LEADERSHIP - IS IT A MYTH???

I often wonder if the behavior of top management of various companies, businesses, or for that matter any organization is just short sighted now or if has always been so myopic through the ages. Could it be that due to greater scrutiny and supposed greater oversight we are able to observe their fallibility much more often than was possible in the past.

Look around closely at almost any organization be it public or private and you will see supposedly brilliant individuals who we look/looked up to and revere make meaningless and absurd decisions that effect the lives of hundreds and thousands, if not millions, of people in their immediate vicinity. Yet these folk go about living their lives as if nothing has happened, completely oblivious to the plight of all the people around them.

This leads me to contemplate - Is Leadership really such a great trait, and if it is, what exactly is the secret sauce? I know, have read, and even written about the qualities that make a supposedly good or even great leader, but is it really so...

Let's take a few luminaries who are hailed as some of the greatest leaders objectively dissect their behavior as leaders... I know I am probably going to get raked over the coals for bringing up these names...

John Francis Welch, Jr.- Chairman of GE Corporation for 20 years from 1981-2001, more commonly known as "Jack" and "Neutron Jack".

Here is a recent quote from him -  “On the face of it, shareholder value is the dumbest idea in the world,” he said. “Shareholder value is a result, not a strategy … your main constituencies are your employees, your customers and your products.”

However, this is the same man who initiated the concept of "Shareholder Value" or pursed the concept by laying off more than a quarter of GE's workforce within 5 years becoming CEO to pursue higher profits, and increase market cap.

He also pushed the managers of the businesses he kept to become more productive, by constantly working 70-80 hours a week. "Jack" worked to eradicate perceived inefficiencies by trimming inventories and dismantling the workforce. He shut down factories, reduced payrolls and cut lackluster old-line units. For a company that touts innovation and new products what is there to show right now? He is also the same person who pushed for the expansion of GE Capital which almost took the entire company down and caused it to lose it's 'AAA' credit rating. As well as begging the Feds for a TARP bailout, as it was deemed too big to be allowed to fail! Now granted Jack was not at the helm when these things went down, but he took credit for everything good that happened with GE even after he left office, often boasting how he had laid the foundation for everything during his 20 year reign at the company.

If Jack was such a great manager as he has been made out to be then how did everything start to unravel so fast as soon as he left office, that too only after he was assured of an $8,000,000.00 annual pension with lavish company perks. Was there a great smokescreen and mirror show going on, which made him larger than life!?!

His so called "VISION" has decimated so many lives, leaving carcasses all over while he lives in his glass tower in New York, oblivious to the plight of many, still pontificating now!!!

Does anyone ever stop to think that it's not all about widgets and processes, there is a human element to it also! Widgets and processes are there for the use and consumption by human beings. If people can not afford to buy and use the widgets and services no matter how great they are what is the use of creating them. That is exactly the situation the US landscape is in right now. The likes of Jack created this "Shareholder Value" ponzi scheme to pay themselves and now we are there to pick up the pieces...

Maybe one should read Jack's biography with a new perspective, after taking off the rose tinted glasses....

More to come...

Business and Politics

Did you ever stop to consider that Business and Politics are almost identical! Except, that businesses have no multi-party system, which kind of makes business similar to the communist party where anyone can reach the top, but everyone has to toe the party line!- RaviD


The above has to the above ultimate irony for a capitalist business from an ideology point of view.

Some more nuggets -

Monopoly - Monarchy

Big Business - Oligarchy

Board of Directors - Senators / Congressmen / Member of Parliament

Chairman Emeritus - Queen of England / King of Spain / etc.

Institutional Shareholders - Power brokers

Individual Shareholders - Voters

Venture Capitalists - Lobbyists

Transnational Corporations - World Domination

Mergers and Acquisitions - European Union

Corporate De-merger - Dissolution of Czechoslovakia

Corporate Cartels - NATO


By the way did you notice there is no mention of democracy here. Democracy is about promoting equality which is a supposed need (disguised wants), business thrives when there is inequality, which promotes wants. So essentially in a thriving economy or business environment there is not need for a democracy...???!??!? Comments...?

Some more analogies -

Walmart - China

Conglomerates - Ex-Soviet Union

Google - India

GE - USA

Goldman Sachs - Switzerland

Microsoft - Japan

Exxon-Mobile - Saudi Arabia

SAP - Germany

Yahoo - England

Ask.com - France

Apple - Canada

Patent Trolls - Al Qaeda

Bear Stearns - Greece

Lehman Bros. - Iceland

Cisco - South Korea

NAFTA - United Nations

PIGS in the Euro-Zone

On Feb.25th of this year I had blogged about the coming global financial meltdown that would be precipitated due to turmoil caused by the financial profligacy of the European Union member states in the last decade. The Euro-Zone has even joined a visually enticing acronym for the countries most likely to default now - PIGS = Portugal, Ireland, Greece, Spain. Friends if you have any doubts please go back an look up the stats on my blog that I refer to, Greece was the country with the least amount of issues. Just imagine what will happen if Portugal, Ireland, Spain implode or explode depending on what word you would like to describe the event as. All I can say is Europe will be knee deep in - PIS!!!

A fact that had been staring us in the face for anyone who cared to look, but not one major economist or financial guru was willing to admit to. So folks how does it feel to be lighter in the pocket? Invest in currency & commodities - Euro, metals,  and energy? Gee whiz crude is down 15%, the Euro is down 15%, Gold is down from it's high, so friends what is going on.... ? Stay tuned...