Last night was the MN Chamber’s annual Chamber Priorities Dinner. We had a table with fabulous guests, and the room was packed. Doug Loon laid out his priorities for this year’s session, which include improvements to Minnesota’s permitting process, no additional taxes, as well as a more balanced approach to employment related policy (workplace mandates). The takeaway comments for me came from an unlikely source – Kirk Cousins, Minnesota Vikings quarterback. He said, “commerce is the engine of society.” I couldn’t agree more. And we want to do all we can to support the growth of commerce. In the words of one of our upcoming Annual Meeting keynote speakers, Senator Norm Coleman, “the best thing we can do for families and our state overall is to ensure everyone has the opportunity for a good paying job.”
Week 2 of Leadership and Self-Deception: “Getting Out of the Box.” The question this week: Do I actually provoke people to resist me? When I’m trying to work with a “difficult” person, when I go out of my way to try to connect with this person, what am I most interested in – her or her opinion of me? Bud and Tom are continuing in their discussion of self-deception, about the importance of sincerity. The principle here is that leaders who are “in the box” create or exacerbate problems by trying to manipulate others. My motivation comes through regardless of my words. Others sense how I really feel about them and respond in ways that may be the opposite of what I want. Bus talks about one leader, Lou, who inspires devotion and commitment in others, even though he is interpersonally clumsy. People love working with him and they get results. “Then we have Chuck, who has a very different influence. Though he does all the ‘right’ things interpersonally, even if he applies the latest skills and techniques to their communication style, it doesn’t matter. People ultimately resent him and his tactics. And so he ends up failing as a leader – failing because he provokes people to resist him.” Pause…I’ve done that. I’ve all the said right things to someone all while thinking all the wrong things… People recognize and resent insincerity and manipulation. I sometimes think this is instinctual. We can “feel” it. And it doesn’t matter what management technique I use—managing by walking around, practicing active listening, or showing interest by asking personal questions. People pick up on and respond to the feelings behind my actions . Self-deceived leaders who try to manipulate others provoke them to resist. In contrast, an out-of-the-box leader knows “how much smarter smart people are, how much more skilled skilled people get, and how much harder hardworking people work when they see, and are seen, straightforwardly – as people.” Powerful! See you in the trenches, B
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It’s that time again! Our Annual Meeting, Presented by Xcel Energy, is fast approaching, on Feb 29 this year! Our theme this year is Building a New Table (register HERE), and we’ve invited powerful speakers to talk about that together: Tonya Allen, President of the McKnight Foundation; Ling Becker, Director of Ramsey County’s Workforce Solutions; and Senator Norm Coleman, former St. Paul Mayor. Employers are facing a very complex political, economic, and workforce landscape. Our intent is to discuss how we navigate moving forward.
This is our most important event of the year. It highlights the Chamber’s priorities and sets the stage for our work ahead. It’s also the best opportunity to network with other Chamber members and make new connections. And, of course, it’s a fun and festive event! I’m really hoping you’ll come, bring a friend we haven’t met yet! My thoughts for this week’s blog extend to my own growth moving forward. This past week I spoke with a professional coach. A good friend of mine had recommended a woman she’s worked with and, since I deeply respect my friend and how she carries herself, I was hoping that I could learn some things as well. You see, I feel like this next season of leadership will require even more of me as well, and I need some outside help to be better prepared. For me and, candidly, for you. The issue I want to lean into? Self deception. I want to check myself, determine just how much of an “echo chamber” I’m living in. In a nutshell, self-deception can either obscure certain truths about myself (that I might not see) or potentially corrupt my view of others (so that I won’t listen to them? Acknowledge their truth?). It can inhibit my ability to make wise and helpful decisions. I believe that, to the extent that I am self-deceived, both my happiness and my leadership are undermined. And so, I made the call. This coach and I had a lovely first conversation (I bet they’ll get tougher). She recommended that I read a book and then we’ll get together for a “session” to review. She’ll also have some coaching tools for me regarding how to better handle hard conversations to ensure they remain productive (and not contentious). I’ll take you through my journey this year. My goal? I want to reduce feelings of conflict, enliven my own desire and capacity for teamwork, redouble my own accountability, and amplify our ability to achieve results together. The first book I’m reading: “Leadership and Self-Deception, Getting Out of the Box” by The Arbinger Institute. This week I’ll share where I start, and the first couple of chapters. In my own terms, self-deception is my blind spot. “What am I missing?” I usually am able to build strong, productive relationships with people I work with, but not always. To the extent that I can grow and change, to improve that, I want to. The book starts with a story of an executive, Tom, in a new company. His boss, Bud, is taking him on this learning journey of self-deception. Bud starts asking questions intended to open Tom’s eyes to the idea that he, like all of us, struggles with self-deception. He just doesn’t know it (!!). Story or not, I saw myself in Tom and was feeling pinched myself. The first zingers: “Do you indulge people with kindness and other ‘soft stuff’ you can think of in order to get people to do what you want? Even though you still feel scornful toward them?” And then, “how do you feel when you’re ‘treating them right’? Are you still feeling they’re a problem?” And finally, “do you feel that you have to ‘put up with’ people - that you have to work pretty hard to succeed when you’re stuck with some of the people you’re stuck with?” Ouch. After a long conversation together, laying out examples of how self-deception interferes with productive relationships, Bud concluded: “there’s nothing more common in organizations than self-deception.” He calls it being ‘in the box.’ “Think about a person from your work experience who’s a big problem - say, someone who’s been a major impediment in teamwork. Does the person you’re thinking of believe he’s the problem like you believe he is?” “Identify someone with a problem, and you’ll be identifying someone who resists the suggestion that he has one. That’s self-deception - the problem of not knowing and resisting the possibility that one has a problem.” “Of all the problems in organizations, self-deception is the most common and the most damaging. Think about it, Tom. You can’t make headway solving problems if the people causing the problems refuse to consider how they might be responsible. Our top strategic initiative is to minimize individual and organizational self-deception.” Of course, the “people causing the problems” just may be me. Hmm. Enough for today. I have to step away, do some vacuuming, to process all this. See you in the trenches, B Last week was our annual Breakfast With The Mayors. Our opportunity to engage with Mayor Carter and Mayor Frey. Now more than ever we need leadership from our elected leaders and a keen grasp of the value business brings to the economic success of our region.
The event was stronger than ever. And our new format, a conversation moderated by Roshini Rajkumar, is fun and dynamic. Some takeaways from our mayors that we absolutely agree with: “we ARE better when we work together.” They were asked about how their approach to working with their new city councils and I really appreciated the responses we got from both. Mayor Carter talked about the need “to get beyond managing the conflict, to harnessing the energy.” Mayor Frey confirmed this as well, sharing this idea that conflict should be expected if we are to be better tomorrow than we are today. The point? Conflict is healthy, honest, and even critical to growth moving forward. If I care about you, if I care about where we are going together, my obligation to our relationship is that I speak the truth. Which sometimes causes conflict. And which isn’t always easy or comfortable. The challenge, as we’ve discussed before, is that we always assume good intent. Both Mayors also talked about the importance of sharing good news. Mayor Carter uses a nice turn of phrase: “bad news travels, but good news needs to be carried.” I agree with that! The good news they wanted to convey is that crime is down (true). And as I mentioned in last week's blog, there is still more to do to support unsheltered residents and make environmental improvements to enhance the perception of safety. Mayor Carter also was asked about plans for the new sales tax.The Chamber recently had a productive meeting with Public Works and Parks, where we mutually agreed transparency on sales tax expenditures is important. We offered the Chamber's assistance in conveying project information to our members and convening conversations between the City and the business community. Overall, I felt good about how the event went, and attendees really value the opportunity to see these mayors more relaxed, more personal. I hope you’ll consider joining us next year! See you in the trenches! B I wanted to make sure you saw my opinion piece in the Pioneer Press this past weekend. Your Chamber conducts an annual survey of both employers and residents to track trends around perceptions of public safety. My hope is to convey this idea that we have an opportunity. We have the power to improve our experience of and confidence in the safety of St. Paul. We start by paying attention to this data about the impact our surroundings have on perception. We can’t accept circumstances or an environment that drive people away from using the skyways, frequenting St. Paul restaurants and shops, or working for St. Paul businesses.
As a reminder, the good news: we have seen a 35-percentage-point drop — from 65% in 2022 to 30% in 2023 — in the number of St. Paul residents who reported that they feel crime in St. Paul is an increasing problem. While only 7% said they felt crime was decreasing, most residents responding said they felt that crime has “stayed the same” in the city. Also, while crime was chosen as the “most important issue facing St. Paul” in 2022, in 2023 “maintenance of public infrastructure” rose to the top, with “protecting residents and visitors from crime” ranking third behind “managing the needs of the homeless.” The challenge ahead for us to address together relates to the data that suggests many people have changed their behavior in response to their belief that elevated risk of crime is becoming normalized. In my experience, St. Paul’s residents, employers and employees are caring and attentive. I also know that City leadership puts public safety as a top priority. We need our city’s environment to reflect that. We want the skyways, streetscapes, and neighborhoods to be clean, safe, and welcoming for everyone because they are an expression of the pride and love we feel for our city. We want to know that our unsheltered are being cared for. We want residents and visitors alike to feel confident that a vibrant future lies ahead for St. Paul. Our survey results amplify the sense of urgency, particularly around three impactful key items (and the need for an even greater sense of urgency): 1. Safe, Clean Skyways 2. Assisting People in Crisis 3. Recruitment, Retention of Police Officers We CAN organize around the good things we all want – to live and work in a beautiful capital city that also is the best place for opportunity. And that starts with a foundation of public safety. Read more and dive into the survey methodology, data, and results HERE. I initially commented on our public safety survey I my Nov 13 “It’s Our Business” blog. In advance of my thoughts for the week, two things. First: Monday was a day to join together to honor Dr. Martin Luther King Jr, whose legacy of hope continues. I am fueled especially by my favorite of his words of inspiration: “Faith is taking the first step even when you don’t see the whole staircase.”
Second: I’d like to highlight our Celebrate Business Success/Service Success awardees for this month’s Lunch With Leaders. Congratulations first to the Pioneer Press, for 175 years in business – before MN became a state! Check out and buy their book, Twin Cities Snapshots, History through the Lens of the St. Paul Pioneer Press. I have it already and it is a beautiful tribute to our city’s history. Also, congratulations to Merrick Community Services, for their 116 years of service to Saint Paul. Merrick supports individuals and families to navigate life transitions, find health and stability, and promote independence. This includes food service, Meals on Wheels, and employment services. Interested in supporting? Ahead are a food drive, March 1-30, and their Spring fundraiser, Uplift. Last week at our quarterly Lunch With Leaders, we heard from Ben Malin, VP of the Research Division of the Federal Reserve Bank of Minneapolis. The topic? One of my favorites: “Recent Economic Developments and Outlook.” Ben described 2023 as “The Return of Supply.” It was a year of pleasant surprises in that inflation moderated, despite economic activity being more resilient than expected. Meanwhile, the labor market – thought still tight – has moved into better balance. If you remember, the Fed raised interest rates by more than 4% in 2022 and yet, in 2023, the economy modestly surpassed all expectations (measured by inflation levels, GDP growth, and unemployment). Inflation levels fell steadily from a high of 7% in 2022 to approximately 3% at end of 2023. There is anticipation for more price “deflation” into 2024, including both commodities and housing/rent prices. Still higher than pre-COVID but continuing to course correct. The big question: did we actually experience a recession in 2023? The answer is no. Overall economic growth was just under 3%, against projections of about .5% growth. Current projections are that 2024 growth will be slower, more like .5 - 1% GDP growth, but still – again – not into recession territory. What “carried the day” in terms of GDP? Mostly consumer spending. Household spending has been more resilient than expected, and workforce productivity improved. And the tight labor market is slowly returning to balance. In early 2022, nationally we saw about a 6 million-person gap between job openings and size of labor force (both employed and looking). That gap closed through the end of 2023, with labor force participation rate increasing. By the end of 2023, that gap was closer to 3 million persons, which should lead to a moderation in further wage growth. In terms of housing: in 2023, the components most contributing to inflation were Housing and Services (excluding energy) prices. Housing/rental prices look to have peaked in early 2023 and should fall further. To get inflation down to the goal of 2%, we will need to see both Housing and Services prices continue to course correct in 2024. Of note: the largest component of Services inflation has been wage increases. The Federal Open Markets Committee (FOMC) remains committed to bringing inflation back to target level of 2% (currently at approximately 3%). At their December meeting, no change was made to interest rates. Most news out of that meeting were results of economic projections we’ve discussed above. We may be near the peak of the policy rate hiking cycle, and the FOMC now is at the point of the monetary policy “tightening cycle” that requires even more care. Chair Powell’s post-meeting remarks reflected that: “We will continue to make our decisions meeting by meeting, based on the totality of incoming data…” So we’ll see. If you’d like to see the FOMC’s projections for 2024, you can read these notes and summary of economic projections from the December meeting. See you in the trenches, B |
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