<p>Leadership Principles for the 21st Century</p>
<p>Keynote Address
By
Dr. Francis J. Harvey</p>
<p>United States Merchant Marine Academy</p>
<p>19th Battle Standard Dinner
April 12, 2007</p>
<p>Kevin, thank you for that kind introduction.</p>
<p>Admiral Stewart, Admiral McMahon, Admiral Herberger, Members of the Faculty, Midshipmen, Visiting students from the other Federal Service Academies, Mr. & Mrs. Seesan, Distinguished Guests, Ladies and Gentlemen. Good Evening. </p>
<p>It is real pleasure to be here at the Merchant Marine Academy. This is my first visit, I thoroughly enjoyed my day and I must say that I am very impressed. As an institution, you have been an important part of our country’s history during both peace and war for over 60 years with a very proud record of achievement. </p>
<p>I say that because the United States is a maritime nation with an economy that is critically dependent on imports and exports, most of which come by sea. So without an efficient, effective and secure maritime industry, this country could literally not function. And without competent and dedicated people, like the many graduates of the merchant marine academy, this industry would, in turn, not be viable.</p>
<p>Today, I want to talk to you about a subject that has been and will be absolutely essential to the success of the maritime industry. A subject that is very relevant to tonight’s battle standard dinner. And, finally, a subject that has been one of the key reasons why the United States is the greatest country on earth and that subject is leadership.</p>
<p>Although all of you midshipmen are in the very early stages of your career, and will not be in a leadership position for several years, you have been here at the academy, and will be in the near future, a part of organizations that are headed--up by a senior leader and his or her leadership team. So, for sure, it is not too early for you to think about the essence of leadership and what makes a specific leader effective, while others are not, and then to begin to determine from your own perspective why that is the case. In this way you can start to develop your own style and approach to leadership, which will, in turn, be essential to your success in the future.</p>
<p>As I previously stated, a discussion of leadership is very relevant to tonight’s battle standard dinner in which we honor the 142 Midshipmen who gave their lives as part of shipboard training during World War II. If we take a few minutes and reflect on that war, which was truly a critical turning point in our history, it is clear that one of primary reasons that we were victorious was strong political and military leadership. </p>
<p>As a matter of fact, if we reflect on our country as a whole from its humble beginning to the great power that it is today, it is also clear that strong leadership consistently played a critical role. From the Revolutionary War to the Civil War to two world wars to the Cold War, strong political and military leadership was key to achieving victory. If we consider the many difficult economic times that our country has experienced over the years, especially during the Great Depression, it was strong leadership that carried us through.</p>
<p>The type of leadership that we are discussing here is what I like to call national leadership. It is at the highest level. Almost equally important to the evolution of our country into the greatest power on earth is what I refer to as organizational leadership. </p>
<p>Here we are talking about the thousands and thousands of small, medium and large organizations in this country that must be successfully led if we are to remain the beacon of freedom and the land of endless opportunity. These organizations encompass the entire spectrum from the public to the private to the not—for--profit sectors and include local, state and federal government, including the military; corporations in the financial, energy, electronics, communications, information, construction, health care and transportation sectors; and, finally, the many charitable, educational and professional organizations. </p>
<p>The successful operation of each of these individual organizations is critically dependent on effective leaders. It directly follows that the overall progress and stability of our country as a whole is critically dependent on effective organizational leadership. As the secretary of the army, I had the opportunity to visit many countries around the world including eight visits to Iraq and Afghanistan. And I can tell you first hand what happens when there is no effective organizational leadership.</p>
<p>There is no question in my mind that the solution to establishing a free and democratic Iraq and Afghanistan that will endure is primarily political and economic, and not military. Most especially in Iraq, it is a political compromise coupled with the establishment of properly functioning political and economic organizations that will provide the people with an acceptable quality of life – which, most especially, includes the opportunity for a job. If the average Iraqi believes that he ( or she ) will be better off tomorrow than he ( or she ) is today, then there will, for sure, be a free, democratic and prosperous Iraq on a permanent basis.</p>
<p>The starting point for becoming an effective leader of any organization in the uncertain and unpredictable 21st century is a set of enduring leadership principles.</p>
<p>During the course of my career in both the public and private sector, I have had the opportunity to lead and manage a number of large organizations. Of course none quite as large as the army with nearly 1.5 million military and civilian personnel, 4100 installations, 1billion sq. ft. of buildings, and a total budget of over $200B. </p>
<p>These experiences have afforded me an opportunity to develop a set of leadership principles that have formed the foundation for all the organizations that I have had the privilege to lead and manage over the years. Although the most recent organizations are large and complex, I started out small like most everyone else. So I believe that many of the principles that I will present to you today apply equally as well to any size organization. Needless to say these principles have evolved over the years as I have assumed more and more responsibility</p>
<p>In the beginning, these principles were mostly internal and intuitive. But as I was given the opportunity to lead and manage larger and larger organizations, I felt that it was necessary to formalize them. </p>
<p>Today, I have seven principles of leadership that provide me with a basic framework. Some of these are specific and are derived from my own personal beliefs and values, but others particularly the first and last one, start out in a more general sense and then have been tailored to fit me personally.</p>
<p>Let me now describe my principles of leadership to you</p>
<p>First, establish the attributes and characteristics of the ideal leader — the model leader, the type of leader you aspire to be.</p>
<p>The following is my model. I might note here that this ideal leader has a lot in common with the army’s ideal leader for the 21st century—who is commonly referred to as the pentathlete. Specifically, an individual who</p>
<p>1) Sets the standard for character and integrity
2) Is a confident and competent decision maker in uncertain situations who is
- a prudent risk taker
- innovative
- adaptive
- accountable
3) Is Empathetic and always positive
4) Is Professionally educated and dedicated to life long learning
5) Is an effective communicator</p>
<p>Decision-making is so critical to being an effective leader that I have established a separate principle on decision-making that I will discuss last. </p>
<p>The second principle is that an effective leader establishes a sound strategic and financial foundation for the organization. This must be done immediately and, in essence, involves answering the following eight critical questions: first, where are we as an organization; second, what are the characteristics and key issues associated with the environment in which we operate; third, what are we trying to accomplish; fourth, what are the organization’s major short and long term challenges; fifth, where are going as an organization; sixth, how are we going to get to where we are going; seventh, how much is it going to cost to get there; and, finally, what is the payoff along the way as well as when we eventually get to where we are going. </p>
<p>These questions are, in turn, addressed by establishing: first, a comprehensive description and understanding of the environment in which the organization operates; second, a clear mission and vision for the organization in the context of that environment; third, a set of overarching and interrelated strategies coupled with a supporting set of implementing initiatives and programs to accomplish the mission and make the vision a reality; fourth, a set of enduring values that establishes the fundamental moral, ethical and operational framework to guide all peoples’ actions of and, finally, a real time performance measurement system including strategic, operational and financial measures. For existing organizations, this required foundation may have already been either partially or fully established, so a new leader’s job would primarily be to both update and impart his or her own insights and experiences into the foundation.</p>
<p>To operationalize this foundation, every member of the senior leadership team must establish a set of personal priorities and objectives based on the key elements of the foundation and then cascade them down to each and every member of their supporting organization.</p>
<p>The third principle is that people are the single most important part of any organization and should always be treated with dignity and respect. In an every day sense, this is the most important principle.</p>
<p>The fourth principle is that the organization must continuously change and improve every single day, and this must never stop. In essence, evolutionary changes that lead to revolutionary results. For corporations and the business operational aspects of government and not for profit organizations, this change and improvement can be accomplished by establishing a formal, organization-wide business transformation initiative. </p>
<p>The fifth principle is that there is no substitute for trust and teamwork. The army clearly sets the standard here. There is no question organizations can quickly become Dysfunctional when these intangibles are missing.</p>
<p>The sixth principle is that never forget what ultimately counts in the end is results. The organization must perform and meet its mission as well as its underlying long and short term goals and objectives in a balanced way, otherwise the organization eventually goes out of existence. </p>
<p>For profit—making organizations, the annual objective setting exercise operationalizes this principle and is, in theory, straightforward with the focus on both short and long term financial goals. However, in practice this easier said than done, particularly for publicly traded corporations, because it is difficult to establish a set of financial objectives that balances both the short and long term because of the constant pressure to maximize short term profitability. </p>
<p>And, finally, the seventh principle is that decisions must always be made carefully with full consideration of the impact that they have on both the people involved and the organization at large.</p>
<p>Let me share with you my five supporting principles of decision--making</p>
<ul>
<li><p>First, decisions should never be made in haste or in a high state of emotion</p></li>
<li><p>Second, decisions should never be made until the basic facts are in</p></li>
<li><p>Third, decisions should never be made based solely on political expediency</p></li>
<li><p>Fourth, decisions should always be made in a way that balances the elements of continuity and change</p></li>
<li><p>finally, personnel decisions should always be made taking a person’s entire record into account, not just an individual event</p></li>
</ul>
<p>There you have it -- my seven principles of leadership that I have learned in nearly four decades in the both the public and private sectors. Let me briefly summarize them</p>
<pre><code>-First, establish a model leader
-Second, develop a sound financial and strategic foundation for the organization
-Third, people are the most important part of any organization
-Fourth, continuously change and improve the organization everyday—evolutionary changes leading to revolutionary results
-Fifth, trust and teamwork are essential
-Sixth, results are ultimately what count
-Seventh, decisions must always be made carefully with full consideration of the impact on people and the organization
</code></pre>
<p>I hope that these principles will in some way help you as you begin your career and begin to develop your own unique approach to organizational leadership. </p>
<p>Let me close where I started, it is no accident that the United States of America is the greatest country on earth and among the handful of reasons that make it that way is a consistency of effective leadership through out our history at both the national and organizational levels.</p>
<p>Thank you for inviting me, I have thoroughly enjoyed my day here at the merchant marine academy with the opportunity to speak to you on a subject that I am obviously very passionate about, and one that I know will be critical to each of you in the future.</p>