In a blog post on March 21 (My Three Cents – http://blog,makovsky.com/ More CEO Education Needed

(www.BullDogReporter) the case is made that CEOs need to get out of their own way, sometimes, especially when speaking to a group outside of their own boardroom.

The CEO of Burger King in a speech at the University of Chicago referred to the fact that when he was in the U.K. getting his MBA some years ago, he found few distractions at the University of Warwick.

Apparently, the women in the audience immediately did not appreciate the comment and the internet became alive according to the blogger.

The speaker apologized for his remarks but the point of the post was how many CEOs (58% according to the blogger) still have not embraced the impact of social media.

I agree with that point of view but the larger issue is how few CEOs know enough to realize that their actions, words and behavior are under constant scrutiny and the smallest mistake or apparently improper actions can be all over the internet immediately and can destroy years of sound and effective leadership.

In my new book, The Emerging CEO – Making The Right Choices For Success, I review some of the best lessons to be learned from the leadership violations of the past few years.

In the days of the internet, and communications in your pocket and 5,000,000,000,000 mobile phones around the world, if you do not (or should not) want anyone to hear your off color comment, it is best not to say it.

Remember Joe Biden in referring to the signing of the Health Reform Law – “A Big F—ing Deal”

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However, according to AFLAC CEO Dan Amos, they have an insurance policy with one out of every four households in Japan.  Their revenue out of Japan is about seventy-five percent of the company’s total earnings.

With this background, Mr. Amos is going to Japan.   Sure, they have six offices and lots of employees there but, unlike Tony Hayward of BP Oil fame or the president of Carnival Lines that had the cruise ship fire last year, this CEO understands leadership and what it means to get out  of his office, even if symbolic, and going to where his customers are at times of disaster.

As a disaster preparedness speaker and author (When Disaster Strikes Home) and CEO for more than forty years (The Emerging CEO)

I appreciate the fact that real leaders “show up” when faced with a crisis. Most executives “go home.”

Which are you?  What would you do?  What other American business president is showing the same concern at a time of need?

While Amos may not be able to do much in Japan, his willingness to go and his presence sends a large message to the Japanese people and our business community. The message is politics is politics, business is business but people, and their needs come first.

I am pleased to write about Dan Amos and his company’s response as to their business responsibility as well as their strong showing of their social responsibility as a good corporate citizen.

Hooray to you Mr. Amos and your leadership.

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As actor, Michael Douglas said in the movie the “American President”:

We’ve got serious problems, and we need serious people…

The president of the United States has the time and the gall to stand in front of a camera for the whole world to see and fool around with the basketball tournament while chaos, concern and confusion awaits all of us.

I am a forgiving citizen and I expect that the president is absolutely entitled to maintain some sense of personal involvement in his life but does he have to show what comes across as how disengaged he is to the serious problems around him.

What kind of leadership is this?  I don’t understand any of this and I hope that his example for emerging leaders doesn’t catch on.   Where is Tony Hayward now?

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Free speech, freedom of the press and all that notwithstanding, the topic is toxic, unnecessary and can’t begin to generate enough revenue to make it worthwhile.  If there are other considerations that Amazon leadership thought important enough to take the risk then common sense should have ruled the day.  CEOs should be immediately able to recognize when a decision or failure to decide or act can have consequences.  I study CEO behavior and teach people to make good decisions by challenging assumptions, ignoring ego and going with gut instincts.
How could any CEO possibly think that releasing this title could possibly be a good idea?
Jeff, despite what you may think there are alternatives to buying from you! Use good sense the next time you think about putting up a toxic topic such as bomb building or other equally appealing topics.

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By now, the world knows the plight of Carnival Cruise Line’s mega-ship  “Splendor” in the waters off Mexico south of San Diego.  An engine room fire on the 4500 passenger and crew cruise ship left the ship without many essential services and caused a very uncomfortable situation for those on board the vessel.  Unfortunately, Carnival is acting as if this type of event has never happened before and it appears that they are not prepared to deal with the issues, seemingly making up next steps as they go.

Moreover, Carnival has missed an opportunity to come out of this tragedy with a huge public relations victory instead of a public relations disaster.

Carnival President and CEO Gerry Cahill said in a statement, “We know this has been an extremely trying situation for our guests and we sincerely thank them for their patience,”

Nice sentiments, Gerry, but were you too busy to make an effective CEO public relations coup by getting on a helicopter and getting on scene to personally visit with the passengers and crew? You really could have shown them and the rest of the world how much Carnival cares about its customers and how far it is willing to go to help them in a critical situation.

Instead of sending Spam and Pop-Tarts, why wasn’t Carnival prepared to respond anywhere in the world with a real plan to replace what was needed to make the passengers as comfortable as possible?

When one of its ships is in peril, the company should have at the ready response teams of equipment and supplies and the ability to get to the ship in trouble with all the emergency goods and services needed.

Carnival’s efforts seemed lame and not very well planned.  Yes, the Navy helped with temporary supplies and even landed a team on the ship.  However, why wasn’t Carnival more prepared?

There have been several situations in the past few months for CEOs to show how good they were in a crisis and how prepared their organizations were.  BP and the Chilean government come to mind.  We know what happened with BP but the Chilean government and particularly the Chilean president really responded quickly and with very positive results.

If I were Gerry Cahill, instead of getting on camera I would have gotten on a plane or helicopter and gotten to the ship with all available speed and stayed with it, really showing the world what a CEO does when its “ship is in trouble.”

What do you think? How would you respond to your company, employees and customers in a crisis event?  Comments welcome.

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I find it appalling when CEOs do not plan for their replacement or even provide the structure to bring others along so that there is at least the possibility for continuity.

Recently, I accepted a new consulting assignment for a large company which just hired a new president to step into that position as the current sole owner/president moves to less day-to-day control.  Same issue exists.  It’s a thirty-year-old company that is very successful but the number two person was there nine years before the owner decided he would never be able to take his spot.  The sad part is that, despite that conclusion, the owner never really ceded much of his responsibilities to the number 2 person.

When you ask most people about what the role of a CEO is you normally get answers like to provide leadership, set strategy, vision and create the culture, to name a few.

How can the Chicago Public Schools system board not  have provided the mechanism and  the leadership to secure that the role of CEO is protected by having the people and programs in place to make sure that when an abrupt departure occurs, the next in line is available?

Yes, politics does dictate successor choices.  Same thing goes for mayors.  Nevertheless, in the public and even in the private sector, the  employees are entitled to some continuity and protection from successor leadership.  Too many enterprises have lost their leader and gone into chaos.

Recently, Warren Buffett just announced his successor.  Great move and great example for others!

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While the real details of the Chilean Mine Disaster were presented through the media lenses and writings it was clear that this problem was solved because people made it happen without apparent turf wars, the acceptance of outside public and private help and NO APPARENT POLITICS or PHONY PHOTO OP’s.

Seven hundred people more or less from Chile, South Africa, America, and other countries got together, thought through the problems, used their knowledge and expertise and came up with solutions and executed with certainty a plan that worked because there was no one getting in the way.  The President of Chile and Bobby Jindal, Governor or Louisiana were the best examples of CEOs in many years either public or private.  They lead and let their people perform along side outside help without interference or artificial, political or union objections or obstacles.  No border wars here.

Their leadership, presence, involvement and commitment were the inspiration – “damn the torpedoes, full speed ahead”

The Chilean experience and its government, even in the earthquake of earlier in 2010 were extraordinary examples of how government can work and CEO leadership makes the difference.

In American, as good as we are, we need to learn to get out of our own way and the next time there is a crisis, let the locals handle it and invite in the private sector and tell the White House to go home.  We need results, not politics. Just compare Chile and its two catastrophes and our most recent two – Katrina and BP/Gulf.

You Decide!

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Once it is judged as achievable, the CEO hands it to “sequential layers” down through the organization.  This is where the CEO tells subordinates you are in charge of analyzing the mission and determine what you need to support the vision and support the other people involved in attaining the represented goal.  Everyone becomes the CEO of his or her piece of the execution.

CEOs who believe that they have to be controlling and overseeing everything that people do are limiting their people to do what they need to do and to do their best to accomplish the mission and vision. Establish a point where success is defined and make sure that is consistent with the resources available to do the job. Let people enjoy being CEO of their own “world” in your company and you might be surprised at the changes and results

If you would like more information on this topic contact me at norris@ceochoices.com

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Can you believe it?  This corporate CEO, head of one of the largest, if not the largest, website on the planet made this statement publicly in the New Yorker magazine.  His comments were contained in an instant message some time ago but it is now reported as if he were on an open mic.  What a dumb F#%@ for thinking or saying online what he said about his “customers”.

His off-color comment was referring to how the users of his new site trusted him with their personal and private information during the early days of Facebook.

Mark Zuckerberg, now 26, admits that it was a youthful indiscretion.  Yet this CEO has raised the ire of many users because of his continuous initiatives to stir controversy into the Facebook experience. He even explains his changes in privacy policy as responding to changes in the “social norms” and that people want to know everything about everything, whether you do or not.

The point is that CEOs are always “on” and should never presume that they are not; thousands have exited his site based on some of his recent changes.  I wonder what the long term impact is on Facebook participation.  Will more leave?   Does it matter if he loses 50 or 100 million more?  Probably not, the money stream will continue.  What about you, Mr. CEO?  Could you say something even half as provoking and insulting to anyone about anything and get away with it?  CEOs may have to be tough and make tough choices and say tough things but this is ridiculous.

I would like your comments about the impact such an indiscretion might have on a company long term.

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The well know fried chicken chain Brown’s (know for good fried chicken in the Chicago area but also for the 1993 mass murder that occurred at one of its restaurants) filed bankruptcy last fall and now is facing a forced auction to liquidate its assets.

The bankruptcy was triggered by a court decision that required Brown’s to pay a large sum of money owed to one of the two original shareholders.  The former co-owner sued the company and won and the subsequent judgment has not been paid.  This battle clearly shows one of the best examples of how people joining forces to create or buy a business need an exit plan at the beginning to avoid these types of controversies and subsequent destruction of a business for lack of a clear way to settle disputes or termination of partnerships or corporations.  Additionally a family feud also is part of this controversy and the original majority founder could be left out looking in.

Norris Beren says – select your exit strategy before you pick the name and write the first check in any business relationship.

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