What do the extraordinarily successful companies have in common? To find out, we looked for correlations. We know that correlations are not always reliable; nevertheless, in the 27 survivors, our group saw four shared personality traits that could explain their longevity. Conservatism in financing. The companies did not risk their capital gratuitously. They understood the meaning of money in an old-fashioned way; they knew the usefulness of spare cash in the kitty. Money in hand allowed them to snap up options when their competitors could not. They did not have to convince third-party financiers of the attractiveness of opportunities they wanted to pursue. Money in the kitty allowed them to govern their growth and evolution. Sensitivity to the world around them. Whether they had built their fortunes on knowledge (such as Dupont’s technological innovations) or on natural resources (such as the Hudson’s Bay Company’s access to the furs of Canadian forests), the living companies in our study were able to adapt themselves to changes in the world around them. As wars, depressions, technologies, and politics surged and ebbed, they always seemed to excel at keeping their feelers out, staying attuned to whatever was going on. For information, they sometimes relied on packets carried over vast distances by portage and ship, yet they managed to react in a timely fashion to whatever news they received. They were good at learning and adapting. Awareness of their identity. No matter how broadly diversified the companies were, their employees all felt like parts of a whole. Lord Cole, chairman of Unilever in the 1960s, for example, saw the company as a fleet of ships. Each ship was independent, but the whole fleet was greater than the sum of its parts. The feeling of belonging to an organization and identifying with its achievements is often dismissed as soft. But case histories repeatedly show that a sense of community is essential for long-term survival. Managers in the living companies we studied were chosen mostly from within, and all considered themselves to be stewards of a longstanding enterprise. Their top priority was keeping the institution at least as healthy as it had been when they took over. Tolerance of new ideas. The long-lived companies in our study tolerated activities in the margin: experiments and eccentricities that stretched their understanding. They recognized that new businesses may be entirely unrelated to existing businesses and that the act of starting a business need not be centrally controlled. W.R. Grace, from its very beginning, encouraged autonomous experimentation. The company was founded in 1854 by an Irish immigrant in Peru and traded in guano, a natural fertilizer, before it moved into sugar and tin. Eventually, the company established Pan American Airways. Today it is primarily a chemical company, although it is also the leading provider of kidney dialysis services in the United States. By definition, a company that survives for more than a century exists in a world it cannot hope to control. Multinational companies are similar to the long-surviving companies of our study in that way. The world of a multinational is very large and stretches across many cultures. That world is inherently less stable and more difficult to influence than a confined national habitat. Multinationals, like enduring companies, must be willing to change in order to succeed. These four traits form the essential character of companies that have functioned successfully for hundreds of years. Given this basic personality, what priorities do the managers of living companies set for themselves and their employees?

Marriage guidance counsellors never stop hearing it. “He (or she) never listens,“ warring couples complain, again and again, as if they were chanting a mantra(吟颂祷文) . And it is the same at work. Bosses say it of executives they are displeased with, and the executives return the compliment with interest when complaining about their bosses. Customers say it about suppliers who have cocked up, and suppliers—having patiently explained why on this occasion they cannot provide exactly what is wanted—say the same about their customers. Like married couples, we all shout the accusation at others, pretending that we ourselves are faultless. Yet in our hearts we know many of the mistakes we make come about because we haven’t listened sufficiently carefully. We get things wrong because we haven’t quite understood what was wanted, or haven’t sussed out(推断出) the implications of what we were told. Anyone who has ever written the minutes of a long meeting will know how hard it is to remember—even with the benefit of notes—exactly what everyone said and, more importantly, exactly what everyone meant. But success depends on getting things right and that means listening; listening, listening, listening. Hearing is not listening. Listening is not a passive activity. It is hard work. It demands attention and concentration. It may mean probing the speaker for additional information. If you allow your mind to wander, even for a few minutes, you’ll naturally miss what the speaker is saying—probably at the very moment when the speaker is saying something crucial. But not having heard, you won’t know you’ve missed. Until too late. The most common bad habit we all have is to start thinking of what we are going to say long before the other speaker has finished. Then we stop listening. Worse still, this often adds rudeness to inattentiveness, as once you have determined what you intend to say there is a fair chance you will rudely butt in on the other person to say it. The American wit Letitia Baldridge quipped: “Good listeners don’t interrupt ever—unless the building’s on fire.“ It’s a good rule of thumb. One of the key ways to improve your listening ability is by learning to keep a wary eye on the speakers’ body language. The ways people move and position themselves while they are speaking can reveal a great deal about what they are saying. Being a good listener involves being a good watcher: eyes and ears must go hand in hand. For example, people who cover up their mouths with their hands while they are speaking are usually betraying insecurity, and may well be lying. When people rub their noses, it generally indicates they are puzzled; when they shrug their shoulders they are indifferent; when they hug themselves they are feeling threatened. If they are smiling as they speak they want you to feel the message is friendly, even if its content sounds hostile. On the other hand, if they are clenching their fists and drumming their fingers they may be restraining their anger, and may be much more furious than their words suggest. The American psychologist Robert C. Beck, who has specialized in research into how people can teach themselves to be better listeners, offers the following half-dozen rules for self-improvement. Be patient—accept that many people are not very good communicators, encourage them to make things crystal clear, and don’t interrupt impatiently or jump to conclusions. Be empathetic—put yourself in the other person’s shoes, both intellectually and emotionally; it will help you understand what they are getting at. Don’t be too clever—faced with a know-all, many people become silent, either because they don’t want to look foolish .or because they see no point in bothering to continue. Use self-disclosure—admitting to your own problems and difficulties, and to your own mistakes, will encourage people to speak openly and honestly about theirs. Ask for explanations—get people to explain points or words you have not fully understood; it is always better to ask than to press on regardless—and then get things wrong. Ask “opening up“ questions—these are gentle, unthreatening and open-ended; they cannot be answered with a mere “yes“ or “no“ and should provide no clues as to the answer the questioner might want to hear. Finally, it is almost always worth summing up the gist of what you have just been told, as quickly and briefly as you can, before the discussion ends. Nobody is ever offended by having what they have just said repeated to them. It ensures you have listened accurately and grasped the correct messages. If things go pear-shaped thereafter, at least the pears can’t be dumped on your doorstep.

It has been said that management is a science and that leadership is an art. Management is comprised of concrete, measurable skills: planning, organizing, directing, and controlling. Thumb through any management textbook and you’ll see specific models, formulas, procedures, or techniques for monitoring and Controlling performance Output. Controlling productivity through adherence to standards is the stock-in-trade of the effective manager. It’s not always an easy task, and talented managers should be given the credit they deserve in helping their organizations succeed. No organization can survive for very long, let alone earn any sort of substantial profits, without sound management. But management alone is not enough in today’s marketplace. It is the right balance, a combination of efficient management and leadership, that every organization is seeking. Just what is the new model of leadership for the 21st century? It revolves around five abstract qualities. Managers may possess some or all of these abilities to one degree or another, but these skills are distinct from the particular qualities that define management. To better understand how leadership and management differ, let’s review the five leadership competencies. Self-mastery is the foundation upon which a leader’s credibility is built and from which a leader’s image will evolve. Self-mastery involves awareness, acknowledgment, and acceptance. It’s about discovering the qualities that make you special and unique. It’s about your own talents and abilities--your personal areas of excellence. Effective leaders create opportunities to showcase their natural abilities. They uncover their potential talents by continually stretching themselves and pushing themselves to their limits. At the same time, however, the successful leader acknowledges his or her limitations. To achieve true self-mastery you must accept yourself, including your faults, totally and unconditionally. Vision is in many ways the heart and soul of leadership. While the manager must deal with issues and produce results on a day-to-day basis, a leader must focus on both the present and the future. The manager’s concern is today; the leader has a vision for tomorrow. But simply having a vision is not enough: you must make others believe in it, too. Put your plans for the future before the eyes and ears of the people around you. When other people begin to buy into your vision and make it their own, good things start to happen—and happen quickly. Leaders turn their vision into reality by constantly letting others know what’s in it for them. “Personal power“ is the ability to influence and persuade others. It is not to be confused with “position power”. Position power is embedded in hierarchical, organizational structure. Personal power is earned. You do not necessarily need to have direct authority over others to display personal power. In fact, in the most successful companies, leadership exists at all levels. Develop personal power by being dependable, following through on commitments, and demonstrating concern for the welfare of others. People will recognize your personal power and look to you for direction. Empowerment completes the set of leadership skills. Although it has become a buzz word in the 90’s, leaders have been aware of the concept of empowerment throughout the ages. Empowerment is the process by which a leader enables other individuals to successfully complete a certain job or task. It is a technique that allows you to delegate responsibility for tasks throughout your organization, even at the lowest levels. As a leader, it is in your interest to nurture and develop individuals who will one day take your place, so make empowerment a top priority. Empowerment involves three critical ingredients: skills, confidence, and authority. Evaluate your followers’ skills and provide training to improve or enhance their abilities. Instill confidence in others and raise their self-esteem by maintaining face-to-face contact and offering praise for a job well done. Furthermore, bestow authority onto other people, giving them the right to exercise their best personal judgment. True leaders are always willing to give credit to others and accept responsibility for failure, while simultaneously supporting, encouraging, and empowering their followers. If you do so, you will develop an unshakable trust bond with others in your organization, establishing your own credibility while ensuring results. No one can deny the importance of good management in a successful organization. But good management alone is no longer enough. Recognizing the difference between management and leadership, and striking the correct balance between the two, will provide substantial dividends in the long run. Management will get you through today; leadership will ensure a better tomorrow. After reading the passage, please make the best choice from the options given for each item below.

Which of the following does not belong to conservatism in financing?

The longevity of successful companies is determined by ______.

Awareness of their identity means ______.

W.R. Grace is a typical long-lived company that has run the following business except ______.

In what way are multinational companies similar to the long-surviving companies studied?