This is a fascinating Charlie Rose interview with Lynda Resnick (entrepreneur – she started POM, businesswoman, and author of “Rubies in the Orchard”). I’ll admit that I only knew her name and not much about Mrs. Resnick prior to this interview. After this, however, I am a big fan.
One of the most important point she makes, in my opinion, is how company management must behave in this day and age.
“Community and transparency. That’s the 21st century story. That’s the thing, that unless you’re a good corporate citizen, unless you’re a good citizen of the planet, unless you treat your employees well, unless you give back to the planet, there is not place for you in this new culture.
And you have to be totally transparent. You have to make your employees part of the solution to whatever’s going on. In this stressful time, with this evangelical pessimism that has invaded our culture, you have to be honest with your employees. You have tell them where they stand so they don’t come to work depressed every day, and it’s amazing what you can get in return, if you do this.”
She is on to something important here. While it sounds straightforward, many managers underestimate their impact on their employees, the environment, and society in general.
In the 21st century, especially with the direction Obama is heading right now, it will pay to be good.
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I would also include her keypoint about transparency in your assement as well for money managers (Hedge Funds). Money on the sideline is waiting to come back but it will only go to those managers that provide transparency at all levels of their business going forward (investment strategy as well as operational infrastructure).
Going forward I think that Hedge Fund managers should warm up to the idea that the assets in their funds will probably be less than the assets they manage via managed accounts.
As a side note I find your blog the most interesting out of all of them that I read and I am enjoying your more frequent posts in 2009. Keep up the good work.
Shiphouse, I really appreciate both the kind comments and the feedback.
I agree that transparency among money managers has to clear up. The Obama administration will make that happen, I am sure. The problem is that most investors should be requesting that themselves rather than waiting for it to be provided only when mandatory. If a manager will not disclose certain obvious information, investors should be and will be more careful going forward. Madoff was big enough to teach everyone that lesson.