Obama and Bear Stearns' Schwartz: A Tale of Two Speakers
During the worst of all possible weeks for Bear Stearns, CEO Alan Schwartz had the worst of all possible times. Because he presided over one of the most sudden and humiliating meltdowns in American corporate history, his personal performance under pressure came under special scrutiny. Above all there was the question of whether there was anything he could have done to forestall the demise of Bear Stearns, which only recently was viewed as being as valuable as it was venerable.
The Wall Street Journal, for example, asked a panel of experts to appraise Schwartz’s appearance on CNBC at a key moment just before the walls came tumbling down. Their reviews were not kind. Schwartz obviously thought he was doing the right thing by telling his viewing audience that Bear Stearns did not "see any pressure on our liquidity, let alone a liquidity crisis." But the experts said he needed to do much more. One said Schwartz needed to provide some specifics, perhaps ticking off the names of some of Bear Stearns’s largest customers, or being precise about the amount of cash the company currently had on hand. Another said Schwartz should have used his time on the air to explain how leaders at Bear Stearns had weathered financial crises in the past. And still others pointed to Schwartz’s delivery, which was so flawed as to make them "wince." Schwartz gazed upward before speaking and he pinched his lips tightly -- evoking "grimaces" which made him look, at the least, uncomfortable.
Just a few days later, another leader in trouble -- this one because of his close association with an intermittently inflammatory pastor -- made a similar decision. Barack Obama decided to appear on television to explain if not to justify the anger of his minister and adopted "uncle," the Rev. Jeremiah A. Wright, Jr. Obama, of course, delivered a formal speech that was carefully crafted. But like Schwartz his intention was to speak to the matter at hand, and at a particular moment and in a particular way, in order to tamp down a problem and move from the difficult present to a better future.
As soon as the words were out of his mouth, Obama’s speech was described as historic. Not since Presidents Lyndon Johnson, John Kennedy and Abraham Lincoln, it was said, had any politician addressed the subject of race so frankly, so brilliantly. Grown men were moved to tears (Julian Bond, for example), and for days thereafter airwaves clear across America were jammed with the voices of those, black and white, eager to pick up where Obama had left off. This is not to say the Democratic candidate for president got everything he wanted. Naysayers complained that Obama never did explain exactly why he stayed so close to Wright, the flamethrower. Moreover Obama himself does not consider it in his interest to have a conversation more race-based than anything else.
Withal, we live in an age in which rhetoric is the primary means of personal assertion. Leaders who are near incapable of speaking well -- such as George W. Bush -- become grist for the comics' mill. And leaders who fail to use the power of speech to their own advantage -- such as Alan Schwartz -- miss the moment. Conversely, those leaders who set the debate by speaking wisely prevail. In the case of Barack Obama, whatever the short-term shortfalls, and whatever his long-term fortunes, the words he spoke this week in Philadelphia will be long remembered. And he, in turn, will be long remembered for having uttered them.
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Barbara Kellerman is the James MacGregor Burns Lecturer in Public Leadership at Harvard University's John F. Kennedy School of Government. She was the Founding Executive Director of the Kennedy School’s Center for Public Leadership, from 2000 to 2003; and from 2003 to 2006 she served as the Center’s Research Director. She is author and editor of many books and articles on leadership. She is the author of 
Comments
I couldn't agree with you more. There is such a hunger in this country and world to be more than motivated (i.e. pumped up) and even more than inspired (i.e. to be lifted up). The world needs to be enspired (i.e. lifted up above the fray and given a purpose and direction. Obama's "More Perfect Nation" did that. Another great example that has stood the test of time and the test of generations is Peter Pan when he enspired Wendy to go to Neverland with: "Second star to the left and straight on 'til morning." Thank you Barbara.
- Posted by Mark Goulston
March 21, 2008 12:41 PM
The performer in most cases is judged by the results. If Bear Sterns had survived, Schwartz would have been looked at more positively.
- Posted by Abbi Shetty
March 21, 2008 3:34 PM
I am taken aback by the response to Obama's speech. I'm a US voter resident in New Zealand, and we have CNN, Fox, and the BBC on cable, so I'm following the campaigns more or less daily. I saw Obama's speech, referenced in the lead blog post here, and thought it was a well-written (by speech-writers I assume), polished, well-delivered run-of-the-mill cover-my-ass for past thoughtless indiscretions speech. Then I find the news media, and of course limousine liberals, calling it equivalent to the Gettysburg Address. Yeah, right. We can trust the judgment of the liberal media, and the liberals. (A related aside: Let’s see if Pelosi’s thoughtless liberal-babble can goad the Chinese Communist Party into really cracking down to cut off any actions based upon hope and encouragement from her empty words (How many battalions does the Speaker of the House have?).)
Race and gender are not issues in my choice of a candidate to support and vote for. Age is, e.g. Obama's immature thoughtlessness and failure to think things through as to the effects of associating himself with a crazed, Black, hate monger. Perhaps we get more of Obama’s wife overseas than in U.S. liberal slanted media, but Obama’s wife and his pastor introduced Race into the campaign with anti-White racial pronouncements. I haven’t seen any harping on Race from many (actually not any) Whites, just from radical Blacks and liberal media.
- Posted by Romie Littrell
March 22, 2008 11:26 PM
Great article. I am glad you made it short so that everyone would read it in it's entirty. At first, I assumed that you were trying to equate Barack with Schwartz.
This article is a good foundation for a sound discussion.
- Posted by Erick J. Hendricks
March 23, 2008 1:26 AM
Great Article.
I often wonder with all the carefully crafted words that are spoken, do leaders miss on addressing the real reason why they were on air in first place.
- Posted by Rahul Sharma
March 24, 2008 3:00 AM
What you aluded to in the article without calling it out directly, is that how a message is delivered is oftentimes more important than the words used. Barrack is self-assured and clearly buys into his own words. Schwartz's body language came across as nervous, which projected the opposite. One man's unwavering conviction built trust and credibility. One man's ticks and eye movements created suspicion. Both may have been honest in their words and firmly believed that they were doing the right thing in delivering their message in the moment, but they got two very different results.
- Posted by Darin Phillips
March 24, 2008 12:47 PM
Barack Obama has been phenomenal at delivering great speeches. His words are spoken from heart (at least that is how people felt) upon hearing his speeches. This is the kind of leadership quality that any identity is striving to own.
- Posted by Melinda
March 26, 2008 9:30 PM
Barack Obama has been phenomenal at delivering great speeches. His words are spoken from heart (at least that is how people felt) upon hearing his speeches. This is the kind of leadership quality that any identity is striving to own.
- Posted by Melinda
March 26, 2008 9:30 PM