Leadership In
The New
Millennium
“Hold on ! You can’t all have the front seat!”
The Simple Truth
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.
Management is …
… 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.
Leadership 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.
War & Peace
• 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!
Building Leaders
Successful companies actively seek
out people with leadership potential
and expose them to career
experiences that will develop that
potential.
Long Term Thinking
Leadership is about maximizing your
followers’ well-being, not their
comfort.
- Chris Argyris
Develop a
leadership
mindset
What Price Progress?
• 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.
Leadership is about
first thinking
then deciding
followed by acting swiftly
and finally, reflecting
Leadership is about
thinking – exploration
deciding – evaluation/selection
acting swiftly – edge
reflecting – analysis/introspection
All of the above are intensely
intellectual activities.
Myths About leadership
• 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.
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
Real Leaders Are Credible
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.
Leaders do fail
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…]
Leadership crisis
•Dirk Jager
•P&G
•Jill Barad
•Mattel
•Rick Thoman
•Xerox
•Doug Ivestor
•Coca-Cola
•Dale Morrison
•Campbell
•Rick McGinn
•Lucent
•Michael Hawley
•Gillette
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.
The Activist’s Rule
Gandhi
Havel
Mandela
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.
What it means to lead
• LEARN
• EMPATHIZE
• ACT
• DREAM
Leadership is about
YOU!
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
A Leadership
Development Model
PERFORMANCE
High
T3
T4
• T1 – Say goodbye
now
• T2 – Coach, give a
chance
T1
T2
Low
Low
VALUES
High
• T3 – Tyrant.
Warn – if no change,
get rid
• T4 – Make them role
models
The GE Way
A
B
C
Differentiation
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.
Key GE Leadership
Ingredients
• Energy
4
“E ”=
• Energizer
• Edge
• Execution
Values and Performance Critical to Success
Key GE Leadership
Ingredients
“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
• Energy
4
“E ”=
• Energizer
• Edge
• Execution
= Passion
The GE Way
Passion
A
B
C
GE’s People Factory
Name:
Title:
Mos in Position:
+ Great technologist, +
Performance
Photo
Potential
X
Broad, customer connected
+ Business leader potential, (-) Still maturing as a
leader
GE’s People Factory
Name:
Title:
Mos in Position:
+ Tenacious/pit bull, +
Performance
Photo
Potential
X
Great process thinker
+ 7000 foot runway, (-) Wears ambition on sleeve
GE’s People Factory
Name:
Title:
Mos in Position:
+ Top operational leader,
Performance
Photo
Potential
X
+ Phenomenally quick learner
+ Good mentor, (-) Needs More edge
GE’s People Factory
Name:
Title:
Mos in Position:
Performance
Photo
Potential
X
+ Bright driven, + Global thinker + Great coach/mentor +
Growing into the role, (-) Execution capability
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
Involving Everyone
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 outcome
 Productivity 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
Change Effort/Payoff
High
Payoff
Jewels
HighHards
Low
Hanging
Fruit
Drop
Low
Easy
Effort
Hard
“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
Inspiring and Guiding
• 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
Emotionally Competent
Leaders
The leader is the key source of the
organization’s emotional tone. Your
excitement can move an entire group in
the direction you wish.
“Leadership is giving energy.”
- Birgitta Wistrand
Emotionally Competent
Leaders
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.
Create an
environment for
success
2001
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
2000
1
5
3
14
9
17
74
18
4
2
21
20
24
N/A
26
61
40
60
35
15
34
27
7
8
10
COMPANY
INDUSTRY
General Electric
Electronics, Electrical Equipment
Wal-Mart Stores
General Merchandisers
Microsoft
Computers, Office Equipment
Berkshire Hathaway
Insurance: P & C (stock)
Home Depot
Specialty Retailers
Johnson & Johnson
Pharmaceuticals
FedEx
Mail, Package, Freight Delivery
Citigroup
Banks: Commercial and Savings
Intel
Semiconductors
Cisco Systems
Network Communications
Merck
Pharmaceuticals
Pfizer
Pharmaceuticals
United Parcel Service
Mail, Package, Freight Delivery
Target
General Merchandisers
Procter & Gamble
Soaps, Cosmetics
PepsiCo
Beverages
AOL Time Warner
Entertainment
Anheuser-Busch
Beverages
Exxon Mobil
Petroleum Refining
Coca-Cola Enterprises
Beverages
J.P. Morgan Chase
Banks: Commercial and Savings
American International Group
Insurance: P & C (stock)
Dell Computer
Computers, Office Equipment
Nokia
Network Communications
Toyota Motor
Motor Vehicles
2001
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
2000
37
62
6
51
48
22
52
N/A
54
N/A
70
67
N/A
39
46
29
N/A
N/A
58
33
19
N/A
N/A
N/A
31
COMPANY
Northwestern Mutual Life Ins.
Walgreen
Sony
Eli Lilly
Continental Airlines
Walt Disney
Bristol-Myers Squibb
Duke Energy
E.I. du Pont de Nemours
Boeing
Colgate-Palmolive
Caterpillar
Sun Microsystems
Nestlé
SBC Communications
Honda Motor
Oracle
Deere
Alcoa
BP
Ford Motor
BellSouth
Kroger
Texas Instruments
Singapore Airlines
INDUSTRY
Insurance: Life, Health (stock)
Food & Drug Stores
Electronics, Electrical Equipment
Pharmaceuticals
Airlines
Entertainment
Pharmaceuticals
Energy
Chemicals
Aerospace and Defense
Soaps, Cosmetics
Industrial & Farm Equipment
Computers, Office Equipment
Consumer Food Products
Telecommunications
Motor Vehicles
Computers, Office Equipment
Industrial & Farm Equipment
Metals
Petroleum Refining
Motor Vehicles
Telecommunications
Food & Drug Stores
Semiconductors
Airlines
Attributes of World Class
• Innovativeness
• Quality of management
• Employee talent
• Quality of products /services
Attributes of World Class
• Long-term investment value
• Financial soundness
• Social responsibility
• Use of corporate assets
• Global business acumen
Corporate Culture
WORLD CLASS
AVERAGE
• Team Work
• Customer Focus
• Fair treatment of
• Minimizing risk
• Respecting the
employees
•
•
Initiative
Innovation
chain of command
Supporting the boss
•
• Making budget
Source: Fortune
Vision
Mission
Objectives
Strategy
Tactics
Processes
Foundation - Values
Transformation to World Class
A SYSTEMS APPROACH
a Performance Measurement
b Rewards Management
c Employee Feedback
d Recruitment Practices
e People Development
f Customer Feedback
g Mission and Values Review
h Quality Consciousness
i Continuous Improvement
Welch on Welch
“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
Leadership Lessons
“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
Getting The Best
As taught by Theodore Roosevelt
1.
2.
3.
4.
5.
Hire people more talented than yourself
Talented people attract talented people
Look for the best in each person
Set standards for selection
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
The New Rules
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 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 SWAMINATHAN
Center for Creative Thinking
http://www.ccthinking.com