View from the Top
HBS professor Carl Kester discusses leadership with five of his classmates — chief executives from the Class of 1977
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| Art by Digital Vision |
Corporate leadership is a much-discussed topic these days. With financial scandals making headlines daily, the CEO hero worship that was common during the late 1990s is out and increased skepticism is in. “The imperial chief executive, hailed not long ago as the savior of entire companies and the driving force behind the turnaround of the American economy, is suddenly under siege,” the New York Times declared in June. In the months since, the chorus of voices questioning today's business leaders has only increased in volume.
In his role as MBA Program chair, HBS professor Carl Kester, a member of the Class of 1977, has engaged many students in discussions about leadership. So it seemed fitting for the Bulletin to ask him to coordinate an exchange of views on the topic among a small group of the many chief executives from his HBS class. Given their respected leadership of some of the world's best-known companies — Procter & Gamble, Credit Suisse, General Motors, Bain & Company, and AT&T Broadband — these members of the Class of 1977 have a first-person perspective on the challenges facing today's leaders.
Who are the leaders you admire today?
Rick Wagoner, GM: President Bush and former New York Mayor Rudy Giuliani exhibited remarkable leadership following the September 11 crisis. I also admire Michigan Governor John Engler, who's shown courage in taking on some tough but important political and economic issues. I have a lot of respect for Jack Welch for the sustained, excellent business results achieved during his tenure leading General Electric.
Bill Schleyer, AT&T: I would also pick Bush, as well as Prime Minister Tony Blair. I think their unequivocal, immediate, ongoing response to terrorism was admirable. They focused on doing the right thing rather than on the political consequences.
Lukas Mühlemann, CS: I believe it has become much more difficult to admire anybody today. Many people excel in a certain environment, but when it changes, many of the same people struggle.
Orit Gadiesh, Bain: It is hard to get any real perspective on our contemporaries, so I tend to reserve my admiration for historical figures. Winston Churchill comes to mind. As a leader, he had a remarkable ability to get people and processes moving together in the right direction, clearing obstacles and getting things done.
Has the public lost confidence in today's business leaders?
A.G. Lafley, P&G: I think the public has lost confidence, and leaders need to say what they'll do and do what they say. Integrity and delivering promised results will rebuild trust.
Mühlemann: Yes, the public has lost confidence. The recipes to restore it are not easy. Being honest, humble, and setting realistic expectations may be good ingredients.
Gadiesh: The public has lost confidence, and the underlying problem does not seem to be the absence of checks and balances, but that not everybody is making them work. Business leaders have to set a better example. We must foster a culture in business that does not tolerate “nodders” and “yes men,” neither in management nor in the boardroom. We need a culture that is willing, when necessary, to ask awkward and embarrassing questions and that insists on believable answers — one that does not shuffle responsibilities off onto the lawyers or the accountants.
Schleyer: The big offenders get people talking, but I don't believe the American public has in general lost confidence in corporate America.
Wagoner: Realistically, yes, the data suggest that business leaders — and business, in general — have lost a lot of ground recently in terms of public perception. We need to restore confidence through effective and proactive communications, through openness and candor, and through accuracy and conservatism in financial reporting.
What are some of the important skills a CEO must possess?
Gadiesh: A skilled leader will have a goal for his organization that is both ambitious and achievable, a strategy to get the organization there, and the ability to communicate this strategy clearly, simply, and repeatedly. CEOs also need to pick good people, put them in the right positions, and give them the tools to execute and achieve the desired results.
Wagoner: Leaders must know and stay on top of their business, and they must be proactive in driving for results. Good leaders don't wait for issues to arise, they anticipate them. They help solve problems. They listen to people and coach them — “We need to get these results; how can I help you get them?”
Schleyer: Let's not forget that it is crucial for a leader to be able to relate to all levels of an organization. Leaders need to have the ability to communicate with Wall Street and Washington, but more importantly, they need to be able to communicate with the top people in the company and the person who is working the assembly line or answering the phones.
