baseball observer can easily detect Joe Torre's people skills. He handles his players deftly while dealing with an exceedingly demanding boss. Through six seasons as the Yankees' manager and four World Series titles, there have been few clubhouse blowups, no Bronx Zoo- like eruptions. He easily expresses love for his players and respect for his opponents.

Torre's management tenets were not learned by watching old videos of Billy Martin kicking dirt on umpires' shoes or pushing Reggie Jackson.

Perhaps his style was always inside him, but he said yesterday that his ability to reach out to people, and his players, was enriched at a four- day seminar in 1995. He was living in Cincinnati, his wife's hometown, after he was fired as the manager of the St. Louis Cardinals.

"My wife was pregnant at the time, and she said she wanted to go to something called Life Success," he said yesterday at a management conference sponsored by Fortune magazine at the Sheraton New York Hotel. "I thought it was about how to be successful. And I said O.K. But this was about the emotional part of success. They dragged things out of me I didn't think possible. I had problems with my dad growing up, but when I finished that seminar, I knew why."

He continued: "I think that helped me deal with people in a better way. I don't react to what players say. They often say things out of frustration. I want to know why they said it."

Three days after losing Game 7 of the World Series to the Arizona Diamondbacks, Torre was dealing with failure by accentuating the positive.

"I don't like to deal with negatives," he said. "I like to look at positives. I won't tell you what you can't do. The opposition will tell you. The pitcher will strike you out. Whatever the contribution — it doesn't have to be a home run, but a guy coming in from the bullpen for one out — it's the person who can apply himself, give of himself, who understands we win as a team."

And lose. The rare blown save and loss in Game 7 by Mariano Rivera had Torre channeling the wisdom of Norman Vincent Peale: "I didn't see it as Mariano Rivera failing. I saw it as Luis Gonzalez succeeding."

He understands failure.

"I hit .360 one year," he said. "I hit .240 one year. I tried. Honest."

He reiterated his post-Game 7 message that he was pleased with the Yankees' effort but disappointed at the result. "We felt the NY on our caps represented the rescue workers at ground zero," he said. "Just because they couldn't find bodies doesn't mean that they've failed."

Torre's managerial success with the Yankees has elevated him to the pantheon of baseball's wise men, and beyond, to the business world. This year, Fortune put him on its cover for an article about how he does what he does from his seat in the dugout.

In New York, his leadership abilities and paternal demeanor make him nearly as respected as Mayor Rudolph W. Giuliani. So it probably was not a surprise that the standing ovation for Torre's arrival at the Leadership in Turbulent Times conference was preceded by solid applause from the seated group for the departure of Helge H. Wehmeier, chief executive of American operations for Bayer, the maker of Cipro, an antibiotic used to treat anthrax.

Wehmeier had discussed crisis management, bioterrorism and smallpox vaccines in a ballroom full of rapt executives.

Here was Torre, a leadership icon, telling tales about Derek Jeter, Mel Stottlemyre, Bernie Williams, Paul O'Neill and Don Zimmer.

Torre understands the dichotomy — and the awe in the voices of audience members eager to ask him about Rivera's nightmare Game 7 or pitching moves by Arizona Manager Bob Brenly. "People talk about my leadership abilities," he said. "But it's all about baseball."

Baseball owners created a leadership challenge of their own on Tuesday by voting, 28-2, to eliminate two teams, with the likely candidates being Montreal and Minnesota.

"I don't know how they're going to do it," Torre said. "But they don't draw in Montreal, and Minnesota is an in-and-out-thing; they can't spend money to compete. You're talking about 80 jobs — two 40-man rosters. I don't know what it means for us."

He added: "I think the owners have expanded to the point of it not working. Some of the teams can't spend money, and it's not fair to the fans. Our fans get their money's worth. It's not a bad idea to cut two teams, but they have to work with the players association, whether it's by adding one player to each team. So it's going to be turbulent."