Hugh D. Sherman
Brazilian Executive Seminar
Distributed/Virtual Organizations
Organizations whose members and resources
may be geographically dispersed but function as
a coherent unit though the use of information
and communication technology
What are your leadership Challenges?
New Competitive Environment
Major Trends in the Environment?
1. Shift in Economic Power Among Nations
2. Sustainability as an Opportunity
3. Others?
Top Performing CEO’s in
the World
• Steve Jobs - Apple
• Yun Jong-Yong
Two in the top 50 from Brazil
• Ben Steinbruch –CNS (steel 72%, spinning off
mining)
• Maricio Botelho – Embraer (4th largest
airplane maker, regional jets)
Leadership’s Focus
Strategic-Positioning the
organization for the future
Operational – Focusing on short
term results
• Plans Ahead- Long View &
Big Picture
• Pursues Growth – Seeks
ways to grow and expand
capabilities
• Promotes Innovation –
questions status quo
• Focuses on current resultsdetails of implementation
• Maximizes efficiency
• Maintains order – gets
things done using
procedures and processes
Source:HBR Kaplan Kaiser2009
Approach to Leadership
Forceful – Exercising influence
with own intellect & energy
• Takes charge – own
initiative, gives direction
• Declares/decides – takes a
position and defends
• Pushes – sets high
expectations and holds
people accountable
Enabling – Creating conditions
for other people to contribute
• Empowers – gives others
the latitude to do their jobs
• Listens/includes-seeks
input, is open to influence
• Supports –shows
appreciation and sensitivity
HBR - Kaplan & Kaiser (2009)
STRATEGIC LEADERSHIP
Definition - Ability to anticipate, envision,
maintain flexibility and empower others to
create strategic change
 Long term competitiveness -Need to respond
quickly & appropriately to environmental
change
 Requires continually changing set of
assumptions and accepted wisdom as to how
industry operates
Ireland & Hitt (1999)
AME
STRATEGIC LEADERSHIP
TASKS
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•
•
•
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Develop Strategic Vision
Core Competence
Develop Human Capital
Effective Organizational Culture
Balanced Control Systems
Ethical Practices
Creation of
High Performance Organization:
1. Strategic Vision
2. Culture
3. Development of People
1. STRATEGIC VISION
• Definition - a concept for a new and desirable
future reality
• Provides an identity, shared values
• Collins & Porras study of long term
performers (Book -Built to Last)
Strategic Vision - Purpose
• Based in Charismatic Research
• Similar to mission, aim, target in that it
provides direction and focus
• But focus is future opportunities, represents
a change in strategy
• Taps people’s energy and emotion
STRATEGIC VISION
• Peter Senge (Fifth Discipline) -One of the
most powerful forces is a shared vision.
• Shared visions derive their power from a
common caring. People have a desire to be
connected to an important undertaking.
STRATEGIC VISION
EXAMPLES
• General Electric
• Starbucks – Howard Schultz
Jeff Immelt
• Took over 2001 – key changes in demographics, digital
connections, emerging markets, environmental issues
• New Strategy – Transform into Technology Growth Company
– Selected ten industries to focus on – increased R&D and
acquisitions in these areas
– Heathcare, energy &water, aviation & rail, financial
services
– 2008-less emphasis on financial services, NBC Universal
– Dec. announcement will sell NBC Universal to Comcast
STRATEGIC VISION
PITFALLS
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Need to build consensus & obtain
commitment versus compliance (Gertsner –
“if people do not buy the logic the change
will not stick”)
Takes time & patience - Not a one-shot deal
British Petroleum
Tony Hayward
• Failure to balance competing objectives – is there is a systemic failure of
safety culture and safety management
• Between 2007-2010n BP cut 7500 jobs and billions of dollars in costs ($4
billion in 2009 alone)
• Occupational Safety & health Administration found numerous safety
hazards in the Texas refinery as well as problems in Alaska and Mexico
operations
• Issue seems to be chose wrong metrics to track their own efforts
• Role of CEO – put in place the appropriate performance benchmarks and
supporting processes that ensure the company is meeting its most basic
priorities
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•
•
http://www.youtube.com/watch?v=EAewAQfrVcc&feature=related
http://www.youtube.com/watch?v=ZF64SPueNtw
http://www.youtube.com/watch?v=FZAVcPuXeSU&feature=related
2. Organizational Culture
• Definition: shared ideology, core
values which determines the way
things get done
• Gertsner – “culture is isn’t just one
aspect of the game – it is the
game”
Organizational Culture
• High performing organizations create
cultures around their strategic vision.
• Strategic leaders must sincerely believe
and continuously practice the stated
values. The executives must be careful to
lead by example.
3. People
• No job is more important than finding &
developing great leaders
• “Have to have the right people on the bus..in
the right seats” Collins in Good to Great
• The right people can adjust to change and de
• Develop other people
Development of People
Talented managers want:
• Exciting challenges
• Associated with an organization
that is making a difference
• Open, trusting, performance
oriented culture
People
• Disney’s Michael Eisner “Our real product
is managing talent. That is what we do
here, and we never lose sight of that,
because without it what do we have?
• Jack Welch - my whole job is picking and
providing opportunities to the right
people.
Starbucks – Howard Schultz
•
http://www.youtube.com/watch?v=TCxzjT3Hq-8
Environmental Change
• Severe Recession
– People reconsidering how can pay $4 for cup of coffee – price of
gasoline reaching $5 gallon
– Weekends were previously most busy – people staying home – had
hours could not afford help
– Social media – example wasting water in Britain in the making of
coffee became hot point for conservationists
• Increased competition
– McDonald’s and Dunkin Donuts competing on price – coupons –
using it to draw traffic for other items of food
– Local chains of café coffee producers popping up – and people felt
should by local
The best organizations are those
that offer us the opportunity to
attain meaning and fulfillment in
our work.
That have a passion for making
a difference.
NEW STYLE OF LEADERSHIP
 Lead with purpose, meaning and values
 Build enduring relationships with people
 Authentic (definition: genuine, worthy of
trust, reliance or belief)