Gilbert Fiorentino may not be a household name, but millions of online shoppers recognize the name Tiger Direct.

In a nod to the corporate excess and bad culture, as represented by John Thain and disgraced CEO Dennis Kozlowski, we now have Fiorentino.

The truly shocking part of this story is found in the comment section; the stories from employees whose descriptions of their work environment will raise your hackles even as they make you cringe.

Dell sued TigerDirect for trademark infringement for “repeated and blatant” violations regarding the resale of its computers and in 2008 the Florida Attorney General’s office sued for failing to pay advertised rebates to consumers.

But this isn’t just another CEO running amok.

Fiorentino may have founded Tiger Direct and be CEO of CompUSA (bought out of bankruptcy), but Systemax owns the whole shebang.

And it is Systemax that turned a blind eye for all those years as Fiorentino created and maintained a culture of intimidation and abuse of both employees and vendors for more than a decade.

“He was making a lot of money for the company and I think people looked the other way for a long time. … If he wanted it, he took it, for whatever reason,” –William “Cully” Waggoner, a former employee who was fired in 2009 after five years with the company, but won a court settlement challenging the action. A blind eye until a worm turned and made that fateful whistleblower call.

Now Systemax claims it wants to change its corporate culture.

A memo last week to employees talked about embracing changes like a more “open management style” and elimination of competitive postings of hours worked by each employee. “The prior management regime was not the reason for the Company’s success – you were.” –Systemax Executive Committee

This is the same executive committee that was blind all those years.

If you believe them I have a great buy on a gorgeous orange bridge that would look terrific on your front lawn.

Flickr image credit: http://www.flickr.com/photos/salim/402620871/

Monday I wrote how people’s short attention span and memory plus general apathy enable the Teflonizing of brands that screw up, so that nothing sticks.

This is just as true of all the personal brands jousting for space on the planet.

Coincidentally to my plan for today’s post, Phil Gerbyshak Had a guest post Wednesday by Sally Hogshead, author of Fascinate, called Powerdrunks: How They Got That Way, and Why You Might Become One.

Sally’s explanation on what drives a power trip makes additional comments superfluous, so read that post before continuing with this one.

Sally gives good advice on how to stop yourself from becoming powerdrunk, but what of all those who are not only powerdrunk, but Teflon-coated?

Think Bob Nardelli, John Thain, others on this list, the jerk in the next cubicle who was fired only to surface at the cool company down the street or any politician/any party.

How do they do it? How, no matter what, do they come up smelling like a rose in another position of power?

Like companies, they take advantage of spin, but rely mostly on charm, too many managers’ intense dislike of the interviewing process, including on senior levels where, it is assumed, the recruiter has done most of the work, and selective hearing when checking references.

Teflon goes on layer by layer each time there are no consequences for the actions; most people function on the what you see is what you get, so eventually invincibility sets in and the whole Teflon process becomes self-fulfilling prophesy.

But what can you do when the decisions aren’t yours?

You can actively remember; actively means reminding others even when they don’t want to hear it. You can learn to be honest and still legal when giving a reference. You can care about those around you and protect them from powerdrunks. And if they are politicians don’t vote for them and don’t allow them to hide behind their ideology—even when it’s yours, too.

In other words, change your MAP, since you can’t change theirs.

Flickr image credit: http://www.flickr.com/photos/portland_mike/4588219036/

Seems that leaders everywhere are drowning in egotism; many are going down for the third time and haven’t even noticed. So I thought that I would dedicate today’s Quotable Quotes to egotism—long may it reign rot.

Egotism has to be at the root of the old saying,“He has lulled himself into a false sense of competence.”

Or, as Dan Post said, “Egotism is the glue with which you get stuck in yourself”

Colin Powell warned about a condition I call “ego merge” (I’ll write more about it Tuesday) when he said, “Never let your ego get so close to your position that when your position goes, your ego goes with it.” Obviously that doesn’t happen to the Fulds and Thains of the world.

Then, again, they may have learned the truth of Martin Dansky comment, “If you’ve chosen egocentricity for your career path than you’ve chosen to live with the illusion that your surroundings will serve you continuously.”

Have you ever considered that egotism is a kind of anesthesia? No? Bellamy Brooks and Frank Leahy both came to the same conclusion.

Brooks said, “Egotism is the anesthetic given by a kindly nature to relieve the pain of being a damned fool”

But Leahy was more direct, “Egotism is the anesthetic that dulls the pain of stupidity.”

And since we’re on the subject, join me next Sunday for a quotable look at egotism’s co-joined twin, arrogance.

Flickr photo credit to: http://www.flickr.com/photos/mrs_logic/3556644715/

Trends come and go. In its Innovation special Business Week takes a look at leading trends in the business community. Last year was all about execution, but that was then… (While you’re there be sure to check out the Special Reports.)

This year’s emphasis on strategic thinking suggests that, like an individual recovering from a personal upheaval, businesses today are taking stock: reviewing their options, rethinking their strategies, considering new opportunities and innovations.

Another trend is the questioning of CEO compensation, once strictly the province of the board of directors and a few consultants, today it’s everyman’s topic of conversation. Do you think today’s CEO compensation, not just on Wall Street, but in general, is fair and appropriate? Do the incentives work? Do they focus too much on risk taking or do they encourage excessive caution? Read this interview for some excellent insights.

Wharton accounting professors John Core and Wayne Guay have just completed a study on this topic titled, “Is There a Case for Regulating Executive Pay in the Financial Services Industry?“

Speaking of fortunes, what do the elder statesmen of Wall Street, guys like George Soros, Nicholas F. Brady, John S. Reed, William H. Donaldson and John C. Bogle have in common with you and me? Surprise, surprise, they all believe that Wall Street needs to be reigned in.

They grew quite wealthy in finance, typically making their fortunes in the ’70s and ’80s when banks and securities firms were considerably more regulated. And now, parting company with the current chieftains, they want more rules.

Another rich guy is John Thain, a trend of his own. Fired from his CEO aerie he has landed on his golden feet at CIT. The man who didn’t see anything wrong with spending $1.2 million renovating his office in 2008 is now responsible for the company that provides financing for SMB, as well as being the third-largest railcar-leasing and aircraft-financing firm in the U.S. In his hands rests much of our future—at least he’s not planning to redecorate.

“This is a company that’s over 100 years old and its core business is lending to small- and medium-sized companies,” Thain said yesterday in an interview. “If we’re going to get the U.S. economy to continue to grow, if we’re going to create jobs, then we need to have this kind of a company do well.”

Our final trend comes from Forbes, famous for the way it slices and dices lists of wealthy people. Its newest look offers yet another one—billionaires under age 40.

Of the current eight, four are from China, three are from the U.S. and one is from Japan.

Image credit: pedroCarvalho on flickr

At some point in the rise of the modern leadership movement, and the ensuing profit-making industry, leadership and management were set on divergent courses, with leadership presented as the brilliant star and management as the subservient drudges.

The results of this extreme focus on vision and influence are being felt globally in the form of the economic meltdown led by the Wall Street leadership who were above the mundane and wouldn’t dirty their hands with the gritty details of management.

In a brilliant opinion piece, Henry Mintzberg, Cleghorn Professor of Management Studies at McGill University, founding partner of Coaching Ourselves and author of numerous, says, “U.S. businesses now have too many leaders who are detached from the messy process of managing. So they don’t know what’s going on. … Unfortunately, detached leaders tend to be more concerned with impressing outsiders than managing within. “

The current rise in advanced degrees in leadership can do nothing more than exacerbate the already dangerous attitude that so-called leaders are different/unique/special and, therefore, entitled.

And it is that sense of entitlement, exemplified so well by John Thain, that got us into this mess.

Those who want only to lead should become consultants and stay out of line positions, executive or not, where they can do so much damage.

Consultants are paid for visions, excel at influencing and then walk away bearing absolutely no responsibility for the results.

When will we stop this nonsense and accept that, depending on circumstances anyone can lead, anyone can follow, the positions aren’t cast in stone forever and the whole shebang needs to be managed along the way.

Your comments—priceless

Don’t miss a post, subscribe via RSS or EMAIL

Image credit: ravasolix on sxc.hu

Greed is certainly in the news these days, from stories about it to tirades against it, so it seemed like a good time to offer up a few you may not have seen recently.

“Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction.” –Erich Fromm (Hello John Thain and friends, I think Erich is talking to you.)

“It always seemed strange to me that the things we admire in men, kindness and generosity, openness, honesty, understanding and feeling are the concomitants of failure in our system. And those traits we detest, sharpness, greed, aquisitiveness, meanness, egotism and self-interest are the traits of success. And while men admire the quality of the first, they love the produce of the second.” –John Steinbeck (This is so true it makes you want to weep.)

“To make a business decision, you don’t need much philosophy; all you need is greed, and maybe a little knowledge of how the game works.” –Bill Watterson (After listening to all the rationalizations and excuses for what’s happened this is the first thing that makes sense.

Finally, to round this out I’m adding something I said during a conversation. I can’t remember having read it, but I doubt it’s really original.

“Greed is the driving force in the pursuit of many things besides money.” Me

What about you? Any thoughts on greed—your own or someone else’s?

Your comments—priceless

Don’t miss a post, subscribe via RSS or EMAIL

Image credit: sxc.hu

John Thain was lauded as a brilliant leader for years. but he fascinates me as an example of the MAP (mindset, attitude, philosophy™) that is so ingrained and prevalent in a large portion of executives, especially in the financial sector.

Thain became Merrill Lynch’s CEO December 1, 2007. One of his first acts in 2008 was to renovate his office to the tune of $1.2 million. The redecoration included “$87,000 for area rugs, $35,115 for a commode on legs, $25,000 for a pedestal table and $68,000 for a 19th-Century credenza.”

Fired one year later Thain said, “They were a mistake in the light of the world we live in today,” Thain said in a memo to top executives dated yesterday. “I will therefore reimburse the company for all of the costs incurred.”

Search as I might I can’t think of any past world or circumstances that would make those purchases using corporate money acceptable. Ignored, but not acceptable.

Another example of Wall Street MAP comes from the wife of a securities executive who explained how an after dinner game called “credit card lottery” worked, “Each man would take a credit card out of his wallet and toss it onto the table. Then someone — usually their server — would be asked to pick a card and bellow the owner’s name so everyone in the restaurant could hear. The “winner” would pay the bill, which often tallied $1,000 or more.”

There are many more examples, but can’t you hear the echoes from the playground of “My dad can whoop your dad” and as they got older the locker room “Mine’s bigger than yours.”

The problem is they never stopped.

Lay and Skilling; Bernard Ebbers; Dennis Kowalski; Richard Fuld; Bernard Maydoff; to name only a few.

One or two could be put down to insecurity, but this is more like an epidemic of arrested development.

But it’s Thain’s words “in the light of the world we live in today” that are truly appalling.

They seem to mean that nothing has changed. The excess was OK before the meltdown and will be OK again when the economy is back on its feet.

This is just a minor setback—we are still entitled.

Your comments—priceless

Don’t miss a post, subscribe via RSS or EMAIL

Image credit: flickr

Egoship. I doubt that I coined the term, but I did think of it independently. It’s been popping into my head for a number of years now as I read stories of astronomical pay packages for business leaders.

It didn’t take a business guru to start noticing that along with those salaries seemed to come an ermine cloak, although some were sable and others only mink, and the egos that went with them.

And considering what’s happening, things aren’t changing as much as you’d think—or like.

“Six top money managers of Harvard University’s endowment, which has lost $8.1 billion since the summer, earned $26.9 million in compensation in its most recent fiscal year.”

“Banks that are getting taxpayer bailouts awarded their top executives nearly $1.6 billion in salaries, bonuses, and other benefits last year, an Associated Press analysis reveals.”

“Six financial firms that received billions in bailout dollars still own and operate fleets of jets to carry executives to company events and sometimes personal trips, according to an Associated Press review.”

“The highest-ranking executives four firms have agreed under pressure to go without their bonuses, including John A. Thain, who initially wanted a bonus this year since he joined Merrill Lynch as chief executive after its ill-fated mortgage bets were made. And four former executives at one hard-hit bank, UBS of Switzerland, recently volunteered to return some of the bonuses they were paid before the financial crisis. But few think others on Wall Street will follow that lead.”

Of course not. Wall Street egoships aren’t going to give back anything, they had to be forced to forgo what they did. Why should they take a hit for the trouble they caused? It would be almost un-American.

And as Michelle Singletary said today, “Who in their right mind thinks a chief executive earning a $1 a year is actually making a sacrifice?”

Of course, Wall Street sticking to its ways as much as possible should have been expected. The great thing about egoship is that it knows it can do no wrong, so it never needs to apologize or take responsibility.

And if the reformers show up at its door egoship knows exactly what to do:

• Say all the right things;
• make impressive, empty gestures;
• be patient until they forget and go away; and then
• return to business as usual.

Are we going to forget this time? You tell me.

Your comments—priceless

Don’t miss a post, subscribe via RSS or EMAIL

Image credit: sxc.hu