What does George know about leading in crisis that makes him an expert on the subject? It turns out quite a bit. As Medtronic CEO, George earned a reputation for managing with integrity and challenging people to think creatively when dealing with crises. That approach helped establish Medtronic as the world’s leading medical technology company that experienced explosive growth of nearly 35% per year. In addition, as a member of the Goldman Sachs Board of Directors, George had a front-row seat as the recent financial crisis rocked the world.

George’s lessons include: Face Reality, Starting with Yourself; Never Waste a Good Crisis; and Be Aggressive: This is Your Best Chance to Win in the Market. In addition to providing practical advice, George shares real-life stories, anecdotes and a wealth of wisdom for current and aspiring leaders. He says the natural reaction when facing a crisis is to “hunker down,” batten down the hatches and ride out the crisis.

Rather than running for cover, George believes every crisis provides an opportunity to emerge as a stronger, more vibrant company or individual on the other side.

“Winners are not those who just get through it. You do have to get through it, but the winners are those who figure out how we can position the opportunity to make our company a lot stronger,” he says. “In Chinese, ‘crisis’ is made up of two characters: Danger and Opportunity. We all know ‘danger,’ but winners find the ‘opportunity.’”

During difficult times, employees look to leaders to fill-in-the-blanks with answers and reassurance. George advises leaders to take a team approach to solving problems.

“Don’t be Atlas, get the world off your shoulders,” he says. “Do two things — bring your teammates in your organization ‘real close around you to get the very best minds and best energy you can addressing the problems’ and ‘get everyone committed to solving them with you’ while getting to the real root causes of the problems.”

Beyond that, George urges leaders to establish an external support network — a person or group of people they can be totally open with and to bring perspective to a situation. It isn’t a secret that crises are the true test of leaders. And George believes most effective leaders don’t wait until they’re in charge to learn how to deal with crises. George says he has seen a number of leaders fail because they didn’t have prior experience in leading a crisis.

Overall, the key quality of good leaders is adaptability. George says his experiences, and the experiences of others, have proven to him, that you have to be in the game to learn.

“The worst decision I ever made is the one I didn’t make,” he shares. “A crisis is a real test of a leader’s courage. Leaders who aren’t willing to take a risk, that don’t have the courage, will surely fail.”

For more information, please visit www.billgeorge.org for videos, and activities. Also, look for the study guide in the back of the book. It’s a great tool for small groups to use in working through the lessons together.

Article By Paul J. Welsh

As a result, books about the great leadership successes draw us like magnets. But Tim Irwin, Ph.D., looks at the discussion of leadership from the opposite perspective—leadership failures. That’s what makes “DERAILED: Five Lessons Learned from Catastrophic Failures of Leadership” such a compelling book.

Irwin examines the collapse of some of the biggest names in business: Robert Nardelli at Home Depot; Carly Fiorina at Hewlett-Packard; Durk Jager at Procter & Gamble; Steven Heyer at Starwood Hotels & Resorts & Worldwide; Frank Raines at Fannie Mae; and Dick “Richard” Fuld at Lehman Brothers.

Irwin points out that these are people who have been very successful but ultimately were fired by their boards of directors.

As he writes in this book, “Derailment and lack of success are different.”

Irwin suggests that there are similarities in the reasons why all those leaders were ousted. In none of these cases was fraud involved. As leaders, Irwin says we should look at these similarities in evaluating our own performances. In truth, this book is as much about us as the leaders profiled he says.

The five lessons identified in the book are:
1. Character Trumps Competence
2. Arrogance is the Mother of All Derailers
3. Lack of Self-Awareness is a Common Denominator of All Derailments
4. We are Always Who We Are, Especially Under Stress
5. Derailment is Not Inevitable, but without Attention to Development, it is Probable.

The first lesson, “Character Trumps Competence” is a challenging statement that really touches all of the others at some level. “Character” as Irwin describes it is not stealing money or sleeping with your executive assistant. It is about things like authenticity. Irwin says the reason authenticity is so important is that in repetitive research we learn that people want a leader they can trust. And if you can’t get people to follow you, by definition you’re not a leader.

Other aspects of “character” are related to things that are lacking– lack of self-management, humility and courage.

Behaviors that derail “self management” include being easily angered, undisciplined and inflexible. In the case of “humility” the behaviors causing derailment include arrogance, self-promotion and dismissiveness. Finally, with regard to “courage,” those derailing behaviors include conflict avoidance, micromanagement and an excessive need for approval.

Even before reading this book, you can find free personal risk assessment tool at www.DerailedLeader.com and it’s worth a visit.

Article By Paul J. Welsh

Well I’ve got this guy I want you to meet. His name is George Cloutier. He’s a Harvard grad that Business Week dubbed a “Turnaround Ace” and his focus has always been on small business. Actually, you may not even need to hire him, just read his book.

His national best-selling book is called Profits Aren’t Everything, They’re the Only Thing. The book includes “The 15 Rules” that George Cloutier’s consulting firm has used to turn small businesses on life support into profit-making machines. His success with helping small businesses is immense.  In fact, in the first chapter of the book he talks about how his firm has helped more than 6,000 businesses in 300 industries. His company has identified more than $1 billion in additional profits for those clients.

So why wouldn’t every small business want to hire Mr. Cloutier’s consulting firm and get their share of the $1 billion in extra profits? Good question.  The answer is that these kinds of profits come with a price.

For example the book suggests that you should work seven days a week, never pay vendors on time and give up golf.  Are you ready to make those commitments or do they make you feel like maybe profits aren’t everything?

If these measures sound extreme, they are. Cloutier says you only have to make the hard choices if you want to be successful in business. If you want to have life balance, start a non-profit he adds.

The majority of Cloutier’s clients are family businesses. And two of his 15 Rules are specific to them: Love Your Business More Than Your Family and The Best Family Business Has One Member.  As harsh as that seems, Cloutier says too many family businesses mix family issues into the business and in the majority of situations they fail. The first of those rules states, “Your cell phone is for taking orders from clients NOT grocery lists. Weekends are for work. Pray at your desk if you must. Your business is not a part-time job. Be there or be broke.”

There is no doubt that much of Cloutier‘s advice is challenging and even scary.  Still, the book is both entertaining and thought provoking.

George Cloutier, a magna cum laude graduate of Harvard College and Harvard Business School, founded American Management Services in 1986. The company’s web address is www.amserv.com

Article By Paul J. Welsh

Interview was conducted by Jay Liebenguth

1. Is this book is going to be preaching to the choir about addressing environmental and social issues? Will it be a studied treatment of the issues or a piece of propaganda?

2. It takes a bold author to first thank the Forward writer Darryl Vernon Poole for comparing him to Rachel Carson and Malcolm Gladwell. Then, proceed to compare himself to George Orwell. If he’s that good I need to read on.

This book is the latest update of a book called World Inc. (2007) which has received significant acclaim. And, as president and founder of the American Hazard Control Group, Dr. Piasecki has been consulting with major corporations on environmental corporate strategy since 1981. So his opinions are worth hearing, worth reading.

“Competition has created an industrial underbelly of pollution, climate change, resource depletion, new forms of economic imperialism, and regional wars over water, clean air, and trees,” says Dr.Piasecki.

He contends that today’s businesses must take responsibility for leading in the areas of social and environmental reform.

You can almost hear businesses asking, “What’s in it for us?” And Dr. Piasecki has an answer for them. He explains how responding to social needs will open markets, generate profits, and win investment capital. The examples he profiles in this book are from consulting he has provided to clients like Toyota, Suncor Energy and Hewlett-Packard.

Dr. Piasecki is very pro-capitalism. He just sees the need for capitalism to change, saying that traditional capitalism may be getting a bit senile. He believes that both corporations and individuals will need to adjust their bearing in a new terrain. Competing on price and quality alone are not sufficient anymore. Businesses, large and small, must also put social needs into the equation.

He talks about The S Frontier which he observes is already here. It includes the severity of market conditions, the swiftness of information, and social response to capitalism. And according to Dr. Piasecki, if companies don’t adjust, he predicts that the top 300 multinational companies will undergo tremendous change, and only a minority will be in business a few decades from now.

This is a surprising book because the radical changes Dr. Piasecki describes actually grow out of strong business fundamentals. It’s an uplifting book that defines the future of leadership. And the arrogance that seemed to jump out of the book before the first chapter may be justified based on the thinking the book advances.

Article By Paul J. Welsh

Interview was conducted by Jay Liebenguth

“Give me a country that is at war because the last President has been shot and I’ll figure out something to do to make money,” says Smith who is author of RICHES AMONG THE RUINS—Adventures in the Dark Corners of the Global Economy.

In this new book, Smith recounts his experiences risking not only his money, but his life, in war zones, dictatorships, and crime-ridden capitals in countries like El Salvador, Nigeria, Turkey, Russia and Iraq.

Smith sounds like he has a risky life, risking not only his investments but his life. But he doesn’t see it that way. He says he is risk adverse which he defines as always having an exit strategy for most of the bonds he invests in. He suggests that any time you invest in something that looks like it’s going bad, you should head to the exit. You’re better off taking a loss and living to fight another day.

For Smith that strategy has served him well except when it came to Russia. He rationalized that Russia was too big for the World Bank and International Monetary Fund to let fail. In turn, he invested $20 million in Russian Government Bonds. But then on August 17, 1998 Smith says, “Russia gave the middle finger to the financial world and I was at the top of the finger.”

That lesson taught him to never bet on something just because it seems “too big to fail.” He contends that nothing—no company, business or country—is immune to failure. As examples in the United States he cites General Motors, AIG, Fannie Mae and Freddie Mac.

The first thing Smith will do when arriving in Damacus will be to try to identify a local partner he can trust. To find that person who can provide him with local insights he talks with everyone including the cab driver on the ride from the airport. But he says you need to be careful because resumes are more fraudulent today.

The countries that Smith predicts will be the rising stars for investors are Brazil, China, India and Russia in that order. He suggests if you’re buying a mutual fund you should look to see if those countries are included.

You can follow Smith’s thinking at www.richesamongtheruins.com

Article By Paul J. Welsh

Interview Conducted By Jay Liebenguth

The residential realtor says to the commercial realtor, “When are you going let me sell you a house? “

The commercial Realtor says, “Not until you figure out how to sell mine.”

The general contractor shakes his head and says, “I couldn’t wait for 2008 to get over until I saw 2009.”

This is a true story from October of 2009 Chamber function. It’s not funny like those priest, rabbi and Baptist minister stories. No, there’s been little to laugh about in the real estate and construction industry for the past 18 months.

So why is general contractor Gerry Crawley upbeat? His company, ARC General Contracting, currently has 19 jobs in progress and he declared “The recession is over” on March 6 while his business was at a low point that paralleled most of the construction industry.

“When the whole world went off its axis, nobody knew what the fallout was,” Crawley said. “You get immobilized by fear. It makes you reactionary.”

What’s more, employees can smell fear and then they become immobilized according to Crawley. They worry about what is going to happen.

Soon, however, he realized during last year’s decline that he was not facing a business crisis but rather a crisis of faith. Even though ARC was listed as a Top 25 General Contractor in the Kansas City Business Journal he began to question how good they really were.

He surmises that the economy caused every entrepreneur to do that kind of soul searching and begin to understand that the ground rules have changed.

“You can bury your head in the sand or make a commitment to change,” Crawley says.

He cited Dan Lowe of RED Development as saying, “This is the time to make relationships.”

For Crawley, change began when he brought in a business coach named Caroline Smith. She helped Crawley examine who ARC was as a business which led to a one-page strategic business plan that he refers to regularly. This streamlined document made the company’s objectives more clear. He now shares the Plan and the company’s financial results at least quarterly with all of his employees. That diminishes fear and builds trust.

“You work to build trust,” Crawley said. “It’s hard to make a profit without it.”

“Once we decided not fail, things got better,” he said. “We kept people working and that’s something good.”

Crawley has a business philosophy that has become the company’s motto:  “Service Over Self-Interest.”

“Whatever we do, I’m simply a steward of the client’s money,” he says. “We’re just like a big ATM machine.”

Now that’s a funny line.  It’s easier to laugh when your company is stronger. Crawley has discovered that. And ARC is stronger.

Article By Paul J. Welsh

Interview was conducted by Jay Liebenguth