Monday, December 28, 2009

Bold truth -- from an unlikely source

Rarely has a bold truth come ringing out of a Sunday talk show during the holidays. And rarely have so few words implicated so many with such little fanfare.

As the usual year-end imagery gathers on TV and the Internet, it's highly unlikely the comments of Massachusetts Gov. Deval Patrick will make the final cut. That's too bad. Because what Patrick had to say about the past 10 years has deep implications for the next few.

Appearing on "Meet the Press" alongside New York Mayor Michael Bloomberg and pol Newt Gingrich, Patrick summarized the first stage of the new millennium as the "self deception decade." Y2K, threat of terrorism manifested by Sept. 11th, two wars fought on the cheap, housing/Wall Street bubbles, etc. Whatever we spent or did then was put off for tomorrow. Patrick predicted that the coming decade will be when we finally get honest and deal with the "intractable problems facing society."

Fair enough, Governor. You're a smart and admirable point-of-view public figure. But what you said strikes to the core of a much deeper issue that no one seems able to address -- much less solve.

A vast majority of leadership elites have grown to believe their own deception, making real connections with followers fleeting. Trust and confidence have been thrown out with the bath water. Innovation -- which Patrick said will characterize the coming decade -- gets tossed around in conversation like a worn out bromide while little changes. Consider the evidence. Government, despite a transformational president, remains the same both symbolically and systematically. Two of the recession's hardest hit industries, autos and banking, continue to maintain the status quo as evidenced by events at GM and Bank of America Corp. "Going green" remains just that as even Bloomberg confessed by saying "no one knows what that means." How the green movement hasn't been effectively connected to eliminating dependence on foreign oil tells all you need to know about how special interests engulf the present system.

Elites have grown oblivious to their own deception for a range of factors -- most center on self glorification vs. productive difference making on behalf of others. Case in point: What just transpired between Congress and the White House on health care reform. Note: This is not a policy indictment; more to the point, it's about acting above board when no one trusts what you're doing. Equal offenders from the political and business realm line both sides of this issue.

Huge sums of money also feed the beast called deception. A billion here, a billion there. No amount is too small. It's almost as if Monopoly money is being exchanged for derivatives to be paid later. Leaders have forgotten that it's the public's (taxpayers' and shareholders') treasure that they're manipulating for selfish personal gain. No accountability leads to zero correction; cycle continues. The passing of Sen. Kennedy over the summer served as a stark reminder of what a lifetime of public service entails. It's too bad his legacy has already been shuffled away in the Senate's coat closet.

Fortunately, or unfortunately depending on your view, the public is way ahead of the deception. They're furious, anxious and often perceived as irrational, which means they are irrational in a heavily mediated world -- or whatever passes for the nightly news.

The real question is what can be done. There are no easy answers, but it begins with calling out the issue. It's too bad we can't assign TMZ.com or the "National Enquirer" to the story because they would get to the bottom of the barrel in a hurry. Facts or no facts, the tabloid media, YouTube and other new outlets such as Twitter have a way of cutting through to the unfiltered core faster and better than anyone else.

Which brings us back to the future. Before we go further into the "honesty decade," as Patrick predicted, there's still a fair share of flushing out to do with the deception decade. Which means we'll probably keep throwing the bums out of office and tossing stones at CEOs in glass houses while little gets done. Some things don't change.

The only way to make a difference is by taking personal action and encouraging others to do the same. Not everything has to be about ME! Granted, until there is a sense of collective We, it's awfully hard not to look out for A-1. Especially when things are upside down economically.

Maybe the next 10 years will turn out to be the "Me to We" decade? Probably not. 'Mewee' sounds like a dumb Charlie Brown character. Oh well. Back to the drawing board for now. Welcome your ideas on a better name.

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Thursday, December 17, 2009

Introducing the new Fleet BofA

Well, at least it's done. Bank of America Corp.'s board whiffed by selecting an insider/outsider, but thankfully, the publicly bungled succession process is finally over. Look soon for spin on the new Bank of America, which will resemble the old with a new "fleeting" influence. 'Fleeting' is a bad play on words referring to the strong influence of three former Fleet executives who currently sit on BofA's board and the new CEO, Brian Moynihan, who also formerly worked at Fleet. More things change, the more they stay the same. Prediction: The bank's board will be shopping for another CEO within a year's time.

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Tuesday, December 08, 2009

BofA: Where's the new CEO?

The Bank of America Corp. (BofA) CEO search drags on. First the board said through a spokesperson that they were going to have a candidate in October. Then Thanksgiving came and went. Now the deadline is first quarter 2010. According to the Wall Street Journal, the bank's board is meeting today but they likely will not be naming a new CEO. So what exactly are they doing: Hanging the stockings with care?

While the board deliberates, the usual vacuum gets filled with everything from potential candidates who won't take the job to how the bank paid back TARP money so they could attract the right CEO candidate. Pardon the blunt dismissal, but this latest mainstream revelation is dumb. No one at that level is going to make their decision based solely on money, and if they were, then they're not suited for what the job requires.

Managers take jobs because of money; leaders take jobs because of the ego-based challenge and then the money, which when you're a candidate for the top job at the nation's largest bank assumes you don't need a paycheck every 15 days. Of course this assumption could be wrong like most of the others during the Great Recession. But the rule generally holds true at the top rung.

Let's review a few key qualifications since the basics seem to have lost more interest than a C-SPAN rerun. Sooner board steps up, obviously the better.

1.) Proven leader, not another manager. The new CEO needs to be someone with gravitas and proven ability to navigate constituencies that some believe now poison the bank's dry well: Government regulators, Obama administration officials, investors and previous owners (latter two are one in the same but sometimes it's difficult to tell.) For anyone that still believes that the new hurler in chief will be a qualified manager from the inside, recall the baseball song about belly itchers and relief pitchers. One does not preclude the other. If that doesn't suffice then consider what the WSJ's Intelligent Investor had to say about the difference a new CEO makes in a company's profitability: http://online.wsj.com/article/SB10001424052748703735004574575880529756434.html?mod=WSJ_hpp_sections_personalfinance
Preview of answer: Not much. Difference is little more than a coin flip.

2.) Able to lead and build credible consensus in a new direction. The previous occupant, Ken Lewis, comes from the old command control school where oddly the new darling, GM Chairman Ed Whitacre, came from as well. That's not going to cut it. Key question: Who can marshall the capital, both human and financial, combined with the right strategy to move BofA forward in not only a different direction but an entirely new operating environment? Trust and confidence weigh heavily here but don't try telling that to the board, which hasn't exactly used this transition period to build either quality.

3.) Character as a tangible vs. intangible requirement. Okay, don't roll your eyes. While this qualification gets thrown around more than a bromide, reputation does matter. Or at least it should in this case based on the former occupant's behavior. In his "Eighth Habit," Stephen Covey cites a stat. that lends credence here: 90 percent of all leadership failures are due to character. Flaws, break downs, sacrificing values, etc. You would think that whoever takes the top job at BofA will need to be squeaky clean and politically astute. And no, those two qualifiers don't represent an oxymoron.

Good luck, BofA board. We look forward to hearing from you directly sometime through your Chairman or search firm. Tick-tock, tick-tock.

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