1933, US President FDR announces the US will leave the gold standard.
“Leaders of change prioritise bold action, seize opportunity, embrace a pragmatic flexible mindset, build a coalition of support and embody resilience and perseverance”
👏 Happy Friday!
On this day, April 19, 1961, 32nd US President Franklin D. Roosevelt (FDR) announced at a press conference that the US would leave the gold standard during the Great Depression. This marked the end of the gold standard era that had helped stabilise the global financial system since the 1870s. In the depths of the Great Depression, FDR’s decision to abandon the gold standard came just a few weeks after his inauguration. The move allowed the Federal Reserve to pump money into the struggling economy by increasing the supply of paper currency. This was intended to fight deflation and stimulate economic growth after years of financial turmoil. The President took the US dollar off the gold standard through the Gold Reserve Act. This invalidated provisions within the Federal Reserve Act that required backing 40% of circulating money with physical gold. Banks were ordered to hand over their privately held gold reserves to the government. FDR took this bold action after years of banking failures, business closures, and soaring unemployment during the Depression’s darkest days. The gold standard had become a straitjacket, preventing the government from acting forcibly to restart economic growth. Decoupling from gold freed policymakers to try new tools to fight the economic crisis. History judges FDR’s departure from the gold standard as a complex and multifaceted decision. While some viewed it as a necessary step to combat the Great Depression, others criticised its long-term effects.
✅ At the press conference, FDR told us, “The whole problem before us is to raise commodity prices. For the last year, the dollar has been shooting up (this was a reference to the depreciating pound sterling), and we decided to quit competition.” The next day, he signed Executive Order 6111, which was a significant regulation that heavily controlled the export and transaction of gold in foreign exchange. At the time, FDR prioritised bold action in times of crisis; he may have thought incremental tweaks were insufficient. Sometimes change leaders must be willing to break from convention and previous constraints. They communicate the urgent need for change by vividly highlighting the unsustainability of the status quo. Change leaders seize the windows of opportunity and act decisively when circumstances create openings for transformational change. They embrace a pragmatic, flexible mindset and adapt strategies as situations evolve. Leaders of change embody resilience and perseverance to navigate obstacles, learn from setbacks, and remain steadfast in pursuing the change vision. Leaders of Change Prioritise Bold Action.
“Leaders of change prioritise bold action, seize opportunity, embrace a pragmatic flexible mindset, build a coalition of support and embody resilience and perseverance”
👉 In today’s rapidly evolving business landscape, the implementation of new technology and artificial intelligence (AI) has become imperative for organisational growth and competitiveness. Leaders spearheading this change and transformation should embrace a pragmatic, flexible growth mindset to effectively navigate the challenges and opportunities presented by technological advancements. The integration of new technology and AI demands a pragmatic approach, as leaders need to realistically assess the organisation’s current capabilities and potential for growth. A flexible mindset enables leaders to pivot and adjust their strategies in response to the dynamic nature of technological change, ensuring that the organisation remains agile and responsive to emerging trends. Moreover, a growth mindset instils a culture of curiosity, experimentation, and resilience, encouraging employees to embrace technological change as an opportunity for learning and professional development.
Pragmatic, flexible thinking is particularly crucial in the context of technological implementation, as it allows leaders to navigate the complexities of change management, address potential resistance, facilitate a smooth transition, and maximise employee adoption. By fostering a growth mindset, leaders inspire a culture of innovation, adaptability, and collaboration, essential qualities for leveraging new technology and AI to drive organisational success.
As leaders, we should embrace the change lessons of history and the wisdom of those who came before us. Take a moment to reflect on your own approach to leading change. Are you prioritising bold action when circumstances demand it? Are you seizing opportunities for change and transformation while remaining pragmatic and flexible as technology and AI evolve?
Further Reading: Change Management Handbook - Leadership of Change Volume 3
Have a fantastic holiday weekend with the ones you love and care for, enjoy some fresh air, exercise, eat, drink and be happy.
Peter consults, speaks, and writes on the Leadership of Change®.
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Peter F Gallagher is a Change Management Global Thought Leader, Guru, Expert, International Speaker, Author and Leadership Alignment Coach.
Listed #1 by leadersHum Top 40 Change Management Gurus You Should Follow in 2022 (Mar 2022).
Ranked #1 Change Management Global Thought Leader: Top 50 Global Thought Leaders and Influencers on Change Management (2023-2022-2021-2020) by Thinkers360.
Listed #15 in the “Top 30” for Global Gurus Leadership (2024) by Global Gurus.
Ranked #1 Business Strategy Global Thought Leader: Top 50 Global Thought Leaders and Influencers on Business Strategy (2022) by Thinkers360.
Ranked #6 Leadership Global Thought Leader: Top 50 Global Thought Leaders and Influencers on Leadership (April 2024) by Thinkers360.
Business Book Ranking
Change Management Behaviour - Leadership of Change® Volume 6, listed among the 50 Books from Thinkers360 Thought Leaders to read in 2022.
Change Management Adoption - Leadership of Change® Volume 5, listed among year-to-date’s (Jul 2021) most popular books on business and technology from Thinkers360 member thought leaders.
Change Management Handbook - Leadership of Change® Volume 3, listed among the 50 Business and Technology Books from Thinkers360 Thought Leaders to read in 2021.
Change Management Pocket Guide - Leadership of Change® Volume 2, ranked within the top 50 Business and Technology Books (Jan 2020) from Thinkers360 Thought Leaders.