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Fri 16 Mar, 2007 08:34 pm
I watched PBS's NOW interview of Bill George and recommend it to everyone alarmed about corporate ethics. ---BBB
Interview: Bill George
Can capitalism be saved from its own excesses? Bill George, a former Fortune 500 CEO and Harvard professor, thinks so?-but it will take hard work, sacrifice, and commitment on the part of corporate leaders.
In a compelling conversation with NOW's David Brancaccio, George prescribes a cure for self-serving corporate leaders who abandon rules of right and wrong at great peril to their companies, their communities, and the environment.
"I think we've been choosing boards of directors and many wrong leaders for the wrong reason. We choose people for their image, their charisma, their style and we should be choosing them for their integrity, for their character, and their substance," George said. He believes great organizations have thousands of leaders, not just one person at the top.
Part of this means foregoing the short-term gains that Wall Street seems to love, and adopting strict ethical standards. George believes this will increase long-term corporate value.
This week, laws are being debated in response to the Enron and Worldcom debacles, but some argue the rules are too costly and cumbersome. George discusses the law and explains why he believes it has gone too far.
Part of George's inspiration comes from the 125 top U.S. business leaders he spoke to for his new book, "True North." An excerpt is available below.
What's wrong with American capitalism and how to fix it. This week on NOW.
About Bill George
Bill George is Professor of Management Practice at Harvard Business School, where he is teaching leadership and leadership development. He is the author of the best-selling book, "Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value." His new book is "True North: Discover Your Authentic Leadership."
George is the former Chairman and Chief Executive Officer of Medtronic. He joined Medtronic in 1989 as President and Chief Operating Officer, and was elected Chief Executive Officer in 1991, serving in that capacity through 2001. He was Chairman of the Board from 1996 to 2002. Under his leadership, Medtronic's market capitalization grew from $1.1 billion to $60 billion.
George currently serves as a director of ExxonMobil, Goldman Sachs, and Novartis, as well as the Carnegie Endowment for International Peace and World Economic Forum USA.
During 2002-2003, George was Professor of Leadership and Governance at IMD International in Lausanne, Switzerland and Executive-in-Residence at Yale University's School of Management. Prior to joining Medtronic, he spent ten years as a senior executive with Honeywell and ten years with Litton Industries, primarily as president of Litton Microwave Cooking.
George was named Executive-of-the-Year by the Academy of Management (2001) and Director-of-the-Year by NACD (2001-02). In 2002 George was selected as one of "The 25 Most Influential Business People of the Last 25 Years" by PBS Nightly Business Report & Wharton School of Business.
True North: Discover Your Authentic Leadership
True North: Discover Your Authentic Leadership
(J-B Warren Bennis Series) (Hardcover)
by Bill George
Editorial Review
Business Week, March 12, 2007
When top executives sit down to write a book, the result is often a celebratory memoir or an upbeat treatise on how you can emulate their success. Bill George has chosen to produce neither, and readers are the luckier for it. Instead, the former Medtronic CEO and current Harvard Business School professor has teamed up with co-author Peter Sims to offer a practical, inspiring examination of the executive experience, True North: Discover Your Authentic Leadership. While the volume is a sequel to George's 2003 best-seller, Authentic Leadership, it easily stands alone as a guide to locating what the authors call "the internal compass that guides you successfully through life."
At the heart of True North is a series of interviews with 125 managers, from Novartis CEO Daniel Vasella to Palm co-founder Donna Dubinsky. George and Sims indulge in a few anecdotes that flatter their subjects. But they also get interviewees to talk about failures, emotional challenges, personal tragedies, regrets?-in short, life events that knocked them off typical career paths. Taken together, the stories illustrate True North's thesis: that there is no single way to become an ideal leader. The volume is both memorable and perceptive.
True North has three parts. The first is an anecdote-rich section that describes what it means to be an "authentic leader" and examines how various people arrived at this status or lost their way. There's Kevin Sharer, who abandoned General Electric for MCI, only to find that he was miserable and that Jack Welch wouldn't take him back. ("Hey, Kevin, forget you ever worked here," Welch told him.) Sharer learned patience and humility and went on to become chairman of Amgen. The key experience for Novartis' Vasella, in contrast, came from childhood: He endured years of illness and learned the value of compassion in health care.
The book's second section, which focuses on the five key facets of a leadership plan, is its most useful. First comes "knowing your authentic self," i.e., learning to be self-aware. This proved difficult for David Pottruck, a former CEO of Charles Schwab who found that his long workdays and aggressiveness made colleagues resent and distrust him. His answer, on the job and in his third marriage, was to force himself to seek feedback on a regular basis. Next, after you attain a measure of self-awareness, you should focus on the values and principles that matter to you. David Gergen and Jon Huntsman, both of whom served in the Nixon White House and experienced the Watergate scandal up close, had to learn to draw ethical lines. Huntsman recalls that "an amoral atmosphere permeated the White House." The growing realization, highlighted by a request to entrap a politician, prompted him to leave.
A third step in the construction of a leadership plan is discovering what motivates you. The most successful leaders, the authors learn, rarely start out wanting to get rich. They are inspired to make a difference, to test their limits, to follow a passion. In many cases, they abandon secure posts for the unknown. Fourth in the authors' scheme is building a support team. Here, we read that many in Silicon Valley, including Palm's Dubinsky, were aided by Intuit Chairman Bill Campbell, whom George calls the "dean of mentoring." Howard Shultz of Starbucks found inspiration in management guru Warren Bennis. Finally, you should try to forge what George and Sims call "an integrated life" that augments work with such things as family, friends, community service, exercise, church, and whatever else matters in your life.
True North's last section deals with empowering the people around you. The authors ask leaders?-including many women (more than in any other part of the book)?-to talk about the higher calling of their work. Avon Products' Andrea Jung explains that "what we do is elevate women in the community," while Anne Mulcahy of Xerox talks about trying to motivate personnel as the company struggled to stave off bankruptcy. As elsewhere in the book, this is no victory lap. At one point, Mulcahy recounts pulling over on a highway after a tough day, saying to herself: "I don't know where to go. I don't want to go home. There's just no place to go."
Most readers will relate to at least some of the subjects' struggles, whether they involve watching a sibling die or fighting to keep ego from getting in the way of results. These people come across as fallible, emotional, and, yes, authentic. A series of exercises at the end of each chapter may help readers evaluate their priorities and practices. While True North offers no simple answers, it provides plenty of fodder to help readers figure out for themselves how to become a leader.