Trailblazer

Michael Jones: What was the first thing that you did after leaving HP?

Carly Fiorina: The first thing I did was pause. I was inundated with job offers and it would have been really easy to jump into the next thing. But I paused and that was a really important decision. It allowed me to be strategic about my life. It was traumatic but it was also a great opportunity.

In 1998 Fortune magazine called you the ‘most powerful woman in business’. How do you feel about that title?

One of the things that I’ve said over and over again is that I wish the magazine didn’t have the list. I think it sends the wrong message. I don’t want to sound ungrateful, but when you list women you imply that business is like tennis, with a men’s ladder and women’s ladder, which are kept separate. I wish it didn’t exist but I’ve learnt that you can’t make your decisions based on what other people say. You have to make your decisions based on what is right for the organisation at the time.

You directed the strategy for one of the most successful IPOs in US history with Lucent. What did that experience teach you about yourself?

My initial reaction, when offered the job, was that I didn’t know anything about IPOs. But I learned there were many things I could bring to the table, because I knew the company well. There were also many things I had to learn. I found that combination exciting and it has become the way I judge all jobs. Am I going to be able to learn something as well as be able to contribute? Jobs where you can do both are the most fun and the most challenging.

I have also learnt the power of the logical question. One of the benefits you have when learning is that you can ask the supposedly ‘stupid’ questions. They are the most important questions to ask because they're easily breezed over. Looking back, people didn’t ask similar questions about the things that have led to the financial crisis.

The third thing I learnt is that, when you are trying to drive something, you need to have a vision of what a company can be. There were many people around Lucent who wanted us to reduce our scope, but it turned out that the bigger idea was more important.

Your book, Tough Choices, highlights the need for companies to have "change warriors", people that you refer to as your "300 Spartans". How do you best identify these people?

By asking managers and bosses to identify them. Most people can point to the enthusiastic, high-potential people within an organisation. These are the people who you go to every time. Create a group of these people and keep them in touch with each other and with management.

How concerned are you about the lack of women CEOs in Fortune 500 companies?

Things are clearly changing for the better, yet the data suggests that we still have a long way to go. If you look at the percentage of women represented in boardrooms, or leading big companies, it’s around 16% of senior executives and board members. This hasn’t changed in over five years.

The ‘club’ in the boardroom isn’t making as good a set of decisions as a more diverse group of people would and I have to believe that, as economic pressure continues to mount, talent will become more important than bias. There are good reasons for optimism, but progress has been slower than I would like.

What lessons could British or European businesswomen learn from their US counterparts?

I’m not sure it’s a question of European women learning from American women. I think European men could learn something from American men, seeing as it’s frequently men making the hiring and placement decisions. I think it’s fair to say that the American business community is more dynamic and more diverse, perhaps there is a connection there.

You have said that leadership is the balance between realism and optimism. Do you have an example of this?

Before we announced the merger between HP and Compaq we put together an integration plan and examined every scenario in terms of market share loss. We did that because we knew a banker would come in and tell us to do the deal. We wanted to be sure that we understood everything before we went in.

When I talk about realism, I mean considering what could go wrong. If you’re not optimistic about people’s ability to accept a challenge, if you’re not optimistic about people’s ability to innovate, then you can’t make any change.

Since leaving HP, you have become a director at Revolution Health Group, a board member of computer security company Cybertrust, chairman of the External Advisory Board for the CIA, and a board member of Taiwan Semiconductor Manufacturing Company. What drives you?

I just love a challenge. I find it exciting and interesting to try new things. It's one of the reasons I supported John McCain in the presidential political race. It’s not just because I thought he was a great man, it was an opportunity to learn something and contribute in a new way.

It’s also why I formed the One Woman Initiative, which is a public private partnership that identifies grassroots organisations in challenged parts of the world that are helping to empower women.

What keeps you awake at night?

That’s a tough one. I think we are in a challenging time right now. We are experiencing a simultaneous global economic downturn that hasn’t happened before. Our financial system is experiencing a set of stresses and breakdowns that we really don’t fully understand.

I think all periods of challenge are periods of opportunity but I worry that people will pull back and hunker down, that protectionism will overcome free trade. These are global worries right now.

Would you ever consider moving into politics yourself?

Never say never…