Rodney Johnson - Without Warning

Over the past decade, GE has been a source of World Class leaders for numerous companies.  For instance, Jeff Immelt, James McNerney and Robert Nardelli were each hoping to receive the nod from Jack Welch upon his retirement.  Jeff Immelt was selected.  Although in the past year, GE’s stock price has experienced a 75+% decline. James McNerny became the CEO of 3M and now heads up Boeing.  Boeing’s stock price has declined upwards of 65% in the past 12 months.  And Robert Nardelli moved over to Home Depot where his tenure was suspect and now heads up Chrysler, which is flirting with bankruptcy.

Here is the question.  In the future, will the perceived value of leaders emerging out of GE be tarnished?

From my perspective, most emerging leaders have cut their teeth in three arenas in recent years. International trade, aka the World is Flat model.  Secondly, high finance.  And third, growth through Merger and Acquisitions.  Suddenly, the World looks significantly different than it did a year ago.  What was in vogue, is quickly going out of favor.  For many companies, it will be getting back to basics.

Is the GE leadership model out of vogue?  If yes, what type of leader will be in demand over the next 3-5 years?

The comedic duo of Stan Laurel (the skinny one) and Oliver Hardy were a popular comedy team back in the days when Black and White was still popular.  And one of their most memorable lines was, “This is a fine mess you got us into.”   Well I was thinking about this line and the similar statures between that of Rush Limbaugh (Oliver Hardy), the overly pompous Republican soothsayer and that of President Barack Obama (Stan Laurel), the straight guy.   

Well, in recent weeks, Limbaugh has challenged the President to a debate on his talk show.  And the only conclusion I see coming out of this would be these final words from Limbaugh, “Well, Mr. President, this is a fine mess you got us into.”  Unfortunately, President Obama is giving Limbaugh more than enough material to make this phrase apply, at least at the moment.  And unless something reverses course, “a fine mess” could denote the first year of his presidency.  So far, the stimulus isn’t stimulating.  And his economic plan isn’t being very economic. 

Well, in Without Warning fashion, I expect Saturday Night Live to quickly create an ongoing skit with Limbaugh and Obama in the oval office.  And the designation, “Well Mr. President, this is a fine mess you’ve gotten us into” will come to life.

As the economy slows, how do you know you’re making the right decisions?  What are the right actions?  Where do you cut?  What and whom is expendable?  Truth is, leading in a down economy is difficult, with more traps and distractions that could put any seasoned veteran leader down for the count. 

Why is this?

Truth is, we’re programmed and educated in the processes of “how to grow” a business.  Incentive plans, strategic plans, product development are all generally based on growth.  Not contraction. Which leads us to my first point.  Leading in a downturn is psychologically challenging, and you must accept the challenge with open arms.  Most leaders simply will be unable to say, “I’m not participating in this recession.”  The depth of the recession is simply to broad and too deep to avoid.  The second challenge should be taken for granted.  You will need to make numerous unpopular decisions.  Accept the fact you will not be Mr. Popularity for some time to come.  Third, don’t forget to do the things that made your business successful in the first place.  Actions related to customer service, quality, a pleasant work environment and keeping the remaining workforce motivated and appreciated is paramount to your success. 

The natural inclination for business leaders to pursue at this juncture is to make something BIG happen.  However, Without Warning events tend to emerge from messing up on the little things.  At this point, taking care of the little things is more important than ever.  Now go do it.