*Volume discounts available

Article written by Bill Rothschild..that highlights some of the key points in the book

Where are the leaders?

The top spots at America's corporations are being vacated in droves as leaders are fired or resign under pressure.

A former GE corporate strategist says what's needed is the right leader for the right situation at the right time.

When things are going well and organizations are setting new records,

there seems to be an abundance of leaders. Newspapers, TV and business magazines glorify these individuals -- the 1990s being an excellent example of this phenomenon. Companies were setting records for revenues,earnings and shareholder value; "20 somethings" were creating dot-coin wonders and becoming overnight millionaires, even billionaires. We were continually exposed to news of these great innovators -- leaders,said to be changing the way business worked.

But when things turn sour -- the economy dips, stock values are slashed and uncertainty becomes the rule --there seems to be a scarcity, even a total void of leaders. This is where we appear to be today. The mighty perceived or manufactured leaders and their organizations have fallen.

This is not reserved to one type of organization, since several major institutions --government, business, non-profits and even the once-revered Roman Catholic Church --currently appear to be lacking in leadership. And, although the top spot is where the buck stops,the leadership component is necessary in each division or business unit and in each department.

The real problem is that we have been taught to believe that there is one type of leader for all situations. Yet, studying leaders in many settings shows that there are a variety of leadership types, and that it is critical to have the right leader for the right situation. Former New York City Mayor Rudolph (Rudy) Giuliani is a perfect example of having the right leader for the right time. George W. Bush may also qualify for this distinction.

Leadership: What Does It Really Mean?

The dictionary defines a leader in two ways: first, as "one who goes ahead in advance" and second, as "one who acts as a guiding force, commander, etc." If a leader goes ahead in advance, then it seems valid to say that there is only one type of leader -- those individuals who are out in front. However, if a leader is one who guides, directs, commands, it doesn't mean that they are all moving ahead. Some may be retreating, so that they can re-group and attack later; others may be defending their turf, and not permitting the enemy to take ground. Still others may recognize the inevitable and surrender; while some others are aggressively growing.

In short, there is simply not one type of leader. This fits the theme of John F. Kennedy's book, Profiles In Courage, which describes different types of leaders, some of whom may not be considered leaders at all based on the image of aggressive, growth-oriented leaders that comes from heroes of fiction, television and movies. Little is written about those who are dull, and only defend. What is written about those who retreat or surrender, is normally presented negatively.

Core Competencies for True Leaders

Clearly, there are different types of leaders. Before detailing the types,it's vital to emphasize that all leaders, even if they are different types, require certain fundamental skills and characteristics:
Credibility. Given the recent events brought to light, it's obvious that being truthful and refusing to cover up is the first requirement. This seems to have been omitted from the selection requirements for many in today's organizations. It's alarming that so few have failed to learn from the Richard Nixon fiasco.Nixon had many attributes of being a leader, but he lacked credibility.

* Dedication and Passion. Leaders must be believers in what they do and must be willing to commit as much time and personal sacrifice as is needed to achieve their objectives. Leaders can't be "contract workers"who are willing only to contract for the job, and not be fervent believers in the cause. Unfortunately, many of today's CEOs seem interested in increasing their own personal wealth, with their commitment extending only as long as it is personally beneficial.

* Willing and Able to Make Strategic Moves. Leaders recognize that they must be selective and not try to be all things to all people. They are willing and able to: take the time to personally assess their business, select those areas in which they can be successful and discard those without the potential for being winners.

* Competitive and Realistic Drive. Contrary to popular belief, leaders are not visionaries and dreamers, but rather, they are realists, able to convert their priorities into do-able action plans that permit them to create the right level of expectation.

* Ability to Get the Right Talent. Leaders must be able to identify, attract, motivate and retain the right talent that fits the unique requirements of their business, markets and strategies. They recognize that the best are not always those with the best resumes, because what is required in one type of situation is different from another.

* Know When to Get Out of the Way. Timing can make a difference, and leaders recognize that they are not indispensable and can't remain forever. Often, the individual was the right person to build an organization, but very wrong when it slowed or declined. Unfortunately, leaders are human. If they are winning and have significant power and prestige, it is often hard to step aside and let someone else lead. The true leader,like a good parent, trains his or her successors and exits in a timely way. Of course, timing is not a science; itis based on intuition and judgment.

The Right Leader: Four Types

Three factors influence which type of leader is the best suited in a specific situation:

1) dynamics of change,

2) degree of uncertainty and position in the company (and/or industry) and 3) life cycle of the business/industry.

In a rapidly changing, uncertain environment, the leader must be willing to take risks and make decisions rapidly, without the security of extensive data or information. This is normally when the market or industry is in its embryonic and rapid growth stage, or when major changes in the customer, competitive or technological environment are occurring.

In more stable, moderately changing situations -- where there is ample data about the past --the leader must take the time to learn about the past, fully understand the current environment and project into the future.

Then, as markets decline, the numbers of options drop as well, and it may be necessary to prune assets,sell businesses and/or redefine markets, all of which require still another type of leader.

Ultimately, both markets and businesses will reach a point when a leader must make the tough choices of closing down or integrating resources with others. This situation requires a fourth type of leader.

In a 1993 book, this author focuses on the concept of different leaders for different situations and times.

Four categories are depicted: Risktaker, Caretaker, Surgeon and Undertaker.

The names were selected not only because they reflect different leadership types, but also because they were easy to remember. It's important to note, the titles are not the key, but rather the recognition of the different skills and abilities required by each type.

Risktaker

Risktakers are entrepreneurs and revolutionaries willing to bet their career on their cause. They are able to make decisions with little or no hard data and then give their whole being to make them happen.

If successful, they initiate new markets and even industries. If they fail, they are probably considered "crazies." These leaders are true missionaries, highly intuitive, adaptive, flexible and dynamic.

Risktakers are needed when things are changing and rapid decisions are required. Examples include Stephen Jobs,

first to create the personal computer market (for Apple Computer Corp.) and Bill Gates and his associates,who provided an innovative personal computer operating system (at Microsoft Corp.). in the public sector,

Harry Truman was one of the greatest Risktakers, risking almost the entire world with his decision to use the atomic bomb to end World War II.

Evolutionary/Caretaker

The Caretaker is a more traditional business leader who cares for and nurtures an organization during the longest period of its life. However, this type of leader needs to continue to grow, but in a more predictable, evolutionary way. These leaders need to be able to manage, install systems, select and grow people, adapt to change and meet expectations in a consistent manner. This leader must balance major stakeholders' expectations and avoid major surprises.

Evolutionary/Caretakers tend to be analytical and cautious, and many have financial backgrounds.

Reginald Jones, General Electric Co.'s chairman and CEO from 1972-'81, was this type of leader. Jones was able to systematically grow the company profitably and provide a financially strong company to Jack Welch when he took over. Duane Ackerman of Bell South Corp., Louis Gerstner of International

Business Machines Corp. and Michael Critelli of Pitney Bowes Inc. are recent examples of leaders who have focused on evolutionary change, rather than doing major surgery or undertaking high risk ventures.

Surgeon

Surgeons are needed when a business is mature and its portfolio is unbalanced with a mixture of attractive /unattractive components. This type of leader needs the skills of a medical surgeon -- the ability to remove the malignant organs, without harming healthy ones or killing the patient.

He or she requires a good understanding of their business and a clear set of criteria to determine which omponents will stay, be grown or removed. The organizational Surgeon also needs the ability to exit businesses in a way that will provide capital to reinvest in more attractive assets. The Surgeon is common in today's business world. GE's former CEO,

Jack Welch, fits well in this category, because he divested television, audio products, small appliances and dozens of other business entities at the right time, generating huge profits.

Welch demonstrated the need of this type of leader to be patient and move when the opportunity presents itself, while also assigning other types of leaders to key components of the company. Gary Wendt, a Risktaker,led GE Capital Corp., while Jeffrey Immelt, an Evolutionary/Caretaker (grower), led GE's Medical Systems' business.

Undertaker

Unfortunately, for some organizations, the surgery fails or the new ventures don't yield the promised results.It then needs another type of leader who can objectively assess the organization's viability. Many executives,

having concluded that their companies were not viable in the long term, were willing to sacrifice the corporate entity and save its healthy components by merging with stronger players. These are Undertaker leaders.

In 1985, Thornton Bradshaw decided that RCA Victor Co. would be better off if it merged with a stronger company, and so he engineered the merger of RCA with GE. Today, RCA is only a memory and a brand on some consumer electronic products. Michael Jordan, the CEO of Westing-house Electric Co.,decided to divest the electrical and industrial businesses and concentrate on the broadcasting business.

Recognizing the need to merge with a stronger player in this sector, Jordan merged with CBS Worldwide Inc.,taking the CBS name. Within a few years, CBS subsequently merged with Viacom Inc.

And, while Westinghouse is gone, many of its components have continued to survive.Companies like Perkin Elmer Inc., Compaq Computer Corp. and Scott Paper Co. have all disappeared because their

Undertaker leaders -- deciding they were not viable on their own -- merged with others, losing their corporate identity,while the healthy pieces live on.

Are They the Right Leaders?

September 11 impacted the world -- tragically and otherwise. Months later, the Enron and Andersens candals grabbed the headlines. Suddenly, all companies are being scrutinized, and most, if not all, major organizations are in a state of change. There is serious question whether their current strategies,priorities and leaders are appropriate for the future. These changing organizations may need different types of leaders. Some current examples:

Carly Fiorina, CEO of Hewlett-Packard Co., has exhibited all of the attributes of a Risktaker,moving quickly and aggressively to change the H-P strategy and culture. Her move to acquire Compaq met with significant resistance, but she won this round and now needs to prove that her type of leadership is the right one for the combined H-P/Compaq. Samuel Palmisano, CEO of IBM, who replaced the successful Louis Gerstner, is also confrontedw ith the need to change. His first response is to reduce jobs, but this will not be enough.

Will IBM need an aggressive Risktaker, a skilled Surgeon, or will it be able to win with the continuation of a Caretaker? Lawrence Bossidy successfully performed as an Undertaker when he merged Allied-Signal Inc.into Honeywell International Inc. GE attempted, but failed to take over Honeywell when the European Commission refused to permit the merger. Today, Bossidy must decide what type of leader should succeed him at Honeywell. Does the company need an aggressive Risktaker, or should it seek another merger partner? AT&T Corp., Xerox Corp. and Lucent Technologies are each facing a leadership crisis. It is clear, in each of these cases, that aggressive growth, diversification and selective surgery haven't worked. Now,perhaps only an Undertaker-type leader can save those components that are healthy and should be saved.

Leaders are born, not just trained. Leaders are born with the inherent abilities of credibility, passion and dedication; they are adept at making tough decisions, motivating people and knowing when to leave. Leadership is a combination of skill, intuition and judgments, not a science that can be laid out and developed. This doesn't mean that leadership skills cannot be enhanced to make the born leader even more effective. But the training and development leaders receive must fit their unique needs and characteristics.

The skills required to be a successful Risktaker are very different from those required to be a Surgeon,and the training must focus on these differences and not on generic leadership characteristics. So, while there are voids at the top, the real issue is not whether there are leaders today, but whether the right leaders are in the right places. To ensure that this is the case, each organization needs to continually assess the leadership fit and be prepared to place different types of leaders, as required. This doesn't mean just at the top of the organization -- it must be done for each major component or business unit. Boards of directors must demand that companies have a viable, executable leadership portfolio consisting of all types, to be assigned where and when they are needed. And, they must make certain that those they select have the fundamental core competencies and are given sufficient time to win.

THE 4 TYPES OF LEADERS    Risktaker      Caretaker     Surgeon                   Undertaker    
                                              Missionary     Cautious      Not tied to status quo    Decisive  
                                               Intuitive          Managerial    Challenge the "folklore"  Compassionate  
                                                Adaptive       Analytical    Portofolio manager        Unselfish  
                                                Dynamic       Experienced   Able to sell at a profit  Objective    
         Company Stage              Embryonic      Rapid Growth  Maturing                  Declining  


CEO DEPARTURES SURGE    
Nos. of CEO departures:    May '02 - 80  April '02 -54  October '01:  80  June '01:- 82  May '01:- 84    

Source: Challenger, Gray & Christmas Inc.  

Some Highlights from the book itself...

There are dozens of leaders described and evaluated.

Part One- The Four Faces of Strategic Leadership

1. Managing by slogan is not leadership- this chapter describes the current practice of follow the current management fads...quality, restructuring etc and failing to think what type of leader is required for the business and its future.
2. Leaders are not all the same This chapter describes both the four type of leaders discussed in the book and how they fit the life cycle, as well as the key characteristics of all leaders, namely:
   • Dedication
   • Passion
   • Credibility
   • Unique talent
   • Ability to institute a winning game plan
   • Flexibility and willingness to relinquish power
   • Ability to build and maintain the right team
   • Steadfastness and courage
   • Alert to proper timing.
3. A Leader for All Seasons- Is This Possible - What determines the RIGHT leader?
1. Business Life cycle
2. Customer types
3. Competitive types
4. Stakeholder needs
5. Dynamics of technology

Part Two - Product Leaders

1. Risktakers: The Product is the Passion- describes the eight key characteristics of this type of leader's game plan. This includes: recognizing a need before the customer, protecting the innovation against pirates, educating the customer about the value of the innovation and several others. The chapter highlights the type of team required and the timing.
2. Caretakers: Evolutionaries Ensuring the Future. Again this describes the eight key characteristics of this type of leader's game plan. This includes: Assess objectively, and invest in, the current product line's assets and liabilitie, creating strong advertising and promotions to spur demand, be prepared to meet customer demands, employ competitive, periodically aggressive pricing and others.
3. Surgeons and Undertakers: Rethinking Priorities and Viability. The game plan for these type of leaders is again different. It includes: analyzing the company's vital signs and making a quick decision, evaluating the reasons for past successes and failures, assessing the competitive arena, building customer, employee, and supplier confidence, and others.

Part Three- The Problem Solving Leaders.

7. Solving the Insoluable: Leading the Possible Dream. This deals with leaders who have a vision and mission to do what many think is impossible. Key elements of the strategies include: probing to understand the real problem, obtaining long-term commitment and sponsorship, create and then meet realistic expectations, avoid the "not invented here" mentality and others.

8. Solving the Client's Problems: The Consultative Leader This type of leader works closely with his or her clients to solve their problems. The problems are not as complex as those in the previous category. Eleven elements are discussed: select clients who recognize they have a problem and wants to solve it, select clients who want a long-term relationship, use relationship pricing, listen and others.

Part Four- The Marketing Leaders

9. Risktaker Sellers- this chapter focuses on leaders who gain an advantage by creating new and different ways of selling their products or services. Many illustrations are provided, including those who concentrated on how to sell, others who focused on where they selling, a third categoy on when they sold and others who used a combination of unique services to differentiate their offering.

10. Caretaker Marketers- " caretaker marketers mission is to build on the creativity of the risktakers and install systems that will enable the organization to continue to have a competitive marketing advantage.

Part Five- System and production leaders.

11. System/ Netwrork Risktakers are leaders who build a unique and high quality system in advance of demand and invest to allow it to remain a leader.

12. Production Leaders: The Difference is How it is made. These are leaders are able to create a competitive advantage by creating unique and innovative ways of making a product or providing a service.

Part Six Leadership Past and Future

13. Leadership lessons from the 1980s- This chapter highlights some of the positives and negatives of the 1980s and what the reader can learn from them Example include: "don't confuse asset stripping with leadership, don't be greed and self serving, plan for leadership succession and others

14.Problems and Trends of the 1990s: Challenges and Opportunities for Strategic Leadership This chapter identifies several areas where leaders are required and specifies the type of leader needed to do the job.

15. Leaders for All Seasons. This chapter points out and illustrates how General Electric has had different types of leaders during its 126 year history and how and why they were the right leaders for the right time.