“Anybody can wish for riches, and most people do, but only a few know that a definite plan, plus a burning desire for wealth, are the only dependable means of accumulating wealth.”

From: Think and Grow Rich

Napoleon Hill’s book provides the quintessential book on motivation and the individual pursuit of wealth.  One of the most applied recommendations made in this book is the use of the Mastermind Group.  Hill defines it as:

“Coordination of knowledge and effort, in a spirit of harmony, between two or more people, for the attainment of a definite purpose.”

Starting a new business venture is difficult.  Finding a group for advice, counsel and aid is one of the great tools for helping an individual form a company and obtain the support of like-minded people.  Not only can it provide economic and emotional support, it can be a forum for brainstorming and improving ideas, strategies and business tactics.  A chance to learn what others may have gone through.

It is critical to find people who you trust and who will provide harmony and positive energy to the Mastermind.  It is also helpful to find people that fill the gaps in your skills and experience.

A Mastermind meeting once or even twice a week during the formation of a new business can be a catalyst for success as it holds its members accountable for their actions and creates excitement.  Henry Ford was famous for developing a Mastermind team of experts.  His 50 members  helped him develop and sustain the Ford Motor Company.  Mastermind’s are not only used in start-up, but will evolve with you as your company grows.

It is clear that a group can generate both energy and motivation to help you start a company from a single idea.  It is a concept known and applied for 80 years.

A Mastermind is an invaluable tool for any person that wants to improve their professional careers.   If you are not sure of how to start a Mastermind, there are articles and books to help you.  If you are not sure where to find people that would join a Mastermind, just identify individuals that you trust and respect.  One last thing, confidentiality is key.  Masterminds discuss information that needs to remain in the “inner circle”.

People live through many transformational global events, but we usually do not recognize them until they impact us personally or until the pundits and experts commence films and books to chronicle them with such intensity that we can no longer ignore them. Within the past forty years working in the corporate world, there have been five macro events that seriously impacted my career and each of the seven companies in which I worked:

1. Oil and airline finances: The destruction of the founding airline brands of Pan Am and TWA was influenced by the oil cartel, the subsequent rise in USA oil dependency and the inability of our airlines to effectively hedge fuel costs during times of rising labor expenses and fleet obsolescence. I worked for TWA as my first corporate job.
2. Heath care transformation: How “managed care” challenged the sole practitioner model during the 1980′s and 1990′s also upended the control of medicine by hospitals and physician organizations. I worked for Maxicare and Prudential Health Care in these two decades.
3. The dot.com or Internet bubble burst in 2001 but the e-commerce technologies continue to shift business models as both Apple and Amazon demonstrate. I worked for Interior Architects who focused on high tech firms during the start of the 21st century.
4. Housing: The collapse of the housing market and the sub-prime mortgage meltdown that started in 2007 and the subsequent deleveraging that continues today. I worked for Countrywide Financial from 2004 to 2008.
5. Banking: TARP, the loss of confidence in Banks, Wall Street and the subsequent anger against the 1% most wealthy (the Occupy Wall Street movement).  I worked for a regional bank.

Working for seven different companies during these transformational events, I blindly transferred into industries unaware of these macro-economic events and their repercussions to my own career. Some were positive impacts providing an impetus for personal growth and opportunity as I developed two businesses. Some events were negative resulting in mergers and eventual company dissolution.  Only years later can I truly appreciate the nature of these events on my career as they eventually were the catalyst to reassess my devotion to corporations and the restart the Key Pointe Consulting practice.

This article focuses on Housing as it is a macro-economic event that will likely last a decade and influenced every American at some level. I entered the mortgage lending business in 2004 when Countrywide was expanding and leading a refinance boom. My new role was to improve its real estate practices in its central facilities and soon was engaged in managing its dynamic growth. Its motto was to expand home ownership which seemed a noble pursuit. I had no idea that Countrywide would be a central player in the collapse of the housing market due to its drive to dominate the industry; or that my decision to shift into banking would push my career into a new direction.  Macro events would influence my job choices and was the motivator for me becoming an entrepreneur.

While working in the mortgage and banking industry from 2004 to 2012 was a double dose of harsh reality as both housing and the financial firm’s values were eroding. The unrelenting decline in housing valuation hammered Countrywide’s profit margins in very unpredictable and unpleasant ways. As Countrywide Bank, the division I worked for was coupled to the decline of its parent mortgage firm, it was the vast housing devaluation its dependency on the securitization of subprime debt that was the root cause of its massive mortgage write-downs and the stock disintegration.

The decline of the housing market simply meant that a large proportion of sub-prime borrowers could not manage their new payments when the mortgage reset from its “teaser” rate. The celebration and positive message of Countrywide’s mission to expand home ownership became a perverse and tragic objective to those people who expected the value of their homes to continue to rise.

Few could predict that the housing collapse would last so many years or that the nation’s largest lender, Countrywide, would become the pariah of mortgage lending. In 2008 as Countrywide was announcing its acquisition by Bank of America, I found a better opportunity at a small regional bank and moved on. I had no idea that all banks were going to be challenged as the emerging recession would degrade all bank loan portfolios.

As the bank’s California loan portfolio soured and foreclosures and write downs accelerated, the financial soundness my new employer was in jeopardy. The anger about bank bail-outs and Wall Street excesses was less important to shareholders and employees who saw their dividends and bank stock value obliterated as the stock fell to under $1/share. Having borrowed TARP monies, the bank had limited its options for a turnaround. A white knight acquisition of the bank saved it, but like most mergers it placed most of the key managers in the cross-hairs for replacement.  In less than two years the bank is being acquired by a larger bank.

While my sampling of working for failed corporations is rather small, the statistics on mergers, acquisitions, corporate dispositions and bankruptcies indicate that my experience is common. Corporate employment stability is an illusion. The independent contractor approach for employment is a requirement during a corporate career.

In any case my baby boomer mentality based on watching my parents work loyally for one firm is an anachronism. The need to find a set of transferable job skills and a business network of friends and colleagues is even more critical to a successful career in today’s business world. The best option may be to discover a business idea and start a new business.  While it may be risky, at least you maintain more control on the values and services you offer.

People who do find wealth, support and recognition within the corporate world seem relatively small and a select group as most of them have not earned their gold ring through just hard work but often because of special relationships. To enter that special executive group at the top of any organization which I call the C-suite demands a good understanding of human nature and political savvy. In many organizations I found that relationships between the Board and key executives were often linked to family relationships. The emphasis on independent boards has reduced that incestuous situation but not entirely. Like Darwin’s precept on survival of the fittest, the C-suite often becomes a very insecure and mercurial place with alliances, infighting and negotiations especially when things are not working. Hubris at the executive level is something to carefully avoid as it can destroy a career quickly and without warning.

Having a current resume, a professional set of skills and a strong network of friends and associates is the one strategy for protection from a corporate lay-off. The optimal strategy, however, is to develop your own business and use your ambition and drive to make it a success.