Episode 16: Crazy
It was a slow week in the news cycle, which meant more opportunity for mainstream media to bloviate about COVID and perpetuate a divisive narrative around politics and race relations. Mainstream media showcased protests, riots, and violent and deadly altercations between police and citizens (some dating back to last year). It will be interesting to see what voters discern from the images and coverage. Will they see justified protests supporting BLM and the need to break down systemic racism by starting with electing a more inclusive President? Or will they see riots that threaten the rule of law and seek comfort in the candidate that has anchored a campaign around being tough on crime and protecting the second amendment? Based on voting history, personal safety and the economy are two of the most critical factors in the election, so expect to see those issues argued from different perspectives in the next few months.
Back to school plans have been bumpy, despite extreme measures to keep kids, faculty, and administrators safe. It’s hard to reason with young people when it comes to social distancing and wearing a mask at all times when the health risk for their age group remains extremely low. NYC delayed opening school from September 10th to the 21st to avoid a teacher’s strike. Expect to see more union action in the coming months. Legislators and school administrators around the country are struggling with the decision to be virtual when it’s clear it’s suboptimal for the kids and a terrible life disruption for most parents, or go back to classroom and risk a spike in COVID infection rates.
Walmart planted a strategic flag against Amazon by rolling out a delivery service similar to Prime. Walmart’s delivery service, Walmart Plus, will be $98 and offer unlimited same-day delivery for orders above $35. Additional benefits include a “scan and go” option for subscribers who shop in physical stores and want to avoid annoying check-out lines. Lastly, Plus members will receive a discount of $0.05 per gallon for fuel purchased at Walmart. The good news for Wal-Mart is e-commerce for the retail behemoth increased 97% in the last quarter due to growth in same-day delivery and curbside pickups, although e-commerce still only accounts for 6% of the company’s total sales. Amazon dominates the US online retail market share at 38.7%, while Walmart is a distant #2 with a 5.3% share.
Trump’s Executive Order on August 8th offered the opportunity for businesses to postpose payroll taxes for the last quarter of the year. According to Trump, this initiative would be another cash injection into consumer’s pockets as lower payroll taxes would mean higher take-home pay for employees. However, the plan has more holes than a slice of Swiss cheese. For starters, it’s temporary. Gains for consumers this year will be offset with losses next year as employers will take out more employee taxes in Q1, 2021, to repay the suspension of taxes this year. Of course, it’s unclear how that will work for employers with transient workforces who can’t claw back taxes on departed employees, leaving them holding the bill. Trump has suggested he will make the suspension of payroll taxes permanent if elected, but the reality is only Congress has the legal right to make such a policy decision. What’s peculiar about the payroll tax suspension is it helps employed workers but does nothing for the unemployed. Plus, it’s a regressive proposal and gives the most significant breaks to those with the biggest paychecks. The bottom line is the payroll tax suspension is more bark than bite, and it’s doubtful many employers will participate.
On the lighter side, an American Airlines pilot spotted a man in a jetpack at 3,000 feet just outside LAX as the pilot was landing. A second sighting of the dumbass was confirmed by a Jet Blue pilot who messaged the tower “only in LA.” Perhaps it’s a coincidence or a reflection of concerns about personal-flight air travel, but American, United, and Delta eliminated change fees for domestic tickets. According to the Transportation Department, US airlines made $2.8 billion from change and cancellation fees in 2019. Ancillary fees, including baggage, seat, and ticket charges, have increased five-fold the past decade and accounted for 15% of total airline revenue. In celebration of this consumer-friendly airline policy shift, Yellowstone’s Giantess Geyser erupted for the first time in six years, with blasts that reached 200 feet high.
I. Below are the articles I found interesting the past week:
Most successful people struggle with patience. Of course, impatience can be a strength in the ability to make things happen and break down barriers, but impatience can work against you. I have learned to appreciate and value patience and how it can lead to quality decision making. Accordingly, let’s all remember we are only seven months into the pandemic, an event that likely will go down as one of the top events of our lifetime. Coronavirus will have lasting implications on society—healthcare, real estate, transportation, dating, entertainment, travel, education. An invisible virus is altering our institutions and way of life. That’s frustrating and, frankly, scary. It’s not the end of the world, though, and humans have the uncanny ability to adapt and evolve. Take this time to think about how you can adopt a growth mindset—personally and in your career—as those who do so will profit and be happier.
How a crisis can help you cultivate a growth mindset
Everyone has had the experience of a conversation or interaction with someone who wasn’t present. The person could be distracted, uncomfortable, disinterested, or not listening and waiting for their turn to talk. Regardless, being on the receiving end of these interactions feels awful. Unfortunately, it happens too often in the workplace, and leaders are often to blame. The excuses are many--multiple priorities, overbooked schedules, and dealing with a crisis du jour. However, these de-prioritized interactions with staff are a missed opportunity to be present and listen; doing so can build morale, foster teamwork, and create a positive culture. In the words of Maya Angelou, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
Four things leaders do to motivate their workers
You’ve heard the mantra before. Leaders have all the answers. Leaders are tough. Leaders are invincible. Wrong! Leaders are human. And the best leaders can connect with and process their emotions and be vulnerable. Great leaders recognize when they don’t have an answer and build support systems. The notion that vulnerability equals weakness is anachronistic. Motivation starts with a human connection and having the courage to be authentic, admit when you are wrong, and seek help when needed. People respect and trust authenticity. So stop trying to be perfect and bulletproof and instead be more human. Throw away the “know it all” form of leadership and, instead, nurture a “learn it all” culture. You will have more fun, your employees will be happier, and the business will experience better results.
If you think running a nuclear aircraft carrier is scary, try being vulnerable
Ah, the dream of heading off to college. The freedom of spreading your wings and leaving the parental nest and experimenting with all sorts of things. The opportunity to meet the opposite sex and spend quality time in places other than your parent’s basement. Frat parties, football games, road trips, stimulating lectures, and opportunities to interact with people from different backgrounds and points of view. Such is college. But not this year. Due to COVID, incoming freshmen are dealing with limited access to campus facilities--dorms, libraries, student unions, and cafeterias. However, the wealthy class are improvising and renting group homes in exotic locations such as Hawaii, Montana, and Miami and attempting to replicate the college experience on their own. What could go wrong?!
II. The rest of the best
How to persist through unprecedented leadership challenges (without losing your mind in the process)
13 Handy Tips, Tricks, and Hacks for Using Google Docs
The few, the proud, the white: The Marine Corps balks at promoting generals of color
As telemedicine replaces the physical exam, what are doctors missing?
III. Stats that made me go WOW!
- Madeline Heilman conducted a study in 2004 where participants evaluated hypothetical personnel files for two candidates, one man, and one woman, for a potential job. The participants received the same information about each candidate by alternating the man and woman names on each of two personnel files. The male candidate was deemed more competent than the female candidate by 86% of participants. When told the candidates were equally qualified, 83% of participants said the man was more likable than the woman.
- Icon Health & Fitness, which includes NordicTrack, had March sales increase 200% from last year. April was up 400% and May 600% from 2019. The increase in demand has created a shortage in the dumbbell inventory. Demand for fitness supplies generally spikes in January and declines into the warmer months, but that changed in 2020 with the pandemic. Fitness suppliers didn’t anticipate the surge in demand, plus China makes 95% of the world’s dumbbells, and the country had strict lockdowns from Jan - April.
- Social Security is a lightning rod issue that politicians are reluctant to disrupt because it’s a critical financial lifeline in the US. Social Security is the primary source of income for most elderly. Nine of ten individuals age 65 and older receive Social Security benefits. Among the elderly beneficiaries, 21% of married couples and 45% of unmarried citizens rely on Social Security for 90% of their income. Retired workers and their dependents account for 73% of total benefits paid, and disabled workers and their dependents account for 15%.
- Zoom reported blow-out Q2 earnings. Revenue grew 355% vs the same period last year. The stock gained 40% after hours to hit a new record high. Share of Zoom have already increased 569% for the year prior to this jump. Zoom now boasts a market cap of $129 billion, meaning the nine-year-old company is worth more than IBM. Zoom is now trading at a price-to-sales ratio of 72 and price to earnings ratio of 892. Zoom is now worth more than Boeing, GM, Ford and Starbucks.
- Tesla stock is up a staggering 70% since announcing the stock split on August 11th and almost 500% for the year. It is now valued at close to $400 billion, which means Elon Musk has added around $80 billion to his net worth since the start of this year.
- Pinterest canceled plans to move into a 490,000 square-foot office space in San Francisco. The termination was $89.5 million. This yet another signal that the Bay Area’s business districts, and other urban markets, may look very different for years to come with new work-from-home policies.
IV. Name that Tune!
As I write this email, I am listening to “Crazy” by Patsy Cline.
Willie Nelson wrote the song in 1961, before his recording success. Nelson originally wrote “Crazy” for country singer Billy Walker, who turned it down because it was “a girl’s song.” In an interview with Ken Burns in 2019, Nelson said he originally titled the song “Stupid”, but changed it after playing it at Tootsie’s Orchid Lounge in Nashville, TN, and getting fan reaction. The song’s eventual success helped launch Nelson as a performer and a songwriter, and today he claims it’s his favorite song that anybody has recorded of his work. Patsy Cline was already a country music superstar when she recorded “Crazy.” It was her follow-up to the mega-hit “I Fall to Pieces.” The song is considered a crossover song and ranked #85 on Rolling Stone’s list of the 500 Greatest Songs of All Time, and third highest-ranked song by a solo female artist, after “Respect” by Aretha Franklin at #5 and “Walk on By” by Dionne Warwick at #70.
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