Leadership 7th Edition by Andrew DuBrin, Ann Fisher, Andrew DuBrin

Exercise 1

Mellody Hobson's official job title is president of Ariel Capital Management, LLC, a large mutual fund company based in Chicago. Hobson's primary responsibility as president is to help manage the firm, including strategic planning. She joined the firm after graduating from Princeton University in 1991, with a Bachelor of Arts degree in international relations and public policy.
Hobson is much better known for her work as a good-will ambassador for the firm, and a thought leader in encouraging members of the African-American community to invest in mutual funds. Hobson has become a nationally recognized authority on financial literacy and financial education. She was quoted in a magazine as saying, "My dream is of seeing black grandmothers in their bathing suits at the beach, retired comfortably. My dream is that the beach is their option."
She is a regular financial contributor to Good Morning America, and she makes numerous speaking appearances. Hobson is extremely well connected professionally, with people in her network including prominent business people, politicians, actors, and sports figures.
Hobson invests considerable timeand effort into building these connections because they enable her to move smoothly across industry, ethnic, racial, and class settings. Among the many well-known people in her network are John Rogers Jr., the founder of Ariel; Diane Sawyer of Good Morning America; William Lauder, CEO of Estée Lauder; and Barack Obama, U.S. president.
A key lesson Hobson attempted to convey to her followers during the financial crisis of 2008 was not to panic, but instead to take the long-term approach typical of contrarian investors. She told investors that important lessons could be learned from the book Deep Survival by Laurence Gonzales: "When you are fighting for your life, you must hold on to your plan with a gentle grip and be willing to let go." Equally important, "Rigid people are dangerous people." Ariel adopted the tortoise as its company logo, symbolizing the patient, slow approach to accumulating wealth. Hobson decorates her office extensively with tortoise pictures and figurines.
Part of Hobson's public persona is to dress in high fashion, including dangling jewelry and brightly colored high heels. She exudes a warm smile and an optimistic, happy appearance and maintains physical fitness.
In what way might Hobson's celebrity status create conflict with her managerial responsibilities at Ariel?