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.

Tuesday, January 27, 2009

THE BEST OUT OF BOX EXAMPLE EVER...

The likely to be impeached GOVERNOR of ILLINOIS is the GREATEST EXAMPLE OF BEING OUT OF THE BOX EVER...he is taking on EVERYONE and as he moves from one MEDIA program to another... he is WINNING..

I am not a great believer in the DREAMING, OUT OF BOX approach...but if those who believe in this approach... just watch BLOGO...

Bill ROTHSCHILD, the proponent of REALISTIC STRATEGIC AND IMPLEMENTATION LEADERSHIP... the author of the company that has succeeded and prospered by being in touch with REALITY...the SECRET TO GE's SUCCESS...

Saturday, January 17, 2009

CRISIS LEADERSHIP PART 4-- WHAT MUST BE DONE TO SAVE THE COUNTRY!!!

THIS PART THREE OF A SERIES ON CRISIS LEADERSHIP AND WHAT NEEDS TO BE DONE.


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

    · Risk takers are most appropriate for start up 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 mindset”..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 it 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, 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.

Bill Rothschild, author of THE SECRET TO GE’s SUCCESS and RISKTAKER, CARETAKER, SURGEON, UNDERTAKER- the four faces of strategic leadership.

Friday, January 16, 2009

Crisis LEADERSHIP - Part 2--Too many risktakers..not enough surgeons.


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 Undertaker
Roosevelt
Truman Eisenhower
Kennedy--------------------------------
Nixon Carter
Reagan George H.W. Bush
Clinton
George 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… not in time 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 micromanager…


· 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 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 really understand the risk he was taking and surrounded himself with individuals that supported a “hawkish, foreign policy.


Bill Rothschild, author of five global bestsellers...available on www.strategyleader.com and Amazon.

Wednesday, January 14, 2009

STRATEGIC Crisis Leadership- Part One

This is the first part of a four part series on 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
1. Why the crisis is more than what is happening on Wall Street and in housing.
2. How we have responded constructively to past crises and hopeful can respond to this one.
3. 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.

Bill Rothschild author of two global best sellers:



  • THE SECRET TO GE's SUCCESS






  • RISKTAKER, CARETAKER, SURGEON, UNDERTAKER- the four faces of strategic leadership.



Monday, January 12, 2009

From DREAM, OUT OF THE BOX...GO BIG to REALITY

Over the past decade the "best and brightest???" have told the world that we need to "get out of the box"..think BIG..."have the IMPOSSIBLE DREAM"... and now it is BACK TO COMMON SENSE...and BE SELECTIVE....


I grew up in the GREAT DEPRESSION...THE WAR TO END ALL WARS...THE GOOD TIMES OF POST WORLD WAR II...but have never been a believer that we can SPEND...GO INTO DEBT, USE OTHER People's MONEY and not step back and ask does this make sense.


The headlines are full of DREAMERS who are not rich but poor... Mad off sold a DREAM...and now even the RICH and FAMOUS are suffering... Obama has sold us on A PROMISED LAND.. but even he will find, after January 20 that it all a DREAM...GE's Immelt substituted sound STRATEGIC THINKING with DREAM SESSIONS...


Today... we are all getting a REALITY CHECK... our wealth is not there... and even worse many are not only lost money on paper...but really... Housing values are declining and will reach TRUE value...


But the good news is that we are experiencing the realities that have happened before and like our predecessors...we too will OVER COME...


KEEP THE FAITH... GET BACK TO REALITY and RECOGNIZE THAT EVERYTHING GOES UP, COMES DOWN AND RISES AGAIN...


READ THE GE STORY..."THE SECRET TO GE's SUCCESS" ( SHOULD SAY FAILURES)



Bill Rothschild

Tuesday, January 6, 2009

LEARNING FROM IDIOTS... Session 1--- The US Senate Leadership


Over my 40 plus year career.. I have learned you can learn from successes and failures...but it is even more interesting to learn from current, idiotic mistakes of "so-called LEADERS".

Today, Tuesday, January 6, 2009 was one of those days which can help us learn from "very poor judgment and so-called Leaders".. It can be called the HARRY REID story...
Harry is the US Senator majority leader????

He and his sister House Leader...Nancy Pelosi, have a popularity rating BELOW... that of outgoing President George Bush...which in its self is hard to do.
Today was a day which most of the time Americans would not know even happened... it was the formal acceptance of both the House and Senate members..
but because of the "lack of leadership and sensitivity of Harry Reid.. it was a key event for the entire PRESS corp and the world... it was the day when a African American successor to the President elect..also an African American... tried to take his "ligament seat' and was refused entry...
This event took center stage..even when the American and Global economies and major wars were staged...
LESSON LEARNED... Harry Reid is an excellent example of a "leader?" who took a stand BEFORE he needed too and put himself in a situation where he needed to either retreat or admit a mistake... he didn't do either and is going to make the situation even worse...LESSON... never take a stand before you need to and always be willing to ADMIT a mistake..before it takes on a life of its own. Richard Nixon..NEVER..learned this and he died a broken man... Reid needs to learn it before too is just a foot note in history...

Bill Rothschild...author of five key strategic books...






A New Series... learning from current events... THE HARRY REID FIASCO.

I thought it would be interesting to step back from the depressions and levities of the current world and see what we can learn about STRATEGIC LEADERSHIP...

Today, Tuesday, January 6, 2009, is a great place to start...

On the Washington scene, we witnessed on of the almost comic, though potentially tragic events in the US SENATE... the "so called leader" Harry Reid stopped the seating of the "legally appointed" Junior Senator, an African American, and the replacement to another " African American--President elect Obama, from entering the Senate and assuming his legitimate seat, because of a Technicality and the need to admit a mistake. Lessons Learned... never make a commitment that you can't honor... Reid clearly didn't have any reason to take a stand on the Illinois senate issue before the Governor was removed...The same is true of our new President... he too too a stand before it was needed.

LESSON LEARNED.... Leaders should not take a stand that is not necessary and is possibly going to be changed...

Bill Rothschild, author of five books on STRATEGIC LEADERSHIP... from development to leadership and beyond... visit..www.strategyleader.com

Monday, January 5, 2009

Bernie Madoff..THE MARKETING GENIUS

Everyone must admit that BERNIE MADOFF should receive an award for being the MARKETING GENIUS of the past twenty years. Of course, we all admit he may have been the biggest crook in all of history...but I would like to discuss what Bernie did that could be put to POSITIVE practices.

First Bernie understood segmentation. He targeted primarily the Jewish wealthy and charities. Based on what is published these were his chosen people. I am a strong believe in targeting and focusing on a specific segment. This might be based on gender, affluence or wealth...Bernie targeted both affluence and religion.

Second, he created a "myth" of exclusivity. He didn't accept anyone and even rejected some of his applicants...this made his myth even strong... it was the "exclusive country club" mentality.

Third, he didn't hire a large sales force, but permitted his sales force to belong and then use their Missionary zeal to convert others. Many of his missionaries lost all they had, but believed in Bernie.

Fourth, the created HIGH EXPECTATIONS and MET THEM. His returns were high and consistent.

Overall BERNIE MADOFF was the living image of the RELATIONSHIP, ENTREPRENEURIAL salesman. He did a great job... but unfortunately it was ALL A LIE.

If we ignore Madoff's dishonesty... he exhibited the essence of a RELATIONSHIP Salesman...

Bill Rothschild... author of THE SECRET TO GE's SUCCESS... a company who was never led by the MADOFF types and has delivered what it promised...for over 127 years (and hopefully will continue to do so for the next 100 years)