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    Dynamic Women in Business 2003 - Dynamic Women in Business Keynote Speakers 2003

     
    2/10/2003
    Maria Bartiromo, an anchor for CNBC, and Betsy D. Holden, Co-CEO for Kraft Foods, Inc., offered their thoughts on corporate America at Harvard Business School's 12th Annual Dynamic Women in Business Conference.

    by Wendy Guild, HBS Working Knowledge

    Maria Bartiromo
    Maria Bartiromo

    Leadership, corporate excellence, and strategies for riding out the economic turmoil were at the heart of keynote talks presented at Harvard Business School by CNBC anchor Maria Bartiromo, and Kraft Foods co-CEO Betsy D. Holden.

    Both spoke to attendees at the 12th Annual Dynamic Women in Business Conference, held January 25th.

    Security and a return to the fundamentals headed Bartiromo's list. Noting the extraordinary changes that have taken place since September 11, she said concerns over personal safety and possible U.S. involvement in various military operations have seeped into people's financial, professional, and economic concerns. Of course, the corporate governance issues over Enron and other high-profile flameouts have only eroded investor confidence further.

    So how can one gauge the strength of a company in this new environment? It's time, Bartiromo said, to separate the noise from the news and find a way to navigate the information bombarding us at every turn. She suggested some new rules for the game.

    1. Watch the fundamentals. It may sound old fashioned, Bartiromo said, but researching a company is vital to understanding its condition. How does the company use earnings and revenue growth? Does it have too much debt? Is it coming frequently to public markets to raise money? "Cash flow does not lie," she said.

    Cash flow does not lie.
    —Maria Bartiromo, CNBC anchor

    2. Scrutinize the management. There has been a lot of talk about corporate governance, Bartiromo said, but "governance is not necessarily leadership. Leadership soars past governance." How can you tell if a company's management is decent? Investigate the decisions they have made. Are they good corporate citizens? How do they treat their employees? She refuses to partake in what she calls "American-business-is corrupt tabloid journalism." Now more than ever, "we need to hear from the decent people," she said. Her advice to future leaders: "One wrong decision can taint a reputation for years to come."

    Betsy D. Holden
    Betsy D. Holden

    3. Trust your instincts. "Instinct is not something you can measure, it's something you feel," Bartiromo said. Reevaluate a company often. "Character and decency should be praised—and will be," but make sure you "can raise your hand and say 'something doesn't look right.'"

    She has not seen evidence for a strong economic rebound in 2003, "but it's cyclical," she said. Businesses will spend again. After all, "at some point companies will have to spend money on technology."

    People leadership
    Kraft's Holden spoke on the critical but poorly defined nature of leadership. Addressing students in the audience she said, "New MBAs can elevate the level of leadership." Among the most important requirements for good business leadership she listed vision, values, strategy, and having a game plan. But as important as good business leadership is to the success of a company, two other forms of leadership—people and societal—are just as vital.

    New MBAs can elevate the level of leadership.
    —Betsy D. Holden, Co-CEO, Kraft Foods, Inc.

    The real reason for any company's success, she said, is its people. Companies must have "the passion and commitment to attract and retain the best people…and maximize their potential and performance," Holden said. "It's a win/win relationship. A company commits to its people and the people will commit to the company." How can one tell if this is being accomplished?

    1. Diversity. A company's diversity program should be long-standing and visible. "Attitudes have to change," Holden said, "from a compliance mentality to simply realizing it's the right thing to do."

    2. Professional development. The best development takes place on the job with the appropriate assignments and training. Identify the highest potential staff from each part of the company. "Manager's reviews should also include how well they develop their staff," she said.

    3. Work life. Some resources to look for are the availability of elder- and childcare references, flextime, and core hours. And check out the individual relationship between managers and employees. Bottom line: There should be one and it should benefit both parties.

    4. Communication. The personal connection between managers and senior leaders should be visible and accessible. Perhaps management hosts employee lunches or breakfasts to share goals. A weekly e-mail to all staff can be very effective as well, said Holden. "I typically get thirty to fifty employee responses each week," she said.

    Societal leadership
    Companies must meet their corporate and social responsibilities, Holden stressed. Not only does good corporate citizenship benefit society, but also consumers base their purchasing decisions on it and potential hires use it to judge a company.

    Societal leadership should be recognized as part of a bigger context, said Holden. It's more than obeying the letter of the law; it's about leading with integrity. The public has expectations of big business; leaders should make a personal commitment to give something back and make the world a better place.

    Finally, companies should foster hands-on involvement in the community. Time off for employees to do volunteer work is a good place to start.

    "The best way to lead is to serve," she said.

    Related stories in HBS Working Knowledge:
    Dynamic Women in Business 2002

    Dynamic Women in Business 2001

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