Bob's Gutsy Leadership Blog

Bob regularly writes blog posts and articles with his areas of focus being leadership, organizational effectiveness. Below you will find the titles and hot-links of his most recent efforts:

ESPN: Weak Management, Weak Results!

As cable TV’s most expensive channel, ESPN has found themselves in the unfortunate position of having the big cable distributors offering discounted packages that didn’t include this sports channel. Many consumers have opted for these options, while others cut the cable cord entirely and use streaming services exclusively. This has led to ESPN losing 16 million subscribers over the past 7 years.

Read More ...

Morgan Stanley: Confronting the Truth!

The current Morgan Stanley CEO took his job in 2010. The company was struggling badly coming out of the 2008 recession, during which Morgan Stanley’s share price had sunk to $14. After taking a year to fully understand the nature of the business, he announced in early 2012 that “the path we are on is simply not sustainable.” He went to work by first axing Morgan Stanley’s proprietary trading desks and shrank its bond trading operations, the source of repeated blunders. He sold an oil tanker fleet and a half-finished casino, remnants of a freewheeling culture that once ruled Wall Street.

Read More ...

Bogus “Research,” You Won’t Believe These Examples!

I recently read a summary of a study on the “unstoppable power of leaderless organizations.” It was authored by two academics that wrote it in a style that suggested they believe they should be put on a pedestal for this astounding work. The report sings the praises of “starfish-like” organizational structures that are totally decentralized and completely dependent on peer-to-peer relationships. They claimed this inherent flexibility would lead to a big positive impact on the management of projects and the discovery of knowledge.

Read More ...

Nike: Getting Their Head Out of the Sand!

Recently, Nike learned the hard way that you need to know what employees are experiencing. Specifically, the press reported that this saga began with several female employees complaining to the Nike HR organization about sexual harassment issues. The press noted it was apparently common practice for an HR representative to meet one-on-one with anyone who had a complaint, tell them they are the only person with such a complaint, and suggest that it’s their own fault.

Read More ...

Avoid Making Enemies: But Do Make Decisions!

One of the key attributes of a strong, courageous leader is the ability to get people to pursue an aggressive plan for improvement. In doing so, lots of dialogue takes place as the plan is developed, with particular emphasis on trying to make the dissenters understand the thinking, even though they may not agree. In dealing with those that may not agree, one thing you want to avoid is telling them they are wrong.

Read More ...

Keeping the Talented and Dismissing the Poor Performers

In recent months the business press has been filled with stories of the weak performance of General Electric. Many comparisons have been made to the lack of leadership in the last 15 years versus that which Jack Welch provided during GE’s glory years in the 1980’s and 90’s. One of the most controversial aspects of Welch’s time at GE was his so called “rank and yank” procedure, where he would fire the bottom ranked 5-10% of his managers each year, regardless of absolute performance. He earned a reputation for brutal candor. He rewarded those ranked in the top 20% with bonuses and stock options.

Read More ...

Warren Buffet and 3G: Capitalizing on the Tendency to Get Fat!

It was 2015 when the acquisitive Brazilian investment giant, 3G Capital, took over Kraft Foods and merged it with HJ Heinz, the catsup maker, which it already owned. In this deal, Warren Buffet provided much of the cash, knowing full well that there were profits to be made, given the strong reputation of 3G Capital of being world-class when it comes to cost-cutting.

Read More ...

What Do Apple and Netflix Have in Common?

Innovation is a topic that you hear a lot about these days. How does it happen? I think you can learn a lot by looking at examples that have occurred over the years that have had a truly significant impact. Here are two classics: Note how the leader had a very specific idea that he believed would have a very significant impact on the world.

Read More ...

BlackRock: The Power of “Sense of Purpose”

Founded 25 years ago, BlackRock has quickly become not only the world’s largest asset manager ($5.7 trillion under management), but also the dominant leader in the fastest growing investment product; exchange-traded-funds (ETF’s). The company went public in 1999 for $14/share and today BlackRock’s stock trades in the $465/share range. Over the past 5 years, it is up +145%. Separately, a recent Harvard Business Review (HBR) article reported on research dealing with the role of “sense of purpose” in enabling companies to attract top talent and achieve strong results. They single out BlackRock as a prime example.

Read More ...

Tesla Report Card: Innovation = A; Operational Excellence = F

The CEO of Tesla, who is also the Chairman and Co-Founder, is clearly an amazing visionary. The Tesla all-electric car has created a major inflection point in the automobile industry and with every passing day we are seeing more and more momentum shift toward the use of all-electric cars.

Read More ...