Stephen H Baum Leadership

Wrong question. Rather, are we prepared for wherever we are going?

An all-day  conference of companies owned by private equity doyen Castle Harlan and their Australian partners provided benchmarks for the second question. It was reassuring to see so many weathering 2008 so well and so many seizing opportunities to position for growth after the storm subsides.

For my set of notes from the day, see below the text.

I believe there is still a good chance of another downturn before a later chapter of stability (not counting the effects of inflation). But staying fiscally fit at a lower level of capacity while seizing unique opportunities to grab talent, market share and technology prepares one for more than one scenario.  That’s my view. What’s yours?

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The feckless, amoral Congress ranted about TARP money funding Wall Street bonuses, then stopped fulminating. But where were the elected representatives and the administration’s money-disbursers when they allowed AIG to pay down tens of billions of debt to their friends at Goldman Sachs and the like. This did not reduce toxic assets or increase the flow of funds to businesses and homeowners.

But it does appear that Wall Street likes the certainty of an unlimited issuance of new money to bail out everyone in the financial industry.

That’s my view. What’s yours?

David Leonhardt (NY TImes, today, the Looting of Americas Coffers) has it right. If you dont yet understand how overwhelming greed led bankers and investment bankers to build a house of cards, walk away with bonuses based on performance that would lead to billions of write-offs of their own companies and not care, you must read the article. Alan Greenspan says he was shocked. Bernanke says he didnt see it coming. But this was entirely predictable.

To read the article, visit:

http://www.nytimes.com/2009/03/11/business/economy/11leonhardt.html?_r=1&scp=1&sq=Loot&st=cse

That’s my view. What’s yours?

I have a coaching client who has made a breakthrough in her leadership. The powerpoint exercise tool I am attempting to embed in this post played a role in conversations which led her to shift focus and try new things.

Good leaders know they are on stage at all times, their eye contact and body language inspected as much as their words heard. Extraordinary leaders proactively manage a campaign for people’s hearts and minds, continually refine their communications and have their radar on to see who is adding momentum, who is a drag and who is simply treading water.

And if you wish to take it further, read Words that Work by Frank Luntz, and review the archived tool “Signal Acts” in the back pages of this website.

I will treasure comments from those who put this tool to use. Is it helpful? How can it be improved?

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Betting Against Obama

I recently heard someone at the local YMCA say “I hope Obama fails.” Aghast that someone not too rich and insulated to work out at the Y would hold such an ignorant and selfish view, I began thinking of the reasons he might fail.

One that stands out flows from the management principle: “Change the people or change the people.” If you cannot change the mind and hearts of those who lead the companies we are bailing out, then replace them with minds and hearts that will not be encumbered with past relationships, past obligations, past assumptions about what must or must not be.

Rick Wagoner (GM), Vikram Pandit (Citi), Ken Lewis (Bank of America) and others may be smart, knowledgeable and possibly Chwell-intended. I have never met them. But if they “don’t get it” or “wont get it” and they cannot both protect their companies and support the aims of recovery, then change the people.

And if the same baggage is attached to the administration’s new hires who come from the same environments, they may be smart enough to deal with their peers, but unable to create or countenance out of the box solutions.

Finally, while we are at it, I would hate to be them or their replacements if I reported to multiple government agencies and overseers.

This may not sit well with my friends who are CEOs, but it is my view. What’s yours?