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jerryking : tailspins   3

Opinion | The Strange Failure of the Educated Elite - The New York Times
By David Brooks
Opinion Columnist

May 28, 2018

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See also
"Jun 18, 2007 | WSJ | Robin Moroney. Extreme intelligence might
undermine a person’s managerial capacity, he speculates. “What is
required at the top levels of govt. is not brilliance, but managerial
skill,” says Posner. That includes knowing “when to defer to the
superior knowledge of a more experienced but less mentally agile
subordinate.” Especially intelligent people also have difficulty
trusting the intuitions of less-articulate people who have more
experience than they do. That might be why many smart senior officials
in govt. have tried to reason their way through problems on their own,
assuming their civil servants’ inadequate explanations rendered their
judgments invalid."
the_best_and_brightest  books  civics  mental_dexterity  David_Brooks  diversity  dysfunction  elitism  failure  fractured_internally  the_Greatest_Generation  institutions  IQ  meritocratic  Steven_Brill  college-educated  baby_boomers  Tailspins 
may 2018 by jerryking
Steven Brill's "Tailspin": How My Generation Broke America
May 17, 2018 | | Time | By STEVEN BRILL.

From matters small – there are an average of 657 water-main breaks a day, for example – to large, it is clear that the country has gone into a tailspin over the last half-century, when John F. Kennedy’s New Frontier was about seizing the future, not trying to survive the present..............The Meritocracy’s ascent was about more than personal profit. As my generation of achievers graduated from elite universities and moved into the professional world, their personal successes often had serious societal consequences. They upended corporate America and Wall Street with inventions in law and finance that created an economy built on deals that moved assets around instead of building new ones. They created exotic, and risky, financial instruments, including derivatives and credit default swaps, that produced sugar highs of immediate profits but separated those taking the risk from those who would bear the consequences. They organized hedge funds that turned owning stock into a minute-by-minute bet rather than a long-term investment. They invented proxy fights, leveraged buyouts and stock buybacks that gave lawyers and bankers a bonanza of new fees and maximized short-term profits for increasingly unsentimental shareholders, but deadened incentives for the long-term growth of the rest of the economy.....[We need 'guardrails' against legal and financial excesses.]......Forty-eight years after Inky Clark gave me my ticket on the meritocracy express in 1967, a professor at Yale Law School jarred the school’s graduation celebration. Daniel Markovits, who specializes in the intersection of law and behavioral economics, told the class of 2015 that their success getting accepted into, and getting a degree from, the country’s most selective law school actually marked their entry into a newly entrenched aristocracy that had been snuffing out the American Dream for almost everyone else. Elites, he explained, can spend what they need to in order to send their children to the best schools, provide tutors for standardized testing and otherwise ensure that their kids can outcompete their peers to secure the same spots at the top that their parents achieved.

“American meritocracy has thus become precisely what it was invented to combat,” Markovits concluded, “a mechanism for the dynastic transmission of wealth and privilege across generations. Meritocracy now constitutes a modern-day aristocracy.”.....
Daniel_Markovits  baby_boomers  entrepreneur  income_inequality  politics  revenge_effects  Steven_Brill  political_polarization  fractured_internally  books  meritocratic  America_in_Decline?  elitism  lawyers  self-perpetuation  upper-income  inequality  privilege  the_best_and_brightest  tailspins  guardrails  the_American_dream  cultural_transmission  wealth_transfers  partisan_politics 
may 2018 by jerryking
How to Tell When A CEO Is Toast: The Early Warnings - WSJ.com
April 18, 2000 | WSJ |By CAROL HYMOWITZ

Here's a short list of telltale warning signals indicating trouble at the top.

TURNING A DEAF EAR to directors: When the CEO of a technology company that had grown considerably during his tenure suddenly faced enormous competition from a faster-growing rival and difficulty absorbing two acquisitions, he ignored a number of suggestions from his board. "We told him to try this, do that, consider this -- and he simply wouldn't listen," fumes a director who did not want to be named. The more the CEO insisted on business as usual and refused to listen to his directors' concerns, the more he lost their trust. "His failure to listen became a warning signal to us" and led to his ouster, the director says.
[Illustration of a CEO with a rocket strapped to the back of his chair]

Similarly, former Coca-Cola KO +0.36% CEO Douglas Ivesterdidn't heed his board's urgings to name a No. 2 executive. And when Coke customers in Belgium and France complained of nausea after drinking Coke products, Mr. Ivester ignored at least one director's advice to go quickly to Belgium and address the situation.

Turning a deaf ear to employees: Mr. Ivester also decided, as part of a management reorganization, that the company's highest-ranking African American, Carl Ware, one of his longtime supporters, would no longer report directly to him -- effectively demoting him. The timing couldn't have been worse since Coke is facing an employee lawsuit alleging discrimination. Mr. Ware announced plans for early retirement, and Mr. Ivester lost more credibility as Coke's leader. He stepped down as CEO at the end of last year. Mr. Ivester couldn't be reached for comment.

Former Delta Air Lines DAL -1.69% CEO Ronald Allenalso was a victim of his own insensitive management style three years ago. Mr. Allen had pulled Delta out of a financial tailspin by slashing costs. But a lot of those cuts represented employee layoffs and he did little to smooth over anxieties. Directors ultimately blamed him for a drop in morale throughout the company. With many executives who reported to Mr. Allen leaving and blue-collar workers considering unionization, Mr. Allen was asked to step down. He declined to comment about the ordeal.

PROMISING TOO MUCH: At toymaker Mattel , MAT +0.59% former CEO Jill Barad madeearnings forecasts to her board and shareholders that the company then failed to meet. "Nobody likes surprises," says Thomas Neff, chairman of the executive recruiter Spencer Stuart's U.S. operations. "The best CEOs beat their forecasts, while the worst thing you can do is be overly optimistic," he adds.

Ms. Barad at times dismissed forecasts made by other executives, insisting to directors that Mattel would do better. She resigned in February, after three years as CEO and a stream of disappointing earnings. She was unavailable for comment.

Misreading expectations: A former CEO ousted from his job with a large financial-services company a few years ago recalls how he thought he was in agreement with his board on a succession plan, only to realize they wanted him gone much sooner, mostly out of fear that he was intentionally dragging his feet. The CEO had formed a search committee for a successor, but was taking his time about recommending candidates. Then, at a board meeting, he was asked to leave the room so directors could confer alone. What he thought would be a 15-minute exchange turned into an hour-long discussion. "That's when I knew something was up," he says. "They wanted to move on succession right away."

Underestimating conflict: Bank One 's ONE +2.80% former CEO John McCoyoversaw numerous acquisitions before he merged his Columbus, Ohio, bank with First Chicago to create a $260 billion powerhouse Midwestern bank. Previous smaller mergers, he says, took about 18 mon
aloofness  blue-collar  Carol_Hymowitz  CEOs  expectations  misinterpretations  misjudgement  overoptimism  overpromising  signals  surprises  tailspins  underestimation  unionization  warning_signs 
june 2012 by jerryking

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