The Transformational Leader

1The Catastrophic Leadership Crisis

When written in Chinese, the word crisis is composed of two characters. One represents danger and the other represents opportunity.

—John F. Kennedy

IF YOU'VE EVER experienced a summer day in Chicago, you know it's magical. With clear, blue skies and a gentle Lake Michigan breeze, locals and visitors alike stroll the paths of Millennium Park, the air filled with children's laughter and the distant melodies of street musicians. The first day of summer in 2022 was no different. The weather was beautiful, and I was in Chicago finishing the manuscript for my second book, Culture Is the Way. I had just returned from a speaking engagement in Los Angeles to conduct one of the final interviews for the book. I was scheduled to meet with Horst Schulze, cofounder of the Ritz-Carlton Hotel Company, and was looking forward to the conversation. One of my favorite aspects of writing a book is meeting extraordinary leaders and hearing firsthand how they've achieved such incredible success.

I anticipated a straightforward discussion with Schulze about building culture and embedding values as behavioral norms. However, the conversation took an unexpected turn when he shared a perspective that has stuck with me ever since. “We are currently experiencing a leadership crisis,” Schulze stated. This statement reframed the entire conversation, elevating it from routine to revelatory.

It didn't seem unusual during the interview because I was preoccupied with finishing ...