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Q #66: What business lessons can be learned from FDR’s key decisions?
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In an article that appeared in the July 6, 2009, issue of Time magazine, Peter Beinart identifies and discusses six “key decisions” that President Franklin Delano Roosevelt made. Here are several business lessons that could be learned from them.
1. “Cash and Carry” (September 11, 1939): “F.D.R. asks Congress to approve a plan allowing the Allies to purchase arms and supply transport.” This was approved and, in 1941, the Lend-Lease Act was passed.
Business Lesson: When encountering great resistance that will be difficult (if not impossible) to overcome, reframe what you have in mind and find another way to present your proposed course of action.
2. “Arsenal of Democracy” Fireside Chat (December 29, 1940): “Explaining why the Axis powers must be defeated and Britain and its allies defended at all costs, F.D.R. exhorts Americans to help churn out” more of what is needed to achieve the ultimate goal of victory.
Business Lesson: To build support for a bold initiative, especially one that may require significant sacrifice (e.g. “blood, sweat, and tears”), speak directly and frankly to those who will be involved. The most effective C-level executives “manage by walking around,” spending most of their time listening but also seeking support for what must be done…and why.
3. “Four Freedoms” State of the Union Address (January 6, 1941): “F.D.R. describes his vision of a postwar world founded upon four essential freedoms (i.e. speech and expression, religion, from want, and from fear) because´” Our strength is our unity of purpose. To that high concept there can be no end save victory.”
Business Lesson: Jim Collins coined the term “Big Hairy Audacious Goal” (BHAG) and that is what F.D.R. had in mind when sharing his vision of the postwar period and what, 20 years later, President John Kennedy had in mind when setting a national goal to place an American on the moon and bring him home by the end of the decade. People are excited by and want to be associated with a bold vision.
4. Atlantic Charter (August 14, 1941): After secret meetings with Winston Churchill, F.D.R. and he issue joint declaration for postwar world of eight key points (e.g. self-determination and free trade) that indirectly were advocated by the United Nations and the General Agreement on Tariffs and Trade.
Business Lesson: After reaching several agreements at Camp David, Israel’s Prime Minister Begin and Egypt’s President Sad at were asked how they accomplished that after centuries of warfare. Begin replied, “We did what all wise men do: We began at the end.” Companies as well as nations would be well-advised to follow Alan Kay’s advice, “The best way to manage the future is to invent it.” But first know exactly what you want that future to be.
5. Tehran Conference (November 28-December 1, 1943): F.D.R. and Churchill agreed to launch a second European front to divert German troops from the U.S.S.R. and also (grudgingly) agree to allow Stalin control over much of Eastern Europe. In return, Stalin agrees to have Soviets fight Japan after defeat of Germany.
Business Lesson: This was a trade-off that F.D.R. dreaded and Churchill hated but one that was necessary. Sometimes in business, there are immensely difficult but nonetheless necessary decisions to be made, not only to achieve success but to avoid disaster.
6. D-Day Invasion (June 6, 1944): It took more than a year to plan and involved some 160,000 troops, more than 5,000 ships, and 13,000 aircraft on the first day alone. Thousands died during the initial assault on French beaches, “but the operation gives the Allies a foothold in France.”
Business Lesson: This business lesson is related to the previous one. As Supreme Allied Commander (Europe), General Dwight Eisenhower had to decide whether or not to launch the invasion on June 6th. He wrote a letter assuming full responsibility in the event that it failed after obtaining the best advice available to make certain that he fully understood all of the risk-reward considerations. In business, also, that is what decision-makers must do every day. The more they know and the better they understand what's involved (dangers < > opportunities), the more likely that they will make the correct decision.
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