Leadership In The New

Millennium

“Hold on ! You can’t all have the front seat!”

Most corporations today are overmanaged and underled. This leads to enormous wastage of resources, deep inefficiencies, and unlimited frustration. The challenge for corporations, communities, and countries is to prevent this from happening.

The Simple Truth

… about coping with complexity. Without good management, complex enterprises tend to become chaotic and their existence is threatened. Good management brings about a degree of order and consistency.

Management is …

… about coping with change. The greater the competitive forces around you, and the more volatile the world around you, the more the need for leadership.

Leadership is …

• A peacetime army can usually survive with good administration and management in the ranks, and good leadership at the very top.

• A wartime army needs competent leadership at all levels. You cannot manage people effectively into battle; you must lead them. Business today is a never-ending battle!

War & Peace

Successful companies actively seek out people with leadership potential and expose them to career experiences that will develop that potential.

Building Leaders

Leadership is about maximizing your followers’ well-being, not their comfort.

- Chris Argyris

Long Term Thinking

Develop a leadership

mindset

• The age of progress might have lightened our physical load – but it has numbed our minds and taken our spirit away from work.

• Speed and change are no longer linear or additive.

What Price Progress?

Leadership is about

first thinkingthen decidingfollowed by acting swiftlyand finally, reflecting

Leadership is about

thinking – explorationdeciding – evaluation/selectionacting swiftly – edgereflecting – analysis/introspection

All of the above are intensely intellectual activities.

• To become rich, I have to be miserable.

• To be successful, I have to be unfair to my customers and employees.

• I must dominate to win.

• I must know everything.

• I have to make all the decisions.

Myths About leadership

Great leaders are dreamers

“There is always a dream in all enterprise, but the dream if it lasts, one day becomes a reality” – Jean Monnet [One Europe, One World]

“India must be able to face Britain as an equal nation, and not as a subordinate colony. India could not, and should not, remain a British possession.” – Mahatma Gandhi

The ways in which leaders conduct their lives – their embodiments – must be clearly perceptible by those whom they hope to influence. People who do not practice what they preach are hypocrites, and hypocrisy mutes the effectiveness of their stories.

Real Leaders Are Credible

Sooner or later, nearly all leaders outreach themselves and end up undermining their causes. Indeed, given their larger-than-life status, they are perhaps prone to this hubristic fate. [Tojo, Mussolini, Chiang, Churchill, de Gaulle, Mao, Stalin…]

Leaders do fail

Leadership crisis

•Gillette

•Lucent

•Campbell

•Coca-Cola

•Xerox

•Mattel

•P&G

•Michael Hawley

•Rick McGinn

•Dale Morrison

•Doug Ivestor

•Rick Thoman

•Jill Barad

•Dirk Jager

The paradox of l’ship

Cognitive complexity and ambiguity plague all leaders today. If you are looking for a job description, forget it; you are dead meat.

You have to design your own job specs, review them, and change them as often as required.

Speed is of essence. Yet, calm reflection when in the clutches of competitive gales is the hallmark of successful leaders.

The faster things happen, the slower you need to go.

Gandhi Mandela

Havel Mother Teresa

Martin Luther King

Change doesn’t have to start at the top.

The Activist’s Rule

They possessed no political power, yet each disrupted history.It was passion, not power, that allowed them to do so.

The Activist’s Rule

• LEARN

• EMPATHIZE

• ACT

• DREAM

What it means to lead

YOU!

Leadership is about

Leadership is not something that you do. It is an expression of who you are.

- Kevin Cashman

“We are not certain you have a mandate anymore.”

Differentiate people based on

performance and values

• T1 – Say goodbye now

• T2 – Coach, give a chance

• T3 – Tyrant.Warn – if no change, get rid

• T4 – Make them role models

T3T3 T4T4

T1T1 T2T2

Low VALUES High

High

Low

PE

RF

OR

MA

NC

E

A Leadership Development Model

The GE Way

A B C

The Vitality Curve must be supported by the reward system: salary increases, promotions, and recognition.

Every recommendation for a reward should be associated with a person’s position on the curve.

Differentiation

As should be given raises that are two to three times the size given to the Bs.

Bs should get solid increases recognizing their contributions every year.

Cs should get nothing.

Differentiation

Key GE Leadership Ingredients

“E4”=

• Energy

• Energizer

• Edge

• Execution

Values and Performance Critical to Success

“E4”

Energy =

Enormous Personal Energy - Strong Bias for Action

Key GE Leadership Ingredients

“E4”

Energizer =

Ability to Motivate and Energize Others ... Infectious Enthusiasm to Max Organization Potential

Key GE Leadership Ingredients

“E4”

Edge =

Competitive Spirit ... Instinctive Drive for Speed/Impact ... Strong Convictions and Courageous Advocacy

Key GE Leadership Ingredients

“E4”

Execution =

Deliver Results

Key GE Leadership Ingredients

Key GE Leadership Ingredients

“E4”=

• Energy

• Energizer

• Edge

• Execution

= Passion

The GE Way

A B C

Passion

Name:

Title:

Mos in Position:

Photo

X

Potential

Per

form

ance

GE’s People Factory

+ Great technologist, + Broad, customer connected

+ Business leader potential, (-) Still maturing as a

leader

Green

belt

Name:

Title:

Mos in Position:

PhotoX

Potential

Per

form

ance

+ Tenacious/pit bull, + Great process thinker

+ 7000 foot runway, (-) Wears ambition on sleeve

GE’s People FactoryGre

enbe

lt

Name:

Title:

Mos in Position:

Photo

X

Potential

Per

form

ance

+ Top operational leader, + Phenomenally quick learner

+ Good mentor, (-) Needs More edge

GE’s People FactoryGre

enbe

lt

Name:

Title:

Mos in Position:

PhotoX

Potential

Per

form

ance

+ Bright driven, + Global thinker + Great coach/mentor + Growing into the role, (-) Execution capability

GE’s People FactoryGre

enbe

lt

DISTINCT … OR EXTINCT!

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

— Michael Goldhaber, Wired

“Quite frankly, we’ve had so many applicants with attitude, over-qualification,inflated egos and hyper aggressiveness that we are looking for someone without a clue.”

Involve everyone in the future

Assessing your response quotient

Do bosses hide behind their desks when more junior employees present good ideas to them?

Involving Everyone

Taking unnecessary work out of the system

Using the brains of many for the benefit of all

Work-Out

Involving Everyone

Work-Out: the rationale

For all these years, you’ve paid for my hands when you could have had my brain as well – for nothing!

People closest to the work know it best.

Involving Everyone

Work-Out: the rationale Those closest to the work know more about it than

their bosses

The best way of getting these workers to pass on that knowledge to their superiors is to give them more power

In exchange for that power, an employee is expected to assume more responsibility for his or her job.

Involving Everyone

Work-Out: the process

Groups of employees are invited to share their views on the business and the bureaucracy that gets in their way.

Reports, Approvals, Meetings, Policies, and Procedures

Involving Everyone

Work-Out: the process

The manager issues a challenge or outlines a broad agenda and then leaves.

With a facilitator, employees list the problems, debate solutions, and prepare to sell their ideas when the boss returns.

Involving Everyone

Work-Out: the process

The manager has to make on-the-spot decisions on each proposal. Most ideas must receive a Yes/No decision on the spot. Decisions on the rest are required by an agreed-upon date. No proposal can be buried.

Involving Everyone

Work-Out: the outcomeProductivity becomes much higher

Needless and meaningless tasks are eliminated

Workers feel liberated and satisfied at having those tasks done away with.

Involving Everyone

Work-Out: the outcome

It helps create a culture where everyone begins to play a part, where everyone’s ideas begin to count, and where leaders lead, not control. They coach – rather than preach – and they get better results.

Involving Everyone

Work-Out: the steps Choose issues to discuss

Select a suitable cross-functional team

Choose a champion who will see the recommendations through to implementation

Involving Everyone

Work-Out: the steps Let the team meet for a couple of days to

come up with recommendations

Meet with managers who can say ‘yes’ or ‘no’ on the spot, or will get back within an agreed time frame.

Hold implementation meetings

Involving Everyone

Change Effort/PayoffHigh

Low

HardEasy

Jewels High- Hards

Low Hanging Fruit

Drop

E f f o r t

Pay

off

“I am firing all of you. From now on it is me and the nearsighted monkey with a dart.”

Emotional Competencies for leaders

As taught by Dan Goleman

• Articulate and arouse enthusiasm for a shared vision and mission

• Step forward to lead as needed regardless of position

• Guide the performance of others while holding them accountable

• Lead by example

Inspiring and Guiding

The leader is the key source of the organization’s emotional tone. Your excitement can move an entire group in the direction you wish.

Emotionally Competent Leaders

“Leadership is giving energy.”

- Birgitta Wistrand

The emotional tone set by the leader ripples downwards with remarkable precision. The most effective ones are warm and outgoing, emotionally expressive, democratic, and trusting.

The average leader is invisible, while the best ones frequently walk around and strike conversations with their staff.

Emotionally Competent Leaders

Create an environment for

success

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2001 2000 COMPANY INDUSTRY1 1 General Electric Electronics, Electrical Equipment 2 5 Wal-Mart Stores General Merchandisers 3 3 Microsoft Computers, Office Equipment 4 14 Berkshire Hathaway Insurance: P & C (stock) 5 9 Home Depot Specialty Retailers 6 17 Johnson & Johnson Pharmaceuticals 7 74 FedEx Mail, Package, Freight Delivery 8 18 Citigroup Banks: Commercial and Savings 9 4 Intel Semiconductors 10 2 Cisco Systems Network Communications 11 21 Merck Pharmaceuticals 12 20 Pfizer Pharmaceuticals 13 24 United Parcel Service Mail, Package, Freight Delivery 14 N/A Target General Merchandisers 15 26 Procter & Gamble Soaps, Cosmetics 16 61 PepsiCo Beverages 17 40 AOL Time Warner Entertainment 18 60 Anheuser-Busch Beverages 19 35 Exxon Mobil Petroleum Refining 20 15 Coca-Cola Enterprises Beverages 21 34 J.P. Morgan Chase Banks: Commercial and Savings 22 27 American International Group Insurance: P & C (stock) 23 7 Dell Computer Computers, Office Equipment 24 8 Nokia Network Communications 25 10 Toyota Motor Motor Vehicles

2001 2000 COMPANY INDUSTRY26 37 Northwestern Mutual Life Ins. Insurance: Life, Health (stock) 27 62 Walgreen Food & Drug Stores 28 6 Sony Electronics, Electrical Equipment 29 51 Eli Lilly Pharmaceuticals 30 48 Continental Airlines Airlines 31 22 Walt Disney Entertainment 32 52 Bristol-Myers Squibb Pharmaceuticals 33 N/A Duke Energy Energy 34 54 E.I. du Pont de Nemours Chemicals 35 N/A Boeing Aerospace and Defense 36 70 Colgate-Palmolive Soaps, Cosmetics 37 67 Caterpillar Industrial & Farm Equipment 38 N/A Sun Microsystems Computers, Office Equipment 39 39 Nestlé Consumer Food Products 40 46 SBC Communications Telecommunications 41 29 Honda Motor Motor Vehicles 42 N/A Oracle Computers, Office Equipment 43 N/A Deere Industrial & Farm Equipment 44 58 Alcoa Metals 45 33 BP Petroleum Refining 46 19 Ford Motor Motor Vehicles 47 N/A BellSouth Telecommunications 48 N/A Kroger Food & Drug Stores 49 N/A Texas Instruments Semiconductors 50 31 Singapore Airlines Airlines

Attributes of World Class

• Innovativeness

• Quality of management

• Employee talent

• Quality of products /services

• Long-term investment value• Financial soundness• Social responsibility• Use of corporate assets• Global business acumen

Attributes of World Class

Corporate Culture

WORLD CLASS

• Team Work

• Customer Focus

• Fair treatment of employees

• Initiative

• Innovation

AVERAGE

• Minimizing risk

• Respecting the chain of command

• Supporting the boss

• Making budget

Source: Fortune

Vision

Mission

Objectives

Tactics

Processes

Foundation - Values

Transformation to World ClassA SYSTEMS APPROACH

a Performance Measurementb Rewards Managementc Employee Feedbackd Recruitment Practicese People Developmentf Customer Feedbackg Mission and Values Reviewh Quality Consciousness i Continuous Improvement

Strategy

“I wanted to create a company where people dare to try new things - where people feel assured in knowing that only the limits of their creativity and drive, their own standards of personal excellence, will be the ceiling on how far and how fast they move.”

- Jack Welch

Welch on Welch

“If you want to get your ship in shape, practice discipline without formalism. In many businesses, a lot of time and effort are spent on supporting the guy at the top. I’m a low maintenance CO. It’s not about me, it’s about my crew.”

- Cdr. Michael Abrashoff – US Navy

Leadership Lessons

• Be willfully self-contained• Listen without prejudice• Don’t just take command –

communicate purpose• Practice discipline without formalism• Hand out responsibility, not orders• Be devoted, and success will be yours

- Cdr. Michael Abrashoff

Leadership Lessons

1. Hire people more talented than yourself

2. Talented people attract talented people

3. Look for the best in each person

4. Set standards for selection

5. Spend time evaluating and acculturating prospective team members

Getting The Best

As taught by Theodore Roosevelt

6. Do not prolong consideration of people who will not receive a position

7. Ceaselessly search for new talent

8. Ruthlessly replace individuals who do not meet the standards of the enterprise

9. Work with the tools at hand

Getting The Best

As taught by Theodore Roosevelt

Hire and promote: first, on the basis of integrity; second, motivation; third, capacity; fourth, understanding; fifth, knowledge; and last and least, experience.

The New Rules

Without integrity, motivation is dangerous. Without motivation, capacity is impotent. Without capacity, understanding is limited. Without understanding, knowledge is

meaningless. Without knowledge, experience is blind.

The New Rules

The Challenge Ahead

Given the right circumstances, from no

more than dreams, determination, and

the liberty to try, quite ordinary people

consistently do extraordinary things.

The Road Ahead

Let us humans surprise the new

millennium. Let us prepare to face it

with a better and finer understanding

of leadership. Let us develop new

methods and be better citizens of this

world.

Beware The Yes Boss

• HAMLET: Do you see yonder cloud that’s almost in the shape of a camel?

• POLONIUS: By the mass, and ‘tis like a camel, indeed.

• HAMLET: Methinks it is like a weasel.• POLONIUS: It is backed like a weasel.• HAMLET: Or like a whale?• POLONIUS: Very like a whale.

- HAMLET, Act III, Scene 2

“On the contrary Mr. Tischbeim. I don’t think that was a stupid question at all.”

BROUGHT TO YOU BY

SAM SWAMINATHANCenter for Creative Thinking

http://www.ccthinking.com