products or services matter most to your members?

College, Life and Careers

Tue, 15 Jul 2014 19:18:35 +0100

The recent graduation season has made me reflect a bit more about the value of college to building both a life and career. The value of a higher education is much more than just increasing the skills or knowledge of a student. I firmly believe that a college education - particularly a liberal arts education - has tremendous value in shaping how a person thinks for a life-time.

How we think last a life time. The ability to see problems as opportunities. The ability to think complete thoughts - such as completing a complex math formula or formulating a view of a book or philosophy are useful to forming the basis of building an intentional life.

While some people (Peter Thiel) suggests that a college education may not be worth the investment, I view a college education as more than just a personal benefit but one, that when done right, can benefit an entire society.

I think this diagram (not sure who designed it first) is particularly useful to share with people of all ages. There are always tradeoffs between life and career choices, but completing a college education gives young people the insights and confidence that can serve them well for a lifetime.

Read more at my post on LinkedIn -

ASU Education Innovation Summit

Sat, 13 Apr 2013 23:42:28 +0100

For those of my friends interested in education, the 4th annual ASU Education Innovation Summit is a tremendous event. Forbes magazine has called it "the can't miss education innovation event".

GSV Advisors have done an excellent job collaborating with Arizona State University. As an ASU alum, I am very pleased to see the good that is resulting from this summit. Give Michael Crow credit for finding new ways to collaborate and to inspire new approaches by industry leaders to address the problems of education at all levels.

This years event is larger than ever.   The focus continues to be on disruptions caused by education technology.

Though disruptive technology is exciting, new financing models - such as charter school movement is also a main theme.   Interestingly - the conference continues to lack participants who finance education. The sources of funding - are primarily the government - and as an example the discussion of potential disruptions to the federal government financing of higher education.

Pipeline issues are also a key topic, but through put - graduation rates and addressing career readiness of college graduates appears to be a short-coming or in another way - an opportunity for future entrepreneurs.

The conference reminds me of the quote - "You can't read the label when you are sitting inside the jar" - insiders seldom innovate or disrupt the jar.   What surrounds the jar at the moment is financing of education and job-matching / skill matching post the education systems. Great opportunities for some new thinking.

In the Arena - Start-Up Life

Tue, 20 Nov 2012 14:21:25 +0100

This is an excellent article for anyone interested in some insights into the grit required to build a high potential venture. This article by Entrepreneur turned Venture Capitalist - Mark Suster from GRP Partners is excellent.

It reminds me of Teddy Roosevelt's quote - about “The Man in the Arena” tells us that the man we should praise is the man who’s out there fighting the big battles, even if those battles end in defeat. In our day, when cynicism and aloof detachment are considered hip and cool, TR reminds us that glory and honor come to those “who spend themselves in a worthy cause.”

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

Start-ups are not all worthy endeavors nor are they all led by perfect people. But the same concept applies in some regards to the modern economy and the sacrifices required to build organizations of all types (not just for profit) is illustrated by this post by Mark Suster.

Read the entire post below and share this with your spouse, business partner or any friend you have that is considering a start-up.

"You’re unemployable. You’re an entrepreneur."

The Blog Post on What It's Really Like. http://buff.ly/U42Kbl http://buff.ly/U42Kbl

Or see the presentation here:

Entrepreneurshit. The Truth About Building Starutps from msuster

No Fear

Tue, 04 Sep 2012 16:28:37 +0100

This is a wonderful message by an outstanding person and entrepreneur - Michael Lazerow - the cofounder of BuddyMedia. I met Michael through his efforts to build UWire - which became to the college media market what the Associated Press to national journalists. He has always been modest, funny and inspirational. He is also brilliant and this video shows that he filled with gratitude and a mindset that sets him a part.

According to Mashable...

"Buddy Media is not a brand most consumers would recognize, but in the halls of social media and marketing, it’s a king. It connects major brands with their customers throughout all the major social media networks. Now, thanks to a $689 million acquisition, it’s set to become part of cloud computing and CRM giant Salesforce.com (the deal should close later this summer). As Lazerow explains in the text accompanying the YouTube video, the clip is raw and emotional. However, throughout it, Lazerow doesn’t speak a single word. Instead, he tells his own remarkable story and a bit about the acquisition, via a keynote slideshow on his iPad. Lazerow, who has had a life-long heart condition is smiling during most of it, but he’s also clearly wiping away a tear or two as he reacts to some of what he’s sharing.

His main message, though, is not so much about the acquisition or his heart, but about fear and whether it’s holding you back. It’s clearly not hindering Lazerow"

Enjoy - and be inspired to live without Fear!

Back to College - Changing Mindsets

Tue, 21 Aug 2012 13:09:15 +0100

Seasons are important milestones in our lives. Back to school is one of those seasons that I find useful to consider how things in the world are changing. It is easy to consider that the grad students who taught classes 20 years ago are now being replaced by online courses taught by professors. Is it better or worse - probably hard to tell.

What is different is the mindset and insights of the students who arrive in any class.

A brief article in Inside Higher Ed by Scott Jaschik reports that once again Beloit College has released its annual "mindset list" -- helping all of us understand that freshmen students didn't experience the same things that may have shaped their professors. Some highlights of the new list, released today:

For the entering class, most born in 1994:

Kurt Cobain, Jacqueline Kennedy Onassis, Richard Nixon and John Wayne Gacy have always been dead.
They have always lived in cyberspace, addicted to a new generation of “electronic narcotics.”
If they miss "The Daily Show," they can always get their news on YouTube.
Robert De Niro is thought of as Greg Focker's long-suffering father-in-law, not as Vito Corleone or Jimmy Conway.
Bill Clinton is a senior statesman about whose presidency they have little knowledge.
They have never seen an airplane “ticket.”
For most of their lives, maintaining relations between the U.S. and the rest of the world has been a woman’s job in the State Department.
Their folks have never gazed with pride on a new set of bound encyclopedias on the bookshelf.

The full list, plus previous year's lists, may be found here. [1]

Consider this list carefully and think about the implications for your business. Remember do not assume that your mindset is the same as your customers or in the case of Freshmen - the same at all.