By Jon M. Huntsman The book contains personal stories and lessons of leadership from both his business and personal life that have shaped his principles today. Below is an excerpt from a chapter that tells a story of a personal leadership moment at a time in 2001 when Huntsman Corp. was facing bankruptcy.
Chapter IV (an excerpt): Setting the Example – Risk, Responsibility, Reliability - The Three Rs of Leadership
Leaders can come in different forms and flavors, but core elements rarely vary: talent, integrity, courage, vision, commitment, empathy, humility, and confidence. The greater these attributes, the stronger the leadership.
Many business executives seek only breathtaking compensation and perks. Legions of politicians desire only to remain in office and lead with their own self-interests in mind. There are religious leaders who bathe in reverential treatment. And we all are familiar with celebrities who are addicted to adoring fans. None of that is leadership. Successful leaders maintain their positions through respect earned the old-fashioned way.
On the wall of my office, there hangs a plaque on which are inscribed the words of legendary CBS newscaster Edward R. Murrow: “Difficulty is the one excuse that history never accepts.” I made sure my children understood what that meant. Life is difficult and success even more so, but anything worth doing must be challenging.
Engaging in activities devoid of difficulty, lounging in risk-free zones, is life without great meaning. Children are perceptive. They learn as much from observation as from participation, so parental leaders especially need to practice what they preach.
***
In 2001, our company was on the verge of bankruptcy. Our high-yield bonds were trading at 25 cents on the dollar. Our financial and legal teams had brought in bankruptcy specialists from Los Angeles and New York. In their united opinion, bankruptcy was inevitable.
For me, bankruptcy was not an option. It was our name on the front door. Family character was at stake. Virtually all of the 87 lenders we dealt with at the time believed we would crash. Cash was tight. We were in a recession. Our industry was overproducing. Profit margins were dropping. Exports shrunk. Energy costs were spiraling out of control.
In the middle of that perfect storm, we were hit by a rogue wave, the 9/11 catastrophe.
I reminded myself in the midst of this turmoil how grateful I was that I had been chosen to lead the company at this time because I was convinced I could guide our company through this unprecedented siege. This company would not be seized by corporate lawyers, bankers, and highly paid consultants with all the answers. Not on my watch. Not one of them could truly comprehend my notions of character and integrity.
We initiated cost-cutting programs on all levels and at all geographic locations, negotiated an equity position for bondholders, and refinanced our debt with those 87 lenders. We raised additional capital to help pay down that debt. Piece by piece, we put the complex financial mosaic back together. It would have been much easier to have chosen bankruptcy, but two and a half years later, Huntsman Corp. emerged stronger than ever. Wall Street was amazed.
A crisis creates the opportunity to dip deep into the reservoirs of our very being, to rise to levels of confidence, strength, and resolve that otherwise we didn’t think we possessed. Through adversity, we come face to face with who we really are and what really counts.
***
There is a great “can do” spirit in each of us, ready to be set free. We all have reserves to tap in times of danger. In a crisis, a person’s mind can be brilliant and highly creative. In a crisis, true character is revealed. Leaders are selected to take the extra steps, to display moral courage, to reach above and beyond, and to make it to the end zone. For, at the end of the day, leaders have to score or it doesn’t count.
Note: The book can be pre-ordered by following this link (all royalties go to the Huntsman Cancer Institute): Winners Never Cheat: Even in Difficult Times (New and Expanded Edition).
Posted on
Mon, November 10, 2008
by Ron Beasley
filed under