No one really likes the idea of a CEO president anyway

TNR’s Clay Risen had a good piece today exploring the notion of the CEO political leader. In Bush’s case, the president was supposed to use his MBA, a first in presidential history, to run the nation like a business and be the CEO President. Except, as we now know, that never worked out for Bush, in part because he embodies the qualities of an abysmally bad chief executive.

Risen, however, suggests Bush didn’t necessarily fail because he’s a bad CEO; the strategy failed because people don’t really want like CEO-like leadership in politics.

[T]he sentiment among Bush’s fiscally conscious critics seems to be that if he had only applied his Harvard Business School training a little better — if he had built a strong team, balanced the budget sheet, and marketed his plans and achievements — he would now be surfing a crest of popularity into the fall elections.

Except, as Risen argues, that’s completely wrong. Risen cites the example of Bush’s former OMB director, Mitch Daniels, who was elected governor of Indiana and became the CEO leader Bush promised to be. He cut spending, outsourced state jobs, ended collective bargaining for government employees, and remade state government “in the corporate image.” Voters hated it — and Daniels’ approval ratings have tanked.

Running government “like a business” sounds nice. It conjures images of efficiency, customer service, and profit. There’s even some notion of accountability through shareholders and a board of directors. But applied to government, something gets lost in the translation.

[W]hile most voters like the sound of “running government like a business,” they blanch at its implications: weakened collective bargaining, massive outsourcing of government services, deep cuts in state jobs. Business’s bottom line is the bottom line; government’s bottom line is the health and welfare of its citizens.

It’s a good point.

No business can survive when you tell your biggest customers that they don’t have to pay for their goods and services. If BushReich wants to run the country like a business—then why all the tax-breaks for the wealthy? That’s no different than WalMart telling its customers—“You can have our stuff for free; we’ll figure out a way for the folks over at Sears Roebuck to pay for it….”

  • Most inexperienced MBA’s start off as lowperson on the totem pole if they can get jobs at all. Bush was never a CEO. His daddy’s friends gave him everything he ever got in business. He was a failure in business and not in a good way.
    You can’t run a country with a grade B knowledge of some business case histories. You can be sure they never study a Bush business as a model in B-School.

  • i can’t recall the precise quote, but the impeccably republican, conservative economist herb stein (ben’s father) said something similar long ago: he is perfectly willing to pay a price for government inefficiency in return for government addressing the needs of all of the citizenry.

  • Actually he is running the government very much like some of the businesses that are out there today.

    His board of directors (the Supreme Court) is being packed with cronies, who will soon be unable to conduct any checks and balances on power (save for Hamdan, which is the very reason they are trying to fill the court with Scalitos, etc-which will be appealed long enough to get another conservative on court), effectively rubberstamping all sorts of illegal policies.

    Loyalty remains priority one and anyone who disagrees with policy will be muzzled or pushed aside, only to complain for years in a wilderness on the outside, only being listened to when it is far too late.

    The revolving door congress and lobbying industry are the executive team – the slice of the population who is rapidly becoming super wealthy. They, like the leaders of corporate America, rake in the bucks, while wages for most workers stagnate.

    Mid to high level schemers are cooking up all sorts of schemes to defraud people and pare back their rights (Medicare part D recipients, Addington and friends tearing up the constitution in the name of helping us) in the same way energy companies created power shortages and drove up prices, got massive tax breaks by writing their own legislation, etc, while and lied to their staff (the populus) about the stability of the organization and how above board everything is (because we say so).

    So it looks to me that our President IS running a very MBA like government – only problem is that the company it resembles most is Enron.

  • Bush is not a classic CEO. He consistently failed upwards due to his connections. If that is how CEOs succeed in today’s business world, God help America.

  • Goddamnit, if only Gore had countered Bush’s “Ah’m a CEO! Ah’ll run the country like a business!” argument by reminding people explicitly how CEOs in the last thirty years have been making their reputations: by laying off workers and sending jobs overseas, slashing health and pensions for the little guy *and* the medium guy, granting themselves ever-larger slices of corporate profits, breaking the law to do what they want because it makes money for them and their pals, and bribing politicians to turn a blind eye to their financial chicanery.

    Congratulations, America. You wanted* a CEO? You got a CEO. Why the hell are you so surprised at what’s happened since?

  • They’re just extending the prudential principle of ‘maximizing shareholder value’ to campaign contributors….

  • The only people that I can find who like Mitch are the same people who rabidly support Bush (literally…they guy that was lecturing me at the July 4th picnic had little bits of foam in the corners of his mouth as he condemned me as a ‘fruitbat’…my ‘moonbat’ correction was completely lost on him).

    Sorry ‘Bagger, but I gotta drag out the soapbox on this MBA thing:

    MBA management is predicated on the notion that it is not necessary to know the product or business to run a company. That’s complete bullshit. Executives in this country are rewarded for buying competing companies, dismantling them (usually causing loss of jobs), keeping the little bits that have value and discarding the parts (and people) that are “non-productive”. I’m in academia…no one is going to buy out IU, but I can’t tell you how many of my friends in the private sector have lost jobs because they’re rif’d following an acquisition by some mega corp.

    Every time one of the telco’s buys another of the telco’s, or a cable company acquires an ISP, it’s hailed American Business in action. Crap. The American way of live is based on productivity and innovation, not swallowing competitors whole.
    What the rail barons of the 19th century did to the Native Americans and their exploitation of the Chinese is not in the least bit laudable, but at least they were building something tangible. When SBC ‘merged’ with AT&T, it was nothing more than a prime example of a corporate shark growing up and eating it’s own mother.

    There.
    I feel better now.

  • That’s no different than WalMart telling its customers—”You can have our stuff for free; we’ll figure out a way for the folks over at Sears Roebuck to pay for it….” – Steve

    I think it’s more like telling Tiffany’s customers they can have anything they want and WalMart customers will pay for it.

  • To echo a point you made CB as well as by iucaffiend above, “My Man Mitch” Daniels has really, really screwed up Indiana through his “CEO” abilities to run state government.

    Now in our great Hoosier state:

    — An outside consortium of dubvious financing runs the Indiana toll road
    — It takes weeks and possibly months to get your first unemployment check (if you’re laid off or your position is terminated) because of that agency’s “reorganization” to modernize/streamline the process
    — The Bureau of Motor Vehicles is in the process of “upgrading” to new software, which means you can’t renew your Commercial license for at least a month and must be issued a temporary paper permit until then. No word yet if the “upgraded” software means you’ll wait in line three days instead of the customary 1-3 hours
    — And state employees no longer can negotiate through a union as Mitch’s degree states the state will no longer bargain with a union on behalf of said employees

    The sooner we get Mitch the hell out of here and back to whatever third-world company he ran, the better!

  • I can’t help but notice that the quality of my grammer is inversely proportional to my blood pressure.

    I simply must learn to proffread.

  • I was talking about a co-worker about this today. I have worked in the private sector and more recently for a few years in the public sector and have always laughed when republican congressmen and senators talked about running the government like a business. These people don’t know, most have never been in business, not for real at least. Not so they would laugh at Dilbert or at least understand what the strip was even talking about. They only think it is efficient because their rich contributors pains such a rosy picture and because the grass is always greener on the other side. They have no clue that buiness can be stunningly inefficient, political, and wasteful. Heck Enron alone should be the poster child for why the government shouldn’t be run like a business. They just want business to be efficient to provide a counter argument to government which they hate (unless it is earmarks for the constituents and results in money/votes).

  • “MBA management is predicated on the notion that it is not necessary to know the product or business to run a company.”

    Sadly, it’s pathetically true. I think that that is stamped onto their thick skulls as soon as they enter school. Being utter clueless and no experience is a great way to run things which is why MBAs seem to think you can replace experienced folks with technical degrees with average joes off the street and get the same results (and yet they’re shocked when it doesn’t happen.)

    The real problem isn’t the MBA itself, but rather a lot of the folks who take it. I’ve found in my own experiece is that an MBA is like a badge that says the holder of this degree has a lot insecurities, neuroses and/or psychotic traits and should be proven incompetent unless otherwise noted.

  • I’m also a Hoosier suffering under “My Bitch Mitch” – Let’s not forget the time zone change. I’m not opposed to springing forward and falling back, but the decision was made in the name of business to be on EST instead of CST. Have you ever tried getting your kids to bed when the sun is still up at 9:30?

    Education cuts, toll roads, tax burden shifts from the state back to municpalities and counties. Sweet.

  • Clearly, you all are laboring under the impression that one needs knowledge, policy, and execution to run a government. No, you bureaucratic fools. All you need is a slogan: “government should be run like a business.”

    It all falls into place after that, don’t you see?

    Next thing you know, you’ll be asking a person to define exactly what he means when he says “I am pro-business.” No more needs to be said there, either. The slogan is self-evidentally self-evident.

    / sarcasm

    Rhetorical question for rhetorical slingers of “run like a business”: So, you’re saying that government should exist to make a profit?

  • But having the government being run like a business has so many advantages! For example, if I don’t like the “product” that the government is putting out–oh, wait, there doesn’t seem to be much competition in the marketplace. . .

  • iucaffiend — You’ve got my vote for the best rant of the day.

  • Ultimately, capitalism and democracy are incompatible concepts. One is hierarchical, authoritarian, the other is equalizing, consensus-driven. The tension created by these two concepts relative to one another is what has shaped our American history (sometimes in a creative and useful way, but often in a negative or strife-filled way).

    The idea of a “CEO President”, as a result, is balderdash; but so long as wealthy people (who favor capitalism and its rewards) continue to call the shots, both in the media and in the halls of power, there will always be arguments given in its favor.

  • Government is supposed to have a level of cunbersom inefficency. I agree 100% with the goal of government as stated above by The senior Mr. Stein (via howard). The best government is the one that meets the needs of its people. I can’t believe that W’s Harvard Legacy MBA was ever counted among his positive attributes. They do seem to be good at providing ROI to the shareholders. We’ll it is more like an increased dividend where he who has the most shares benefits the most.

    To further the WalMart-Tiffany-Enron example, I see it mostly as Enron where they gave (took) profits and returns to the shareholders and the managers at the expense of actually delivering a product in return. Bush’s government is more like an energy contract with a wholely owned subsidiary while not actually providing electricity to its customers.

    Boy, I hope someone will sieze on this idea and use it to re-rail the neo-con economic BS.

  • Hey doubtful, Your typo was right. Bush is The Deserver and he’s got the silver spoon to prove it.

    In another thread, Brian said, “Needed more folks to act like Atticus Finch not George Wallace. Easier to be Wallace though. ”

    I think those are two good images. And if we compare Bush and Gore, then we need more Ecologists with a world view than CEO’s with a quarterly view.

  • I’m not entirely willing to throw out the notion that someone who’s successful in business can be successful in politics. Michael Bloomberg’s done pretty well in NYC, and in fact I’d be thrilled to see him get a shot at Bush’s current job. That said, Bloomberg got better (and won much higher approval) once he became a bit less high-handed and authoritarian. Salesmanship is a bigger part of the job description for politicians than business executives.

    The point, of course, is that Bush was never successful in business. His pre-politics career, such as it was, was two parts cronyism and one part dishonesty. And his lack of salesmanship skills, at least to those who aren’t already in agreement with him, has been shown by his failure to move public opinion on the war, Social Security reform… pretty much everything, in fact.

  • Historically, running government like a business has been very successful. It takes a charismatic leader and it takes actually running it like a business, not like a frat, where your incompetent good buddies can come to hang out and get free stuff.

    To suggest that the problem with this administration is that it was run like a business…. come on. We all know better.

  • We really need to compare the so called CEO presidency of Boy George II with the predecessor. Remember the Policy Wonk presidency of Clinton/Gore? Remember the first surpluses of your adult lifetime?

    It was the wonkiness of Clinton/Gore that the Republican’ts were running against in 2000. They thought they had a better model. Well, we can see how that turned out, can’t we? Just look at CB’s article on Tucker Carlson’s repudiation of his own ‘solution’ to Al Gore.

  • Even if he was running it like a corporation, what corporation’s shareholders would tolerate running at a consistent loss, with a structure assuring that outgoing revenues are higher than incoming revenues even when the outgoing revenues are at their peak, as they should be now when the economy is (as the CEO is claiming) humming along? Now is when the company should be bringing in more money than it’s spending and using that money to make capital investments and build up a cushion for those times when the incoming revenues aren’t so high.

    So, on any basis, he’s a shite CEO as President. And that’s not bringing up his horrible record as an actual businessman. Well, horrible other than when it involved glad-handing his papa’s buddies and forcing a municipal bond sale through so that local governments could subsidize his investment. We’ve seen he’s real good at that.

  • [T]he sentiment among Bush’s fiscally conscious critics seems to be that if he had only applied his Harvard Business School training a little better…

    does you really think he can remember it?

  • The MBA president is just the latest iteration of a long-running American love affair with successful businessmen. Thorstein Veblen wrote about this faith in the general competence of businessmen with respect to University governance nearly a century ago in The Higher Learning In America: A Memorandum On the Conduct of Universities By Business Men.

    The fact remains, the modern civilized community is reluctant to trust its serious interests to others than men of pecuniary substance, who have proved their fitness for the direction of academic affairs by acquiring, or by otherwise being possessed of, considerable wealth.(2*) It is not simply that experienced businessmen are, on mature reflection, judged to be the safest and most competent trustees of the university’s fiscal interests. The preference appears to be almost wholly impulsive, and a matter of habitual bias. It is due for the greater part to the high esteem currently accorded to men of wealth at large, and especially to wealthy men who have succeeded in business, quite apart from any special capacity shown by such success for the guardianship of any institution of learning. Business success is by common consent, and quite uncritically, taken to be conclusive evidence of wisdom even in matters that have no relation to business affairs. So that it stands as a matter of course that businessmen must be preferred for the guardianship and control of that intellectual enterprise for the pursuit of which the university is established, as well as to take care of the pecuniary welfare of the university corporation. And, full of the same naive faith that business success “answereth all things,” these businessmen into whose hands this trust falls are content to accept the responsibility and confident to exercise full discretion in these matters with which they have no special familiarity. Such is the outcome, to the present date, of the recent and current secularization of the governing boards. The final discretion in the affairs of the seats of learning is entrusted to men who have proved their capacity for work that has nothing in common with the higher learning.(3*)

    This quite simply is an unfortunate part of our cultural heritage which we will have to battle ad infinitum.

  • But Bush is a very successful CEO in the eyes of his base. They all have made a mint with Bush at the helm.

    Everyone here is evaluating Bush using the wrong criteria. If you are in the credit card , oil or defense business, you consider the Bush administration to be a resounding success.

    And those are the people that got him elected in the first place.

  • Next time someone says that they want to run the government like a business, the candidate should provide:
    1. a detailed mission statement
    2. supply metrics for measuring success and failure
    3. list of all constituencies to be served

  • The notion of running government like a business appeals only to the mentally lazy. Most businesses fail miserably. When a business fails, the worst that can happen is personal financial ruin for a relatively small amount of people. When a government closes up shop, people run around in the streets with bloody heads on poles.

  • Re: 33

    Tosser makes a good point. However, it is not so much that most businesses fail, it is that the purpose of incorporation is to limit risk, i.e. it is to limit the risk of the executives in case the business fails. Bush has taken that very much to heart, as he seems to think being president shields him from just about any consequences to his actions. IMO, this is one of the arguments as to why Bush should be impeaced, so that future presidents understand that being president is not like being CEO.

  • Authorities in business and government also need oversight, or doom invariably ensues. There’s a professor at HBS who’s championed this idea and he’s probably not too happy with the President or Congress.

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