Strategy Review

This blog's purpose is to create a dialog on major strategic issues, evaluating strategies and providing insight into how to enhance our abilities to think,make decisions and lead strategically. It will focus on companies, governments and organizations of all sizes globally.

Thursday, February 7, 2008

It will take more than good leadership skills to fix the current mess in the United States.

There are a number of "management guru's" who assert that what the United States needs is a strong business leader. This is the message of Mitt Romney. But I think this is being naive and that there are several differences between leading a company or organization and leading the United States.

  • First and most important is the ability to control the budgetting and spending processes. CEO control the budget and have "line item and project by project veto" power. They can control waste and balance the budget. This is NOT true with the president. Though it is obvious that the president needs this power, congress will not give it to them. (Unless there is a crisis that overrides their self interests).
  • Second business leaders can select their management and leadership styles. If they wish they can be autocrats, consultative or consensus managers, they can select the stylethey like the best and fits the situation. There is no one style that fits all situations. This is not true in America's current socio/political climate. The United States is "popularity poll" driven. If a poll shows that something is unpopular with a key constituent group the congress and even president backs down and follows, doesn't lead, the crowd. Most of our current candidates are clearly either consultative or consensus oriented.
  • Third, in most companies there is no such thing as tenure. Everyone and everything is vulnerable and can be removed. However, the United States has adopted the "house of lords' policies and has a SENATE and some Congressional members that are "tenured and stay on until they die". These tenured individuals are responsible for the "polk barrel" items in all of the major legislation, since it is the polk that keeps them popular and allows them to get reelected term after term. This is one of the reasons the US keeps running a increasing huge deficits and why the dollar and US power is declining in the world. The United States needs TERM LIMITS in all phases of government and at all levels. Many states and cities have limits, even the President is limited to two terms, why not the senate and house. I would limit the senate to two terms (12 years is enough) and extend the house to four years, but limit them to two terms (eight years is good enough for the present why not them?)
  • Selectivity is vital to successful companies. The winning companies identify the best businesses and focus on them. They have a "portfolio management approach". They are willing to allocate more resources to their best businesses and starve others or even exit or divest them. In the US, we are all things to all people. Everyone want their "unfair share" and are not willing to accept priorities. Everyhting is sacred and nothing is expendible. The result is the government continues to go into debt, harvest its resources and even willing to sell its assets to the highest bidders.

I am not saying that leadership characteristics may not be in common from the private to the public sector, but the execution strategies and realities are very different.

In my past few blogs, I have stressed the need for the country to recognize it is in a crisis situation and to elect SURGEON leaders both in the executive and legislative branches. But unless the president is given LINE ITEM VETO power, permitted to select the most appropriate leadership style and live within the countries means, the greatest leader will fail. Further we need TERM LIMITS and the ability to get rid of the "polk barrel/ self serving senators and representatives and have new and focused leaders. Selectivity and living within our means is critical for anyone and any organization, it must be done at the governmental level

The only way this will happen in the United States is when THERE IS A MAJOR CRISIS that everyone accepts and moves to solve. The good news, it has happened in the past and I think it can happen again.

Bill Rothschild

Author of " The Secret to GE's Success" ( which describes the key elements required for any organization to succeed) and Risktaker, Caretaker, Surgeon, Undertaker- the four faces of strategic leadership (which specifies how to select the right leader and right team to succeed). Both can be purchased on his website: http://www.strategyleader.com/ or on AMAZON.

Your comments and insights are welcome...

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