Sunday, July 24, 2005

‘Go on offense when others retrench'

“Jack Welch and the 4Es of Leadership”
McGraw-Hill, 2005


This sounds like an unlikely advice in the latest book on the leadership style of former General Electric Chairman Jack Welch. After all, Mr. Welch is renowned to have a “rulebook” that the bottom 10 percent (of low performers) of the multinational giant “be fired every year.”

But, that’s the paradox of Welch and of how he views business, according to author Jeffrey A. Krames in this book “Jack Welch and the 4Es of Leadership.” Krames writes of his icon:

“You have to shrink in order to grow; you have to give up things in order to gain things. By eliminating jobs and closing unproductive factories … he was creating the means to reinvigorate the places that would spark the company’s transformation.”

Averse to keeping things hanging, Krames adds: “Welch understood that many apparent contradictions in business resolve in the face of a larger vision – and may not be contradictory at all.” This so-called propensity for giving low achievers their “walking papers” has not endeared Welch with professors of the finest graduate business schools – at least in the Philippines.

And yet this new book may provide the answer to the riddle, as it lists the 4E’S of leadership, saying: The 4E Leader has energy … energizes … has edge and … executes.

As the author describes the 4Es of leadership, one notes a consistent theme running through the discussion like a unifying thread. Jack Welch wants his leaders to have “energy” – the fuel that drives the business, the passion to get things done. He wants a leader who runs 95 miles per hour --75 miles elsewhere in the same book -- “in a 55-mile-an-hour world.” (Don’t try this inside the North Luzon Expressway!) And so he is impatient with those who lack passion for their work, and who wind up in the bottom ten percent in his organization.

The next attribute – the leader who energizes – is simply the logical consequence of a suitably driven leader, who then “sparks others to perform.” In this section, the theme recurs, quoting Peter Drucker: “One can only build on strength.” And those who are weak, reminiscent of the Darwinian “survival of the fittest,” must go.

Welch does not waste time on those who are weak links (or, pardon the pun, “weaklings”) – since how can you energize one who has no energy in the first place? I remember a training manager who dished out a homegrown philosophy with this bald statement: “Huwag magtiyagang maghanap ng kuto sa ulong kalbo!”

The Welch style acquires more edge as Author Krames discusses the last two qualities in the 4Es of Leadership – the Leader has edge and the Leader executes. The book confronts “people decisions” so that the firm retains the competitive “edge” – making the principle sound bland enough: “Use a differentiation system to keep the best and weed out the worst.” The author says it simply, downplaying the bloody process of thousands of heads rolling: “He cut costs relentlessly (including the payroll).”

Krames shows the results in two sentences: “When Welch took over, GE had revenues of about $25 billion. When he stepped down, GE was a $130 billion company.”

Ever emphasizing the need for passion and strength, the last E – the leader executes – should mean that the boss must have the managerial will to drive the company effort to its desired conclusion, meaning: positive results. The book emphasizes the need to improve the leader’s “execution quotient,” chalking up high scores in nothing less than the bottom line.

The book, meant to develop leaders around the 4Es Leadership Formula, succeeds in making us understand Mr. Welch better who actually had to adopt a “retrench” policy just so he can mount an aggressive “offense”. He narrates how the controversial retired GE Chairman likened his business team with Super Bowl winners or Olympic gold medalists with this obvious conclusion: He wants only the best in his team.

So the seeming ruthlessness, the apparent indifference to human dimensions are better understood now under the overall theme of “winning,” the title of Welch’s other book. The author, earlier in the book, gives a hint: “To Welch everything is about winning, winning in the marketplace, winning customers, winning new business, winning for shareholders.”
Come to think of it. A local business leader, when he took over a giant beverage company shocked the entire organization with downsizing decisions. Today, the company remains the most admired in Asia.

Is winning the only metric by which to measure the caliber of an executive? Or, changing the question, we ask: Can you forgive a CEO who, due to some other considerations, bring your firm down to bankruptcy? Is business a game, and heads roll as a natural consequence of the overweening desire to win?

Even philanthropists believe in the primacy of “doing well” as a pre-requisite to “doing good.” Read this book, wade through the many digressions of the author, and you will hit oil – or gold. You will have the answers, but you will also ask even more questions. Isn’t that the paradox of business?

Sunday, July 10, 2005

Capturing the ‘moment’ to win, not to fail

“Lend Me Your Ears”
(Updated and Expanded Edition
By William Safire
W. W. Norton & Company, 2004


The attention of the entire country continues to be riveted on the speech of apology of President Gloria Macapagal-Arroyo, delivered recently over nationwide television. What the speech sought to achieve, when the Head of State said “sorry” over what are now called the “Garci tapes” was not, however, achieved.

Instead of assuaging the feelings of both her disappointed allies and unrelentingly acerbic critics -- the speech triggered a series of rambunctious and chaotic Congressional hearings and emboldened a lynch mob with even shriller voices crying for her resignation.

The mishandling (?) also planted a poisoned idea to politicians with moist eyes for the threatened Presidency and for a Senate seat two years from now, and prompted an unflappable Susan Roces to give vent to pent up emotions with uncharacteristic bravado – thus leaving the rest of us wondering what went wrong. And asking: What could have gone right?

Observers were wondering why the Palace, with its vast information resources at its command, could not even muster a phone brigade programmed to provide support to the President right after her “confession.” In fact, the confession was totally unnecessary, but the Palace committee of wordsmiths woefully stumbled all over to string together contradictory statements, needless absolute statements, and a sophomoric line: “I will serve you to the best of my ability.”

Those of you who still doubt the power of rhetoric to make or break a political career or to espouse or frustrate an idea must now be convinced that a careless phrase thrown into a speech invites disaster.

Some observers volunteered the insight that the Palace wordsmiths patterned the GMA speech after the apology of Bill Clinton concerning his links and acts of indiscretion with Monica Lewinsky. If they did, they committed a grievous wrong failing to note the contrasting contexts between Bill’s very private act at the Oval Office and Gloria’s very public act speaking to the arbiter of a Presidential election.

And, if you read Clinton’s speech (the delivered version), you would note the deft hand of seasoned rhetorician. This brings me to speak to you about “Lend Me Your Ears,” a book that I picked out at a cozy bookstore, Ink & Stone. This is actually the updated and expanded edition of “Great Speeches in History” selected by noted rhetoric expert and writer William Safire. The earlier edition was published in 1983.

Editor Safire says in his “introductory address” in this book: “What makes a great speech? Occasion. There comes a dramatic moment in the life of a person or a party or a nation that cries out for the uplift and release of a speech. Someone is called upon to articulate the hope, pride, or grief of all… Some great occasions are frittered away with pedestrian addresses.”

If you have a copy of the President’s speech, and you get hold of the “delivered version” of Clinton’s piece, you will note similarities – and contrasts. One difference is this calibrated phrase from Clinton: “I know that my public comments and my silence about this matter gave a false impression. I misled people, including even my wife. I deeply regret that.” Isn’t it clear that Clinton is apologizing about the consequences of his silence? Compare that with the lachrymose phrasing of GMA’s speech -- “Pinagsisihan ko ito ng lubos,” not even making clear what she is repenting of.

The book also includes the “undelivered” version of the Clinton apology which the former American President had the good sense to reject it. GMA’s contrite speech sounds like this other speech – not thanks to her advisers.

Three undelivered speeches are actually featured in this anthology of 1,156 pages, plus rhetorical pieces classified as memorials and patriotic speeches, war and revolution rhetorical classics, tributes and eulogies, debates and argumentation, trials, gallows and farewell speeches, sermons, inspirational speeches, lectures and instructive speeches, talks on social responsibility, media speeches, political pieces, and commencement addresses.

The speeches date to as far back as the time of Pericles years before Christ and as recent as Tony Blair’s spirited exhortation to fight terrorism right after 9/11. The “moment” cited by Author Safire has been captured by the masters of the spoken word. And when such a moment is “seized,” the speaker is rewarded – if not public support in his time and generation – with a special place in history. And be anthologized to join the ranks of “great speeches” and compelling speakers.

This book, obviously, is a timely read for Palace insiders. Executives in the corporate world can also keep this thick book handy when the moment comes to rally the corporate troops – not with a bland memo – with a soul-stirring speech.