January 25, 2015

Review Corner

To be dishonest is to be disconnected from reality, which is a very unhealthy place to be.
I promised some kinder words for Objectivism. Cato CEO and BB&T Hoss John Allison is on the Yaron Brook level of describing the ideas of Ayn Rand. And in the follow-up to his impressive "The Financial Crisis and the Free Market Cure: Why Pure Capitalism is the World Economy's Only Hope" [Review Corner], He shares the principles -- heavily derived from Rand -- that he used to build a large and profitable bank that navigated the stormy seas of the Panic of '08 without even a quarterly loss.

The Leadership Crisis and the Free Market Cure: Why the Future of Business Depends on the Return to Life, Liberty, and the Pursuit of Happiness can sit on the shelf with all the pop business management books, but it adds quite a bit to the formula: wait for it . . . a philosophy and moral foundation. I have enjoyed many books in this genre, recently Bob Lutz's [Review Corner], but the implicit message is always "be a greater person ---be like me;" Allison gives a template that can be adapted to any organization or used by an individual for personal improvement.

Many people view integrity as some form of duty. Integrity is not a duty. It is a means to improve the probability of being successful and happy. The concept is to develop your principles outside the "heat of battle" and then to consistently apply those principles in the heat of battle because you know that living these principles improves the probability of being successful and happy. Therefore, it is important to not view integrity as a duty or some kind of ill-defined obligation. This perception encourages you to "cheat" on the very principles that are fundamental to your success and happiness.


Because there is a proper method for judging individuals and because individuals must be evaluated as individuals (because they are individuals), collectivism and all its ugly variations should be rejected. Collectivists judge individuals by their membership in groups. Since all the individuals in the group are different and therefore should be judged differently, collectivists have a 100 percent error rate.

My management days are well behind me but I enjoy business books and think we all our own managers and leaders in all but the most non-autonomous organizations. Allison's "core values" are valuable at any level.
We have now reviewed the 10 core values used at BB& T and my personal values: reality, reason, independent thinking, productivity, honesty, integrity, justice, pride, self-esteem, and teamwork. Upon reflection, one can see that not only are these values not contradictory but that they are integrated. Failure to execute on one value will make it impossible for you to execute on another value.

I deducted 0.5 stars last week to Alex Epstein for inserting philosophy where I felt in extraneous. It's central -- primary -- to Allison's book (though both are excellent proponents). Allison gets five stars.

Review Corner Posted by John Kranz at January 25, 2015 10:45 AM
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