Saturday, August 30, 2008

Surgeon President and Congress




Since we are in the mist of an election, in which leadership is being highlighted and emphasized, I thought it would be useful to review what I believe are the four types of leaders and when they are most successful.Can't Be All Things To ALL People.
Before I start I need to emphasize that all organizations and governments are Portfolios, that is they are comprised on pieces. Some of the pieces are new, growth, others may be mature and still others may be declining. Further successful organizations can't afford to "be all things to all people" so they must be selective and invest in some of the pieces, discard some and use some as the "cash cows" to fund others. In short, the investment strategic alternatives are GROW, DEFEND, HARVEST or EXIT.
In my book" Risktakers, Caretakers, Surgeons, Undertakers- the four faces of strategic leadership", published by Wiley in 1993, I used the life cycle as a first step in determining which component of the portfolio, fits which type of strategy. For instance, business units, or components that are new, embryonic and rapid growing, like the i-phone, wind generation, hybrid cars, are all in this category and are clearly growth businesses and must be led by a Risk taking, entrepreneur. Businesses like the broadcasting networks, traditional oil and gas, credit cards are clearly in the mature stage and need to have "surgeon leaders". Then there are components that are declining and need the skills of the trained undertaker.In today's world there is a mix of all of these types of situations and it is critical that the leader and the team have the skills, motivations and talents to lead in these very different situations.
This is the ability that has been demonstrated, by my Alma Mater, GE, who has had different type of leaders for different phases of their portfolio. Even though the CEO could be classified in these categories, it is more vital that the leader of the specific business unit be right for the strategic direction of the business unit. For instance, GE has used its traditional businesses, like lighting, motors, turbines to generate funds to finance the growth businesses, like wind, new financial services, medical systems.Unfortunately this talent and selection has not been found in most companies and even governments and this had contributed to the problems we have today.
The US government, still believes it can be ALL THINGS TO ALL PEOPLE and has unlimited resources to do everything. Unfortunately this is the reason that the US is a debtor nation and is so dependent on foreign funds.Both Obama AND McCain saying they will change this situation and focus. But neither have shown the ability and willingness to say what they will DIVEST and HARVEST and not just what they want to grow.
The discussion is on where the revenues will come from. Obama has the ROBIN HOOD strategy, steal from the rich and give to the poor. This is called socialism, but it may be acceptable to the voters. McCain is emphasizing the need to generate more revenues by using the REAGAN strategy of growing the economy and this will yield more money to spend.I have said before and still believe, that the US must accept the reality that can't be the the defender of the world, the land of opportunity- that invites illegal aliens, that is willing to erode and even destroy is ability to make its own products and provide its own services... it continues to want to do everything and make everyone happy. History has proven this is FAILURE. The companies that tried it are no longer around, the major governments who continued to implement these failed programs are either second rate countries, or just foot notes in history books.
We NEED SURGEON LEADERS...The United States needs leaders who are realistic and willing to "give up something" and not just pretend it can be all things to all people... it needs SURGEON leaders in all levels of government and in all branches of government.


Bill Rothschild, author of THE SECRET TO GE's SUCCESS and CEO of ROTHSCHILD STRATEGIES UNLIMITED, LLC

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