Where’s the beef? The Business Leadership Pay-off

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Wheres the beef?The Business Leadership
Pay-off

• Stock Price of companies perceived to be
  well-led, creating cultures of adaptation, grew
  900 versus 74 for companies perceived to lack
  good leadership

901
Ten Year Elapsed Time
74
Institute for Strategic Change
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The Essence of Leadership

• I. The Context of Organizational Leadership in a
  Digital Age
• II. Four Necessary Competencies

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• In my opinion, there are two kinds of businesses
  in the United States
• those that are heading for the cliff and know it,
• and those that are heading the same way but dont
  know it.

• Jack Welch General Electric

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• For the first time in 15 years, we have found it
  necessary to change our corporate mission
  statement.

- Andy Grove, Intel March 2000
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• CEOs appointed after 1985 are three times more
  likely to be fired than CEOs who were appointed
  before that date.
• Nearly half of all current CEOs have held their
  job for less than three years. In the past five
  years alone, close to two-thirds of all companies
  have installed a new CEO.
• CEO turnover occurred at nearly the same rate in
  companies throughout the world, regardless of
  country or industry (the average number of CEOs
  per company 1.9 in 10 years).
• 34 of Fortune 100 companies have replaced their
  CEOs since 1995.

-DBM Drake Bean Morin, May 31, 2000
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CEO Churning Business Week/December 11, 2000
Jill Barad Mattel
Richard McGinn Lucent
John McDonough Newell Rubbermaid
Dale Morrison Campbell Soup
M. Douglas Ivester Coca-Cola
Robert Knowling Covad
Michael Hawley Gillette
Durk Jager Procter Gamble
Richard Thoman Xerox
Lloyd Ward Maytag
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Years To Attain 25 Market Share
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The Deal at Apple
Heres the deal Apple will give you Heres
what we want from you. Were going to give you a
really neat trip while youre here. Were going
to teach you stuff you couldnt learn anywhere
else. In returnwe expect you to work like hell,
buy the vision as long as youre hereWere not
interested in employing you for a life-time, but
thats not the way we are thinking about this.
Its a good opportunity for both of us that is
probably finite.
P. Capelli, The New Deal at Work 99
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The New Employment Contract

• We can't promise you how long we'll be in
  business.
• We can't promise you that we won't be bought by
  another company.
• We can't promise that there'll be room for
  promotion.
• We can't promise that your job will exist until
  you reach retirement age.
• We can't promise that the money will be
  available for your pension.
• And we can't expect your undying loyalty-and we
  aren't sure we want it.

- From a Company Bulletin Board
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Analog vs. Digital
Linear/Continuous Non-linear/Discontinuous Maps
Compasses Engineering/Mechanics Biology/Living
Systems COP (control/order/predict) ACE
(align/create/empower) Big Picture Big
Story Conventional Warfare Terrorism
Cyberwarfare Experience Beginners
Mind Analytical Detachment Keep in Motion (OODA
Loop) (ALA Loop) Specialization Deep-Generalis
t Answers Discerning Questions Hubris Humilit
y (Vulnerability)
Source Karl Weick
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• Sensemaking is about navigating by means of a
  compass rather than a map.
• Maps, by definition, can help only in known
  worlds -- worlds that have been charted before.
• Compasses are helpful when you are not sure where
  you are and can get only a general sense of
  direction.

- Karl Weick
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Purpose

Direction
Passion

Meaning

Trust
Organizational Integrity

Personal Integrity

Hardiness


Hope/Optimism
Hardiness the notion that things will

generally work out well, a confidence

that one can influence the circumstances

of ones life.
Bias Toward Action/
Results
Risk/Curiosity/Courage



CODA LEADERS AND LED ARE INTIMATE ALLIES THE
MOST POWERFUL PARTNERSHIPS.
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What Do the Following Leaders Have in Common?
SUSAN B. ANTHONY MARY KAY ASH ATTILA the HUN JAN
CARLZON ANDREW CARNEGIE JESUS CHRIST ROBERT
CRANDALL KING DAVID MAX De PREE THOMAS
EDISON MICHAEL EISNER HENRY FORD ROBERT
GALVIN MOHANDAS GANDHI
BILL GATES LOUIS GERSTNER BILL GORE KAY
GRAHAM ANDY GROVE ADOLF HITLER LEE IOCOCCA PHIL
JACKSON THOMAS JEFFERSON STEVE JOBS JOHN
XXIII JFK MARTIN LUTHER KING, JR. HELMUT KOHL
ABRAHAM LINCOLN GEORGE C. MARSHALL J. ROBERT
OPPENHEIMER GEORGE C. PATTON RONALD REAGAN JOHN
D. ROCKEFELLER ANITA RODDICK FDR SITTING BULL SAM
WALTON GEORGE WASHINGTON JACK WELCH LEE KWAN
YEW ANDREW YOUNG
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Leaders vs. Managers

• THE LEADER
• innovates
• is an original
• develops
• focuses on people
• inspires trust
• has a long-range perspective
• asks what and why
• has his eye on the horizon
• originates
• challenges the status quo
• is his own person
• does the right thing

• THE MANAGER
• administers
• is a copy
• maintains
• focuses on systems and structure
• relies on control
• has a short-range view
• asks how and when
• has his eye always on the bottom line
• imitates
• accepts the status quo
• is the classic good soldier
• does things right

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• Since 1984, the year The Body Shop went public,
  as far as Im concerned, the business has existed
  for one reason only -to allow us to use our
  successes to act as a force of social change, to
  continue the education of our staff, to assist
  development in the Third World, and above all, to
  help protect the environment.

- Anita Roddick Founder, The Body Shop
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Purpose

Direction
Passion

Meaning

Trust
Organizational Integrity

Personal Integrity

Hardiness


Hope/Optimism
Hardiness the notion that things will

generally work out well, a confidence

that one can influence the circumstances

of ones life.
Bias Toward Action/
Results
Risk/Curiosity/Courage



CODA LEADERS AND LED ARE INTIMATE ALLIES THE
MOST POWERFUL PARTNERSHIPS.
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Organizational Integrity
Competence Constancy Caring Candor Congruity
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• In every business there is always someone who
  knows exactly what is going on.
• That person should be fired.

- Anonymous
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CANDOR

• My organization encourages people to take the
  time to communicate openly, even about difficult
  issues.
• My organization provides training and development
  for the skills needed to engage in open
  communication.
• There is very little fear of speaking openly
  about issues.
• People respect different viewpoints and
  individual differences.
• Dissent and questioning are encouraged.
• People tend to be real, not superficial.

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Personal Integrity
Ambition
Competence
Moral/Ethical Compass
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Purpose

Direction
Passion

Meaning

Trust
Organizational Integrity

Personal Integrity

Hardiness


Hope/Optimism
Hardiness the notion that things will

generally work out well, a confidence

that one can influence the circumstances

of ones life.
Bias Toward Action/
Results
Risk/Curiosity/Courage



CODA LEADERS AND LED ARE INTIMATE ALLIES THE
MOST POWERFUL PARTNERSHIPS.
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• You miss 100 of the shots you dont take.

- Wayne Gretzky
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On Quick Decisions
How many times in your life have you ever made a
call where you said later, Gee, I wish I had
waited six more months before I did that? Make
the call, live with it, go with it
- Jack Welch General Electric
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Exemplary Leadership
In Service of Constituent Needs
To Help Create
Leaders Provide

Purpose
Clear Goals and
Passion
Direction
Objectives
Meaning
Organizational Integrity
Reliability and
Trust

Personal Integrity
Consistency

Hardiness

Energy and
Hope/Optimism
Hardiness the notion that things will


Commitment
generally work out well, a confidence


that one can influence the circumstances of ones
life.
Bias Toward Action/
Confidence and
Results

Risk/Curiosity/Courage
Creativity


CODA LEADERS AND LED ARE INTIMATE ALLIES THE
MOST POWERFUL PARTNERSHIPS.