The main day of the Turnaround Management Association's 2008 annual convention kicked off in New Orleans with a near hour-long keynote address from former General and Secretary of State Colin Powell. In a blue tie, white shirt and dark suit, Powell spoke of the essential role of the organization in troubled times, as it's the turnaround specialists, financial advisers, restructuring attorneys, auctioneers, judges and others that help it deal with distress and survive.
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Powell, now a strategic limited partner at venture capital firm Kleiner
Perkins Caufield & Byers, stressed that the techniques of
leadership are universal and rooted his beliefs in his initial training
at Fort Benning in Georgia and Alabama some 50 years ago. Leaders, he
said, need to convey purpose, goals and mission to their followers.
Followers, whether soldiers or employees, depending on the frame
of reference, must be inspired and given the tools to succeed, Powell
said, because ultimately an organization succeeds or fails because of
the people in it. He stressed that leaders must make decisions quickly, and they must
face reality and root out poorly performing followers, lest they damage
an entire organization.
Ultimately, he noted, trust within organizations is key to success.
"You know when you're a good leader when your troops will follow you
just out of curiosity," Powell said. "You've got to build these bonds
of trust between the people."
Powell also spoke of the turnarounds he has witnessed, from the
collapse of the U.S.S.R. to China's entry into the global marketplace to
his own turnaround of the U.S. military via a 25% reduction in forces
following Operation Desert Storm. In the last instance, the challenge was to launch a turnaround to keep an organization at the
top of its game, Powell said.
Concluding on a broader note, Powell noted that with the powerful
forces shaping the world (economics and wealth creation, energy,
education of the young), opportunities and challenges greet the U.S.,
which give the country further chances to continue its leadership role.
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David Elman
