There is a great deal of talk about why the U.S. stimulus has not worked. Obama’s mistake was being too cautious in fearful times, writes columnist Martin Wolf in yesterday’s Financial Times. Wolf, who wanted a much bigger stimulus, glosses over an observation he made on February 4, 2009: “Instead of an overwhelming fiscal stimulus, what is emerging is too small, too wasteful and too ill-focused.”

It is the element of waste and spending without focus that especially annoyed the American public, long before there was any reason to think that the stimulus would not work. For Congress to have a blank check in the amount of almost $800 billion was leadership naivety at best, and malpractice at worst. In reality, the wasteful and thoughtless spending had to dilute the impact of the billions poured into the economy. Continue reading…

Harnessing business opportunities requires creative thinking. Apple, Google and others are successful in today’s economic environment because they are developing products and solutions that people want. Medical researchers are making advances because they are doing what has never done before. 

Creative ideas do not emerge in organizations where only a few senior people have all the ideas and everyone else just executes them. Honing diverse opinions into a coherent, executable strategy takes a supportive culture, employees with a specific set of skills, and leaders who inspire the best from people. Continue reading…

A post on BNET by Jo Owens, July 26 lays out the 7 qualities you don’t learn from the leadership gurus. At and near the top of the list are sleeping on planes, working in vehicles, dieting, and working the politics. Yet there are other things that are far more important to success. Let me propose an alternative list, starting with being creative.

1.  Teach yourself to be creative. Perhaps creativity is in a person’s DNA, but I truly believe this is something that is learned and nurtured.  Ask questions: What if we did it this way? Have we gotten to the root cause of a problem? Is our product working? What would happen if we took a different approach or direction? Seek out news and solutions from other industries and markets. Creativity is important in all industries, even financial services. I’m looking for the next wave of new financial products and structural changes that will generate better returns in a “new” economy with much tigher regulations.

2.  Learn how to curate the best ideas, remix and make it your own.  Continue reading…

CNN host Jack Cafferty asked his audience, “Do you feel as patriotic as you used to.” The reactions reflect the frustrations of a nation that loves America and demands effective leadership. In a crisis environment, the rough edges of our system gnaw at the public’s sensibilities. At the heart of this unrest is a simple fact: we want strong leaders; instead, we have politicians.

Responses to Cafferty’s question are telling, among them: “We love the country but are frustrated by Washington’s politicians. The place is a basket case and I’m furious.” “I feel America is bankrupt, absent in ethics and care for its citizens’ well-being.” “I feel we are totally bankrupt of effective leadership at the levels of our government where it is most needed.”  Continue reading…

Robert W. Selander, CEO of MasterCard will retire from his job on July 1. By all accounts, MasterCard has done very well under Mr. Selander’s tutelage. He transformed and grew the company. In 2006, MasterCard sold for $39 in its initial public offering. It closed at $218 on June 25.

Don’t let the veneer distract you from the substance, Selander tells New York Times reporter Adam Bryant in an interview published on June 25. “It is too easy to let the person with great presentation or language skills buffalo you into thinking that they are better or more knowledgeable than someone else who might not necessarily have that particular set of skills.”

This CEO looks for leadership and results in any senior hire. He probes for presence, which he defines as “knowing what to communicate, and how.” ”I think you can be a good communicator and you still may not have presence,” Selander says.

See full article for insights, advice, and interview questions.

Reinventing Leadership and Management is a paper in the Ivey Journal that caught my eye. Author Mitch McCrimmon argues that “leadership hogs the lion’s share of the responsibility and credit for driving organizational success,” leaving management with little to do. [Really?]

McCrimmon says that leadership is different from management: leadership promotes new directions – management executes existing directions. He then asserts that leadership is a function which shifts from one person to another. Everyone engages in some management and leadership, regardless of role. ”Companies need to slim leadership down, management must be given more to do. This calls for a major upgrade, making management a more proactive, positive force in organizations.” 

I see that happening now. In truth, it takes more than a bit of leadership to excel in any job. Continue reading…

The biggest surprise in New Jersey is the Governor’s commitment to honor his campaign commitments to shrink the size of state government, cut spending and taxes, and get the state’s finances back on track. We know that campaigns are only meant to get people elected – in truth, is there such a thing as an honest, authentic politician?

But Governor Christie asserts he is not a politician – his job is to govern, and no one needs to wonder what he thinks – he’ll tell them. If Christie stays the course, he will create a new paradigm of political leadership, accentuating the leader and minimizing the political. So far, he’s standing firm. Perhaps the Governor can transform a state that’s in serious financial trouble.

Take a look at Christie’s response to a liberal reporter in last week’s press conference.

As Roz and others have been hammering home on this blog, there is no substitute for superior leadership. Great leaders articulate meaningful goals and create a culture capable of achieves these goals. With this in mind, let’s examine Ogilvy’s quest to recreate the art of selling.  

In today’s New York Times, Stuart Elliott reports that OgilvyOne Worldwide, the ad agency, has created a contest to find “the world’s greatest salesperson.” The goal of this contest is “recreating the noble art of the ka-ching,” according to Rory Sutherland, a vice chairman. Sounds like a laudable goal and a media-worthy stunt. 

It seems to me that the contest ought to seek a sales message that extols the value of the product, makes the buyer feel good about the purchase, and welcomes repeat business in the future. I just bought a car and the salesperson did all these things well. He displayed the attributes generally considered desirable in a salesperson. I was impressed. I will return. Continue reading…

Managers in the middle are a critical, but unreliable link between business strategy and strong results. They are the “working leaders,” the vital glue that holds the organization together and makes it hum. These managers are capable of driving change at the front line, where it counts. Senior leaders need to engage them and give them the accountability they need to excel. Middle managers are capable of doing more.

A manager in a professional services firm compressed a bureaucratic process by 16 months. He explained his approach this way:

“While it usually takes 18 months to get the necessary reviews and approvals on a large, highly visible project, I knew we had only 8 weeks. I persuaded my colleagues to re-set their priorities because the firm’s reputation was on the line. We met the new schedule and everyone owned the outcome. It was quite remarkable.” Continue reading…

The recession jolted our nation at its very core. Like a tidal wave crashing to shore, it cast a dirty cloud of fear and gloom on the American persona. Ask anybody, “What concerns you most about your career and the state of business today?”  The responses I hear reflect worry, anger and disapproval – with only a glimmer of optimism.

“In this economy, everything is a concern,” said a young professional about to launch his career. Others reply: “I’m concerned about negative attitudes, a lack of consumer credit, and the severe shortage of jobs.”  Continue reading…