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J&J Consumer Chief's Failures
are Perfect for CEO Job,
not for Retirement
Colleen Goggins was in
line to succeed Johnson & Johnson's CEO - that is, until she made
some mistakes. Apparently the company only wants failure-free
leaders.
The
recall story
Having joined Johnson
& Johnson in 1981, Goggins was head of the consumer business
since 2001. In the summer of 2009, a series of manufacturing troubles
incited a colossal recall of children's Tylenol, causing hundreds of
millions of dollars in lost sales. Prior to the recalls, Goggins was
considered a contender to replace the current CEO, but the recalls
were deemed to hurt her chances significantly. This summer the House
Committee on Oversight and Government Reform began to investigate.
And just as congressional investigators asked the CEO and Goggins to
testify about the recalls, J&J announced Goggins' decision to
retire. What timing.
The
backstory
Regardless of what the PR
department officially announces or what is printed in black and
white, there is always a backstory - the other four or more
viewpoints of the story to which we are not privy: Goggins' view, the
CEO's view, the board's view, and any third party observer's view. We
can only make assumptions based on our view. So let's do that.
A
coincidental retirement?
The announcement of
Goggins' retirement seems coincidental. It makes us wonder if perhaps
she was a scapegoat - strongly encouraged to retire amidst the fury
in order to assure Congress that the company was addressing its
manufacturing woes. If that's the case, the investigators should
chastise J&J for thinking them fools. Did the company really
think Congress would believe that showing Goggins the door would
solve their manufacturing problems? One person is not single-handedly
responsible for this mess nor the solution.
Did
Goggins give up?
If it really was her
choice to retire, why do so at this critical juncture? After 30 years
of commitment and service to the success of J&J, why leave now?
Why not stick it out and fulfill her commitment to the company's
success? Why not see the other side of the mess? Undoubtedly her
career was not founded on being a victim, but Goggins' most recent
move smacks of resignation.
Did
the CEO grab the easy way out?
Regardless of whether
Goggins was solely responsible or was the leader of the decisions
that resulted in the adversity, she has undeniably gained invaluable
wisdom through this experience - wisdom upon which the company's
future success will depend. J&J needs Goggins' experience and
wisdom to ensure the errors don't happen again.
So why didn't the CEO
fight for Goggins to stick with the company? From our viewpoint, it
appears that he went for the short-term fix rather than herald a
long-term commitment to Goggins and the invaluable experience she
amassed over 30 years at J&J. Essentially, it's just easier to get
rid of her and hope all the pain goes away.
Sending
out a failure-free message
Whether he asked Goggins
to retire, or encouraged her to do so, or even just allowed her to
retire, the CEO has communicated to the rest of the company that
there is no room for mistakes. There is only room for successful
execution. This is a dangerous place from which to lead. It will
result in people delaying decisions, sabotaging execution, and
suffocating their innovation.
Progress only comes with
learnings. But when leaders don't value learnings, people operate out
of fear for their jobs instead of a commitment to progress.
Taking
a lesson from IBM's Tom Watson
Tom Watson, founder of
IBM, was notorious for leveraging the lessons that IBM leaders
learned on his dime.
Legend has it that in the
1960s, a talented junior executive of IBM was responsible for the
loss of $10 million (approximately $70 million in today's dollars)
from engaging IBM in a risky but calamitous venture. When Watson
summoned the anxious executive into his office to discuss the
situation, the young man bemoaned, "I guess you want my
resignation." Watson said, "You can't be serious. We've
just spent $10 million educating you!"
Our
perspective: J&J leaders lack moxie
Here's our perspective.
J&J's leadership lacks moxie. The CEO gave up on Goggins -
perhaps he was pressured by the board or perhaps he was looking for a
quick resolution to a complicated problem. Goggins gave up on J&J
and on herself - perhaps she felt pressure by the CEO or the board,
or perhaps she was tired of fighting. Average leaders are quick to
resign and are quick to allow their people to do the same.
Moxie
leaders
Moxie leaders lead
differently, never resigning the pursuit of their battle cry. They
never surrender opportunities to lead people differently in exchange
for quick fixes and easy solutions. Instead, they foster an
"always-learning" culture, as Tom Watson - the archetypal
moxie leader - did at IBM for four decades. J&J's leadership
could use a few moxie lessons from Watson.
What
do you think?
Share your perspective on
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