About Leadership

There is so much talk and teaching about “management” in these changing times. However, there is a difference between “management” and “leadership.” My own world experience has taught me that under good leadership, a good team manages to get the job done. Yesterday I visited the Milken Institute to hear a talk entitled “Defining Great Leadership” by Warren Bennis and Joel Kurtzman, both experienced and celebrated writers and speakers on this subject. It was a full house.

Bennis, in describing the start of his life-study of leadership related his experience during World War II as a fresh Lieutenant in a combat hardened infantry unit in France. His discussion rang a bell with me as that was so similar to my first leadership experience. In Korea in 1955 I was transferred from a non-combat assignment to a tank regiment on the front lines. Bennis and Kurtzman stressed one is only a leader when there are loyal followers and they both agreed the Army was the best training ground for this. When I was placed as a tank platoon leader, it was the “loyal followers” who trained me to be a leader. The sergeants, all veterans of chasing Rommel across Africa and Italy, showed me how to be part of the team, and lead.

Today, those companies with outstanding and responsible leadership, with the professional and social skills needed to inspire and harness creativity in the high-tech world, will be our heroes of this century.

Bennis’ book Still Surprised: A Memoir of a Life in Leadership and Kurtzman’s Common Purpose: How Great Leaders Get Organizations to Achieve the Extraordinary are available from Amazon and book stores.

Buy here  “Walking on Ice, An American Businessman in Russia”

The Jews of El Paso

 Popular Dry Goods

Someone ought to write a book about the Jews of El Paso. When I grew up in that Texas border town, I was very aware of the Jews. My mother bought our shoes at Given’s Shoe Store. Some of the leading Jews were 32^nd  Degree Masons, as was my dad. The top department store was Popular Dry Goods founded in 1902 by the pioneer Adolph Schwartz. From a small village in the Austro-Hungarian Empire, he landed in New York in 1883 with fifteen cents in his pocket and somehow made it to El Paso and opened the Popular.  As a high school student I worked on Saturdays in the Popular, manning the Boy Scout Department, and working for Willy Wildstein and Ed Smallberg.  But there were Jews before Schwartz.

Adolph Krakauer migrated from Bavaria to New York in 1865 and 1869 moved to San Antonio, Texas, where he went to work for Louis Zork, a leading merchant. He moved to El Paso in 1875, at a time when the town’s population was listed as seventy-five Mexicans and twenty-five Anglos. There he clerked in the firm of Sam Schutz and Son and became manager when the business was sold; later he became a partner. In 1885 he sold his interest in the firm and organized the firm of Krakauer, Zork, and Moye with his brother-in-law, Gustave Zork. That firm was the main hardware store in El Paso my entire life there. It also was a main source for arms to both sides in the Mexican Revolution as you may read about in my family story of that time, “Dos Gringos.” My grandfather, Friedrich Müller (not Jewish)was the salesman and I used to have pictures of him in Mexico with the Villistas with their sombreros and guns. Krakauer was voted Mayor of El Paso, but could not take office as he had neglected to become an American citizen.

There were many others. The Jews made their mark and were important contributors to the success of that town on the Rio Grande. When I visit El Paso today, I stand across from where the Popular was, in the square with the fountain where the alligators used to be, and I miss the Jews, who made that border town so livable. In fact there have been several accounts of the El Paso Jews: See The History of Jewish El Paso

Confessions of a Russophile

From the review for “Walking on Ice. An American Businessman in Russia” from Russia Profile magazine, by its editor, Andrei Zolotov, Jr.  

Of the legion of Western entrepreneurs who came to Russia in the early 1990s in search of opportunities, many came here guided not just by greed, but by a quest for adventure. But there were few who had become infatuated with Russian culture built their businesses as a cultural matchmaking of sorts. They had the inquisitive minds and open hearts of cultural interpreters, which helped push their projects in the land, where, as one such person, Frederick R. Andresen put it, “everything is difficult—and everything is possible.”

Andresen put his insightful observations into a tenderly written, concise book, which is neither an academic study, nor a memoir; neither a business manual, nor a cultural history. Yet it somehow manages to serve all these purposes and can be recommended as an easy and highly educational read for aspiring Russia scholars and people preparing for a tour of duty in Russia.

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“Grappling With Soviet Symbolism,” New York Times

In the May 15, 2010 edition of The New York Times, was an article by Andrei Zolotov, Jr. “Grappling With Soviet Symbolism. This paralleled well with the sentiments in my book  “Walking on Ice, An American Businessman in Russia.” So, I wrote a letter to the New York Times and they, surprisedly, answered at once telling me it was going to be published in the International Herald Tribune. I expect to see a copy of that soon. Here is what I wrote:

 “What a welcome account of the obvious change happening in Russia today. It has been happening, but slowly and often unnoticed by the press. Lenin said Russia progressed one step forward and one step back. I say today it is three steps forward and two back, but we must acknowledge that residual step and help build on it. Zolotov covered it all well. Indeed, it is often the “blink” of events that help turn the head and then the body in a new and better direction. The Smolensk fatal crash killing the Polish leadership on the anniversary of the Katyn massacre may well have been that unexpected moment that turned the Russian heads. In my seventeen years in Russian business, it has been so obvious that the country was inching toward a reality first foreseen by Peter the Great, now led by the world-conscious young as they lead Russia out of the historic dark past into the light of the new world.”

Buy the book here  “Walking on Ice, An American Businessman in Russia”

All Economists are Wrong, Right?

 On my first tour of Russia in 1991, the tour director told a joke which still rings true today.

“President Mitterrand has one hundred mistresses. One of them has AIDS, and he doesn’t know which one. President Bush has one hundred body guards. One of them is a terrorist, and he doesn’t know which one. President Yeltsin has a hundred economic advisors. One of them is right, but he doesn’t know which one.”

Economists seldom agree and it seems that a country’s leader, especially if he is a dictator or autocrat, always has the pleasure of choosing economists who agree with him. This is so in Russia. The Soviet Union was a country of statistics. From top to bottom, statistics were created and recorded to prove a point. The point could be that the economic plan was working, or failing, that the factory was producing or not producing, or that a certain Comrade should be given a medal or shot—or both.

 One Economist was Right

 “The economic system of Russia has undergone such rapid changes that it is impossible to obtain a precise and accurate account of it…. Almost everything one can say about the country is true and false at the same time.”

John Maynard Keynes

The famous economist, John Maynard Keynes said the above, in 1925, It is true today. When Keynes made that observation, Russia was nearing the completion of the cruelest and most senseless civil war ever to ruin a promising country. It was Lenin’s twisted dream, his untried political theory which he perpetrated on a people he did not love, in order to satisfy a selfish penchant for proving himself right. It was like trying to balance a pencil on its point. It took seventy years, covering much of my life span, for its wrongness to become evident to all. Such a waste of human potential the world has never seen!

For more read “Walking on Ice, An American Businessman in Russia”

Immortal Words

To the orders of God or muse be obedient.                                                     
Don’t be afraid of insult,
don’t demand the laurel wreath.
Slander and praise receive with equal indifference.

And never argue with a fool.

Alexander Pushkin 1836

From a poem Pushkin wrote in 1836.
The epigraph is from Horace –
“Exegi Monumentum”

Three steps forward and two backward!

  “Nothing is impossible in Russia but reform.” Oscar Wilde

I think Oscar Wilde was wrong—but it will take time to know. The efforts to transform Russia into a viable and democratic economy, one that fits comfortably with the rest of the free world, will at best jerk forward over the coming years. But it is happening. Three steps forward and two backward. Still, one residual step in the right direction is something to be grateful for in a land of such immense potential. That is an improvement over Lenin’s assessment of Russian progress, “One step forward and one back.”

History has not been kind to the Russians. Seventy years of cruel rigidity under Communism within the context of a thousand years of autocratic rule has fostered a blind dependence on central authority, as de Tocqueville says “of servitude,” a resulting lack of personal responsibility and self confidence, and a fatalistic distrust of the future.

 Historically, and largely because of their geography, Russians missed out entirely on the pivotal events of Western development. A thread running through their complex political history is the fear of and acceptance of an all-powerful and sometimes arbitrary central authority, the influence of constricting medieval orthodoxy, and the mystical unifying force called the “Russian soul.”

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Starting a Business in Russia~How is it Different?

"The Barge Haulers" Ilya Repin

 “Doing business in Russia is like doing business anywhere else…but different.” Business is business, many think. Yes and no. How is doing business in Russia different from, say, the United States? Here are five points I can make—there are others. 

1. Get a partner. You are in a foreign country and you need a good partner as you would a guide to climb a mountain in The Himalayas. This is the hardest thing to do, since this decision may well tell the future for you. So take time. Visit, meet, talk, listen, listen more, get advice from trusted sources, and wait. Even if you have privately decided, let things cool off and don’t jump to conclusions. Often something will surface to add substance to your decision. Check him or her out. Know the family and their connections.
2. Listen to the partner. You must hear the story from the Russian perspective. Ask questions. Listen to the answers. Ask the same question another way. Listen. Patience.
3. Understand the “laws.” In America we have laws and for the most part they are clear and you have a good idea how they may affect you. Not in Russia. Their laws, if there are some pertinent to your purpose, may be there to benefit certain parties, maybe your competitor.
4. Be ready for a commitment. So many have failed in Russia because they thought they could fly in, hire a representative, and fly out again and carry on from outside—as they could, say, in Cincinnati. You have to be there, in person, most of the time. After a few years and you have a dependable team in Russia, sure, you can leave more in their control. But, always be ready to make your presence.
5. Keep it quiet. PR releases are common in America, announcing in advance you great plans. In Russia, I learned that PR releases inform your competitor what you are doing which may well cause problems. In Russia I found that it’s best not to announce you plans, but to work it quietly as possible and enjoy the success. Stories abound of well announced new projects being blocked by some unexpected action. Keep it quiet.

Experienced vets of Russian business may well have other rules they have learned and those may well be just as important. These are some of mine.

For more read “Walking on Ice, An American Businessman in Russia”

Russian Women

In Chapter 38 of “The Domostroi”, which I jokingly call a sixteenth-century, Ivan the Terrible,  version of Good Housekeeping, the husband is admonished exactly how to discipline his wife and children, “…beat them only with the lash, in a careful and controlled way, albeit painfully and fearsomely.” Progress has been made in Russia, but progress, like all else, is in this case relative.

March eighth is Woman’s Day in Russia. Its history goes back to the 1917 Russian Revolution.  Like most things in Russia today, it is controversial. Some say it is a transparent apology for mistreating women the rest of the year, which is to some degree true. Others say that women have come a long way in Russia and are, or should be, grateful for that step forward¾also true. And I said, about ten years ago when I first wrote the essay on Russian Women which is in my book, “Walking on Ice…,) they still have far to go. But things have changed. Russian women today are increasingly at the forefront of society, business, politics.  The Moscow Times reported a few years ago that sixty percent of the new businesses in Moscow were started by women.

Amongst the over sixty employees in my first Russian company a large percentage were women and they were for the most part capable, determined, technically competent, trustworthy, and loyal. I enjoyed working with them. I could depend on them

There is a lot of various opinions about Russian women, some not too complimentary. But in my book, they are unique and fill a very important place in society—in Russia for sure, but also just about anywhere they decide to be. In my book I list six kinds of Russian women: the beautiful, the babushka, the Barbie, the beaten, the bold, and the bewildered. To understand all this you will have to read “Walking on Ice….” Enjoy.

Partially excerpted from “Walking on Ice, An American Businessman in Russia”

“What Is To Be Done?”

How to succeed in Russian business is the question. While it does not require sleeping on a bed of nails, as the hero did in Nikolai Chernyshevsky’s famous novel What Is To Be Done? to prove his commitment to his Marxist ideals, it does require a clear and serious intent, dedication, perseverance, and many other things. In a land historically devoid of the predictability of law, the cement of society is built on personal relationships. This takes time.

That interwoven matrix is complex. That is why one never makes commitments he cannot deliver. It is deeds, not words that count. Character is more important than contracts. Once that trust develops, I found the Russians reliable, resourceful, dedicated, and hard-working. New leadership is developing out of that growing pool of forward-looking younger men and women. After you understand the system and the relational foundation of Russian society, the pathway is reasonably predictable. You learn in short order how to pick your friends. You may make mistakes, but learn from them and move on.

 Unfortunately, my biggest problem was dealing with Americans who somehow felt the rules that constrained their ambitions at home did not apply in Russia. In the end, most of them learned the hard way. Some returned home posing as experts. Some returned disillusioned and broke. One, at least, is buried there. In Russia, like anywhere else in my experience, honesty, intellgence, reliability, and good hard work are respected and gain the kind of reputation on which solid business is built. Having said all that, in dealing with Russians sometimes it helps to think of two dogs. Remember The Grand Inquisitor’s “authority.” You never want to be in the submissive position. You lose respect. You also don’t want to be the dominant aggressor. You growl a lot but get little done. You must assume the authority to be equal, never submissive. Even if you have to fake it, never be the bottom dog in Russia.

One Soviet joke illustrates this in a different way. Two sailors, one a Russian and the other Ukrainian, were walking down the street in Sevastopol and on the sidewalk they find a ten-dollar bill. The Russian says, “Great, let’s share this like brothers.” The Ukrainian however says, “No, let’s split it 50/50.” Partnership can be subjective.  I don’t belittle the issue. But, I never let it slow me down. You can steer around it.

One of the perplexing answers to “what is to be done,” comes from Victor Chernomyrdin who in 1997, at the end of his stint as premier of The Russian Federation said, “We hoped for the best, but it turned out like always.” Or another of his historical remarks, “If one considers what could have been done, and then what we did do over this long time, one can conclude that something was done.” Really?