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MindSpring Empowering Minds, Unleashing Potential

Asian Leadership Development ConferenceLeading in Turbulent Times

The Power of Unleashing Latent Potential

Bali9 - 13 March 2009

Mohamed Ashraf Iqbal


Outline

• Latent Potential

• Shifting the Performance Curve

• Case Study

• Empowering Minds - Unleashing Potential

• Counter-intuition

• Questions & answers


Latent Potential

•Latent: dormant, untapped, unfulfilled

•Potential: having or showing the capacity to become or develop into something in the future

•Latent Potential: the untapped potential that exist in every organization


The latent potential in us

•Every person has a potential of 100 relative to the self

•At best an organization gets between 40 - 60% of the potential

•The goal is to get people up into the 80% range

•This is when we feel really good20

40

60

80

100H

um

an

Po

ten

tial-O

-Me

ter

Most people operate somewhere in this range.

By empowering our mind and unleashing our potential, we will rise

to here.

This are the people that we refer to as deadwood.


Shifting the performance curve

X_

SD SD

•Lots of focus is on developing the top 10% of the organization

•We get far greater and immediate impact to organizational performance by moving 90% of the people forward than just focusing on the top 10%


Case Study 1

Profiting in a dying business - a study of latent potential


What’s the fastest way to increase sales?


The Situation

---- Brand Share---- Market Share

57.4%

51.2%

42.4%

45.2%

49.1% 49.5%

52.4%50.9%

62.5%

53.2%

43.4% 43.1%

40.1%

34.9%

39.2%

25.3%24.2%

22.8%

17.0%

19.2%

25.0%

20.1%

15.8%

3.1%2.9%

2.4%

3.0%

4.2%

2.8%

1.8%

2.7%

2.0%2.1%

2.0%

1.3% 1.2%

1.0%

1.3%

0.9% 0.9%0.7%

0.3% 0.3%

0.6%0.4% 0.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 2001 Oct 02

Year

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%• Business is in decline for 13 years

• Morale is low

• Pay is stagnant


and the customers had no love for us

2.880

3.304

3.728

4.152

4.576

5.000

Jan-02 Mar-02 May-02 Jul-02 Aug-02 Oct-02 Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Aug-04 Oct-04

SalesAfter Sales

Customer Satisfaction

Index


Profiting in a dying business - a study of latent potential

• Never buck a trend – assume sales will keep dropping

• To increase profitability, stop discounting and maximize margin

• Our strategy - love the customer till the customer loves us


2.880

3.304

3.728

4.152

4.576

5.000

Jan-02 Mar-02 May-02 Jul-02 Aug-02 Oct-02 Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Aug-04 Oct-04

SalesAfter Sales

Loving the customer

Program Launched

This is latent potential:Same people

Same organizationSame products

Different Mindset

GOAL

GOAL


Impact to business

700

715

730

745

760

2002 2003 2004

715

745

760

Sales in Units

$-300

$900

$2,100

$3,300

$4,500

2002 2003 2004

$4,319

$-286$-147

Profit per Unit Sold

$-215,000

$445,573

$1,106,146

$1,766,719

$2,427,292

$3,087,865

2002 2003 2004

$3,087,865

$-213,389$-112,000

Total Profit


Case Study 2

Declining revenue doesn’t mean declining profit


Background of Case Study

• Government Department - privatized in mid 80’s

• 95% of revenue from Government

• Same management team (since 2005)

• No change in pay or pay scales

• Unionized

• No VSS / MSS / Retrenchment

• No consultants

• 2004 highest revenue ever recorded


The power of tapping into latent

potential

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

2004 2005 2006 2007 2008

0.94

0.63

0.35

0.54

1.00

0.87

0.760.70

0.80

1.00

0.760.82

0.73

0.84

1.00

PERFORMANCE INDEXED TO 2004

REVENUE GROSS PROFIT Operating Profit excl OI

This is latent potential:Same people

Same organizationSame products

Different Mindset


Tapping into Latent Potential =

Empowering Minds, Unleashing Potential


Empowering Minds, Unleashing Potential

• We are for more capable and powerful than we believe

• Only we can change our organization’s

• We love winning

"Our worst fear is not that we are inadequate, our deepest fear is that we are powerful beyond measure. It

is our light, not our darkness that most frightens us. We ask ourselves,

'who am I to be so brilliant, gorgeous, talented and fabulous?' Actually, who are we not to be? You are a child of God: Your playing small doesn't serve the world. There is

nothing enlightening about shrinking so that other people won't feel

insecure around you. We were born to make manifest the glory of God

within us. It is not just in some of us, it is in everyone and as we let our own

light shine we unconsciously give other people permission to do the

same. As we are liberated from our own fear, our presence

automatically liberates others."

Marianne Williamson, "A RETURN TO LOVE",


The 5 I’s of Leadership

•Organizations must create a strong sense of purpose at every level.

•Employees want to be relevant and need to understand their relevance

•Create an environment that is constantly changing and challenging

Intention

Inspiration

Imagination

Intuition

Implementation


7 core capabilities

What Constitutes Performance?

Developing and Communicating the

Case for Change

Anchoring into the P&L

Successful Change Strategies

Developing an Accountable and

Effective Organization

Managing for Performance

•The 7 core capabilities that an organization must have at all levels

•Continuously build clarity, create urgency, keep score, engage people, clarify roles & structures and manage for results and people will rise

•Support the rise with performance coaching

Business Performance

Coaching


Counter-intuitioncontrary to intuition or to common-sense expectation

(but often nevertheless true).


Counter-intuition

• Human resource vs human potential

• Performance management vs managing for performance

• Hiring deadwood vs growing deadwood

• The problem is down there vs up there

•How we see things have a great impact on how we act on it.

•Sometimes the answers to situations are counter intuitive.

•Example of simple counter intuition: while companies pay bonuses to reward performance, bonuses have poor correlation to increased performance


Please take advantage by asking all the questions that you have.

Thank you.

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