Katharine Graham was a pioneer, one of the first women to head a major public company. In some ways, pioneers are the best and strongest type of leader, because they are forced to fight against the resistance of the status quo, an effort required in addition to the effort of successfully managing the business itself. On the face of it, her privileged upbringing does not appear to be the source of this inner strength.  After all, how can a pampered childhood full of money and servants prepare you? 

Below the surface, however, her upbringing was a personal struggle; Graham had to deal with a self-absorbed, unloving mother. Agnes Ernst was a poor social climber who used her feminine beauty to land a rich Wall Street financier named Eugene Meyer. Meyer was Jewish and, although Graham claims she never experienced anti-Semitism until Vassar, being half-Jewish must have forced her to understand that she was an outsider of sorts. Outsiders often are the best fighters (because they have to be to survive). 

Graham Battled Her Insecurity and Won

While she loved her husband Phil, he continually belittled her in front of the children and had an affair with a Washington Post employee.  He then committed suicide, which communicated that he would rather be dead than spend any more time with her. Phil’s death could have crushed her spirit, but Graham persevered.  In fact, she agreed to assume the reins as publisher of the Washington Post (NYSE: WPO). She freely admits that she had no financial or business background and being a woman in a man’s world only added to her insecurity.  Yet, when offered $100 million for the paper, she turned it down because she wanted the challenge of running the paper herself.  I liked the symbolism of Truman Capote’s “Black and White Ball,” where Graham was the guest of honor.  As Copote’s biographer put it:

She was arguably the most powerful woman in the country, but still largely unknown outside of Washington. Putting her in the spotlight was also his ultimate act as Pygmalion.  It would symbolize her emergence from her dead husband’s shadow; she would become her own woman before the entire world.

Reluctant Feminist

I liked Graham’s fight against gender bias.  She freely admits that she, herself, was schooled in the old ideology that men were better at a business.  In a 1969 interview with Women’s Wear Daily, Graham stated: “I can’t see a woman as managing editor of a newspaper.” This view changed and she fought tirelessly for women’s rights.  For example, she refused to excuse herself from the dinner table at long-time friend Joe Alsop’s house, even though it was tradition for women to leave so that the men could talk politics. She also began a long friendship with Gloria Steinem and ended up giving her $20,000 to start Ms. Magazine.

Humility

Despite her lack of business experience, she showed great leadership at times.  For example, she hired Ben Bradlee as managing editor in 1965. This was a great choice because he turned out to be the best newspaper editor of his generation.  Part of leadership is being a good judge of character and surrounding yourself with talented people who can do the job (especially when you don’t know how!). 

Courage and Integrity

Her leadership exhibited itself in courageous ways as well.  For example, during the Vietnam War, the Post was debating whether to publish the Pentagon Papers and she made the final decision to publish.  She did so even though the company’s lawyer said he “guessed he wouldn’t” because of the legal liability. Her decision was not only courageous but exhibited  great acumen into the psychology of her editorial employees:

I could tell from the passion of the editors’ views that we were in for big trouble on the editorial floor if we didn’t publish. I well remember [editorial page editor] Phil Geyelin’s response when I said that deciding to publish could destroy the paper. “Yes,” he agreed, “but there’s more than one way to destroy a newspaper.”

Graham realized that not publishing would have destroyed the morale of her editors and she needed to keep them motivated.

The Watergate investigation was another test for Graham and, again, she passed with flying colors.  President Nixon was a vindictive man who kept “enemy lists” and he didn’t like the Post’s coverage of the Watergate break-in.  Henry Kissinger reminded Graham that Nixon was going to easily win reelection and that he planned to “get even with a lot of people after the election.” Despite this threat, Graham was determined to keep investigating: 

The idea of living with that gang in the White House whacking at you for four more years was depressing beyond words. The best we could do while under such siege, I felt, was to keep investigating, to look everywhere for hard evidence, to get the details right, and to report accurately what we found.

She was so intent to uncover the truth that, when members of the Post were subpoenaed by a federal court to reveal their “deep throat” source, Graham was willing to go to jail if necessary to protect the paper’s sources.

Fairness

Lastly, I was impressed with her evenhandedness and bipartisanship.  Although a lifelong Democrat, she was open-minded enough to vote for George Bush instead of Michael Dukakis because she believed that Dukakis was too inexperienced to lead the country. She also had a deep friendship with the Reagans, despite his conservative ideology.   As Graham states:

I consider it the role of the head of a newspaper to be bipartisan and to bring journalists together with people from government.  I think that an easy relationship is constructive and useful for both sides: it helps the publication by opening doors, and provides those who are covered in the news with the knowledge of whom they can suggest ideas to, complain to, or generally deal with.  When people don’t feel easy enough to call, they just sit there grinding their teeth.  I fear unspoken anger.  Especially, people who may disagree on politics must still be able to communicate, and it’s crucial for all of us in the press to listen to all sides.

The ability to listen and be communicate with people on different sides of a controversial issue is the essence of leadership.  It demonstrates to the people underneath you that you are a fair person who deserves respect.  I certainly respect Katharine Graham.

The Post’s Future Under Another Katharine

Two years ago, Barron’s Magazine called the Washington Post “dirt cheap” and worth $900 per share. At the time, the stock traded at $445. Today, with the Washington Post trading even lower at $385, Barron’s valuation suggests that investors who buy the Post now could be in line for more than a double. Whether this investment double occurs may depend on whether current CEO (and Katharine’s son) Don Graham agrees to spin off its Kaplan education division (similar to what McGraw-Hill (NYSE: MHP) plans to do later this year), thereby unlocking Kaplan’s value which currently is hidden under the haze of the Post’s conglomerate structure. So far, Graham is following the advice of former board member Warren Buffett and rejects the idea.

In 2008, Granddaughter Katharine Weymouth became the fifth Graham family member to become publisher of the Washington Post newspaper. One of her first major decisions was to reach outside the organization and snatch executive editor Marcus Brauchli from the Wall Street Journal. Brauchli has been instrumental in cutting costs responsibly and transforming the Post into an Internet savvy media company. Although her first few years have been rocky, Weymouth definitely has the pedigree to succeed. If she is anything like her grandma, she most certainly will.

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