Georg Wernicke’s Post

💼 Can a CEO's Military Background Prevent Financial Misconduct? 💼 What do CEOs with military experience bring to the corporate world? Discipline? Integrity? Georg Wernicke and his colleagues examined two unique datasets—one on financial fraud from #SEC accounting and auditing enforcement releases, and another on “lucky grants” (stock options with suspiciously perfect timing). The findings? CEOs with a #military background are significantly "less" likely to engage in fraudulent financial reporting or backdate stock options. But it doesn't stop there. The relationship is even stronger when there's effective board oversight, particularly with independent #directors and when the CEO doesn't hold the dual role of board chair. These findings highlight the value of military experience in corporate #leadership and its role in promoting financial integrity. This study offers important insights for regulators, auditors, and anyone focused on preventing corporate #misconduct. 💡 What are your thoughts on military CEOs? #Leadership #Military #CEO #Board #SMJ The Strategic Management Society AOM STR - Strategic Management Division P.S. Since Georg Wernicke was the first to give me a thumbs up, this one’s for you! I hope you like it 😀 Authors: Irmela Koch-Bayram, Georg Wernicke Current Affiliations: University of Mannheim, HEC Paris Read more: https://lnkd.in/eVs3-qMe

Kerrin Anderson and Lewis Atkinson, thanks for the insightful discussion on integrating risk into strategy using the Haines Centre for Strategic Management Limited systems thinking approach! This discussion brought me back to my earlier days learning Professor Arthur Lykke's (The United States Army War College) model, where risk stems from imbalances between objectives, concepts, and resources. Regardless of the model, recognizing risk, understanding its root causes, and having mitigation plans are crucial to success along with ensuring you have the resiliency to deal with any outcome. Thanks! #strategy #riskmanagement #resilience International Association for Strategy Professionals

Most of this article is not relevant to what we do, but one quote stood out...👇 #.....we've been here before, and workforce alone does not create capability." he's right. it takes a few elements working together, governance and practice. #capabilitydevelopment #capabilityled

Call Sign Chaos, by Jim Mattis and Bing West "A clear-eyed account of learning how to lead in a chaotic world, by General Jim Mattis—the former Secretary of Defense and one of the most formidable strategic thinkers of our time—and Bing West, a former assistant secretary of defense and combat Marine. Call Sign Chaos is the account of Jim Mattis’s storied career, from wide-ranging leadership roles in three wars to ultimately commanding a quarter of a million troops across the Middle East. Along the way, Mattis recounts his foundational experiences as a leader, extracting the lessons he has learned about the nature of warfighting and peacemaking, the importance of allies, and the strategic dilemmas—and short-sighted thinking—now facing our nation. He makes it clear why America must return to a strategic footing so as not to continue winning battles but fighting inconclusive wars." https://lnkd.in/eQm8gwgR #PersonalDevelopment #ProfessionalDevelopment #Reading #Leadership #FutureFight #LessonsLearned #OneGuard #Guard387

Letter in Case of Failure Last November, a former Member of Congress introduced me to “Letter in Case of Failure”. It was in the context of a discussion on accountability and specifically, the accountability (or lack thereof) of some of American’s political leaders today. If you’re not familiar with the “Letter in Case of Failure” (I was not), it is a pre-eminent example of leadership accountability. It was authored by the then Supreme Commander of the Allied Expeditionary Force in Europe during WWII, General Dwight D. Eisenhower. He wrote it out long hand the night before the D-Day invasion - June 5, 1944. It reads: "Our landings in the Cherbourg-Havre area have failed to gain a satisfactory foothold and I have withdrawn the troops. My decision to attack at this time and place was based upon the best information available. The troops, the air and the Navy did all that Bravery and devotion to duty could do. If any blame or fault attaches to the attempt it is mine alone." Thursday night, U.S. President Joseph Biden addressed the nation on the matter of a Special Counsel report on classified documents that then Vice President Biden had retained in his home, garage and other locations. Sadly, he did not follow the extraordinary example of General Eisenhower in accountability. He put the responsibility at the doorstep of his “staff” for how they handled and stored various classified documents. It was only when asked by a reporter about what he might have done differently in hindsight did he respond that “he should have paid closer attention to how his staff handled the boxes.” Listen to his remarks and then re-read Gen. Eisenhower’s “Letter in Case of Failure.” It is time for American citizens, employees and the media to expect accountability in our leaders – be they family, community, faith, journalism or business leaders. Most especially, we should hold our political leaders - of all party affiliations – accountable, and even more so our Presidents. President Biden’s predecessor, Donald Trump, could learn many lessons in accountability from General Eisenhower and his letter. Thank you, General Eisenhower, for showing us accountability and giving us all a standard to live by. #accountability #leadership #eisenhower

Battlefield or boardroom – it all comes down to trust The business world has a lot to learn from the military when it comes to decision-making in times of great stress or where the outcome has serious implications for those involved. Little in the corporate world compares to the high-stakes conversations that take place during armed conflicts. Francesca Giulia Mereu and Stephen Kilpatrick share three practical steps to building trust, a prerequisite for meaningful engagement and a positive outcome in high-stakes situations, whether in the boardroom or on the battlefield: https://bit.ly/3JpWwTK #IMDImpact #IbyIMD

Chairman of the Joint Chiefs of Staff Air Force Gen. CQ Brown, Jr., called for increased togetherness and collaboration between the Defense Department and the defense industrial base. "When it comes to the DOD and our defense industry partners, the only way to ensure our national security is to work together," said Brown, who added that he sees collaboration as the "pathway to success." "As I like to say, success takes help; failure you can do alone," he said. In discussing the keys to achieve collaboration among defense stakeholders, Brown stressed it’s important to "communicate our priorities and align our equities." "Together, we need to be willing to put all the cards on the table — the good, the bad, the ugly — so we can work together on solutions," Brown said. "We need to discuss not what’s best for one service [or] what’s best for one company, but what’s best for the joint force, what is best for multiple companies, [and], most importantly, what’s best for our national security." Brown emphasized that, despite industry and the military having slightly different needs— with the former being focused on building quality products and turning a profit and the latter focused on modernizing and remaining the most respected combat-capable force in the world — both entities need to be focused on contributing to national security together. https://lnkd.in/eWP2bbYG

Why is USASOC cutting Psychological Operations and Civil Affairs-already two of the highest demand, lowest density SOF-and not other forces? And is there a better approach? My last article argued for the importance of influence on the modern battlefield. In this article, Jan K. Gleiman (Ken) and I look at the history and organizational factors behind SOF force structure decisions. There are better options than the current plan to move CA and PSYOP under SF Groups. These options include: 1) Make CA and PSYOP part of SF, 2) Eliminate 1st SFC, 3) Make an "Influence Command" directly under SOCOM, or 4) Move CA and PSYOP out of SOF altogether. Thanks to the War on the Rocks team, Zachary Griffiths and Dr. Jonathan Schroden. Steve Ferenzi David Maxwell Kyle Atwell Robert Curris Kevin B. Sandor Fabian (Ph. D.) Doug Livermore Michael Arnone Matt Armstrong Army Strategist Association FA59 Army Strategist Joint Special Operations University Irregular Warfare Center (IWC) Irregular Warfare Initiative 8th Psychological Operations Group (Airborne), 1st Special Forces Command (Airborne), U.S. Army Civil Affairs Association U.S. Army Civil Affairs and Psychological Operations Command 1st Special Forces Command (Airborne) - US Army United States Army Special Operations Command Headquarters, US Special Operations Command #psyop #informationwarfare #militarystrategy #forcestructure #pscyologicaloperations #greatpowercompetition #specialoperations #specialoperationsforces #sof https://lnkd.in/eJA4RdaB

“To the SOF community: Your nation needs you once more. Bring your leadership and commitment to the halls of power.” Our Founder, Daniel Elkins, wrote an Op-Ed for RealClearDefense challenging SOF members to run for public office. We believe America needs leaders who are strategic thinkers and problem-solvers with real-world experience and ethical standards—who have what it takes to navigate high-stakes environments. These are qualities SOF members have forged in the fires of danger and adversity. Read the full piece: https://lnkd.in/gEjhJ5FH #specialoperationsforces #specialoperations #veterans #leadership #runforoffice

The Role of Pistols for Military Captains and Their Relevance to Modern Industry In historical military contexts, captains were typically equipped with pistols rather than rifles. This was not primarily for engaging in frontline combat but for maintaining discipline within their ranks. The compact and easily accessible nature of pistols made them effective for enforcing order, including the grim task of dealing with deserters swiftly. As noted by military historian John Keegan, “The pistol served as both a symbol of authority and a tool of enforcement, a stark reminder of the ultimate power vested in the captain to maintain cohesion and morale.” This historical practice holds valuable lessons for modern industry. While the enforcement of discipline in contemporary settings does not involve such severe measures, the underlying principle remains relevant: leaders must have the tools and authority to maintain order and uphold standards. In the corporate world, this translates to having clear policies, the ability to enforce them, and the means to address non-compliance decisively. Just as military captains needed to command respect and ensure unit cohesion, modern leaders must foster a disciplined environment where expectations are clear and upheld. This ensures operational efficiency and a stable, productive workplace culture. In conclusion, the symbolism and function of the captain’s pistol underscore the importance of leadership tools in maintaining order and cohesion, a concept equally critical in today’s industrial landscape.