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Leadership and the Brexit Ballyhoo
February 12th 2019
(OR: 5 dodgy reasons why political and business leadership is different.)
In these surreal days of ticking clocks and dogās Brexit, there are reams, understandably, written about the politics ā yet quite a bit less on what lessons we might be learning as businesses from the political leadership we are currently experiencing. I find this a bit puzzling. Is political leadership so different from business leadership? Or are we waiting until after 29th March deadline date before we draw breath and give our āI told you so!ā views. It seems to me itās never too early to draw lessons in leadership and reflect on how this real-life current drama might deepen our thoughts and our actions on leading in our own organisations.
Michael Skapinker from FT wrote on this late last year. He called out the difference between political leadership and business leadership, pronouncing that āBrexit shows why CEOs cannot be political leadersā https://www.ft.com/content/1c926794-ebf7-11e8-8180-9cf212677a57. Businesses, whilst playing a useful role in pointing to no-deal exit stayed too quiet at 2016 referendum time, said Michael. This shows, claims he, why we should not count on business leaders to take a political lead. His five reasons posted below, contain some brave/cheeky/controversial statements that would generate an interesting leadership learning discussion for any organisation. It is of course true that business leaders are about leading their companies, serving their customers and investors. Their job is not about political intervention. But can we separate them and their motivations so starkly from our current political bind? Business and politics are two very intertwined worlds, not parallel universes, it seems to me. The recent Nissan decision to cancel their X-Trail model in UK demonstrates just how close these worlds are, and the impacts they have on one another. And business people Iāve spoken to recently tell me the idea of separating CEOs from political leaders is nonsense, because business influences politics as much as politics influences business.
So, to his five famous statements. Would you agree or disagree for your own organisation, your own leadership style (if that is what you do), and how you view your leaders? (Quotes from Michael Skapinker are in italics). I donāt expect answers on digital postcards. But it certainly raised lots of questions in my head about how current leaders view their responsibilities when it comes to their own organisations, and the national and global political environments in which they interact. Dogs Brexit days are over - not quite yet.
1. Business leaders lack insight: ā[Business leaders] ⦠do not generally know a huge amount. I have discussed politics with business leaders for years. I have not come across many with greater insight into current events than the averagely well-read person.ā
2. Business leaders bottle out: ā[Business leaders] ⦠are too timid. Most are reluctant to upset their customers. On divisive issues, such as Brexit, they prefer to keep quiet until⦠it is almost too late. They almost certainly overstate the dangers of standing up when it matters. They are unlikely to suffer any damage. Most putative consumer boycotts fizzle out as people are more interested in quality, availability and, especially, price.ā
3. Business thinking is too short term: āBusiness is too narrowly focused. Many UK business leaders appear happy to pocket the two standstill years of the transition period, with the hope that it may be extended. Few appear to be looking ⦠to the long-term relationship that the UK will have with the EUā¦.It is unusual for business to point to the long-term possibilities when politicians have failed to do so. A rare example came when South African business leaders, under apartheid, made contact with the African National Congress and worked to persuade the government that its banned opponents were open to a deal. It is difficult to think of many other instances of business being ahead of events.ā
4. Business leaders have no moral compass: āThe demands of business sometimes cause its leaders to misplace their moral compasses. Look at Facebookās admitted slowness in tackling Russian disinformation on its platform. In search of sales, some companies have been too ready to tie themselves to disreputable governments. BAE has longstanding ties to Saudi Arabia. KPMG and McKinsey entangled themselves with those surrounding Jacob Zumaās corrupt government in South Africa.ā
5. Business is not democratically accountable: āWe can push companies to be more responsible or to take greater care of the environment but, in the end, it is only regulation, exposure and rules requiring better governance that ensure business behaves better. The political class, in many countries, may have failed us. But the cure for that is better politicians. Business leaders cannot take their place.ā How do you see your own role as a leader?

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