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By: Dr. Arnold Encomendero Dávalos
www.arnoldencomendero.com

BERTOLL BRECH was so right when he said: “Crisis is produced when the old is not fully dead and when the new is not fully born”. Suffice it to correlate the main causes of the Brazilian, Russian and Asian Crises in 1998-1999 with the three singular crisis from 2008-2009, such as the mortgage, ecological and food crises still occurring in USA and Europe which incidence leads us to firmly affirm that the lack of a true Leadership with moral and technical aptitude was the main root of all disgraceful CRISES experienced in a Higher Civilization. With regard to the above, well respected and consultant Sydney FINKELSTEIN PhD conducted a comprehensive research aimed at finding solid answers to the following questions: Why do smart executives fail?, why do LEADERS that were so successful during their lives fail?, why do successful leaders do sometimes fully irrational actions?, why do they ignore evidence that implemented PLANS are not working well? The transcendence of FINKELTEIN’s study is that it explored in details the origins and causes of misfortunes of more than hundred HIGHLY SUCCESSFUL COMPANIES that collapsed such as: ENROM. TYCO.WORLDCOM. XEROX. MERC etc. at the common denominator of their failure that he brilliantly DETECTED was THE ARROGANCE OF THEIR LEADERS, or their CEOS or Chief EXECUTIVE OFFICERS, executive presidents that, during the most successful time of the Companies they run, acted with Arrogance and even greed. They considered themselves WISE GUYS, choosing their personal interest instead of the corporate interest. They invested million dollars in selling their managerial imagen promoting a misconception of business loyalty with their greed and vanity, casting aside their Personal dignity and corporate responsibility.


Business Leaders for Excellence:
richard branson
 
As corollary of this important research well exposed in FINKELSTEIN’s Book, the excellent eloquence pointed out that arrogance and self-indulgence are the main enemies of LEADERS since political and business Leadership may be true illnesses that have produced Personal SCANDAL and discredit, and the destruction of Assets of the Companies they run; therefore, the wise message of this Book is mainly, in the light of the author and their critics, an intelligent and well documented called to HUMBLENESS, SENSIBILITY, REALISM, and an urgent need to put first the companies’ interests to the community instead of personal vanity.

Actually, wise advices and master lessons taught by Sydney FINKELTEIN have not been heard by management leaders of corporations such TOSHIBA which CEO HISAO TANAKA resigned when he admitted that since 2008 he submitted false balances inflating figures in 1,200 million Dollars causing the biggest financial and accounting scandal in the Japanese History. That is even more relevant considering that Japanese CULTURE has always been an expression of decent work and pure honesty, even worse in the case of a GIANT company in the electronic world.
 
Science and technology leaders:
richard branson
 
UA most recent case involving values crisis in political and business Leadership is the PETROBRAS SCANDAL that, since it was brought into light in May 2014 shows a corruption network arising an endless number of legal, financial, and political problems that, after a year of judicial and police investigation, dozens of people were put behind bars, most of them TOP EXECUTIVES of contractor companies that participated in a bribes per contract loop, as well as heads of PETROBRAS and agents, accused of being part of a criminal organization. Executive presidents of leading constructor companies such as ODEBRECH. ANDRADE Y GUTIERREZ. CAMARGO Y CORREA. Constructora OAS and QUEIROZ GALVAO, that conducted works in several Latin American countries, face charges of corruption and assets laundry; executive presidents of ODEBRECH, and Andrade y Gutierrez, have been arrested under charges of accepting millions in bribes to Petrobras directors and politicians in order to secure contracts with PETROBRAS.

Within this referential framework of “human flaws”, it is needed to think that the Company as well as the State and the Market are human products; therefore, they have flaws; but at the end of the day, as truly stated by Amartya Sen, Nobel Prize in Economic Sciences, “the human being, as leader or as Manager, is responsible for the incorrect handling of economy and its disorganization of its projections and entrepreneurships”. Likewise, the French philosopher ANDRE COMTE-SPONVILLE said: “The amoral Market is capable of being limited and ETHICS is not enough to stop its excess because, among the forces of economy and the weakness of morale, we need POLITICS to regulate the Market and fix it LIMITS”.
 
Rich and Smart Women Leaders:
richard branson
 
An editorial of the NEW YORK TIMES analyzed the 1968 and 2008 financial crises, and reached to the conclusion that: “This crisis is the result of a volunteer and systematic failure of the Government (USA) in its function of regulating and maintaining the activities of bankers, loaners, investment funds, insurers and others, because they were gambling with the financial system without proper supervision and transparency”.
These appreciations on living in crisis over crisis since 1998 make us clearly see that the Leadership crisis and the values crisis, depicting and explaining the failure of successful Companies run by Intelligent Leaders, must make us thing, encourage us to form and foster a MANAGING AND RULING CLASS able to efficiently and effectively match cognitive Intelligence with Emotional Intelligence, economic Intelligence with Spiritual Intelligence, with an ethical and technical application, enabling them to do and make, do and teach how to be, as SIMEON and ANA , think, see and feel to act for the best interest of management and negotiation with a “healthy mind and pure heart”; because to be true LEADERS, there is the immanent and transcendent obligation of being FAIR, GOOD, PRAYERS, AND PERSEVERANT. Here is found the essence of true Leadership, making us think and act with moral and technical aptitude, to cherish a financial, administrative and economic management, that is trustworthy based on good faith and expectations of investors and Groups of Interest.
 
In front of the complexity of the world and life, with globalized financial storms, there is Transactional Leadership, albeit useful for “being safe”; but transformational leadership goes beyond, it transcends daily management, it creates and motivates teams with Goals and incentives to upgrade performance taking into account big and little details of transactional responsibility and functions, which shows the degree of complementariness to lead the Company towards SUCCESS. Here emerges the Vision and Mission of the TRANSFORMING leader, able to make a LEADING COMPANY integrating cognitive Intelligence with emotional Intelligence, with value innovation, and then to correlate passion and commitment being aware that human dignity of the Management Leader and Groups of Interest, along with efficiency and Transparency, are the ultimate values to have a meaningful life, and boost the development of the Company to strengthen its Competitive Positioning in order to ACHIEVE: Brand Excellence, Corporate Reputation, Good Quality of Products and Goods according to preferences and expectations of Clients, Technological Research and Development, Commitment to Community and Environment, and the firm and unrestricted respect to Consumer’s rights.In digital economy and life, before the failure of successful Companies run by intelligent Leaders, which occurred in the business sphere and mostly in RULING CLASS of developed, emerging, and developing countries, that experience high levels of corruption, IT IS A MUST TO JOIN and juggle, now more than ever, an EFFECTIVE VALUE CHAIN between the performing and creative capacity of a GOOD MANAGER to the innovation and transforming capacity of a GREAT LEADER, so TWO MAJOR QUESTIONS arise on a research to be published on a forthcoming BOOK:

How to form and have TRANSFORMING LEADERS that are role models, with strategic and visionary thinking and high performance with valuable innovation linked to their honest and transparent acts, which feasible and profitable projects and ideas, and to be complemented to the so necessary and demanding Social Responsibility, with a STATE Supervising and Regulating a FAIR ECONOMIC TRADE and optimal FINANCIAL INTERMEDIATION through an EFFICIENT AND EFFECTIVE Integral Risk Management?
 
The First Woman Nobel Economics Prize went:
richard branson
 
To what extension can MANAGERIAL ANTHROPOLOGY become a proper Science to contribute to permanent training of a TRANSFORMING and TRUE LEADERSHIP with MORAL AND TECHNICAL APTITUDE, both in the public and private sector as in the COMMUNAL and Cooperative Company with the STATE duly LEGALIZED, LEGITIMIZED AND CONFIDENT to meet an effective and efficient Role in Regulating and Supervising Economy and economic trade?

The Answers will be found immanent and transcendent on an insightful essay on Managerial Anthropology named: FROM MANAGER TO LEADER: HOW TO JOIN THIS VALUE CHAIN? Finis Coronat Opus: “The end crowns the work”.