Tesla needs to put a seat belt on Elon Musk – Chester Spatt

Golub Distinguished Visiting Professor of Finance, Chester Spatt

From MarketWatch

The past few months have been turbulent for Tesla CEO Elon Musk.

From publicly accusing a Thai rescue diver of being a pedophile (without evidence) and conducting a radio interview while smoking marijuana to insulting equity analysts on one earnings call and threatening to take Tesla private — then reversing those statements, triggering a SEC and a criminal investigation — Musk has engaged in some reckless behavior.

Then there are production problems with Tesla not being able to deliver cars on time. A big question is whether Musk should step down. While investor confidence in Musk has taken a big hit, he is a visionary leader and there would likely be great disappointment if he left the company.

What Musk does need is a lot more checks and balances by his management team. Investors would like Musk to have more self-control and act more like other legendary leaders, such as the late Steve Jobs of Apple and Amazon.com’s Jeff Bezos.

For that to have a chance, Tesla’s management team must play a bigger role in guiding the company’s strategy both internally and externally. If Musk is required to step down as CEO for a period of time by the SEC, the management team must be ready to take the wheel.

Tesla also needs to step back and review the basics of corporate governance. U.S. securities laws and common business practices are meant to keep market participants honest, so that they effectively represent their own best interests and those of their shareholders.

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When was the last time you asked, “Why are we doing it this way?” — Hal Gregersen

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

From Harvard Business Review

During a time when many retailers are struggling, business is booming at Target. But it wasn’t too long ago that the discount retailer’s future didn’t glow so bright. When CEO Brian Cornell took the reins two years ago, he inherited a company that had been struggling for years, taking far too few risks, and sticking too close to the core.

Since then the world has fallen in love with a far edgier Target, which has expanded its offerings through collaborations with such power brands as Lilly Pulitzer, Toms, Neiman Marcus, and SoulCycle, and updated product lines that break the status quo, like its latest gender-neutral kids home brand Pillowfort. But Cornell didn’t start right out of the gate making any big changes like these. Instead, he took time to carefully contemplate his approach, listen to his team, and ask questions.

At the MIT Leadership Center, I recently spoke with another leader, Guy Wollaert, chief exploration officer at Loggia Strategy & Design, about similar experiences he encountered at another highly visible brand, Coca-Cola. During his 20-plus year tenure with the global beverage brand, most recently serving as its chief technical and innovation officer, Wollaert made it a point to seek — and surround himself with — new ideas and people who challenged him to reflect and question first, then act later.

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The Power of Leaders Who Focus on Solving Problems – Deborah Ancona and Hal Gregersen

From Harvard Business Review

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

MIT Sloan Prof. Deborah Ancona

In front of a packed room of MIT students and alumni, Vivienne Ming is holding forth in a style all her own. “Embrace cyborgs,” she calls out, as she clicks to a slide that raises eyebrows even in this tech-smitten crowd. “Really. Fifteen to 25 years from now, cognitive neuroprosthetics will fundamentally change the definition of what it means to be human.”

She’s referring to the work that interests her most these days, as cofounder of machine learning company Socos and a visiting scholar at UC Berkeley’s Center for Theoretical Neuroscience. (“So — can I literally jam things in your brain and make you smarter? If you’re curious, the answer is unambiguously yes.”) But the talk has covered a lot more than this, as Ming has touched on many initiatives and startups she’s been involved with, all solving problems at the intersection of advanced technology, learning, and labor economics.

She’s an entrepreneur, a CEO, and a teacher — all leadership roles — but when we ask her about her leadership style, she demurs. “What I’ve learned about myself as a leader, as an executive, is — I’ll be blunt — I’m a pretty mediocre manager. I try to do the right things, but I’m much more focused on problems than I am on people, and that’s not always that healthy.” While she’s utterly confident in herself, she just doesn’t identify as top management. She’s happier to think of herself as a data scientist, a computer geek. She loves talking about hacks she’s pulled off — like the alterations she made to her diabetic son’s medical devices, so she could merge all their data to produce a predictive model. Now, she gets an alert an hour in advance if a spike or drop is coming in his blood glucose level. This is an unprecedented, and highly valuable, thing. “Turns out, it broke several federal laws,” she laughs.

Ming is a tech optimist, believing that all kinds of previously intractable problems will be able to be solved as the tool kit for addressing them is developed. And she’s decided her best way of contributing to that progress is to keep honing her individual-contributor skills. “For a long time, I tried to be the whole package. I put a lot of energy into making certain that I was shepherding everyone along, doing all the right things for my teams. Then I realized: You know what? If I can get some people that are really good at the things that I’m not, then I can focus on my strengths. And my strengths are in creative problem solving — all the way down to writing the code myself.” Read More »

A year for leadership in America – Deborah Ancona

MIT Sloan Prof. Deborah Ancona

From The Hill

Let’s face it: 2017 was truly frightening despite being a banner year for the economy. So as we approach the one-year anniversary of President Trump’s inaugural it is worth pausing to reflect. His first year in office has been a difficult one for those seeking leadership role models. It is not just Trump’s inappropriate tweets, the rollback of environmental regulations, and the foreign policy gaffes that have posed a problem.

As a professor of leadership and a news junkie, I have been disappointed in the performances of our most visible leaders throughout the woebegone 2017. Given a never-ending array of unsettling headlines, including sometimes terrifying stories about Donald Trump, Rodrigo Duterte, Vladimir Putin and Kim Jong Un, we have been witness to corruption and toxic leadership that distorts truth and intimidates followers and critics alike.

But let us focus on the United States, where leaders on both sides of the aisle have noted this dysfunction. Worse still the negativity cascades from the top throughout the government, business and society at large. Toxicity is catching.

The narcissistic tendencies and fear-mongering tactics of our leaders, plus a series of revelations of noted sexual misconduct in many fields, made the events of 2017 read like a leadership Greek tragedy. In the past year, our political and business leaders have been exposed as both out of touch, unable to act on major issues like global warming and drug addiction, and, too often, acting badly if not outright bizarrely in support of their own self interests.

Yet surprisingly, psychologists and political scientists alike have shown that in uncertain times we often gravitate toward these Trump-like authoritarian leaders who promise a better future. When the promise is not forthcoming, however, or the pain worse than we feared, we flip-flop between two states: paralysis and over-reactivity. In doing so, we become ineffective in solving problems where real solutions might be available. Read More »

MBAs can front a revolution in collaborative leadership – Deborah Ancona and Hal Gregersen

MIT Sloan Prof. Deborah Ancona

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

From The Financial Times

There seems to be growing unease with the value we place on leadership. Susan Cain, author of Quiet, a best-selling book about the power of introverts, offers an example in a New York Times piece “Not Leadership Material? Good”. In it, she is specifically focusing on how college admissions favour applicants with leadership credentials.

She worries that too many slots are being offered to high-school seniors who are status and power-seekers. She bristles at the implication that students do not deserve merit scholarships or places at elite schools if they do great work as team players or solo artists.

Ms Cain deplores the fact that people who fall into the latter categories feel pressured to pretend they were born to run things. “If college admissions offices show us whom and what we value,” Cain says, “then we seem to think that the ideal society is composed of Type As.”

Good points, but let us not fall too far into the trap of saying that some people are leadership “types” and others are not. The really damaging thing for a society is to signal to people that “leaders” are different from those who are contributors and team members — rather than the same people at different moments and in different modes.

To understand the point, consider this example. A couple of years ago, a large, diverse group of people on MIT’s campus rallied round a project they all agreed deserved their best efforts: creating a memorial sculpture to honour the life of Sean Collier, a campus police officer who was murdered by terrorists in 2013.

Who led this project?

It is impossible to name one person. Professor J Meejin Yoon, head of MIT’s architecture department, designed the sculpture knowing that to make its massive interlocking granite pieces stand would require a technical feat of engineering.

As Prof Yoon commented, “developing and constructing the memorial requires a coming-together of like-minded, like-spirited people from many different disciplines to create something singular in the world”. She called it a “very MIT project”.

Throughout 2015, different contributors led efforts at key moments when their expertise was most relevant to making progress. Just as readily, they stepped aside when some new aspect of the project came to the fore. Combining those minds and hands did not bog the project down: an effort that should have taken three years was accomplished in one. Read More »