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Lessons Learned During A Career of Leadership

Howard L. Lance

Bradley University March 26, 2014

© H. L. Lance

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My Background

•  Born in East Peoria, Illinois

•  Education

–  B.S. Industrial Engineering, Bradley University

–  M.S. Management, Purdue University

•  Business Experience

–  Blackstone Group, Executive Advisor- Private Equity, 2012- 2014

–  Harris Corporation, Chairman & CEO, 2003-2011

–  NCR Corporation, President & COO, 2001-2002

–  Emerson Electric, Executive Vice President, 1984-2001

–  Caterpillar, Sales & Marketing Management, 1977-1982; Engineering Co-op 1974-1977

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Harris Corporation Overview

RF Communications Radios, radio systems and networking for global defense, security, public safety and enterprise communications markets Government Communications Systems Advanced communications technology and systems integration for the U.S. Department of Defense, National Intelligence and Federal Agency customers Integrated Network Solutions IT services, satellite communications networks, cyber security and broadcast solutions for government and commercial markets including energy, maritime, healthcare and media clients

Business Segments

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Harris Financial Results

*Based on guidance provided August 2, 2011. Reference non-GAAP reconciliation on the Harris investor relations website.

7X 3X

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Blackstone Group Private Equity

Leading provider of secure healthcare IT solutions for claims and payment transactions

•  1,200 government and commercial payers

•  5,000 hospitals

•  400,000 physicians and dentists

•  60,000 pharmacies

Integrated heavy building materials supplier including aggregates, cement, ready mix concrete, asphalt and paving

•  Kentucky, Missouri, Kansas, Texas, Colorado, Utah

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Executive Summary

•  A broad set of skills across management, strategy and leadership are essential in order to be successful at the highest levels of business

•  Leadership skills are the most underrated and the most important as you move up in an organization

•  Successful executives share a common set of personal attributes which allow them to be the most effective in accomplishing their objectives

•  There is an increasing convergence of required knowledge of both engineering and business disciplines in order to excel -- technology is infiltrating every business every day

•  Planning your career is like building a wall -- each new skill and experience adds to its strength and significance so you want to get exposure to as many areas as possible

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Leadership

Strategy

Management

“Guiding organizations to maximize effectiveness and get desired results”

“Doing things right”

“Doing the right things”

Inter-related executive skills Inter-Related Executive Skills

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•  Communicate a clear vision of the goals of the organization

•  Identify the strategies and tactics that will be used to achieve them

•  Put the right people in the right jobs

•  Develop detailed action plans with a relentless focus on execution

Keys to Effective Leadership

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Harris Strategic Vision

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Vision and Mission Statements

Organization Alignment Essential

Core Leadership Values

Individual Performance Attributes

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•  The leaders of an organization must have a set of shared values that they consistently demonstrate all day, every day, without exception

–  Leaders get the behaviors that they personally exhibit

–  Leaders get the behaviors that they tolerate

–  Leaders must walk-the-talk in order to have credibility

•  Communicate, communicate and then communicate again to ensure everyone is on the same page

•  Great leaders lead from the front with passion and personal courage

Leadership Expectations

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Leaders Must Develop New Skills

•  Leadership •  Strategic planning •  Markets and competitive

assessment •  Innovation– creating

differentiated products, capabilities and services

•  Collaboration •  Financial analysis and risk

management •  Talent management and

development •  Change management

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Top 10 personal attributes for success

  Analytical Decision-Making

  Disciplined Execution

  Competitive Spirit

  Innovation & Creativity

  Sense of Urgency

  Integrity

  Challenge Everything   Constructive Dissatisfaction

  Accountability

  Sets High Standards

“Top 10” Personal Attributes for Success

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Accountability

•  Each individual is accountable for: –  Knowing the mission of the organization –  Aligning themselves to the mission –  Setting personal goals –  Identifying necessary actions to drive

continuous improvement –  Measuring results

•  Need to exercise consistently good judgment in decision making

•  Ask “What am I going to do today to contribute to the success of the organization”

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•  Detailed competitive analysis is the key to understanding their strategy and your best response

•  Being paranoid about your competitors is not a bad thing

•  “Nothing focuses the mind

better than the constant sight of a competitor who wants to wipe you off the map”- Wayne Calloway

•  However, “winning at all costs” is

not acceptable –  Always stay inside the lines of

appropriate business conduct

Competitive Spirit

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•  Celebrate your successes!! •  But, never become complacent with

your current performance •  Be dissatisfied in a constructive

way and commit to drive continuous improvement

•  “It’s at the moment of victory that you can be sowing the seeds for your future defeat. After you jump the bar, then you’ve got to raise it and go back and do it again.”– Bob Novello

Constructive Dissatisfaction

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•  Expect only the best from yourself and your team members

•  Don’t be afraid to stretch to achieve never-before reached goals

•  Success is more attitude than aptitude

Sets High Standards

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•  If you’re not driving change and moving ahead, then you’re moving backward relative to everyone else

•  “Some men see things as they are and say why. I dream of things that never were and say why not.”– President John F. Kennedy

•  Risk is inherent in trying new things, but it can be managed –  Just because you make a

mistake, it doesn’t mean that you’re a mistake

Innovation & Creativity

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•  We’re all given the same amount of time, it’s what we do with ours that makes the difference

•  “Time waits for no man”

•  Problems are made to be solved, and the faster they’re solved, the smaller they stay •  Procrastination only allows small

problems to get larger

Sense of Urgency

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•  Strive to be honest, ethical

and open in all business and personal interactions

•  Proper business conduct is critical to our company

•  “A soiled reputation created in a minute cannot be easily repaired in a lifetime”

Integrity

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•  Challenge current processes that are inefficient and ineffective and get in the way of serving our customers, employees and shareholders

•  “The status quo is the enemy of progress”

•  “If everyone is thinking alike, then somebody isn’t thinking”—General George S. Patton

Challenge Everything

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•  Make fact-based business decisions – Don’t allow your emotions to

impact good judgment

•  “That which is measured is that which will be improved”

•  Focus on getting the “A-priority” decisions right; don’t sweat the “C-priority” decisions as much

Analytical Decision-Making

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•  Plan, execute, measure, revise the plan, then start over again

•  Under-promise and over-deliver to

develop a track-record of consistent and credible performance

•  “There are three core processes which must be linked to ensure superior execution: people, strategy and operations”– Larry Bossidy in Execution

Disciplined Execution

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Engineering-Business Convergence

•  Can you think of any business that is not incorporating technology into its products, services or operations? –  Customer interactions –  Go-to-market strategies –  Employee engagement –  Software integration and automation

•  Business majors need to understand how to utilize technology to create product and service differentiation and to develop a competitive advantage

•  Engineering majors need to understand how to identify market needs as well as the economics of R&D expenditures to create leading products and services that make money

•  You will always get the best outcomes through business and engineering collaboration

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Thoughts on Career Planning

•  A career is a lot like building a wall -- you want to keep adding new “bricks” of skills and experiences along the way

•  Decide on a general direction, but don’t be too specific in your career planning or you might block out potential opportunities

•  If you focus on the current job with a high level of performance, the future tends to take care of itself

•  Advanced business degree programs expose you to a whole different level of learning and professional interaction – especially an MBA from Bradley!

•  Become more globally knowledgeable

•  Seek out mentors to assist with your professional development •  Take responsibility for your own future

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If I had it to do all over again I would….

•  Make staffing decisions about people in the wrong role sooner rather than later; it will cost a lot less and you’ll see improvement faster

•  Make fewer decisions “from my gut”; instincts really aren’t that consistently accurate

•  Spend more time abroad earlier in my career and learn to speak a foreign language… or two

•  Work at the corporate office sooner in my career to understand the big picture of strategy and managing portfolios of businesses

•  Learn to play golf at age 10 and not age 40; would no doubt have developed fewer bad habits and have a lower handicap

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One Final Thought

“It’s not the destination, it’s the journey that provides the richness of life”

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Q & A