Opinion: Advice to Obama From a Turnaround Specialist

(Jan. 27) -- When a new administration confronts turbulent times -- as the Obama administration certainly has -- the reality of the task is often a greater challenge than expected. And history shows that crises are the province of leaders, not managers.

Leaders tend to be controversial individuals who guide anxious people through turbulence to a new place of stability and prosperity. Managers, on the other hand, are more suited to comparatively stable times and eschew dramatic change in favor of incremental progress. Managerial competency and leadership are usually not possessed by the same individual.

The problem is that President Barack Obama is in danger of being seen as neither a good leader nor an effective manager, but instead an inspirational leader who cannot deliver meaningful change. This flows from his campaign rhetoric, which may have created unrealistic expectations and the concern that he is incapable of following his words with deeds.

By electing Obama, citizens rejected the status quo. They said, "Yes, we want change" and "Yes, we demand reform." They expected Obama to weaken the influence of established institutions that were implicated in the economic crisis, injustice in health care and foreign entanglements through military adventurism.

But these institutions weren't inspired to volunteer reform by the force of Obama's rhetoric. They resisted change with determination and have drawn the administration into the mire of the managerial politics that is their strength and Obama's weakness. And as a result, Obama has lost momentum by becoming mired in the political calculation of reasonable men who dampen the fire of change.

Meaningful change is never easy. The notable changes of history were initially incredible but were dogmatically pursued with persistence and ingenuity by leaders criticized by conservative forces as irrational and unreasonable. They persevered because the objective was worthwhile and shared by determined followers.

To reset his administration, Obama must again enthuse the electorate with a vision of a new social contract built on lessons from the turmoil. He must be explicit about the difficulties ahead, and challenge those who oppose change. He must be realistic, declaring that he may not succeed in all things immediately, and emphasize that he will not be deterred or deflected from reaching for the ideal.

To overcome those skeptical of reform, he must reconnect with the energy of those who supported him and who invested their hopes in his presidency. To reassert his credentials as a charismatic leader is difficult but not impossible.

He must declare that he will be measured by the implementation of a few big, bold ideas. Health care, banking reform, dialogue with Iran and finding a secure exit from Afghanistan are his battleground.

Comprehensive reform in these areas cannot be achieved instantaneously. The big bills that are necessary are often bad bills that attempt to codify too much that is poorly specified. So Obama should aim to make modest progress before the midterm elections, not as a set of diluted compromises but as a declaration that these are meaningful initial steps toward the achievement of worthwhile objectives.

By maintaining this momentum, the political reform required to achieve the ambitious agenda he was elected to deliver will emerge.

Obama should say to himself, "Yes, I can, and I shall."
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Anthony Holmes (www.anthonyholmes.org) is an international corporate-turnaround specialist and transitional leadership expert, and author of Managing Through Turbulent Times. He has led the revival of seven companies over 15 years, and his 30-year international business career spans strategic consultancy, investment banking and senior corporate management in a diverse range of industries.