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Showing posts with label leader. Show all posts
Showing posts with label leader. Show all posts

Thursday 30 August 2012

Andrew Strauss: more straight bat than flashing blade


Robert Colville in The Telegraph
One of humanity’s besetting sins is that we’re addicted to charisma. Besotted by it, even. We look for the leader with the movie-star looks, the resounding oratory – the sheer, obvious talent. A Steve Jobs can behave abominably to his underlings, can decide that deodorant is for the little people, and still we swoon.
But is this really a good idea? Over the past few decades, English cricket has been conducting what might be termed an uncontrolled experiment in management theory. The lab rats in question have been those poor souls faced with the uniquely impossible demands of the national captaincy: helping to select a team, motivating the players, producing tactical plans and modifying them on the fly, coping with media scrutiny, and all the while maintaining their own level of performance.
Sometimes, there has been an obvious candidate – as yesterday, when Alastair Cook accepted the job with the air of a crown prince assuming his birthright. Cook, like Mike Atherton, was an “FEC”, a player always earmarked as a Future England Captain. But in their absence, the authorities invariably haver between charisma and character. For every Mike Brearley, whose man-management skills lay behind Ian Botham’s destruction of the Aussies, there is a – well, an Ian Botham, who had only just resigned the captaincy after a miserable tenure.
The temptation is often to hand the leadership to the player who shines the brightest, to a Botham or an Andrew Flintoff or Kevin Pietersen, in the (usually forlorn) hope that he can galvanise others with his sheer ability. There is, however, another path. Andrew Strauss, who resigned as captain yesterday, shares Pietersen’s South African birthplace, yet is his opposite in terms of character, temperament and playing style. Pietersen is the stupendously athletic strokemaker. Strauss is the man who had to work for his place, for his captaincy, for every one of his 7,037 Test runs.
As an England novice, he was “Lord Brocket” and “PT” (the P stands for “Posh”; the T is less kind). He failed an audition for the captaincy, losing out to Flintoff, only getting the job after Pietersen’s intrigues against the then coach resulted in both losing their jobs.
Here’s the strange thing, though. As a leader, Pietersen was a flop: on a tour of India, wrote team-mate Graeme Swann in his autobiography, the superstar was briefly reduced “to a period of screaming '----ing bowl ----ing straight’ at everyone”. It was his replacement as captain who led England to back-to-back Ashes victories (the second gloriously crushing), and briefly to the status of No 1 in the world.
Strauss would perhaps not make the short list for history’s greatest captain: as well as the many Australian or West Indian contenders, there is Graeme Smith of South Africa, who finished off not just Strauss’s captaincy, but those of Michael Vaughan and Nasser Hussain too. Even in purely English terms, Vaughan probably eclipses his former lieutenant for his hint of unorthodoxy, his tactical flair.
Strauss, though, is the man you trust to get the job done – the one to lead a polar expedition, to do everything by the book, and to bring his men back alive. “Strauss is one of those guys who demand respect,” writes Swann, “and on a daily basis you never really fathom why. He just does. He always says the right things, whether it be in team meetings or press conferences, and his word is never questioned.” Except by Pietersen, who disliked his captain so much that he reportedly advised the South Africans on how to get him out.
Was it a failure that Strauss, and coach Andy Flower, could not reconcile this wayward genius to a regime of grinding perfectionism? Perhaps. Yet surveys of what makes for a great corporate leader tend to look surprisingly like profiles of Andrew Strauss. In her book Quiet – which argues that flashiest is not always best – Susan Cain observes that true greats display “extreme humility coupled with intense professional will”: they are not messianic Steve Jobs types, but those “who build not their own egos, but the institutions they run”.
The rivalry between Strauss and Pietersen, then, incarnates not just the great divide within English cricket, but in leadership more generally. Study after study has shown that we pay attention to those who shout the loudest, who make the boldest claims. In the process, we wildly overestimate the role of pure luck and the contribution of others.
True, charisma does have its place. Yet for all that it would be wonderful to see Pietersen light up Lord’s again, it seems somehow fitting that he and Strauss, yin and yang, are locked together on 21 Test centuries, one behind the national record. At the start of his career, you would have found few takers for Strauss ending up in a position of such pre-eminence. But then, as Iain Duncan Smith once noted, you should never underestimate the determination of a quiet man.

Tuesday 6 December 2011

Why Is Economic Growth So Popular?


By Ugo Bardi
26 November, 2011
Cassandra's legacy

When the new Italian Prime Minister, Mr. Mario Monti, gave his acceptance speech to the Senate, a few days ago, he used 28 times the term "growth" and not even once terms such as "natural resources" or "energy". He is not alone in neglecting the physical basis of the world's economy: the chorus of economic pundits everywhere in the world is all revolving around this magic world, "growth". But why? What is that makes this single parameter so special and so beloved?
 
During the past few years, the financial system gave to the world a clear signal when the prices of all natural commodities spiked up to levels never seen before. If prices are high, then there is a supply problem. Since most of the commodities we use are non-renewable - crude oil, for instance - it is at least reasonable to suppose that we have a depletion problem. Yet, the reaction of leaders, decision makers, and economic pundits of all kinds was - and still is - to ignore the physical basis of the economic system and promote economic growth as the solution to all our problems; the more, the better. But, if depletion is the real problem, it should be obvious that growth can only make it worse. After all, if we grow we consume more resources and that will accelerate depletion. So, why are our leaders so fixated on growth? Can't they understand that it is a colossal mistake? Are they stupid or what?

Things are not so simple, as usual. One of the most common mistakes that we can make in life is to assume that people who don't agree with our ideas are stupid. No, there holds the rule that for everything that exists, there is a reason. So, there has to be a reason why growth is touted as the universal cure for all problems. And, if we go in depth into the matter, we may find the reason in the fact that people (leaders as well as everybody else) tend to privilege short term gains to long term ones. Let me try to explain.

Let's start with observing that the world's economy is an immense, multiple-path reaction driven by the thermodynamic potentials of the natural resources it uses. Mainly, these resources are non-renewable fossil fuels that we burn in order to power the whole system. We have good models that describe the process; the earliest ones go back to the 1970s with the first version of "The Limits to Growth" study. These models are based on the method known as "system dynamics" and consider highly aggregated stocks of resources (that is, averaged over many different kinds). Already in 1972, the models showed that the gradual depletion of high grade ores and the increase of persistent pollution would cause the economy to stop growing and then decline; most likely during the first decades of the 21st century. Later studies of the same kind generated similar results. The present crisis seems to vindicate these predictions.

So, these models tell us that depletion and pollution are at the root of the problems we have, but they tell us little about the financial turmoil that we are seeing. They don't contain a stock called "money" and they make no attempt to describe how the crisis will affect different regions of the world and different social categories. Given the nature of the problem, that is the only possible choice to make modelling manageable, but it is also a limitation. The models can't tell us, for instance, how policy makers should act in order to avoid the bankruptcy of entire states. However, the models can be understood in the context of the forces that move the system. The fact that the world's economic system is complex doesn't mean that it doesn't follow the laws of physics. On the contrary, it is by looking at these laws that we can gain insight on what's happening and how we could act on the system.

There are good reasons based in thermodynamics that cause economies to consume resources at the fastest possible rate and at the highest possible efficiency (see this paper by Arto Annila and Stanley Salthe). So, the industrial system will try to exploit first the resources which provide the largest return. For energy producing resources (such as crude oil) the return can be measured in terms of energy return for energy invested (EROEI). Actually, decisions within the system are taken not in terms of energy but in terms of monetary profit, but the two concepts can be considered to coincide as a first approximation. Now, what happens as non-renewable resources are consumed is that the EROEI of what is left dwindles and the system becomes less efficient; that is, profits go down. The economy tends to shrink while the system tries to concentrate the flow of resources where they can be processed at the highest degree of efficiency and provide the highest profits; something that usually is related to economies of scale. In practice, the contraction of the economy is not the same everywhere: peripheral sections of the system, both in geographical and social terms, cannot process resources with sufficient efficiency; they tend to be cut off from the resource flow, shrink, and eventually disappear. An economic system facing a reduction in the inflow of natural resources is like a man dying of cold: extremities are the first to freeze and die off.
Then, what's the role of the financial system - aka, simply "money"? Money is not a physical entity, it is not a natural resource. It has, however, a fundamental role in the system as a catalyst. In a chemical reaction, a catalyst doesn't change the chemical potentials that drive the reaction, but it can speed it up and change the preferred pathway of the reactants. For the economic system, money doesn't change the availability of resources or their energy yield but it can direct the flow of natural resources to the areas where they are exploited faster and most efficiently. This allocation of the flow usually generates more money and, therefore, we have a typical positive (or "enhancing") feedback. As a result, all the effects described before go faster. Depletion can be can be temporarily masked although, usually, at the expense of more pollution. Then, we may see the abrupt collapse of entire regions as it may be the case of Spain, Italy, Greece and others. This effect can spread to other regions as the depletion of non renewable resources continues and the cost of pollution increases.

We can't go against thermodynamics, but we could at least avoid some of the most unpleasant effects that come from attempting to overcome the limits to the natural resources. This point was examined already in 1972 by the authors of the first "Limits to Growth" study on the basis of their models but, eventually, it is just a question of common sense. To avoid, or at least mitigate collapse, we must stop growth; in this way non renewable resources will last longer and we can use them to develop and use renewable resources. The problem is that curbing growth does not provide profits and that, at present, renewables don't yet provide profits as large as those of the remaining fossil fuels. So, the system doesn't like to go in that direction - it tends, rather, to go towards the highest short term yields, with the financial system easing the way. That is, the system tends to keep using non renewable resources, even at the cost of destroying itself. Forcing the system to change direction could be obtained only by means of some centralized control but that, obviously, is complex, expensive, and unpopular. No wonder that our leaders don't seem to be enthusiastic about this strategy.

Let's see, instead, another possible option for leaders: that of "stimulating growth". What does that mean, exactly? In general, it seems to mean to use the taxation system to transfer financial resources to the industrial system. With more money, industries can afford higher prices for natural resources. As a consequence, the extractive industry can maintain its profits, actually increase them, and keep extracting even from expensive resources. But money, as we said, is not a physical entity; in this case it only catalyzes the transfer human and material resources to the extractive system at the expense of subsystems as social security, health care, instruction, etc. That's not painless, of course, but it may give to the public the impression that the problems are being solved. It may improve economic indicators and it may keep resource flows large enough to prevent the complete collapse of peripheral regions, at least for a while. But the real attraction of stimulating growth is that it is the easy way: it pushes the system in the direction where it wants to go. The system is geared to exploit natural resources at the fastest possible rate, this strategy gives it fresh resources to do exactly that. Our leaders may not understand exactly what they are doing, but surely they are not stupid - they are not going against the grain.

The problem is that the growth stimulating strategy only buys time (and buys it at a high price). Nothing that governments or financial traders do can change the thermodynamics of the world system - all what they can do is to shuffle resources from here to there and that doesn't change the hard reality of depletion and pollution. So, pushing economic growth is only a short term solution that worsens the problem in the long run. It can postpone collapse but at the price of making it more abrupt in the form known as the Seneca Cliff. Unfortunately, it seems that we are headed exactly that way.

[This post was inspired by an excellent post on the financial situation written by Antonio Turiel with the title "Before the Wave" (in Spanish). ]

Ugo Bardi is a professor of Chemistry at the Department of Chemistry of the University of Firenze, Italy. He also has a more general interest in energy question and is the founder and president of ASPO Italia.
 

Wednesday 24 August 2011

Anna - the way ahead, please move beyond NGO speak

 Anna Hazare is right.

The fight to rid India of corruption has only just begun. Fuelling outrage is easy. Channelling it democratically towards solutions requires real leadership.

Having won a spectacular victory in popular sentiment, Anna and his team now have to show they understand their responsibilities. They have to move on from NGOspeak and vaulting personal ambitions to the nitty-gritty of nation and confidence building.
Nelson Mandela, who was inspired by Gandhi, said a true leader is one who carries his opponents and friends along in pursuit of a goal.

More importantly, a true leader knows when his job is over and he must leave the stage. I am not sure Anna and his team will stop and listen. Law making succeeds when the historical time necessary for a debate to mature and the political time to capture that knowledge in a body of law meet. Policy work that precedes law making is often work in progress. Experience shows that five key stakeholders — the government, the media, NGOs, academic institutions and the corporate sector — play clearly defined roles in shepherding this process that includes framing issues correctly.

We need to see some confidence-building measures from Anna’s team — a task that can be easily carried out by their second and third rung leadership. Having wrenched the moral high ground from the government, Anna and his team would set a very healthy precedent if they could share a few of their learnings with the nation.

One is to tell us how, in a record time of a few months, they built their knowledge base to arrive at the conclusion that they speak for the nation that wants their version of the Lokpal bill to be passed immediately.

Secondly, it would be very helpful to know their selection criteria for fundraising and how they manage vested interests from donating to their cause. India Against Corruption has posted some lists on the website.

It’s a small start. If Anna could ask all his associates and donors to do the same, our confidence in him will grow. Failing to do so would leave the door open for attacks as the debate moves on to the level that Anna has identified as the fight to finish.

Many of the protesters want jobs. At a time when our economic indicators are a cause for concern, a second confidence building measure would be to tell us what role Anna and his team see for the corporate sector in building a robust economic space for the nation. Is it their final word that economic liberalisation is the root of all evil and that the corporate world is a mafia that is responsible for a lot of what ails India today?

Since some of the leaders with Anna accept corporate funding, it would be helpful if their criteria for differentiating between good and bad corporates could be posted online as a service to the nation. Since they will also require the support of legal luminaries and other NGOs, we come back to confidence building measures that is expected of all good politicians and statesmen.

As a third confidence building exercise and using the Jan Lokpal bill as an example, Anna and his team should tell the nation how they would have dealt with one of the many major scams in front of us or how would secure corruption free jobs for the deserving. It could be a Jan Lokpal roadmap to justice. This is not a hypothetical question. It is real time learning.

The government has no credibility on this issue. This is a historical moment for us. Anna has won hands down in the people’s court.
It is therefore expected of him to now go beyond flag waving, show statesmanship and governance, and convert this grand and popular victory into a robust nation building exercise engaging transparently not just with the media but with all sectors and people who have a stake in making India corruption free.

Having raised expectations all around, Anna and his team now have to prove with every act and word that they are right when they say they have earned the right to lead. The nation is waiting with bated breath.

Chitra Subramaniam Duella is founder, CSD consulting, Switzerland, a business development company that promotes ethical businesses practices. She is also a former award-winning journalist and author.
 
DNA / Chitra Subramaniam Duella / Wednesday, August 24, 2011 10:30 IST
 
URL of the article: http://www.dnaindia.com/analysis/report_chitra-subramaniam-duella-anna-move-beyond-ngospeak_1579121-all
Permission to reprint or copy this article or photo must be obtained from www.3dsyndication.com

Tuesday 2 August 2011

Why do political leaders stride into the same trap, even having witnessed the fate of those who went before them?

Steve Richards: History repeats itself in Libya


Tuesday, 2 August 2011 in The Independent
 
Some of the best thrillers depend on the audience knowing in advance that a deadly outcome is unavoidable. We sit, watch and wait, gripped with fear as the inevitable end looms. And often the characters suspect they are making the wrong moves but cannot stop themselves from doing so.

The same pattern applies in politics. Governments tend to make the same colossal mistakes as their predecessors. Leading figures recognise the errors when they were committed the first time around but then proceed to make a similar set of misjudgements. It's as if they are trapped by dark forces beyond their control.

This is what has happened with David Cameron's response to the crisis in Libya. He watched the first time around, recognised the mistakes and repeated them. The invasion of Iraq was on a much bigger scale and conducted without the support of the UN. Nonetheless, there are precise parallels with Libya. George Bush and Tony Blair invaded Iraq without having a clear outcome in mind. Their official war aims as far as they were specified did not include the removal of Saddam, although that was the outcome they hoped for.

Both leaders assumed that Iraqis would welcome them as liberators and that democracy would follow. As with the earlier war in Afghanistan, Blair declared that financial costs would be relatively low. In the build-up to Iraq, most newspapers hailed Blair for his political courage, even though he was siding with the most powerful military force in the world against an ageing tyrant. We know what followed.

More importantly, David Cameron knew what followed. Friends of Cameron insist he had deep doubts about the war in Iraq at the time, although he voted for it. Later, as Leader of the Opposition, he made one of his best speeches, during which he argued that a lesson of Iraq was that countries could not be bombed into democracy. With Cameron it is not always easy to judge whether he meant what he said or was seeking crudely to widen his party's appeal by belatedly marking distance for Iraq. Still, that was what Cameron argued, in an extensively briefed speech. I recall talking to him at length about it at the time. We must presume he recognised complexity and nuance as the calamity of Iraq unfolded.

Yet earlier this year Cameron rushed to the Commons to make an emergency statement. He supported a no-fly zone over Libya and had taken the lead in securing it. The aim was to protect the Libyans but he hoped the outcome would be the removal of Gaddafi, although this was not an objective. The cost would be a few million pounds. In large parts of the media Cameron was hailed for his leadership and courage.

A few months later and we are in another familiar phase of the pattern. The dictator is still there. The alternative might well be as unsavoury. Questions are being asked about why military action is taken in Libya, but not in Syria.

Here the Defence Select Committee estimates the costs of the campaign have exceeded early predictions and have already risen to beyond £200m. There is no end to the conflict in sight, so that figure will continue to rise. The same committee calculates that the cost of Afghanistan to the UK Government has been at least £18bn and it is probably a lot more than that.

Cameron and George Osborne argue that spending went out of control in the early years of this century. They may have a case, but in terms of the specifics they supported all the areas where expenditure rose. One of them was the cost of fighting major wars. Here we go again.

Why do political leaders stride into the same trap, having resolved not to do so when witnessing the fate of those that went before them? Cameron is not the first to do so. On the domestic front in the 1970s there was a similar eerie pattern. Ted Heath got into fatal difficulties as he attempted to impose a pay policy. His opponent, Harold Wilson, was scathing until he won an election. Shortly afterwards, he also imposed one. Jim Callaghan was also sceptical but succumbed in the same way and was brought down by it. In the end, all three Prime Ministers followed the same deadly route having resolved not to do so. They could see no alternative. They were too scared of breaking with corporatist orthodoxy. Having been brought up politically in the 1930s, they feared the social and economic consequence of high unemployment.

On Libya Cameron could see no alternative. He feared a slaughter. He is the heir to Blair and as he contemplated what to do about Libya, he reflected on his hero and what he would have done. Cameron was brought up politically at a time when Britain deployed military force without asking too many awkward questions. Now he is trapped, just as the leaders in the 1970s were in relation to their economic policies.

I make no prescription as to what outsiders can do to tame selected tyrants but we know from recent conflicts what does not work. Or do we? We are about to do so. Orthodoxies change and leaders learn, but after knowing the risks involved, they still make the same miscalculations as those who preceded them.