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Wanted: more bosses on the shop floor

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Wanted: more bosses on the shop floor

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On the day of the US election this week, I was struck by a familiar sense of anxiety, dismay and dread.

This had almost nothing to do with the election and everything to do with my decision to spend time that day on the FT’s main news desk. 

In the interests of research, I wanted to see what the job of news editing looked like since I last worked on that desk in London many years ago. 

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Clearly much has changed since. The homepage is all-consuming; an entirely different team of editors handles the printed paper. But much is still the same, like the stomach-grinding anxiety about inserting an error in the rush to publish. And the heart-stopping fear of receiving a late, garbled story needing not so much editing as open-heart surgery. And the remorseless speed of the work.

“You all right?” muttered the news editor, a man I’ve known for close to 20 years, as I faffed about trying to log in to the first morning news meeting of top editors. Flustered, I finally got the sound on as he was explaining why I was there, whereupon I thanked him and called him Tim instead of his actual name, which is Tom.

This was a reminder of something I had forgotten in my years away from that work. It is so much harder than it looks from the outside.

The experience confirmed that business leaders who do what Boeing’s new chief executive, Kelly Ortberg, did the other week deserve much credit. 

When Ortberg set out his plans to restore faith in the beleaguered aerospace giant, he highlighted one in particular: putting executives on factory floors as part of “a fundamental culture change”.

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“We need to know what’s going on, not only with our products, but with our people,” he said. “We need to prevent the festering of issues and work better together to identify, fix, and understand root cause.”

This seems obvious for any company, let alone one reeling from the aftermath of two fatal crashes of its top-selling 737 Max aircraft.

Yet if it really were apparent, there wouldn’t be headlines whenever someone like Ortberg issues such an edict. Or Home Depot tells corporate office staff to work a full day at one of its stores each quarter, as it did this year. Or Uber’s CEO, Dara Khosrowshahi, reveals he has been moonlighting as a driver, as he did last year. 

Maybe more bosses than we hear about spend time answering customer complaints on social media, such as Greg Jackson, chief executive of the UK’s Octopus Energy power supplier. Or decide a human can adjust a car window seal faster than a robot by trying it himself on an assembly line, as Elon Musk did at Tesla. 

But I doubt it. For one thing, few CEOs are like Musk. Also, running a business is hard. It can be easy to get caught up in the daily crossfire of drama. When Khosrowshahi was driving a customer to the airport one night, he had to ignore what the Wall Street Journal said were frantic phone calls from his chief legal officer trying to tell him the company’s network had been hacked.

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It also takes a lot of confidence to expose yourself to the ridicule of underlings who know more about how a job is done, especially for CEOs unfamiliar with the industry they join.

But I suspect many executives shy away from the shop floor because they have succumbed to an aspect of power poisoning, or the way behaviour changes when you reach the top.

In this case, they think that, because they are in charge, they understand everything they need to know in order to lead well, even when they palpably don’t. Academics call this the fallacy of centrality and it can be a dismaying thing to watch. Ask any worker repeatedly asked to do something provably unworkable by a clueless boss. 

Of course, hands-on experience alone does not guarantee success. Laxman Narasimhan did 40 hours of barista training before taking over as CEO of Starbucks and last year said he would keep working behind the counter for half a day each month. He was ousted 17 months later. Falling sales and an activist investor will probably always beat even the finest Frappuccino technique.

pilita.clark@ft.com

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Live news: Trump gives US ambassador to Israel post to ex-governor Mike Huckabee

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Events to look out for on Tuesday include speeches from the Federal Reserve governor, Home Depot earnings and Spotify results:

Fedspeak: Less than a week on from the central bank’s second rate cut of the year, Federal Reserve governor Chris Waller will deliver the keynote at the Clearing House Annual Conference in New York. Separately, Federal Reserve Bank of Richmond president Tom Barkin is scheduled to speak at a summit in Baltimore. At Carnegie Mellon University, Philadelphia Fed president Patrick Harker will deliver a lecture on “Fintech, AI & the Changing Financial Landscape”.

Home Depot: Investors will be eager to find out whether the Federal Reserve’s back-to-back rate cuts, which will have an effect on mortgage rates, have made a difference to consumer appetite for home improvement projects. Home Depot, which last quarter cut its sales outlook on weakened consumer spending, is projected to report a 4.3 per cent increase in third-quarter revenues, to $39.3bn.

Other earnings: Tyson Foods will announce fourth-quarter earnings before the opening bell. Flutter and Spotify will post quarterly results after market close.

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Trump transition tracker: Trump nominates Mike Huckabee to be Israeli ambassador

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President-elect Donald Trump’s newly picked “border czar” Tom Homan addressed his forthcoming deportation plan and state leaders who have objected to sweeping immigration policies.

During an appearance on Fox News on Monday, Homan issued a warning to so-called “sanctuary” states and cities to “get the hell out of the way” of the Trump administration’s mass deportation plans.

File – In this Dec. 5, 2017 file photo, then Acting Director for U.S. Immigration and Customs Enforcement Thomas Homan at a news conference in Washington.

“I saw today numerous governors from sanctuary states saying they’re going to step in the way. They better get the hell out of the way. Either you help us or get the hell out of the way, because ICE is going to do their job,” he warned, referring to the U.S. Immigration and Customs Enforcement, where he formerly served as director.

“I’ll double the workforce in that sanctuary city. We’re going to do our job despite the politics. We’re doing it. So get used to it, because we’re coming,” Homan said.

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When asked if he plans to deport American citizens, Homan said, “President Trump has made it clear we will prioritize public safety threats and national security threats first, and that’s how the focus would be.”

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Germany’s Olaf Scholz defies odds as party swings behind re-election bid

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Germany’s Olaf Scholz defies odds as party swings behind re-election bid

Olaf Scholz has just pulled the plug on his coalition and lost his parliamentary majority, with polls suggesting his party will be defeated in Germany’s upcoming snap election. Yet he still looks likely to be crowned as his party’s candidate for chancellor.

The government crisis that culminated last week with Scholz calling time on the three-party alliance plunged Germany into a new phase of turbulence. But Social Democrat leaders have rallied round him, steadying his status in a party that long nurtured doubts about their chancellor.

Some Social Democrats would still prefer to see him replaced on the ballot by Boris Pistorius, the popular defence minister. But they are the minority. Most expect an SPD congress to be held in the coming weeks to anoint Scholz as the party’s Kanzlerkandidat — regardless of his approval ratings.

The support for Scholz was on full display at an emotional meeting of the SPD parliamentary group last week when he was given a standing ovation by MPs.

Jens Spahn, an MP for the opposition Christian Democrats (CDU) and a former health minister, described the scene as “surreal”.

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“Here is Olaf Scholz, a failed chancellor, his coalition has just broken down, he’s sacked his finance minister and his SPD thinks it’s a cause for celebration?” Spahn told the Financial Times.

The incredulity in opposition ranks increased after a television interview with Scholz on Sunday evening in which he refused to admit mistakes and, in the view of some commentators, came across as cold and unsympathetic.

Some have openly questioned why the party still backs Scholz. TV presenter Micky Beisenherz compared him to Bruce Willis in the film The Sixth Sense. He “goes to work every day even though he’s long dead,” he wrote on X. “He just doesn’t know it yet.”

Just months ago, Scholz’s position was precarious. Some in the SPD blamed him for the party’s slump in support, with polls putting it at between 14 and 16 per cent over the past year, way behind the CDU on 30 to 32 per cent.

Many Social Democrats wonder whether they would be better off fielding defence minister Boris Pistorius © Bernd von Jutrczenka/dpa

But Scholz’s standing among some of his party colleagues has paradoxically improved since the government’s collapse. They have hailed him as a hero who finally lanced the boil, ending a dysfunctional government riven by ideological conflict.

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For them, the sacking of finance minister Christian Lindner, leader of the pro-business Free Democrats (FDP), was the inevitable climax of months of provocation.

“There is relief that we will no longer be subjected to endless humiliation by Lindner and the FDP,” said one SPD MP.

Scholz said he fired Lindner because he refused to suspend the “debt brake” — Germany’s constitutional cap on new borrowing — to allow for more funding for Ukraine. The issue has taken on greater urgency since US voters re-elected Donald Trump, who has questioned western aid to Kyiv.

The dismissal played well in the SPD’s grassroots. “It was a kind of liberation — long overdue,” said Dirk Smaczny, head of the party’s local branch in Rheinhausen-Mitte, near the Ruhr industrial city of Duisburg. “We’ve been waiting a long time for Scholz to show strong leadership, and he finally delivered it.”

“He could have said ‘let’s just muddle through another year’,” said Johannes Fechner, a senior SPD MP. “The fact he accepted that the country needed a new government, even though it might mean he’ll lose his job — the SPD rank-and-file really respect him for that.”

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Yet Scholz remains controversial in the party. Closely associated with the labour market reforms of chancellor Gerhard Schröder in the early 2000s that alienated working-class voters, he lost his bid for the party leadership in 2019 in a humiliating defeat.

He staged a remarkable comeback two years later, running for chancellor in 2021 and winning the election. He then brought together the SPD, FDP and Greens in a coalition that was unique in Germany’s history.

But his record has been clouded by countless internal rows over economic policy that he tried — and ultimately failed — to mediate. Scholz has seen the worst approval ratings of any postwar chancellor.

On Monday two SPD politicians from the chancellor’s home town of Hamburg, Markus Schreiber and Tim Stoberock, said he should make way for the defence minister.

“Our chances of winning the election or at least performing a lot better are much greater with [Pistorius], who has long been Germany’s most popular politician,” they wrote on Instagram.

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Scholz spent too much time cobbling together compromises “in technocratic language” which were then rejected by his coalition partners. “We believe the negative image the people in this country have of him can no longer be repaired,” they wrote.

Privately, some SPD lawmakers agreed that Pistorius might be a better bet. “But politics doesn’t work like that,” said one. “Scholz’s huge strategic advantage is that he holds the reins of power. He’s the one who took this step. He’s the one who announced early elections. That gives him a certain strength.”

Scholz has shown no inclination to stand aside — nor does he intend to put his candidacy to a party vote.

His spokesperson Steffen Hebestreit on Monday defended the absence of a formal selection process, saying there was no need — and also no time.

“First of all, he’s the natural candidate because he’s chancellor,” he told reporters. “Secondly, look at the clock . . . We’re going to have snap elections quite soon, if he loses the confidence vote. We all need to focus on that right now, and you can understand why.”

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Observers said that approach made sense, especially in light of what just happened in the US.

Wolfgang Schroeder, a political scientist at Kassel University, noted that the Democrats had hoped to improve their fortunes by substituting Joe Biden for Kamala Harris just months before the election.

“It injected some momentum, but it didn’t turn out to be long-lasting or effective,” he said. “For that reason I would advise the SPD against carrying out any grand experiments right now.”

MPs from the opposition CDU say that suits them, predicting that Scholz will be soundly beaten by their leader Friedrich Merz. “Olaf Scholz is the face of failure,” said CDU’s Spahn. “As such, we couldn’t wish for a better opponent.”

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