Proactive Leadership

I think there is a better alternative to the following two common compensation structures: a) Hourly wage – this gives an inherent incentive to extend the length of time working on projects, especially if it’s a one-time project. b) Salaries- this gives an inherent incentive to do just as much required by the position without exceeding expectations.


I’ve found a better approach is paying for long term performance where a request for proposal and and acceptance is made/accepted for every project.

The end goal of staffing should be proactive leadership where all team members have an incentive to analyze opportunities, find solutions and prevent challenges.

I think it’s ideal to make all team members intrapreneurs so the company stays lean and proactive.

Lastly, feedback systems and the increased transparency of information through technology helps ensure team members are accountable and productive.

Business schools advocate a “balanced scorecard” approach for measuring performance where individuals are compensated on multiple factors–qualitative and quantitative.

On Current Inflation and Deflation in America

Currently, there is significant inflation and deflation in America. I’m going to give two quick examples on why this is happening simultaneously.

Inflation: There is significant inflation in the form of increasing the supply of funding. The government is doing a great deal of lending. Apparently the US government is issuing up to 75% of new mortgages.

Deflation: Due to globalization, wages are decreasing as companies are hiring overseas to remain competitive. For example, GM and Ford are boosting Mexico output With $26-a-Day Workers

Therefore, it’s important to be very specific when discussing inflation and deflation because both forces can occur simultaneously.

Further, the real value of currency and GDP are important variables when assessing America’s economy.

One of the most important variables is China’s willingness to subsidize the strength of American dollars by accepting increasingly devalued dollars as the real value of American dollars continue to decline.