Wednesday, May 12, 2010

Former Military Leaders as Elite Captains of Industry

From the people who brought us $640 toilet seats and $500 hammers, the government this time has actually helped corporate America by teaching military leaders the worthiness of being a corporate executive. At a time when executives across the United States are confronted with the potential crisis of the looming shortage of younger talent being executives of the future, executives are addressing the junior leadership void.


Corporate America has long tapped the talent of leaders who began their careers in the U.S. military- a testament to how well the Armed Forces train future leaders. Military metaphors abound in the world of business. Companies rarely enter new markets,; they usually "invade" them.

Many former military leaders have MBAs and after they leave the military, they became business leaders in various organizations across the United States. The experiences many of these individuals have from their military careers serve them well as leaders in corporate America.

According to a study completed by Korn/Ferry International, that companies led by executives who had been soldiers often fared better than their competitors and the CEOs lasted longer in their jobs. They had an average tenure of 7.2 years, while those who did not have a military background lasted 4.6 years on average.

Its researchers believe that because CEOs often have to make difficult decisions in demanding circumstances, the military is a good training ground as it gives soldiers considerable expertise in handling high-pressure situations.

Running a corporation, like waging a war, requires strong leaders who can focus on the mission at hand amid enemies bent on defeating them. Clearly, some tactics and strategies are interchangeable between the boardroom and the battlefield.

The trend is not entirely new. Within the past decade, corporate honchos could march to the advice of books that enlisted the strategies of such noted warriors as Gens. Ulysses S. Grant, Robert E. Lee, and General George S. Patton. But today's military leadership books are riding a crest of fortunate timing.

At the beginning of 2009, there were 39 CEOs of S&P 500 corporations who are military veterans. Countless others are leading smaller companies or serving in key senior executive positions throughout corporate America.

The Korn/Ferry report identified six common leadership traits that serve veteran corporate leaders well in the boardroom:

1. Learning how to work as part of a team
2. Organizational skills, such as planning and effective use of resources
3. Good communications skills
4. The ability to define a goal and motivate others to achieve it
5. A highly developed sense of ethics
6. The ability to remain calm under pressure

7-Eleven CEO Joe DePinto, "I give the Army and the military a lot of credit for progress I've made my career." He went on to say, " A lot of it has to do with leadership development that I learned. How to lead soldiers, how to lead people, putting the organization ahead of yourself, having a can-do attitude, a focus on getting the job done regardless of what the job is. I really point to those as part of the reason why I think I have been successful in my career thus far."

Bob Ravener, who served as a senior executive with Starbucks Coffee Company and the Home Depot on his way up the corporate ladder, also acknowledged the crucial role his service as a Navy officer played in his career. "I learned valuable skills such as self-discipline, teamwork, leadership, service, relationships, commitment, calm in the face of adversity and delivering results. These skills have proven integral to success in business as well.

Corporate America is looking for leaders, and if they cannot find them in the ranks of their own employees, the military is producing more and more leaders through their ranks for corporate America. Some companies and organizations are beginning to shift gears in how they operate due to these individuals leaving the military and joining the ranks of corporate American leaders.


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