LEADERSHIP: HAS GEITHNER GAGGED?

The US Treasury Secretary, Timothy Geithner, hasn't asked my advice.  But, he looks as though he needs some.  He's like a stalled driver on a railway crossing and the runaway financial express is already on top of him.  His lack of resolve is worrying both Americans and investors across the world.  Obama's land of "hope" and "yes, we can" is at risk of becoming a desert of "nope".  Many CFOs (and their CEOs) face similar challenges - albeit smaller.  So, how are you going?  Perhaps this advice may be of help to you as well!

Using our V|E|C|T|O|R framework, these are some pointers for my namesake, Mr Geithner.

Your national and international audiences want you to answer some relatively simple questions.  What are you intending the US financial system to look like, say, a year from now?  And, what's the journey you want us to take from here to there?  And, pretty obviously after that: can we do it?  There are other questions, about roles, etc., but these three are a start.

So, what actions might you take to address the questions?  Well, here are six possibilities.

1. Design the structure - and key parts of the new system with options for those, which can't be finalised yet.  Make sure you come with the big pieces though; put them up; and, let people see them.  What's going to be the same; and, what different.
2. Lay out a plan to get there starting from an honest appraisal of today's mixed portfolios of viable and toxic assets - leading to issues of ratings, liquidity and, above all, solvency.  Think of it all as a single business.  Many companies are on a similar runaway train.
3. Communicate both the destination and plan in language that's clear and specific - and, full of conviction.  Enough design for the general public; enough detail for financiers and investors; and, above all, absolute commitment that you can and will make it work.
4. Take charge and encourage others to do the same.  Step up to the big decisions of the program yourself - and act quickly.  Reach out to others in the regulatory system and the finance industry (nationally but also internationally) and ask them to play their part.
5. Prepare for further shocks.  The crisis isn't over and it's not going to be plain sailing.  There'll also be fallout from the decisions you and others need to take.  Get people thinking through the possibilities and being ready for further actions, as needed.
6. Keep communicating and responding.  Don't let rumours get out of control.  Don't let people game the new system before it's stable.  Keep on the front foot.

There are millions of business owners and executives wrestling with similar problems - who've already set their new vision, made plans, communicated and started driving things forward.  Some are probably following steps like the six above.  Your challenges just happen to be bigger.  But, like them, you accepted the job.  So, don't lose it now.

Categories for this Potshot:

Great-leader Potshots, GFC Potshots, Design structures and roles, Develop plans and actions lists, Communicate key messages, Align resourcing with goals, Take tough decisions, Prepare for external shocks, Re-jig priorities,

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