Evolution not REVOLUTION..the Lesson OBAMA needs to learn.

Over the past few days we have witnessed a major, but quiet, revolution and a reaffirmation of the strong foundation of our US Republic. The Obama administration learned that the US was not a nation of "serfs" and peasants who would follow the whims of a pretend leader... it showed that would speak out against any attempts to move the country into a "redistribution of wealth"/ socialistic and communistic state.

Scott Brown has become a celebrity because he said that "my constituents don't want SOCIALIZED medicine, because we already have a similiar system and I will fight to prevent it"

This demonstrated that we are not a DEMOCRACY, but a REPUBLIC and each state has power.
The major impact was not stopping the SOCIALIST movement but just a reminder that it is not easy to REVOLUTIONIZE our country but it will take EVOLUTIONARY change.

Another major result is real, good and predictable jobs. The U.S. MUST RECLAIM ITS MANUFACTURING positon and provide manufacturing jobs.. I liked OBAMA idea he expressed in his campaign... TAX those who export jobs and give the FUNDS to those who create GOOD US JOBS.

I want to congratulate JEFF IMMELT for taking the leadership role in creating new manufacturing and R&D jobs in the United States...now we need to get the rest of the Fortune 500 to do the same. This combined with investing in new venture businesses will help restore the American Dream and provide the security we have enjoyed since WWII.

Keep tuned for new insights in strategic thinking that matters and restores management to THINKING IN THE BOX and NOT JUST DREAMING OUT OF THE BOX...

How ATTRACTIVE IS CHINA from a total strategic view?

Is CHINA an attractive market?

Google is threatening to exit CHINA, this may be only words, but it does raise the issue of how attractive and critical is the Chinese market... take a look at an article we wrote for Chief Executive in 2008. Who's Going the Wrong Way? The article covers all of the costs and risks of doing business in China and compares it with doing business in the United States. Many companies argue they have no choice since China is one of the biggest current and future markets. But the real issue is what you are losing and whether you can really be profitable. I compare United States companies who are going to China with Korean, Japanese, and others who are leaving and focusing on the United States.

Security is one of the major issues.

This is an excerpt from the article: (you can read the entire article by visiting my site: www.strategyleader.com.

Lack of Security
The cost of doing business in China is not just restricted to the ordinary cost of labor, materials and taxes, it must also include the violation of patents, copyrights and other intellectual properties. This is a major issue with the Chinese. China has never signed the International Copyright and Patents agreements, and does not protect copyrights or patents. A 2005 Time article called “The Idea-Stealing Factory” reported that “in a country where government-controlled companies comprise the industrial base, piracy is not derived from commercial callowness, it appears to be official policy.”

The music/entertainment/publishing industries have lost billions because their protected materials are stolen and sold at a fraction of the list price, of which they get nothing. In fact, my own last two books were translated and sold illegally in China. The CIA asserts that China has an elaborate spy system in the U.S. to steal commercial and military technologies. And a quick Goggle scan of articles about industrial espionage yields more than 15 incidences of companies either suing the Chinese for pirating or companies leaving China because of their inability to protect their patents and copyrights.

For example, Cisco Systems filed a suit against Hawaii Technology of China, accusing the company of copying software and infringing patents. And former Lucent Technology scientists Hai-Lin, Kai-Xu and Young-Oing were indicted by a federal grand jury for allegedly conspiring to steal trade secrets from Lucent Technologies.

The Wall Street Journal summarizes the current situation this way: “Though China is working hard to repair its reputation as a place where theft of intellectual property is rampant… the truth is that counterfeiting and piracy remain common.”

What’s more, since foreign companies must train their Chinese managers, professionals and workforce, they are, in essence, developing their own new competition. There have been reports of companies who built factories in China and within a few years the employees left to build a competing factory across the street. In all of the major Chinese growth areas, such as wind power, electrical systems, transportation and water purification, new Chinese companies are being formed not only to serve the Chinese markets, but to sell offshore, especially in developing nations. In fact, in March 2008 China reportedly announced that it was creating a new company to design, produce and sell jetliners big enough to carry more than 150 passengers, which could eventually pose a threat to Boeing and Airbus.

Security issues extend beyond just the loss of intellectual properties. The travel of senior management and professionals as they visit and interact with their employees in China also presents huge security issues and requires an expensive infrastructure.

Bill Rothschild author of THE SECRET TO GE's SUCCESS, now in paperback, KINDLE and six languages.

CRISIS LEADERSHIP...WHAT IS NEEDED..BUT DO WE HAVE IT NOW?

Risktakers, Caretakers, Surgeons and Undertakers
Which type of STRATEGIC LEADER do we need in this crisis situation!

This is an article written two years ago which clearly shows the type of leaders we need to lead TODAY

Crisis Leadership

Whether we like it or not, the United States in a crisis… and it is just not a financial crisis.This is good and bad news.Obviously, the bad news is obvious… the financial markets are in turmoil. Companies and individuals are overly leveraged, companies can’t get credit, individuals are max-ed out on their credit cards and many are losing their homes. But there is good news….the United States is a CRISIS society and only takes constructive, difficult actions when it is in crisis.

Let me explain

Why the crisis is more than what is happening on Wall Street and in housing?

How we have responded constructively to past crises and hopeful can respond to this one.
What type of strategic leaders we need and some of the actions required?

More than Wall Street and Housing

With the advent of television and cable there have been more coverage of the financial market and so the rise or fall of stock prices has been be the surrogate for the US economy. When the markets are going up, as they have been over the past five years, everyone thinks the economy is good and you should continue to spend.

When markets decline, as they have been in the past few months, the "gloom and doomers" appear and everyone begins to worry. But in recent months, the housing bubble has deflated, sub-prime mortgages have caused most the key financial firms to write off billions, take enormous losses, get funded by “foreign governments, billionaires”merge, change their legal status and even go out of business.

Commercial and private foreclosures and deflates have increased and people are often walking away and are unable to pay.So now there is panic and all of the politicians want to save us by “quick fixes”.But it is just not these problems that are putting us in a crisis situation.Our infrastructure has been “harvested” or milked and are not able to sustain their simple needs of people to commute to work, fly and even heat and light their homes. There is grid lock in major cities on its highways, airports are reporting more “near misses”, when it rains the electricity goes out, the railroads are almost non-existent and not a major factor in providing transportation or shipping. We could enumerate more problems in health care, education, water and flood control. In short, we have a “third world infrastructure”.But it is worse, we have become a debtor nation. Our balance of trade, weak dollar has enabled China, Dubai, Saudi Arabia to make major acquisitions of United States company and technologies. We have exported our manufacturing jobs and have become a service economy. Individuals are max-ed out their credit and can hardly afford to live. We have also decreased our security and ability to respond if attacked.Students are graduating from our colleges heavily in debt and unable to find jobs that can allow them to pay their loans. The quality and rigidity of the educational system has declined. Some students can’t write, others have no idea of what is happening in the world. Colleges often have no classes on Friday and the students take a minimum work load.More examples could be furnished but it is fair to say that there is a crisis is all phases of the United States economy and it is not just one problem, but the combination of these problems that put us in crisis.TOO MANY RISKTAKER/CARETAKES AND NOT ENOUGH SURGEONS.

Risktaking and Caretaking Presidents

Since the end of the Second World War, the United States presidents have been either risktaker or caretakers… none, have been surgeons, and though the country has been harvested and there have not been any undertakers…yet.
Risktaker Caretaker Surgeon UndertakerRoosevelt

Truman Eisenhower

Kennedy--------------------

Nixon Carter

Reagan

George H.W. Bush

ClintonGeorge W. Bush
Let’s take a look at the situations that each of these president’s faced and their style of leadership.

Roosevelt--- inherited a country in crisis… the depression required taking major risks to jump start the economy. His first act was to close all of the banks… move the country to a more socialistic than capitalistic situation. He took enormous risks in helping England survive and some even believe the was willing to let the Japanese bomb Pearl Harbor to get the country into the war.

Truman… the risktaker of all time…he bet on dropping the bomb…even though he had very little insight in how it would work out…

Eisenhower was the caretaker of all time… he just let the world happen… no waves..

Kennedy…his tenure was not long enough to really classify… he was a risktaker when he tried to invade Cuba, but lacked the courage to see if it would work… he took a major risk with Russia and they backed down…so he was more of a risktaker than a caretaker.

Nixon…was a risktaker, but his personality negated what he was able to do

Carter…was a true caretaker and a micro manager…

Reagan was a risktaker.. and was able to create an economic evolution and the creation of a CULT.

Father George BUSH was a caretaker… really didn't’t do much. His invasion and quick retreat of Iraq demonstrated this.

Clinton the typical caretaker… was willing to change to fit the popular reaction.

Bush W.. was a risktaker…but didn't’t really understand the risk he was taking and surrounded himself with individuals that supported a “hawkish, foreign policy.

Crisis Leaders… but the United States has had other major crises in the past and has had a few leaders able to rise to the occasion. Let’s review a few.

Civil War was our greatest crisis. When Lincoln took office, South Carolina split from the union and the Confederacy was formed. The bloodiest, “brother against brother”, family against family war insured and Lincoln had to take actions that didn't’t even have the support of those in the Union. His great talent was to be able to work with both friends and advocacies and keep the country afloat.. a remarkable accomplishment, which should be imitated by leaders today.

Great Depression… In the 1920’s the United States experienced many of the same blessings as it has in the 1980- 1990 period. There was affluence. People lived well and most of them lived over their heads and were speculators. Towards the end of the period there were signs that the “the good life” was in jeopardy…but the “if it ism’t broke…don’t fix it” mentality ruled and even though Hoover proposed programs they were rejected. It took the collapse of Wall Street to force changes and it was very painful. Roosevelt seized control and the government took over. NRA, WPA and other alphabet programs were introduced and people just tried to survive.

World War II--- again prior to the “bombing of Pearl Harbor” the UNITED STATES wanted to pretend that the aggression of Hitler and Japan were not their problem, but the bombing again changed everything and the country again gave away its individual rights for the national interest. There was rationing, blackouts and a draft…

Sputnik was another major event that changed the United States. The ability of the Russians to put a man in space and our inability to do so, enabled Kennedy to get people to honor his famous words: ‘ask not what the country can do for you, but what you can do for the country”… the space program has significantly contributed to our stand of living and given us many of the products that we now enjoy, like cellular, micro-electronics, new materials etc.

The September 11th attack is another example…but this one is still unfolding so it is too early to see if has really changed us.

The message is that when the United States has been forced to make major changes and to focus on what is good for the nation and not their own selfish interests. The country has been ready, able and willing to make these changes and we have had the resources and leadership to pull it off.But in each and every case, the country has refused to accept the reality of change before it happened and then has been forced to move rapidly.

Fortunately it has worked.

EVERYONE WANTS CHANGE.We are now in a prolonged primary period in which we have had to listen to hopeful “presidents” tell us that we need to change. Some say “Washington is broken”, others say that we need to Spend MORE…others say we need to spend less…but none of the messages are really significantly different than we have been.

We have now have a “house of lords” called the Senate, consisting of long tenure, complacent individuals, many of whom have been in office for over 20 years. These individuals are more interested giving “pork” to their constituents, so that they can stay in office, than really making major changes and they have no term limits.

The House of Representatives are continually running for office and they appear more interested in “getting their unfair” piece of the government funds to keep their constituents happy and willing to provide them with the funds to get re-elected. The nation is totally divided. There are racial, ethnic, economic, social advocacy groups that all want their way and the lobbyists, populated by ex-government officials and former elected officials to get represent vested interests.In short, we have constructed a government that is only viable if the country is infinitely wealthy and has not really deficiencies. It is like the government of the Roman, Greek and other empires that all declined and fell because they lived in a “glass palace”.

SO WHAT?These are the two words have applied in all of my professional career. Is there a solution?I think there is a solution but it will be painful and must be executed now.The first solution is to change the type of leaders we have now. I think that we have a government of too many “caretakers”, who are more concerned with the status quo and their own personal needs and wants. Note: the word…too many…

I am not saying that we don’t have some of the right type of leaders, but if we do they are a small minority and not the majority.Right Leaders for the Right TIME and SITUATION.In my 1993 book ,Risktaker. Caretaker, Surgeon, Undertaker- the four faces of strategic leadership, I classify leaders into four types and describe their characteristics. This is a summary of each of the leadership characteristics and its relationship to the life cycle of the organization.

Risktaker's are most appropriate for startup situations. These individuals are missionaries, intuitive, dynamic and excellent communicators. They have a mission and are willing to bet their lives on making them happen. They are revolutionary.

Caretakers are more cautious, managerial and tied to evolutionary rather than revolutionary changes.

Surgeons are required when an organization is in trouble and needs restructuring. These leaders are willing to challenge the status quo and folklore and hold NOTHING SACRED…everything and everyone is challenged and subject to being divested or liquidated.

Undertakers are those able to take an organization and either wind it down or divest or merge it with another more viable organization.

The names are not critical, but what is critical is that there are NO LEADERS FOR ALL TIMES and that if you put the wrong leader in the wrong situation they will fail.WANTED—Surgeon Leaders.The United States now need leaders in the Executive and Legislative branches that are willing to take actions that will set priorities and allocate the resources consistent with the priorities, they are

SELECTIVE and not “all things to all people”. This means that they are willing TO CUT programs, Be POLITICALLY INCORRECT and recognize that they will antagonize some of the their constituents and even other nations.

“NOTHING and NO ONE is SACRED”- The country leaders, including the President, his administration and Congress must be will to step back and evaluate all of the country needs and requirements and not make anything or anyone sacred.

Set Priorities and Allocate Resources- Using a clear set of viable criteria the leaders must do an

OBJECTIVE evaluation and set priorities and then be willing to communicate what needs to be done and what can’t be done… this means being POLITICALLY INCORRECT is needed.

DO what they SAY…this is the essence of strategic leadership. Strategy is what you do and not what you say.

Unfortunately, this will take a major change in the “political mind set”..where it is common to say one thing and do something else.

LINE ITEM VETO- The president must be able to cut out the pork and not permit the valuable and needed programs to be surrounded by politically motivated, non-productive waste full pork.

BALANCED BUDGET. Willingness to live in our means and not just continue to add to the debt… this means that there must be a CONSTITUTIONAL BALANCED BUDGET and no exceptions. If programs are increased in one area, others must be decreased or more revenues must be generated.

TERM LIMITS FOR EVERYONE- Time limits on all members of government. Roosevelt made it clear that there must be time limits on the Presidency and so we have a two term president. But the Senate have become the House of Lords and a long tenure group of “too comfortable” and too Powerful individuals. If it make sense for two terms for the PRESIDENT, why doesn't’t make sense for the Senate. The House members terms should be extended to four years and they two must only be able to serve for two terms.

STOP FINANCING OUR ENEMIES. Stop all FOREIGN aid and examine where it should go. Don’t give money to our enemies or to those who are wealthier than we are. We can’t buy friendship and these funds should be used to solve real problems and be time limited. No annuities that go on and on and are actually used to undermine their purpose.

NO MORE POLICEMAN AND MISSIONARY- Moving from the policeman and “democratic” missionaries to willing to allow other countries to manage their own countries and select the best form of government for them and not what may work of us. This also means a reality test on whether democracy is really working here. It is only partially working.

IMPOSSIBLE DREAM??Reading this list of requirements may make you think that I am totally Naive and it is impossible to get these type of changes. After all, the current systems and policies protect the incumbents in government and allow them to get enough “pork” to keep them in office. There are too many and strong lobbyists who have created one of the only growth industries in the United States. There is a great fear of not giving away money to all nations even to our enemy since the country is already unpopular.So, on the surface it is impossible and the current policies and practices will continue

UNTIL THERE IS A REAL CRISIS. The crisis is likely to take the form of major recession, combined with massive unemployment and even some form of the “bread lines of the Great Depression”. In conclusion… the United States must recognize its world role is changing and it must focus on being a little more self centered and not try to be the policeman and democracy missionary of the world. If it doesn't’t it will just become another “historical” empire who self destructed because it lived in a “fairyland” and not in a real, changing and highly competitive world.

TEACHING STUDENTS TO THINK... IT IS NOW A REVOLUTIONARY IDEA. BUT WHY?

A Revolutionary new Idea: "teach students to think"????

I always thought that the purpose of all professional education was to teach students to think critically and creatively. Obviously based on what I read in the Sunday, January 10, 2010 New York Times this is not what has been happening our College and MBA business programs. It appears that we have been training "technicians" who apply the techniques but don't step back and ask "so what?" how can this be used?, what are the positives and negatives.

I was taught by the Jesuits at FORDHAM UNIVERSITY who emphasized the purpose of education was to learn to think for yourself, get and use the intelligence and make critical decisions based on what you learned and not just to follow the routines.

Maybe this is the reason we have so many failed companies and institutions since their leaders never learned to think. This is painfully apparent with the mess in Washington, State Capitals and major companies...

So, lets thank GOD that maybe we will return to the real purpose of education to enable students and graduates to think critically for themselves. I didn't know this was a revolutionary concept that deserved a major article in a once MAJOR, but declining newspaper, the venerable NY TIMES.

Bill Rothschild

Marie Antonitte and LOUIS XVI School of Management

Marie Antoinette and Louis XVI School of Management

It appears that the Wall Street leaders are honor graduates from the Marie Antoinette and Louis XVI School of Management, which focuses on "only taking care of yourself and let the rest of world EAT CAKE".

It is difficult to comprehend that these organizations have no sensitivity to the real world and the reality that it is the "ordinary investor and citizen that has provided them with "free money to make enormous profits". It really doesn't take talent to get FREE money and then make money by loaning it at higher rates.

We NOW need leaders and no greedy individuals who are unaware and ignore the reality of the world. Remember that LOUIS and Marie had their heads removed. So can the current group have their most tried position removed, if not their heads, namely their only pride..status, money and power. They should look at Bernie as an example and historically at France's first couple.

Bill ROTHSCHILD, author of THE SECRET TO GE's SUCCESS and most recent article in CHIEF EXECUTIVE..."GE and It's NAYSAYERS".

Jeff Immelt ADMITS he made a mistake and is changing GE to refocus more on the UNITED STATES.

Jeff Immelt made a strong statement in his 2009 "shareholder letter" which clearly demonstrates that he is in the GE leadership tradition. In my book: THE SECRET TO GE'S SUCCESS and my GEWATCHER blog, I have continually asserted that one of the key reasons that GE is still a strong and vibrant 127 year old company, is that its leaders were willing to admit mistakes and adapt. Jeff continues to adapt, admit mistakes and move on...he calls it "resetting".

This is another example of adapting.

This is what Jeff wrote in his shareholder letter:I have also learned something about my country. I run a global company, but I am a citizen of the U.S. I believe that a popular, thirty-year notion that the U.S. can evolve from being a technology and manufacturing leader to a service leader is just wrong. In the end, this philosophy transformed the financial services industry from one that supported commerce to a complex trading market that operated outside the economy. Real engineering was traded for financial engineering. In the end, our businesses, our government, and many local leaders lost sight of what makes a nation great: a passion for innovation.To this end, we need an educational system that inspires hard work, discipline, and creative thinking. The ability to innovate must be valued again. We must discover new technologies and develop a productive manufacturing base. Our trade deficit is a sign of real weakness and we must reduce our debt to the world. GE will always invest to win globally, but this should include a preeminent position in a strong U.S."

There is no question that some of most talented smartest people became enamored with the "get rich/quickly" opportunities in financial services and haven't used their talents to create new products and services. Hopefully the "Wall Street meltdown" will change this and more students will go to engineering and scientific universities and not business schools. I agree with Jeff that we need to reward real innovation and creativity and not just "creative book keeping".

Bill Rothschild, author of THE SECRET TO GE's SUCCESS and other global best selling books and articles..visit http://www.strategyleader.com/ to learn more.

INSTANT ANALYSIS..EVERYONE IS AN EXPERT..BUT NONE DO THEIR HOMEWORK!

I am not and never want to be an EXPERT...

Today we have created the "instant expert" phenomena. You can watch cable programs for 24 hours and depending on your personal bias ( we all have our preconceived opinions) you can hear what you want to hear or switch channels to get "it right".

I clearly understand why nothing is beginning done to solve our MAJOR problems, because the President...his staff, Congress and the Senate are PERFORMING on cable to show how much they are concerned and are amazed at the problems they either MADE, CONTRIBUTED TO or just AVOIDED THINKING about.

There are many historical sayings we use...WHEN ROME WAS BURNING, LET THEM EAT CAKE and so on, we use, but don't recognize that they pertain to us.

I believe that the UNITED STATES will overcome this MESS, that they helped create, but it will not be easy and we must all pay the price for our OVEREXPUTANCE as Greenspan called it, but did nothing about it.

We need REAL leaders, not candidates running for office, or show men..we need SURGEON LEADERS, and a willingness to recognize this MESS will take time to solve...BUT also Leaders who want and will help MAKE UNITED STATES even stronger..

Bill Rothschild, author of RISKTAKER, CARETAKER, SURGEON,UNDERTAKER...the four faces of strategic leadership...www.strategyleader.com