Bakes Takes Volume 1, Issue 6

by | Sep 3, 2024

ARTICLE | September 03, 2024

September 2024, Volume 1, Issue 6

Bake’s Takes: A KHA Strategic Consulting Recommended Reads by Jonny Baker, Strategic Consulting Partner.

Hot Take: Some people prefer playing video games. Others prefer staring at marked slices of trees and hallucinate vividly for hours on end.

As a leader you need exposure to varying perspectives, insights, and ideas.

This month’s Top 3:

How CEOs Build Confidence in Their Leadership, Hildebrand, Baumgarten, Madhavan

  • This article refreshingly gets it right. It talks about how new CEOs have two years to establish trust and gain confidence. Year 3 is when things take off for better or worse.
  • Six primary focus areas for the new CEO are discussed: Set a deliberate pace, pick your battles strategically, align your team, engage stakeholders at the right time, communicate clearly and succinctly, and better yourself.
  • Favorite line (and shameless plug): “Most CEOs, new or experienced, benefit from having a coach or an adviser-somebody who can regularly hold up the mirror, help them grow, provide new perspectives, and push their thinking.”

Making Yourself Indispensable, Zenger, Folkman, Edinger

  • This article homes in on making your strengths more impactful rather than spending significant effort trying to turn weaknesses into mediocre results. The authors focus on 16 critical strengths and urge us to really be good in 3-5 of them.
  • The reality is many of us believe our individual leadership is most critical, but the research on Teams shows that complementary leaders working together bring significantly more impact. We will feature an article on teams next month that speaks about this.
  • Favorite line: “Raising just one competency to the level of outstanding can up your overall leadership effectiveness ranking from the bottom third to almost the top third.”

Spotting Talent in the 21st Century, Fernandez-Araoz

  • This article talks about the skills to look for when hiring and pathing employees for the betterment of the organization. It also gives practical ways to assess the below five critical items that make up potential.
  • Potential, based on their research, can be broken down into motivation (and whether it is selfless or selfish), curiosity, insight, engagement, and determination.
  • Other leadership abilities worth assessing: intelligence, values, and leadership abilities defined as: strategic orientation, market insight, results orientation, customer impact, collaboration and influence, organizational development, team leadership, and change leadership.

“Pushing your high potentials up a straight ladder toward bigger jobs, budgets, and staffs will continue their growth, but it won’t accelerate it. Diverse, complex, challenging, uncomfortable roles will.”

Why Bake’s Takes: I have been accused by friends, colleagues, and clients of pelting people with articles and book recommendations. Some of my mentees have stacks of books they will never get through (some of my mentors too). As such, I have decided to curate a monthly summary that holds what I deem to be the 3 best articles or reads of the month (when I read them, not published that month). I do love Harvard Business Review and you will see much of it as my work is focused on equipping leaders for the tough tasks ahead of creating vision, alignment, and execution. I have yet to find a better resource for equipping that work well.

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Building a Family Limited Partnership That Lasts: What High-Net-Worth Families and Business Owners Need to Know

Most business owners think about succession planning far too late. A Family Limited Partnership, when established early and managed with discipline, gives founders something rare: the ability to transfer economic value to the next generation gradually, deliberately, and on their own terms — without giving up operational control in the process. It is one of the most effective wealth transfer and succession planning tools available. It is also one of the most scrutinized by the IRS. Before you build one, make sure you understand what it takes to make it last.

Manufacturers: A New Tax Break Could Let You Write Off Your Entire Facility on Day One

Congress just handed manufacturers one of the most significant tax incentives in decades. Under the new One Big Beautiful Bill Act, qualifying businesses can now deduct 100% of the cost of a new production building in the very first year it is placed in service — instead of spreading that deduction over 39 years. For a business investing $5 million, $10 million, or more in a new or expanded facility, that difference could be transformational. But the rules are strict, the election is irrevocable, and the clock is already ticking. Read on to find out if your facility qualifies and what you need to do before you file.

The State Tax Divide: What High-Tax State Residents Need to Know Now

Two decades ago, 21 states had top income tax rates between 5 and 7 percent. Today, only 12 do. Meanwhile, 26 states now have rates below 5 percent or no income tax at all, while six states have climbed to double-digit rates. With more low-tax alternatives than ever before, businesses and high-net-worth individuals in high-tax states need to consider their options now—before policy changes catch them off guard.

What Every Taxpayer Needs to Know About the 2026 Tax Season

The 2026 tax filing season brings several significant changes that could affect your refund timeline and filing approach. Between IRS staffing reductions, new postal service postmark rules, and a transition to electronic payments, taxpayers who wait until April to file or who rely on paper submissions may face unexpected delays and penalties. The good news? With a few proactive steps—filing electronically, mailing early, and setting up direct deposit—you can avoid these pitfalls and ensure a smooth filing experience.

529 Plans Explained: How to Save Thousands on Education While Reducing Estate Taxes

529 plans offer more than just tax-free college savings. From funding K-12 tuition to repaying student loans and even reducing estate taxes, these versatile accounts provide powerful benefits that many families overlook. Learn how to maximize your education savings strategy with step-by-step guidance on setting up, funding, and managing 529 plans for your children or grandchildren.

Beyond the Balance Sheet: Building the Next Generation of Successful Wealth Stewards

The statistics are sobering: 70% of wealthy families lose their wealth by the second generation, and 90% have depleted it by the third. Yet despite these well-documented trends, most affluent families continue to focus primarily on tax optimization and asset protection while neglecting the most critical element of successful wealth transfer: preparing the next generation to be responsible stewards of family assets.