What makes a good leader in a crisis? In difficult times, what are the personal and intellectual characteristics that elevate the mere mortal to the position of a giant? When facing disaster, what is it in human nature that inflates some people and gives them the ability to take the right decisions when everyone else is losing the head?
Now, more than any time in the last generation, it is important to understand these deep personal traits. We — not just in Ireland, but worldwide — are now depending on a small number of individuals. Some have yet to emerge, others are in situ. This global crisis will make and ruin reputations. Why did Roosevelt, a popular but not particularly impressive man before he took office, see things clearly? Why did Churchill, again someone whose reputation was verging on the dangerously maverick, become the rock of stability that Britain needed in the War? Why did De Valera emerge preeminent here from a galaxy of revolutionary stars?
At a more commercial level here in Ireland, why did every bank chief executive get the market so badly wrong? And why did the Central Bank and the Regulator, as well as consecutive Ministers of Finance, preside over this financial madness — a mania which has brought us to the brink?
If asked now, whether it was reckless to keep lending to every person, no matter how risky, who knocked on your door, the bankers would all admit it and confess. If challenged by shareholders as to why they took monumental bets on Irish property and financed the wager in the wholesale money markets rather than from deposits, they’d all now say that that strategy was delinquent. But they did it and make no mistake, a major reason for this was personal enrichment. Now, before we become overly judgmental, let’s point out that getting rich is not a crime.
However, when you are in a position of leadership, personal enrichment cannot be the main driving force. There must be other qualities. A recent newsletter by the investment guru Jeremy Grantham focused on the issue of personal traits and leadership in trying to explain how we reached this crisis point. For anyone trying to understand it, Grantham is one of the most talented money managers in the financial world. He has an ability to gain altitude when others are middling around in the dirt. For those interested see www.gmo.com.
As always, Grantham sees the world differently and this month he is speculating on whether the character traits of our corporate leaders might have something to do with their inability to predict the future and see around quarters. The other night, with that in mind, I spoke to a number of Ireland’s financial and corporate titans at the Ernst and Young Entrepreneur of the Year awards. It struck me that the next generation of Irish leaders — both political and economic — might possess a very different suite of brain processes than the ones who got us into this mess. To use that very American term, Ireland’s next leaders might be “hardwired” differently.
While American terms might be a bit simplistic, their influence should not be underestimated because in the past 10 years, the penetration of American corporate thinking and fashions into Irish boardrooms has been almost complete. As we watch the last week of the run-up to the US election and we examine the type of individuals who might escort Ireland out of this mess, the “hardwiring” issue is a fascinating one.
In 1981, the neurobiologist Robert Sperry won the Nobel Prize for his discovery that we have two brains — a right side and a left side — that see and experience the world in very different ways. He also concluded that our world favours people whose left side of their brain dominates.
According to Sperry: “The main theme to emerge… is that there appear to be two modes of thinking, verbal and nonverbal, represented rather separately in left and right hemispheres respectively and that our education system, as well as science in general, tends to neglect the nonverbal form of intellect. What it comes down to is that modern society discriminates against the right hemisphere”.
So our leaders are most likely to be those whose left side of the brain dominates. These traits are decisiveness, hard work, focus, persuasiveness, analytical skills and political skills.
The great American chief executive is picked from people with these types of traits, as are Irish chief executives. These are the characteristics of people who business schools churn out every year and these are the personalities who do well. But they are not the type of people who think laterally.
nor are they patient, as patience — that most wonderful of virtues — has no place for left-brain-thinking people. These alpha chief executives are doers who are not paid to put their feet up and think about the world. They are there to solve problems and move on. For them, leadership and success is all about seizing opportunities and acting decisively. It is hardly surprising that none of them saw this crisis coming, because their brains do not work that way.
The type of people in the financial markets who saw the crisis unfolding were those for whom patience is a strong component of their personality. In many cases, their career doesn’t depend on making cash today, but is more concerned about avoiding mistakes by being too reckless. These right-brained people are typically more intuitive, and likely to contemplate historical events when it comes to analysis. As Grantham notes, they are more interested in outlier events and are curious about the whole picture, not just the individual jigsaw pieces. In many ways, they get there, but arrive slowly and circuitously to their conclusion.
However, even though the right-brained people were more likely to have foreseen the crash, it doesn’t follow that the right-brained people are the best ones to get us out of this mess. We still (and possibly urgently) need the lefties with their focus, decisiveness and linear minds, who when given the task will execute. Maybe we just need the more ponderous righties to advise them.
How might this be relevant in Ireland as we face a political and economic crisis? Obviously, in terms of the urgent restructuring of our banking system, the Minister for Finance might do well to stack the new bank boards with right-sided leaders who have perspective, while keeping some of the Alpha-male lefties to execute orders. Likewise, in terms of running this country, he needs the doers as well as the thinkers.
One thing is certain: the people who will lead Ireland out of this catastrophe are not the same people who got us into it. The sooner this is realised the better.
You’ll find a lot of these kind of people living on the streets or similarly dispossessed by society. There is no room for these kind of people in society today and there hasn’t been for a long time. The present forms of school, college, work, and society in general will knock it out of you.
For a long time now, society (specifically, our economic system) has rewarded the industrious, resolute, proud, covetous, prompt, methodical, sensible, unimaginative, insensitive, and ignorant.
You get dumped on for being idle, reckless, humble, thoughtful, imaginative, sensitive, well-informed, improvident, impulsive, merciful, just, godly…
David, to paraphrase your statement , left handed people are Superior and if they were in charge none of this mess would have happened in the first place. I couldn’t agree with you more.
I think that maybe you confused pig headed arrogance with brains. Left/right is an old way of looking at it. The brain is more complex and less understood than pretty much anything else in the universe. Saying that people are one kind over another is a result of intelligence and independence of thought being beaten out of you through schooling not as an innate trait. We need constructivly lazy people to get us out of this. Industrious and earnest people got us into the mess by championing and fighting the wrong battles. Even if you win the battle its not… Read more »
Hired hands during a boom go with the flow and both claim credit for the business cycle and are given it by the media and other groupies. The memory of the current crisis and the externalities – the expectations of the market, reaction of regulators will shape how CEOs work over the next decade – whether they are left or right brained. The late UK fund manager Tony Dye was fired just a week before the Nasdaq peaked at 5010 in March 2000, because he was bearish on tech stocks and refused to include them in portfolios. Warren Buffett had… Read more »
David said “our leaders are most likely to be those whose left side of the brain dominates. These traits are decisiveness, hard work, focus, persuasiveness, analytical skills and political skills.” To reach the very top of a multi-national corporation one needs to have made use of all these skills, perhaps with the exception of decisiveness. in high-level meetings it is much safer to allow decisions be reached by consensus, or by a subordinate who can be fired if it becomes viewed as mistaken policy. Close to the top hard work is greatly subordinate to political skills, intelligence, contacts and judicious… Read more »
FT columnist John Kay, who also doubles as a business school prof. writes today: “By describing Napoleon’s Russian campaign through the eyes of individual participants, Tolstoy rejected the notion of history as the lives of great men. Of the battle of Borodino, he wrote: “It was not Napoleon who directed the course of the battle, for none of his orders was carried out and during the battle he did not know what was going on.”” Kay writes: “John Sculley was chief executive of Apple from 1983 to 1993. He gave an extended account of his experiences to Fortune magazine, which… Read more »
I think that the banks directors should most certainly be sacked because they have falsely proped up the property market to such an extent that they can’t afford for prices to drop too much even though they should drop a hell of a lot. If prices drop negitave equity will increase and so will defaults and so banks will suffer. Even now Permenat TSB have a product called “HELPING HAND!” which basicaly alllows young naive 1st time buyers to borrow based on their salary and their parents salary with the family home as a guarentte!!!!!!! That is so wrong for… Read more »
I think it was on here that someone coined a new phrase for this Island “eat-your-own-land”. I think we will continue to do this, because the big time Charlie and cute hoore are still held in high esteem in Ireland. They will continue to get that pat on the back for being able to make money at the expense of someone else, rather than by providing a useful service to the community, or the economy, this is how we have been brought up, along with our drinking culture, it is nothing to be proud of.
The government, judging by last night’s prime time, are bereft of any lateral thinking – they’re intent on digging deeper into the same old property hole. Edward de Bono was the pioneer of lateral thinking and a hero of mine, but his latest solution for the property market’s woes is a bit peculiar – is self-interest clouding his judgement?
http://www.edwdebono.com/
Fundamentally, the change here is one where we have reached what I term a r’evolutionary age – evolving people and organisations through the power of relating. An age when things have shifted from a pure competition and dominance structure to one more suited to collaboration, connection and co-creation. The survivalist and dominance mode of the ‘lefties’ is being replaced by a more synergistic (and right-brained) view of the world. No one person is going to pull us out – its down to the combined efforts of the many. In corporate terms this mess was created by ‘managers’ – automated ‘functionaries’… Read more »
Seán Weafer> This is the time for the re-birth of leaders – people who can lead through serving and inspiring the people around them and who ’sell the message of change’ and get people to buy-into that change. The new ‘game-changers’. Seán this is like a promo for the aspiration industry or a rebranding of some fad like reengineering! Outside of specialist areas such as R&D, the old hierarchical model will continue to dominate and managers will continue to be the usual mix of brilliant, inspiring, moronic, examples of the Peter Principle, bigots and so on. >R’evolutionary days indeed More… Read more »
“Tough times never last, tough people do” – Dr. Robert Schuller In the context of the times we face, I think that the above quote is very appropriate. David, I agree that those who got us into the mess are not the ones to get us out of it. Those that got us to where we are now are those that succumbed to the temptation of short-term gain. What we need now is true leadership that enables us to take-on the tough times head-on so that in the future we can once again enjoy prosperity (hopefully in a much more… Read more »
I’d say Sean Fitzpatrick roared like a speared bull when he read that article this morning. Good man DMcW for voicing what the whole country is saying. The very thrust of the article puts you firmly in the Political arena henceforth. Senator or independent European? You must follow that article with an open letter to the Government from all like minded economic commentators. But only the ones that riled Bertie and proved conventional thinking wrong. The senior citizens, teachers, farmers and all the other pressure groups will never gel totally. Not to the point of a general strike and even… Read more »
Brains are to be checked at the door is the way things work. Ireland is behind the curve on innovation but ahead of the curve on groupthink and social exclustion. Have a good idea in an Irish business and you are shown the door or are demoted.
1/10
BTW David, are you alluding to the use of Praxeology as a new control mechanism?
Interesting article. It goes straight to the point of intellectual development, problem solving and our current debacle as a society. It also goes above all the squabling going on at present, with the various vested interests all wrestling in an attempt to control government policy. State policy since Reynolds stepped down as Taoiseach in 1996, has become increasingly incoherent and messy. We need a straight talking, no-nonsense type leader to make necessary decisions with respect to the public sector problem in Ireland. We need a McSharry to do it, and a Dukes figure to support him until the job is… Read more »
RingoStar Roc – the price of building land in Ireland is determined by a bunch of players with oligolopistic intentions. Same applies in the motor industry. In the legal profession. In the medical profession. In the media. In banking. And then we have the public sector. The developers are doing the same thing as all the other sectors of the economy. It has gone completely out of hand. And nobody will do anything about it. Where is the Competition Authority ? We have a consumer agency that has the ex-Taoiseach’s ex-girlfriend on it. Nepotism is the glue that keeps it… Read more »
David: I hope the article is just a little bit of fun, as your left vs. right brain traits are over-simplistic. In fact having read several books on the subject (and being a fully paid up left hander bore), the left/right brain debate is a dangerous one to embark on glibly. The real crux of brilliance or holistic enlightenment that you allude to, in the main, would appear to be gifted to those whose left and right brains exhibit abnormally high interactivity. So it’s not whether you’re left or Right brained that counts but the ability of the brain to… Read more »
What are ye on about today David? Seriously!!
Nice post from @Mk in response to another novel DMcW article. Indeed may I further confirm that the left and right brain qualities reflect the opposite in political poles- where left brain is traditionally conservative and right brain more liberal and free thinking. (Though these political distinctions have been watered down in recent years, as seen in the virtually indistinguishable parties of new labour and the conservatives in the UK) However, any good society..or the society that people should really aspire too, should be about attaining a good balance of both. We have had a balance of these politically for… Read more »
All this “Brain” assessment presumes that the present leadership of the country are in possession of same.
I’ve seen learned response indicators but little evidence of independent cranial activity.
I think David called the lot of them thick, not to put too fine a point on it.
I think the ye are focusing on the wrong problem… Yes, we need all hands on deck. Yes, different people see things in different ways and can provide insights. Above and beyond that, I think its fair to say most people are smart enough and want to contribute but disengage when they see they are being used or fed bullshit by those in charge… Just witness the change in tone in comments here from positive/volunteering to downright negative in response to the governments guarantee as it became clear what was happening… I think the problem is how do we as… Read more »
Shane: You are absolutely right; everything from Epilepsy to Schizophrenia is closely related Left handedness/Right brain behavior. In fact I cheated a little in my post as I could have mentioned Jack the Ripper and a whole host of other unsavory lefties, but it would have slightly deflated my argument ;-) ..what it proves though is that Lefties are different, be they genius or infamous. To complicate things further, there are different degrees of Left-handedness, Do you use your left ear on your mobile, kick with your left foot etc etc. At this point I agree with Ruari above, as… Read more »
Heres more of it.
http://www.irishexaminer.com/irishexaminer/pages/story.aspx-qqqg=business-qqqm=business-qqqa=business-qqqid=76049-qqqx=1.asp
So it looks like the field was valued at 2bn in 2001, Shell paid 7bn for it in 2002. Add the 3bn development cost to bring the Shell exposure to 10bn. Valued today at 9bn.
Now either this is;
(a) complete propaganda
(b) Shell Corp are fools
(c) I can’t add
Furrylugs – I have a conspiracy theory on this. And it comes from people who live in the area, who circulated theories as to what is really going on. Shell are not telling us the truth. This is the essential point that the protestors in Bellanaboy are telling us. There is far more oil/gas in there than they are admitting. But they don’t want to be forced to admit it until Irish sovereignty in energy matters is superceded to Brussels. In a few years time the politically correct classes will have changed their attitude to corporate oil, and will have… Read more »
No conspiracy at all Deco. It’s all happening on the ground but the thing was pretty vocal and local until the Shinners started bussing in hard cases from Belfast.
A PR shambles from Shell fuelled by the belief that Certain Co Meath based ministers would control the yokels.
Lots of mis- and dis- information from both parties. It’s a mini civil war up there with family against family.
Another example of the D4 arrogance deployed outside the Pale.
Folks, might I suggest reading a book on EgoNomics. Says it all really – http://www.egonomicslive.com/ has some bumph on it. To often I feel, many of those who make decisions are never around to feel the consequences of their actions – merely the warm glow of someone else’s hard work. If I were to compare this with the work of a structural engineer – you have an individual who designs a solution that when built will remain standing for the duration of their career. Such guys are left/ right or whatever brained….but if they are still in business, they are… Read more »
Well summed up Phillip. I’d say we need a change of Government first. That will probably be precipitated by the Greens pulling out, a vote of no-confidence by Fine Gael, a mini-budget in Spring and a general election in May. FF have no stomach for the fight. They’ve had it easy for too long. A fresh (centre brained) government capable of multiple thought strands as opposed to singular profit taking. I’m optomistic too. This won’t be pleasant but we should, if the nation proves itself mature enough, be able to weed out or hobble these people who are effectively economic… Read more »
PS.
I’m surprised this blog hasn’t been shut down.
If they did we would be in the streets protesting
David, an interesting article as always, and also for the comments above. This left-brain, right brain stuff is interesting but I wonder. I have to say I know nothing much about the field of neurobiology, but my understanding is that the brain is not entirely plastic once developed. In fact there are reasonably frequent cases of people with significant brain injuries who’s brain activity has moved from a damaged region to an undamaged one, and of course there is the well known case of London cabbies abnormal brains due to their acquisition of ‘the knowledge’. There is even some evidence… Read more »
Oh, By the way DeValera was an immigrant. And I wouldn’t dare accuse him of anything bar hiding when the shooting was going on and trying to turn this place into an ultra conservative Fascist hell hole.
Interesting. I’m pretty strong on the left side, but also heavy in the intuition and patience camp too (INTJ). Like anything a good balance is needed. BTW, do none of these muppets believe in scenario planning? Save running around like a headless chicken.
Liam, if Bill Gates was Irish – he would have got up and left. Imagine him going to his local bank looking for a loan. The response would be ‘Listen – I know you are into software, but really that is just a nice hobby – maybe you could go and get a state job – and then we will give you a 100% home mortgage. We really think you should get on the property ladder before it is too late. We think you are a bit on the risky side”….. Furrylugs – you are correct about a certain minister,… Read more »
Philip – I am going to find EgoNomics and read it. I guess it is something similar to the BBC documentary “The Century of Self – an exploration of manufactured consent of the masses”. You can all see that documentary on u-tube. It is essential viewing for anybody who wants to be free and truly happy, in the modern world. It is a four part series. Have a look and pass to allthat you know….
The Century of self Part 1 of 4. When you reach episode 4, you will never listen to a television again….
http://video.google.com/videoplay?docid=8953172273825999151
Hi David, Leadership and how and who gets to positions of power is an interesting topic. Its a big topic too but suffice to say for now that the current method in place is seriously flawed. I’ll get back to it later. (one could write a book on it). > let’s point out that getting rich is not a crime. Well, perhaps getting excesively rich SHOULD be a crime, or at least made illegal or not possible. Tax the uber-wealthy, let them go elsewhere. Is inequality a value in society that we should promote? Probably not. Lets put it to… Read more »
Its seems Brian Cowen is of the right-side brain persuasion.
“http://www.rte.ie/news/2008/1030/economy.html
Taoiseach Brian Cowen has said we are battling the most severe global economic and financial conditions for 100 years and that Government cutbacks cannot be avoided.”
ROI is not even 100 years old yet, and certainly FF is not either.
…..perhaps there’s hope yet ?? At least he may be thinking outside of the box, or then again its probably just another feck-up!
@shannon scalder to @ringostar far above… Insurers are the only people who know the real value of property. But it should be obvious to all that a house is only ever worth what it takes to rebuild it again if it burns to the ground..plus some variable bonus percentages on top It is how I escaped the Irish property boom and bust. I looked keenly for property in Dublin but what was presented to me simply was not worth the value placed on it…, The actual bricks and mortar cost was being obscured. No popular opinion or media blurb could… Read more »
Have a look at this folks.
The two Brians must be shaking in their boots. The revolution has started on the internet..
http://www.thepropertypin.com/viewtopic.php?f=4&t=14827
People are challenging the legality of the governments attempt to create a price floor in the residential property market.
FF are replacing the Angelus with a new prayer…….allegedly Wherefore rejoice? What conquest brings the Unbelievers home? What tributaries follow the Blueshirts home, To grace in captive bonds their chariot-wheels? You blocks, you stones, you worse than senseless things! O you hard hearts, you cruel men of the Pale, Knew you not Dev? Many a time and oft Have you climb’d up to walls and battlements, To towers and windows, yea, to chimney-tops, Your infants in your arms, and there have sat The livelong day, with patient expectation, To see great Bertie pass the street of O’Connell: And when you… Read more »
Dunno about left brain or right brain, but the IDA are running a series on the CNBC business channel called “The Irish Mind”.
You can read the transcripts and watch the series on line here:
http://www.theirishmind.com/
Apparently we are social, creative, anti establishment etc etc the usual stuff .. you could put guess most of it yourself.
Anyway, the series is well worth looking it. For the purpose of attracting so called 4th level investing, I think its well done.
(and before you cynical bunch start, I have no connection to the IDA)
”…………….. let’s point out that getting rich is not a crime.” Embezzle comes in all shapes and shades of grey (area) So in that sense getting rich at the misfortune/expense of others is a definite crime in my book, and in other books too I’ve no doubt. Direct lending to people knowing or neglecting to find out that they really can’t pay it back (in a lifetime never mind the fact: they haven’t got a good or permanent job) and selling can’t be separated in a business like the property market, it’s all too closely linked to not know what… Read more »
100% Correct @paddy. The influence of Hollywood in the 1940s and 50s, when America led the world specifically in just about everything but all things were marked “quality”- simply has not peeled away from our brains. We continue to see America as a great shining light that reflects benevolently on the dark and dusty old oppressor of Europe. It’s been the great dream and great escape for so long that we just can’t seem to grasp that it simply ain’t like that no more- and hasn’t been effectively since around the time John Wayne died (which is symbolic in itself!)… Read more »
Thank you Ire in exile. I read you comment quickly and (noticed at the end you gave me a 100% correct) thought: “I wish I had written those words for in truth they are 100% spot on.” Living here in Finland I am amazed by the Finns adoration of America including their raciest traits which is a topic for another day. They are like the Swedes who they secretly hate (like all foreigners) making a gradual witch to the right, but it is in favor of the American business model. What is wrong wirh people, do they not se it… Read more »
Trick or Taoiseach? Brian Cowen said we are battling the most severe global economic and financial conditions for 100 years and that Government cutbacks cannot be avoided, so the business sector, trade unions and the social partners need to stand up now and tell people what the situation is.
Oh Really? I suppose there are a few culchees in Ballyboneen for whom the pinean hasn’t actually dropped yet. But it doesn’t need all the big guns in the country to tell us all that we’re doomed. Just an apologetic TV fireside chat by Cowen himself.
Don’t wait up for it.
jose antonio – I had a quick scan at the web site ‘the Irish Mind’ You are right is a promotion. It is definitely not accurate. I mean where are all the corrupt elements, the substance abuse, the depression, the mind destruction, the contempt, etc….
The problem is that we have an awful lot of people in this country who beleive in this sort of nonsense. Apart from anything else our contemporary proto Consumerist-Anglo-American culture seems to be obliterating any remaining genius in this society.
Whether we like it or not, America has led the world in a lot of things and it seems in financial cockups as well. I think it a bit churlish to write them off or discount them out of hand. There is a lot wrong there. But a lot works well there too. That said, I do feel they have lost the lead in too many things over the years. They are positive to a fault in the sense that they deny all existance of wrong doing. They have become the masters of euphemism and bull and it’s caught up… Read more »
I keep hearing “Honesty” is the best policy. Honesty: the quality of being truthful and trustworthy. Truthful and trustworthy to who the Third Reicht? You can’t be faithful to an ideal which is only a conception and not an absolute perfection. Truthful and trustworthy just don’t cut it. Responsibility and caring is what cuts it. Being responsible not just for the field you’re in but in a broad communal sense, a global sense. People have to stop thinking they’re part of some God given right to be better off because ……. ……… ? ……. they’re smarter; their father was an… Read more »
OK a sixth there abouts.
America has had three good presidents in my time, Kennedy, Regan and Clinton; the rest were out of their depth. The country is completely unable to cope with catastrophes like the Kennedy and ML King assassinations, 9/11 and Hurricane Katrina. Their politicians rush about in every direction and the whole country goes to pot. Now they are in a financial hole and ‘Good ole boy’ Texan Republicans, already resigned to an Obama presidency, sneer at him as the ‘Janitor President’, well suited by his background to clear up the mess. What they are really worried about in this election is… Read more »