TMA conference
Leadership is a Team Sport
Leadership matters
Shares in Morgan Stanley rose on news of Mr Purcell's decision to retire,
closing up 2% at $50.88 on the New York Stock Exchange.
The leverage Strategic Leadership
provides can be big and fast
Drivers of success and failure
S J Berwin
Survey of 330 European investors found
• “Management is the key driver of success”
• But “less time is spent analysing this aspect of the deal
than others”
% Factors Contributing to the
Failure of an Investment
Management
External
Shock
Business
Model
69
17
14
4
3
UNAPPLIED
POTENTIAL
CONSISTENTLY
ADDS VALUE
RISK MANAGEMENT
THINKING STYLE
4
4
3
ATTITUDE
TO RISK
FUNCTIONAL
CAPABILITY
CURRENT PERFORMANCE
STRATEGIC
AWARENESS &
CAPABILITY
Understanding leadership
STRATEGIC
VISIONARY
PLANNER
1
LIMITED
CONTRIBUTION
0
1
NEEDS
DEVELOPMENT
2
3
1
4
IMPACT/DELIVERY OF
RESULTS
0
CONTROLLED
RISK
MANAGER
2
2
2
BOLD BUT
SOMETIMES
3 UNPREDICTABLE
SUPPORTER
1
2
3
HESITANT
1
IMPLEMENTER
4
0
1
CAUTIOUS
2
OPERATIONAL
FOCUS
INNOVATION
GENERATES
IDEAS
4
3
PROLIFIC
INNOVATOR
ADAPTOR
Is this a good leadership group ?
2
1
0
PERIODIC
UNIMAGINATIVE
1
INGENUITY
2
3
4
ORIGINALITY
Disguised case study
3
4
JUDGEMENT
What is Leadership ?
The tasks of Leadership:
• “Making vision a reality” Warren Bennis
• “Surrounding yourself with great people” Rudolph Giuliani
• “Creating an environment in which others can succeed”
Bob Bauman
The Leadership Agenda:
Connecting the practice of leadership to business performance
The Right Team and
the Team Right
The
Leadership
Agenda
Destination and
Campaigns
An Organisation
Fit for Purpose
The purpose of leadership in
business is competitive advantage
Where leaders spend their TIME
TIME framework
Think
Inspire
Mobilise
Empower
Discover purpose
Choose strategic position
Align the two
Build community
Tap into morality
Act as an example
Tell stories
Define campaigns
Negotiate targets
and roles
Get the wiring right
Empower and
dis-empower
Encourage networks
Time and the Balanced Action Team
Think
Inspire
Mobilise
Leadership is a team sport
Empower
Leadership is a team sport
Sovereign
Lover
Focuses on big picture and
Everything comes down to human
judges everything on whether it
relations.
leads to where she wants things to Focuses on building the winning
go.
coalition,
Redefines what people consider
Obsessed with feelings
is possible.
‘agreement’ is action.
Obsessed by beliefs.
‘direction’ is action.
Magician
Thinks that a new idea / insight is
the only thing that can move the
world.
His best answer to feeding the
troops is to pull a rabbit out of a
hat.
Obsessed by ideas.
‘argument’ is action.
Warrior
focuses on the next battle. He
cannot see very far, but sees very
clearly in front of him
holds people accountable, to
systems, and the fairness of them.
obsessed by facts
‘finding the critical factor’ is action.
Leadership is a team sport
Sovereign
Focuses on big picture and
judges everything on whether it
leads to where he wants things to
go.
Redefines what people consider
is possible.
Obsessed by beliefs.
‘direction’ is action.
Lover
Everything comes down to human
relations.
Focuses on building the winning
coalition,
Obsessed with feelings
‘agreement’ is action.
Magician
Thinks that a new idea / insight is
the only thing that can move the
world.
His best answer to feeding the
troops is to pull a rabbit out of a
hat.
Obsessed by ideas.
‘argument’ is action.
Warrior
focuses on the next battle. He
cannot see very far, but sees very
clearly in front of him
holds people accountable, to
systems, and the fairness of them.
obsessed by facts
‘finding the critical factor’ is action.
Leadership is a team sport
Sovereign
Focuses on big picture and
judges everything on whether it
leads to where he wants things to
go.
Redefines what people consider
is possible.
Obsessed by beliefs.
‘direction’ is action.
Lover
Everything comes down to human
relations.
Focuses on building the winning
coalition,
Obsessed with feelings
‘agreement’ is action.
Magician
Thinks that a new idea / insight is
the only thing that can move the
world.
His best answer to feeding the
troops is to pull a rabbit out of a
hat.
Obsessed by ideas.
‘argument’ is action.
Warrior
focuses on the next battle. He
cannot see very far, but sees very
clearly in front of him
holds people accountable, to
systems, and the fairness of them.
obsessed by facts
‘finding the critical factor’ is action.
Leadership is a team sport
Sovereign
Focuses on big picture and
judges everything on whether it
leads to where he wants things to
go.
Redefines what people consider
is possible.
Obsessed by beliefs.
‘direction’ is action.
Lover
Everything comes down to human
relations.
Focuses on building the winning
coalition,
Obsessed with feelings
‘agreement’ is action.
Magician
Thinks that a new idea / insight is
the only thing that can move the
world.
His best answer to feeding the
troops is to pull a rabbit out of a
hat.
Obsessed by ideas.
‘argument’ is action.
Warrior
focuses on the next battle. He
cannot see very far, but sees very
clearly in front of him
holds people accountable, to
systems, and the fairness of them.
obsessed by facts
‘finding the critical factor’ is action.
Leadership is a team sport
Sovereign
Lover
Focuses on big picture and
Everything comes down to human
judges everything on whether it
relations.
leads to where she wants things to Focuses on building the winning
go.
coalition,
Redefines what people consider
Obsessed with feelings
is possible.
‘agreement’ is action.
Obsessed by beliefs.
‘direction’ is action.
Magician
Thinks that a new idea / insight is
the only thing that can move the
world.
His best answer to feeding the
troops is to pull a rabbit out of a
hat.
Obsessed by ideas.
‘argument’ is action.
Warrior
focuses on the next battle. He
cannot see very far, but sees very
clearly in front of him
holds people accountable, to
systems, and the fairness of them.
obsessed by facts
‘finding the critical factor’ is action.
Disney: Of Mice and Men
Focus on two periods in Disney history:
•
1984 -1994: the path to The Lion King
– $50m movie delivered $766m box office returns in 1 year ‘94-95
– By early ’96 delivered $1.5bn of merchandise, videos and
associated revenues
– Total of over $3bn revenues from Lion King and a contribution of
$900m
– Between ‘83 –’95 Disney relative stock price performance moved
from under $2 a share to over $18
•
1997-2004: Decline of Empire
– Two expensive acquisitions: ABC and Fox Family
– Failed relationships; Katzenbach, Pixar, Miramax and Boardroom
battles
– Between 2000-2004 share price declined from $37 - $18
How did the Leaders spend their TIME ?
Disney: Of Mice and Men:
THINK
Purpose and Strategy
a shared purpose to
make people happy
Excellent branded content and
demand creation and branded
distribution
“Profit Multiplier” business model:
Create core content and leverage it
through multiple channels and
multiple partners
Disney: Of Mice and Men:
THINK
Strategy unchanged
Impact of Loss of Purpose
Branded content and demand creation
and branded distribution
• Sole focus on deal terms and the financial
numbers (vs. making people happy)
“Profit Multiplier” business model:
Create core content and leverage it
through multiple channels and multiple
partners
• “Disney has become an enterprise
that is rapacious, soulless and always
looking for the quick buck” Roy Disney
Disney: Of Mice and Men
INSPIRE
• Leader as Chief visionary and story teller
•“If you can dream it you can do it” Walt Disney
•“Katzenbach constantly reminds us who we are, what we stand for
the heritage of our company and our ability to change the world”
•The Walt Disney Company is more than just a business…it stands
for something real and meaningful and worthwhile to millions of
people..our mission has always been to be the bringers of joy, to be
framers of the good in each of us. To speak not to children but to the
child in each of us” Roy Disney
Disney: Of Mice and Men
INSPIRE
• Leader as Chief visionary and story teller
•“If you can dream it you can do it” Walt Disney
•“Our mission has not changed it is still to create the best animated art, tell the best stories to make
magic and make people happy “ Katzenbach
•“Katzenbach constantly reminds us who we are, what we stand for the heritage of our company
and our ability to change the world”
• Results not magic
•“Titans was a wonderful and moderately budgeted motion picture” Eisner
• “Good morning…as it happens this annual meeting is taking place at a time when
the amount of vision is once again resulting in ….a dramatic and we believe a
sustainable upswing in Disney’ perfomance… we set have target of double digit
compaunded growth in earnings”
Eisner opening remarks to animation team annual meeting
Disney: Of Mice and Men
MOBILISE
• Campaigns and building coalitions
•“The strategy is clear, to deliver against it we need to focus on building
partnerships, like Pixar, Mattel, and Burger King, this year” Eisner
•“Our mission is to be like an orchestra full of virtuoso’s – each of us brilliant and
together dazzling…” Frank Wells
•“Our business model is based on our employees and strategic partners trusting
and sharing in our vision; they multiply the value we create” Frank Wells
Disney: Of Mice and Men
MOBILISE
• Campaigns and building coalitions
•“The strategy is clear, to deliver against it we need to focus on building partnerships, like Pixar, Mattel,
and Burger King, this year” Eisner
•“Our mission is to be like an orchestra full of virtuoso’s – each of us brilliant and together dazzling…”
Frank Wells
•“Our business model is based on our employees and strategic partners trusting and sharing in our
vision; they multiply the value we create” Frank Wells
• Failure to manage the politics
• Fall out with Katzenbach who successfully sued for $270m,
and created key competitor Dreamworks
• Failed to agree new terms for a partnership with Pixar that
contributed 45% of Disney’s studios operating income
•Accused Jobs of encouraging music piracy
Disney: Of Mice and Men
EMPOWER
Creating the conditions for others to be successful
• Synergy VP and corporate synergy team reporting directly to CEO
• Cross divisional meetings focused on synergy planning
• Divisions filed monthly operating reports – included cross-business
initiatives
• Year end evaluations focused on synergy - explicitly recognised at bonus
time
• Disempowered (fired) executives who took a narrow perspective only
Disney: Of Mice and Men
EMPOWER
Imperious Micromanagement
• “Eisner has so many ideas but he gives people too little power and authority
to execute them” … “he’s more hands on than Mother Theresa”
• Fired key executives that disagreed with him led to failure to deliver benefits
from Capital Cities ABC acquisition –now bottom of networks
• Took personal control over master planning at Animal Kingdom, and
California Expansion $2bn project: widely seen as one of the least successful
Disney theme park expansions
• Under Eisner, Disney has become isolated – “like North Korea, a struggling
insular dictatorship – led by Kim Jong Eisner”
• Eisner personally re-negotiated deal to buy Fox Family– losing Disney over
$800m in his revised terms vs. deal outlined by his team
• “Everything has become subjugated to “what does Michael think ?” It’s a
culture that stifles creativity and means we lose the best talent”
Disney: Of Mice and Men
Leadership is a team sport
• Wells, Katzenbach, Roy Disney, played important roles in revival of Disney
alongside Eisner
• Eisner was the creative force and occasionally brilliant at deal making
• Wells ran the business – he was a wise counsel and a financial troubleshooter
eg Eurodisney refinancing deal
• Katzenbach is known as the “golden retriever” who “makes the rest of
Hollywood look french in its work habits” – got things done
• Roy Disney represented the purpose and continuity of the firm
Disney: Of Mice and Men
Leadership is a team sport
• Wells, Katzenbach, Roy Disney, played important roles in revival of Disney alongside Eisner
• Eisner was the creative force and occasionally brilliant at deal making
• Wells ran the business – he was a wise counsel and a financial troubleshooter
e.g: Eurodisney refinancing deal
• Katzenbach is known as the “golden retriever” who “makes the rest of Hollywood look french in its
work habits” – got things done
• Roy Disney represented the purpose and continuity of the firm
• Eisner alone has seen Disney’s most recent decline
• Following Well’s death and Katzenbach’s departure to start Dreamworks,
Eisner assumed greater control, preferring “yes men”
• Ovitz recruited as COO.. but CFO and legal counsel still reported to Eisner
• later sacked for $140m settlement
• “What Michael likes is to put six pit bulls together and see which five die”
• Without the balance of a top team: big ideas, poor analysis and poor
execution
Where leaders spend their TIME
TIME framework
Think
Inspire
Mobilise
Discover Purpose
Choose Strategic position
Align the two
Build Community
Tap into morality
Act as an example
Tell stories
Confront reality
Show it is possible
Define campaigns
Set targets
Negotiate Roles
Allocate resources
Manage the Politics
Build coalitions
Neutralise opponents
Leadership is a team sport
Empower
Get the wiring right
Manage authority
Delegate power
Dis-empower
Encourage networks
Scrutiny and oversight
Leadership team: the benefits of Balance
Too many sovereigns
Too many lovers
•too many directions at once, or radically
changes direction regularly.
•no centre of gravity as many unresolved
business issues up in the air all the time.
•There will be many subjects that cannot
be discussed and an atmosphere of
distrust.
•appears fragmented, with poor
communication.
•Issues regarding strategy and direction
•value consensus to the detriment of
results.
• too many meetings. too much talking and
not enough action.
•excessive reliance on outside
constituencies.
•appears as lacking competitiveness and
edge.
•Issues regarding execution and innovation
Too many magicians
Too many warriors
•pondering opportunities all the time, but it
will lack decisive action, even though its
thinking is excellent.
•more concerned with having it done ‘right’
than having it done.
•It will be especially vulnerable to pursuing
superior technology at the expense of
something that customers would buy.
•appears as a debating society.
•Issues regarding execution.
•experience difficulties if anything in the
environment changes.
•won’t be proactive, miss opportunities that
its competitors may exploit.
•appears as a parade of soldiers.
•Issues regarding innovation.
Leadership team: the benefits of Balance
Too many sovereigns
Too many lovers
•too many directions at once, or radically
changes direction regularly.
•no centre of gravity as many unresolved
business issues up in the air all the time.
•There will be many subjects that cannot
be discussed and an atmosphere of
distrust.
•appears fragmented, with poor
communication.
•Issues regarding strategy and direction
•value consensus to the detriment of
results.
• too many meetings. too much talking and
not enough action.
•excessive reliance on outside
constituencies.
•appears as lacking competitiveness and
edge.
•Issues regarding execution and innovation
Too many magicians
Too many warriors
•pondering opportunities all the time, but it
will lack decisive action, even though its
thinking is excellent.
•more concerned with having it done ‘right’
than having it done.
•It will be especially vulnerable to pursuing
superior technology at the expense of
something that customers would buy.
•appears as a debating society.
•Issues regarding execution.
•experience difficulties if anything in the
environment changes.
•won’t be proactive, miss opportunities that
its competitors may exploit.
•appears as a parade of soldiers.
•Issues regarding innovation.
Leadership team: the benefits of Balance
Too many sovereigns
Too many lovers
•too many directions at once, or radically
changes direction regularly.
•no centre of gravity as many unresolved
business issues up in the air all the time.
•There will be many subjects that cannot
be discussed and an atmosphere of
distrust.
•appears fragmented, with poor
communication.
•Issues regarding strategy and direction
•value consensus to the detriment of
results.
• too many meetings. too much talking and
not enough action.
•excessive reliance on outside
constituencies.
•appears as lacking competitiveness and
edge.
•Issues regarding execution and innovation
Too many magicians
Too many warriors
•pondering opportunities all the time, but it
will lack decisive action, even though its
thinking is excellent.
•more concerned with having it done ‘right’
than having it done.
•It will be especially vulnerable to pursuing
superior technology at the expense of
something that customers would buy.
•appears as a debating society.
•Issues regarding execution.
•experience difficulties if anything in the
environment changes.
•won’t be proactive, miss opportunities that
its competitors may exploit.
•appears as a parade of soldiers.
•Issues regarding innovation.
Leadership team: the benefits of Balance
Too many sovereigns
Too many lovers
•too many directions at once, or radically
changes direction regularly.
•no centre of gravity as many unresolved
business issues up in the air all the time.
•There will be many subjects that cannot
be discussed and an atmosphere of
distrust.
•appears fragmented, with poor
communication.
•Issues regarding strategy and direction
•value consensus to the detriment of
results.
• too many meetings. too much talking and
not enough action.
•excessive reliance on outside
constituencies.
•appears as lacking competitiveness and
edge.
•Issues regarding execution and innovation
Too many magicians
Too many warriors
•pondering opportunities all the time, but it
will lack decisive action, even though its
thinking is excellent.
•more concerned with having it done ‘right’
than having it done.
•It will be especially vulnerable to pursuing
superior technology at the expense of
something that customers would buy.
•appears as a debating society.
•Issues regarding execution.
•experience difficulties if anything in the
environment changes.
•won’t be proactive, miss opportunities that
its competitors may exploit.
•appears as a parade of soldiers.
•Issues regarding innovation.
Leadership team: the benefits of Balance
Too many sovereigns
Too many lovers
•too many directions at once, or radically
changes direction regularly.
•no centre of gravity as many unresolved
business issues up in the air all the time.
•There will be many subjects that cannot
be discussed and an atmosphere of
distrust.
•appears fragmented, with poor
communication.
•Issues regarding strategy and direction
•value consensus to the detriment of
results.
• too many meetings. too much talking and
not enough action.
•excessive reliance on outside
constituencies.
•appears as lacking competitiveness and
edge.
•Issues regarding execution and innovation
Too many magicians
Too many warriors
•pondering opportunities all the time, but it
will lack decisive action, even though its
thinking is excellent.
•more concerned with having it done ‘right’
than having it done.
•It will be especially vulnerable to pursuing
superior technology at the expense of
something that customers would buy.
•appears as a debating society.
•Issues regarding execution.
•experience difficulties if anything in the
environment changes.
•won’t be proactive, miss opportunities that
its competitors may exploit.
•appears as a parade of soldiers.
•Issues regarding innovation.
The Leadership Agenda
Joining up the dots
Where have you
chosen to go ?
What advantage
do you need
to win ?
What campaigns
do you need to
focus on ?
Is the
organisation
fit for purpose ?
What leadership
do you need ?
All are important, Strategic Leadership aligns
and integrates them for advantage
14 Hays Mews
London W1J 5PT
Tel: +44 (0)207290 2074
max@panthealeadership.com
khoi@panthealeadership.com
john@panthealeadership.com
www.panthealeadership.com