Are you a Schultzian or a Welchian?

I am a Keynesian. I believe in stimulus packages and new deals. Fortunately my husband, whom I met in business school, is also a Keynesian. Before we were married we declared our economic philosophies so that there would be no nasty surprises on our wedding night. I don't believe I could life happily ever after with a monetarist, someone who believes in the primacy of price stability the manipulation of the money spigot. It would be a deflating experience with dwindling interest. 

Similarly, there are two philosophical camps of leadership that Jack Welch, formerly of GE and Howard Schultz, currently of Starbucks, embody. You can't be both a Welchian and a Schultzian any more than you can be both anti and pro gay marriage. People in the Welchian and Schultzian camps are more stark in their beliefs than even the Keynesians and the monetarists. 

If you don't know whether you're a Welchian or a Schultzian, here is a summary of the two men and their philosophies: 

How Welch's titled his books: Straight from the Gut / Winning 

How Schultz's titled his books: Pour your heart into it / Onward: How Starbucks Fought for Its Life without Losing Its Soul

Welch's parental influence: "My mother told me--God bless her, Irish mother. She made me feel 6'4 with hair too. She told me every day, 'Jack, your mind just works too fast for your tongue. You're too smart'. I believed her.''

Schultz's parental influence: "My father never got a chance to work for a company that respected him. He was an uneducated war veteran. In the back of my mind, I have been trying to build the kind of company that my father never got a chance to work for." 

Welch's advice: "Control your own destiny or someone else will."

Schultz's advice: "I'd encourage everyone to dream big, lay your foundations well, absorb information like a sponge, and not be afraid to defy conventional wisdom."

Welch's credo: "It's all about performance."

Schultz's credo: "I always saw myself wanting to do something deemed successful and good at the same time." 

Welch on what comes to his mind: "Being a CEO is nuts! A whole jumble of thoughts come to mind. Over the top. Wild. Fun. Outrageous. Crazy. Passion. Perpetual motion. The give-and-take. Meetings into the night. Incredible friendships. Fine wine. Celebrations. Great golf courses. Big decisions in the real game. Crises and pressure. Lots of swings. A few home runs. The thrill of winning."

Schultz on what comes to his mind: "There is a word that comes to mind when I think about our company and our people. That word is 'love'. I love Starbucks because everything we've tried to do is steeped in humanity."

Welch on people management: "Think of yourself as a gardener with a watering can in one hand and a can of fertilizer in the other. Occasionally you have to pull some weeds…"

Schultz on people management: "Treat people like family, and they will be loyal and give their all. Stand by people and they will stand by you."

Welch on mission: "In my experience an effective mission statement basically answers one question: How do we intend to win in this business?"

Schultz on mission: "Our mission statement about treating people with respect and dignity is not just words but a creed we live by every day. You can't expect your employees to exceed the expectations of your customers if you don't exceed the employees' expectations of management. That's the contract."

Welch on Wall Street (via HBR): A speech that Welch gave at the Pierre Hotel in New York several months after his appointment is seen by many as the true dawn of the era of shareholder value. Though he didn’t use that term explicitly, the speech marked a clear shift to a profits-first focus. Both men [Welch and Coke CEO Roberto Goizueta] were outspoken advocates of focusing companies on shareholder value, and both received unprecedented amounts of stock-based compensation. (source: Harvard Business Review) 

Schultz on Wall Street: "While Wall Street has taught me a lot, its most enduring lesson is an understanding of just how artificial a stock price is. It's all too easy to regard it as the true value of your company, and even the true value of yourself."

Welch on social responsibility: "I think a company's social responsibility is first and foremost to win."

Schultz on social responsibility: "We have tried to build a different kind of company that would balance profitability and benevolence."

Closing argument from Mr Welch:

Closing argument from Mr Schultz:

So which camp do you belong to, and which philosophy do you think is winning? There is no right or wrong answer, but a Schultzian should never work for a Welchian or vice versa. 

About the Author: Lynne Everatt is a former Globe and Mail Careers columnist, canfitpro-certified personal trainer, and the author of two books, Drink Wine and Giggle and Emails from the Edge (nominated for the Stephen Leacock award for humour). She is an avowed Schultzian. So is her husband.