July 6, 2018 Lessons in Leadership from the 2018 Senior Multicultural Leaders Conference By Carla Harris

The 2018 Senior Multicultural Leaders Conference was an outstanding event that advanced the momentum created by the 2016 and 2017 conferences. There were great revelations from the global market strategists, Lisa Shalett and Ira Kalish regarding the capital markets impact that will be created by the tariffs and an agreement on the likelihood of one more Fed interest rate hike. We learned about the emerging standard of care in testing microbiomes and the company value of having the largest microbiome sample in the world, the evolution of digital health and mobile cardiac care, vaccine delivery via a patch, and the requirements of a 21st century public/private partnership for efficacy and sustainability.

I was especially appreciative for the lessons in leadership from two trailblazers, Chairman of General Catalyst and former American Express Chairman and CEO, Kenneth Chenault, and former Time Warner Chairman and CEO Richard Parsons. Each shared a few pages from their leadership playbooks with our conference attendees, and I was absolutely struck by the consistency of the advice from both men.

As the only event of its kind to bring together a diverse group of senior-level executives across industries for provocative and enlightening discussions on what’s going on in the global markets and some of today’s most consequential organizations, we were privileged to bear witness to these extraordinary discussions.

It was an inspiring day, and I hope that the insights, lessons and connections made will extend well beyond the event itself. And in the spirit of increasing access to opportunity, I want to share some of those lessons from the #SMLC18 with those of you who weren’t able to join us in person.

Submit your ego to the larger purpose.

Remember, it’s a privilege to lead, it’s not a right. Great leaders reach the C-suite by focusing on being impactful and helping their company succeed, not on their personal achievements. As leaders we don’t get to choose our challenges, but a leader’s job is to be decisive and to make decisions with empathy. Leaders have to put a premium on authenticity and trust, because without trust, you won’t have the following you need to make things happen. “As leaders, our job is to define reality and give people hope,” Ken Chenault told us.

Immediately, I understood why, for example, Dick Parsons is the only senior executive that I have seen during my 30-year career who has consistently been called in to handle companies in different industries that are facing crisis: Dime Bank, Time Warner & AOL, Citibank, and the LA Clippers. Why Dick? Because people trust him. He calls it like he sees it, and every time he has been faced with a challenge, he’s found the solution, and has been able to bring his stakeholders along with him on the road to success.

How could Ken Chenault, restructure and right size American Express, 18 months after the 9/11 crisis without any major repercussions? Employees trusted and believed that he was doing the right thing for the company, as difficult as it was, and ultimately the right thing for them. They TRUSTED HIM!

REAL trust with stakeholders – especially employee stakeholders – enables a leader to make the hard decisions at exactly right the time, in exactly the right way, with everyone on board.

Take a risk.

Far too often, people are preoccupied with the fear of failure, and those fears are often magnified when you’re the first or only woman or person of color in that role or in the room. Failure is an option. Don’t let that fear of failure restrict your ability to take a risk and swing for the fence. If you fail, it doesn’t have to be irreparable. It’s all about how you fail, how quickly you recover, and how you message the story.

The greatest innovators not only have the ability to see something that others cannot, they also have the courage to bring people along with them as they work to make the unimaginable a reality. If they were to allow fear to get in the way, they would never take the risk and they would never innovate. And if you don’t innovate, then, by definition, you cannot lead.

Embrace change.

Most people are really scared of change, and as a leader you must effectively communicate and emphasize to your people that they MUST embrace change. The pace of change is accelerating in today’s global marketplace, as the convergence of technology, immigration, migration and globalization is transforming the business and geopolitical landscape.

A leader’s message needs to create a galvanizing vision of why people should change, and change should not just be as a reaction to competitive threats, for change as a response to fear, may not work. Chenault commonly told his people, “I want to be the company that will put us out of business.” That’s because there’s no such thing as keeping your position; you must move and that is absolutely critical if you are going to survive, let alone compete. If you want to be a leader then you have to constantly challenge the status quo.

When we set out to organize this conference, we wanted to create an environment for attendees to build their networks, exchange ideas, and learn from the leaders who are shaping today’s business landscape, and in turn, apply those lessons learned to the corporate strategies they’re executing on a daily basis. We are doing just that and more as we also develop the playbook for inclusive innovation and opportunity at Morgan Stanley.

Please stay tuned and join me as we continue on this important journey!