Author: Harry Kraemer

My New Book Is Nearly Here: “Your Values-Based Legacy”

Every book I’ve ever written can be traced back to my students and the class discussions that always inspire me. My first book, From Values to Action: The Four Principles of Values-Based Leadership, began as a transcription of my lectures by a student, Samir Gokhale, who told me, “Now you can write your book!”

After that first book, my students said to me, “Harry, now that we know what it takes to be a values-based leader, what about building a values-based organization?” After some reflection, I began writing my second book, Becoming the Best: Build a World-Class Organization through Values-Based Leadership.

As our discussions continued, people heard me talk more about my favorite number: 168. (Spoiler alert: it’s the mathematical solution of 24 x 7). As I tell my students we all have the same number of hours in a week—168. The variable is what we do with those hours. That prompted my students to ask me, “How can we live a values-based life?” The answer was my third book, Your 168: Finding Purpose and Satisfaction in a Values-Based Life.

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Celebrating the Life of “Mr. Kellogg”

If you are a graduate of Northwestern University’s Kellogg School of Management (or the prior Northwestern University Masters in Management program) in any year from 1972 to 2010, I am confident you had the pleasure of getting to know a very special person, colleague, and friend: Dean Ed Wilson, better known to many of us as either “Mr. Kellogg” or “Dean Don Jacobs’ right hand man.”

As summarized in the notes below, Dean Ed Wilson passed away last week. The one thing I am extremely confident of is that if there is a heaven, Ed is now standing at the pearly gates with St. Peter and smiling broadly as he greets everyone with that famous Irish smile and Bostonian accent.

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How can boards of directors be less dysfunctional and more productive?

In the last several months, I have been asked this question by several organizations, including for-profit companies and nonprofit organizations.

My opinion is the issue causing the dysfunction is very consistent across organizations. For many organizations, it is not clearly defined as to the role of the CEO and the role of the board. Since the roles are not well defined, it is very easy to make assumptions, which leads to a high level of frustration on the part of all participants.

I was taught early in my career at Baxter that the best way to think about boards and governance is a really simple rule: “management manages and boards govern.” If this rule is clearly understood and followed by board members and management, things work very well. The problem starts when board members believe they should be directly involved in management, or management forgets that they report to the board in their role as fiduciaries.

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56 Days to the US Presidential Elections: A Few Opinions

Unless you are in a sailboat by yourself in the middle of the Pacific Ocean without cell service, or several miles deep in an abandoned coal mine, you are probably aware the US presidential elections will take place on November 5, only 56 days from today.

As you can imagine, I get asked several times a day by students and executives my thoughts on the upcoming election. As always, I make it clear that I have very few answers and many opinions. That’s why I don’t do “Q&A;” I do a lot of “Q&O.”😁
But before I get into it — spoiler alert!!! I am not going to take sides, and that’s actually my point. We have become so polarized that many people have not only stopped talking to one another, they actually dislike and even hate people if they hold different views on a topic. I read recently that parents used to ask their children before they got married, “What is the religion of the person you are marrying?” That question has been replaced with, “What political party do they belong to?”

I really believe that in a democracy you have the right to believe whatever you want to believe and vote for whomever you want to vote for. All I ask is for all of us to be respectful of people who have different views. That is why I encourage people to have a balanced perspective, and as always, “seek to understand before you are understood.”

OK, here are a few opinions that attempt to put some balance in some of the extreme comments I hear every day:

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How should companies deal with activist investors?

When a company first becomes aware that an activist investor is purchasing their stock, the first reaction on the part of the company is often to be very defensive and prepare for battle.

As you would expect from me, my first reaction is to approach the situation very differently – that is, with a balanced perspective.
Let’s first start with some background. What is shareholder activism? In an excellent article from the Boston University Law Review, “Reasonable Investor(s),” Tom Lin of Temple University explains that shareholder activism is a form of activism in which shareholders use equity stakes in a corporation to put pressure on management to achieve a higher stock price.

Okay, so stop and think about the goal of an activist investor. They have capital to invest and are focused on generating a return for their investors. Hmmmm, sounds pretty similar to the goal of company management, the board, and the company shareholders. 🤔

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