Is serving as U.S. president like being a CEO? Not exactly
For the first time in our nation’s history, we have elected a president whose only experience is running a business.
That might seem like just what Washington needs these days, but business and government perform fundamentally different functions, and they require different types of leadership.
Business is about being nimble, beating the competition, and making money. Success often requires quick decisionmaking. CEOs may seek advice, but ultimately, their decisions are final.
Government is about spending money, often on things the businesses won’t, from moon shots to Medicare. Doing this requires compromise. A president must build consensus, even with those who oppose him. His executive orders can be challenged in court and his vetoes can be overridden.
CEOs focus on quarterly profits, and executives are rewarded with annual bonuses and stock awards. Government must take a longer view, funding programs that can have implications for future generations.
Government exists to ensure everyone has an equal chance to life, liberty and the pursuit of happiness. To do that, it must make rules that create the most opportunity for the most people over the long term.
CEOs, because of their short-term focus, often eschew regulation, even if the rules may enable their businesses to make more money in the long run. In 1934, for example, Wall Street claimed Congress was destroying capitalism by adopting the Securities Exchange Act. Those rules created unprecedented investor confidence and laid the foundation for a stock market that became the greatest source of capital in history. It was one of the most important business regulations adopted, yet it was decried by business leaders at the time.
Even in the most open-minded companies, CEOs mostly are surrounded by people whoagree with them. CEOs may say they want lieutenants whochallenge them, but few lieutenants advance by disagreeing with the boss. Presidents can’t afford the luxury of yes men. They must be told quickly when their policies are failing or things are not going as planned. They must be warned
about the potential dangers and unintended consequences of their actions.
CEOs may keep secrets from shareholders and employees, at least up to a point. Being unpredictable might give them an edge in negotiations.
During the last debate of the campaign, when asked if he would accept the results of the election, President-elect Trump said, “I’ll surprise you.” The comment shows a fundamental lack of understanding about the presidency: he owed us an explanation because he wanted to work for us.
Presidential business is supposed to be conducted in public, and everything a president does, from going to dinner with family to taking a vacation to meeting with foreign leaders is a matter of public record. Initially, Trump has demonstrated he sees responsiveness more as a game than a responsibility.
CEOs often are thinskinned, although it depends on the industry. Airline executives, exposed to frequent criticism, quickly develop rhinoceros hides. But industries like oil and gas, which have less direct public contact, are more likely to have executives who bristle at criticism. Even though he owned a failed airline, Trump has shown he handles criticism more like an energy executive. Like many CEOs, he believes he should be able to control the coverage about him. A president must rise above petty vanity and realize media does not exist to make him look good.
Trump has also said he won’t draw a salary as president. That might appear to be a paean to fiscal prudence, but it’s a thumb of the nose to the American people, a declaration that he does not work for us. He may not need our money, but the power we grant him comes with strings attached.
Trump’s lack of experience in politics doesn’t disqualify him from office. Politics, like janitorial services, requires no experience.
Plenty of business people have successfully transitioned to lower public offices — Mike Bloomberg, Mitt Romney and Jon Huntsman, to name just a few. But they understood that in moving into politics, they had to do things differently. Trump was elected, in part, because of his stalwart refusal to change.
But for him to succeed, he must understand the biggest difference between his old job and his new one: A CEO works; a president serves.