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Simon Le November 14, 2013 Smith Financial Internship Second Round Interview

The challenge of avoiding fading into obscurity is a constant struggle every company faces. With this new generation of innovation and creativity however, this challenge to stay competitive and relevant in every industry has become increasingly more challenging. Mr. Stern addresses his article, How to Live Long and Prosper, and offers a strategy for a companys longevity, which align with my opinions on management practice and what I believe I can bring to Smith Financial. The average number of years a company stays within the S&P 500 index today is around fifteen years, an incredible sixty-year difference than what the average was seventyfive years ago. Some of the blame for this decrease in S&P 500 tenure can be attributed to rapidly evolving markets and unstable economic conditions, but much of this decrease is caused by the declining standards of workplace engagement within companies that fall into irrelevance. Employees and management are both equally responsible for standards in the workplace. According the Bureau of Labor Statistics, the median for employee tenure was 4.4 years in 2010. Job-hopping has become a norm in todays society, as more employees are focused on advancement and personal fulfillment than job stability. With more individual focus, many employees do not believe their organization is fit for the future and does not deserve their loyalty and commitment. On the other hand, some management creates a disengaging system in the workplace that discourages employee involvement. Companies that fail too often remain rigid hierarchies that cannot cope with change. Professor Stern suggests employee-owned firms as a remedy to this trend of disengagement. With direct ownership of their success, employees at all levels share a sense of responsibility for the success of the business. Stern admits that this business model isnt for every company, but companies are already adopting the idea, offering stock options with discounts as compensation instead of a traditional salary. Overall, the theme the article is employee accountability, a concept that Stern hits accurately as essential for a companys success. One of my favorite management strategy quotes comes from a Nucor executive who said, We hire five, work them like ten, and pay them like eight. The quote highlights resourcefulness, productivity, and rigor at its finest, as this model certainly showed results for Nucor in the steel industry. Sterns article suggests employee ownership as a solution for employee accountability, but that doesnt mean its the only option for generating accountability in the workplace, as Nucor has demonstrated. Jim Collins also echoes these sentiments in his management book, Good to Great, in which he details how developing a culture of discipline in the workplace is essential to elevate a companys success. Both Collins and Stern address this culture of accountability that must be instilled within management so that every employee feels responsible and challenged to offer something more to the work place. Im a firm believer of these ideals, and hope to carry this attitude to Smith Financial. By understanding it takes rigor and discipline from everyone to succeed as a company, I hope to start practicing these qualities with the internship, constantly striving to learn more and bringing more than just the technical requirements asked of my job description. With this mentality, I hope to both give to the company and take away from the experience more than what is expected. We are all in this together is a quote that Prof. Stern addresses, emphasizing the idea that everyone is accountable for the success or failure of a company. Thank you for the consideration; I hope to bring this mentality to the internship and would strive to give my best towards the success of the company during my time at Smith Financial.

Simon Le November 14, 2013 References Collins, James C. Good to Great: Why Some Companies Make the Leap--and Others Don't. New York, NY: HarperBusiness, 2001. Print. Stern, Stefan. "How to Live Long and Prosper." Financial Times. The Financial Times Limited, 12 Mar. 2012. Web. 14 Nov. 2013. United States of America. United States Department of Labor. Bureau of Labor Statistics. N.p.: n.p., n.d. Web.

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