SSUE THE LEADERSHIP I LEADERSHIP THE China’s Steve Jobs Steve China’s What Would Winston Do? Winston Would What Hillary Takes on Hillary World the Takes JUNE 2012 N O .2 • THE LEADERSHIP ISSUE • JUNE 2012 WEALTH MANAGEMENT Everyone has goals in life. Take the steps to reach yours, with us. A U.S. Bank Wealth Management Advisor can help guide you every step of the way. We’ll meet with you to understand your short and long-term goals and then provide real advice to help you reach those real goals. Through The Private Client Group, The Private Client Reserve and Ascent Private Capital Management we offer comprehensive wealth management solutions for individuals, families and foundations. From big steps to little steps, since 1863, we have helped guide our clients, so they can take the steps to help grow, preserve and pass along their wealth for generations to come. Let us be part of your next step. To locate an advisor near you, visit usbank.com/wealth-management or call 866.481.2077. usbank.com/wealth-management NOT A DEPOSIT NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY Deposit products offered by U.S. Bank National Association. Member FDIC. WEALTH MANAGEMENT Everyone has goals in life. Take the steps to reach yours, with us. A U.S. Bank Wealth Management Advisor can help guide you every step of the way. We’ll meet with you to understand your short and long-term goals and then provide real advice to help you reach those real goals. Through The Private Client Group, The Private Client Reserve and Ascent Private Capital Management we offer comprehensive wealth management solutions for individuals, families and foundations. From big steps to little steps, since 1863, we have helped guide our clients, so they can take the steps to help grow, preserve and pass along their wealth for generations to come. Let us be part of your next step. To locate an advisor near you, visit usbank.com/wealth-management or call 866.481.2077. usbank.com/wealth-management NOT A DEPOSIT NOT FDIC INSURED MAY LOSE VALUE NOT BANK GUARANTEED NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY Deposit products offered by U.S. Bank National Association. Member FDIC. E d itor’s L et ter Washington’s foreign policy establishment. The picture we have of Henry Ford is of a revolutionary captain of industry who pretty much did as he pleased. But as Reuters’ own car guy, Deputy Editor in Chief Paul Ingrassia, shows us, Ford had to fight tooth and nail to build the Model T, even in the company that bore his name. The iconic Chevy Corvette and once ubiquitous Chrysler minivan would also have died in committee were it not for the tenacity of a few good leaders, remind- IT’S EASY to bemoan the scarcity of great leadership ing us that subduing one’s own corporate bureaucracy is in the world today. It’s more difficult, but also more sometimes a prerequisite to great deeds. useful, to explore what kind of leadership is likely to Not long ago, Chinese CEOs tended to be Commu- be most effective in this time of rapid change and ram- nist Party stalwarts—often intelligent, capable man- pant uncertainty. agers, but not exactly ones to shake things up. Today, When we decided to tackle this challenge in a spe- China boasts a growing stable of dynamic corporate cial issue on leadership, one of our first calls went to leaders—people like Zhang Yue, whose Broad Group Sir Harold Evans, our esteemed editor-at-large. We erected a 30-story hotel in just 15 days and whose own asked the longtime lion of British journalism to con- drive and ambition can call to mind a Middle Kingdom duct a kind of thought exercise: What would Winston version of Steve Jobs. Beijing correspondent Terril Churchill do faced with today’s seemingly nonstop Jones goes behind the scenes with Zhang and offers financial and political crises? a fascinating snapshot of how corporate leadership is The result is an elegant, insightful, and remarkably evolving in the world’s second-largest economy. inspiring rumination on leadership that begins with So what would Winston do? Sorry, no spoilers here. young Harry in short pants huddled with his mom and You’ll have to read Sir Harry’s piece to learn the an- two infant brothers in an air-raid shelter in Manches- swer for that one, but I am confident it will be worth ter. Even then, he was comforted by what he describes your time. For more insights into leadership and other as “The sound of exalted leadership in the growling timely global themes, along with trusted news and declarations of Winston Churchill.” commentary from Reuters’ 3,000 journalists world- Along with Sir Harry’s take on Churchill, the high- wide, please visit us at Reuters.com. lights of this issue include Susan Glasser’s shrewd as- sessment of Hillary Clinton’s performance as secre- All the best, tary of state. Who would have guessed four years ago that Clinton would be the most popular politician in the United States—and, like it or not, a capable prac- titioner of “soft power” diplomacy. Nonetheless, ac- cording to Glasser, editor in chief of Foreign Policy and a Reuters columnist, Clinton remains a puzzle to StEPHEN J. ADLER, Editor in Chief EDITOR IN CHIEF Stephen J. Adler EXecUTIVE EDITOR Chrystia Freeland MANAGING EDITOR Jim Impoco CREATIVE DIRecTORS Grace Lee and Robert Priest, Priest+Grace ASSISTANT MANAGING EDITORS Roger D. Hodge, Bob Roe SENIOR EDITORS James Ledbetter, Paul Smalera HOEWELER MICHAEL BY N ASSOCIATE EDITORS Atossa Abrahamian, Peter Rudegeair PICTURE EDITORS Russell Boyce, Alexia Singh INFO GRAPHICS Maryanne Murray COPY EDITORS Lauren Casper, Prudence Crowther, Douglas Royalty PORTRAIT ILLUSTRATIO PORTRAIT �o. REUTERS 2 JUNE.2012 PORTRAIT ILLUSTRATION BY MICHAEL HOEWELER Table of Contents Leadership June 2012 PORTFOLIO REBELLION 101 INFOGRAPHIC POLITICAL ECONOMY FOLLOW ME THE REVOLUTION WILL BE BUILD YOUR EMPIRE WELL ARE STATE-LED World leaders dominated ORGANIZED! Some of world’s most EcONOMIES BETTER? the headlines from the past The uprisings associated remarkable imperial reigns Unstable, destructive and year, and that’s both good with the Arab Spring gave were, relatively speaking, crisis-prone, laissez-faire news, and bad news. rise to the notion that historical blips. Here’s capitalism is under siege. 08 16 populist rebellions don’t 19 how they stack up. 20 by Ian Bremmer need leaders. And then by Maryanne Murray came Syria…by Hugo Dixon NEWS-MAKER BEST PRACTICES NETWORKING LEADING INDICATORS THE LEADERSHIP LESSONS OF WHACK ’EM WITH A BOARD! RUNNING AL QAEDA THE CEO FILE CHAIRMAN RUPERT Shareholders (and ethics) How Osama bin Laden CEOs don’t always enjoy The phone-hacking scandal demand that boards stop managed his far-flung the spotlight—just ask isn’t the first crisis the sleeping on the job. terror operation and Rebekah Brooks and resourceful NewsCorp by Lucy P. Marcus forced America to rethink Bernie Ebbers. 22 boss has had to grapple 24 26 warfare. by Zachary Tumin 28 with. by Jack Shafer FEATURES WAR-STORIES DIPLOMACY TALL ORDERS INVESTING INDUSTRY WHAT WOULD HILLARY VS. THE MADE-in-CHINA KILLING THEM CAR CZARS 30 36 42 48 Some54 of the most WINSTON DO? THE WORLD CEO SOFTLY The world is in crisis-mode Secretary of State Clinton A bold new brand of CEO Marc Andreessen invented important breakthroughs because political leaders is among the most popular is pushing the Chinese the Internet as we know it. in the automotive industry refuse to lead, and “think” politicians in America. economy into the Now he’s trying to reinvent would have died in com- with their poll numbers. What has she actually stratosphere. Exhibit A is venture capital. mittee if it hadn’t been for a few extraordinary lead- We could look to the accomplished as the Zhang Yue, who has noble by Jonathan Weber heavens for a miracle. nation’s top diplomat? goals and grandiose ers with drive and vision. Or we could look to by Susan Glasser ambitions that include by Paul Ingrassia Winston Churchill. building a vertical version by Sir Harold Evans of the great wall. by Terril Yue Jones BIOGRAPHY MOVIES FAILURE Cover illustration LEADERSHIP BY THE BOOK LEADING LADIES FALLEN LEADERS by You can’t get there Seven international stars It’s a tough time to be a CHRISTOPH from here. who are making box-office leader. Good thing NIEMANN by James Ledbetter magic. guillotines are out of 60 62 64 fashion. �o. REUTERS 1 JUNE.2012 Sprint is #1 among all national carriers and most improved in customer satisfaction, across all 47 industries, over the last four years. -2012 American Customer Satisfaction Index sprint.com/expertsagree Contributors Paul Ingrassia Sir Harold Susan Glasser Terril Yue Peter Rudegeair Evans Jones and Atossa The Model T, the Foreign Policy editor-in- Abrahamian Corvette, and the When Britain was chief Glasser traveled With his noble ideals Chrysler minivan under siege by the the world with Secre- and grandiose ambi- Ever wondered which are iconic American Nazis in 1940, Win- tary of State Hillary tions, Zhang Yue is part actresses are big in Iran, automobiles that almost ston Churchill insisted Clinton, observing of a new generation of or what Mao’s Little Red didn’t happen. In Car that his nation would America’s chief ambas- CEOs who are redefin- Book can teach us about Czars, Pulitzer Prize emerge victorious. Be- sador in real time and ing Chinese business. business leadership? winner and Reuters cause of his charismatic on dozens of diplomatic In The Made-in-China Or which CEO has the deputy editor-in-chief authority, writes Evans, engagements.