The following week, we held a meeting with all the regional division CFOs and Dale asked me to present the new policy. I started out explaining the policy but soon was lost in a free-for-all as the division CFOs also disagreed with it, making many of the same points I had made to Dale privately the week earlier. Finally, I acknowledged that I really agreed with them and that I didn’t think the policy change was a good idea. The discussion continued until finally Dale stepped in and said he heard and understood the disagreements but that he had made his decision and it was final—we would go forward with the new policy.
After the meeting was over, Dale asked to see me privately in his office. I prepared myself for the worst. Surprisingly, Dale seemed calm. He asked me whether I had seen the movie The Godfather. I said I had. He then asked me to recall the scene where the Don (Marlon Brando) and his eldest son, Sonny, were meeting with the other families, discussing whether they should get into dealing drugs. The Godfather was firmly against it, but Sonny questioned his father during the meeting and clearly showed to the other families he disagreed with his father’s position. Of course the other families saw the dissension and attempted to “whack” the Godfather so that they could cut a deal with Sonny and get into drug-dealing.
The moral of the story, Dale said, was that disagreement and debate within “the family” is necessary and appropriate but dissention outside “the family” shows weakness to the competition. He wanted my views and independent thinking, but once a decision was made, we needed to work together and be united in implementing it. Otherwise, it just wouldn’t get done.
This story illustrates how leaders should act. They should surround themselves with people who are not too timid to give their independent views and opinions, people who are open and candid, not a bunch of yes people who agree with everything the leader says. Within GE we call it constructive conflict. Then, just as importantly, when a decision is made, in order for it to be effectively implemented, the leadership team has to be fully supportive and engaged to sell it throughout the organization.
A leader needs to have the confidence, courage, conviction, and vision to lead. Leadership is not necessarily a popularity contest. Building consensus through success is more important than sensing what direction the wind is blowing and following it.
Finally, I’ve had the opportunity to observe firsthand some great investment styles from some of the real investment pros of my generation, people like John Angelo, Lee Cooperman, Larry Fink, Bill Grant, Ken Langone, Julian Roberston, Art Samberg, and Fayez Sarofim. But probably the most influential investor I’ve known—certainly the most eccentric—is a guy whose advice and counsel I seek out every day. His name is Bernie Feshbach and to me he’s been the lost and found of Wall Street. Bernie was a World War II Purple Heart award winner who was wounded at Okinawa. He grew up in the Bronx and after the war tried his hand at pig-farming, oil wild-catting, selling used cars, selling women’s dresses, and working as a stockbroker. He’s very well traveled and very well known throughout financial circles; he always wears his bow tie and his designer suits; and he knows all the maître d’s and concierges at the best restaurants and hotels all over the world. But more important, he knows where all the hidden closets are on Wall Street and where all the bodies are buried. Bernie’s about to celebrate the fortieth anniversary of his fortieth birthday later on this year and as such has experienced more market cycles than anyone I know. Every deal I ever did with him or recommended by him was a success.
But Bernie’s real value to me can’t be measured by the deals we did or didn’t do. It’s my having the ability to pick his brain. Bernie’s never been shy in voicing his opinions to me or of me, and his thoughts are incredibly valuable. Everyone needs a truly independent sounding board, preferably one that knows what he’s talking about and without a personal stake in the outcome. Every business leader needs to find a Bernie Feshbach.
All of my experiences with my mentors have driven me to surround myself with the most talented and goal-oriented people with the highest integrity that I can find. I try to counsel them, advise them, teach them, and be a role model for them, but not micromanage them. To quote the person who most influenced the early years of my life, my mother, Edna May Strodthoff, when describing how she raised her children: “I gave them roots, and then I gave them wings.” Successful business leaders should follow the same simple advice.
Copy successful people
Josie NATORI
Founder and CEO of Natori Company
The poet Nikki Giovanni once said, “Mistakes are a fact of life. It’s the response to error that counts.” I couldn’t agree more. I have always been a risk taker and a gambler at heart, and if you operate that way, you screw things up from time to time. But I don’t spend a lot of time feeling regret. I’ve consistently learned from my mistakes, and to me, even if they’re costly—and some of them have been—if I learn something new, I consider it a positive experience.
Learn from your mistakes
Marilyn Carlson NELSON
Chairman and CEO of Carlson Companies
Perseverance—never, ever giving up—is the final line of our Carlson Credo, our family’s guiding principles: “Whatever you do, do with Integrity. Wherever you go, go as a Leader. Whomever you serve, serve with Caring. Whenever you dream, dream with your All. And never, ever give up.”
My own personal and business life is rife with instances where hanging onto a plan, a hope, or a dream—in some cases just a little longer than one’s competitors—resulted in success. After all, it’s not the final blow that breaks the rock, but all the others before it. This approach helped my father build our business in sixty years from an unknown trading-stamp company founded on a borrowed $55 into a global organization that nets $20 billion and operates popular brands like Radisson hotels, T.G.I.Friday’s restaurants, and Carlson Wagonlit Travel.
Today my father is gone, but his advice lives on, inscribed on a bronze statue for which he posed on the occasion of our company’s fiftieth anniversary. The night before casting, the sculptor called him and asked him what advice he would like to leave for future generations. The sculptor wanted him to write it on the back of the statue for all time. Without hesitation, my father wrote the following: “Illegitimi non Carborundum,” which is Latin for “Don’t let the bastards grind you down.”
Illegitimi non Carborundum
Don NIGBOR
Chairman and CEO of Benchmark Electronics, Inc.
More than twenty years ago, when I was a young department manager, my mentor told me this: “In a given situation, do not rely on a single solution to solve a problem. Develop a parallel path that could be used in the event the original solution does not come to bear.”
Keep your options open
Jim O’CONNOR
Chairman and CEO of Republic Services, Inc.
Once when I was negotiating a business deal, the person with whom I was negotiating gave me some straight, commonsense advice. He said, “Jim, don’t worry about my money, worry about yours.”
Mind your own money
Gene O’DONOVAN
President of Montana Mills Bread Company
“I follow the money. That all I care about, that’s what I do.”
I heard these words in a gangster movie or documentary, straight from the boss’s mouth, and in raising money for my company and then selling it to Krispy Kreme, I followed this valuable advice.
Follow the money
Nancy OLASKY
President of Olasky and Associates, Inc.
When I took over my father’s CPA business upon his retirement at seventy-eight years of age, he told me to always remember this:
“Those who say the least have the most to say, while those who have nothing to say are the ones who talk the most.”
I found this to be very true, not only in business but in our everyday lives.
Keep it short, and to the point, and you’ll grab everyone’s attention. When you babble, people beco
me quickly disinterested.
Keep it short
Jeffrey P. ORLEANS
Chairman and CEO of Orleans Homebuilders
Sometimes it takes only the simplest wisdom to steer you on the right course.
At a time when I was running two different home-building companies that were a thousand miles apart, I had a talk with my friend Ed Snider. As the original owner of the Philadelphia Flyers, Wachovia Spectrum, and Wachovia Center, to name a few, Ed knows a thing or two about business. He saw me struggling to run the family business in Philadelphia started by my grandfather and the Florida company started by my father. If I could have, I would have split myself in two to manage them both. What I lacked was precisely what I had been to my grandfather for years: a management “team” onsite. Yes, a one-man team, but a resource that freed my grandfather to do what he needed to do.
“Get yourself the right people—the best people,” Ed Snider told me.
The lightbulb went on and, thanks to Ed, I had my “Eureka!” moment. I understood for the first time that even the greatest entrepreneur isn’t going to get ahead without a competent organization behind him. A one-man band can play out of tune, and creativity is easily extinguished when a team isn’t there for backup. I needed to find the right team.
It wasn’t easy. It took some trial and error. I wouldn’t settle for a good management team. I demanded the best one.
Years later, I look back and realize how profound Ed Snider’s “simple” advice was.
And I have never, ever regretted taking it.
Get the best people. They’ll do the best job.
Vincent F. ORZA, Jr.
Chairman and CEO of Eateries, Inc.
The guy on top of the mountain didn’t fall there!
Success comes from hard work
Guy OSEARY
Copartner and CEO of Maverick Recording Company
Four people have given me sound nuggets of wisdom that have helped me keep business in perspective.
When I was nineteen, I complained to David Geffen about some other people in the entertainment business who were making a lot of money and who I didn’t think deserved it. David turned to me and said, “You need to be a racehorse. Do you know what racehorses do?” I answered, “They race.” David replied, “No, they wear blinders! If they looked to the left or right, they would lose. Don’t look to the left and don’t look to the right. Wear blinders and race your own race!”
One day, when my Kabbalah teacher, Eitan Yardeni, asked how I was doing, I told him I needed a break. I was thoroughly exhausted, overwhelmed, and overworked. Eitan then said, “Do you know what you should do now?” I thought he was going to encourage me to take some time off. But instead he replied, “No, go work harder! Be careful what you ask for because you may get it.” Eitan was right. If I ask for a break, God may hear me and I may get one—a long one. I took this advice to heart and started to work even harder.
At lunch one day with my friend Ron Burkle, I shared with him my disappointment over a particular investment and what a big mistake it turned out to be. He told me, “It’s only a mistake if you haven’t learned anything from it.” It’s such a simple comment, but it helped me move on and not beat myself up for the loss.
And finally, I was chatting with my best friend Anthony Kiedis one day, and I asked him how he was doing. He replied, “I have a roof over my head, a fridge packed with food, and good health. How bad could things be?” It may sound obvious, but it’s something I find myself continually taking for granted. I consider Anthony’s comments a reminder of how blessed I am.
Never lose perspective
Charlotte VM OTTLEY
President and CEO of C. Ottley Strategies, Ltd. (COS)
Minding your own business has many different meanings, but the bottom line is that you can’t take care of anyone else until you have your own business in order. The mastery of minding your own business lays solely within you. Over the years, I have found that regardless of the business or social environment, a few statements about Minding Your Own Business have been invaluable.
Take care of your own affairs or someone else will do it for you at your expense.
Don’t go looking for trouble, you will always find it.
While you are paying attention to someone else’s affairs, who is minding yours?
Revenge is very time consuming and draining and once realized has short-term fulfillment.
Be true to yourself, take pride in it, and share it.
Keep your business to yourself by being a better listener than a talker.
Mind your own business
Herbert PARDES, MD
President and CEO of New York–Presbyterian Hospital
I was told to always bring your superiors good news. The fact that you bring good developments and outcomes to the people to whom you report serves both your interests and theirs. Implicit in this advice is that a good leader takes vicarious pleasure in the successes of his or her staff. Staff, for their part, then feel a generosity on the part of the people to whom they report, which encourages them to do good things that will be appreciated by their superiors. Leaders who conduct themselves in this way gather around them people who are successful and strong rather than people who are weak and threatened.
Also, I was encouraged to welcome criticism and suggestions for ways of improving, to look at them as opportunities to inform me and expand my perspective on issues. This advice served me well—what might be seen as critical or unpleasant can often be turned around to be highly constructive. For example, complaints from people are often dismissed on the assumption that the complainers will be unreasonable or vitriolic if contacted directly. I have found just the opposite. When the senior leader of an institution responds to people who are complaining often, it impresses other people and turns critics into friends.
Share with your superiors and learn from criticism
Richard D. PARSONS
Chairman and CEO of Time Warner Inc.
Do what’s right.
Take the high road
Jerry PERENCHIO
Chairman and CEO of Univision Communications, Inc.
Lew Wasserman at MCA/Universal told me this:
Always take the high road and never lose your sense of humor.
Do good. And laugh.
Peter J. PESTILLO
Chairman and CEO of Visteon Corporation
The most efficient investment is in people, not machines. Give them the tools, the resources, and the training required to do their job. Clearly communicate the tasks you expect them to perform and then presume they will do those tasks. If you have accomplished this, you will eliminate the expenses of auditing, review, inspection, and supervision.
Invest in employees
Frederick WARBURG PETERS
President of Warburg Realty Partnership, Ltd.
My mother recalled my grandfather, who was the CEO of Abraham & Straus department stores, saying to her, “You should never permit your business to pay for your personal expenses. There is more to business than money; you have to strive to live your life as an honorable person. My business has been extremely fair to me, and I need to be fair in return.”
These words have had a profound impact on me. In my own career, I wanted to continue the tradition of family integrity that my grandfather had so clearly embraced. As a result, I have never let my company pay for a meal, a taxi or limousine, or anything else that was not clearly business related. What I can’t afford, I don’t buy. I can’t think of a better way to honor my grandfather’s memory.
Keep the business away from the personal
James PIGNATELLI
Chairman, President, and CEO of UniSource Energy Corporation
1. Don’t bullshit me and I won’t bullshit you, and together we might make the right decision.
2. There are only two bad decisions: (a) the decision not to make a decision when there is time to make a decision and (b) a decision not to change a decision when you know th
at the earlier decision was wrong.
3. A decision made with perfect information is too late.
Simply make the best decision you can
Charles P. PIZZI
President and CEO of Tasty Baking Co.
Ask your employees, “What do you think about our business?”
Talk to the workers in the trenches
Steven PLOCHOCKI
CEO of InSight Health Corporation
Growing up as a young boy in a working-class neighborhood in Detroit, my first role model was my father, a survivor of the Nazi concentration camps. Never earning more than $25,000 to support a family of five, he taught me early on about work ethic and values. He also showed me how the human spirit could prove to be incredibly powerful, when properly motivated and focused.
It was these humble beginnings that set the stage for the way I would later manage business and motivate employees. While growing up, I gained a distinct understanding for people spanning all walks of life, and I knew there would be no shortcut to success. I also knew that whatever I wanted to achieve professionally had to be earned through hard work, dedication, and by developing an affinity for the people with whom I worked.
As an avid athlete, I played a variety of sports my entire life—from grade school to college. I believe sportsmanship significantly contributed to my professional success and armed me with many of the tools necessary to head a large corporation. My passion for sports and my drive to win taught me the value of teamwork and setting and attaining goals. There could have been no better preparation for transitioning from the playing field to the health care field.
The Way to the Top Page 9
