leadership in the new millennium. “hold on ! you can’t all have the front seat!”
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Leadership In The New
Millennium
“Hold on ! You can’t all have the front seat!”
Most corporations today are overmanaged and underled. This leads to enormous wastage of resources, deep inefficiencies, and unlimited frustration. The challenge for corporations, communities, and countries is to prevent this from happening.
The Simple Truth
… about coping with complexity. Without good management, complex enterprises tend to become chaotic and their existence is threatened. Good management brings about a degree of order and consistency.
Management is …
… about coping with change. The greater the competitive forces around you, and the more volatile the world around you, the more the need for leadership.
Leadership is …
• A peacetime army can usually survive with good administration and management in the ranks, and good leadership at the very top.
• A wartime army needs competent leadership at all levels. You cannot manage people effectively into battle; you must lead them. Business today is a never-ending battle!
War & Peace
Successful companies actively seek out people with leadership potential and expose them to career experiences that will develop that potential.
Building Leaders
Leadership is about maximizing your followers’ well-being, not their comfort.
- Chris Argyris
Long Term Thinking
Develop a leadership
mindset
• The age of progress might have lightened our physical load – but it has numbed our minds and taken our spirit away from work.
• Speed and change are no longer linear or additive.
What Price Progress?
Leadership is about
first thinkingthen decidingfollowed by acting swiftlyand finally, reflecting
Leadership is about
thinking – explorationdeciding – evaluation/selectionacting swiftly – edgereflecting – analysis/introspection
All of the above are intensely intellectual activities.
• To become rich, I have to be miserable.
• To be successful, I have to be unfair to my customers and employees.
• I must dominate to win.
• I must know everything.
• I have to make all the decisions.
Myths About leadership
Great leaders are dreamers
“There is always a dream in all enterprise, but the dream if it lasts, one day becomes a reality” – Jean Monnet [One Europe, One World]
“India must be able to face Britain as an equal nation, and not as a subordinate colony. India could not, and should not, remain a British possession.” – Mahatma Gandhi
The ways in which leaders conduct their lives – their embodiments – must be clearly perceptible by those whom they hope to influence. People who do not practice what they preach are hypocrites, and hypocrisy mutes the effectiveness of their stories.
Real Leaders Are Credible
Sooner or later, nearly all leaders outreach themselves and end up undermining their causes. Indeed, given their larger-than-life status, they are perhaps prone to this hubristic fate. [Tojo, Mussolini, Chiang, Churchill, de Gaulle, Mao, Stalin…]
Leaders do fail
Leadership crisis
•Gillette
•Lucent
•Campbell
•Coca-Cola
•Xerox
•Mattel
•P&G
•Michael Hawley
•Rick McGinn
•Dale Morrison
•Doug Ivestor
•Rick Thoman
•Jill Barad
•Dirk Jager
The paradox of l’ship
Cognitive complexity and ambiguity plague all leaders today. If you are looking for a job description, forget it; you are dead meat.
You have to design your own job specs, review them, and change them as often as required.
Speed is of essence. Yet, calm reflection when in the clutches of competitive gales is the hallmark of successful leaders.
The faster things happen, the slower you need to go.
Gandhi Mandela
Havel Mother Teresa
Martin Luther King
Change doesn’t have to start at the top.
The Activist’s Rule
They possessed no political power, yet each disrupted history.It was passion, not power, that allowed them to do so.
The Activist’s Rule
• LEARN
• EMPATHIZE
• ACT
• DREAM
What it means to lead
YOU!
Leadership is about
Leadership is not something that you do. It is an expression of who you are.
- Kevin Cashman
“We are not certain you have a mandate anymore.”
Differentiate people based on
performance and values
• T1 – Say goodbye now
• T2 – Coach, give a chance
• T3 – Tyrant.Warn – if no change, get rid
• T4 – Make them role models
T3T3 T4T4
T1T1 T2T2
Low VALUES High
High
Low
PE
RF
OR
MA
NC
E
A Leadership Development Model
The GE Way
A B C
The Vitality Curve must be supported by the reward system: salary increases, promotions, and recognition.
Every recommendation for a reward should be associated with a person’s position on the curve.
Differentiation
As should be given raises that are two to three times the size given to the Bs.
Bs should get solid increases recognizing their contributions every year.
Cs should get nothing.
Differentiation
Key GE Leadership Ingredients
“E4”=
• Energy
• Energizer
• Edge
• Execution
Values and Performance Critical to Success
“E4”
Energy =
Enormous Personal Energy - Strong Bias for Action
Key GE Leadership Ingredients
“E4”
Energizer =
Ability to Motivate and Energize Others ... Infectious Enthusiasm to Max Organization Potential
Key GE Leadership Ingredients
“E4”
Edge =
Competitive Spirit ... Instinctive Drive for Speed/Impact ... Strong Convictions and Courageous Advocacy
Key GE Leadership Ingredients
“E4”
Execution =
Deliver Results
Key GE Leadership Ingredients
Key GE Leadership Ingredients
“E4”=
• Energy
• Energizer
• Edge
• Execution
= Passion
The GE Way
A B C
Passion
Name:
Title:
Mos in Position:
Photo
X
Potential
Per
form
ance
GE’s People Factory
+ Great technologist, + Broad, customer connected
+ Business leader potential, (-) Still maturing as a
leader
Green
belt
Name:
Title:
Mos in Position:
PhotoX
Potential
Per
form
ance
+ Tenacious/pit bull, + Great process thinker
+ 7000 foot runway, (-) Wears ambition on sleeve
GE’s People FactoryGre
enbe
lt
Name:
Title:
Mos in Position:
Photo
X
Potential
Per
form
ance
+ Top operational leader, + Phenomenally quick learner
+ Good mentor, (-) Needs More edge
GE’s People FactoryGre
enbe
lt
Name:
Title:
Mos in Position:
PhotoX
Potential
Per
form
ance
+ Bright driven, + Global thinker + Great coach/mentor + Growing into the role, (-) Execution capability
GE’s People FactoryGre
enbe
lt
DISTINCT … OR EXTINCT!
“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”
— Michael Goldhaber, Wired
“Quite frankly, we’ve had so many applicants with attitude, over-qualification,inflated egos and hyper aggressiveness that we are looking for someone without a clue.”
Involve everyone in the future
Assessing your response quotient
Do bosses hide behind their desks when more junior employees present good ideas to them?
Involving Everyone
Taking unnecessary work out of the system
Using the brains of many for the benefit of all
Work-Out
Involving Everyone
Work-Out: the rationale
For all these years, you’ve paid for my hands when you could have had my brain as well – for nothing!
People closest to the work know it best.
Involving Everyone
Work-Out: the rationale Those closest to the work know more about it than
their bosses
The best way of getting these workers to pass on that knowledge to their superiors is to give them more power
In exchange for that power, an employee is expected to assume more responsibility for his or her job.
Involving Everyone
Work-Out: the process
Groups of employees are invited to share their views on the business and the bureaucracy that gets in their way.
Reports, Approvals, Meetings, Policies, and Procedures
Involving Everyone
Work-Out: the process
The manager issues a challenge or outlines a broad agenda and then leaves.
With a facilitator, employees list the problems, debate solutions, and prepare to sell their ideas when the boss returns.
Involving Everyone
Work-Out: the process
The manager has to make on-the-spot decisions on each proposal. Most ideas must receive a Yes/No decision on the spot. Decisions on the rest are required by an agreed-upon date. No proposal can be buried.
Involving Everyone
Work-Out: the outcomeProductivity becomes much higher
Needless and meaningless tasks are eliminated
Workers feel liberated and satisfied at having those tasks done away with.
Involving Everyone
Work-Out: the outcome
It helps create a culture where everyone begins to play a part, where everyone’s ideas begin to count, and where leaders lead, not control. They coach – rather than preach – and they get better results.
Involving Everyone
Work-Out: the steps Choose issues to discuss
Select a suitable cross-functional team
Choose a champion who will see the recommendations through to implementation
Involving Everyone
Work-Out: the steps Let the team meet for a couple of days to
come up with recommendations
Meet with managers who can say ‘yes’ or ‘no’ on the spot, or will get back within an agreed time frame.
Hold implementation meetings
Involving Everyone
Change Effort/PayoffHigh
Low
HardEasy
Jewels High- Hards
Low Hanging Fruit
Drop
E f f o r t
Pay
off
“I am firing all of you. From now on it is me and the nearsighted monkey with a dart.”
Emotional Competencies for leaders
As taught by Dan Goleman
• Articulate and arouse enthusiasm for a shared vision and mission
• Step forward to lead as needed regardless of position
• Guide the performance of others while holding them accountable
• Lead by example
Inspiring and Guiding
The leader is the key source of the organization’s emotional tone. Your excitement can move an entire group in the direction you wish.
Emotionally Competent Leaders
“Leadership is giving energy.”
- Birgitta Wistrand
The emotional tone set by the leader ripples downwards with remarkable precision. The most effective ones are warm and outgoing, emotionally expressive, democratic, and trusting.
The average leader is invisible, while the best ones frequently walk around and strike conversations with their staff.
Emotionally Competent Leaders
Create an environment for
success
Oct
ob
er 2
, 200
0
Fo
rtu
ne’
s M
ost
A
dm
ired
- 2
000
Mar
ch 4
, 200
2
2001 2000 COMPANY INDUSTRY1 1 General Electric Electronics, Electrical Equipment 2 5 Wal-Mart Stores General Merchandisers 3 3 Microsoft Computers, Office Equipment 4 14 Berkshire Hathaway Insurance: P & C (stock) 5 9 Home Depot Specialty Retailers 6 17 Johnson & Johnson Pharmaceuticals 7 74 FedEx Mail, Package, Freight Delivery 8 18 Citigroup Banks: Commercial and Savings 9 4 Intel Semiconductors 10 2 Cisco Systems Network Communications 11 21 Merck Pharmaceuticals 12 20 Pfizer Pharmaceuticals 13 24 United Parcel Service Mail, Package, Freight Delivery 14 N/A Target General Merchandisers 15 26 Procter & Gamble Soaps, Cosmetics 16 61 PepsiCo Beverages 17 40 AOL Time Warner Entertainment 18 60 Anheuser-Busch Beverages 19 35 Exxon Mobil Petroleum Refining 20 15 Coca-Cola Enterprises Beverages 21 34 J.P. Morgan Chase Banks: Commercial and Savings 22 27 American International Group Insurance: P & C (stock) 23 7 Dell Computer Computers, Office Equipment 24 8 Nokia Network Communications 25 10 Toyota Motor Motor Vehicles
2001 2000 COMPANY INDUSTRY26 37 Northwestern Mutual Life Ins. Insurance: Life, Health (stock) 27 62 Walgreen Food & Drug Stores 28 6 Sony Electronics, Electrical Equipment 29 51 Eli Lilly Pharmaceuticals 30 48 Continental Airlines Airlines 31 22 Walt Disney Entertainment 32 52 Bristol-Myers Squibb Pharmaceuticals 33 N/A Duke Energy Energy 34 54 E.I. du Pont de Nemours Chemicals 35 N/A Boeing Aerospace and Defense 36 70 Colgate-Palmolive Soaps, Cosmetics 37 67 Caterpillar Industrial & Farm Equipment 38 N/A Sun Microsystems Computers, Office Equipment 39 39 Nestlé Consumer Food Products 40 46 SBC Communications Telecommunications 41 29 Honda Motor Motor Vehicles 42 N/A Oracle Computers, Office Equipment 43 N/A Deere Industrial & Farm Equipment 44 58 Alcoa Metals 45 33 BP Petroleum Refining 46 19 Ford Motor Motor Vehicles 47 N/A BellSouth Telecommunications 48 N/A Kroger Food & Drug Stores 49 N/A Texas Instruments Semiconductors 50 31 Singapore Airlines Airlines
Attributes of World Class
• Innovativeness
• Quality of management
• Employee talent
• Quality of products /services
• Long-term investment value• Financial soundness• Social responsibility• Use of corporate assets• Global business acumen
Attributes of World Class
Corporate Culture
WORLD CLASS
• Team Work
• Customer Focus
• Fair treatment of employees
• Initiative
• Innovation
AVERAGE
• Minimizing risk
• Respecting the chain of command
• Supporting the boss
• Making budget
Source: Fortune
Vision
Mission
Objectives
Tactics
Processes
Foundation - Values
Transformation to World ClassA SYSTEMS APPROACH
a Performance Measurementb Rewards Managementc Employee Feedbackd Recruitment Practicese People Developmentf Customer Feedbackg Mission and Values Reviewh Quality Consciousness i Continuous Improvement
Strategy
“I wanted to create a company where people dare to try new things - where people feel assured in knowing that only the limits of their creativity and drive, their own standards of personal excellence, will be the ceiling on how far and how fast they move.”
- Jack Welch
Welch on Welch
“If you want to get your ship in shape, practice discipline without formalism. In many businesses, a lot of time and effort are spent on supporting the guy at the top. I’m a low maintenance CO. It’s not about me, it’s about my crew.”
- Cdr. Michael Abrashoff – US Navy
Leadership Lessons
• Be willfully self-contained• Listen without prejudice• Don’t just take command –
communicate purpose• Practice discipline without formalism• Hand out responsibility, not orders• Be devoted, and success will be yours
- Cdr. Michael Abrashoff
Leadership Lessons
1. Hire people more talented than yourself
2. Talented people attract talented people
3. Look for the best in each person
4. Set standards for selection
5. Spend time evaluating and acculturating prospective team members
Getting The Best
As taught by Theodore Roosevelt
6. Do not prolong consideration of people who will not receive a position
7. Ceaselessly search for new talent
8. Ruthlessly replace individuals who do not meet the standards of the enterprise
9. Work with the tools at hand
Getting The Best
As taught by Theodore Roosevelt
Hire and promote: first, on the basis of integrity; second, motivation; third, capacity; fourth, understanding; fifth, knowledge; and last and least, experience.
The New Rules
Without integrity, motivation is dangerous. Without motivation, capacity is impotent. Without capacity, understanding is limited. Without understanding, knowledge is
meaningless. Without knowledge, experience is blind.
The New Rules
The Challenge Ahead
Given the right circumstances, from no
more than dreams, determination, and
the liberty to try, quite ordinary people
consistently do extraordinary things.
The Road Ahead
Let us humans surprise the new
millennium. Let us prepare to face it
with a better and finer understanding
of leadership. Let us develop new
methods and be better citizens of this
world.
Beware The Yes Boss
• HAMLET: Do you see yonder cloud that’s almost in the shape of a camel?
• POLONIUS: By the mass, and ‘tis like a camel, indeed.
• HAMLET: Methinks it is like a weasel.• POLONIUS: It is backed like a weasel.• HAMLET: Or like a whale?• POLONIUS: Very like a whale.
- HAMLET, Act III, Scene 2
“On the contrary Mr. Tischbeim. I don’t think that was a stupid question at all.”
BROUGHT TO YOU BY
SAM SWAMINATHANCenter for Creative Thinking
http://www.ccthinking.com
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