Value Chain
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“LEADERSHIP,” writes the historian James MacGregor Burns, “is one of the most observed and least understood phenomena on earth.” Indeed, there are untold volumes on leadership. Why, then, bother to write still another book about it? Because, although ours is a business dominated society, we have so little detailed discussion of business leadership. There are business chronicles, stories of great corporations and their achievements, some exposйs, and other vehicles of self-justification. There are descriptions of ends attained, of outcomes. There are news reports of spectacular executive success. But nowhere is there specific documentation of the characteristic behavior of business leaders. Nor is it easy to define what a business leader is. The business world is an arena for achievers. Some are great financial manipulators. Some are spectacular marketeers. Some are technical innovators. Some build and rebuild communities. Are they leaders? They are executives, perhaps, but not always leaders.
The minds of CEOs are, in aggregate, a tremendous center of power in society. Upon these minds – how they tick, how they prioritize, how they view the vectors of change depends on the transmission of know-how, technology, capital, and jobs. In addition, as globalization increases, the socioeconomic impact of their thoughts becomes all the greater.
Gone is the day of the stern looking, tight lipped, antisocial dark suit who sits positioned in the large corner office secured by twelve foot walnut doors with gold handles. Todays workers demand involvement and interaction from upper management, no longer do the baby boomers see fit to have P and L figures discussed between upper management only. In order to be a successful CEO in todays society you must be able to demonstrate an understanding of the dynamics of value enhancement, to be aware of opportunities and to exploit them. The future and success of the company depends on how you view the company and how your employees view you. A CEOs understanding can have no limits, adapting to change is just a small step in dealing with the organizations future. When we discuss change we have to keep in mind that, the largest of corporations feel the pressures of change on a global level, competing with our global trading partners such as Japan, China, and Europe. In order to be global a corporation must be able to compete on a worldwide basis and to do this managers must be able to think globally.
Todays CEO is required to come out of his designation ambit. Sociologists argue that when large organizations falter and fail it is because of bureaucratic rigidity, which Marxist economists contend is the result of capitalistic oligarchic power. Such structural explanations attribute failure to the way the business is organized or the economy is managed. But we know from military experience that while one battalion might have high morale, few casualties, and great combat success, a comparable battalion might have quite the opposite. The same is true of comparable manufacturing plants in the same corporation. Other factors being relatively equal, the most significant difference between one organization and another is neither sociological nor economic. Rather, it lies in a leadership style that gives direction, evolves structure, and allocates power. That leadership style is most relevant to much of contemporary management when it can be viewed in the context of a highly structured organization with established traditions and a long history of how things are done. Since entrepreneurs have their own unique psychology, we should be in interested in those who assumed leadership of ongoing businesses.
To some extent it can be described that the finance departments are the best place to train future CEOs, but, in my opinion, there are other areas where a CEO could better grow such as HR and the like. As a matter of fact, for a crucial person of any organization or company it is necessary for a CEO to be acquainted with all departments of the organization. Merely restricting CEO into finance departments would not help him or her know all remaining departments of the organization properly. Thats why, in its training session, a CEO is supposed to pass his time in all departments of the organization or company be it finance, HR, public relations, customer service, sales, marketing and all that.
Dynamic bean counting
To understand why CFOs are more frequently getting