Wisdom from the “World's Meanest Boss”

I read somewhere recently that Harold Geneen, one of my favorite corporate executives, had made it on an all-time list of the World's Meanest Bosses. Geneen ran ITT back in the 60's and 70's, when size meant everything and conglomerates were the rage. He developed a reputation for always hitting his forecasts, and being impossible to work for.

Mean or not, he had some keen insights into the business world which I have benefited from and which I will share here, along with some Small Business applications.

Seeking the Truth

Geneen was famous for his monthly executive meetings. They were grueling, multi-day, 14- hours-a-day events , where he would grill his divisional managers about their performance and expectations. He would go through their reports line by line, looking for the facts. Or, as he called them, the “unshakable facts”. He went to great pains to sort out the opinions, and guesses, and hypothesis, and suppositions, and biases and wishful thinking, to get to the “unshakable facts”. I imagine he found them few and far between.

I bet you experience the same thing every day. People come to you with information, and want you to make a decision. Unfortunately, much of that information is false, or assumed, or only partially accurate. A long way from being “unshakable”. Obviously, if you get poor information you will be making poor decisions. If you want to make better decisions, the information, and the information source must be analyzed. (Geneen felt that was best done in-person, hence the endless monthly meetings.)

Boiling information down to unshakable facts, as presented by your employees, requires a lot of work. Lazy managers don't bother: they just accept with they are given, and blame their staff when things go wrong. A strong manager is always skeptical, until proof is provided. The stronger the facts, the better the decision-making.

The Greatest Executive Disease

Geneen came from the corporate world of the 60's where, as depicted on the Mad Men series, all serious businessmen had a bottle of booze in their desk drawer, and the senior executives drank expensive scotch. It was in this environment that he developed his famous quote about the Great Executive Disease:

“The worst disease which can afflict business executives in their work is not, as popularly

supposed, alcoholism; it's egotism.”

What a fabulous insight!!! Executive egotism has ruined more businesses than alcoholism and drug addiction combined. Not only is it more powerful, it's harder to recognize. People suffering from serious substance abuse are easy to spot in the workplace. The signs identifying an ego-driven executive are not as obvious. And too often, its the Boss: who's going to call him out???

Small businesses are run by entrepreneurial types, and a healthy ego is a prerequisite for success. Too often, however, the decision-making groups in these companies become “inbred”, and the executives end up believing their own press releases and reliving their past glories. The executive ego attitude of “my ideas worked in the past, and they'll work in the future” has caused many a business to lose its edge and its position in the marketplace.

Organizations that are successful over the long haul have mechanisms to constantly inject new blood and new ideas into their decision-making counsels. It is hard on the ego, but good for the business.

Practical Tip of the Day:

• What is the primary USP (unique selling proposition) that you are using in your marketing today? How does that compare with the message you used 5 years ago? (For more about the USP concept,  Click Here. )
  
• If it is the same, that could be an example of missed-placed ego. Just because it was your idea and it worked, doesn't mean it is still applicable.
  
• If you dig for the unshakable facts, you will find that the market has changed. So should your message.

For more information on Harold Geneen and ITT, Click Here. Or better yet, read one of his books.