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Scott Brown&the Massachusetts Election: Leadership Lessons for Obama

Scott Brown’s victory in the Massachusetts elections may have put health care reform in jeopardy, but it holds some important leadership lessons for President Obama.

  1. Despite Barack Obama being a great communicator, he is demonstrating a tremendous lack of communicative leadership intelligence. On the presidential campaign, his speeches inspired hope in large audiences across America, and during the televised debates, his cool unflappable delivery inspired confidence in viewers. However, during the first year of his presidency, his communication has not shown a key characteristic of leaders–adaptability. The cool tone is not cool when bailed-out banks pay out out fat bonuses to their employees from tax payers’ money. Obama needs to channel the public’s outrage in an angry voice.The ease with which he chooses to compromise on campaign promises on grounds on “pragmatism” with the Republicans in Congress–especially when they won’t yield an inch–is again seen by the American public as a weakness in leadership–not being firm when one needs to.
  2. Obama’s first year has made him seem to have lost his path in the wilderness left behind by the previous administration. What does Obama want to do specifically? Healthcare? Economy? Afghanistan? GITMO? Climate Change? This is a case of a leader trying to do too many things and doing only a bit of each. Nancy Koehn writes in The Washington Post that Abraham Lincoln’s problems as he entered the second year of his presidency in 1862, were far greater than Obama’s today. But Lincoln found his backbone in the first 6 months of 1862. The question is whether Obama will find his backbone and focus in 2010.

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Donate to Help Haiti Earthquake Victims

As the work week begins in the USA after the Martin Luther King holiday weekend, I urge you to make a donation to the victims of the earthquake in Haiti. Stories of true leadership emerge everyday from amidst the ruins and the disorder, but the need of the hour is our help.Donate through UNICEF:

Help Victims of Earthquake in Haiti through UNICEF.

Or through the American Red Cross:

Donate through Red Cross to help Earthquake Victims in Haiti.

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President Obama: Speech on intelligence failures

Barack Obama is always fascinating when it comes to leadership intelligences. Yesterday’s speech, was a succinct demonstration of communicative leadership intelligence.Watch:


In an appropriately stern voice, Obama declared, “… our intelligence community failed to connect those dots, which would have placed the suspect on the no-fly list. In other words, this was not a failure to collect intelligence, it was a failure to integrate and understand the intelligence that we already had.” He went on to say, that this situation was “not acceptable.”
In its editorial wisdom, the Washington Post says, “What was missing from yesterday’s assessment, and what Mr. Obama promised would be quickly forthcoming, was a treatment plan.”
In my opinion, Obama’s speech would have failed if it had laid out a “treatment plan.” Given that the purpose of the speech was to use communicative intelligence to solve a problem–”Obama’s administration goofed up in anti-terrorism efforts”–it had to demonstrate candor and the President’ authority to call relevant parts of his administration to task. And that it definitely did.
A spelling out of policy would have led to this becoming an exercise in analysis and full of operational details. A speech of the kind the Washington Post call for, would have at this point achieved far less than the speech Obama gave.
What do you think? Did Obama succeed in being a leader in this speech?

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Understand your customer

On a Saturday some weeks ago, I was driving from Chapel Hill to Durham along a commuter-friendly back road. The car in front of me suddenly turned its hazard lights on and stopped. Luckily I was some distance and I too turned my hazard lights on and stopped. Cars that were behind me were quite far off and also came to a stop behind me. I was about to get out to see if I could help, when a man jumped out of the car in front and went to pick up something from the road. He emerged holding a turtle by its shell and started walking to the ditch with the obvious intention of helping to speed the turtle’s road crossing. As we were all admiring this act of grace and how it had saved the turtle’s life, the turtle seemed to be of a different opinion. It turned its head and tried to snap at the man’s wrist. Startled, the man quickly finished his task of escorting the turtle, and I laughed to see the relief on his face.Your customers are like the turtle. You think they think like you. Unfortunately, they don’t. And this is the biggest marketing myth that is being propagated these days. How often have you heard: “Treat your customers like you would like to be treated.” No. The market is never homogeneous. The best customer service is when you treat your customers as they would like to be treated. I can’t emphasize that. Imagine a hotel manager who arranges feather pillows for you in your room before you check in. Great thought! But what if you are allergic to feathers, or if, like me, you simply hate the thought of some poor bird’s feathers under your head? Seth Godin has an interesting take on this.I’m reminded of a story–perhaps fictitious–from history. When Alexander came to conquer India, he faced the mighty king Puru (“Porus” as the Greeks called him). Puru had a huge army with terrifying elephants. Alexander’s victory on the banks of the river, Jhelum–the Greeks called it Hydaspes–was hard and long-fought (some say the victory was so Pyrrhic that his army rebelled, and Alexander had to go back without conquering the rest of India). The legend goes that when Puru was brought before Alexander, Alexander asked him, “How would you like to be treated?” Puru replied, “Like a king.” Impressed, Alexander let him retain his kingship.Firms had better start asking their customers, “How would you like to be treated?” instead of making stereotypical assumptions. This used to be difficult in the past but today’s technology allows us to do this. But more than the ability to do this perhaps, one needs the courage to do it.Vivekin’s Pay WYVAYCan pricing policy (in a sense) asks–”What would you like to pay?” I hope other consulting firms follow this example.

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Warren Buffet, Goldman Sachs,&Leadership Intelligences

Today’s Wall Street Journal reports that as recently as in March, Warren Buffet wrote to his shareholders expressing disdain for Wall Street firms, “You only learn who has been swimming naked when the tide goes out–and what we are witnessing at some of our large financial institutions is an ugly sight.”And yet, today’s WSJ reports that Buffet will invest $5 billion in Goldman Sachs, and also has an option to invest $5 billion more at a later time. What is Buffet’s rationale?Actually, Buffet is just demonstrating his great leadership skills. In particular, in the context of leadership intelligences, Buffet’s decision reflects his “analytical intelligence”. Think about it. Why Goldman and not any other company? Why now and not anytime sooner or later?Here are a few thoughts: About timing. Buffet knows that the financial markets need a shot in the arm, and as a thought leader, he is in the best position to provide that much-needed confidence by investing in a company. About Goldman. While not safe from the crisis in the financial markets, Goldman has avoided any mortgage-related crisis. And although profits have been declining, the firm has been steadily showing a quarterly profit. Now, with Buffet’s investment, Goldman can raise additional money from selling stock to the public. The boost Goldman is getting has already been demonstrated in the 6.5% uptick in its share price yesterday. The WSJ article notes that the deal “will give Mr. Buffet a healthy stream of cash and potentially ownership of 10% of Goldman.” Win-win. And of course, a desperately-needed vote of confidence in the financial institutions.Isn’t that leadership?

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Wilbur Ross: NPR Interview

NPR interviewed investor Wilbur Ross this morning. During the interesting interview, Ross revealed that he had tried to be a creative writer in his student days. What had he found useful from his creative writing training, however short-lived that was, to his work today as he takes over and revived failed companies? His answer–not ideation or any such creative thing–but “analytical skills” (!) When you have 1000 words to write a piece in, he said, you have to “organize your thought processes, organize your questions, and think through what your observations were.” He went on to say how these abilities are useful in any kind of activity that calls for analytical abilities, and especially in his work in the private equity space.

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Innovation Value Chain

Along the lines of Michael Porter’s value chain in strategy analysis, it is possible to conceptualize an innovation value chain. Often companies get stuck in a rut by confusing innovation with ideation and not moving beyond idea generation.Recently, researchers at INSEAD have pointed out that “The [innovation value] chain starts with idea generation, but then moves to prioritising and funding ideas, to converting those ideas to products and finally to diffusing those products and business practices across the company.”It is interesting how this maps into the leadership intelligences framework.

Stage in Innovation Value Chain

Leadership Intelligence

Idea Generation

Inventive intelligence

Prioritizing and funding ideas

Analytical intelligence

Converting ideas to products

Operational intelligence

Diffusing products and business practices

Communicative intelligence

The problem with an innovation value chain is that it can mislead us into visualizing the innovation process as linear, proceeding in sequential stages, whereas in reality, the stages messily tumble into each other–back and forth. (The innovation value chain reminds me of the woefully inadequate “waterfall model” in software development.) Further, another danger is that such stepwise conceptions of innovation make it easy to compartmentalize the organization into hermetic silos by assigning ideation to one department, budgeting to another, and so on. In the leadership intelligences framework, a focus on the abilities needed for innovation rather than on processes and stages, allows us to break free of sequential mindsets and compartmentalized organizations. In this sense, the leadership intelligences framework helps to structure chaos, to provide the “disciplined disorganization” necessary for innovation.

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