In business schools today one gets taught that everyone who works hard and is creative and innovative enough will get wealthy or rich. Well, look around and you will easily see that this is not the case. So what makes you a top-earning CEO? You might be surprised to learn that Mao Zedong knew a thing or two about leading big public companies, pardon me, countries. Here is what propelled Mao to fame and fortune: first and foremost one has got to have big ideas. So tell everyone about it and rally the troops behind you. Then start a flurry of activities and put your able aides in charge. Then use the media to praise your efforts so that everyone knows that you are the brain behind this grand-scheme. Slowly your grand-scheme will come apart. But do not panic, you can easily blame your aides for the failure of your great idea. You might even consider moving on to another idea (try a ‘Great Leap Forward’) or another country/company. The bottom line is that many public companies today are led by men who are good in political maneuvering but bad at executing ideas or adding value (sounds familiar, doesn’t it?). Being CEO does not mean that you are the best leader or the one adding the most value. Being CEO is like being member of a global elite club and is the key to riches (think bonuses, share-options and ‘golden parachutes’). As a CEO you are a member of an elite club and the most important rule of this club is: do not question compensation schemes of your fellow board members as they will reward your complacency with an equally generous remuneration package. Be generous to your peers and you will be given money in return as well.
For more about Mao and management visit the Economist website: http://www.economist.com/business/displaystory.cfm?story_id=10311230
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