Big Picture: The CEO as Diplomat

An Interview with Richard Haass

Council on Foreign Relations’ president Richard Haass tells McKinsey Quarterly that CEOs will emerge less as lobbyists than diplomats in the unfolding world of coordination between business and government. Watch the video and look for more after the jump…

Peter Drucker wrote:

The modern organization exists to provide a specific service to society. It therefore has to be in society. It has to be in a community, has to be a neighbor, has to do its work within a social setting. — The Essential Drucker, Butterworth-Heinemann; 2nd Revised edition, 2007, p 38

  • How do you think this notion relates to Richard Haass’ prediction that “… the lines between what is government and what is the private sector of business will get blurred. And increasingly, rather than being at one another, they will have to work with one another”?
  • Does this strike you as good news, bad news or no news? Why?

The Quarterly asked Mr. Haass if he believes governments will model more businesslike behaviors in the future. To which he replied:

I think each has something to learn from the other. In the old days, we only thought that companies were in the teaching role and that government had to learn from companies. And the whole idea was, “How could you bring business management into government?” I actually believe the opposite is also the case—that increasingly CEOs, when they get up in the morning and look out through their window or across their desk, they are dealing with a range of constituencies that looks an awful lot like what a cabinet member might look at.

You’ve got independent media. You’ve got independent workers or unionized workers. You’ve got all these NGOs who are pushing you to do X, Y, or Z. Well, this is very much a political environment. The idea that you reach these decisions in some sort of splendid profit-and-loss isolation, those days are over—if they ever really existed to begin with. So I actually think each has something to learn from the other.

  • What ideals and practices do you think your industry or company can model for government?
  • What ideals and practices in government do you think your industry or company would do well to emulate?
  • How would you integrate this passage from the 13th chapter of Romans into the conversation?

Everyone must submit himself to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God.  2 Consequently, he who rebels against the authority is rebelling against what God has instituted, and those who do so will bring judgment on themselves.  3 For rulers hold no terror for those who do right, but for those who do wrong. Do you want to be free from fear of the one in authority? Then do what is right and he will commend you.  4 For he is God’s servant to do you good. But if you do wrong, be afraid, for he does not bear the sword for nothing. He is God’s servant, an agent of wrath to bring punishment on the wrongdoer.  5 Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also because of conscience.

This is also why you pay taxes, for the authorities are God’s servants, who give their full time to governing.  7 Give everyone what you owe him: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.

Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.  9 The commandments, “Do not commit adultery,” “Do not murder,” “Do not steal,” “Do not covet,” and whatever other commandment there may be, are summed up in this one rule: “Love your neighbor as yourself.”  10 Love does no harm to its neighbor. Therefore love is the fulfillment of the law. — Romans 13:1-10

  • What questions does this leave unanswered for you?
  • What new questions does it raise?
Find the text of Richard Haass’ McKinsey Quarterly interview here.

Posted by InsideWork on October 29, 2009

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Comments

  • Comment Author
    Glynn
    Oct 29, 2009 8:38 am | #

    A number of things seem to be converging here: the extraordinary changes in communications media; globalism and anti-globalism; society’s heightened expectations of what "business performance" actually is (it’s not only about jobs and taxes); the recent economic meltdown; and a growing public demand for candor and honesty. Think about a CEO sitting at the convergence of all of that, and suddenly it does begin to look a lot more like diplomacy and diplomatic skills.

    Good, thoughtful post.

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