hbr- on leadership 1

04/08/2304/08/23 04:31 AM04:31 AM L E A D E R S H I P L E A D E R S H I P 11

HARVARD BUSINESS HARVARD BUSINESS REVIEWREVIEW

ON LEADERSHIPON LEADERSHIP

Learning from ResearchLearning from Research


Leadership Course at Leadership Course at PAF-KIETPAF-KIET

One of the project assigned to One of the project assigned to students of this course was to give students of this course was to give an oral presentation on a research an oral presentation on a research publication on leadership from HBR.publication on leadership from HBR.

This presentation includes some of This presentation includes some of these presentations. Good effort of these presentations. Good effort of students is appreciated.students is appreciated.


CONTENTSCONTENTSManagers and Leaders“Are they different ? Managers and Leaders“Are they different ? By Abraham Zaleznik. HBR, Jan.2004By Abraham Zaleznik. HBR, Jan.2004Are Leaders Portable?, By Groysberg, Are Leaders Portable?, By Groysberg, Mclean, Nohria.HBR, May.2006Mclean, Nohria.HBR, May.2006The Five Messages Leaders must Manage, The Five Messages Leaders must Manage, By John Mann. HBR, May.2006By John Mann. HBR, May.2006Narcissistic Leaders, By Michael Maccoby. Narcissistic Leaders, By Michael Maccoby. HBR, Jan.2004HBR, Jan.2004Level 5 Leadership, By Jim Collins. HBR, Level 5 Leadership, By Jim Collins. HBR, Jan.2001 Jan.2001


Managers and Managers and LeadersLeaders

Are They Are They Different?Different?

By: Abraham ZaleznikBy: Abraham Zaleznik

Presented by: Maria Presented by: Maria SafdarSafdar


Learning ObjectiveLearning Objective

To understand differences between managers and To understand differences between managers and leaders along four dimensions and to learn how leaders along four dimensions and to learn how companies can develop better leaders.companies can develop better leaders.

Four Dimensions:Four Dimensions:

1.1. Managers Vs Leaders PersonalityManagers Vs Leaders Personality

2.2. Attitudes towards goalsAttitudes towards goals

3.3. Conceptions of workConceptions of work

4.4. Relationship with othersRelationship with others


What Is The Ideal Way To Develop What Is The Ideal Way To Develop Leadership?Leadership?

Managerial leadership unfortunately doesn’t Managerial leadership unfortunately doesn’t necessarily ensure imagination, creativity, or necessarily ensure imagination, creativity, or ethical behavior in guiding the destinies of ethical behavior in guiding the destinies of corporations.corporations.

Leadership requires using power to influence the Leadership requires using power to influence the thoughts of other people.thoughts of other people.


Power & RiskPower & Risk

Power in the hands of individuals entails Power in the hands of individuals entails human risk:human risk:

1.1. The risk of equating power with the ability to get The risk of equating power with the ability to get immediate resultsimmediate results

2.2. The risk of ignoring the many different ways people can The risk of ignoring the many different ways people can legitimately accumulate powerlegitimately accumulate power

3.3. The risk of losing self control in the desire for powerThe risk of losing self control in the desire for power

The development of collective leadership and The development of collective leadership and managerial ethics can hedge these risks.managerial ethics can hedge these risks.


The debate continues!The debate continues!

An inherent conservatism dominates the culture of An inherent conservatism dominates the culture of large organizationslarge organizations

In the second American Revolution, John D. Rocke In the second American Revolution, John D. Rocke Feller III describes the conservatism of organization:Feller III describes the conservatism of organization:

““An organization is the system, with the logic of its own, An organization is the system, with the logic of its own, and all the weight of tradition and inertia. The deck is and all the weight of tradition and inertia. The deck is stacked in favor of the tried and proven way of doing stacked in favor of the tried and proven way of doing things and against the taking of risks and striking out things and against the taking of risks and striking out

in the new directions.”in the new directions.”


Managers Vs. Leaders PersonalityManagers Vs. Leaders Personality

Managerial culture emphasizes:Managerial culture emphasizes:

Rationality and controlRationality and control

Energies are directed towards goals, resources, organization, structures, or Energies are directed towards goals, resources, organization, structures, or peoplepeople

Problem solverProblem solver

Manager Asks, what problems have to be solved? What are the best ways to Manager Asks, what problems have to be solved? What are the best ways to achieve results so that people will continue to contribute to his organization?achieve results so that people will continue to contribute to his organization?

Requires that many people operate efficiently at different levels of status and Requires that many people operate efficiently at different levels of status and responsibilityresponsibility


Managers Vs. Leaders PersonalityManagers Vs. Leaders Personality

It takes neither genius nor heroism to be a manager, but a It takes neither genius nor heroism to be a manager, but a tough mindedness, hard work, intelligence, analytical ability, tough mindedness, hard work, intelligence, analytical ability, and perhaps most important, tolerance, and goodwill.and perhaps most important, tolerance, and goodwill.

From this perspective, leadership is simply a practical effort to From this perspective, leadership is simply a practical effort to direct, and to fulfill his/her taskdirect, and to fulfill his/her task

Another conception of leadership assumes that only great Another conception of leadership assumes that only great people are worthy of the drama of power and politics people are worthy of the drama of power and politics


Three Questions?Three Questions?

Is the leadership mystique merely a holdover from our childhood Is the leadership mystique merely a holdover from our childhood – from a sense of dependency and a longing for good and heroic – from a sense of dependency and a longing for good and heroic parents?parents?

Is this true, no matter how competent managers are, their Is this true, no matter how competent managers are, their leadership stagnates because of their limitations in visualizing leadership stagnates because of their limitations in visualizing purpose and generating value at work?purpose and generating value at work?

Driven by narrow purpose, without an imaginative capacity and Driven by narrow purpose, without an imaginative capacity and the ability to communicate, do managers then perpetuate group the ability to communicate, do managers then perpetuate group conflicts instead of reforming them into broader desires and conflicts instead of reforming them into broader desires and goals?goals?


Attitude Towards GoalsAttitude Towards Goals

Managers tend to adopt Managers tend to adopt impersonal, if not impersonal, if not passive, attitudes toward passive, attitudes toward goals.goals.

Managerial goals arise Managerial goals arise out of necessities rather out of necessities rather than desires and, than desires and, therefore, are deeply therefore, are deeply embedded in their embedded in their organization’s history organization’s history and culture.and culture.


Attitude Towards GoalsAttitude Towards Goals

Leaders are active instead of reactive, shaping ideas Leaders are active instead of reactive, shaping ideas instead of responding to theminstead of responding to them

Leaders adopt a personal and active attitude towards Leaders adopt a personal and active attitude towards goalsgoals

Exert influence in evoking images and expectation, and Exert influence in evoking images and expectation, and in establishing specific desires and objectives determine in establishing specific desires and objectives determine the business directionsthe business directions

The net result of this influence changes the way people The net result of this influence changes the way people think about what is desirable, possible, and necessary. think about what is desirable, possible, and necessary.


Conceptions of workConceptions of work

Managers tend to view work as an enabling process involving Managers tend to view work as an enabling process involving some combination of people and ideas interacting to establish some combination of people and ideas interacting to establish strategies and make decisionsstrategies and make decisions

Help the process along by calculating the interests in Help the process along by calculating the interests in opposition, planning when controversial issues should opposition, planning when controversial issues should surface, and reducing tensionssurface, and reducing tensions

In this enabling process, managers’ tactics appear flexible: on In this enabling process, managers’ tactics appear flexible: on one hand, they negotiate and bargain; on the other, they use one hand, they negotiate and bargain; on the other, they use rewards, punishments, and other forms of coercion.rewards, punishments, and other forms of coercion.



To get people to accept solutions to problems, managers To get people to accept solutions to problems, managers continually need to coordinate and balance opposing views.continually need to coordinate and balance opposing views.

Leaders work in the opposite direction. Leaders work in the opposite direction.

Where managers act to limit choices, Where managers act to limit choices,

Leaders develop fresh approaches to long-standing Leaders develop fresh approaches to long-standing problems and open issues to new options. problems and open issues to new options.

To be effective, leaders must project their ideas onto To be effective, leaders must project their ideas onto images that excite people and only then develop choices images that excite people and only then develop choices that give those images substance.that give those images substance.



Leaders work from high-risk Leaders work from high-risk positions; positions;

1.1. Often disposed to seek out Often disposed to seek out risk and danger, especially risk and danger, especially where the chance of where the chance of opportunityopportunity

2.2. Reward appears promising.Reward appears promising.


Relations with OthersRelations with OthersManagers prefer to work with peopleManagers prefer to work with people

Avoid solitary activity because it makes them Avoid solitary activity because it makes them anxious.anxious.

Need to seek out others with whom to work Need to seek out others with whom to work and collaborateand collaborate

Maintain a low level of emotional Maintain a low level of emotional involvement in those relationshipsinvolvement in those relationships

managers may lack empathy, or the capacity managers may lack empathy, or the capacity to sense intuitively the thoughts and feelings to sense intuitively the thoughts and feelings of othersof others

Empathy is not simply a matter of paying Empathy is not simply a matter of paying attention to other people. It is also the attention to other people. It is also the capacity to take in emotional signals and capacity to take in emotional signals and make them meaningful in a relationship.make them meaningful in a relationship.


Relations with OthersRelations with Others

Managers relate to people according to the role they play in a Managers relate to people according to the role they play in a

sequence of events or in a decision-making processsequence of events or in a decision-making process

While leaders, are concerned with ideas, relate in more While leaders, are concerned with ideas, relate in more

intuitive and empathetic ways. intuitive and empathetic ways.

The distinction is simply between a manager’s attention to The distinction is simply between a manager’s attention to how how

things get done and a leader’s to things get done and a leader’s to what what the events and the events and

decisions mean to participants.decisions mean to participants.



Managers have adopted from game Managers have adopted from game theory the notion that decision-theory the notion that decision-making events can be one of two making events can be one of two types: types:

1.1. Win-lose situation (or zero-sum Win-lose situation (or zero-sum game) game)

2.2. Win-win situation in which Win-win situation in which everybody in the action comes out everybody in the action comes out ahead. ahead.


Decision Of How To Allocate Capital Decision Of How To Allocate Capital ResourcesResources

1.1. Manager focuses others’ Manager focuses others’ attention on procedure and not attention on procedure and not on substanceon substance

2.2. Communicates to subordinates Communicates to subordinates indirectly, using “signals” indirectly, using “signals” instead of “messages.”instead of “messages.”

3.3. Plays for timePlays for time



Leaders referred to with adjectives rich in emotional Leaders referred to with adjectives rich in emotional contentcontent

Attract strong feelings of identity and difference or of Attract strong feelings of identity and difference or of love and hatelove and hate

Human relations in leader-dominated structures often Human relations in leader-dominated structures often appear turbulent, intense, and at times even disorganizedappear turbulent, intense, and at times even disorganized

Such an atmosphere intensifies individual motivation Such an atmosphere intensifies individual motivation and often produces unanticipated outcomesand often produces unanticipated outcomes


Senses of SelfSenses of SelfWilliam James William James Varieties of Religious ExperienceVarieties of Religious Experience, , describes two basic personality types:describes two basic personality types:

Once-born Once-born -- adjustments to life have been straightforward-- adjustments to life have been straightforwardWhose lives have been more or less a peaceful flow since Whose lives have been more or less a peaceful flow since birth.birth.

Twice-born Twice-born -- have not had an easy time of it -- have not had an easy time of itTheir lives are marked by a continual struggle to attain Their lives are marked by a continual struggle to attain some sense of ordersome sense of orderCannot take things for grantedCannot take things for granted


Senses of SelfSenses of SelfFor once-born personality, For once-born personality, the sense of self as a guide the sense of self as a guide to conduct and attitude to conduct and attitude derives from a feeling of derives from a feeling of being at home and in being at home and in harmony with one’s harmony with one’s environmentenvironment

For a twice-born, the sense For a twice-born, the sense of self derives from a of self derives from a feeling of profound feeling of profound separateness.separateness.


Senses of SelfSenses of Self

A manager’s sense of self-worth is enhanced by perpetuating and A manager’s sense of self-worth is enhanced by perpetuating and

strengthening existing institutions: he or she is performing in a strengthening existing institutions: he or she is performing in a

role that harmonizes with ideals of duty and responsibility.role that harmonizes with ideals of duty and responsibility.

Leaders tend to be twice-born personalities, people who feel Leaders tend to be twice-born personalities, people who feel

separate from their environment. separate from their environment.

May work in organizations, but they never belong to them. May work in organizations, but they never belong to them.

Their sense of who they are does not depend on memberships, Their sense of who they are does not depend on memberships,

work roles, or other social indicators of identity.work roles, or other social indicators of identity.


Development Of LeadershipDevelopment Of LeadershipTwo different courses of life history:Two different courses of life history:

1.1. Development through socialization, which prepares the Development through socialization, which prepares the individual to guide institutions and to maintain the individual to guide institutions and to maintain the existing balance of social relations existing balance of social relations

2.2. Development through personal mastery, which impels Development through personal mastery, which impels an individual to struggle for psychological and social an individual to struggle for psychological and social change.change.

Society produces its managerial talent through the first Society produces its managerial talent through the first line of development; leaders emerge through the line of development; leaders emerge through the

second.second.


Development of LeadershipDevelopment of Leadership

Once-borns, make moderate Once-borns, make moderate

identifications with parents and find a identifications with parents and find a

harmony between what they expect and harmony between what they expect and

what they are able to realize from life.what they are able to realize from life.

But suppose the pains of separation are But suppose the pains of separation are

amplified by a combination of parental amplified by a combination of parental

demands and individual needs to the demands and individual needs to the

degree that a sense of isolation, of being degree that a sense of isolation, of being

special, or of wariness disrupts the bonds special, or of wariness disrupts the bonds

that attach children to parents and other that attach children to parents and other

authority figures?authority figures?



The person becomes deeply involved in his or her inner world at the The person becomes deeply involved in his or her inner world at the expense of interest in the outer world. expense of interest in the outer world.

Self-esteem no longer depends solely on positive attachments & real Self-esteem no longer depends solely on positive attachments & real rewards. rewards.

A form of self-reliance takes hold along with expectations of A form of self-reliance takes hold along with expectations of performance and achievement, and perhaps even the desire to do performance and achievement, and perhaps even the desire to do great worksgreat works

Such self-perceptions can come to nothing if the individual’s Such self-perceptions can come to nothing if the individual’s talents are negligible. Even with strong talents, there are no talents are negligible. Even with strong talents, there are no guarantees that achievement will follow, let alone that the guarantees that achievement will follow, let alone that the

end result will be for good rather than evilend result will be for good rather than evil



Managerial personalities form moderate and widely Managerial personalities form moderate and widely distributed attachments.distributed attachments.

Leaders, on the other hand, establish, and also break off, Leaders, on the other hand, establish, and also break off, intensive one-to-one relationships.intensive one-to-one relationships.

It is a common observation that people with great talents It is a common observation that people with great talents are often indifferent studentsare often indifferent students

One-to-one relationships depends on the availability of One-to-one relationships depends on the availability of teachers, possibly parental surrogates, whose strengths teachers, possibly parental surrogates, whose strengths

lie in cultivating talentlie in cultivating talent


Can Organizations Develop Leaders?Can Organizations Develop Leaders?

The myth is that people learn best from their peers. The myth is that people learn best from their peers.

The threat of evaluation and even humiliation recedes in peer relations The threat of evaluation and even humiliation recedes in peer relations because of the tendency for mutual identification and the social restraints because of the tendency for mutual identification and the social restraints on authoritarian behavior among equals. on authoritarian behavior among equals.

Peer training in organizations Peer training in organizations

Task forces made up of peers from several interested occupational groups Task forces made up of peers from several interested occupational groups (sales, production, research, and finance)(sales, production, research, and finance)

As a result, so the theory goes, people interact more freely, listen As a result, so the theory goes, people interact more freely, listen more objectively to criticism and other points of view, and, finally, more objectively to criticism and other points of view, and, finally,

learn from this healthy interchange.learn from this healthy interchange.


Conclusion!Conclusion!In his, Daniel Goleman research at nearly 200 large, global In his, Daniel Goleman research at nearly 200 large, global companies, Goleman found that while the qualities traditionally companies, Goleman found that while the qualities traditionally associated with leadership -- such as intelligence, toughness, associated with leadership -- such as intelligence, toughness, determination, and vision -- are required for success, they are determination, and vision -- are required for success, they are insufficient. insufficient.

Truly effective Truly effective leadersleaders are also distinguished by a high degree of are also distinguished by a high degree of emotional intelligence, which includes:emotional intelligence, which includes:

1.1. Self-awareness,Self-awareness,

2.2. Self-regulation, Self-regulation,

3.3. Motivation,Motivation,

4.4. Empathy, and Empathy, and

5.5. Social skill.Social skill.


Are leader portable Are leader portable

Author of the article Author of the article Groysberg BGroysberg B McLean ANMcLean AN,, Nohria NNohria N

Presented by Presented by Maqsood Ali Maqsood Ali Hafiz Murtaza Hafiz Murtaza


BORIS GROYSBERG BORIS GROYSBERG Assistant Professor Assistant Professor of Business Administration Harvardof Business Administration Harvard

business schoolbusiness school

NITIN NOHRIA is the Richard P. Chapman Professor of Business Administration at Harvard Business School.

BIOGRAPHY OF ARTICLE BIOGRAPHY OF ARTICLE AUTHORSAUTHORS


Learning Objective:Learning Objective:

To appreciate the conditions under which the assets To appreciate the conditions under which the assets an executive has acquired at a previous company an executive has acquired at a previous company can generate value in another organization that can generate value in another organization that

hires him or her.hires him or her.


What is management talent ?What is management talent ?

All management skills an executive has All management skills an executive has acquired,such asacquired,such as

strategic skillsstrategic skills industry knowledge,industry knowledge, relation ship skills relation ship skills general management skillsgeneral management skills company-specific skillscompany-specific skills


Types of human capitalsTypes of human capitalsgeneral management human capitalgeneral management human capital

the skills to gather, cultivate, and deploy financial, technical, the skills to gather, cultivate, and deploy financial, technical, and human resources;and human resources;

strategic human capitalstrategic human capital

individuals' expertise in cost cutting, growth, or cyclical marketsindividuals' expertise in cost cutting, growth, or cyclical markets

industry human capitalindustry human capital

meaning the technical and regulatory knowledge unique to an meaning the technical and regulatory knowledge unique to an industryindustry

relationship human capitalrelationship human capital

the extent to which a manager's effectiveness can be attributed to the extent to which a manager's effectiveness can be attributed to his or her experience working with colleagues or as part of a teamhis or her experience working with colleagues or as part of a team

company-specific human capital company-specific human capital

the knowledge about routines and procedures, corporate culture the knowledge about routines and procedures, corporate culture and informal structures, and systems and processes that are unique and informal structures, and systems and processes that are unique to a company. to a company.


Are leader portable Are leader portable ??Does management talent transfer from one company to another? Does management talent transfer from one company to another?

When a company hires a new executive it gets a bundle of abilities and When a company hires a new executive it gets a bundle of abilities and experiences. Some general management skills such asexperiences. Some general management skills such as setting a vision setting a vision Motivating employeesMotivating employees organizing organizing budgeting budgeting And monitoring performance And monitoring performance

But question arises . . But question arises . .

Do all human capita translate well to the new settings ??????? Do all human capita translate well to the new settings ???????

Will GE executives replicate GE’s success in new org? ? ? ? ?Will GE executives replicate GE’s success in new org? ? ? ? ?

Not always . . . . Not always . . . .

Why ? ? ? ? ? ? ?Why ? ? ? ? ? ? ?

Conventional wisdom holds that a skills those specific to a given Conventional wisdom holds that a skills those specific to a given company, such as knowledge of idiosyncratic processes and company, such as knowledge of idiosyncratic processes and management system don’t transfer as well to the new settings management system don’t transfer as well to the new settings


Now what do you think Now what do you think ??

Should stock prices spike when company hires new CEO from Should stock prices spike when company hires new CEO from renowned company experiencing the drastic growth ?renowned company experiencing the drastic growth ?

The market certainly seems to think so. The market certainly seems to think so.

Stock prices spike when companies announce new CEOs from a Stock prices spike when companies announce new CEOs from a talent generator like General Electric. talent generator like General Electric.

But how do these executives perform over the long run? ? ? ??But how do these executives perform over the long run? ? ? ??

The authors studied the careers of 20 former GE executives who The authors studied the careers of 20 former GE executives who went on to lead other major organizations, with strikingly went on to lead other major organizations, with strikingly uneven results uneven results


Overview of the new CEO’S performance in Overview of the new CEO’S performance in

a new orga new org HIRING

COMPANYCEO’S NAME Return of company

after hiring new CEO

GE Own Company Jeffrey immelt $ 1.1billion profit

3M James Mcnerney $6.5 billion profit

Home depot Robert Nardelli $ 10 billion profit

PRIMEDIA Tom Rogers -30.2%

Intuit Steve Bennett 60.9%

Stanley Works John Trani -10%


Portability of human capitalPortability of human capital NO SKILLS TYPE SKILLS PORTABILITY

1 General management human capital

The skills to gather, cultivate, and deploy financial, technical, and human resources

The most portable

2 Strategic human capital Individuals’ expertise in cost cutting, growth, or cyclical markets;

Highly Portable

3 Industry human capital Technical and regulatory knowledge unique to an industry

Portable

4 Relationship human capital

The extent to which a manager's effectiveness can be attributed to his or her experience working with colleagues or as part of a team

Less Portable

5 Company specific human capital

The knowledge about routines and procedures, corporate culture and informal structures, and systems and processes that are unique to a company

Least Portable


Impact of fit Impact of fit The GE executives' performance as CEOs depended on The GE executives' performance as CEOs depended on whether their new organizations were able to leverage each whether their new organizations were able to leverage each

type of skill. type of skill. Even gifted executives with with the best and most admired Even gifted executives with with the best and most admired

management training don’t necessarily make stare CEO.management training don’t necessarily make stare CEO. The authors' findings challenge the conventional wisdom The authors' findings challenge the conventional wisdom

on human capital, which holds that there are two types of on human capital, which holds that there are two types of skill: skill: general managementgeneral management, which is readily transferable, and , which is readily transferable, and company specificcompany specific, which is not. In fact, they argue, other types of , which is not. In fact, they argue, other types of

management capabilities can contribute significantly to management capabilities can contribute significantly to performance, and company-specific skills can be an asset in a new performance, and company-specific skills can be an asset in a new job job

The type and likely portability of of an executive's skills are better The type and likely portability of of an executive's skills are better indicators of a good matchindicators of a good match


IMPACT OF JOB FIT IMPACT OF JOB FIT We will see how the new individual's skills has impact We will see how the new individual's skills has impact

over the performance of the new orgover the performance of the new org Company experience +ve growth if employees skills Company experience +ve growth if employees skills

match with the org and vise versamatch with the org and vise versa

SKILLS TYPE RETURNS IF Match RETURNC IF NOT Mismatch Stratigic Human Capital 14.1% -39.80%Industry Human Capital 8.80% -29.10%Ralationship Human Capital 15.70% -16.60%Company Specific Human Capital 17.50% -37.70%


Impact of job fit Impact of job fit


Strategic Human Capital and its Strategic Human Capital and its portabilityportability

These skills include These skills include

Individuals’ expertise in cost cutting, growth, or cyclical marketsIndividuals’ expertise in cost cutting, growth, or cyclical markets

Such skills are usually portable type of humane capital other than general Such skills are usually portable type of humane capital other than general management skills management skills

Remember . . . !Remember . . . !

· The strategic skill required to control cost s in the face of fierce price · The strategic skill required to control cost s in the face of fierce price competition are not the same as those required to improve the top line in a competition are not the same as those required to improve the top line in a rapidly growing business or balance investment against cash flow to survive rapidly growing business or balance investment against cash flow to survive in a highly cyclical business in a highly cyclical business

· They won’t offer an advantage if the strategic needs of the company · They won’t offer an advantage if the strategic needs of the company don’t match the manager’s skillsdon’t match the manager’s skills Nine of the 20 executives under studied matches strategic skills.Nine of the 20 executives under studied matches strategic skills. In case of match new organization experience abnormal return of 14.1% while In case of match new organization experience abnormal return of 14.1% while

in case of mismatch returns were –39.8%in case of mismatch returns were –39.8%


Impact of mismatch strategic Impact of mismatch strategic skills skills

Example#1 Example#1 Consider the experience of Paolo Fresco, whose Consider the experience of Paolo Fresco, whose

success spearheading GE's growth into Europe success spearheading GE's growth into Europe did not follow him when he became chairman of did not follow him when he became chairman of Fiat in 1998. Fiat (org) was not cost competitive, Fiat in 1998. Fiat (org) was not cost competitive, and yet Fresco's attention was diverted by and yet Fresco's attention was diverted by investments in technology and Web presence, as investments in technology and Web presence, as well as by acquisitions meant to diversify the well as by acquisitions meant to diversify the company's portfolio. After the carmaker slid into company's portfolio. After the carmaker slid into a protracted liquidity crisis, Fresco and his board a protracted liquidity crisis, Fresco and his board supported a politically explosive plan to divest supported a politically explosive plan to divest Fiat's core automobile business; when that was Fiat's core automobile business; when that was rejected by creditors and shareholders, he rejected by creditors and shareholders, he resigned in 2003. resigned in 2003.


Impact of mismatch strategic Impact of mismatch strategic skillsskills

Example#2Example#2 Consider, too, John Trani, who in 1997 left a long Consider, too, John Trani, who in 1997 left a long

career at GE Plastics for toolmaker and hardware career at GE Plastics for toolmaker and hardware manufacturer Stanley Works. Trani had held GE manufacturer Stanley Works. Trani had held GE Plastics through a long period of extraordinary Plastics through a long period of extraordinary growth. When he joined Stanley Works, the growth. When he joined Stanley Works, the company had emerged from a period of company had emerged from a period of expansion and, with sales flattening, had to shift expansion and, with sales flattening, had to shift its focus to cost control, a type of expertise Trani its focus to cost control, a type of expertise Trani lacked. Three years into his tenure, he delivered lacked. Three years into his tenure, he delivered a -10 percent annualized abnormal return.a -10 percent annualized abnormal return.


Impact of match strategic Impact of match strategic skillsskills

Example#3Example#3 However, knowing how and where to cut was However, knowing how and where to cut was

clearly a plus for Carlos Ghosn, who is not a GE clearly a plus for Carlos Ghosn, who is not a GE alumnus but is one of the cases we teach on a alumnus but is one of the cases we teach on a new CEO widely known for transforming the new CEO widely known for transforming the nearly bankrupt Japanese auto manufacturer nearly bankrupt Japanese auto manufacturer Nissan into one of the world's most successful Nissan into one of the world's most successful car manufacturers. Having previously turned car manufacturers. Having previously turned around Michelin operations in Brazil and around Michelin operations in Brazil and overseen the integration of the Goodrich-overseen the integration of the Goodrich-Uniroyal acquisition, Ghosn earned the Uniroyal acquisition, Ghosn earned the nickname "nickname "lele cost killer" for his role in the cost killer" for his role in the Renault turnaround. Renault turnaround.


Relationship human capitalRelationship human capitalRelationship human capitalRelationship human capital, is the extent to which a , is the extent to which a

manager's effectiveness can be attributed to his or her manager's effectiveness can be attributed to his or her experience working with colleagues or as part of a experience working with colleagues or as part of a team.team.

Such skills overlap with company specific skills in that Such skills overlap with company specific skills in that key relationships often come from a company key relationships often come from a company experience experience

This study looked at the effect of bringing along a team This study looked at the effect of bringing along a team of former colleagues on subsequent performance . of former colleagues on subsequent performance .

We found that GE executive fared better when they could We found that GE executive fared better when they could bring in other GE alumni bring in other GE alumni

Company that hired team of three or more GE executives Company that hired team of three or more GE executives showed annualized abnormal returns of 15.7%, while showed annualized abnormal returns of 15.7%, while those that hired just one achieved annualized those that hired just one achieved annualized abnormal returns of -16.6%abnormal returns of -16.6%


Relationship human capitalRelationship human capital

Example #1 when lee Iacocca joined Example #1 when lee Iacocca joined Chrysler in 1978,he was able to hand Chrysler in 1978,he was able to hand pick a staff that could help him carry pick a staff that could help him carry out a high-risk turnaround of a nearly out a high-risk turnaround of a nearly bankrupt company. in first four bankrupt company. in first four years, to help him tackle Chrysler's years, to help him tackle Chrysler's financial, organizational.financial, organizational.


Relationship human capitalRelationship human capital

• Example#2 Example#2 • Intuit’s Bennett brought several former Intuit’s Bennett brought several former

GE colleagues to his new employer. If he GE colleagues to his new employer. If he had been unable to fill positions with had been unable to fill positions with highly capable people known to him, highly capable people known to him, retirement of long time and stock-retirement of long time and stock-wealthy departing intuit employees wealthy departing intuit employees could have proved operationally could have proved operationally divestingdivesting


Industry human capitalIndustry human capitalMost managers operate under constraints that are Most managers operate under constraints that are particular to an industry, such as regulatory particular to an industry, such as regulatory supervision in the food, drug, and utility business supervision in the food, drug, and utility business or the deeply competitive nature of the consumer or the deeply competitive nature of the consumer goods business. So we ere not surprised to find goods business. So we ere not surprised to find that relevant industry experience had a positive that relevant industry experience had a positive impact on perform in a new job, but that these skill impact on perform in a new job, but that these skill didn’t transfer to a new industry.didn’t transfer to a new industry.In cases where a GE executive moved into an In cases where a GE executive moved into an industry similar to the one that had formed the industry similar to the one that had formed the core of his experience at GE, his new company core of his experience at GE, his new company generated annualized abnormal returns of 8.8%, generated annualized abnormal returns of 8.8%, when the executive moved into a very different when the executive moved into a very different industry relative to his experience, his company industry relative to his experience, his company generated annualized abnormal returns of –29.1% generated annualized abnormal returns of –29.1%


Industry human capitalIndustry human capital

Industry expertise also includes relationships with Industry expertise also includes relationships with customers, supplier, regulators, and even competitors customers, supplier, regulators, and even competitors that can confer and advantage. that can confer and advantage. In 1989 general dynamics, one of GE”s major In 1989 general dynamics, one of GE”s major customers, announced the hiring of William enders, customers, announced the hiring of William enders, former general manager of GE aircraft equipment as former general manager of GE aircraft equipment as vice chairman and subsequently chairman and CEO. vice chairman and subsequently chairman and CEO. At the time the F-22 program then an estimated $67 At the time the F-22 program then an estimated $67 billion project to develop the successor for General billion project to develop the successor for General Dynamics' highly profitable F-16 was facing ill favor in Dynamics' highly profitable F-16 was facing ill favor in congress over costs. congress over costs. Entering a new industry, by contrast, often entails a Entering a new industry, by contrast, often entails a steep learning curve a factor companies in crisis steep learning curve a factor companies in crisis should keep in mind in the hiring process.should keep in mind in the hiring process.


Company specific human Company specific human capitalcapital

The knowledge about routines and The knowledge about routines and procedures, corporate culture and procedures, corporate culture and informal structures, and systems and informal structures, and systems and processes those are unique to a processes those are unique to a company.company.

In this regard the analyst also carried In this regard the analyst also carried out the research about 20 companies out the research about 20 companies in which 10 executives , which match in which 10 executives , which match the above, mention the above, mention


Company specific human Company specific human capitalcapital

When star executives switch companies, When star executives switch companies, they leave an environment in which their they leave an environment in which their skill sets allow them to be effective. The skill sets allow them to be effective. The more closely the new environment matches more closely the new environment matches the old, the greater the likelihood of the old, the greater the likelihood of success in the new position. success in the new position.

Qualities and characteristics but there Qualities and characteristics but there annualized abnormal returns of 17.5% while annualized abnormal returns of 17.5% while the other ten, those with a lesser degree of the other ten, those with a lesser degree of fit (match), showed annualized abnormal fit (match), showed annualized abnormal returns of –37.7%.returns of –37.7%.


Skill typeSkill type Transferable whenTransferable when ExampleExample

Strategic: Strategic: expertise in cost cutting expertise in cost cutting

growth, or cyclical growth, or cyclical marketsmarkets

Your company’s strategic Your company’s strategic needs match the new needs match the new executive’s skillsexecutive’s skills

Entrepreneurial, laid-back software maker intuit wanted to Entrepreneurial, laid-back software maker intuit wanted to improve margins and top-line growth. It hired Steven improve margins and top-line growth. It hired Steven Bennett, who had launched new business at GE Bennett Bennett, who had launched new business at GE Bennett refocused intuit on creating new products scoring double refocused intuit on creating new products scoring double digit revenue growth in his first year.digit revenue growth in his first year.

Industry: Industry: technical and regulatory technical and regulatory

knowledge unique knowledge unique to an industryto an industry

Your company need Your company need strategic relationships strategic relationships with other industry with other industry players or familiarity players or familiarity with industry with industry customerscustomers

As vice president of IBM’s Microelectronics semiconductor As vice president of IBM’s Microelectronics semiconductor Products ‘Christine kind established the division as a Products ‘Christine kind established the division as a dominant manufacturer of applicatio0n specific integrated dominant manufacturer of applicatio0n specific integrated circuits. When circuits. When

AMI semiconductor lured her away in 2001; the company AMI semiconductor lured her away in 2001; the company specifically cited her outstanding relationship with specifically cited her outstanding relationship with customers as tremendous assets for AMIS.customers as tremendous assets for AMIS.

Relationship: Relationship: ProductivityProductivity deriving from deriving from

participation in participation in teamsteams

You can bring one or more You can bring one or more of the new executive’s of the new executive’s former teammates on former teammates on board as wellboard as well

Intuit’s Bennett brought several former GE colleagues to his new Intuit’s Bennett brought several former GE colleagues to his new employer. If he had been unable to fill positions with highly employer. If he had been unable to fill positions with highly capable people known to him, retirement of long time and capable people known to him, retirement of long time and stock-wealthy departing intuit employees could have proved stock-wealthy departing intuit employees could have proved operationally divestingoperationally divesting

Company specific : Company specific : knowledge of knowledge of idiosyncratic idiosyncratic processes and processes and management management systemssystems

A great degree of similarity A great degree of similarity exists between the exists between the systems and culture of systems and culture of the new executives the new executives former setting and former setting and those of your companythose of your company

When James McNerney left GE for 3M, he took advantage of a When James McNerney left GE for 3M, he took advantage of a high cultural match between the two companies to institute high cultural match between the two companies to institute certain GE practices that were new to 3M- including growth certain GE practices that were new to 3M- including growth through acquisition, rigorous cost control, a leadership through acquisition, rigorous cost control, a leadership development institute, and a performance-based pay development institute, and a performance-based pay structure.structure.


THE FIVE MESSAGES, THE FIVE MESSAGES, LEADERS MUST MANAGELEADERS MUST MANAGE

(By: John Hamm)(By: John Hamm)

Presented by: Burhan MinhajPresented by: Burhan Minhaj

Reg.No # 2042Reg.No # 2042


John HammJohn Hamm

General partner at VSP capital in San Francisco.General partner at VSP capital in San Francisco.

The author of “ why entrepreneurs Don’t Scale in The author of “ why entrepreneurs Don’t Scale in Dec-2002.Dec-2002.

Led a CEO in Bay area for four years.Led a CEO in Bay area for four years.


IntroductionIntroductionReal job of a leader is to inspire, support the Real job of a leader is to inspire, support the organizations collective responsibilities and to take organizations collective responsibilities and to take responsibility for creating a better future. To believe in responsibility for creating a better future. To believe in effective communication is a leader’s single most effective communication is a leader’s single most critical management tool for making this happenscritical management tool for making this happens

Leaders job is to deliver the messages to the team Leaders job is to deliver the messages to the team members and don’t make things unclear for the members and don’t make things unclear for the employees.employees.

When a leader defines what he/she really means and When a leader defines what he/she really means and sets a clear direction according to that direction, sets a clear direction according to that direction, relationship and feedback improve, action is more relationship and feedback improve, action is more efficient and on-strategy and improved performance efficient and on-strategy and improved performance follows.follows.


JOB OF LEADERJOB OF LEADER

If team members do not speak with each other that If team members do not speak with each other that makes many things hidden and as a result the effective makes many things hidden and as a result the effective results would not be more there because without clear results would not be more there because without clear definitions and directions from top.definitions and directions from top.

Different CEO’s have different approaches for Different CEO’s have different approaches for management.management.

In this article leader are compared with a skilled full train In this article leader are compared with a skilled full train driver. driver. ExpExp: organization compared with train.: organization compared with train.

Most managers loose their grip from the lever and train Most managers loose their grip from the lever and train runs away.runs away.


THE MESSAGETHE MESSAGE

According to the article, According to the article, fivefive messages have been defined messages have been defined by explaining them with the by explaining them with the moving train compared with moving train compared with organization that if all the organization that if all the levers (messages) is well levers (messages) is well aligned then train will aligned then train will smoothly move forward and smoothly move forward and will be joy for both driver and will be joy for both driver and passengers.passengers.


THE MESSAGETHE MESSAGE

Talent wins games, but teamwork and Talent wins games, but teamwork and intelligence wins championships." intelligence wins championships." ----Michael JordanMichael Jordan


FIVE MESSAGESFIVE MESSAGES

1.1. Organizational structure and hierarchyOrganizational structure and hierarchy

2.2. Financial ResultsFinancial Results

3.3. The leader’s Sense of His/her JobThe leader’s Sense of His/her Job

4.4. Time ManagementTime Management

5.5. Corporate CultureCorporate Culture


Organizational structure and Organizational structure and HierarchyHierarchy


STRUCTURESTRUCTURE

The organization chart because it represents The organization chart because it represents the individual power and influence and it is an the individual power and influence and it is an emotionally charged framework even during a emotionally charged framework even during a company’s most stable times.company’s most stable times.

But when the corporate structure is changing, But when the corporate structure is changing, the organization chart truly become fearsome, the organization chart truly become fearsome, particularly in companies where because of the particularly in companies where because of the political structure, employees worry about risk political structure, employees worry about risk to their personal status.to their personal status.

A leader who quickly takes charge of the A leader who quickly takes charge of the communication around reorganization can communication around reorganization can prevent the discourse from engendering fear.prevent the discourse from engendering fear.


STRUCTURESTRUCTURELeader will have to always prevent political fears from taking Leader will have to always prevent political fears from taking hold for the organization up to the point, rather than viewing hold for the organization up to the point, rather than viewing the organizational structure as a source of anxiety.the organizational structure as a source of anxiety.

Example:Example:

Carly Fironia decided that HP needed a top-to-bottom Carly Fironia decided that HP needed a top-to-bottom reshuffling and communicated her idea to the senior reshuffling and communicated her idea to the senior managers only.managers only.

Drawbacks:Drawbacks:Employees were kept in dark.Employees were kept in dark.Motivation factor plummet.Motivation factor plummet.Work slows down and contracts gone by full quarter of a year Work slows down and contracts gone by full quarter of a year hence lost the revenues.hence lost the revenues.If she had communicated her plan effectively to members If she had communicated her plan effectively to members then HP would had gained better understanding of the then HP would had gained better understanding of the process.process.


A VIEW POINTA VIEW POINT

What Cary Florina Did?What Cary Florina Did? What Cary Florina should Do?What Cary Florina should Do?

Reorganized for Reorganized for

improvementimprovement

Reorganized for improvement Reorganized for improvement

and enhancing employees and enhancing employees

empowermentempowerment

Discuss the issue with senior Discuss the issue with senior

mangersmangers

Discuss the issue with all Discuss the issue with all

employees (don’t kept anything employees (don’t kept anything

in dark)in dark)

Made her decisions at its Made her decisions at its

ownown

Made decisions by involving the Made decisions by involving the

employees’ suggestions.employees’ suggestions.


FINANCIAL RESULTSFINANCIAL RESULTS


FALLACY OF RESULTSFALLACY OF RESULTS

Results is another powerful concept that left unmanaged.Results is another powerful concept that left unmanaged.

Top managers always focused on the promised results.Top managers always focused on the promised results.

Do whatever to meet the results.Do whatever to meet the results.

Focusing on the results, leaders miss out the opportunities Focusing on the results, leaders miss out the opportunities to learn.to learn.

Myth: meet short term results by any mean.Myth: meet short term results by any mean.

Focusing on results demotivates the employees working for Focusing on results demotivates the employees working for that project.that project.


FALLACY OF RESULTSFALLACY OF RESULTS

Achieving results will be a joy for short term only.Achieving results will be a joy for short term only.

Effective leaders ;look short term results as an Effective leaders ;look short term results as an opportunity of long term improvement, i.e. by using opportunity of long term improvement, i.e. by using results as a diagnostic tool for future execution by results as a diagnostic tool for future execution by asking employees to participate.asking employees to participate.

When firm misses the short term results then When firm misses the short term results then management lists the entire pitfall for that.management lists the entire pitfall for that.

That results in quality control for that.That results in quality control for that.

Communication channel will be more frank and Communication channel will be more frank and employees will give more possible feedbacks.employees will give more possible feedbacks.


The Leader’s Sense of The Leader’s Sense of His/her JobHis/her Job

Effective leaders by contrast understand that their role is to Effective leaders by contrast understand that their role is to bring out the answers in others.bring out the answers in others.

They do this by very clearly and explicitly seeking They do this by very clearly and explicitly seeking contributions, challenges and collaboration of people who contributions, challenges and collaboration of people who report to them by using their positional power not to report to them by using their positional power not to dominate but rather to drive the decision making process.dominate but rather to drive the decision making process.

The more collaboration and political the process will be, the The more collaboration and political the process will be, the less isolated the leader and the greater likelihood that less isolated the leader and the greater likelihood that business strategy would be and greater the likelihood that business strategy would be and greater the likelihood that business strategy will grounded in realitybusiness strategy will grounded in reality


TIME ManagementTIME Management


FALLACY OF TIME FALLACY OF TIME MANAGEMENTMANAGEMENT

Every executive feels that time is in short supply.Every executive feels that time is in short supply.

Obsessed with deadlines, manager’s struggle against Obsessed with deadlines, manager’s struggle against constraints by trying to squeeze, manipulate and control constraints by trying to squeeze, manipulate and control limited hours in the day.limited hours in the day.

A leader who harps on time constraints and breathes A leader who harps on time constraints and breathes down mangers necks, trying to get them to do too much down mangers necks, trying to get them to do too much in the located time framein the located time frame

Leaders who communicate when time are tight, it’s Leaders who communicate when time are tight, it’s better to do the fewer things but do them properly.better to do the fewer things but do them properly.


COVEY’S MODELCOVEY’S MODEL


COVEY’S MODELCOVEY’S MODEL

That ultimately results in effective output and That ultimately results in effective output and gives confidence to the mangers that whatever gives confidence to the mangers that whatever they have achieved within allotted time frame is they have achieved within allotted time frame is their best practices output.their best practices output.

If time is short then leaders would have to make If time is short then leaders would have to make decisions on objects and to accomplish that task decisions on objects and to accomplish that task that is of high importance with effective results.that is of high importance with effective results.

Time short-prioritize objects. Never go to do all Time short-prioritize objects. Never go to do all Objects accomplishment.Objects accomplishment.

Exp: Mark King. Time constraints, can’t ask for Exp: Mark King. Time constraints, can’t ask for more time, remains in the allotted time, manage more time, remains in the allotted time, manage

objects, objects, so it is better to change the goals of a project and so it is better to change the goals of a project and prioritize the tasks.prioritize the tasks.


DELEGATEDELEGATE84 great things84 great things

Seven direct reports and three important task Seven direct reports and three important task for each reports makes 84 total for the four for each reports makes 84 total for the four quarters. quarters.

(7 (7 xx 3 =21 3 =21 xx 4 = 84) 4 = 84)

Work on theses 84 reports and tries to do the Work on theses 84 reports and tries to do the 8585thth one also. one also.

To keep people track, leaders must To keep people track, leaders must communicate with its members and set goals communicate with its members and set goals for the objects priority.for the objects priority.


Corporate CultureCorporate CultureCulture is not created, but derives from Culture is not created, but derives from expectations, beliefs, actions of its expectations, beliefs, actions of its members.members.

Culture that encourages performances, if Culture that encourages performances, if you hire right people and implement you hire right people and implement process that will allow the company to process that will allow the company to win in the marketplace.win in the marketplace.

CEO fails to define success and CEO fails to define success and communicate that vision to employees communicate that vision to employees the results would be meaningless.the results would be meaningless.


MODEL- CULTUREMODEL- CULTURE


GOOD CULTUREGOOD CULTURE

A healthy culture is created and maintained by A healthy culture is created and maintained by focusing on right goals and creating the experience of focusing on right goals and creating the experience of wining in marketplace.wining in marketplace.

Spirit of the company is the valuable commitment of its Spirit of the company is the valuable commitment of its employees for success.employees for success.

Companies with healthy culture employees aren’t kept Companies with healthy culture employees aren’t kept in dark but are supported with a belief that they are in dark but are supported with a belief that they are the valuable part of the firm.the valuable part of the firm.

A good culture reflects that every individual knows A good culture reflects that every individual knows their tasks to contribute in future.their tasks to contribute in future.


ROOM FOR COO?ROOM FOR COO?

Example:Example:CEO fed culture to employees with the CEO fed culture to employees with the

help of help of Chief Cultural Officer Chief Cultural Officer with with an aim of employee high morale, an aim of employee high morale, attitude, and teamwork and attitude, and teamwork and empowering them, although results empowering them, although results might not achieved but employees’ might not achieved but employees’ determination will be more towards determination will be more towards the firm.the firm.


FOOD FOR THOUGHTFOOD FOR THOUGHTMESSAGEMESSAGE CONVENTIONAL CONVENTIONAL

MENTAL MODELMENTAL MODELTRY THISTRY THIS

Organizational Organizational

structure and structure and

hierarchyhierarchy

Make the org chart a proxy for Make the org chart a proxy for

politicspoliticsOptimize human resourcesOptimize human resources

Financial resultsFinancial results Penalize misses, Blame someonePenalize misses, Blame someone Perform a diagnostic to determine Perform a diagnostic to determine

the root cause of any shortfallsthe root cause of any shortfalls

The leader’s sense The leader’s sense

of his or her jobof his or her jobThe boss has answersThe boss has answers Everyone has answers – ask Everyone has answers – ask

questions.questions.

Time managementTime management Time is scarce so scramble against Time is scarce so scramble against

constraintsconstraintsTime is fixed, so choose wisely Time is fixed, so choose wisely

within constraintswithin constraints

Corporate cultureCorporate culture Hand the responsibility to HRHand the responsibility to HR Create an environment in which Create an environment in which

everyone can help the team win.everyone can help the team win.


CONCLUSIONCONCLUSION

Power of clear communication is really a game Power of clear communication is really a game of leverage. A CEO who communicate with his of leverage. A CEO who communicate with his employees all the time have a drastic results employees all the time have a drastic results in the sense of employees commitment and in the sense of employees commitment and energy in clear, well understood, shared energy in clear, well understood, shared vision of the company’s real goals, priorities vision of the company’s real goals, priorities and opportunities then the results will and opportunities then the results will automatically be achieved effectively and automatically be achieved effectively and efficiently. Leader must mange these efficiently. Leader must mange these 55 Messages in the firm in order to be best of all Messages in the firm in order to be best of all competitors.competitors.


Presented Presented by:by:

Sanam HakimSanam Hakim


Introduction of authorIntroduction of author

What are narcissistic leaders?What are narcissistic leaders?

Characteristics of narcissistic leadersCharacteristics of narcissistic leaders

Types of narcissism Types of narcissism

Sigmund Freud’s three main personality Sigmund Freud’s three main personality typestypes

Strengths & weaknesses of narcissistic Strengths & weaknesses of narcissistic leadersleaders

Working for narcissist Working for narcissist

conclusionconclusion


Michael Maccoby is an anthropologist &a Michael Maccoby is an anthropologist &a psychoanalyst. He is also the founder and psychoanalyst. He is also the founder and president of maccoby group, a president of maccoby group, a management consultancy in Washington management consultancy in Washington DC, &was formerly director of program on DC, &was formerly director of program on technology, public policy & human technology, public policy & human development at Harvard university’s development at Harvard university’s Kennedy school of government in Kennedy school of government in Cambridge, Massachusetts. This article Cambridge, Massachusetts. This article was the basis for the book the productive was the basis for the book the productive narcissist: the promise & peril of visionary narcissist: the promise & peril of visionary leadership.leadership.


Skilled oratorsSkilled orators

Creative strategistsCreative strategists

Have visionHave vision

Ability to:Ability to:• attractattract• Inspire Inspire


IndependentIndependent

Not easily impressedNot easily impressed

InnovatorsInnovators

Makers & shapers of public agendasMakers & shapers of public agendas

VisionaryVisionary

CharismaticCharismatic


Narcissism can be extraordinarily useful Narcissism can be extraordinarily useful even necessary. According to Freud “we even necessary. According to Freud “we all are somewhat narcissists”all are somewhat narcissists”

ProductiveProductive– Risk takersRisk takers– Have broader visionHave broader vision– Extremely sensitive to criticismExtremely sensitive to criticism– Gifted and creative strategistsGifted and creative strategists– charmerscharmers


UnproductiveUnproductive

– Lack of self knowledgeLack of self knowledge– Over confidence in owns planOver confidence in owns plan– Unrealistic dreamersUnrealistic dreamers– Emotionally isolatedEmotionally isolated– Highly distrustfulHighly distrustful


Freud recognize that there are three Freud recognize that there are three mainmain

types of personalities:types of personalities:

EroticErotic

ObsessiveObsessive

NarcissisticNarcissistic

Most of us have elements of all three.Most of us have elements of all three.


According to Freud erotic's are:According to Freud erotic's are:

outer-directed peopleouter-directed people

caring caring

SupportiveSupportive

Avoid conflictsAvoid conflicts

Helpers at worksHelpers at works

Many erotic's are teachers, nurses, Many erotic's are teachers, nurses, and social workers.and social workers.


According to Freud obsessive's are:According to Freud obsessive's are:

Inner directedInner directed

Self reliantSelf reliant

ConscientiousConscientious

Good listenersGood listeners

Find win-win opportunitiesFind win-win opportunities

Resolve conflictsResolve conflicts


It’s the third personality type.It’s the third personality type.

IndependentIndependent

Not easily impressedNot easily impressed

InnovatorsInnovators

Wanted to gain power & gloryWanted to gain power & glory

Wanted to learn everything about everythingWanted to learn everything about everything

Wanted to be admiredWanted to be admired


Great vision:Great vision:

George Bernard Shaw says, some people George Bernard Shaw says, some people see things, and they say “why?”, see things, and they say “why?”, narcissistic dream things that they never narcissistic dream things that they never were and say, “why not?”were and say, “why not?”

Scores of followers Scores of followers

They are skillful orators which make them They are skillful orators which make them charismatic. they need affirmation from charismatic. they need affirmation from their followers.their followers.


They are not comfortable with their They are not comfortable with their own emotions.own emotions.

Sensitive to criticism:Sensitive to criticism:

Extraordinary sensitive Extraordinary sensitive

Poor listenersPoor listeners

Lack of empathyLack of empathy


Here are few tips on how to survive with a Here are few tips on how to survive with a narcissistic bossnarcissistic boss

1.1.Always empathizes with your boss’s Always empathizes with your boss’s feeling, but do not expect any empathy feeling, but do not expect any empathy back.back.

2.2.Give your boss ideas but always let him Give your boss ideas but always let him take the credit for them.take the credit for them.

3.3.Narcissistic leaders feel free to call you at Narcissistic leaders feel free to call you at any time of the day or night make yourself any time of the day or night make yourself available.available.


More and more large corporations More and more large corporations are getting into bed with narcissistic are getting into bed with narcissistic they are finding that there is no they are finding that there is no substitute for narcissistic leaders in substitute for narcissistic leaders in an age off innovation.an age off innovation.


LEVEL LEVEL 55 LEADERSHIP LEADERSHIP The Triumph Of Humility And The Triumph Of Humility And

Fierce ResolveFierce Resolve

by Jim Collinsby Jim Collins

Presented by:Presented by:

Sadia Aslam SoomroSadia Aslam SoomroAsha chandwaniAsha chandwani


Introduction to Author:Introduction to Author:Jim Collins is a student and teacher of enduring greatJim Collins is a student and teacher of enduring greatcompanies –how they grow, how they attain superiorcompanies –how they grow, how they attain superiorperformance, and how good companies can become greatperformance, and how good companies can become greatcompanies. companies. Having invested over a decade of research into the topic, Jim has authored or co-authoredHaving invested over a decade of research into the topic, Jim has authored or co-authoredfour books, including the classic four books, including the classic BUILT TO LASTBUILT TO LAST, a fixture on the Business Week best seller, a fixture on the Business Week best sellerlist for more than six years, and has been translated into 29 languages. list for more than six years, and has been translated into 29 languages.

Jim’s most recent book, Jim’s most recent book, GOOD TO GREATGOOD TO GREAT: Why Some Companies Make the Leap … And: Why Some Companies Make the Leap … AndOthers Don’t attained long-running positions on the New York Times, Wall Street JournalOthers Don’t attained long-running positions on the New York Times, Wall Street Journaland Business Week best seller lists, has sold 3 million hardcover copies since publicationand Business Week best seller lists, has sold 3 million hardcover copies since publicationand has been translated into 35 languages .and has been translated into 35 languages .

Jim began his research and teaching career on the faculty at Stanford Graduate School ofJim began his research and teaching career on the faculty at Stanford Graduate School ofBusiness, where he received the Distinguished Teaching Award in 1992. Business, where he received the Distinguished Teaching Award in 1992.

In 1995, he founded a management laboratory in Boulder, Colorado, where he now conductsIn 1995, he founded a management laboratory in Boulder, Colorado, where he now conductsresearch and teaches executives from the corporate and social sectors. research and teaches executives from the corporate and social sectors.

Jim holds degrees in business administration and mathematical sciences from StanfordJim holds degrees in business administration and mathematical sciences from StanfordUniversity, and honorary doctoral degrees from the University of Colorado and the Peter F.University, and honorary doctoral degrees from the University of Colorado and the Peter F.Drucker Graduate School of Management at Claremont Graduate University. Drucker Graduate School of Management at Claremont Graduate University.


"The first responsibility of a leader is to define "The first responsibility of a leader is to define reality. The last is to say thank you. In reality. The last is to say thank you. In

between, the leader is a servant." between, the leader is a servant."

--Max De PreeMax De Pree, "Leadership Is an Art", "Leadership Is an Art" THE LEVEL FIVE HIERARCHYTHE LEVEL FIVE HIERARCHY


ONE QUESTION,FIVE ONE QUESTION,FIVE YEARS,ELEVEN COMPANIESYEARS,ELEVEN COMPANIES The level 5 discovery derives from a research project that The level 5 discovery derives from a research project that

began in 1996.began in 1996.

To answer one question: can a good company become a To answer one question: can a good company become a great company and if so. how?great company and if so. how?

Jim Collin with his 22research associates worked in group Jim Collin with his 22research associates worked in group of four to six at a time from 1996 to 2000, that research of four to six at a time from 1996 to 2000, that research involved wide range of both qualitative and quantitative involved wide range of both qualitative and quantitative analyses.analyses.

Research began with 1,435 companies that appeared on Research began with 1,435 companies that appeared on the the fortune fortune 500 from 1965 to 1995 & found 11 good-to-500 from 1965 to 1995 & found 11 good-to-great examples, That's not the sample: that’s the total great examples, That's not the sample: that’s the total number that jumped all hurdles and passed into study.number that jumped all hurdles and passed into study.


On the qualitative front nearly 6000 articles were collected, 87 On the qualitative front nearly 6000 articles were collected, 87 interviews conducted with key executives, analyzed interviews conducted with key executives, analyzed companies’ internal strategy documents.companies’ internal strategy documents.

On the quantitative front, ran financial metrics, examined On the quantitative front, ran financial metrics, examined executive compensation, compared patterns of management executive compensation, compared patterns of management turnover and quantified company layoff’s and restructuring.turnover and quantified company layoff’s and restructuring.

For each good-to-great example best direct companies were For each good-to-great example best direct companies were selected, based on the similarity of business, size, age, selected, based on the similarity of business, size, age, customers, and performance leading up to transition.customers, and performance leading up to transition.

When they synthesized the result to identify the drivers of When they synthesized the result to identify the drivers of good-to-great transformation, one was Level 5 leadership but good-to-great transformation, one was Level 5 leadership but its not the only one.its not the only one.


GOOD-TO-GREAT transformations don’t GOOD-TO-GREAT transformations don’t happen without level 5 leaders at the happen without level 5 leaders at the

helm.helm. Darwin E smith named CEO of Kimberly-Clark company in Darwin E smith named CEO of Kimberly-Clark company in

1971.1971.

Smith created a stunning transformation at Kimberly-Clark, Smith created a stunning transformation at Kimberly-Clark, turning it into the leading consumer paper product company turning it into the leading consumer paper product company in the world.in the world.

Smith’s turnaround of Kimberly-Clark is one of the best Smith’s turnaround of Kimberly-Clark is one of the best examples in twentieth century of a leader taking a company examples in twentieth century of a leader taking a company from merely good to truly great.from merely good to truly great.


HUMILTIY + WILL= LEVEL HUMILTIY + WILL= LEVEL 55

Level five leaders are a study in duality: modest and willful, Level five leaders are a study in duality: modest and willful, Shy and fearless.Shy and fearless.

Colman M. Mockler, CEO of Gillette from 1975 to 1991.Colman M. Mockler, CEO of Gillette from 1975 to 1991. Mockler, who faced down three takeover attempts, was a Mockler, who faced down three takeover attempts, was a

reserved, gracious man with a gentle, almost patrician reserved, gracious man with a gentle, almost patrician manner.manner.

At the height of the crisis, he maintained a calm business-as-At the height of the crisis, he maintained a calm business-as-usual demeanor, dispensing first with ongoing business usual demeanor, dispensing first with ongoing business before turning to the takeover.before turning to the takeover.

He chose to fight for the future greatness of Gillette even He chose to fight for the future greatness of Gillette even though he could have pocketed millions by flipping his stock.though he could have pocketed millions by flipping his stock.

If Mockler had given up the fight, it’s likely that none of If Mockler had given up the fight, it’s likely that none of gentlemen would be shaving with Sensor, or the Mach 3 and gentlemen would be shaving with Sensor, or the Mach 3 and hundreds of millions of people would have a more painful hundreds of millions of people would have a more painful battle with daily stubble.battle with daily stubble.


AN UNWAVERING RESOLVEAN UNWAVERING RESOLVE

Besides extreme humility, Level 5 leaders also display Besides extreme humility, Level 5 leaders also display tremendous professional will.tremendous professional will.

When George Cain became CEO of Abbott Laboratories it was When George Cain became CEO of Abbott Laboratories it was drowsy family controlled business.drowsy family controlled business.

Cain was a typical level 5 leader in his lack of pretense; he Cain was a typical level 5 leader in his lack of pretense; he didn’t have the kind of inspiring personality that would didn’t have the kind of inspiring personality that would galvanize the company.galvanize the company.

But had something much powerful: inspired standards.But had something much powerful: inspired standards. Among Cain's first tasks was to destroy one of the root causes Among Cain's first tasks was to destroy one of the root causes

of Abbott's middling performance: nepotism.of Abbott's middling performance: nepotism. By systematically rebuilding both the board and the executive By systematically rebuilding both the board and the executive

team with the best people he could find.team with the best people he could find. Cain made his statement : family ties no longer mattered. If Cain made his statement : family ties no longer mattered. If

you couldn’t become the best executive in the industry, within you couldn’t become the best executive in the industry, within your spa of responsibility, you would lose your paycheck.your spa of responsibility, you would lose your paycheck.


NOT BY LEVEL 5 ALONENOT BY LEVEL 5 ALONE FIRST WHOFIRST WHO: good-to-great leaders would start : good-to-great leaders would start

with the vision & strategy. They got the right with the vision & strategy. They got the right people o the bus, moved the wrong people off.people o the bus, moved the wrong people off.

STOCKDALE PARADOXSTOCKDALE PARADOX: named after Admiral : named after Admiral James Stockdale, winner of the medal of Honor.James Stockdale, winner of the medal of Honor.

BUILDUP-BREAKTHROUGH FLYWHEELBUILDUP-BREAKTHROUGH FLYWHEEL: good-: good-to-great transformation do not happen overnight to-great transformation do not happen overnight or in one big leap, rather the process resembles or in one big leap, rather the process resembles pushing a giant, heavy flywheel in one direction.pushing a giant, heavy flywheel in one direction.

TECHNOLOGY ACCELERATORSTECHNOLOGY ACCELERATORS:: The good-to- The good-to-great companies had paradoxical relationship great companies had paradoxical relationship with technology.with technology.


THE HEDGEHOG CONCEPT:THE HEDGEHOG CONCEPT: In a famous essay, In a famous essay, philosopher and scholar Isaiah Berlin described two philosopher and scholar Isaiah Berlin described two approaches to thought and life using a simple parable: approaches to thought and life using a simple parable: The Fox knows a little about many things, but the The Fox knows a little about many things, but the hedgehog knows only one big thing very well.hedgehog knows only one big thing very well.

Three intersecting circles:Three intersecting circles:

A CULTURE OF DISCIPLINE: When you look across the A CULTURE OF DISCIPLINE: When you look across the good-to-great transformations, they consistently good-to-great transformations, they consistently display three forms of discipline:display three forms of discipline:

Disciplined peoplesDisciplined peoples Disciplined thoughtsDisciplined thoughts Disciplined actionsDisciplined actions

How its economics works

What best ignites the passion of its people

What a company can be best in world


A COMPELLING MODESTYA COMPELLING MODESTY The Mockler story illustrates the modesty typical of level 5 The Mockler story illustrates the modesty typical of level 5

leaders.leaders. They would go on and on about the company and the They would go on and on about the company and the

contributions of other executives, but they would instinctively contributions of other executives, but they would instinctively deflect discussion about their own role.deflect discussion about their own role.

By contrast, consider the courtship of personal celebrity by By contrast, consider the courtship of personal celebrity by the comparison CEOs.the comparison CEOs.

Scott Paper, the comparison company to Kimberly- Clark, Scott Paper, the comparison company to Kimberly- Clark,

hired Al-Dunlaphired Al-Dunlap as CEO.as CEO. A man who would tell anyone who would listen( and many A man who would tell anyone who would listen( and many

who would have preferred not to) about his accomplishments.who would have preferred not to) about his accomplishments. After selling off the company and pocketing his quick millions, After selling off the company and pocketing his quick millions,

Dunlap wrote an autobiography in which he boastfully dubbed Dunlap wrote an autobiography in which he boastfully dubbed himself “Rambo in pinstripes”.himself “Rambo in pinstripes”.


It’s hard to imagine Darwin Smith thinking “ hey that It’s hard to imagine Darwin Smith thinking “ hey that Rambo character reminds me of me”.Rambo character reminds me of me”.

Lee Iacocca, for example, saved Chrysler from brink of Lee Iacocca, for example, saved Chrysler from brink of catastrophe, performing one of the most celebrated catastrophe, performing one of the most celebrated turnarounds in U.S business history.turnarounds in U.S business history.

But then Iacocca diverted his attention to transforming But then Iacocca diverted his attention to transforming himself.himself.

He appeared regularly on talk shows like He appeared regularly on talk shows like Today Show and Today Show and Larry King Live, Larry King Live, starred in more than 80 commercials.starred in more than 80 commercials.

Promoted his autobiography, which sold 7million copies Promoted his autobiography, which sold 7million copies worldwide. Iacocca's personal stock soared but Chrysler’s worldwide. Iacocca's personal stock soared but Chrysler’s stock fell 31% below the market in the second half of his stock fell 31% below the market in the second half of his tenure.tenure.


THE WINDOW AND THE THE WINDOW AND THE MIRRORMIRROR

-level 5 leaders are inherently humble, look out -level 5 leaders are inherently humble, look out the window to assign credit-even undue credit, the window to assign credit-even undue credit, they give credit good luck.they give credit good luck.

-they look in the mirror to assign responsibility, -they look in the mirror to assign responsibility, never cited bad luck or external factors.never cited bad luck or external factors.


BORN OR BREDBORN OR BRED

Author hypothesis is that there are two categories Author hypothesis is that there are two categories of people;of people;

those who don’t have the level 5 those who don’t have the level 5 seed within them and those who do.seed within them and those who do.

The great irony is that the animus and personal The great irony is that the animus and personal ambition that often drives people to become ambition that often drives people to become level4 leader stands with humility requires to rise level4 leader stands with humility requires to rise to level 5.to level 5.

The second category consists of people who The second category consists of people who evolve to level 5 ,the capability resides within evolve to level 5 ,the capability resides within them.them.


One final yet compelling note on findings about One final yet compelling note on findings about level 5: because level 5 leaders have ambition not level 5: because level 5 leaders have ambition not for themselves but for their companies, they for themselves but for their companies, they routinely select superb successors.routinely select superb successors.

Level 5 leaders wants to see their companies even Level 5 leaders wants to see their companies even more successful in the next generation, more successful in the next generation, comfortable with the idea that most people won’t comfortable with the idea that most people won’t even know that the roots of that success trace even know that the roots of that success trace back to them.back to them.

In short level 5 is a very satisfying idea, a truthful In short level 5 is a very satisfying idea, a truthful idea, a powerful idea, and to make the move from idea, a powerful idea, and to make the move from good to great.good to great.


THANK YOU!