Reading: Winners Never Cheat by Jon M. Huntsman

This 2005 offering from Wharton School Publishing offers nothing new, but that’s exactly the point. Every principle of the book is a “fundamental” of human interaction – the lessons we were (or should have been) taught by our parents and elementary school teachers – applied to surviving and thriving in the business world. And Huntsman is someone who’s got serious credentials when it comes to “thriving”: he built and ran the world’s largest private chemical corporation (although it has now gone public), an operation that generates over $12 billion in annual revenues.

In a very conversational style, Huntsman lays out his views on basics like fairness, honesty, respect, following our internal moral compass, and giving back. He shares from a rich bank of personal and business experience examples of how living these principles has had long-term effects for individuals and for his company. Some of these examples draw a stark contrast between what might be considered normal, even prudent, business practice and what Huntsman describes as “larger issues of personal ethics, integrity, and human decency that…ought to override the traditional standards of professional practices.”

He tells the story of one of Huntsman Chemical’s many acquisitions, in this case of a substantial portion of the operations of a British chemical concern. He describes a heated negotiation with the target’s CEO, whose wife was battling cancer over the long months that the two men discussed the terms of the deal. Finally the major elements were hammered out, but a number of issues remained on the table. At this point in the negotiation, the other CEO’s wife succumbed to the cancer and passed away. Huntsman describes his decision to forgo further negotiations and let the deal stand as it was. He says this decision cost his company a couple of hundred million dollars, but he gained a lifelong friend.

In another example from the world of mergers and acquisitions, Huntsman once made a handshake deal for another company to purchase a 40 percent stake in one of his divisions for $54 million. It took six and a half months for the lawyers (he’s got a whole chapter on lawyers…) to get the deal on paper. In the mean time, because of drops in raw materials prices, profits at the division had tripled. The CEO of the other company called Huntsman with a proposal: the division was now worth about $250 million, and he was willing to pay half the difference from the original offer. Huntsman countered that they had agreed on $54 million, and that the deal would stand there. The other CEO protested that it simply wouldn’t be fair to Huntsman. Huntsman’s reply: “You negotiate for your company…and let me negotiate for mine.”

Huntsman’s behavior in both of these instances runs counter to one of the basic tenets of the gospel of business: “Thou shalt maximize shareholder value.” Similar decisions in a publicly held company would likely result in shareholder lawsuits and calls for resignations. After all, a couple of hundred million here and a couple of hundred million there, and pretty soon you’re talking about real money.

But in a world where, at best, many people fail to genuinely consider moral and ethical issues as they make business decisions large and small, and, at worst, the “as long as we don’t in trouble for it” philosophy prevails, perhaps it’s time for a swing to the other extreme where a handshake costs you a couple of hundred million but it’s worth it to preserve the value of your word.

Wrentham Wroad Wrace Wresults

I ran a 5K over the weekend, the Wrentham Wroad Wrace in Wrentham, Mass (view the course map, courtesy of RunningAHEAD.com, an excellent website I use for logging my runs).

This was my first race of the season. I posted a 26:09, just 0:17 over my personal best. Unfortunately, pacing was an issue as I ran the first half of the race at about 8:50/mi and the second half at about 8:00/mi. Still, I was pretty happy with the time. I'm going to try to run in at least one more 5K in October, and I'm shooting to break 25:00.

Reading: Novus Ordo Seclorum by Forrest McDonald

Synopsis

Forrest McDonald's 1985 work entitled Novus Ordo Seclorum: The Intellectual Origins of the Constitution has been touted as "the best single volume on the origins of the Constitution." McDonald's stated purpose is to provide a "reasonably comprehensive survey of the complex body of political thought (including history and law and political economy) that went into the framing of the Constitution."

McDonald begins with a brief overview of the situation facing Americans in 1787 and the guiding and limiting considerations facing the framers. He then outlines the origins of the concepts of "rights" and "freedoms" in English constitutional and common law and describes how these principles were applied and evolved on the American continent. Next we are introduced to the systems of political and economic theory that informed the framers' views. Finally, the introductory discussion turns to the lessons of experience learned from 1776 to 1787.

Having set the stage in this way, McDonald introduces us to the framers - their guiding principles, political leanings, and special interests - and guides us through the convention itself, frequently describing individual motions, votes, and committee actions to illustrate how the process of writing the Constitution actually shaped the document. Finally he analyzes the outcomes of the convention, in terms both of the unique, novel structure of the United States government and of the consequences of that structure on itself over time.

My Thoughts

My key takeaway from this book is that the U.S. Constitution was formed through a grueling political process. I guess I had always thought of the Convention as somewhat of a tea party where everyone was polite and more or less agreed on what the government should look like. This book revealed to me how many ways the Constitution might have never happened at all, how many wildly different views the framers had, and that special interests, political maneuvering, and some downright dirty tricks in the Committee of Style shaped our governing document.

I also gained an appreciation for how oversimplified our discourse about "original intent" tends to be. I'm a pretty strict constructionist: words have meanings, and reason puts boundaries on how far we can stretch those meanings before they break. However, I now understand that the Convention was replete with verbal sparring, walk-outs, and narrowly carried motions. When a motion did manage to pass, the framers didn't always agree on its implications, and what ended up in the Constitution itself didn't always reflect what had been voted upon. Federalists and Anti-federalists would claim philosophical victory by interpreting identical sections of the constitution to support their positions. So understanding the "original intent" of the framers, therefore, is not just an exercise in reading and interpreting the words in the Constitution, but understanding the many intellectual, philosophical, political, economic, legal, and religous forces that formed the context in which the framers worked and out of which the Constitution was created.

"Sunday, Bloody, Sunday" by George W. Bush

I have a soft spot in my heart for U2's early stuff and anything that allows a healthy chuckle at George W. Bush's public speaking ability, making this video a two-fer!

Kevin Kenner recordings

First post!

I was listening to the Chopin Ballade #1 in G minor this evening and was reminded of a wonderful artist, Kevin Kenner, whose interpretations of Chopin are stunning. It had been a few years since I had looked for anything from him online, so I decided to Google him to see what I could find. I was delighted to discover his website and that he's recorded a whole bunch of Chopin (and Ravel, and Piazzolla, et al.), including the 24 Preludes, the 2 Concerti, the 4 Ballades, and several shorter works.

These recordings have immediately moved to the top of my wish list. I'll post more when I actually hear them, but my expectations are very high.

There's sort of a personal connection here, which you might find interesting:

Kevin Kenner grew up in San Diego, CA, and studied with Krzysztof Brzuza for a number of years there. I also lived in San Diego, from 1990-1994, and my parents met Kevin's parents (not that I'm on a first-name basis with the guy, but "Mr. Kenner" sounds so formal...) early on in that period. It was thanks to an introduction by Kevin's parents that I, too, had the opportunity to study with Mr. Brzuza in 1991-1992.

I first heard Kevin play Beethoven's Emperor Concerto with the San Diego Symphony in 1992, two years after he became the first American to medal at both the International Tchaikovsky Competition and the International Frederick Chopin Piano Competition. As a 17 year-old aspiring pianist, I was thrilled to see Kevin play, especially after all I'd heard about his success. I remember thinking, "Wow. Here's someone whose path I'm now following in some way. Maybe I can do this!" My only other interaction with him was as a music student at BYU. He came to conduct a masterclass during my sophomore year (1997-98), and I was invited to perform the Rachmaninoff Etude-Tableau in G Minor (Op. 33, No. 8). I was impressed that Kevin remembered me from our brief back-stage conversation in 1992, and he offered some terrific feedback on my playing.

Books I'd Like to Read

I'll try to keep this post updated with books I'm interested in reading as I discover them.

• Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics. Henry Hazlitt.
• The Road to Serfdom. F. A. Hayek.