Red Flags in the CEO Selection Process 

Digging Deep for Critical Warning Signs

"Observers are often amazed when executives with impressive track records are mysteriously transformed into corrupt and tyrannical monsters once they become CEOs."

--Terry Leap, management professor at Clemson University.

Mr. Leap says that these executives had "serious character flaws that were either hidden or ignored."

"Potentially bad CEOs, however usually possess several of these characteristics and they exhibit them repeatedly," says Leap. He suggests that boards selecting a CEO look at 12 warning signs, the most important being:

1. "An obsession with acquiring prestige, power and wealth." This along with an inability to delay gratification, suggests that a CEO may put his interests ahead of the company or organization.

2. "A reputation for shameless self-promotion and other self-aggrandizing behaviors."

3. "A tendency to create 'grandiose strategies' without including a detailed plan for how they will be carried out."

4. The ability to compartmentalize and rationalize to an amazing degree. This characteristics is shared by bad CEOs and criminals alike.

Leap suggests that boards take the time to dig deep and carefully explore the candidate's background and references, particularly in the late stages of the search process.

Excerpts from the New York Times 3/8/2008.

The Core Competencies of Leadership 

The Scorecard for Leaders

From Success to Significance

This article from Dov Seidman in BusinessWeek.com (9/5/2008) discusses the changes in leadership values that emphasizes significance in business rather than success.

The Era of Inspiration

This article from BusinessWeek.com (8/5/2008) by Dov Seidman takes a look at the new shift in the leadership paradigm.

Inventing the Future of Management

This blog entry by David Sibbet describes a workshop with some of the most creative and successful CEOs in business as participants. This workshop tackled the topic of innovation in management and the participants come up with much to think about for the future.

The Art of Growing Up

David Brooks in a 6/6/2008 editorial about leadership, discusses the value of looking into the abyss as a critical foundation for mature leadership.

Best Business Books

This compilation by US News and World Reports asks top executives, management consultants, and other prominent business leaders, researchers and thinkers about the best business books and what they read to stay ahead. Learn what Mark Cuban; Carly Fiorina; Jim Collins (Good to Great); Hector Ruiz, CEO, AMD; Jeffery Pfeffer; Deborah Wright, CEO, Carver Bancorp; Jim Buckmaster, CEO, craigslist; and others recommend.

CEO as Team Builder

This New York Times article discusses "CEO 3.0", the new version of CEO as team builder. The age of charismatic CEOs, control freaks and turnaround specialists are over.

What Do CEOs Read?

This New York Times article from July 2007 by Harriet Rubin discusses what CEOs have in their libraries that help them to lead and compete, but, most importantly, to think.

New First Data Corp. CEO Michael Capellas

This 7/20/07 New York Times article discusses the new First Data CEO who in jumping from job to job creates value and wealth for him and his company. The article discusses the evolution of CEO from "organization man" to "charismatic leader" to "turnaround specialist" to "operations manager."

Jeffrey Pfeffer on CEO Leadership

This interview with Jeffrey Pfeffer is from Guy Kawasaki's blog "How To Change the World". Pfeffer is the Thomas D. Dee II Professor of Organizational Behavior at the Graduate School of Business, Stanford University. His new book is called "What Were They Thinking?"

Fast Company Open Debate on Leadership

This is an e-mail open discussion between Wendy Kopp and Bill George, ex-CEO of Medtronic, Inc., about the essential qualities of leadership.

Debunking the Business Book

This article from Forbes.com discusses the shaky research foundation and faulty assumptions that the most popular business books make about what makes a successful company.

Overcoming Complacency

A sister piece to the "Leadership in Turbulent Times" article, this article discusses what we have learned about complacency as a result of the tragedy of 9/11 and what we now know about the nature of organizations.

Leadership in Turbulent Times: The New Scorecard

This 2001 article discusses what we have learned about how to evaluate leadership since 9/11.

Ethics and Leadership 

What drives unethical behavior

Are We As Ethical As We Think We Are?

This thoughtful research study from Working Knowledge (HBR) looks at the various perceptions we have and behaviors we exhibit in situations that require decisions about ethics.

100 Top Ethical Companies for 2006

Read about Business Ethics magazine 100 top ethical companies for 2006.

The Southern Institute of Business and Professional Ethics

This is the official website for the Southern Institute which provides opportunities to learn and dialogue about ethics and its role in societal change.

Resisting the Seductions of Success

This is an article about ethics and leadership by Joseph L Badaracco, professor at the Harvard Business School, and author of the book: Questions of Character.

Institute for Leadership, Ethics & Character at Kennesaw State University

This link sends you to the website for the Institute for Leadership, Ethics & Character at KSU. The mission of the Institute, founded in 2002 is teaching, research and service. The Institute inspires, enables and promotes ethical conduct, decision making and leadership for the common good.

ChoicePoint: Making Mistakes, but Making It Right

Read about a company who made big time mistakes but took the high road, learning from their errors and making it right.

Innovation 

Organizational Change

Business Week's Top 25 Innovators

Take a look at the top executive innovators for such companies as Google, BWM, Apple, etc. as selected by Business Week, June 9, 2006.

3M's Seven Pillars of Innovation

Read about 3M Company and its ability to innovate like a start-up for nearly a century.

Top Innovative Companies

Business Week and Boston Consulting Group have compiled the best of the best in innovative companies.

CEO Creativity

Recent research about CEOs, creativity and chaos.

Are You An Innovator?

See what Forbes online says about innovators and innovative companies as companies that diversify their products and resources which, therefore, drives their strategy .

Strategy 

Thinking and Acting Strategically

Leonard Fuld on Competitive Strategy

This is an article from Chief Executive written by Leonard Fuld an author and expert on the use of competitive intelligence.

Knowing When to Hold 'Em and When to Fold 'Em

This article by The McKinsey organization provides a model for developing an exit strategy before you need it and for when you need it most.

Seven Surprises for the CEO

This is a summary of a great article from the Harvard Business Review on what you really need to know as a CEO. You will be surprised!!

Leadership Skills 

2006 and Beyond: What does it take?

• Innovation: CEOs may have gotten it right this time
  
  Every other year IBM surveys CEOs to find out what's high on their agendas. Honestly, I wonder about the value of this survey, because if CEOs were accurate about their hot button issues, they would, as a whole, be more successful. There would not be so much executive turnover, boards would not be so crotchety, there would not be so much dissatisfaction on Wall Street, and overall business profitability would be significantly higher across the board.
  
  Nevertheless, in this year's survey, the topic was business-model innovation. Particular, at top-performing companies, innovation was on the minds of CEOs and, surprisingly, collaboration with other companies was seen as crucial to their success.
  
  More, than ever before, CEO's are sensing the increased competitiveness of the business landscape and the strong relationship between innovation and survival. Innovation is the key to competitiveness. The connectivity of our society and the ability of technology to continue to meet our demands for connectivity at break-neck speed are becoming apparent to executives.
  
  For businesses to move forward, they typically need a catalyst. This catalyst comes increasingly in the form of technological advancement. More importantly, however, may be that many of these technological advancements are creating the capacity for businesses (and their computers) to go online and attain a global reach. These technological advancements are coming from global sources as well. We in the U. S. no longer have a monopoly on innovation. As a result, business solutions are coming faster and are addressing more complex problems. Opportunities are coming from all directions and businesses that most quickly seize these opportunities are going to benefit most.
  
  According to the IBM survey, CEOs get it. To them, innovation is the key. Their products must be innovative and their products lines must be diversified. Products must come to market quickly and businesses must deal with the ability of competitors to successfully copy their products with slight modifications and improvements. Competitors will react and react again. Sparing matches will go on endlessly. Unique only stays unique for a little while.
  
  But, isn't innovation hard? Of course, it's hard. Organizations are naturally resistant to change. It is human nature to become complacent. Organizations are organic and biological entities as well. Organizations tend toward complacency and must be organized and structured to resist complacency. The larger the organization, the larger the tendency of the organization is to dig in its heels.
  
  Unfortunately, strategic planning is often trumped by this natural tendency. Execution is sacrificed as a result. Increasingly, leadership is about combating complacency through collaboration and community. However, collaboration is hard enough to achieve internally. In our competitive, global business environment, organizations much learn to mix opportunity, people and technology together in a new way. They must create collaboration and community to achieve success. Internally, different ideas and opinions must be reinforced and fostered to push innovation forward. Externally, organizations must realize that innovation is dependent on the collaboration between companies with mutual or complementary agendas. Governments, non-profit agencies, and educational institutions are also important to innovation as source of research, information and expertise. Smart organizations will quickly get it right when it comes to developing partnerships with their competition. Breakthroughs will occur when competitors come together to share resources in the name of innovation and profitability.
  
  How do CEOs promote innovation? First, CEOs can lead through communication and championing the business case for innovation and continually adjusting the business model for innovation. The primary role of the CEO is to drive change and move culture forward, in order to change management systems and processes. Innovation will not occur without the CEO's strong commitment. The CEO must continuously and consistently encourage and give others the green light to innovate. People will look closely to see what the CEO messages contain and how consistently and coherently they come. As always, and more than ever, change comes from the top.
  
  Are CEO's really up for the challenge? We will see.
• Leadership and Character: The Missing Link to Success
  
  Ken Lay, Dennis Koslowski, Bernard Ebbers, Martha Stewart, Pete Rose, Mark McGuire, Rafael Palmeiro, Barry Bonds, Lance Armstrong.
  
  When we talk about leaders with character we usually talk about examples of ex-heroes who were once put on the pedestal and later allegedly fell; or evil villains who were unknowns before they were caught with their hands in the cookie jar. We typically can conjure up examples of what character is not. Rarely do we discuss character by looking at what it really is?
  
  How do you measure up?
  
  My mother once told me that adversity builds character. I don't disagree with that idea, but what always bothered me is that each time I encountered what I thought was adversity, I never really experienced any change in my so-called "character." What I did not really realize is that no one in my life had really defined character. So, how was I to know how to change or if I changed? Everyone brings up the word character, but have you ever heard a significant conversation that identified what the actual behaviors look like? Do we really know what we are looking for? How would we know if we saw it in others and ourselves? Can we identify it when it exists?
  
  More frequently, we talk about success. Most of the time success is much more valued than character. However, we don't really define success very well either. Many people equate success with fame and/or money. We tend to assume that success comes overnight and with luck. Few people have really identified the path to success. Some people identify the path to success with the acquisition of a set of useful, somewhat technical skills and knowledge, and the implementation of those very skills. But history has taught us that these are necessary factors but not sufficient for success.
  
  Others identify some factor or intangible related to intelligence, passion, enthusiasm, hard work, and self-initiative. Once again, important and relevant to success, but not really what I would consider the secret sauce.
  
  So, much is said about the importance of character and integrity, but I stress that we have not gone very far in defining what character and integrity really involves.
  
  COMPONENTS OF CHARACTER
  
  There are two dimensions of leadership character: how one handle's oneself and how one handles others. As far as handling oneself, if I were to identify the components of leadership character, one would have to start with the quality of decision-making. Decision-making must have integrity. Integrity is defined as the adherence to a code of values and involves utter sincerity, honesty, and candor. I would include the descriptors of consistency, sustainability and credibility. One must display the ability to act and behave in a consistent, sustainable and credible manner.
  
  They rely on facts and do not use labels. They seek solutions and refuse to let problems fester. They take responsibility, show initiative and hold themselves accountable for their actions while holding others accountable for theirs.
  
  They display great confidence (not necessarily self-confidence) in that they seek and expect a positive outcome. They can envision success and do all that they can do to affect the outcome. People with character are able to keep the big picture in perspective. They are systemic thinkers and have the long-range view. They understand that all decisions and actions have implications for the future and they are very thoughtful in their decision-making. They do not seek short-term solutions. They understand the importance of looking at the interdependence of people and things.
  
  Character also involves emotional intelligence. Those with character remain calm even in crisis. They control their anxiety and assist others to control theirs. They typically reflect carefully before acting. They demonstrate humility and maintain an open mind. They are comfortable with vulnerability and understand the fallibility of all humans.
  
  Character requires courage. It takes the "guts" to do the right thing when people are looking, and, more importantly, when no one is. It takes the ability to be able to handle bad news and negative feedback. Character is about talking with people, not about people. It requires the ability to look consistently at yourself and others right in the eye without blinking.
  
  Also important to great leaders is the notion of behaving and treating others with respect. This respect involves a strong sense of community, and a lack of adversarial, "us and them" thinking. This sense includes a strong and consistent regard for others and a strong value of others' lives. Reciprocity is also vitally important to character.
  
  Character involves empathy for others and the keen ability to listen effectively. Those with character avoid the blame game and take responsibility for failure and give credit to others for successes. They refuse to look for a scapegoat and admit fault when appropriate.
  
  So, if you and others in leadership positions can display these behaviors and perhaps more importantly, expect the same of others, you may be well on the way of developing "character." I am going to be working on this and try to make my mother proud.

Contrasting Changes at the Top: January 3, 2007 

Recent CEO Transitions

On January 3, 2007, Home Depot surprisingly announced that Bob Nardelli had resigned as chairman and chief executive officer, effective immediately. He'll be succeeded by Vice Chairman Frank Blake, a fellow GE alum. Nardelli, who took the job at Home Depot in 2000 after being passed over to succeed Jack Welch at GE, was often both criticized and praised for changing the culture of a thriving organization. Over time, his reportedly excessively autocratic style of management and enormous salary, was seen to hinder the company. His limited strategic vision and lack of consensus building skills were seen as liabilities.

He has been more recently criticized for a huge bonus pay package while simultaneously being unable to prevent a Home Depot stock collapse. Directors defended his pay, pointing to overall strong sales, fat profits and generous dividends. That didn't satisfy investors. In reality, the biggest reason for his exit was that he became a focus of investor activism.

Now the fight will center around Mr. Nardelli's golden parachute. Under the terms of his separation agreement, he'll walk away with more than $210 million!! Showing Mr. Nardelli the door won't make Home Depot's problems disappear. Competitor Lowe's has eroded Home Depot's market share and many feel that customer service has suffered dramatically under Nardelli. As long as he was still around, investors seemed unlikely to throttle back their grievances. However, today, they were eager to dance on his grave, sending Home Depot shares up 4%.

Conversely, also on 1/3/07, EarthLink's former top executive, Garry Betty, died of cancer complications just several weeks after stepping down due to the cancer diagnosis.

Garry Betty was 49 and had worked at Atlanta-based EarthLink for a decade. He most recently had overseen the company's attempts to remake the business, but he took a leave of absence due to his rapid decline in health.

"Garry was an extraordinary business partner and friend, and he will be sorely missed," Sky Dayton, EarthLink's founder, said. "Garry was at once the general you wanted at your side in battle and the friend you wanted to celebrate with when the war was won."

Harnessing CEO Power 

Corporate Governance and Shareholder Control

• The recent resignation of Home Depot chairman and CEO, Robert Nardelli, signals an appropriate use of power by activist shareholders. It also is a strong indicator that boards of directors are taking their governance responsibilities seriously. Mr. Nardelli was pushed out through the efforts of Ralph Whitworth of Relational Investors, a fund that invested heavily in Home Depot stock and Kenneth Langone, a co-founder and director on the board. As a result of Nardelli's stanch refusal to accept a recommended pay cut, the exasperated board had no choice but remove their support of their CEO. Mr. Langone, who has served on the boards of GE, Yum Brands, and the NY Stock Exchange, has had the reputation of paying his CEOs well, however, it became obvious that the Home Depot was damaging its reputation by the growing dissatisfaction in Nardelli's compensation and the performance of it stock. Mr. Langone's actions made it clear that his fiduciary responsibility was with the company and not its CEO.
  
  The hiring of Nardelli in 2000, for which Mr. Langone was instrumental, was heralded as a victory for the Home Depot. Nardelli's 2000 compensation package was filled with lucrative perks and guarantees, but was not highly scrutinized or criticized at the time.
  
  Early in his tenure, Nardelli did have to deal with the criticisms from employees that he was trying to change things that didn't need to be changed and fix things that were not broken. Nardelli lost most of his executive team through resignation.
  
  Throughout Nardelli's tenure, Langone took an active role and communicated with him regularly. However, recent shareholder dissatisfaction and Nardelli's arrogance, distance, obstinance, and stubbornness lead to Langone's ultimate lack of support.
  
  Governance reforms are working. Activist shareholders have recently been able to successfully push out CEOs at Pfizer and Sovereign Bank. These activists have amassed power through accumulation of wealth, knowledge and relationships along with recent changes in voting regulations and legalities allowing for nominations of one or two directors to the board. Recently, major shareholders have been emboldened to vote against management and not just rubber stamp without thought. Shareholders are now able to more easily challenge directors nominated by companies. Companies now have no choice but to go along with activist suggestions.
  
  New governance rules have set a new tone. The issues activists address are not different than before, they just have more power and behave more aggressively and more effectively. Let us use the Home Depot example as a model for effective activism and proper board governance.

There is A Way! 

The Simplicity of Leadership

"If you want to build a ship, don't drum up the men to gather wood, divide the work and give orders. Instead, teach them to yearn for the vast and endless sea."

- Antoine de Saint-Exupery

There is a way to do what is right.

There is a way to tell the truth.

There is a way to make integrity and character as natural as breathing.

There is a way to inspire people.

There is a way to anticipate problems and fix them before they arise.

There is a way to treat people with respect.

There is a way to be strong and humble.

There is a way to listen and learn.

There is a way to look people in the eye.

There is a way to shake hands.

There is a way to talk about "what if" so that it becomes "what is".

There is a way to work hard and never look back.

There is a way to put yourself into everything you do.

There is a way to engender trust.

There is a way to innovate and stay the course.

Like it used to be.

The Implosion of a Company 

Enron: Lessons in Leadership

• Beware the executive who attributes the failures of the company to bad publicity and lost market confidence.
• Beware the executive who has a long list of people to blame for the demise of the company that does not include him/herself.
• Beware the executive who ignores multiple people in the organization who repeatedly warn about questionable accounting practices and faulty profit statements.
• Beware the executive who expects profits to magically appear for no other reason than because he/she thinks they should.
• Beware the executive who comes up with target goals, projections, and sales revenue figures without understanding how the business actually works.
• Beware the executive that says that they have not ever done or said anything wrong.
• Beware the executive who is unable to adequately explain the underlying economics and rationale for their business decisions other than to hide or alter the truth.
• Beware the executive that says that he was unaware of the whereabouts of millions of dollars of the company's money.
• Beware the executive who comes up with the rationale for business goals based on the capital investment already made and the amount of people hired rather than understanding the operational and executional details of the business.
• Beware the executive who spends an inordinate amount of time discussing accounting techniques designed to hide bad news or artificially inflate profits.
• Beware the executive who frequently asks others to work up a concept or to "come up with some numbers" and bring it to him. Those executives will take all the credit and none of the blame.
• Beware of a leader who one minute can't let anyone else in the company make decisions and the next minute has no idea what is going on in another unit of the organization.
• Beware the executive who says they are striving for a "work/life" balance. It usually means they are already burned out and are performing sub-optimally.
• Beware an executive who comes back to work quickly, after saying that they left for family or work/life balance reasons. It usually means that they have not resolved any of the issues that they left for in the first place.
• Beware the executive whose all out blitz for wealth, power, and control have left their marriage(s) and family in a shambles.
• Beware the executive who lacks self-discipline and finds him/herself spending large amounts of money on lavish personal items and who spends considerable time drinking and partying.
• Beware the executive who caves in to excessive demands of others or who does not discipline others in the company who consistently make poor decisions or display questionable behavior.
• Beware the executive who is widely known to be easily upset, beset by periodic meltdowns, expressions of bitterness, and sarcasm.
• Beware the executive who says someone else "does not get it." It that really means is that he or she lacks the skills and the commitment to communicate effectively with that individual.
• Beware the executive who believes that he/she can run a large company without any problem. How does anyone get the idea that he or she or someone else has the leadership skills, personality characteristics, temperment, and emotional make-up to run a large company like Enron? What criteria is used? Where does "even-keeled", "integrity" and "character" fit? Why do we look for charisma and salesmanship first?

The Successful Entrepreneur 

So you want to be one?

• The Entrepreneur's Quiz
  
  1. I am very comfortable with taking risks and taking the responsibility for the consequences.
  2. I consistently work hard and long hours. I often have to be dragged away from work by my family and friends.
  3. I refuse to get sick.
  4. I don't like being told what to do.
  5. I get bored easily.
  6. I find that I can do the job better than anyone else.
  7. I am at my best in the face of adversity and challenge.
  8. I am very comfortable working alone for extended periods of time.
  9. I have am most comfortable when I am getting things done.
  10. I prefer individual sports to team sports.
  11. I get frustrated when I am in situations in which I am not directly affect the outcome and pace of what is going on.
• The Profile of the Successful Entrepreneur
  
  So you think you want to build and run your own business? Currently, there is increasing interest within the business community in the characteristics of a successful entrepreneur. In reality, no two entrepreneurs are exactly alike. While no one has yet found the perfect entrepreneurial profile, there are many characteristics that seem to show themselves on a regular basis. The characteristics are listed below. Read about the profile and then take the quiz below and find out if you have what it takes.
  
  Calculated risk taker
  Good health and physical resilience
  Totally committed; Works long hours
  Results-oriented; Disciplined in setting goals
  Heightened understand of all aspects of the business (product, promotion, sales, etc.)
  Exerts self-control
  Highly responsible and accountable to self for failures and setbacks
  Innovative, able to tap into a market need
  Strong and consistent self-confidence
  Sense of urgency and impatience, drives self and others
  Quickly comprehends complex situations
  Identifies effective solutions quickly
  Objective and analytical; Realistic acceptance of what is
  Focus on accomplishments rather than relationships
  Need for control and authority
  Emotional stability and tenacity in the face of setbacks

Tales of Entrepreneurship 

Learn from the diverse successes of others

An article from Hispanic Business on the path of a successful serial entrepreneur

Read about Frank Huerta who has started two companies and already sold one to Symatec for a cool $135 million.

Business Acumen and Dyslexia

This New York Times article from 2007 discusses the possible links between entreprenuership and dyslexia.

Power 

Evil or Good

The Quiet Leader

This Harvard Business Review link discusses the real day-to-day work that truly effective leaders do.

LBJ: The effective use of power

This link provides you with a summary of a Harvard Business Review article about how President Lyndon Johnson used power in, perhaps, the most effective way of our generation.

The Narcissist as Leader

Another brilliant article about Leadership from the Harvard Business Review archives. Learn about power and personality.

Team Leadership 

It isn't about just you.

Managing Stars

This Harvard Business Review article from 5/14/07 discusses the secrets of managing stars (which is the same way you manage anyone else) by fostering teamwork.

Coach K vs. Bobby Knight

This Harvard Business School article discusses leadership style differences between two of the most famous and successful college basketball coaches of our time. The key question is the classic Machiavellian query: "Is it better to be loved or feared?"

Transitions: Taking Over from Another Leader

This Wall Street Journal online article from 5/11/2006 discusses how to get some quick and effective wins as a new CEO taking over from the old.

"Nobody's Perfect......"

This article from the Wharton School of Business provides a story about Siemens CEO Klaus Kleinfeld discussing his views on leadership, globalization, and teams. The link provides text as well as audio.

The Google Way to Have Meetings

See how Google gets things done at their meetings.

Communication 

Great leaders understand communication

The "how to" communication guide for leaders

This HBS article is a great article on communication through dialogue rather than debate. Great tools to talk like the great leaders do.

Presentation Mistakes

Take lessons from the best executives about their presentation skills and tips from an article from Business Week online.

More Presentation Mistakes

Take a look at this slide show from Business Week online about presentation mistakes. Great stuff!!

Guide for Corporate Buzzwords

If you know what is good for you and your leadership credibility you will drop the buzzwords and get real with your communication. Your employees are on to you!!!! Here is the latest from the Wall Street Journal on corporate buzzwords.

Thanks to Nike 

How NOT to Hire a CEO

• We are seeing another classic case of an outsider being unable to overcome the (in this case, insular and competitive) culture of an organization. Interestingly, Mr. Knight reported that Nike had been operating at 80 percent efficiency under Perez, despite generating record sales and earnings. Knight said that strategic alignment about long-term growth was an issue between the board and Perez. Obviously, Knight and Perez could not agree on the way to grow and sustain the company. Knight said, "It was too much a difference in industries, too much a difference in companies, too much a difference in brands and too much a difference in culture." Knight originally chose Perez because of his experience marketing multiple brands of products. Nike is a very unique culture, originally built around products that appealed to runners and other athletes before it began expanding to a broader consumer base and more diverse markets. Obviously, being an outsider unfamiliar with the culture and Nike's long standing relationship with retailers was Perez's undoing. Evidently, Mr. Perez upset Nike insiders by visiting its biggest retail partners, something that had never been done before at Nike.
• So, what are we to learn from the Nike debacle? What could have been done to prevent such a disruptive, costly and embarrassing firing? The secret lies not in the details, but in what was apparent from the beginning. According to insiders, it takes 20 years to become an insider at Nike. Did Nike not know what kind of culture it has and what strategic direction it was taking? Was it not clear that Perez only fit one important hiring factor: market diversity and no other? Hindsight is 20-20, but was it not obvious that the fit between Perez and Nike was minimal at best? Culture is the key. Fit, particularly between outsider and the organization is crucial. Any successful executive transition at Nike must happen fast and colleagues must be won over quickly. What was Mr. Perez track record with executive speed and agility? Until business understands the importance of culture and fit in the hiring, companies will continue to make bad decisions and experience embarrassment after embarrassment.
• What about Mr. Knight's inability to make the transition to the Chairman role and leave the CEO role to Perez? Is it only Mr. Perez's performance that is at issue here? Who was paying attention to the organization dynamics? Nike values innovation and the sanctity of the Nike brand. Mr. Perez was reported to be in slow to adapt. However, who was slow to adapt to the need for Mr. Perez to reach out to retailers?
• Nike has multiple examples of outsiders being unable to crack the culture code. In 1999, Ellen Turner, hired from Kinko's to be Nike's Chief Marketing Officer, lasted six months. George Porter, who came from Levi Strauss, to run Nike's American operations, lasted eleven months. Perhaps Mr. Perez was not the right guy for the job, but who was assessing the organization?
• Most telling is the replacement of Mr. Perez with Mark Parker, a 25-year Nike veteran who is said to be the ultimate insider. Well, what is a year lost in business anyway?

Leadership Resources 

Books, Video, etc.

"Leadership and learning are indispensable to each other."

--John F. Kennedy

Just what you need to refine your leadership skills

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Team of Rivals: The Political Genius of Abraham Lincoln by Doris Kearns Goodwin

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Good to Great: Why Some Companies Make the Leap... and Others Don't by Jim Collins

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The 21 Irrefutable Laws of Leadership by John C. Maxwell

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The First 90 Days: Critical Success Strategies for New Leaders at All Levels by Michael Watkins

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Successful Manager's Handbook: Develop Yourself, Coach Others by Kristie J. Nelson-Neuhaus

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The Five Dysfunctions of a Team: A Leadership Fable by Patrick M. Lencioni

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The Leadership Challenge, 3rd Edition by James M. Kouzes

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Primal Leadership: Realizing the Power of Emotional Intelligence by Daniel Goleman

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First, Break All the Rules: What the World's Greatest Managers Do Differently by Marcus Buckingham

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Beyond Basketball: Coach K's Keywords for Success by Mike Krzyzewski

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The Fifth Discipline: The Art & Practice of The Learning Organization by Peter M. Senge

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Wooden on Leadership by John Wooden

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Servant Leadership: A Journey into the Nature of Legitimate Power and Greatness 25th Anniversary Edition by Robert K. Greenleaf

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The Essential Drucker: The Best of Sixty Years of Peter Drucker's Essential Writings on Management by Peter F. Drucker

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Lyndon Johnson and the American Dream by Doris Kearns Goodwin

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Please contact me at:

Luis F. Valdes, Ph.D.
Founder and CEO
PerformanceVertical Consulting
404-357-7335

Email: luisfvaldes@yahoo.com

AnneLark16 Hi! Your lens is very informative! Apart from good leadership skills, entrepreneurs also need good management skills to efficiently run their business. Store inventory need to be meticulously sorted and it's a relief that there are many goods management software that aid in this task. Check out the link to learn more about inventory management. Thanks! Posted April 22, 2008

TomATS Great material. I've added your lens to my lensroll. Posted April 19, 2008

GoldenAngel1 Hi! awesome lens 5 Stars from me. visit my lens at http://www.squidoo.com/7dollars-shorturl, i think this will be very useful. Posted September 03, 2007

Gordon Sherman

Good compilation of LEADERSHIP thoughts of certain proven leaders and demonstrated the variance in leadership styles that have worked for certain personalties, but one cannot just copy some other leader's style and character. It is more difficult than that as I'm sure you realize.Mystyle might help.

Posted April 11, 2007

Robert-Palmisano GOOD JOB!! Very easy to navigate, pages load quickly, great categories. I added your site to my favorites With LGT Free Marketing Tools Posted February 26, 2007