Confronting Reality

Without a trace of irony, FORTUNE magazine excerpts the book Confronting Reality in the Oct. 18 issue. Written by Larry Bossidy, the former chairman and CEO of Honeywell, and corporate guru Ram Charan, it looks at the reasons for business successes and failures, and comes to the conclusion, "The greatest consistent damage to businesses and their owners is the result not of poor management technique but of the failure, sometimes willful, to confront reality."

Hmmm. Got me thinking about our first "CEO president," George W. Bush. Sound familiar?

The most common causes of such failures are filtered information (leaders aren't getting the information directly from the source, or the information is distorted by people pursuing their own agendas).

By that, I don't think they mean "stovepiping." Or Ahmad Chalabi.

[...]

There are lessons here. First, in a time of crisis it's absolutely essential to understand the environment as it is now and is likely to be, rather than as it has been...Second, you need to thoroughly refresh your understanding of your customer base before you decide what actions you're going to take. Third, you must ruthlessly assess your organization: Does it have the talent and attitude need to drive the required changes? If not, what must you do to be sure you have the right people deployed? Fourth, you must be rigorous in measuring the progress of your turnaround, keeping an eye out for any sign of slippage from the chosen path.

Finally, and above all, approach any crisis without preconceptions: this is the time when relying on the past or on conventional wisdom can lead you rapidly to disaster.

You mean, playing out the Cold War doesn't work anymore? I'll be damned.

[...]

Mostly, you need to converse. What could be simpler? Yet we see so many people who don't do it -- that is, they don't do it proactively, by asking questions, listening, and keeping their minds open about the answers. You do it not just in routine meetings, but also when you're speaking with people from different parts of the business...You engage others. What are they thinking about? What changes do they see, what opportunities? What worries them? While you're conversing, your mind is unconsciously and automatically processing: "He sees this thing differently than I do. I respect his judgment, so what am I missing?"

"Hmmm," George might have thought, "all my daddy's guys keep telling me this is going to be a mess; maybe I should talk to them. Nah, Dick worked for daddy too and he says it's ok. Bring em on."

All this takes leadership. But the traditional processes most companies use for discovering people who can confront reality are not very useful. The leadership traits that are important now and likely to remain so, as long as the world remains complex and fast-changing, include the qualities that comprise business savvy -- in particular the ability to see the totality of a business through the lens of the business model -- and the intense curiosity that drives the need to know.

Hmmm, which candidate for president does that describe?

George Bush is a failed CEO. Once again. And he's taking our company down with him if we don't act soon.