Closing

Endnotes

ⁱ British Petroleum, Deepwater Horizon: Accident Investigation Report, September 8, 2010; National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, Deep Water: The Gulf Oil Disaster and the Future of Offshore Drilling, January 11, 2011; Michael Lewis, The Big Short: Inside the Doomsday Machine, Norton, 2011; Andrew Ross Sorkin, Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System— and Themselves, Viking Press, 2009; Bethany McLean and Joe Nocera, All the Devils Are Here: The Hidden History of the Financial Crisis, Portfolio, 2010.

ⁱⁱ Peter Elkind and Jennifer Reingold with Doris Burke, “Insider Pfizer’s Palace Coup,” Fortune, August 15, 2011.

ⁱⁱⁱ Gerald F. Davis, Managed by the Markets: How Finance Re-Shaped America, Oxford University Press, 2009; Michael Useem, Investor Capitalism: How Money Managers Are Changing the Face of Corporate America, Basic Books/HarperCollins, 1996; Michael Useem, “Corporate Leadership in a Globalizing Equity Market,” Academy of Management Executive, 12, 1998, pp. 43-59.

^iv Michael Useem, “The Business of Employment: Time to Revise Investor Capitalism’s Mantra,” Washington Post On Leadership, August 9, 2011 (http://www.washingtonpost.com/national/onleadership/the-business-of-employment-time-to-revise-investorcapitalisms-mantra/2011/08/09/gIQAh8rs4I_story.html).

^v For a case on the rescue by Rodrigo Jordán, Matko Koljatic, and Michael Useem, “Leading the Rescue of the Miners in Chile,” Wharton School, Business Case, 2011 (http://kw.wharton.upenn.edu/wdp/files/2011/07/Leading-the-Miners-Rescue.pdf). A special exhibit on the rescue, “Against All Odds: Rescue at the Chilean Mine,” was opened by the Smithsonian Institution and the Embassy of Chile at the National Museum of Natural History in Washington in August, 2011 (http://www.si.edu/exhibitions/ details/Against-All-Odds-Rescue-at-the-Chilean-Mine-4694). For an article that more fully examines the leadership of Laurence Golborne, see Michael Useem, Rodrigo Jordán, Matko Koljatic, “33 Below: Learning Crisis Leadership from the Rescue of the Miners in Chile,” MIT Sloan Management Review, Fall, 2011 (http://sloanreview.mit.edu/the-magazine/2011-fall/53106/how-to-lead-during-a-crisis-lessonsfrom-the-rescue-of-the-chilean-miners).

^vi The film: 9/11: The Filmmakers’ Commemorative Edition, filmed by Jules Naudet and Gedeon Naudet, directed by James Hanlon, Jules Naudet, Rob Klug, 2002.

¹ Among the organizations are Abbott Laboratories, Accenture, ADP, American Express, Amgen, Berkshire Partners, Canadian Imperial Bank of Commerce, Cargill, CEO Academy, China Minsheng Banking Corporation, Citigroup, Cisco Systems, CITIC Bank (China), Coca-Cola, Columbia Energy, Comcast, Computer Sciences Corporation, Daimler, Deloitte, DuPont, Entergy, Eli Lilly, Estée Lauder Companies, Federal Executive Institute, Fidelity Investments, GlaxoSmithKline, Goldman Sachs, Google, Grupo Santander (Chile), Hartford Insurance, Hearst, Hewlett-Packard, HSM, IBM, ICICI Bank (India), Intel, Johnson & Johnson, Kimberly-Clark, KPMG, Liberty Mutual Insurance, Lucent Technologies, MassMutual, MasterCard, McGraw-Hill, Medtronic, Merck, Microsoft, Milliken, Morgan Stanley, Motorola, the National Football League, the New York City Fire Department, The New York Times Company, Nokia, Northrop Grumman, Novartis, Penske, Petrobras (Brazil), Petróleos de Venezuela, Pew Charitable Trusts, PricewaterhouseCoopers, Progressive Insurance, Raytheon, Samsung, Securities Association of China, Siemens, Singapore General Hospital, Sprint, 3Com Corporation, Thomson Financial, Toyota, Travelers, Verizon, United Healthcare, United Technologies, the UN Development Programme, the U.S. Department of Justice, the U.S. Department of Veterans Affairs, the U.S. Marine Corps, the U.S. Military Academy, and the World Economic Forum. I have also annually worked on leadership development with 100 to 200 students enrolled in the Wharton Executive MBA program.

² Albert Einstein, “On the Method of Theoretical Physics,” Philosophy of Science 1 (1934): 163—69.

³ Michael Useem, The Leadership Moment: Nine True Stories of Triumph and Disaster and Their Lessons for Us All (New York: Random House, 1998), 142—143; Joseph Harder, “Louis Gerstner and Lotus Development,” Business Case, Harvard Business School, 2000.

⁴ Howard Gardner with Emma Laskin, Leading Minds: An Anatomy Of Leadership (New York: Basic Books, 1996).

⁵ David F. Freedman, Corps Business: The 30 Management Principles of the U.S. Marines (New York: Harper Business, 1996); Michael Useem, “Four Lessons in Adaptive Leadership,” Harvard Business Review, November 2010; “Lead Time,” an interview with Warren Bennis, World Link magazine, January–February 1999.

⁶ Adam Bryant, “Never Duck the Tough Questions,” New York Times, July 17, 2011; Adam Bryant, “Imagining a World of No Annual Reviews,” New York Times, October 17, 2011. For leaders describing the capacities that have made the greatest difference to them, see Adam Bryant, The Corner Office: Indispensible and Unexpected Lessons from CEOs on How to Lead and Succeed (New York: Times Books, 2011); Mukul Pandya, Robbie Shell, and Nightly Business Report, Lasting Leadership: What You Can Learn from the Top 25 Business People of Our Times (Philadelphia: Wharton School Publishing and Boston: Pearson Education, 2004); Louis V. Gerstner Jr., Who Says Elephants Can’t Dance? How I Turned Around IBM (New York: HarperCollins, 2003); Bill George, Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value (Hoboken, NJ: Jossey-Bass, 2004); see also The New York Times “Corner Office” webpage, at http://projects.nytimes.com/corner-office, the Wall Street Journal’s “Lessons in Leadership” webpage, at http://online.wsj.com/public/page/lessons-in-leadership.html?mod=WSJ_topnav_na_business, and the Washington Post’s “On Leadership” webpage, at http://www.washingtonpost.com/national/on-leadership.

⁷ Peter Drucker, “Not Enough Generals Were Killed!” in The Leader of the Future, edited by Frances Hesselbein, Marshall Goldsmith, and Richard Beckhard (Hoboken, NJ: Jossey-Bass, 1996); Noel Tichy, The Leadership Engine: How Winning Companies Build Leaders at Every Level (New York: HarperCollins, 1997); Geoffrey Colvin, “How to Build Great Leaders,” Fortune, November 20, 2009; Hewitt Associates, Top Companies for Leaders, Hewitt Associates, 2009.

⁸ Frances Hesselbein, My Life in Leadership: The Journey and Lessons Learned Along the Way (Hoboken, NJ: Jossey-Bass, 2011); Daniel Goleman, “What Makes a Leader?” Harvard Business Review, November–December 1998, 93–102; Robert J. House, Paul J. Hanges, Mansour Javidan, Peter W. Dorfman, and Vipin Gupta, eds., Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies (Thousand Oaks, CA: Sage Publications, 2004); Mansour Javidan, Peter W. Dorfman, Mary Sully de Luque, Robert J. House, “In the Eye of the Beholder: Cross Cultural Lessons in Leadership from Project GLOBE,” Academy of Management Perspectives 20 (2006): 67–90. For examples of other academic assessments, see Nitin Nohria and Rakesh Khurana, eds., Handbook of Leadership Theory and Practice (Cambridge, MA: Harvard Business Press, 2010), and articles appearing in the Leadership Quarterly.

⁹ Michael Useem, Investor Capitalism: How Money Managers Are Changing the Face of Corporate America (New York: Basic Books/HarperCollins, 1996); Michael Useem, “How Well-Run Boards Make Decisions,” Harvard Business Review, November 2006, 130—38; Michael Useem and Andy Zelleke, “Oversight and Delegation in Corporate Governance: Deciding What the Board Should Decide,” Corporate Governance: An International Review 14 (2006): 2–12; Michael Useem, “The Ascent of Shareholder Monitoring and Strategic Partnering: The Dual Functions of the Corporate Board,” in Sage Handbook on Corporate Governance, edited by Thomas Clarke and Doug Branson (Thousand Oaks, CA: Sage Publications, 2012 [forthcoming]).

¹⁰ Robert J. House, Paul J. Hanges, Mansour Javidan, Peter W. Dorfman, and Vipin Gupta, eds., Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, Sage Publications, 2004; Javidan et al., “In the Eye of the Beholder: Cross Cultural Lessons in Leadership from Project GLOBE,” Academy of Management Perspectives 20 (2006): 67–90.

¹¹ Peter Cappelli, Harbir Singh, Jitendra Singh, and Michael Useem, The India Way: How India’s Top Business Leaders Are Revolutionizing Management (Cambridge, MA: Harvard Business Press, 2010).

¹² John P. Kotter and Dan S. Cohen, The Heart of Change: Real-Life Stories of How People Change Their Organizations (Cambridge, MA: Harvard Business Press, 2002); see also David A. Nadler and Michael L. Tushman, “Beyond the Charismatic Leader: Leadership and Organizational Change,” California Management Review, Winter 1990; Charles A. O’Reilly III and Michael L. Tushman, Winning Through Innovation: A Practical Guide to Leading Organizational Change and Renewal (Cambridge, MA: Harvard Business Press, 2002).

¹³ Dennis Carey, Michael Patsalos-Fox, and Michael Useem, “Leadership Lessons for Hard Times,” McKinsey Quarterly, July 2009.

¹⁴ See, for instance, American Hospital Association, Measuring the Community Connection: A Strategy Checklist for Leaders, American Hospital Association, 2006 (http://www.caringforcommunities.org/caringforcommunities/content/strategychecklist.pdf); William G. Bowen, Lessons Learned: Reflections of a University President (Princeton, NJ: Princeton University Press, 2010); Jim Collins, Good to Great and the Social Sectors (New York: HarperCollins, 2005); Marshall Ganz, Why David Sometimes Wins: Leadership, Organization, and Strategy in the California Farm Worker Movement (New York: Oxford University Press, 2010); John W. Gardner, On Leadership (New York: Free Press, 1993); General Accounting Office, Human Capital: A Self-Assessment Checklist for Agency Leaders, 1999; David Gergen, Eyewitness to Power: The Essence of Leadership from Nixon to Clinton (New York: Simon & Schuster, 2001); Mel Gill, Robert J. Flynn, and Elke Reissing, “The Governance Self-Assessment Checklist: An Instrument for Assessing Board Effectiveness,” Nonprofit Management and Leadership 15 (2005): 271–94; Doris Kearns Goodwin, Team of Rivals: The Political Genius of Abraham Lincoln (New York: Simon & Schuster, 2005); Nannerl O. Keohane, Higher Ground: Ethics and Leadership in the Modern University (Durham, NC: Duke University Press, 2006); Mike Krzyzewski and Donald T. Phillips, Leading with the Heart: Coach K’s Successful Strategies for Basketball, Business, and Life (New York: Business Plus/Hachette, 2001); Pat Summit, Reach for the Summit (New York: Broadway Books, 1999); D. Michael Lindsay, Faith in the Halls of Power: How Evangelicals Joined the American Elite (New York: Oxford University Press, 2008); Joe Torre and Henry Dreher, Joe Torre’s Ground Rules for Winners: 12 Keys to Managing Team Players, Tough Bosses, Setbacks, and Success (New York: Hyperion, 2000); Barbara Turnbull, “Evaluating School-Based Management: A Tool for Team Self-Review,” International Journal of Leadership in Education 8 (2005): 73–79; John Wooden and Steve Jamison, Wooden on Leadership: How to Create a Winning Organization (New York: McGraw-Hill, 2005); “Filling in the “˜Missing Pieces’: How Mary Ellen Iskenderian and Women’s World Banking Are Redefining Microfinance,” Knowledge@Wharton, July 7, 2010 (http://knowledge.wharton.upenn.edu/article.cfm?articleid=2540 ).

¹⁵ John Baldoni, Lead Your Boss: The Subtle Art of Managing Up (New York: Amacom, 2009); John J. Gabarro and John P. Kotter, “Managing Your Boss,” Harvard Business Review, January 2005; Michael Useem, Leading Up: How to Lead Your Boss So You Both Win (New York: Crown Business/Random House, 2002).

¹⁶ Samuel Linn, Alpha Company, 52nd Infantry Regiment (AT), 5/2 Stryker Brigade Combat Team, U.S. Army, Kandahar, Afghanistan, 2009–2010, personal communication, February 8–9; Center for Army Lessons Learned, http://usacac.army.mil/cac2/call/index.asp (not open to the public).

¹⁷ National Interagency Fire Center, Incident Response Pocket Guide, http://www.nwcg.gov/pms/pubs/pubs.htm, January 2010, and also available as an iPad app, iRPG; New York City Fire Department, Chief Officer Operational Checklists, November 16, 2005.

¹⁸ Pre-Sales Checklist prepared by Ralf Klein and John Gobron, Microsoft, 2010, personal communication.

¹⁹ Bryant, “Google’s Quest to Build a Better Boss.”

²⁰ Michael Useem, Michael Barriere, and Joseph Ryan, “Looking South to See North: Upward Appraisal of Tangible Leadership,” Wharton Center for Leadership and Change, University of Pennsylvania, 2011.

²¹ Atul Gawande, The Checklist Manifesto: How to Get Things Right (New York: Holt, 2009); Alex B. Haynes et. al., “A Surgical Safety Checklist to Reduce Morbidity and Mortality in a Global Population,” New England Journal of Medicine 360 (2009): 491–99; John D. Brinkmeyer, “Strategies for Improving Surgical Quality—Checklists and Beyond,” New England Journal of Medicine 363 (2010): 1963–65; Eefje N. de Vries et al., “Effect of a Comprehensive Surgical Safety System on Patient Outcomes,” New England Journal of Medicine 363 (2010): 1928–37.

²² Jeffrey Pfeffer and Robert I. Sutton, The Knowing-Doing Gap: How Smart Companies Turn Knowledge Into Action (Cambridge, MA: Harvard Business School Press, 2000).

²³ Norman Maclean, Young Men and Fire (Chicago: University of Chicago Press, 1993); Useem, The Leadership Moment, 1998; Michael Useem; “In the Heat of the Moment: A Case Study in Life-and-Death Decision Making,” Fortune, June 27, 2005: 125—33.

²⁴ The account that follows draws on Useem, The Leadership Moment (and a number of sources cited therein), and Roy Vagelos and Louis Galambos, Medicine, Science, and Merck (Cambridge, MA: Cambridge University Press, 2004).

²⁵ Michael Useem, The Go Point: When It’s Time to Decide (New York: Random House, 2006), 214.

²⁶ Michael Useem, “John Chambers: Whether Up or Down, Always Innovating,” U.S. News & World Report, November 2009; the phrase “touching the void” is borrowed from Joe Simpson’s Touching the Void: The True Story of One Man’s Miraculous Survival (New York: Perennial, 2004).

²⁷ We draw upon several sources, including American International Group, Inc., 2008 Annual Report; Roddy Boyd, Fatal Risk: A Cautionary Tale of AIG’s Corporate Suicide (Hoboken, NJ: Wiley, 2011); Eric Dickinson, “Credit Default Swaps: So Dear to Us, So Dangerous,” Fordham Law School, November 20, 2008; Eric Dinallo, Testimony to the U.S. Senate Committee on Banking, Housing and Urban Affairs, March 5, 2009; Donald L. Kohn, Statement to the U.S. Senate Committee on Banking, Housing, and Urban Affairs, March 5, 2009; Ben Levisohn, “AIG’s CDS Hoard: The Great Unraveling,” Business Week Online, April 7, 2009; Steve Lohr, “In Modeling Risk, the Human Factor Was Left Out,” New York Times, November 5, 2008; Nell Minow, Testimony to the U.S. House of Representatives Committee on Oversight and Government Reform, October 7, 2008; Carrick Mollenkamp, Serena Ng, Liam Pleven, and Randall Smith, “Behind AIG’s Fall, Risk Models Failed to Pass Real-World Test,” Wall Street Journal, October 31, 2008; Gretchen Morgenson, “Behind Insurer’s Crisis, Blind Eye to a Web of Risk,” New York Times, September 28, 2008; Scott M. Polakoff, Statement to the U.S. Senate Committee on Banking, House and Urban Affairs, March 5, 2009; William K. Sjostrom, Jr., “The AIG Bailout,” Salmon P. Chase School of Law, Northern Kentucky University, March 10, 2009; and Gillian Tett, Fool’s Gold: How Unrestrained Greed Corrupted a Dream, Shattered Markets, and Unleashed a Catastrophe (New York: Little, Brown, 2009).

²⁸ Morgenson, “Behind Insurer’s Crisis, Blind Eye to a Web of Risk.”

²⁹ Levisohn, “AIG’s CDS Hoard: The Great Unraveling.”

³⁰ Morgenson, “Behind Insurer’s Crisis, Blind Eye to a Web of Risk”; Minow, Testimony to the U.S. House of Representatives Committee on Oversight and Government Reform, 2008.

³¹ Polakoff, Statement to the U.S. Senate Committee on Banking, House and Urban Affairs, 2009.

³² Itshak Ben-David, John R. Graham, and Campbell R. Harvey, “Managerial Overconfidence and Corporate Policies,” Duke University, 2007; Anand M. Goel and Anjan V. Thakor, “Overconfidence, CEO Selection, and Corporate Governance,” Journal of Finance 63 (2008): 2737–84; Haim Mano, “Risk-Taking, Framing Effects, and Affect,” Organizational Behavior and Human Decision Processes 57 (1994): 38–58; William F. Wright, “Mood Effects on Subjective Probability Assessment,” Organizational Behavior and Human Decision Processes 52 (1992): 276–91.

³³ Useem, The Leadership Moment; for useful illustrations of learning leadership from leaders’ failures, not just exemplary behavior, see “The Failure Issue: How to Understand It, Learn from It, and Recover from It,” Harvard Business Review, April 2011; Sydney Finkelstein, Why Smart Executives Fail and What You Can Learn from Their Mistakes, (New York: Portfolio, 2003); Tim Irwin, Derailed: Five Lessons Learned from Catastrophic Failures of Leadership (New York: Thomas Nelson, 2009); Robert E. Mittelstaedt Jr., Will Your Next Mistake Be Fatal? Avoiding the Chain of Mistakes That Can Destroy Your Organization (New York: Pearson, 2004); Jeffrey Sonnenfeld and Andrew Ward, Firing Back: How Great Leaders Rebound from Career Decisions (Cambridge, MA: Harvard Business Press, 2007).

³⁴ Jonathan Franklin, 33 Men: Inside the Miraculous Survival and Dramatic Rescue of the Chilean Miners (New York: Putnam, 2011); Rodrigo Jordán, Matko Koljatic, and Michael Useem, “Leading the Rescue of the Miners in Chile,” Wharton School, Business Case, 2011; Michael Useem, Rodrigo Jordán, and Matko Koljatic, “33 Below: Learning Crisis Leadership and General Management from the Rescue of the Miners in Chile,” Wharton Center for Leadership, University of Pennsylvania, 2011.

³⁵ The narrative and direct quotes are from sources cited in the prior endnote. In preparing those articles, we have drawn upon extensive media coverage of the rescue and personal interviews with the leader of the rescue and the members of the top rescue team: René Aguilar, head of safety, El Teniente mine, Codelco (National Copper Corporation of Chile), and deputy chief on rescue site, December 22, 2010; Cristián Barra, cabinet chief, Ministry of the Interior, Republic of Chile, January 5, 2010; Laurence Golborne, mining minister, Republic of Chile, November 1, 2010; Luz Granier, chief of staff to the mining minister, November 1, 2010; and André Sougarret, manager, El Teniente mine, Codelco, and chief engineer on rescue site, January 5, 2010.

³⁶ D. A. Waldman, G. G. Ramirez, R. J. House, and P. Puranan, “Does Leadership Matter: CEO Leadership Attributes and Profitability Under Conditions of Perceived Environmental Uncertainty,” Academy of Management Journal 44 (2001); 134–43; Alan Berkeley Thomas, “Does Leadership Make a Difference to Organizational Performance?” Administrative Science Quarterly 33 (1988): 388–400; Stanley Lieberson and James F. O’Connor, “Leadership and Organizational Performance: A Study of Large Corporations,” American Sociological Review 37 (1972): 117–30.

³⁷ Adam Goodheart, 1861: The Civil War Awakening (New York: Knopf, 2011); Drew Gilpin Faust, This Republic of Suffering: Death and the American Civil War (New York: Knopf, 2008).

³⁸ Joshua Lawrence Chamberlain, Passing of the Armies: The Last Campaign of the Armies (Gettysburg, PA: Stan Clark Military Books, 1994), 261.

³⁹ Chamberlain, Passing of the Armies; Douglas Southall Freeman, Lee’s Lieutenants: A Study in Command, abridged in one volume by Stephen W. Sears (New York: Scribners, 1998); William Marvel, Lee’s Last Retreat: The Flight to Appomattox (Durham, NC: University of North Carolina Press, 2002); Alice Rains Trulock, In the Hands of Providence: Joshua L. Chamberlain and the American Civil War (Durham, NC: University of North Carolina Press, 1992); Jay Winik, April 1865: The Month That Saved America (New York: Harper-Collins, 2001).

⁴⁰ Jim Collins, Good to Great: Why Some Companies Make the Leap...and Others Don’t (New York: HarperBusiness, 2001).

⁴¹ Helene Cooper, “Medal of Honor for Bravery in Afghanistan,” New York Times, November 16, 2011; also see http://www.army.mil/medalofhonor/giunta/citation.html and http://www.youtube.com/watch?v=R2RWscJM97U