Where Have All the Leaders Gone?
Page 1
Also by Lee Iacocca
Iacocca: An Autobiography
Talking Straight
SCRIBNER
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Copyright © 2007 by Lee Iacocca & Associates, Inc., a California Corporation
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Library of Congress Control Number: 2007005179
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For my grandchildren
CONTENTS
Acknowledgments
PART 1: WHERE HAVE ALL THE LEADERS GONE?
I Had enough?
II People and priorities: It’s that simple
III Can you show me where it’s working?
IV Aren’t we supposed to be the good guys?
V How much do we love democracy?
PART 2: WHERE HAVE ALL OUR FRIENDS GONE?
VI Will the real leader of the free world please stand up?
VII Meet the coalition of the UNwilling
VIII What will we do for oil?
IX Free trade must be fair trade
X Don’t fence me in…or out
PART 3: IS CAPITALISM LETTING US DOWN?
XI Where does all the money go?
XII Will we ever trust corporate America again?
XIII Chrysler’s lesson: Resist the urge to merge
XIV Can anyone around here run a car company?
XV Who will save the middle class?
XVI The blame game is killing us
PART 4: CAN AMERICA BE GREAT AGAIN?
XVII Are we too fat and satisfied for our own good?
XVIII Bring back brain power
XIX Three men who taught me to lead
XX Get off the golf course and DO something
XXI 2008: A call to action
ACKNOWLEDGMENTS
Life is a team effort. No one gets very far alone. I have been blessed with an especially large and dedicated group of people who have supported, encouraged, inspired, and challenged me—beginning with my family.
My daughters Kathi and Lia have meant everything to me. My greatest joy is spending time with them and their families—my sons-in-law Ned and Victor, and my seven wonderful grandchildren, who keep me young.
My sister Delma remains my closest link to my roots in Pennsylvania. She holds a special place as the only living person who has known me since I was born.
My companion and confidant, Juliette, has brought me contentment at this stage of my life that I wasn’t sure I would experience again.
I am grateful to all the people who support me every day, beginning with my assistant, Norma Saken. Norma juggles the constant flood of information and requests that come through my office, and she is always looking for new projects. I keep telling her, “Norma, I’m supposed to be retired,” but she doesn’t listen.
I also appreciate the efforts of Ken Anderson and Ginny King at Quintile Management, who keep me in business; and Rosa, Raquel, and Elmer, who make my home life easier.
The best part of life these days is my ability to make a difference in the world, and to give something back. Some very talented and devoted people help me do that. Dana Ball along with Lou Lataif and Desi Heathwood work tirelessly at the Iacocca Foundation in order to make my dream of finding a cure for diabetes come true.
My partners at the Iacocca Institute at Lehigh University, and especially Dick Brandt, have created an environment where students from around the world can discover common ground. They are literally changing the world one young mind at a time.
Blake Roney, Truman Hunt, and Brent Goddard at NuSkin, have been an inspiration in their efforts to feed the world’s hungry, and have demonstrated that you can do well in business by doing good. I am pleased to be a part of that effort.
Steve Briganti and the hardworking people at the Statue of Liberty—Ellis Island Foundation have provided a constant reminder of the greatness of America, and the role we all have to play.
I am also grateful to my friends in Detroit who keep me involved in the car business, my friends in Washington who remind me how important leadership is, and my friends in California who help me stay engaged and up-to-date in this fast-paced world. And of course, still on my best friends list are Bill Fugazy, Vic Damone, and Nasser Kazeminy.
Finally, I want to thank the people who helped make this book happen. When Jack Romanos, the president and CEO of Simon & Schuster, Inc., approached me with the idea of writing a book about leadership, I couldn’t refuse. Jack and I go way back to 1984, when he convinced me that people really wanted to hear what a car guy had to say. The result of that collaboration was Iacocca. It has been my privilege to work with Jack again, along with his top-notch team from Scribner/Simon & Schuster. My editor, Colin Harrison, not only kept my language clean and clear, but he also pushed me to go deeper into my thinking about the critical issues of the day.
The Simon & Schuster and Scribner executives Carolyn Reidy, Susan Moldow, and Rosalind Lippel have been enthusiastically behind this project from the start. And, of course, I appreciate the hard work and skill of my collaborator, Catherine Whitney, who was patient and energetic through numerous drafts, and who helped me turn my most deeply felt ideas and beliefs into words people could understand.
Not a day goes by that some perfect stranger doesn’t write, call, or approach me in public to talk about something that matters to him or her. The connection I’ve made with people from all walks of life has been a great source of energy and satisfaction for me. With this book I hope to use that connection to spark an American renewal. Together, we can do whatever we can dream.
PART ONE
WHERE HAVE ALL
THE LEADERS GONE?
I
Had enough?
Am I the only guy in this country who’s fed up with what’s happening? Where the hell is our outrage? We should be screaming bloody murder. We’ve got a gang of clueless bozos steering our ship of state right over a cliff, we’ve got corporate gangsters stealing us blind, and we can’t even clean up after a hurricane much less build a hybrid car. But instead of getting mad, everyone sits around and nods their heads when the politicians say, “Stay the course.”
Stay the course? You’ve got to be kidding. This is America, not the damned Titanic. I’ll give you a sound bite: Throw the bums out!
You might think I’m getting senile, that I’ve gone off my rocker, and maybe I have. But someone has to speak up. I hardly recognize this country anymore. The President of the United States is given a free pass to ignore the Constitution, tap our phones, and lead us to war on a pack of lies. Congress responds to record deficits by passing a huge tax cut for the wealthy (thanks, but I don’t need it). The most famous business leaders are not the innovators but the guys in handcuffs. While we’re fiddling in Iraq, the Middle East is burning and nobody seems to know what to do. And the press is waving pom-poms instead of asking hard questions. That’s not the promise of America my parents and yours traveled across the ocean for. I’ve had enough. How about you?
I’ll go a step further. You can’t call yourself a patriot if you’re not outraged. This is a fight I’m ready and willing to have.
My friends tell me to calm down. They say, “Lee, you’re eighty-two years old.
Leave the rage to the young people.” I’d love to—as soon as I can pry them away from their iPods for five seconds and get them to pay attention. I’m going to speak up because it’s my patriotic duty. I think people will listen to me. They say I have a reputation as a straight shooter. So I’ll tell you how I see it, and it’s not pretty, but at least it’s real. I’m hoping to strike a nerve in those young folks who say they don’t vote because they don’t trust politicians to represent their interests. Hey, America, wake up. These guys work for us.
WHO ARE THESE GUYS, ANYWAY?
Why are we in this mess? How did we end up with this crowd in Washington? Well, we voted for them—or at least some of us did. But I’ll tell you what we didn’t do. We didn’t agree to suspend the Constitution. We didn’t agree to stop asking questions or demanding answers. Some of us are sick and tired of people who call free speech treason. Where I come from that’s a dictatorship, not a democracy.
And don’t tell me it’s all the fault of right-wing Republicans or liberal Democrats. That’s an intellectually lazy argument, and it’s part of the reason we’re in this stew. We’re not just a nation of factions. We’re a people. We share common principles and ideals. And we rise and fall together.
Where are the voices of leaders who can inspire us to action and make us stand taller? What happened to the strong and resolute party of Lincoln? What happened to the courageous, populist party of FDR and Truman? There was a time in this country when the voices of great leaders lifted us up and made us want to do better. Where have all the leaders gone?
THE TEST OF A LEADER
I’ve never been Commander in Chief, but I’ve been a CEO. I understand a few things about leadership at the top. I’ve figured out nine points—not ten (I don’t want people accusing me of thinking I’m Moses). I call them the “Nine Cs of Leadership.” They’re not fancy or complicated. Just clear, obvious qualities that every true leader should have. We should look at how the current administration stacks up. Like it or not, this crew is going to be around until January 2009. Maybe we can learn something before we go to the polls in 2008. Then let’s be sure we use the leadership test to screen the candidates who say they want to run the country. It’s up to us to choose wisely.
So, here’s my C list:
A leader has to show CURIOSITY. He has to listen to people outside of the “Yes, sir” crowd in his inner circle. He has to read voraciously, because the world is a big, complicated place. George W. Bush brags about never reading a newspaper. “I just scan the headlines,” he says. Am I hearing this right? He’s the President of the United States and he never reads a newspaper? Thomas Jefferson once said, “Were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate for a moment to prefer the latter.” Bush disagrees. As long as he gets his daily hour in the gym, with Fox News piped through the sound system, he’s ready to go.
If a leader never steps outside his comfort zone to hear different ideas, he grows stale. If he doesn’t put his beliefs to the test, how does he know he’s right? The inability to listen is a form of arrogance. It means either you think you already know it all, or you just don’t care. Before the 2006 election, George Bush made a big point of saying he didn’t listen to the polls. Yeah, that’s what they all say when the polls stink. But maybe he should have listened, because 70 percent of the people were saying he was on the wrong track. It took a “thumping” on election day to wake him up, but even then you got the feeling he wasn’t listening so much as he was calculating how to do a better job of convincing everyone he was right.
A leader has to be CREATIVE, go out on a limb, be willing to try something different. You know, think outside the box. George Bush prides himself on never changing, even as the world around him is spinning out of control. God forbid someone should accuse him of flip-flopping. There’s a disturbingly messianic fervor to his certainty. Senator Joe Biden recalled a conversation he had with Bush a few months after our troops marched into Baghdad. Joe was in the Oval Office outlining his concerns to the President—the explosive mix of Shiite and Sunni, the disbanded Iraqi army, the problems securing the oil fields. “The President was serene,” Joe recalled. “He told me he was sure that we were on the right course and that all would be well. ‘Mr. President,’ I finally said, ‘how can you be so sure when you don’t yet know all the facts?’” Bush then reached over and put a steadying hand on Joe’s shoulder. “My instincts,” he said. “My instincts.” Joe was flabbergasted. He told Bush, “Mr. President, your instincts aren’t good enough.” Joe Biden sure didn’t think the matter was settled. And, as we all know now, it wasn’t.
Leadership is all about managing change—whether you’re leading a company or leading a country. Things change, and you get creative. You adapt. Maybe Bush was absent the day they covered that at Harvard Business School.
A leader has to COMMUNICATE. I’m not talking about running off at the mouth or spouting sound bites. I’m talking about facing reality and telling the truth. Nobody in the current administration seems to know how to talk straight anymore. Instead, they spend most of their time trying to convince us that things are not really as bad as they seem. I don’t know if it’s denial or dishonesty, but it can start to drive you crazy after a while. Communication has to start with telling the truth, even when it’s painful. The war in Iraq has been, among other things, a grand failure of communication. Bush is like the boy who didn’t cry wolf when the wolf was at the door. After years of being told that all is well, even as the casualties and chaos mount, we’ve stopped listening to him.
A leader has to be a person of CHARACTER. That means knowing the difference between right and wrong and having the guts to do the right thing. Abraham Lincoln once said, “If you want to test a man’s character, give him power.” George Bush has a lot of power. What does it say about his character? Bush has shown a willingness to take bold action on the world stage because he has the power, but he shows little regard for the grievous consequences. He has sent our troops (not to mention hundreds of thousands of innocent Iraqi citizens) to their deaths—for what? To build our oil reserves? To avenge his daddy because Saddam Hussein once tried to have him killed? To show his daddy he’s tougher? The motivations behind the war in Iraq are questionable, and the execution of the war has been a disaster. A man of character does not ask a single soldier to die for a failed policy.
A leader must have COURAGE. I’m talking about balls. (That even goes for female leaders.) Swagger isn’t courage. Tough talk isn’t courage. George Bush comes from a blue-blooded Connecticut family, but he likes to talk like a cowboy. You know, My gun is bigger than your gun. Courage in the twenty-first century doesn’t mean posturing and bravado. Courage is a commitment to sit down at the negotiating table and talk.
If you’re a politician, courage means taking a position even when you know it will cost you votes. Bush can’t even make a public appearance unless the audience has been handpicked and sanitized. He did a series of so-called town hall meetings last year, in auditoriums packed with his most devoted fans. The questions were all softballs.
To be a leader you’ve got to have CONVICTION—a fire in your belly. You’ve got to have passion. You’ve got to really want to get something done. How do you measure fire in the belly? Bush has set the all-time record for number of vacation days taken by a U.S. President—four hundred and counting. He’d rather clear brush on his ranch than immerse himself in the business of governing. He even told an interviewer that the high point of his presidency so far was catching a seven-and-a-half-pound perch in his hand-stocked lake.
It’s no better on Capitol Hill. Congress was in session only ninety-seven days in 2006. That’s eleven days less than the record set in 1948, when President Harry Truman coined the term do-nothing Congress. Most people would expect to be fired if they worked so little and had nothing to show for it. But Congress managed to find the time to vote itself a raise. Now, that’s not lea
dership.
A leader should have CHARISMA. I’m not talking about being flashy. Charisma is the quality that makes people want to follow you. It’s the ability to inspire. People follow a leader because they trust him. That’s my definition of charisma. Maybe George Bush is a great guy to hang out with at a barbecue or a ball game. But put him at a global summit where the future of our planet is at stake, and he doesn’t look very presidential. Those frat-boy pranks and the kidding around he enjoys so much don’t go over that well with world leaders. Just ask German Chancellor Angela Merkel, who received an unwelcome shoulder massage from our President at a G-8 Summit. When he came up behind her and started squeezing, I thought she was going to go right through the roof.
A leader has to be COMPETENT. That seems obvious, doesn’t it? You’ve got to know what you’re doing. More important than that, you’ve got to surround yourself with people who know what they’re doing. Bush brags about being our first MBA President. Does that make him competent? Well, let’s see. Thanks to our first MBA President, we’ve got the largest deficit in history, Social Security is on life support, and we’ve run up a half-a-trillion-dollar price tag (so far) in Iraq. And that’s just for starters. A leader has to be a problem solver, and the biggest problems we face as a nation seem to be on the back burner.
You can’t be a leader if you don’t have COMMON SENSE. I call this Charlie Beacham’s rule. When I was a young guy just starting out in the car business, one of my first jobs was as Ford’s zone manager in Wilkes-Barre, Pennsylvania. My boss was a guy named Charlie Beacham, who was the East Coast regional manager. Charlie was a big Southerner, with a warm drawl, a huge smile, and a core of steel. Charlie used to tell me, “Remember, Lee, the only thing you’ve got going for you as a human being is your ability to reason and your common sense. If you don’t know a dip of horseshit from a dip of vanilla ice cream, you’ll never make it.” George Bush doesn’t have common sense. He just has a lot of sound bites. You know—Mr.-they’ll-welcome-us-as-liberators-no-child-left-behind-heck-of-a-job-Brownie-mission-accomplished Bush.