FIFA’s President: Bad Judgment under the Subterfuge of Miscommunication

In the 1990s, I asked the CEO of ATT whether there is not a conflict of interest in him being chairman of the board tasked with holding the corporation’s management accountable. “The buck stops here,” Armstrong replied as the dean of Yale’s business school looked on, uncomfortably. Fortunately, I was a student in another school at Yale at the time. Fast forward to 2026. The board of FIFA backed up its president, Gianni Infantino in spite of the fact that he had overruled a red-card to favor the U.S. team in that year’s World Cup and then he proposed selling a minority share of FIFA to private investors—a plan that was almost universally viewed by the regional football (soccer) associations as selling out the world’s game to private financial interests so they might profit from the non-profit international organization. FIFA had Infantino’s back, which prompted regional associations, namely UEFA, CONCACAF, and AFC to publicly raise a red flag concerning the very credibility of Infantino for having tried to sell out a minority financial interest in FIFA. Albeit sheer speculation, given U.S. President Trump’s interest in financial transactions in relation to his political office, and Infantino’s having acquiesced to Trump’s request that the one-game suspension from a red card against a player on the U.S. team be revoked, I wonder whether the two men hatched the idea of selling off a minority stake in FIFA to private investors, which might have included Trump himself, his family members, and even the Trump Organization. Such is the nature of collusion in what James Burns refers to in his text, Leadership, as transactional, as distinct from transformational, leadership.

The full essay is at "FIFA's President."

Corruption at the Top in France and Illinois

An important implication of the saying, a fish rots from the head down, is that it is important that corrupt heads be swiftly punished so underlings get the message that crime in public office carries considerable risk. In the matter of Ukraine’s possible accession (not merger!) into the E.U. as a new state, the old, deeply entrenched, culture of corruption in the potential state has been of particular concern in the E.U.’s executive branch, the European Commission. In both the E.U. and U.S., it’s worth asking whether some states are more corrupt than others. It is a mistake to treat all states alike in terms of where to direct federal resources and how much of a given state’s resources should be devoted to investigations of state officials. At least in 2025, Illinois and France could be said to have been “problem children” in this regard, and this doesn’t mean that Hawaii and Sweden, for example, also had as sordid corrupt cultures.

The full essay is at "Corruption in France and Illinois."

It’s Only Fair

Astonishingly, organizations can violate their own mission statement without any manager or non-supervisory employee being aware of the violation. This can happen even when the people in an organization really do take their mission seriously. At Goodwill, the mission is to end poverty, a laudable goal. It follows explicitly (i.e., according to a sign in the stores) that “every customer has an equal opportunity to purchase any item for sale.” Although the sign bases this point on the fact that the goods “come from public donation,” I submit that ending poverty by giving the poor access to relatively low-priced merchandise is hampered if some customers are permitted to fill their carts with on-sale (i.e., color of week) items when the doors open. Certainly allowing those resale-minded customers to deprive other customers of a selection of items on sale (especially clothing, which even homeless people need) is not fair.

The full essay is at "Unfairness at Goodwill."

Leadership vs. Management: Change vs. Constancy?

In the "leadership vs. management" dichotomy, "management focuses on getting work done on time, on budget, and on target--in other words, steady execution and control--while leadership focuses on change and innovation." However, this contrast of implementation and innovation is a different dichotomy. Abstractly speaking, a category mistake may be involved in this false dichotomy. Change would be occurring in the execution of an innovative vision. In the realm of change alone, formulating and selling it can be distinguished from making the change. Therefore, the “leadership vs. management” distinction does not reduce to “change vs. status quo."

Material from this essay has been incorporated into The Essence of Leadership: A Cross-Cultural Foundation, which is available at Amazon. 

Steve Jobs at Apple: A Visionary

Typically as a company transitions from an enterprising, creative new venture to a large organization to be managed, a staid CEO replaces a visionary founder. In the case of Steve Jobs at Apple, the very nature of the man’s vision was not only inherently at odds with the status-quo underpinning of a large organization with a budget, but also essential to the company’s business model. Hence, the company, including its shareholders, paid a price for years for jettisoning Jobs. The film, Jobs (2013), is centered on the distinctiveness of Jobs’ vision. Although the film also hints at why this distinctiveness is such that the company would (and did) lose as a large organization after making the typical founder-to-CEO transition.

The full essay is at "Jobs."

Connecting the Dots: Zuckerberg's Facebook Stock

Why did Mark Zuckerberg unload $2.3 billion of his Facebook stock? The complete answer likely involves more than meets the eye, at least relative to what business reporters and editors had to say publicly in 2013. What was not said is itself a story worth publishing. Beyond Zuckerberg’s stratagem, what the media didn't say might be more significant than what made it through the filters.
Part of the answer concerning Zuckerberg’s sell-off involves his need for cash to pay taxes that would be due from his exercising an option to purchase 60 million Class B shares in 2013. This move likely implies a belief that Facebook stock would not go much higher. Had Zuckerberg strongly believed at the time that Facebook was yet to cash in on advertising revenue beyond that which the market had already factored into the company’s stock price, the CEO would not have exercised the options in expectation of a wider spread. Even with the taxes coming due, the billionaire could probably have found an alternative way to come up with the cash. 

The organizational lifecycle. When Zuckerberg decided to sell a block of shares and exercise options, he already had a picture of Facebook already on the downward slope without much chance of revitalization. Image Source: www.sourcingideas.blogspot.com

The full essay is at "Zuckerberg's Facebook Stock."

Visionary Leadership at Zynga

Faced with a stock price down 75 percent since its IPO and conflict with subordinates throughout 2012, Zynga’s chief executive Mark Pincus had plenty on his plate as he met with Bill Campbell of Apple in September of that year. Zynga investor and venture-capital firm Kleiner Perkins Caufield & Byers had brought Campbell in to advise the CEO. While it is tempting to play around the edges and work on “communication processes” and hand out more employee stock-options, the bottom-line in such cases is typically the need to improve the products either simply to be better products or better tailored to changing consumer tastes and habits. Product development that can transform companies may result from the vision of a leader for whom strategy is simply a matter of reaching a destination already known.
 

Mark Pincus, CEO of Znyga. From this picture, it is hard not to like the guy.       Reuters

 

 

The full essay is at "Visionary Leadership: The Case of Zynga."

Hierarchy Hampered Down in American Business

Without going into either the labor or management camp, a person can viably critique the operation of hierarchy itself in business organizations. The notion is typically associated with the concentration of power at “the top,” rather than the relation of middle-level managers to “retail” managers and their subordinates. Efficiency of power at a corporate headquarters does not necessarily translate into “downward” efficiency at the level of middle management. I submit that precisely this efficiency is rather severely compromised in American business.

The full essay is at "Hierarchy Hampered."

How to Cure a Dysfunctional Company Culture: The Case of Uber

Valued at close to $70 billion and operating in more than 70 countries, Uber was giving traditional taxi companies a ride for their money in early 2017 when it came to light just how Hobbesian the company’s culture had become. In February, an engineer who had left the company two months earlier “detailed a history of discrimination and sexual harassment by her managers, which she said was shrugged off by Uber’s human resources department.”[1] Crucially, she claimed that “the culture was stoke—and even fostered—by those at the top of the company.”[2] Interviews with other employees and reviews of internal emails, chat logs, and tape-recorded meetings revealed incidents typified by one manager groping a woman coworker’s breasts at a company retreat, a director shouting an anti-gay slur at a subordinate during an argument, and another manager threatening to beat an underperforming subordinate’s head in with a baseball bat. The operative question is whether anything can be done about the accepted pathology.

The full essay is in Cases of Unethical Business, which is available at Amazon.

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1. Mike Isaac, “Inside Uber’s Aggressive, Unrestrained Workplace Culture,” The New York Times, February 22, 2017.

2. Ibid.

GM’s CEO: Ridding GM of Its Dysfunctional Culture or Enabling It?

Has GM's CEO, Mary Barra, been behind a "new GM," or has she actually been protecting the old guard?

The essay is at “GM’s CEO”

U.S. Postal Service: Home Delivery Up Next?

After years of billion-dollar losses, the U.S. Postal Service announced in February 2013 that the “long-held tradition of Saturday delivery” would come to an end. Only packages would still be delivered on Saturdays. The Postal Service expected the change to save $2 billion a year. That even such a minor “tradition” would have had such staying power amid billions of dollars of losses supports the old adage, old habits die hard. It is as if even a minor change from a long-standing practice would throw us into chaos. Our tolerance for ending things that have been around seemingly forever is far too limited.

Moreover, the human aversion to changing long-standing customs or practices adversely narrows perception itself. For example, the much costlier, labor-intensive practice of delivering mail to homes was as though above critique. Particularly with many Americans paying their bills online, the “need” for mail delivery even five days a week to one’s house can alternatively be viewed as antiquated.  It is as if that practice had gone on as though without any thought on it itself.

                                               Is this highly labor-intensive custom really necessary?    source: zimbio

The door-to-door salesmen selling vacuums or Bibles had surely become a relic long after the film Paper Moon popularized the lifestyle. Why then have we held on to the notion that mail should be delivered to one’s apartment building or house? We go to stores to get food and medicine. Particularly with so many people paying bills online, is mail so much more vital than food or medicine that we couldn’t just as well stop by our local post office to pick up our mail a few times a week? At the very least, we would not be bothered by the anxiety of whether a threatening notice is waiting for us at home. Just as computer technology has enabled the automation of stored-book retrieval in a few academic libraries (e.g., the University of Chicago), the Postal Service could automate mail retrieval so millions of P.O. Boxes would not be necessary.

In short, we humans are not very good at “thinking outside the box” of current custom. Put another way, habits that have gone on seemingly forever have a habit of going on mindlessly. The U.S. Postal Service has suffered greatly from this particular human proclivity. Perhaps with a wider perspective other institutions can be found that are similarly suffering assumed demands to perpetuate practices that are no longer justified.

Source:

“U.S. Postal Service Right to End Era of Saturday Delivery: Poll,” The Huffington Post, February 9, 2013.