Wharton Journal

Issue date: 3/26/07 Section: Perspectives

Ambassador John Danilovich recently spoke at Wharton as part of the Leadership Lecture Series and shared his thoughts on leadership and the work he is conducting as CEO of the Millennium Challenge Corporation (MCC). The Ambassador graduated from Stanford University with a bachelor's degree in Political Science, and received a master's degree in International Relations from the University of Southern California. Ambassador Danilovich served on the Board of Directors of the Panama Canal Commission from 1991-1996 and chaired the Commission's Transition Committee prior to the transfer of the Canal to Panama. Ambassador Danilovich also served as Ambassador to the Federative Republic of Brazil from June 2004 to November 2005 and as Ambassador to the Republic of Costa Rica from 2001 through 2004. A native Californian and resident of London for many years, he was active in the international shipping business for over two decades and served as director of companies in the shipping, property, publishing, and investment fields before.

Ambassador Danilovich's credits his life-long passion for world affairs as the primary reason for his success. Ambassador Danilovich currently oversees the MCC, a foreign assistance program establish in 2004 by President Bush to enable some of the world's poorest countries to design and execute programs that reduce poverty. The program is unique in that countries must meet eligibility requirements based on a balanced scorecard approach. Indeed, Ambassador Danilovich believes that aid is most effective when it reinforces good policy decisions, economic freedom, and investment in the country's people. Countries that are accepted into the MCC program develop and execute unique programs that provide for measurable results across two key factors: economic growth and poverty reduction. The programs are maintained and run by the country receiving the aid but audited by the MCC and other third-parties to ensure that progress is being made towards the stated goals.

The challenges that Ambassador Danilovich faces are similar to that of any other start-up organization: establishing processes, staffing the right people, and generating buy-in from key stakeholders. This final challenge may be the most difficult since there are so many stakeholders in the public sector, including Congress, the Secretary of State, the Secretary of Treasury, United States Trade Association, and the public, all who are represented on the MCC's Board of Directors. Ambassador Danilovich indicated that the MCC is foreign aid with accountability - the MCC must use the taxpayer's dollars wisely and must monitor countries that receive aid to ensure that relevant policies are being implemented effectively.

Over the course of his storied career, Ambassador Danilovich has gleaned several important lessons concerning leadership. First and foremost, leadership is about driving innovation. At all levels of an organization, effective leaders must challenge assumptions and learn to think like entrepreneurs, which is a prerequisite for affecting change. Secondly, leadership entails recruiting the best and brightest individuals to your organization. Echoing the words of Professor Michael Useem, effective leaders get the right people on the bus and the wrong people off. Finally, effective leaders focus on results. According to Ambassador Danilovich, leadership is misplaced in the absence of concrete results.

Ambassador Danilovich left the audience with several tips on how to be a better leader no matter in which sector, public or private, you may find yourself. First of all, relationships matter, both personally and professionally, so cultivate your network early in your career. Next, surround yourself with the best minds - and listen to their opinions - but don't neglect your own commercial and entrepreneurial spirit. Third, get involved, jump in head first, and follow your passions. In effect, don't be afraid to "Say Yes" to intriguing opportunities that present themselves, but be strategic in how you make your choices. Lastly, he urged all of us to volunteer; emphasizing that effective leadership is grounded in community service. Ambassador Danilovich has embodied all of these attributes in his own life and has demonstrated his passion for the Millennium Challenge Corporation and the countries he is helping. For more information about the MCC check out the website at www.mcc.gov.

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