Date post: | 06-May-2015 |
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The CEO Brand and Corporate Success
Bolaji Okusaga
1. Creating a Dual Personality
• The Corporate and the Individual
Introduction
REALITY• In the normal context, a company as
corporate citizen should have a life, an essence and a personality
• This personality distinguishes the Company from other companies which offer similar products or service.
PRACTICE• However, most companies as
corporate citizens take the definition of their life, character and personality from individuals who are either founders or operators.
• Indeed, companies are defined by the character and personalities of their founders or those who run them.
Defining the Interplay Between the Corporate and CEO Personality
The Corporate Personality
Culture
The CEO PersonalityGovernance
The CEO as the Mind of the Organization
The values, the philosophies and the characters of these individuals usually rub-off on these entities and determine
their success or failures.
Hence, it is difficult to think about Apple without thinking of Steve Jobs, or Microsoft without Bill Gates or Virgin without
Richard Branson or South-West Airlines without Herb Kelleher or General Electric without Jack Welch.
The CEO
Values Philosophy Character
Influence
The CEO and the Structure of Corporate Thought
The CEO
Corporate Philosophy, Corporate Culture, Values,
Character
A CEO that knows his onion will lead the charge because there is no change without character
• The personality of the CEO
A change agent A deal maker
A quiet and conservative
builder
A hardline technocrat
A people person
The CEO’s character has an impact on the direction of the company he / she runs. Since the buck stops on the CEOs table, the direction of the enterprise is certain to be shaped by his/her temperament.
How the CEO Character Shapes the Corporate View
Apple Under Steve Jobs (Republican Views)• Company does not do free or
Open Source Applications• The IOS is closed and does not
interact with other Applications
Google Under Larry Page and Sergey Brin (Democratic Views)• Company does free and Open
Source Application• Android is open and cheap to
access
The CEO as the Turn-around Master
• Taking over from Lucian Smith, rekindled the Coke appeal by introducing far reaching changes
• The high point of his era at Coke was the introduction of the diet brands and Coke Classic
• A CUBAN IMMIGRANT
Roberto Goizueta
• He took over from John Akers and brought back IBM from the brink
• He prioritized the IT business and grew earnings in that division by over 50%
• He also embraced the internet and drove an innovative culture at IBM
Lou Gerstner
• Taking over from Reg Jones, he re-ordered the priority of GE
• Moving GE out of White Goods business having lost cost advantage to Asian Companies
• He prioritized turbines, healthcare and finance, making GE America’s most loved company
Jack Welch
COCA-COLA IBM GE
Where are the Women
Carly Fiona• Under her, HP weathered
the storm of the dot-com bubble, acquiring Compaq and becoming one of the strongest players in the Computer hardware market.
Indra Nooyi• According to BusinessWeek
since she started as CFO in 2000, the company's annual revenues have risen 72%, while net profit more than doubled, to $5.6 billion in 2006
Oprah Winfrey• Credited with creating a
more intimate confessional form of media communication, she is thought to have popularized and revolutionized the tabloid talk show genre pioneered by Phil Donahue
The Entrepreneur and the Empire Builder
Sam WaltonRedefined retail business
Creating the Walmart phenmenon – a Cocktail of
Retail, Vending and Financial Services
Steve JobsRedefined the way we work,
consume information and listen to music, bridging the
divide between arts and science
Aliko DangoteMoved from Haulage, to Commodities Trading , to
Production, building a diversified Conglomerate
and becoming Africa’s richest Man
The Nigerian ExampleJim Ovia• Redefined the concept of Banking in Nigeria by introducing On-Line-Real-Time
Banking and Convenience Banking before it became the minimum standard of entry thereby beating Competitors like Guaranty Trust and Diamond Bank.
Fola Adeola and Tayo Adenirokun• Pursued a value-added strategy that most bankers usually avoid in order to save cost
and created a differentiated value proposition• Built banking halls with grandiloquent facades and boutique interior designs which
offered comfort and style and elevated customer experience using people and technology
Eneli Kuku and Obiora• Redefined health care delivery in Nigeria by being the first publicly quoted Hospital.
Through its access to funds from the capital market, it was able to raise enough funds to procure state of the art medical equipment and hire experienced personnel thereby raising the bar in private health care delivery
2. The Corporate Personality
• Is it Human or Institutional?
Corporate Governance and the Institutional Route to Creating Value
The Struggle Between Enterprise and the Individual
Corporate Governance often lays water-tight rules which prevent
individuals from over-powering an enterprise
This perspective looks at an enterprise as institutional citizen
which must be protected
The Transition…
The Laissez-faire Order
Enlightened Self Interest
The Era of Regulation
The Era of the Triple Bottomline
The Era of Sustainability
The Power Dynamics
Institutional Power against the charisma
and genius of the Individual
Does Corporate Governance Limit Individual Initiative?
The Basis – Guided Leadership• The believe that concentration of too much power in the hands
of an individual may be counter-productive as such individual may become power drunk or corrupt.
• The thinking is that creating processes and procedures as opposed to allowing the discretion of the CEO prevail all the time, is a better route to attaining growth and stability of the enterprise.
The Individual’s point of Departure – The Place of Genius and Charisma• Under the same rules – Jack Welch is
different from Jeff Immelt and Steve Jobs is different from Tim Cook
The Clash of Corporate Vision and the Will of the Individual
The battle between John Sculley and Steve Jobs
The decision of the board to side with John Sculley The exit of Steve Jobs
The fall of Apple The return of human will in driving corporate vision The rise of Apple
No! Its Not the Individual, it’s the Collective…
The American Hero• Under the American
Context, the CEO has the power to create exceptional shareholder value, he or she also has the power to destroy value and given the need to keep value growing.
Striking a Balance• Despite the power of the
CEO, organizations need to strike the right balance
The Asian Example• Let’s look at the success of
Asian companies like Toyota, Honda, Tata, Samsung, LG and Hyundai – who are the Icons?
• Beginning to outperformed their American counterpart and conquering the world.
Thank you.