06
Mar
11

Changing Capitalism – Part 2

It’s time to refresh our capitalistic system. It is the greatest economic system ever devised by mankind and it requires constant attention and vigilance to maintain its relevance and vitality. These are times that demand that leaders step forward and take a courageous stand. 

At its core, capitalism depends on trust and leadership to survive and thrive. Right now, trust in business leaders is at an all-time low. We need to change business-as-usual in order to change the tide. If we don’t raise the bar and hold our profession to a higher standard, we will cede the right to control our future to politicians and regulators. 

Unfortunately, we deserve the ratings we are receiving right now. Our leaders have been involved in numerous ethical breaches from Enron to Wall Street. We have failed to truly embrace innovation in a way that harnesses all our talents and potential. We surrendered some of the strongest parts of our economy to foreign producers. As businesspeople, we have not done a terrific job in maintaining our world leadership. 

The Great Recession only emphasized these points. The downturn left us with high unemployment and slow growth. Our traditional growth engines have stalled with little opportunity for robust recovery. It’s unclear how we will grow in the future and people are looking for leaders who can make sense out of the present situation. 

It’s time for business leaders to step up and the downturn provides many opportunities. Managers can no longer masquerade as leaders: The present situation is too important and too fertile to be left to people looking for incremental solutions or actions that worked in the past. Stress opens gaps for genuine change and opportunities to engage in a new way. 

The true challenge to refresh capitalism is to raise the bar for all participants. It’s time to demand better performance on all fronts – not just the financial metrics. All of us must live up to a higher standard of personal performance and ethical benchmarks. It starts with each one of us individually answering the challenge. 

We live up to the standards individually, but we are judged collectively. Therefore, it is no longer acceptable to just look at our own performance and the performance of our charges. We must also accept responsibility for the actions of our peers and hold them to the same level of accountability. It’s no longer acceptable to say “I’m good” and leave clean-up to someone else. We are being judged as a group and we are only as strong as our weakest link. We can no longer stand by, wring our hands, and grumble about those who let us down. 

As leaders, we must demand more from the system. That means you and it means me. How are you making yourself better this week? How are you helping your organization live up to a higher standard? What are you doing to make that standard a norm in your community? 

It’s a difficult challenge…but no hill for climbers! Our future success demands that we set the new standard.

 Are you ready for the challenge?

 

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