Help Wanted: CEO of the FCIC
The Wall Street Journal recently published a fascinating front-page feature story detailing how federal regulators handle the takeover of a bank which is in danger of failing. In this case, it was the tiny First Integrity Bank, in the railroad town of Staples, Minnesota, population 3,200. About 75 federal officials and contractors from the Federal Deposit Insurance Corporation (FDIC) swooped into First Integrity late on a Friday afternoon and revoked the bank’s charter in anticipation of a friendly takeover by another bank. Secrecy was paramount, to prevent panic among the locals and a run on the bank. The regulators worked through the weekend. By Monday morning, the bank had been reopened with a new name, First International Bank & Trust. Depositors were assured their money was safe and went about their business, barely noticing or caring about the change.
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Exploring new approaches to business in the high-powered world of digital technology
Like a lot of people, I have decidedly mixed feelings about technology. When my PC is firing away, performing all the tricks it’s supposed to, it’s extremely easy to envision myself as a digital trailblazer, pioneering exciting new dimensions of 21st century communications and knowledge. And when my computer seizes up and grinds to a halt, frustrating those world-conquering digital ambitions, I am reminded of the perspective of newspaper columnist Dave Barry: “People in the computer industry use the word ‘user’, which to them means ‘idiot’.”
And so it was with some trepidation that this computer “user” recently accepted an invitation to discuss HOW with a group of executives from the technology industry. In my experience, tech execs tend to be smart, not afraid to challenge and holding strong opinions about what works and what doesn’t – especially in the world of business. But I figured I could hold my own.
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Ensuring customer experience doesn’t begin and end at the runway
Earlier this month, the FAA notified Southwest Airlines that it was going to fine the company an unprecedented $10.2 million for violating safety inspection rules. Gary Kelly, the company’s CEO, immediately responded, saying the fine was unfair because his company had “acted responsibly.”
As it turned out, that wasn’t the case. In 2006 and 2007, Southwest operated 47 planes – almost 10% of its fleet – without inspecting them for fuselage cracks. The planes flew a total of 61,000 flights before they were finally grounded for inspection. Cracks were discovered in six of the planes, with some of the cracks as long as four inches.
Within a week, Mr. Kelly had apologized to customers and regulators for the company’s “poor judgment.” Three Southwest employees were placed on administrative leave, and the CEO vowed to make Southwest “the safest airline in the world.” He acknowledged “there are some that have lost trust in Southwest Airlines,” and that the company would “have to regain that trust.” Now, with several FAA inspectors alleging Southwest tried to control the inspection process, Southwest is facing a full-scale crisis – its response will dictate the sincerity of Mr. Kelly’s words.
Don’t let Grandma talk to the press.
The rank-and-file aren’t the only ones affected by stupid rules.
According to Business Week (Feb. 25, 2008), the new employment contract between investment firm Lazard and Bruce Wasserstein, its CEO, has one of the most far-reaching non-disparagement agreements in recent memory.
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Predicting change.
Jane Buckingham’s new book, What’s Next: The Experts’ Guide, collects the opinions of a wide range of experts, from actors and yoga teachers to lawyers and city planners – all working in areas in which dramatic change is expected in the near future.
I was asked by Ms. Buckingham to provide my perspective for her book. In my contribution, I discussed the growing importance of conduct – both personal and business – as a source of differentiation and success.
You can learn more about the book here.
Forbes.com's "On Solutions"
Forbes.com recently developed a report on K-12 education as part of their “On Solutions” series. A wide variety of people, including myself, were asked to write a short opinion piece about things that might be done to fix the education system in America.
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Rethinking the subprime mortgage crisis
Over the last few months, the subprime mortgage crisis has grown to become one of the biggest problems in our economy. As we look over this crisis, its short-term impact is apparent: massive write-downs in the banking industry, a drop in home values and a slowdown in new construction, just to begin with. And as we look down the road, it is clear that this crisis will be with us for some time to come.
Had the mortgage industry been driven by a different set of values – had financial institutions been thinking in terms of should instead of could -- the story might have turned out differently.
A year of damaged reputations.
The Wall Street Journal recently published a summary of the events of 2007, as chronicled throughout the year on the paper’s front pages. The Journal did a good job of detailing the course of the year, and as I read over the list, I wondered what last year’s events — the accounting fraud, overpaid executives, insider trading and ethical violations – tell us?
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I’m honored to learn that HOW has been selected as one of the Best Leadership Books of 2007 by Leadership Now, a blog based on the idea that “leadership is everyone’s business.”
http://www.leadershipnow.com/leadershop/best2007.html
Quality of life in the workplace isn’t easily measured.
I was recently asked by Steelcase to talk with to a group of architects and designers as part of the company’s 360 series (www.360series.com). Steelcase – well known for its leading-edge office environments – realizes the importance of connection, reaching out to its professional community to stimulate thought and ideas on shaping cultures through the design of physical spaces.
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Dov Seidman's Posts
