MANAGERIAL ACUMEN

A CEO is commander, with a role fundamentally different from the advisory functions of staff officers. The CEO has to make final decisions, choosing the best course of action from among a variety of options suggested by his aides and advisers. A military commander who adopts the wrong tactics can lose the battle ang thousands of men. In bussiness, this means losing the market and millions of dollars. In either case, the stakes are enermous. Konosuke Matsushita was an ardent advocate of participatory management based on the collective wisdom of everyone on the payroll. He was also a skilled listener, always ready to hear what his subordinates had to say and actively seeking advice from his bussiness associates. If the dictatorial type of leadership is one extreme, and the democratic type the other, beyond any doubt Matsushita be longed to the latter. Yet when he made decisions as a CEO he is said to have folowed the dictates of his inner voice. He often described the source of that voice as "intuition", it might be more aptly called "managerial wisdom." Asked what qualities a succesful manager needs. Matsushita cited wisdom, business acumen, a strong sense of responsibility, and leadership skills, "A person of wisdom", he said, "can pass correct judgment on a given situation or business proposition, "How does one cultivate such ability, then? According to Matsushita, managerial wisdom is the combined product of knowledge and experience (continued) (Source: Toru Yamaguchi, Intersect 1993)

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