Lessons on Leadership from Honest Abe

Jordan Summers

For the past few months Doris Kearns Goodwin’s meticulous record of our nation’s 16^th President’s journey from the circuit court in Illinois to the fateful night of April 14^th, 1865, has served as a supplement to my studies at the DeVos Graduate School of Management. As I absorbed Goodwin’s Team of Rivals I have found a number of great lessons which can be broadly applied to the subject of leadership. 

It was reported that in the time leading up to his inauguration President Obama consumed Team of Rivals as he contemplated the construction of his cabinet.  Lincoln’s decision to build a cabinet filled with professional rivals, some of whom came to Washington with their own personal agendas and others still reeling from his shocking nomination and subsequent election which had squelched their own ambition for the Executive Office, is the central theme of the book.  However, it does a great disservice to Goodwin’s extensive work as well as to Lincoln’s life to ignore the many other lessons that can be drawn from the book.

Timing is an often overlooked element of leadership. Lincoln was able to use his ability to read the pulse of an entire nation to allow him to optimally time some of his most important actions.  Nowhere is this more evident that in his timing of the Emancipation Proclamation.  In Goodwin’s account, it is clear that if Lincoln had given into the pressures of abolitionists and members of his cabinet, and made his intention to emancipate slaves too early on in the war, public support for the war efforts would have waned.  However, if Lincoln had waited too long, the boost in support provided by the proclamation, as well as the ability to recruit black soldiers, would not have come soon enough to turn the tide in the war.  The issue of timing is particularly important in the context of the present-day; as leaders face the challenge of maintaining functioning organizations, communities etc., in the face of necessary layoffs, budget cuts, etc.

While the economic and societal challenges that leaders face today are significant, many of these challenges seem much more manageable in comparison to the life and times of Abe Lincoln.  From an early age Lincoln became accustomed to struggle and pain.  By the age of seven Lincoln had already experienced tumult as his family became impoverished, and at the age of nine Lincoln became accustomed to tragedy with the death of his young mother.  Young Lincoln dealt with these challenges with a humor and resolve that would prove vital to his existence further in his career.  Through failed political campaigns and professional pursuits Lincoln maintained his steady and relentless pursuit of his goals.  For example, in 1855 Lincoln was hired by a prominent attorney from Pittsburgh to help represent the defendant in a patent case which had generated national attention.  Hired for his low hourly rate and his connections in the Illinois’ legal community Lincoln saw the case as a tremendous opportunity for career advancement.  However, when the case was moved to Cincinnati, Lincoln was frozen out of the case after months of extensive work by the lead attorney Edwin Stanton.  After experiencing an understandable level of disappointment, the Reaper Trial served to further solidify Lincoln’s resolve to achieve professional growth.  As a testament to Lincoln’s ability to put aside personal gripes, Stanton would later become Lincoln’s Secretary of War, and one of his most trusted companions.

The most gripping example of Lincoln’s toughness and resolve came in the midst of the Civil War, when his young son died.  While his wife was stricken with uncontrollable grief, Lincoln was forced to reserve his grief for the few private moments he had.  Beyond the loss of his son, Lincoln was faced with the overwhelming challenge of overseeing the bloodiest war in our nation’s history.  Through it all he was able to look beyond his earthly suffering as he led the nation through its most trying times.

After reading Team of Rivals I would ultimately say that what I see as the single most important element of Lincoln’s leadership is his commitment to the anti-slavery cause.  For what truly drives an effective leader is purpose.  As Goodwin states in regards to Lincoln’s commitment to the anti-slavery movement – “Once he committed himself… (Lincoln) demonstrated a singular tenacity and authenticity of feeling.  Ambition and conviction (were) united…”  Lincoln set his mind on an objective and used his God-given gifts which were honed through the fires of life to change the course of our nation’s history.

A Kennedy/Reagan Style Stimulus

A Kennedy/Reagan Style Stimulus Package
By Dr. Timothy G. Nash and Dr. Keith A. Pretty

Earlier this year the Obama administration pushed through Congress its $787 billion stimulus package amid dire predictions for the US economy. The package was designed to get America working and keep unemployment below 8.5 percent. Now, with unemployment at 9.5 percent and predicted to go higher, Vice President Biden has seemingly opened the door for another round of government spending, stating he believed the White House underestimated the severity of “the worst economy since the Great Depression.” Yet President Obama’s own Labor Secretary, Hilda Solis, said recently that much of the stimulus money was moving slowly, especially construction projects. The glacial pace of approval has led to only 10% of the stimulus package being spent to date. At this rate, it will be three years before the entire package makes its way into the economy. Meanwhile more than 3.4 million jobs were lost to the U.S. economy so far this year. U.S. Congressman Eric Cantor (R-VA.), stated that the purpose of the Obama administration stimulus package was to preserve, protect and create jobs and “it has failed miserably.” Considering the above, why has the president’s stimulus package had less than intended results?

The Problem
The problem is not, as Mr. Biden would have us believe, that the government didn’t spend enough, or that government bureaucracy is slowing the pace of stimulus spending, which it is. Instead, failure rests with a package that didn’t cut taxes enough or in all the right places. People have little confidence in government spending as a catalyst for economic growth and long term prosperity. They know that business creates jobs, and that the government largely creates taxes and regulations, and spends. The U.S. economy is burdened by onerous regulations, the third highest corporate income tax rate (39.27%) in the world, and a personal income tax rate that can reach 35 percent.
Despite all the money coming in, the U.S. national debt is now $11.2 trillion dollars, or 78 percent of U.S. GDP, and will likely be above 100 percent of GDP by the end of next fiscal year, surpassing the 1949 level of 97.5 percent which included costs associated with World War II and post war reconstruction. Many key U.S. competitors have much lower national debt-to-GDP ratios with China at 21 percent and Russia at 10 percent. By comparison, the next stimulus package this economy needs is not more of the same but a massive incentive-based tax cut to allow the U.S. to be competitive globally—currently we are not! The Russian economy has out-performed the U.S. over the last 5 years with a smaller national debt-to-GDP ratio, often friendlier regulations, a corporate income tax rate of 24 percent, and an average personal income tax rate of 13 percent. The U.S. has higher corporate and personal income tax rates than Canada and Mexico, as well as much of the industrialized world. The accounting firm KPMG reported that the global average corporate income tax rate for all countries in 2008 was 25.9 percent with the EU average at 23.2 percent, the Latin American average at 26.6 percent, the Asia-Pacific average at 28.4 percent and the OECD average at 26.7 percent.

The Solution
It seems that the presidencies of John F. Kennedy and Ronald W. Reagan serve as strong cases for the effectiveness of tax cuts in stimulating economic growth during difficult times. Recall what President Kennedy said about his own tax-cut based stimulus package in 1962: “In short, to increase demand and lift the economy, the federal government’s most useful role is not to rush into a program of excessive increases in public expenditures, but to expand the incentives and opportunities for private expenditures.” President Kennedy’s tax cut was implemented after his death by President Johnson in 1964, with personal income tax rates declining 23.1 percent for the top income earners and 30 percent for the lowest. Corporate income tax rates were reduced by 9.6 percent the same year. The economy responded with an average annual real growth rate of 4.65 percent in U.S. GDP from 1963 to 1968, and unemployment dropped from 6.6 percent in 1961 to 3.7 percent in 1968. President Reagan’s across-the-board tax cut of 25 percent was phased in from 1981-1983 and helped bring the U.S. economy out of the severe economic recession of 1981-82 which saw the prime interest rate peak at 21.5 percent in 1981 (the highest since the Civil War), real GDP decline by 2.2 percent in 1982, and unemployment reach 10.8 percent also in 1982. The economy responded with an average annual real GDP growth rate of 3.87 percent from 1982 – 88, unemployment declined to 5.4 percent by 1988, and real tax revenue grew by 25.5 percent from 1983 to 1988. Finally, it should be recalled that average government spending exceeded average tax revenue growth by 4.22 percent for most of the 1980’s, thus creating the budget deficits of the Reagan years and hopefully providing a lesson for today’s policymakers?

Dr. Keith A. Pretty is president and CEO of Northwood University in Midland, Michigan.

Dr. Timothy G. Nash is vice president for Strategic and Corporate Alliances and holds the David E. Fry Chair in Free Market Economics at Northwood University.

Softball Tonight

Luke Krombach

We are well on our way into the second half of the softball season, and on cue the drama ratchets up with the impending district tournament. With two completed games since our last Softball Tonight article we have a lot of highlights…and lowlights to cover. 

Game 1 had The DeVos softball team striving to improve their record to one game above .500 but fell short in the waning moments. Tempers flared as the team faced an insurmountable deficit at the hands of errors and poor play. Although no players completely lost their wits there was a brief scuffle in the dugout between level headed Canadian, Keilan McInnis, and the teams pretty boy Chad Dixon. The two quickly kissed and made up – but the damage was already done.  The team fell to a record of 5-4.

Game 2 ended with a much more favorable result- A Win.  Devos topped BRI-CAR by way of Chad Dixon’s impressive inside the park grand slam; after an embarrassing swinging strikeout.  Chad Dixon went from feeling the lowest of the low to being on top of the world.  He struck out swinging, and replaced Muaz as the team’s walking punch line, and sent the entire team into a laughing fit.  But Chad Dixon gained revenge quickly.  He sent the ball towering out to left center field and cleared the bases; creating the rare and impressive grand slam.  The team is now sitting at an impressive 5-5.  To keep you satiated until the next game here are some fast facts from the fortnight that was. 

Fast Facts

• Jeff Nowaczyk has 5 inside the park homeruns for the season and the 1^st grand slam
• Chad Dixon was the 2^nd player to hit a grand slam.
• Ryan Puchel’s 1^st hit past the pitcher’s mound was in the 10^th game of the season. His batting and on-base percentages have been stellar – even though he has no discernable muscle definition. 
• Antoine Carr received his 1^st start coming off the DL – just don’t tell Northwood’s Coach Sullivan.
• Pat Swanton has been one of team’s most consistent players, as trade rumors grew to distraction level.  His yearning to play for his hometown softball team, The Beaverton Skoals, has become an issue for team leader Jeff Nowaczyck.
• Super-sub, and British transplant, Steve Everett has been fined by the league for his uniform violation.  His preponderance for insanely tight shorts has cost him a week’s pay. 
• Wily veteran pitcher Jordan Summers impressed future MLB scout Jeff Nowaczyk with a Randy Johnson-esque 7 strikeouts. 
• The team also lost a key role player in Justin Pasdach. How he injured himself in a softball game is unknown; but the trainer thinks it’s due to off the field antics.
• Mike Budziakowski the highly hyped Canadian sensation has recently experienced a quiet period with his bat. He has handled all the pressure of his early season success as well as Michael Jackson handled sleeping pills.

A Brit’s exposure to Independence Day

Steven Everett

As the historic 4th of July passes for another year, Northwood University postgraduate student Steven Everett reflects on his stereotypical American experience.      

English-born Everett was aware of the camaraderie and patriotism shown from the American citizens, but was somewhat unsure of the experience he was going to gain himself.

The student decided to test his reactions and fully utilize his experience by enduring a camping trip in Omer, Michigan with five native Michiganders and one Illinoisaniaiaian.

As Everett began to take the trip up north through the country roads, reality and anxiety began to sink in: he was British, in the woods with patriotic Americas, and it was the 4th of July.  He began to pray to Gordon Brown while images of David Beckham danced in his head. 

Everett was quoted: “I am looking forward to seeing what you Yanks have to offer, but at the same time, as a British citizen, I am concerned of the awkwardness of celebrating a historical event which a patriotic English born citizen would perceive as unfavorable.”

Everett added: “Why would I celebrate an event in which the Americans declared independence from us?”

Everett further added: “It may turn out fine, the day in history occurred over 200 years ago.”

After Everett commented and questioned his commitment to his Independence Day experiences, he managed to push the uncertainties to the back of his mind and concentrate on the weekends’ happenings.

As the graduate gang arrived at their destination, Everett’s inexperience prevailed as the Americans took full control of campsite “setting up” procedures.

Everett seemed confused and somewhat useless to help with these procedures; however, he seemed to break the ice with the utilization of his initiative.  The Englishman helped his colleagues by repeatedly collecting wood for the fire to combat the cold nights.  He also regaled them with wonderful tales of his adventures at Hogwarts. 

Everett’s expressions showed he was settling in to his new environment—more so when the first beer was cracked open – something he was much more accustomed to.

As Independence Day eve was coming to a close, night fell with a strong, cool air. Everett became more concerned with his sleeping conditions instead of his original fear—waking up tied to a tree while jubilant Americans fired bottle rockets at his gaunt British frame. 

He was quoted: “It is going to be bloody freezing in that tent”.

As the morning sun rose, Everett was woken by his friend’s excitement for the Independence Day activity, in the form of canoeing.  Ah, is there anything more American than floating down a shallow river, in a rented canoe, while drinking cheap beer, and singing Bon Jovi hits?  No!

Independence Day did, however, present some points of contention between the campers.

Everett was quoted: “I am sorry but I cannot say Happy Independence Day to you; it is just not the right gesture.”

He added: “I feel as though I have an overhaul of demons above my head cursing my interaction with American celebrations.” 

While Steve sat in fear that his U.K. citizenship was being rescinded, the rest of the team prepared for the day’s activity.

During the canoe trip, Steven seemed to be extremely enthusiastic as to what wildlife he would see on his travels and how fast he and his partner could canoe back down the river towards their destination.

He was quoted on numerous occasions: “We need to see a turtle; we do not get any type of turtles in the wild of England, other than Camilla Parker Boyle.”  That’s a hilarious British joke for all my internationally educated readers. 

These distractions forced Everett to forget the fact he was celebrating Independence Day.

Everett and his Illinoisan partner were experiencing life in a canoe for the first time; this was evident in the early stages with their confusion of direction.  However after their ‘country’ colleagues were relaxing and soaking up the atmosphere, both Everett and his canoe partner decided enough was enough, and off they went.

Everett recalls: “We experienced the relaxing style and the full throttle workout that went with canoeing. What a day.”

As Everett and his Illinoisan colleague returned back to camp, the two decided to get to work and cut up some wood for the night’s fire.

With three hours passing the final pair returned to camp, looking exhausted and hungry. It was not too long before the food was cooking and the group was reflecting on the day’s activity.

It was at this stage, that Everett realized something that he never thought would come to fruition. 

He was quoted: “I have had a great couple of days and encountered experiences with people in a setting which I may never get the opportunity to do again. Why should I feel guilty—although it does feel kind of weird? I should reverse the situation and consider how good the Americans have been to me in accepting my nationality and involving me in their celebrations. My persona has totally changed.” 

After Everett participated in a firework celebration with the rest of his American colleagues, the English-born citizen felt accomplished.  He proceeded to extol the virtues of the beautiful American culture while break dancing in the flickering fire-lit camp site.

Everett woke up the following morning, exerting the same excitement and pleasure that the Americans did in the wake of Independence Day. 

As the group of individuals listened to country music and drove down country roads, Everett revealed how his Michigan Independence Day experience allowed him to feel accepted in an environment that had the potential to make an English man feel very uncomfortable.  He may never appreciate Michigan staples like Kid Rock or the Red Wings, but his Independence Day 2009 experience will always have a special place in his heart.

EcoBoost to Boost Sales

Andrew Augustine

With recent increases in fuel prices and all the pressure to “go green”, it’s really no surprise that automotive manufacturers are trying to downscale vehicle size and utilize smaller engine configurations.  Ford Motor Company has devised a strategy to avoid many of these traditional methods while still delivering what the customer wants.  They have combined two technologies, turbo-charging and direct injection, which allows them to increase fuel efficiency (without decreasing vehicle size) while increasing horsepower at the same time.  Ford’s new technology comes in the form of the all-new EcoBoost engine.  It is the first North American production, twin-turbocharged, direct injection, V-6 engine—impressive, I know.   “The beauty of EcoBoost is that it enables us to downsize for fuel efficiency, yet boost for power,” claims Derrick Kuzak, Ford’s group vice president of Global Product Development.  The engine also produces fewer emissions as compared to a V-8 engine.

 The first in a wave of new Ford EcoBoost engines makes its debut in the Lincoln MKS, and MKT, as well as the Ford Flex and all new Taurus SHO next month.  The launch of the EcoBoost engine is part of Ford Motor Company’s global initiative to provide powertrains that deliver the fuel efficiency and power customers demand.  This engine technology is expected to migrate into many of Ford’s mainstream vehicle lines.

Wow- Impressive

The twin-turbocharged 3.5-liter V-6 EcoBoost engine delivers the performance found in a naturally aspirated performance built V-8, while maintaining the fuel economy of a V-6 engine.  “By injecting the fuel directly into the combustion chamber and under high pressure, the fuel is sent exactly where we want it to be for a given combustion cycle, which aids burning of fuel more efficiently  and effectively” said Joseph Basmaji, direct injection fuel system technical specialist.  In addition to increased fuel efficiency through direct injection, the turbos use wasted energy from the exhaust gas to help drive the turbines.   Improved transient response enabled by the direct injectors reduces “turbo lag,” while overcoming the traditional disadvantage of downsizing and boosting.  With help from the dual turbo configuration, this efficient, fire-breathing V-6 is able to reach an impressive 365 horsepower and nearly 350 foot pounds of torque. 

EcoBoost equipped vehicles should be surfacing in the next few weeks with an average of 20% better fuel economy over traditional vehicles.  The V-6 engine and six-speed SelectShift automatic transmission combination achieves an EPA-estimated 17 city/25 highway fuel economy rating.  Ford expects within the next five years, a half-million vehicles will be on the road sporting the groundbreaking technology.  Ford also plans on developing four-cylinder configurations of the engine that will likely be used in the popular Focus and Fusion models.

For the complete story of the 2010 Ford Taurus SHO and this revolutionary engine technology can be accessed on the Internet at www. Fordvehicles.com/cars/Taurus/.

The Great Health Care Debate

Muaz Halees

We now have pretty good epidemiological evidence that the long-term health consequences of living under our deficient healthcare system are considerable.  There is something inherently American about catering to the “best” while giving much less attention to the average.  We excel at advancing the “best” but fail at moving the average from the middle closer to the front of the line.  The US healthcare system is a definitive “best” strategy.  This economic model of our healthcare system is demoralizing and divisive for what? To benefit the few.  Universal healthcare is the answer because privatized healthcare is obviously not.    

Nationalized healthcare would create a national database alleviating many of the wasteful inefficiencies doctors face during treatment and diagnosis.  Doctors would be able to avoid the insurance premiums, malpractice and liability insurance, insurance submissions, claims approval, and focus on their job—tending to the sick.  Doctors and patients could work hand-in-hand practicing preventative measures.  Patients avoid routine check-ups now because of the lack of coverage, and they pay with their lives later on and we pay as a society for our ignorance.

Many opponents of universal healthcare cite the massive price tag associated with providing it to the masses.  They claim that the only way it could work is through severe taxation or through compulsory coverage premiums. I am of the opinion that a small bump in my taxes is worth improving the lives of my fellow citizens, but I may be in the minority.  Let’s pacify these bottom-liners for a moment.  The Canadian system, which provides universal healthcare, spends 10.5% of its GDP on healthcare.  Juxtapose that with the whopping 16% the US spends on their embarrassing system.  Not to toot the Canadian horn too loudly, but their healthcare system actually outperforms the US system in the two most commonly used quality metrics, life expectancy and infant mortality rates.   

There is also a fear that US citizens may be forced to look elsewhere for medical assistance, à la the Canadians that come to the US for some of their healthcare needs. My counter to that? So what.  Americans are doing that today, as we speak; insured Americans are going to India and South America to get cheaper healthcare.  That option will always be there, and will always be used.  If that criterion is used to degrade universal healthcare, then it must be referenced when highlighting the failures of the current system. 

The next argument volleyed by opponents of universal healthcare is the inefficiencies of the government.  They claim that healthcare system would become the DMV.  But why couldn’t it be as successful and efficient as the US military, or the US-run anti-discrimination agenda, or the CDC.  These same opponents of the US government attack it while living in the safe confines that same inefficient US government provides to them.    

Public enterprise has merits, but the government has a responsibility to ensure the well-being and security of its citizens, not to ensure public enterprise.  The failed healthcare system in this country is our scarlet letter.  Our allegiance to it is deteriorating our sense of social solidarity and our efforts to address the needs and problems of the population as a whole.  We are failing the 50 million uninsured as well as the 100 million underinsured Americans. Universal healthcare is not some utopian edict that will improve the lives of every single citizen.  It is not a strategy for becoming the best; it is a strategy for becoming better. Potential imperfections should not cause us to lose sight of substantial improvements.

Softball Tonight

Luke Krombach

The Richard DeVos Graduate School of Management is sponsoring a team in the Midland Softball Associations men’s slow pitch Central Division. The early predictions for the team were optimistic. Team manager Jeff Nowaczyk stated that, “because of the number of players that had played collegiate sports, I thought we could make an easy transition to softball and therefore have a fighting chance. However, the lack of general softball knowledge proved me wrong.” Facing stiff competition from some of Midland’s finest, the team fell short of Nowaczyk’s original predictions. 

The team posted a 0 – 4 record with one of the losses coming by way of the “slaughter” rule. The bats of the mighty DeVos hitters seemed to be silent until the 5^th game when a whopping steroids era-esque16 runs were scored.

Help came from an unlikely source in the form of a Canadian hockey player with little conceivable athletic talent. Mike Budziakowski has gone the Rudy route from gaunt punch line to indefatigable team leader.  He has posted the highest batting average on the team and has received the game MVP twice. Fascinating diving catches and overall good play have encouraged the other players to follow suit. Even with the atrocious start to the season, the guts and will of the team has shown through and spurred them to scrape and claw their way to a record three straight wins.

On June 18th, the team showed its newfound confidence by winning both games of a double header. The only negative points of the game were Muaz’s embarrassing strikeout and allegations of Mike Budziakowski’s use of performance enhancers.  (Alas, not everyone can glean as much energy from two whole pizzas like Mike can.) Additionally, Jordan Summers nearly pitched two shut-out games, falling short in the second with a few base hits that scored one run in the top of the fourth inning. Besides the minor awkward strikeout, the general play of the team was positive and praiseworthy. Although this is only my first article, I feel our paths are now intertwined and forever connected. I look forward to interacting and entertaining you in the future and in the many more issues of Softball Tonight.