Weekly Business Insights from Top Ten Business Magazines | Week 316 | Personal Development, Leading & Managing Section | 1

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Executives Can Learn From Ouster Of House Speaker Kevin McCarthy

By Edward Segal | Forbes Magazine | October 4, 2023

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The unprecedented ouster Tuesday of House Speaker Kevin McCarthy—and the turmoil it created— provides several crisis-related lessons for business leaders.

Consequences Of Unethical Behavior.  The turmoil in the House of Representatives should remind leaders of what can happen when people behaving unethically are allowed to continue in their roles without sanction.  There is always the potential for their behavior to have spillover effects and disrupt the focus of an organization.

Impact Of Broken Relationships.  When we think of a senior executive being ousted from a corporation, often a scandal—such as misconduct —comes to mind.  However, much like in former Speaker Kevin McCarthy’s case, the reason can be attributed to broken relationships and weak performance in the leadership role.  

Time To Think Outside The Box?  The Speaker does not have to be a member of Congress. The House could consider appointing an outsider with appropriate leadership and crisis management experience to be its next leader.  In the business world, there are a number of current and former CEOs who might be a good fit for this critical and demanding role.

Expect The Unexpected.  The McCarthy situations “highlight the unpredictability of leadership roles when faced with unforeseen challenges and the importance of maintaining stakeholders’ trust.  Like his counterparts in the corporate world, members of Congress did not expect the events to unfold the way they did in the House chamber yesterday.  This is another lesson business executives can learn from the unfolding chaos in the House.  No matter how remote a worst-case scenario may seem today, it can become a nightmare reality tomorrow.  Plan accordingly.

2 key takeaways from the article

1. The unprecedented ouster Tuesday of House Speaker Kevin McCarthy—and the turmoil it created— provides several crisis-related lessons for business leaders.
2. These lessons are: 1) The turmoil in the House of Representatives should remind leaders of what can happen when people behaving unethically are allowed to continue in their roles without sanction.  2) the reason of outster can be attributed to broken relationships and weak performance in the leadership role.  3) Such crises should push the organizations to think outside the box for solutions.  4)  No matter how remote a worst-case scenario may seem today, it can become a nightmare reality tomorrow.  So, plan accordingly.

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Topics:  Leadership, Crisis, Decision-making