DS, a Human Resources Vice President and former colleague, is an expert on organizational behavior, leadership training and executive development. After reading Following the Hurd, he provided these comments:
Another aspect of these cases that still continues to amaze me – as a former leadership development guy – is that all of our efforts (and expense) to instill and develop in leaders the decisions, actions and behaviors associated with good and moral leadership is largely ineffective and neutralized in the presence of the self-affirming/aggrandizing bubble (as you describe) that surrounds characters such as Hurd.
The other element at play I believe has to do with emotional age when assuming the top position and tenure in the job. Back in the day, executives didn’t get tapped for these jobs until they were pushing 60 or so and maybe they would have a run of five years. Early in their tenure, the leader almost always navigated the first crisis (usually a business crisis, but sometimes personal). Given their five year window, back then, they almost never had to deal with a second crisis of major magnitude – they went off into retirement, revered. The next guy then came in and repeated the same process.
But today, executives are quite a bit younger at appointment, imbued with certainty, looking to prove their virility and more easily seduced by power. Their anticipated tenure could easily exceed ten years. Likewise, the top jobs are now of such staggering complexity (cognitive, physical and psychological), that few air-breathing humans can actually perform them well, by themselves – thus the trend toward Office of the Chairman, Executive Leader Council and other rickety power-sharing, “star-chamber” arrangements. The business environment and the operational tempo today almost guarantees that they will experience a major crisis (business or personal) every 18-24 months. Like their forebears, they’ll handle the first one just fine, for a variety of reasons they will be unable to navigate the second crisis. The odds and time itself are against them and they are ill-equipped (on many levels) to prevail.
Add that to the dirty water they are swimming in inside the “bubble” and you have a predictable (maybe unavoidable, though I’d hate to concede that) outcome.
Surviving a Crisis
DS’ additional thoughts on CEO crisis management:
The reasons why they handle the first crisis well are at least twofold -
Early in their tenure their sense-making skills are at their peak – primarily because of the novelty of a new job/environment, they are listening to many sources of input, they are open to new ideas and haven’t wall themselves off in the star-chamber and surrounded themselves with sycophants. Ironically, the fact that they are short on “experience” in the new situation works to their benefit because they avoid the traps that come with believing they are “familiar” with what is going on. Big ears trump experience!
Second, they make quicker and more confident decisions early on vs. later when their decision-making slows and they become more risk averse.
With the passage of time on the job, the factors reverse themselves – they stop listening and their reaction and decision-making time slows down. This is ironic since they have had the opportunity to accumulate helpful experience.
Voila! Train wreck!
Unfortunately, the Mark Hurd saga is not an isolated instance. American business has seen a spate of ethical lapses and high level departures. See Ethical Lapses Felled Long List of Company Executives.
Final Thoughts
Hurd’s departure has left a void and recriminations. The acting CEO is desperately trying to reassure customers, Wall Street and employees that all is well and it is business as usual. The Board is commencing a search for a new CEO. Given the fast moving nature of the technology industry, Wall Street is openly worried about a delay in finding a successor. Finally, the Board is miffed that Hurd did no depart quietly, but sought to vindicate his actions and preserve his reputation. See Digits Live Show: Mark Hurd Isn’t Leaving H-P Quietly
Perhaps the Board should spend less time searching for a cost cutting guru or the next creative Steve Job-like creative genius, and more time and thought on the moral character of Mr. Hurd’s successor.
If my colleague is correct, Mr. Hurd will not be the last CEO to exit in an ignominious fashion.
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Related posts:
- Following the Hurd
- Don’t Let Your Lawyers Grow Up to Be CEOs
- One Year of Blogging
- Cheating
- Safety and Profits: Oil and Water?
Tags: ethics, HP, Mark Hurd, organizational behavior
