So, Is It Lonely at the Top or Not?

It isn’t often that a cliché becomes a trending topic on social media.  So, when the old saw “It’s Lonely at the Top” popped up at or near the top of the list, my curiosity was piqued. 

Among the articles I discovered was one on the Wall Street Journal blog titled “FiveReasons Why It’s Lonely at the Top”.  The article was based upon an academic paper written by the authors of the blog post.  One of the authors was Adam Galinsky, a professor the Kellogg School of Business at NorthwesternUniversity, a business school consistently placed in the top 10 in the U.S.

Another – this one in the New York Times -- was titled “Not Lonely at the Top”.  It’s not unusual that the Times and the Journal take a different view of the same issue.  However, in this case, what struck me is that among the authors was none other than – you guessed it – Adam Galinsky. 

What gives?

Well, the first article is based on one’s psychological responses to being in power.  The authors contend that “power perverts, contorts and undermines a number of psychological processes that normally nurture close connections and form the foundation of healthy relationships”.

Among the reasons are that power alters our perception of other people’s generosity (are they being generous or just currying favor?) and, therefore, reduces our ability to develop trusting relationships. 

The alternative view explores how those in power feel rather than their reality.

“Being alone is not the same as feeling alone,” say Galinsky et al. “You can have thousands of friends and feel lonely, or have only a single friend and feel connected. The separation from others — in stature, rank or responsibility — that power confers does not translate into loneliness. In fact, power has the opposite effect on its possessors, alleviating the need to belong and making them feel less alone.”

My own view has been developed less scientifically.  It is experiential (I’ve been a CEO).  It is observational (I work with CEO’s). And, it’s unscientific (it’s just my opinion, after all).

At its core, loneliness at the top is a function of the singular responsibilities that can be performed only by a CEO.  In one of his final works before his death, management guru Peter Drucker outlines them.  Among them are to define the company’s focus on the “Outside”.  If you are running a bank, speculates Drucker, you can focus on many different ways to deploy and leverage your capital – consumer credit, commercial loans, investments, etc. 

Another is to allocate resources to the company’s strategic initiatives.  It does no good for the CEO of an auto manufacturer to conclude that the best differentiator is upgraded infotainment systems if the company’s expertise is building the most powerful engines.  The internal operations must be prepared to deliver on the marketing promise. 

Granted, a CEO can surround himself with professionals – his management team, outside advisors – who can help him make better decisions.  However, the sense of loneliness springs from the fact that there is only one decision maker.

The feeling becomes more acute if the business is small and the CEO is the owner.  Mistakes can be costly and a big mistake can affect your ability to make your mortgage payment or put your kids through college.  No one else in the business feels that kind of pressure.

A good solution for many CEO’s is a peer group.  In a dissertation covering the learning experiences of CEO’s in the healthcare industry, Thomas Chapman concluded “Findings show that CEOs perceive high value in being with other CEOs for one-on-one, informal group interaction, and for having access to a congregation of CEOs in a unique group setting.”

He goes on further to conclude, “elite occupational group members seek other elites for their occupational learning, and exclusive learning groups offer CEOs a safe, confidential set of circumstances and environment that facilitate their learning.”

My experience suggests that learning opportunities are only part of the equation.   The obstacles to moving forward on important initiatives are more often the blind spots that all people develop.  Typically, they center on the need for control or a bias against acceptance of certain critical information.  A peer group can often spot these human frailties quickly and gain commitment to move beyond one’s comfort zone.

Drucker’s commentary is a worthy read for anyone in the study or practice of management and leadership.  But, knowing what to do and doing it are two different things.

WHO WILL LEAD?

40 Years? Are You Kidding?

     "The best way to predict the future is to create it."

                                                   Peter Drucker

In 1920, the Great War (the War to End All Wars) had ended. Germany was utterly vanquished and in disarray. Few would have predicted that, 20 years hence, Europe would again be plunged into war and that Germany would occupy all of Europe from the Pyrenees to the Russian border. But, that's what happened.

Germany lost that war, of course, by virtue of being forced to fight on two fronts with the US from the west and the Soviets in the east. How many people would have predicted that by the time another 20 years passed, the US and the Soviet Union would be locked in an epic struggle called the Cold War -- spending vast amounts of sovereign capital on a nuclear arms race and a space race?

By the time another 30 years had passed, the Soviet Union ceased to exist. Not too many people would have predicted that either.

All of this came to mind recently when I was asked back for the third time to give my lecture titled "How to Choose a Career for the Next 40 Years" to undergraduate business students at Johnson & Wales University in N. Miami. The topic first came up extemporaneously when I was asked a question during my first visit to the class. By the second visit, I had turned it into a prepared lecture; however, many of the students challenged my “facts” which, I must confess, came straight out of my middle-aged memory.

So, in preparation for this latest visit, I did my homework. I pulled data from the Congressional Budget Office, the US State Department, the World Bank and even the economic development bureau of the Russian Federation. I won’t recount it all here but here are few of the highlights:

Basic economics: I needed to give these kids some context. So, I started with a little Econ. 101. After laying out the formula for GDP, I gave them the formula for GDP growth. It’s the sum of population growth and productivity improvement. That’s the definition not an economic theory. So, to see where the jobs are, you need to understand both demographics and what drives productivity improvement.

Demographics. The Baby Boom has been a key driver of the economy since the end of WWII. And, so it will be for the next 20 years. But, then what?

The birth rates of the industrialized countries have slowed to a rate that will not sustain their populations. This will result in GDP shrinkage. Within 20 years, we will be competing for immigrants.

Technology. Tech of any kind will be the place to be. How do you improve productivity? Technology, that’s how. Any kind of technology: infotech, biotech, nanotech, aerospace tech, etc. Especially, aerospace tech.

But, the students of J&W are not the big brains who will invent the next Segway or send a man to Mars. They are the ‘B’ students -- the future working stiffs. Dilbert Cartoonist, Scott Adams, wrote a great column in the Wall Street Journal called "How to Get a Real Education" aimed at these students. Use your college experience to learn how to be an entrepreneur. That’s his advice.

Healthcare… NOT! The growth of healthcare spending will not continue at the same rate. Baby Boomers may cause their own boom in expenditures in the near term but before this crop of college graduates experiences their mid-life crisis, the rate of growth will slow. The industry will do what all industries do when the market growth slows. They will consolidate. And, consolidation causes layoffs.

Go Global. If you want a great job, learn to speak Portuguese and move to Brazil. Latin America is growing three times faster than the US, as are Russia, China and India. If you don’t want to move overseas, work for a global company based in the US. The Global 2000 have been investing in the infrastructure of developing countries for 20 years. Now is the time to reap the rewards.

Keep an eye on DARPA. The Defense Advanced Research Projects Administration has been the source of disruptive inventions since the 1950’s. The silicon chip, email, the internet and GPS all originated in their labs. In other words, everything on your iPhone came from DARPA. What are they working on now? Alternative energy to reduce the military’s dependence on oil.

Countries to Watch. Turkey will be a major player. Their economy is humming and their government and business institutions are productive. Their most recent rejection by the EU will cause them to turn eastward to Iran and Russia for both economic and security cooperation.

Poland will become more important to the US as a bulwark between Russia and Western Europe and a counterbalance to Turkey. Oh, and keep an eye on Mexico. Today’s 17th largest economy will eventually get past its drug war (as Colombia did) and become a growing economic power.

Countries whose influence will decline over the next couple of decades – Russia, Germany, Japan and China.

The world will be as different 40 years from now as it was 40 years ago. Remember 1971?

And, so it goes……