ETM 5110 – LEADERSHIP STRATEGIES
FOR PRACTICING ENGINEERS AND
SCIENTISTS
LECTURE 5
JULY 9, 2003
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Session 5
• Leadership/Management in a Rapidly Changing
Environment
• Jack Welch (GE)
• Jim Goodnight (SAS)
• Jerry Ennis (Boldt Construction)
• Craig Weatherup (PepsiCo)
• (Ret.) General Dennis Reimer (MIPT)
• Keys to Success
• Personalizing Leadership
• Personal Mission Statement
• Wrap Up
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Leading/Managing in the New Paradigm
• Principle-centered Leadership
• Aligning
• Empowering (citizenship, ownership, trust)
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Environment
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Increased Globalization
Increased Competition
Technology Revolution/Evolution
Shorter Product Lifecycles
Downsizing/Rightsizing
Virtual Organizations
9-11
Enron, WorldCom, Martha Stewart, etc.
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Leading Science and Engineering Breakthroughs
• Inventions
– Next generation/strategic inflection
– Intellectual property/asset management
• Innovations
– Integrated/seamless solutions
– Multi-disciplinary approach
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Disruptive Innovations
• Create growth opportunities
• Breakthrough or incremental
• Strategic Inflection Point (SIP)
• Improve performance (e.g., faster microprocessors,
better battery for laptops)
• Sustaining
• Simpler, smaller, cheaper
– 1978 cost/MIP: $480/MIP
– 1985 cost/MIP: $50/MIP
– 1995 cost/MIP: $4/MIP
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
New Problems/New Solutions
Vision + Technology Innovation + Knowledge
Management = Value Creation, Improved
Productivity, and Sustained Financial
Performance
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Leadership Characteristics
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Visionary (Thinking Strategically, Globally, Commercially)
Effective Communicator
Character (Honesty and Integrity)
Innovative and Bold
Tough
Smart
Able to Assess Risks
Ability to Build Relationships (Internal and External)
Ability to Process Diverse Information
Embraces Technology
Broad Understanding of the Business
Focuses on Sustainable Growth
Creates Esprit de Corps
Gets Results
Role Model Behavior
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
What Really Works
(Nohria, Joyce, and Roberson, HBR, July 2003)
Primary Management Practices
• Strategy must be well understood by employees, customers, partners, and
investors
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built on clear value proposition
developed from outside (input from customers, partners & investors)
continuous fine tuning
clearly communicated to stakeholders
keep focused; grow core business
Flawless Operational Execution
– products/services that consistently meet customers’ expectations
– decision-making close to front line
– constantly improve productivity
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Culture
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inspire all managers and stakeholders to do their best
empower for improved productivity
reward achievement with performance-based pay
pay psychological rewards in addition to financial rewards
create challenging/satisfying work environment
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
What Really Works
(Nohria, Joyce, and Roberson, HBR, July 2003)
Primary Management Practices (cont’d.)
• Culture (cont’d.)
– establish and abide by clear organizational values
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Structure (whether by product, geography, customer, etc., key is to reduce
bureaucracy and simplify work)
– cooperation and exchange of information across the organization
– best people closest to the action
– seamless sharing of knowledge
Secondary Management Practices
• Talent
– recruit, train, develop, challenge, involve
– keep senior management actively involved in the development of people
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Innovation
– relentless pursuit of disruptive technologies
– don’t hesitate to cannibalize existing products
– apply technologies to enhance operating processes
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
What Really Works
(Nohria, Joyce, and Roberson, HBR, July 2003)
Secondary Management Practices (cont’d.)
• Leadership
– choosing great leaders to raise performance significantly
– link pay to performance
– encourage managers to strengthen connections with people at all levels of the
organization
– inspire management to hone its capabilities to spot opportunities and problems
early
– appoint BOD whose members have a substantial stake in the organization’s
success
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Mergers and Partnerships
– internal generation of growth is essential
– companies can, however, master mergers and acquisitions
– enter new businesses that leverage customer relationships and compliment core
strengths
– make most of both partner’s talents
– develop a system for identifying, screening, and closing deals
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
The Value of Shared Values*
• Foster strong feelings of personal effectiveness.
• Promote high levels of loyalty to the organization.
• Facilitate consensus about key organizational goals and the
organization’s stakeholders.
• Encourage ethical behavior.
• Promote strong norms about working hard and caring.
• Reduce levels of job stress and tension.
• Foster pride in the organization.
• Facilitate understanding about job expectations.
• Foster teamwork and esprit de corps.
*Kouzes & Posner, “Seven Lessons for Leading the Voyage to the
Future.”(From Drucker, The Leader of the Future, page 99-110)
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Without Values, Communication, Trust:
• Organizational pathologies
• Dysfunctional organizations
• Candidate for turnaround/death spiral
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
The Abilene Paradox
(How projects, ideas gain momentum toward questionable end)
Examples:
• RCA’s SelectaVision Videodisc Recorder
– Lost $580M
– Tied up resources for 14 years
• AT&T’s Picture Phone
– Years of wasted resources
– Product price exceeded customer willingness to pay
Key: Multi-disciplinary teams and well-defined review processes
Engineering and Technology Management
“Companies are great not because they focus on
cost or flexibility of speed but because they have
the ability to manage transitions.”
Hau L. Lee
Thomas Professor of Operations, Information and Technology,
Stanford University
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
A New Division of Markets
Silverstein & Fiske, “Luxury for the Masses.” (HBR, April 2003)
Goods Cat.
Apparel
Autos
Beer
Coffee
Kitchen
appli.
Leather
goods
Lingerie
Personal
care
Pet food
Restaurants
Retailing
Spirits
New Luxury
Diesel
BMW, Mercedes-Benz
Sam Adams
Starbucks
Viking Range
Coach
Victoria’s Secret
Aveda
Nutro
Panera Bread
Pottery Barn, WilliamsSonoma
Belvedere, Grey Goose
Middle Market
Gap,Levi
Strauss
Pontiac, Ford
Coors, Miller
Maxwell House
Hotpoint
Wilsons
Maidenform
Suave, Revlon
Alpo
Burger King
Sears
Absolut,
Smirnoff
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Old Luxury
Brooks
Broths,Chanel
Cadillac, RollsRoyce
Heineken
Blue Mountain
Aga
Louis Vuitton
La Perla
Kiehl’s
Sirloin
Morton’s
Neiman Marcus
Bombay Sapphire
ETM 5110 – LEADERSHIP STRATEGIES
Ranking of Leadership Styles in Order of Positive Impact
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Authoritative (“come with me”)
Affiliate (“people come first”)
Democratic (“what do you think?”)
Coaching (“try this”)
Pacesetting (“do as I do, now!”)
Coercive (“do what I tell you”)
Source: Daniel Goleman, “Leadership That Gets Results.”
Harvard Business Review, March 2000.
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Leader/Follower Expectations
What Followers Expect from Leaders:
• Honest
• Competent
• Sense of Direction
• Constancy
• Inspire
What Leaders Expect from Followers:
• Honest
• Competent
• Dependable
• Cooperative
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Loyal
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
So,
• What’s the Bottom Line?
• What’s the Essence?
• What’s the Common Denominator?
• What one Word…?
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Leadership is CREDIBILITY!
Engineering and Technology Management
ETM 5110 – LEADERSHIP
STRATEGIES
Common Sense
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Philosophy
Timing
Zero defects
Listen
Develop successor
Not loved but respected
Understand yourself
Platoon leaders up front
Balance
Focus Down
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Action Steps for Successful Leadership
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Clarifying Your Vision, Values and Actions
Examining What You Pay Attention To and What You Reward
Measuring Your Effectiveness as A Leader
Discovering What People Value
Reacting Appropriately to Critical Incidents
Becoming a Credible Leader
James Kouzes and Barry Posner, What Followers Expect from
Leaders, Jossey-Bass, 1988, ISBN: 1-55542-908-4.
Engineering and Technology Management
A Time Line of Major Crises
= Normal Crisis
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= Abnormal Crises
 = Natural Disaster
Mitroff & Alpaslan, “Preparing for Evil,” HRB. April 2003, pgs. 109-115.
Kobe
Japan
earthquake
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Sarin gas
Attacks in
Toyoka
subway
• TC &
W
Pentagon
terrorist
attacks
Barings
Bank
collapse
ValuJet
flight 592
crash
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OKC
bombing
TWA
flight 800
crash
1995
1996
Izmet,
Turkey
earthquake
1997
1998
1999
Concor
de crash
•nthrax in
A
the mail
FordFirestone
tire crisis
•nron,
E
Andersen
&
WorldCom
corporate
scandal
2000
2001
Engineering and Technology Management
Space
shuttle
Columbia
explosion
2002
2003
“Heroes are those who do exceptional
things in exceptional times…”
From the movie U571
(Author unknown)
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Final Assignment:
What Makes A Successful Leader
(400 Words or Less)
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Burning Questions for 2003:
• Value and Values: What Is The Road Ahead?
• Strategy: What Are Your Strategic Limits?
• Decision-Making: Why Do You Make A Good or Bad
Decision?
• Leadership: How Long Should Leaders Last?
• Global Governance?
HBR Business Conference, April 30 – May 1, 2003, New York
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Successful Leader Assignment
Warren Buffet
Michael Deli
Bill Gates
Lou Gerstner
Andy Grove
Abraham Lincoln
Colin Powell
Daniel Vasella
Sam Walton
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Berkshire Hathaway
Dell Computers
Microsoft®
IBM
Intel
16th President, U.S.A.
Secretary of State
Novartis
Wal-Mart
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Common Themes from Assignment
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Direction
Employee Involvement
Communications
Focus on Customers
Products/Services
Continuous Improvement
Establish “Go Teams”
 Quality Focus
 Customer Perception of Quality
 Supply Chain Mgmt./E-Business
 Costs
 Profit Sharing
 Revenue/Profitability
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Common Themes
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Values/Mission
Customer Focus
Energy
Team Goals
Teamwork
Passion for Excellence
Work Force
Integrity (Moral Clarity)
Performance Results
Constancy
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Shared Values
• Clear
• Compelling
• Concise
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Personalized Leadership
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Know what will make a difference…
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ETM 5110 – LEADERSHIP STRATEGIES
3 C’s of Transforming Commitments
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Is your commitment simple?
Is your commitment concrete?
Can you measure progress?
Can you quantify your measure?
Will you measure progress frequently?
Is your measurement process credible?
Have you repeated your commitment often enough?
Could employees pass a pop quiz on the details of the commitment?
Credible (Have you…
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made investments that are hard to reverse?
burned your bridges behind you?
put your own reputation at stake?
put your company’s reputation at stake?
put your money where your mouth is?
assigned your best people to the challenge?
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
C’s of Transforming Commitments (cont’d.)
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Courageous (Are you…
– breaking from the pack?
– ignoring the “experts”?
– making a quantum leap?
– refusing to hedge your bets or cover your backside?
– undoing your predecessor’s actions?
– doing it as quickly as you can?
Donald Sull, “Managing by Commitments.” (HBR, June 2003, page 90)
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Insights on the Art of Influence*
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The only job security you have today is your commitment to continuous
personal improvement.
When you stop learning, you stop growing.
Life is about getting A’s.
None of us is as smart as all of us.
Don’t work harder, work smarter.
It’s more important as a manager to be respected than to be popular.
You get from people what you expect.
Think Big! Act Big! Be Big!
(Norman Vincent Peale)
Take time to identify core values.
Never, Never, Never, Give up!
Without vision, the people perish. (Proverbs 29:18, paraphrased)
*Ken Blanchard,“The Heart of a Leader.”Honor Books, ISBN: 1-56292-488-5
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Doing the Right Things for:
• Employment Continuity and Advancement
• Desired Lifestyle
• Personal Balance
…Personalizing Leadership
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
SWOT Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
SMART Objectives
• Specific
• Measurable
• Achievable
• Realistic
• Time Bound
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Some Parting Thoughts
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You are where you are
Self-assessment
360 degree feedback
Find/be a mentor
Discipline and commitment
Sphere of influence/sphere of concern
Effectiveness (“The 7 Habits…”)
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
From Individual Contributor to Leader/Manager
Ten Traits to Transition
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Positive, upbeat attitude
Can-do spirit
Commitment to continuous learning
Team player
Energize others/energized by others
Self-starter
Flexible/adaptable
Personal balance
Valuing diversity
Sense of humor, admit mistakes, help make your boss
succeed
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Reimer’s Rules for Leadership
1.
Do What’s Legally and Morally Right Every Time
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Be All You Can Be (U. S. Army Slogan)
3.
Treat Others As You Expect to Be Treated
Gen. Dennis Reimer (Ret. USA)
Executive Director, National Memorial Institute
for the Prevention of Terrorism (MIPT)
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
For Your Library
• Seven Habits of Highly Effective People (Steven
Covey)
• Becoming A Manager (Linda Hill, HBR Product
#1822, May 2003)
– 19 new managers over course of first year in
management role
– Difficulties and keys to transitioning
– Practical suggestions
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
Habit 1.
Habit 2.
Habit 3.
Habit 4.
Habit 5.
Habit 6.
Habit 7.
Be Proactive
Begin with the End in Mind
Put First Things First
Think Win/Win
Seek First to Understand, Then to Be Understood
Synergize
Sharpen the Saw
Steven Covey, The 7 Habits of Highly Effective People.
Engineering and Technology Management
ETM 5110 – LEADERSHIP STRATEGIES
GO DO THE RIGHT THING
AND
GO DO THINGS RIGHT
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“Let’s Roll”
Todd Beamer, Hero
UA Flight 93
9-11-01
Engineering and Technology Management
Play Like A Champion Today
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Life is about choices—make as many good
ones as you can.
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