'...we have found the enemy; and the enemy is us...'

 

Economist Sylvia Ann Hewitt surveyed executives to ask what they considered to be the most important traits that are needed to be a successful leader. The traits were categorized into three sections: gravitas, communication and appearance. She conducted these surveys in 2012 and again in 2022. (Please visit The New Rules of Executive Presence (hbr.org) for more details on the results.) 

Given that the responses were from the executives themselves as opposed to their direct and indirect reports, it is telling to me why we have such a dearth of effective leaders. 

My first concern is that these people seem to give equal or greater weight to the soft issues of communication and appearance versus gravitas. We can argue the merits of the first two as contributors to executive success. But can we really deny the importance of gravitas?  

The survey results from both years list confidence and decisiveness as the two most important traits in the gravitas component. Wow, I’ve just learned a new way to spell arrogance and stupidity. Why not just say it out loud...it’s my way or the highway! 

There is NO reference to competence. But of greater concern is the rating of integrity. In 2012 it ranked 3rd. Disappointingly, it was not 1st and it rated only a 63% share from these self-evaluators. But by 2022 it has fallen to 6th and is almost an afterthought. Only slightly more than half the respondents see integrity as a trait necessary for effective leadership. How stunning and how revealing is that.  

 People see themselves as more effective leaders when they look and feel the part. It’s reputation that counts, not character. They have built their entire leadership model on sleight of hand...like a magician’s illusion.  

But we know that illusion fades in the light of truth. As the Wizard says in ‘The Wizard of Oz’... ‘pay no attention to the man behind the curtain...’ 

Why has integrity become a four-letter word? It does not seem that long ago when we revered integrity rather than defiling it. As example, Warren Buffett and Charlie Munger are/were two of the wealthiest individuals on the planet with their holdings in Berkshire. Yet neither was ever involved in ethical, moral or legal failure and Berkshire has prospered under their integrity-based leadership.  

Moreover, Buffett joined with Bill and Melinda Gates to establish The Giving Pledge which encourages the world’s wealthiest to participate in philanthropic endeavors to benefit mankind. The Pledge now has over $600 billion in pledges and assists a myriad of groups around the world. 

Integrity, and its’ cohorts honesty and accountability, are the foundational principles for effective leadership. They are the oxygen that gives life to these other traits. They are the glue which holds everything together. Absent integrity means absent authenticity. 

If we wonder, why our leaders are increasingly ineffective you need look no further. ‘...we have found the enemy; and the enemy is us...’ 

'...the only difference is the size of their yacht...'

 

Since the Russian invasion of Ukraine over 24 months ago, there has been a concerted effort to punish the wealthy supporters of Putin, the oligarchs, who control vast fortunes and who allegedly bankroll Putin personally. The sanctions are meant to undermine Putin’s ability to wage war by applying economic pressure against his power base. 

We in the west have generally agreed with this aggressive seizure of their overseas assets including homes and superyachts and other overt expressions of wealth. I include myself in the number who favour even stricter sanctions and seizures. These individuals have gained their wealth on the backs of the Russian population because of favourable government influence initiated by Putin. One hand washes the other!  

Let’s be clear. Oligarchs don’t get rich by selling products and services to one another. Each ruble that a homeowner spends on home heating fuel; each drop of gasoline that powers their cars; every pound of fertilizer that augments their fields...all benefits an oligarch and is not funded by another oligarch. They maintain their wealth through the monopolies that the government created and sustain. 

So how is our system of government so much different? Consider these facts. 

According to ‘Open Sheets’, in 2023, US industries spent over $4.25 billion to lobby in Washington DC. These funds supported over 12,000 registered lobbyists whose sole purpose in life was to curry favour with politicians and other influencers to ensure the best legislative outcomes for their clients. The amount of money spent on lobbying has more than doubled in the past 20 years though the number of politicians has not. You can draw your own conclusions.  

Lobbying has ethical problems in my mind but there is not much distinction between these activities and those of oligarchs who ‘lobby’ by funding Putin and his cronies. 

Who are the major beneficiaries of this lobbying? Unsurprisingly, they are the CEOs of America’s top companies. In 2023, the average income of the top 10 CEOs was up to $130 million, a large component of which was earned through stock options which have been lobbied to be taxed at a significantly lower tax rate than salaries. These figures do not include the income of individuals like Elon Musk who chooses not to draw a salary; preferring to survive only on his stock options...currently valued at $190 billion. 

Given that the average household income in the US is about $75k, it’s hard not to draw a comparison with the average Russian whose purchases support the oligarchs. Afterall, it’s not as if Tim Cook of Apple is hoping that Musk buys one more iPhone to ensure that his bonus level in met. 

We rightly scoff at the lack of governance abroad and decry their methods of wealth accumulation. But we should be looking more closely at the wealth disparities at home and seeking more equitable compensation and tax regulations.  

 As I see it, the only real difference is the size of their yachts!