Consistent Philosophy of Life Essay

AbstractThis paper focuses John everyisons way zeal, what he finds to be the essential characteristics of a leader, and how he employs ethics and principles in this everyday emotional state, in business, and as an educational leader. He is the former chief executive officer of BB&T and current leader of the CATO Institute. There is minuscule distinction between Allisons leadershiphiphip style and his doctrine. His ism hatful be directly utilise to any(prenominal) situation, challenge, or circumstance. Allison is dissolve driven and delegacy oriented, and he applies a set of ten principles to touch his cathexis. This paper pass on also look at how Allison defines a pot, mission, values and principles. Each of the ten principles be examined, and finally, the paper will look at some of the detractors of Allisons philosophy.John Allison, Consistent Philosophy of Life, impressive Manager of Business, and Important Contri plainlyor to Society. John Allison resilients by a clear philosophy that permeates every t unmatchable of his life. He built a multi-billion dollar bank (BB&T) on it, and managed to stay away from toxic investments that direct to the downfall of many banks because of it. He is now taking this passing example, completely integrated, and fully comprehensive philosophy to the quietus of society by donating clock and money to universities by justifying the morality of capitalism and logical thought. nearly recently, he was appointed to lead the Cato Institute, a Libertarian hark back-tank. An effective tutor instills purpose in themselves and their employees and lives by a set of values or principles that manifests purpose into actuality.The purpose needs to be clear and the principles moldiness be interconnected and consistent. Failure on one principle is failure on all principles and thus, the slew, mission, and goals of an organization ar jeopardized. This apprehension is consistent with hexad competencies detailed in Hellriegel, Jacosn, and Slocums text book, Managing, A Competency-Based Approach. For example, an organization determines that it mustinessiness outsource a piece of their production (Strategic Action). Therefore, executive management must effectively work with trading operations professionals (Teamwork), who must develop and action plan (Planning & Administration) and Communicate that plan to line conductors.It is imperative that executive management c argonfully considered the cultural drivers of the country that they be entering (Multi-Cultural). Finally, whether this strategy is effective hinges upon whether all levels of employees sacrifice profound Self-Management skills. Failure on any part of these competencies will lead to failure on the whole. Hellreigels six competencies pass John Allisons integration streak however, Johns principles remove the organisational crystalline lens of the six competencies to make them more basic and universal. This paper looks at Jo hn 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 drop down some time with the detractors and mis earnings of Johns philosophy.John Allisons Management StyleIt is impossible to explain John Allisons management style without getting into the details of his basic philosophy first. The Richard Craver of the Winston-Salem Journal referenceed Allison in July 2010, and he tell that, the key lesson of Allisons success is that if you get the basics right, the details will follow, and you will run your business right. If you get the basics wrong, youll ultimately make a fatal mistake in the details (Craver 2011). Allisons basics be a purpose driven life and organization that is achieved done principles. This philosophy is detailed in a 30 page employee handbook that all employees be judge to understand and has remained consistent at BB&T fo r over 20 years. As a result, BB&T attracts employees who agree, and repels employees who disagree. After a quarter century, they ca-ca established a culture of great coherency, and in business, that is a great spring (Craver 2011). From a bigger picture perspective, John Allisons management style is utilitarian in its onward motion however, this implies that BB&Ts goal is to simply be profitable.However, profitability is a actor to the overall vision of BB&T, which is to make the gentlemans gentleman a break away manoeuver to live in (Allison 2011). Allison explained in a censure at Wake Forrest University that money is non the end game instead profits ar the means of the overall goal (Allison 2011). The utilitarian methodical approach may be considered amoral, at outgo however, it becomes highly moral in the context of a moral vision and purpose. At the singular level, BB&T does non simply manage employees, instead, they develop leaders.Allison explained that Most bus iness failures are due to leadership failures most of those are the result of personal leadership failures (Allison 2011). Therefore, each employee is non just given a handbook of BB&Ts vision, mission and values, solely they also attend a presentation given by Allison himself. In this presentation, Allison explains that there are two fundamental aspects to leadership. First, leaders must create a sense 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 mean(a) performers to perform at an above average out level and prevents the Great from becoming average.Allisons Clear philosophyAllisons philosophy can be summarized by a general vision that is manifested by a mission statement. The vision is To make the world a place that you want to live in (Allison 2011). The mission is to apply principles that amend the odds of staying alive, becoming su ccessful, and ultimately universe happy. The ten principles are further delimitate herein and are universally applied to somebody and organizational missions. Allisons personal vision and mission parallels BB&Ts vision and mission statement, which is To make the world a better place by Helping our clients achieve economic success and financial security creating a place where our employees can learn, invoke and be fulfilled do the communities in which we work better places to be and thereby, optimizing the long-term return to our shareholders, small-arm providing a safe and sound investment (Handbook 5). With the Vision and Mission clearly defined, Allisons ten principles are formula 1 RealityThe reality principle is an Aristotelian construct that A=A. In an interview with New York Times, Allison said that, Wishing something is so does not make it so (Martin 2009). Although this concept seems very simple, there are plenty of examples in hi business relationship where several(p renominal)s, regimens and businesses evaded reality. Allison projected that, I guarantee that long before the rest of us k refreshed, those geniuses at Lehman Brothers, knew that something was wrong, but they evaded it (Martin 2009). Reality is independent of pledge. 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. BB&T avoided the subprime market by not evading reality and being accountable for evaluating authority and determining what was true (Allison 2011). Reality is also independent of popularity. For example Galileo bucked the popular belief that the dry land revolved around the sun.Principle 2 Reason / ObjectivityAllison contends that mankinds competitive returns 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. God created man in the realise of God. Therefore, to occasion is to approach God and to fulfill His intention for mankind. Allison applies Aristotles model of thought. First, base premises on facts second, use inductive and deductive moderatenessing third, integrate decisions that are not contradictory and forth, use conclusion to reach a higher level of thought ( decease the cycle again). Deductive reasoning is the concrete employment of a general principle. Inductive reasoning is the taking a general principle and applying it to a special(prenominal) application. BB&T has been a highly strategic organization, which requires objective thought and facing reality. In the late 1980s, laws were rough to change that would allow banks to enter other states.Realizing that North Carolina would soon be flooded with argument from big banks, he began a series of intra-state acquisitions prior to the changing of the laws. This allowed them a head start on the out-of-state competitio n while giving BB&T the experience to perfect the merger process well before the big consolidation of the industry. Allison recognized the reality, used inductive 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 BB&T was paying alike much for some of its acquisitions, the strategy paid off. BB&T defended its office staff 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. mend few have been able to get away with a consolidation strategy, but one of the best is BB&T, an SNL Securities analyst told the Business Journal Serving Charlotte and the Metropolitan Area (BB&T.com). Allison also uses reason to implement a method of philanthropic activities in order to b e more effective found on BB&Ts core strengths. Allison explained in Philanthropic Magazine that, The money that was being spent wasnt exhalation to promote the well-being of our company or our country. We needed to focus our contributions on something that will matter, and we think that presenting the concepts that brace up capitalism is essential for both BB&Ts 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 whims are generated by the individual. A team 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 only guid e deal, 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 tell 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 demythologised capacity, and a capitalist system allows him the greatest individual freedom to exercise that capacity for creativity and figureand to be rewarded accordingly. It is, in a very deep sense, a just system (Sparks 2011).Principle 4 ProductivityProductivity is a measurable at the organizational lev el though output and profitability. A profitable business is a corking thing. to a greater extent fundamentally, productivity is the gut-level commitment to get the job do (Allison 2011). From a Christians perspective, production and productivity is a very spiritual concept the idea that something tangible was formed from the intangible. This is especially spiritual when the idea was inspired done prayer 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 return 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 flying certainly is one of productivity. He started at BB&T, once ac agnizeledgen as the Branch 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 BB&T into the 11th-largest bank in the nation, with $152 billion in assets, according to the bank (Martin 2009). Allison commented on BB&Ts Sterling Award winners (internal awards based on productivity). He noted that the same population 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 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 stick 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 legal proceeding are going to take place. (Sparks 2011)Allison explains that being honest 100% of the time is a true test of integrity. For example, You can be wrong and be honest. We are not omniscient. Therefore, We must mean what we say and cheat 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 intermission point, or the poor performance leads to major mistake.The employee never 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 richescare Capital Management. He also subscribes to Allisons objectivist philosophy. Leoper references Ayn Rands description of morality as the, Judgment to discern right and wrong, vision to see the truth, courage to act u pon it, dedication to that which is heavy, 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 much(prenominal) actions will have an eventual consequence.A key example of Allisons integrity was after the Supreme Courts notorious Kelo decision. BB&T was the only major bank not to provide financing for projects that used land seized through eminent 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 common stance against Obamacare and was nearly thrown out of his own organization.Mackeys conclusion was that he wi ll think again before making political comments. Allison, however, disagreed and explained, Im a person that believes very powerfully in my principles, and I cant sacrifice them in my business, regardless of the consequences in the short-term. We took a steadfast position 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 philia 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 BB&T 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 virtuously wrong. (Vegter 2011)Allison took a visible stance against the federal government once again in 2008 when he submitted a 14-point letter to Cong ress 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 BB&T (Craver 2011). His integrity was questioned when BB&T accepted TARP monies shortly after the closed-door academic term with the nations political leaders. Shortly 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 extract being exerted against independent businesses again.Principle 7 Justice / FairnessAccording to Allison, The well behaved 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 equate outcomes not unequal input is truly unjust. Since individu als are not the same in their talents and abilities, a managers key function is to evaluate and judge others. This is a difficult function therefore, Allison prescribes a triad 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 pride as the ultimate virtue because in order to have pride, all other virtues (justice, honesty, integrity, and logical independent thought) needed to be mastered. The pride described here is not arrogance or hubris, but instead, it is the reward to do good deeds and the reward for havin g 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 pissed ethics. In a defiance allusion to 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 are capable of being good and that you have the moral rig ht 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 freedom fighter 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 fight then ensues, and Johnnys mother 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 heart 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 unfortunate to others for being great. This is envy, which is the ultimate immoral pastime. Allison explains that, yo u 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 particularly 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 moral high ground. A free society is the only soc iety in which people can think for themselves and pursue their rational self-interest. Freedom creates the ability, through creativity and incentive, to raise the look of life for everyone. When I was CEO of BB&T 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 regulation prevented us from doing it. Unfortunately most business leaders are not really capitalists. They are crony capitalists looking for some way to use the government to give them a special advantage. Cato is a defender of real capitalism, real free markets (Benko 2012).Principle 10 TeamworkIn a philosophy that is built on the individual and self-motivation, teamwork 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 makes 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 include 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 largely 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 happy 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 connect 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 p hilosophy. 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, BB&Ts elder management style is written in its literature as being as participatory, team oriented, fact-based, and rational (BB&T 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 (BB&T History 112).All of these definitions and concepts line-up with Allisons core philosophy. BB&Ts website explained that, Allisons management style stressed decentralization, striving for a community banking feel at the branch level (BB&T.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 find 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 mortify and yours is in heaven, and there is no favoritism with him.ReferencesAllison, John (7/21/11), Principled Leadership Lecture at Wake Forest University Schools of Business. http//vimeo.com/27183721BB&T (1998), The BB&T Philosophy Mission and Values guidebook.BB&T (2012), Our Account, History of BB&T 10th edition 2012.Benko, Ralph (7/2/12), Who Is JohnAllison? A Randian, Libertarian Business Icon T akes 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 second 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. 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