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The Conference Board Review® Article
Openers
Getting It Wrong
By A.J. Vogl
Why do CEOs get paid so much? Short answer: because they're better at certain tasks than almost anyone else. Chief among these is the ability to make tough decisions that affect thousands of people and -- sometimes more importantly -- millions of dollars. But as Jim Krohe shows in our main cover story, "Money Changes Everything" (page 48), even CEOs get muddled when it comes to decisions involving money.
Krohe looks for reasons, and finds answers, in "the maturing science of economic psychology," which examines why we think the way we do about money. Those poor decisions about which investors and employees grouse are all too likely "the result of unconscious biases that subvert otherwise-sound analysis."
Krohe also points out that the self-confidence and aggressive personality that got the CEO to the top are the same traits that push him to take unseemly risks. No surprise, really, when top executives hired to make things happen do, in fact, make things happen. But what about when they don't? In "Boardroom Blitz" (page 27), Stuart Crainer and Des Dearlove discuss an issue that haunts corporate America's boardrooms: why senior executives used to butting heads and getting their way so often turn into lambs when they step into the role of corporate director. To function effectively -- albeit not necessarily smoothly and peacefully -- a boardroom needs to be a space of conflict, a safe space for directors to hash out disagreement. But first, there needs to be disagreement.
Need evidence that disagreement -- clashes of wills between people at the top of their game and profession -- can generate great results? Check out "Managing Out of This World" (page 38), in which Esther Rudis gets deep inside a high-level, high-pressure mission to develop a pair of wheeled rovers -- and get them to Mars. An anomalous and unusual situation? No question, but I think you'll be surprised by the parallels to corporate environments in which a team is brought together for the purposes of accomplishing the near-impossible. Balancing between structure and improvisation, with a looming deadline, the Mars team pulled off the assignment -- and has photos to prove it.
And much closer to home, in "How to Lose the War on Talent" (page 54), a trio of college-recruiting experts offer some tips on how to woo -- or alienate -- your next generation of rising stars. From your lead recruiter's presentation style to summer hires' job responsibilities, you need to sweat the details, especially since the entire campus will learn those details in short order through e-mail, instant messaging, and Facebook.
Today's students are more cynical than they used to be, more closely connected, and a lot less impressed by offers of free pizza. You've been warned.
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Return to the November/December 2007 The Conference Board Review® issue.
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