True Leadership...Where is it?: Big Politics & Big Business
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True Leadership . . . Where Is It? Big Politics & Big Business,
Our world is changing rapidly. Everything in today's world is connected, except top leadership in BIG Business and BIG Politics, AND WE the PEOPLE. For good or bad, WE are on a collision course w
Steve Lundquist
Steve Lundquist worked in senior management roles for small businesses, or as a small business consultant for his entire adult life. In all positions, he reported directly to the business president and was part of the leadership team. As a small business consultant from 1998 to 2006, he helped each client's company president and leadership team grow the company or, in some cases, turn around their failing business. Lundquist hired, managed, and mentored many people throughout his career. He is a general expert in accounting and tax, and is familiar with business processes and tax processes not only the United States, but multiple other countries as well. He was significantly involved in three private equity transactions.
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True Leadership...Where is it? - Steve Lundquist
TRUE LEADERSHIP
WHERE IS IT?
BIG POLITICS &
BIG BUSINESS
Steve Lundquist
True Leadership leads for the benefit of all of us
and for each of us, not just for some of us.
www.trueleadership.org
Copyright © 2021 by Steve Lundquist.
All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means without written permission.
ISBN Numbers:
Paperback: 978-1-7363273-1-9
Hardcover: 978-1-7363273-0-2
eBook: 978-1-7363273-3-3
Audio book: 978-1-7363273-2-6
Introduction
Big Politics and Big Business Leadership
A true leader has the confidence to stand alone, the courage to make tough decisions, and the compassion to listen to the needs of others. He does not set out to be a leader, but becomes one by the equality of his actions and the integrity of his intent.
– Douglas MacArthur
In this book, you’ll see that I take some hard punches at Big Business leadership and Big Politics leadership. Yet, I have the utmost respect for these institutions. After all, they built our democracy into the institution other countries admire and want to emulate. And they’ve created the largest economy in the world, bringing many of us well into a middle class never before imagined.
However, over the years, I have become soured on the motivation of current top-level leaders of Big Business and Big Politics. Beginning thirty to forty years ago and accelerating over the last twenty years, decisions—and/or lack of decisions—by these two groups has led to several intolerable and life-threatening issues. We see division amongst citizens, stagnant wages, a decline of the middle class, a planet on the verge of collapse, and unnecessary taxpayer cost from legislation that does not solve the problem, no matter what the problem.
In this book, I will discuss why we remain in this leadership debacle and how we can get out of it. I will include examples of leadership issues plaguing our country. Contrary to the belief of our former president Donald Trump, we in the U.S. cannot independently solve world issues, nor can we retreat from the world. As always, we must take the lead role in advocating, guiding, and supporting democracy and solutions to world problems.
With the technological and societal changes of the last fifty years, the world has become a one-body politic and a one-world economy. Today, every significant issue is global and affects all of us, not just some of us. The Coronavirus that swept through the world in early 2020 is the latest crisis to threaten a healthy human existence. However, pandemics and other predictable threats will continue to occur regularly until we demand from our leaders a solution to the root cause of the problem. Unfortunately, precious time is slipping away to implement the required world-saving solution.
We must demand a defining change to our highest level leadership in both Big Politics and Big Business to ensure an everlasting sustainable world. It is these two institutions that will have the most impact on the future of the world, and accordingly will require the most change.
When I refer to Big Politics, I’m talking about the federal political system.
Companies that I define as Big Business are businesses with annual revenue of over $10 billion or profit of over $1 billion.
Who is Steve Lundquist?
I have been in senior management for small businesses or small business consulting all my adult life. In all positions, I reported directly to the business president and was part of the leadership team. As a small business consultant from 1998 to 2006, I helped each client company president and leadership team grow the company or, in some cases, turn around their failing business. I have hired, managed, and mentored many people over my career. I am a general expert in accounting and tax, and I am familiar with business processes and tax processes of not only the U.S. but multiple other countries. I was significantly involved in three private equity transactions.
I led many people within each organization and interfaced with many more from all areas of the business: sales, production, engineering, information technology, marketing, service, accounting, and many others.
I’m also a student of history and current events, which is why, after forty years of observation, listening, and continuous ad hoc learning, I have come to some startling conclusions about the factors that collide in our relationships, friendships, leadership, business, politics, and the global issues of our world.
I have no Ivy League credentials, a Big Business CEO title, or a Senate or House member designation. Yet I believe, like you probably believe, that we are uniquely qualified to render observation and judgment of our current top-level leadership. Why? Because we are the people living with a lack of leadership in today’s time of significant change and its catastrophic impact on our lives and lives all around us. However, you and I have a role in this leadership vacuum. We must become better at choosing our leaders and then helping them create the change required to cultivate a better life for all of us.
Let’s begin this monumental task together.
Part I
Why Are Top-Level Big Politics and Big Business Leaders and Institutions Failing Us and the Planet?
Chapter 1
Critical Signs of Missing Top-Level Leadership
One of the tests of leadership is the ability to recognize a problem before it becomes an emergency.
– Arnold Glasow
Factors that threaten a sustainable future for us and our planet
We are living in an era of unprecedented importance. Our lives, and the life of the planet, depend on our ability to change our human behavior. Just a few decades ago, our perception of a sustained future for us and the coming generations looked almost perfect. The Cold War ended. Cell phones seized the preferred communication device title. Personal computers made everything faster. The Internet was beginning to show some real promise. Television blossomed to hundreds of choices and channels. And federal budgets were balancing. Everything looked rosy.
But are we moving in the right direction?
I believe most of us could agree that the following are the simplest of goals for our sustainable future:
A prosperous economy that provides us meaningful work and a reasonable paycheck.
An education system that teaches our children well and prepares them for the future.
A secure and safe place to live—which includes a healthy planet.
A reasonable cost to live without passing some of that cost to our children.
And Finally and Importantly, freedom from tyranny from any source.
Throughout human history, we have had good times and bad. In centuries past, good times were defined by lives without conflict and enough food and water to sustain us and a belief that we could defend ourselves from attacks by others. Bad times were a lack of food and water or conflict with neighboring peoples. . .or both. A battle ensued when leaders of one sect, tribe, or country attacked another, usually to increase their landholdings and capture resources and treasure. The loser of such conflict became subject to the leadership of the conqueror. Conflict also occurred when the leadership of a sect, tribe, or country was overthrown by its citizens, generally for bad leadership resulting in lack of food, higher taxes, ensuing poverty, or forced servitude.
In most of these conflicts, fear of an unsustainable future ignited the attack on either leadership or one’s neighbors. Natural borders, water, mountains, rugged terrain, or expanded land holdings through previous conflicts always hindered or helped both attacker and defender. The sheer vastness of physical space helped or thwarted attackers and defenders alike, as did the latest weapons and human-made fortresses.
For the first time in history, the threat of an unsustainable future lies in the balance for all of humanity.
Unlike in the past, natural borders, the latest weapons, and human-made fortresses are no match for today’s issues. The planet has shrunk, and time moves so much faster than yesterday that we can no longer afford the luxury of procrastination. The threat of an unsustainable future has slowly crept into our perfect lives.
As evidence, the perfect sustained future vanished over the last twenty years. The attack on 9/11 took our feeling of security away. Russia infiltrated our election process. China is pounding on the doorsteps of our economic prowess. Our national politics have become totally partisan. Domestic terrorists are shooting up our cities. Big Business scandals of all kinds litter the news regularly. Our economy—and the world economy—collapsed under the weight of speculative investments. As predicted thirty years ago, our planet is heating up because we have done nothing significant to change the course of our behavior. Rogue nation-states are threatening us with newly developed nuclear bomb-delivery rockets. Finally, data security breaches are leaving many of us with concerns about what’s next.
Two root causes are threatening an unsustainable future.
The first is a result of the success of our industrial and technological economic evolution. Fossil fuels have created a global warming crisis that threatens to strip the planet of its ability to provide our life-giving food and water. Information technology created a double-edged sword of an advanced state of knowledge and control while rendering perilously close to useless many of the barriers to attacks on our economic and security systems. The barriers are gone, and the world, whether we like it or not, is fully connected.
The second root cause of the fear of an unsustainable future is due to the highest levels of our political and business leadership and their apathy, unawareness, and/or misaligned leadership purpose. It is this root cause that we must eliminate forever. Only then will we be able to put behind us the fear of an unsustainable future.
Roller-coaster history of self-serving Big Business and Big Politics
Over the last 150 years, we have moved from the beginning of the Industrial Age to our current high technology age. We have had many ups and downs coming from self-serving strategies of Big Politics and Big Business.
We had the gilded age of the robber barons—or captains of industry,
depending on your point of view—in the late 1800s: J. P. Morgan—banking, railroads, steel, electricity and others; Andrew Carnegie—steel; John D. Rockefeller—oil; and Andrew W Mellon—multiple industries. These men amassed vast fortunes through their shrewd business dealings and the deplorable treatment of their employees—very little pay for backbreaking work and poor working conditions. During this period, Big Politics was controlled by Big Business through corruption.
From 1890 to 1920, the tide changed. Big Politics reined in some of the excesses of Big Business, giving workers better pay, better working conditions, and giving women the right to vote. Teddy Roosevelt and Woodrow Wilson supported legislation for better pay and working conditions. So did Henry Ford with his introduction of better line-worker pay. Ford said his workers must be able to buy his car. Wilson, although a staunch opponent of women’s suffrage at first, eventually signed the legislation giving women the right to vote. After World War I, even though Wilson’s League of Nations concept collapsed, his idea began pushing the world’s democracies toward the vision for a united process for solving world problems. The United Nations was Wilson’s concept.
Then came the Roaring Twenties, when Big Business again took charge, creating a substantially unsupported bubble in the relatively new stock market. The great market crash of October 24, 1929, started our deepest and longest economic depression. Many people lost everything.
In 1933, after four years of sliding further into an economic depression, Franklin Roosevelt pushed through his New Deal legislation, which brought several new concepts to the security of our country’s citizens—Social Security and the Civilian Conservation Corps, to name just two. Even with the New Deal legislation, it still took until the beginning of World War II to fully recover from what began in 1929.
World War II brought much economic prosperity to the country with the building of needed war machinery. Women became a significant factor in the United States workforce, setting some of the ground rules for their vastly increased workforce participation over the ’50s, ’60s, and ’70s.
After World War II, the country’s economy and politics settled into a relatively stable pattern. There were ups and downs, but Big Business and Big Politics seemed to adopt the war philosophy that We must work together to achieve our goals for the economy.
Business colleges preached about five stakeholders:
Customers
Employees
Stockholders
Communities
Suppliers
To be successful, a business must understand and balance the needs of all stakeholders. Accordingly, we had economic legislation during the ’50s, ’60s, and ’70s promoting cooperation. Examples are pollution control with the creation of the Environmental Protection Agency and the breakup of AT&T to promote lower-cost phone service.
Then, in the late ’70s and early ’80s, economic philosophy went through another transformation. Milton Friedman’s economic doctrine started questioning the premise that businesses had a responsibility to all five stakeholders. In fact, two stakeholders were added: executive team members and financiers (banks, brokerage firms, and private equity groups). Unfortunately, under this new economic philosophy, four of the original five stakeholders diminished in stature: customers, employees, suppliers, and the community. Only the executive team, financiers, and stockholders were left with any input on Big Business decision-making. Even worse, students started graduating from business schools with a mind-set that the only thing that mattered was increasing stockholder value, which pleased the remaining three stakeholders and left the rest of us out.
Leaders of Big Business quickly adopted this philosophy. It was much easier to lead for one purpose—increasing stock value—than multiple purposes.
In the mid- to late ’70s, the formation of the Organization of Petroleum Exporting Countries (OPEC), the Middle East oil-producing countries’ cartel, accelerated our economic philosophy change. The price of gasoline and other petroleum products skyrocketed.
We struggled to adjust to this new reality, but by 1980 our economy was poised to free fall. Ronald Reagan was elected in 1980, declaring that he could fix our economy. It took a while. We first had to endure recession and hyperinflation. Interest rates soared from 5% to 14% or more. However, by the next presidential election, the economy had recovered, and Reagan was re-elected.
All during the ’80s, Big Business began embracing the new economic philosophy. Also, during the ’80s, Big Politics started needing more money for campaigning. Cable television came into existence and pushed up the cost of election campaigns. Cable TV, with its continuous stock market coverage, forced Big Business to focus on short-term profits entirely. An unfortunate alliance between Big Business and Big Politics began to take shape.
This alignment accelerated when Newt Gingrich controlled the House of Representatives in the early to mid-’90s. Since Newt was Republican and his political strategy aligned with the new business philosophy, the Big Business Big Politics partnership began to take hold. Big Money started flowing to the Republican Party. Since the Democrats couldn’t be outside of this Big Money change in process, they had to adopt a similar partnership or run for office with significantly less campaign funding.
The country has now reverted to the robber baron/captains of industry era where Big Business and Big Politics are fully aligned. Legislation against Big Business interests has slowed over the last forty years to a point where most of us would say it’s now nonexistent.
Now let’s tie history to the missing leadership dilemma.
Our current Big Business and Big Politics condition is eerily similar to the historical alignment of the late 1800s. The tycoons of the 1800s would do whatever it took to make more money for themselves. They bought politicians and/or the political process with bribes and covert payments. Today’s Big Business funds the lion share of campaigns for our highest political offices in the form of political action committee funding from companies, senior business executives, and substantial unknown other sources.
Global threats to Futuristic Sustainability
Because our world has become globalized in every way, disasters lurk around every corner. We have seen several major crises over the last twenty years, all of which had global implications. They have come in many different forms, which makes planning and solutions mind-boggling.
Global warming. Time is running out for our future and our planet’s future. We’re already experiencing deaths, destroyed lives, and the repair and replacement cost of global environmental disasters. I’ll talk more about this serious problem in later chapters and in Appendix 1.
Terrorists inciting anarchy and bloodshed at home and around the world.
China’s rise in the global economy and power spurred on by the complacency of Big Business and world governments in curbing technical and other pirating efforts.
Russia’s reemergence into Cold War politics and tactics.
The continuing nuclear threat posed by small, nondemocratic nation-states.
The rise in state- and crime-sponsored data attacks with the power to instantly cripple the world economy and democracy.
The monetary disparity between classes to the point of a virtual financial aristocracy holding power to choose leaders and laws.
The virtual collapse of the free-world economy due to the greed of a few bad corporate actors.
Bad actors heading up global businesses creating financial loss, undermining institutional trust, and causing death.
An undermining of the virtue of diversity and inclusion and the concept itself of democracy here and around the world by so-called world leaders who are promoting clannish separating behavior for their political gains and benefits.
These crises have impacted all of us with higher costs for products, services, and taxes. Many of us have been indirectly affected by the anxiety and turmoil surrounding these crises. The advent of accelerated change and rapid globalization make these threats even more serious than in the past.
Any of the above recent disasters can and will repeat on a scale so massive it will undermine our human existence in ways never before seen. Our national political and business leaders have been watching their effects but have done nothing to solve them. Big Politics attacks the other side of the aisle for their proposed solution strategies, accomplishing nothing, often reversing legislation enacted by the other party when they get control. Big Business thinks these issues have nothing to do with them unless it affects their bottom line.
The saving solution strategy must first acknowledge that these problems are related by their cataclysmic impact on all of us. The solution requires a new leadership model that connects our Big Politics and Big Business in a form that benefits each of us and all of us, not just some of us.
The 2020 Coronavirus pandemic
Let’s examine the 2020 Coronavirus pandemic as a recent cataclysmic disaster and the failure of top-level leadership of Big Politics and Big Business.
Once we realized how serious this threat was to the U.S. and the world, several things became clear:
The first response