adapting your ceo leadership style

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The CEOs from RSC Holdings, Hospital Sisters Health System, Henniges Automotive, Avaya, and United Space Alliance on:

Adapting Your CEO Leadership Style to Match

the Values of Your Organization

Erik OlssonPresident and CEO, RSC Holdings

Stephen RonstromPresident and CEO, HSHS Division (Western Wisconsin)

Hospital Sisters Health System

Rob DePierreCEO, Henniges Automotive

Kevin J. KennedyPresident and CEO, Avaya

Virginia A. “Ginger” Barnes President and CEO, United Space Alliance, LLC

Because positive values such as honesty and integrity are seen as socially and professionally desirable, all CEOs would like you to believe their company follows them. In reality, however, the business world contains many tempta-

tions to deviate from the ethical high road, including those that seem directly related to financial survival. How can today’s CEO follow their company’s stated values while still remaining competitive in tough markets? The authors of this ExecBlueprint begin by asserting that modeling a positive value set is good business: such orga-nizations tend to not only win the trust and repeat business of customers, they also reap the rewards of more productive and innovative efforts from employees. But, in order to create such an environment, the CEO must not only communicate the company values in every forum; they must live them in daily interactions — and never assume the process will be easy. For example, it may require terminating a popular employee, accepting criticism for a reasoned decision, sharing bad news, or even adjusting their leadership style to meet new challenges. ■

Action Points

I. What Are Examples of Positive Values that Can Drive Organizations?Because your customers need to believe that your products and services will deliver the experience they expect, trust is an essential foundation for any business relationship. An organization earns that trust by demonstrating that it adheres to positive values, such as integrity, respect, and competence, to the extent that they have become part of the culture.

II. The Bottom LineThe authors believe that companies that operate under a shared value set perform stronger as a unit. In addition to tracking financial performance, other indicators that your application of values is yielding positive results include happy customers that continue to buy, employees that try out new ideas, and managers that focus on career development.

III. Must-Have Leadership Domains for Expressing Positive ValuesConsciously or unconsciously, a CEO’s values (and those of the company) inform every decision. CEOs that are determined to consistently embody a particular value set, therefore, need to be aware of how it applies across the diverse areas of their responsibility, including strategy development, communications, and resource allocation.

IV. The Golden Rules for Onboarding and Maintaining a Values-Driven WorkforceWhen it comes to modeling company values, you will probably find that employees will act according to what you do — not what you say. That said, you should plan to reinforce values with employees at every opportunity: during your first encounters, new-employee orientations, recognition events, problem-solving activities, and public presentations.

V. Essential Take-AwaysBefore you can adapt your leadership style to match particular company values, you need to demonstrate the importance of adhering to a value set even when it’s tough, such as in situations when people disagree, or are criticizing you. However, if you are able to express your values in all contexts, your colleagues at all levels will respond in kind.

Contents

About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . p.2

Erik Olsson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p.3

Stephen Ronstrom . . . . . . . . . . . . . . . . . . . . . . . . . p.7

Rob DePierre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p.10

Kevin J. Kennedy . . . . . . . . . . . . . . . . . . . . . . . . . . p.13

Virginia A. “Ginger” Barnes . . . . . . . . . . . . . . . . p.16

Ideas to Build Upon & Action Points . . . . . . . . p.18

© Books24x7, 2010 About the Authors ExecBlueprints 2

About the Authors

Now CEO of Henniges Automotive, Rob DePierre has served as executive vice president, Global Exhaust Systems, Benteler Automotive;

president, North American Operations, Benteler

Automotive; and CEO, Android Industries, during the course of his career.

He has received a B.S. and M.S. in Mechanical Engineering from Western Michigan University, and

was named the Mechanical Engineering Department’s Alumni of the Year for 2010.

Rob DePierreCEO , Henniges Automotive

Erik OlssonPresident and CEO , RSC Holdings

Erik Olsson has served as president, chief executive officer, and a director of RSC since 2006. Mr. Olsson joined RSC in 2001 as chief finan-

cial officer and in 2005 became RSC’s chief operating officer. RSC rents equipment and provides maintenance and support services to approximately 300,000 indus-trial and non-residential construction businesses across North America.

Mr. Olsson applies manufacturing models to enhance the RSC’s industry-leading position and increase shareholder value. In addition, he built a

business model that delivers the highest value to RSC’s customers through a decentralized network of stores and on-site services. By focusing the company on high-margin rental revenues and active fleet management, Mr. Olsson is helping RSC achieve significant market share gains while sustaining attractive returns on capi-tal employed.

Under Mr. Olsson’s leadership, RSC became a public company in 2007, traded on the New York Stock Exchange (NYSE:RRR).

Prior to 2001, Mr. Olsson held a number of senior financial management positions at Atlas Copco Group in Sweden, Brazil, and the U.S., including his most recent assignment as chief financial officer for Milwaukee Electric Tool Corporation in Milwaukee, WI, from 1998 to 2000.

Stephen F. Ronstrom, MHA, serves as president and CEO of Hospital Sisters Health System Division (Western Wisconsin). Appointed admin-

istrator of Sacred Heart Hospital (Eau Claire, WI) in 1998, today he leads the regional HSHS mission through Sacred Heart Hospital and St. Joseph’s Hospital (Chippewa Falls, WI).

Mr. Ronstrom combines health care business expertise and management with social service. He led Wisconsin hospitals in 2008 by pledging 10 percent of Sacred Heart’s $2 million food budget to purchasing local food from family farms. Under his leadership,

Sacred Heart received prestigious honors including the Practice Greenhealth Environmental Leadership Award for innovations in environmentally responsible health care and the 2009 Governor’s Forward Award of Excellence, the highest achievement level possible under the Wisconsin Forward Award.

He was also personally honored with the Catholic Charities “In My Name” award, presented in 2008 by La Crosse Diocese Bishop Jerome Listecki for contribu-tions to the social mission of the church. A pioneer in accessibility, Sacred Heart Hospital, under Mr. Ronstrom’s leadership, is the only health care provider

in the community to have always provided care for patients covered by BadgerCare (the State of Wisconsin’s program for the uninsured) and continues today as the largest provider in the region.

Mr. Ronstrom is also a fellow of the American College of Healthcare Executives and has served on local boards including the United Way, the Economic Coalition, Catholic Charities, and the Chamber of Commerce. He currently serves on the board of the Wisconsin Hospital Association.

Stephen RonstromPresident and CEO, HSHS Division (Western Wisconsin) , Hospital Sisters Health System

Virginia A. “Ginger” Barnes has recently been named president and chief executive officer (CEO) of United Space Alliance, LLC. She will

be responsible for the direction, development, and operations of the company.

She previously served as vice president, chief oper-ating officer, and deputy program manager for The Boeing Company’s Brigade Combat Team Modernization Program, formerly the Future Combat Systems Program. In addition to overall program execution, Ms. Barnes’ responsibilities in that role included program financials, customer interface, human resources, strategic staffing, LEAN, and employee engagement.

Ms. Barnes originally joined Boeing in 1981, in Huntsville, Ala., as a financial cost analyst. From 2006-2008, she was Boeing’s vice president of weapons programs and the St. Charles Site Leader. She led the integration of Direct Attack Programs (JDAM, Small Diameter Bomb) with Surface Warfare (Harpoon, SLAM-ER) missiles. From 2004-2006, she was vice president of naval support systems where she was responsible for all sustainment solutions for Navy and Marine Corps customers. She developed this customer-facing organization, consolidating all logistics functions and programs to include performance-based logistics

programs (current and proposed), depot partnering, and field service representation.

Prior to that she was the director for Business Management of the F/A-18 Program. Appointed to that position in May 2002, her responsibilities included providing a focal point for all services related to Business Management for the F/A-18 Program.

Virginia A. “Ginger” Barnes President and CEO , United Space Alliance, LLC

Kevin Kennedy is the president and chief execu-tive officer of Avaya, a leading global provider of business communications applications, sys-

tems, and services.

Prior to joining the company in January 2009, Dr. Kennedy served as president and CEO of JDS Uniphase Corporation, a position he held since September 2003. He had also served as a member of the JDSU board of directors since November 2001. Before JDSU, he served

as chief operating officer of Openwave Systems, Inc., a position he held from August 2001 to September 2003. Earlier, Dr. Kennedy spent close to eight years at Cisco Systems, Inc., most recently as senior vice presi-dent of the Service Provider Line of the Business and Software Technologies Division.

In 2006, Dr. Kennedy was honored by the School of Engineering at Rutgers as their Alumnus of the Year and awarded an Alumni Medal of Excellence. He is a

co-author of Going the Distance: Why Some Companies Dominate and Others Fail, published in 2003.

Dr. Kennedy was an adjunct professor at Rutgers from 1982-1984, and has published more than 30 papers on computational methods, data networking, and issues of technology management.

Kevin J. KennedyPresident & CEO , Avaya

☛ Read Rob’s insights on Page 10

☛ Read Steve’s insights on Page 7

☛ Read Erik’s insights on Page 3

☛ Read Ginger’s insights on Page 16

☛ Read Kevin’s insights on Page 13

Erik OlssonPresident and CEO , RSC Holdings

© Books24x7, 2010 Erik Olsson ExecBlueprints 3

Evolution of a Values-Oriented CompanyRSC rents equipment and provides maintenance and support services to approximately 300,000 indus-trial and non-residential construc-tion businesses across North America. We have 450 stores and 4,200 employees. In addition to being one of the largest companies in this sector, we’re considered to be the industry leader. Integral to our success and leadership posi-tion is our organizational values.

I can attest first-hand that com-panies with a shared value set per-form stronger as a unit. When I joined RSC as CFO in 2001, it was struggling to find an identity. The workforce was disparate and there was no clear agenda. This state of affairs was detrimental to progress and performance. Initially the focus was on stabilizing the company, building a foundation, and putting processes in place to grow the business.

In 2006, I became CEO and placed immediate emphasis on establishing a value set to unify our organization and guide our busi-ness practices. Our core values are focused on integrity and openness, safety, sustainability, passion for people, commitment to our cus-tomers, and continuous improve-ment. Each speaks to our business

and what we care about most. They enable our employees to under-stand the principles and logic behind what the company does. Though developed years ago, these values remain the cornerstone for how we perform, both individually and as a company. When it comes to values, consistency and longev-ity are critical in my view. Unless you can sustain your values over time, they will never become part of your culture and will therefore become irrelevant.

Recent Value-Driven ProgressThere has been tangible improve-ment in our performance since the introduction of our value set. We have seen our customer satisfaction and loyalty levels rise from the mid-50s to the high 60s since 2005, placing us among leading world-class service companies as mea-sured by the Net Promoter® Score (a survey of how likely customers are to recommend a company to a friend or colleague). I believe these results are closely correlated to our deep commitment to our values.

However, without buy-in from leadership, values are hollow and ineffective. Values should be defined by the fact that management lives and breathes them every day. This is why I take an active role in rein-forcing RSC’s values. Our values

are wholly integrated throughout my management practices and stra-tegic initiatives. They reflect my communication and interaction with employees, customers, share-holders, and other members of RSC’s community.

On occasions when we find that someone cannot live up to these values, we know they will not be successful at RSC and are better off working somewhere else. As we strive to maintain the integrity of

As always, the employees will do what you do (not what you say), and allowing values to be violated dilutes the system very quickly.

Erik Olsson

President and CEO

RSC Holdings

Erik OlssonPresident and CEO

RSC Holdings

“I’ve found there to be great advan-tages of cultivating a single corporate culture. By staying engaged with our employees and communicating on key topics, I ensure that our organization also recognizes the value of this. Visible leadership has had a big impact on unifying RSC.”

• With company since 2001 (began as CFO)

• Built business model that features a decentralized network of stores and on-site services

• Previously CFO, Milwaukee Electric Tool Corporation

• Degree, Business Administration and Finance, University of Gothenburg

Mr. Olsson can be e-mailed at [email protected]

Erik OlssonPresident and CEO , RSC Holdings (continued)


the value system, identifying such individuals is important. As always, the employees will do what you do (not what you say), and allowing values to be violated dilutes the sys-tem very quickly.

Importance of the Company’s CultureToday I have great confidence in the strength of RSC’s culture. Our culture is distinct in the equipment rental industry. RSC’s 4,200 employees have a firm understand-ing of our culture and have posi-tively embraced it. People who join us from other companies feel it very clearly and quickly. This is the result of a dedicated effort to build a lasting culture that distinguishes RSC in the marketplace. When I joined the company 10 years ago it was a rollup of a large number of small acquisitions with no unified culture. When I became CEO five years later, I worked with our team to establish RSC’s values and to build a culture that was closely cor-related to our values and business strategy.

RSC’s culture is derived from our values and, given its signifi-cance to our business, is nurtur-ed daily. We seek to maintain a culture of performance driven by trans parency and accountability. This fosters communication and information sharing throughout the organization — i.e., across stores, districts, and regions throughout North America. Such a orientation ensures that we are aligned with our customers and responsive to their needs.

However, we needed to not assume that our new culture would be easily integrated into the orga-nization. Visible leadership was

central to the successful implemen-tation of our organization’s culture. I made it my practice to regularly engage with our employees about our strategic initiatives and goals. I articulated the importance of performance as the core of our

culture and its connection to results. Because of our high-performance culture, we are always looking at what’s best for the company and our key stakeholders. Consequently, we’re often first to market with innovative products and services.

RSC’s Core Values

Safety- and Results-DrivenPerforming our jobs in a manner that is safe for our employees,

customers, and the general public supports the consistent achievement of outstanding financial and operational results.

— Safety First

Integrity and Openness in All That We DoConducting our business with unwavering integrity and openness

is essential to providing an environment of trust and respect.

— Honesty and Fairness, Access, and Transparency

Passion for People and Diversity Developing a passionate and diverse workforce is the best way to

serve our customers and drive company results.

— People Make it Happen

Commitment to Continuous Improvement Innovating and constantly improving our processes and services

is critical for customer satisfaction and market leadership.

— Premier Products and Innovative Services

Decentralized to Be Close to the Customer Empowering and supporting all of our people to provide

outstanding customer service by making informed decisions that exceed customer expectations.

— Rental is a Local Business



Ensuring Decisions Remain Aligned with Core ValuesThe CEO needs to make sure that all employees understand the company’s values. This goes beyond verbal com-munication. As leaders, people notice everything we do, much more than we dare to acknowledge. However, I tell my C-level team to use this as an advantage. Any time that I have the opportunity to do or show some-thing that is aligned with our values, I do it and encourage the team to do the same. Our behavior and perfor-mance demonstrate alignment with our values; this strengthens our rep-utation and credibility. I’m very mindful to always lead by example.

Every decision we make at RSC is measured against our values. Does our culture express these val-ues? Is it innovative? How does it help our customers? We believe this strengthens our ability to operate in the best interests of the com-pany. In turn, we can deliver the best service to our customers.

Any action that compromises our value system is treated seri-ously. We take swift steps to en-sure the appropriate discipline is administered — up to and includ-ing potential dismissal of an employee if they behaved in an un-acceptable manner. We simply can-not tolerate breaches to our corporate values. Employees respect such direct action and resolution; they both preserve morale and pro-tect the culture. When managers see something wrong, they have an opportunity to model good, visible leadership by making the right decisions. If the decision to do so is aligned with our values, it is the right one to make. This should be a very open, transparent, and fair process.

If you, as CEO, can inspire a company to act as one entity, you will give it a competitive advan-tage. We are able to maintain a flat organization because everybody knows what’s expected of them and why. Consequently, we can change or take a different direction very quickly. Thanks to my leadership style of consistency, communica-tion, and openness, I have strength-ened my credibility with employees over the years. When we align all these areas, we act as one in front of customers. You can’t have lead-ership that’s not aligned with values.

Essential Components of an Effective Leadership StyleLeaders need to be part of and understand what’s going on throughout their companies. In addition, their personality or ego should be carefully managed. Com-panies with leaders that can share ideas and information and accept criticism reap greater rewards than those whose leaders cannot.

The following components influ-ence how I like to allocate my

time in the organization. I place great emphasis on strategy, people, allocation of resources, and execution.

StrategyA thorough understanding of the

company, the competition, our cus-tomers, and macro trends is key to developing strategic initiatives.

People• Frequent communication

across all levels is essential to support initiatives and rein-force values and culture.

• The leader needs to play an active role in hiring, training, and retaining the best people. For example, I interview all candidates reporting to the C-level, including all vice presi-dent positions, of which there are about 36. In addition, there are probably 300 key positions in the company for which I will interview the final candidate to ensure that we get the best talent, and to give the candidate the opportunity to speak directly with the CEO so that they can better understand RSC and the culture.

Expert Advice

In my experience, effective leadership begins with conviction in your abilities. Before joining RSC, I worked for a global manufacturer for 18 years. Though I lacked direct equipment rental know-how, I felt strongly that my process-related manufacturing experience would resonate at RSC. My career had also taken me across the world, giving me a broad perspective about business practices. I see great value in having experience outside of your company’s industry. In my case, it has proven instrumental to the company’s transition and growth.

I came to the realization that communication is invaluable during my tenure at the global manufacturer. When you’re sitting in Stockholm (as I did for a while) and communicating with someone in Brazil or China, you learn to be clear, concise, and frequent. This remains true at RSC. Our Scottsdale corporate office is a long way from New York, Edmonton, and many of our other store locations. Still, we’re completely engaged and I personally reach out to each and every one of them.



I’ve been doing this since I became CEO and it’s been a great process. We call it the “grandfa-ther” principle. In the beginning I sent back a lot of candidates who weren’t aligned with the organiza-tion’s values or the direction I saw the company going. Over time this process has raised the bar on find-ing the right people. I conduct an average of 60 interviews annually. Though it’s a very time-consuming process, I think it’s one that really strengthens and aligns the organization.

Allocation of resources• Allocating capital, human

resources, and time to areas where they will have the most impact is one of the most important responsibilities for CEOs and other C-level executives. We consider all of

our resources as scarce and therefore have to develop a solid understanding of where it makes most sense from a return point of view to allocate these resources, whether they will be spent on fleet, new store locations, or people. In order to make the best deci-sions, there is no substitute for analysis, data, and processes.

Execution• We then need to ensure that

our business performance is aligned with our values of transparency and accountabil-ity, and that we deliver on what we said. As part of this process, and in order to drive urgency, I always ask the team four questions:

• “Are we doing the right things?”

• “Are we doing enough?”

• “Can we do it faster?”

• “Do we have the right people in place?”

I ask my team to consider these questions at all times as part of a never-ending process to maintain our leadership position. They, in turn, reiterate these questions when they meet with their region, district teams, or stores. As a result employ-ees at all levels are focused on per-formance. When you go through these four questions, there’s always at least one “no.” On many occa-sions, there are two or three “no’s.” I view this as a positive. It means we’re constantly striving for excel-lence and there is always an opportunity to improve. ■

Stephen RonstromPresident and CEO, HSHS Division (Western Wisconsin) , Hospital Sisters Health System

© Books24x7, 2010 Stephen Ronstrom ExecBlueprints 7

The Importance of a Values-Oriented Leadership StyleThe core values of the Hospital Sis-ters Health System (HSHS) are care, competency, respect, and joy. Every five years we develop a stra-tegic plan and the sisters review that plan to ensure our core values are being realized.

For a CEO or any leader of an organization, it is important for actions to match words. Failure to do so creates a lack of integrity that leads to problems all the way through the organization. It is the number-one job of the CEO to uphold the mission and core values of the organization and to engen-der them. It is also important to hire the right people and make sure they understand and adhere to the core values of the organization. At HSHS we have rather stringent hir-ing processes that include peer interviewing. Everybody from housekeeping to the CEO inter-views the people that they work with and then those people help decide who is going to be hired.

We also have a clear orientation process, which we do the first week a new person is hired. Then, after 90 days, all new hires are brought in again to go through various training material. We have found that it is better to get people out into our system for a while and then bring them back in for training.

While a strong orientation is important, it is also important to weed out anyone who is not per-forming well early on in the pro-cess. If new people are not performing in the first 90 days and problems are developing, then we disengage right away. We state that

up front as an expectation, so peo-ple are forewarned.

I strongly encourage our super-visors to be out of their office and off e-mail, working with their col-leagues and making sure that, day in and day out, on each shift we are working the system in the way that we need to work it. In that way, management is responding to make certain that everything is in place and that our staff has the time and resources necessary to do their work. I also expect my new admin-istrators to join groups like Toast-masters so that they are comfortable speaking to groups and can convey a message with some energy.

Listening to StaffOnce a month, we conduct sessions with each department where we listen just as much as or more than we talk. Every 90 days, our administrative team addresses all three shifts and gives them an update, answering comments or questions.

We know that our methods are succeeding because we just con-ducted a major morale survey that rated us the best division in our sys-tem, and included were high marks for morale. When compared with other hospitals across the nation,

we believe morale is the reason we rate high in patient-service and financial outcomes.

We make a point to feed infor-mation about successes back to our people to sustain high performance. Reward and recognition is what people understand. To that end, I send out letters every week to our employees when I hear of some good thing that they have done. I expect my staff to be out of their offices, making rounds, talking with employees, and removing barriers.

It is the number-one job of the CEO to uphold the mission and core values of the organization and to engender them.

Stephen Ronstrom

President and CEO, HSHS Division (Western Wisconsin)

Hospital Sisters Health System

Stephen RonstromPresident and CEO, HSHS Division

(Western Wisconsin)Hospital Sisters Health System

“Our biggest differentiator (and what has made us successful) is that we are always moving forward while keeping our focus squarely on our values and our service to the sick in body and spirit.”

• With organization since 1998

• Leads regional HSHS mission through Sacred Heart Hospital and St. Joseph’s Hospital

• 2008 recipient, Catholic Charities’ “In My Name” award

• Fellow, American College of Healthcare Executives

Mr. Ronstrom can be e-mailed at [email protected]

Stephen RonstromPresident and CEO, HSHS Division (Western Wisconsin) , Hospital Sisters Health System (continued)


My role in creating a productive environment is to set the right tone and the right expectations. I tell everyone to be sure that I have pro-vided them with the time to do their work, the resources to do it, and clear instructions about what needs to be done.

A Continuous Process of Leadership DevelopmentIn working to build the company’s reputation, the first thing we need to do is take care of business. The best thing that I can do for the peo-ple that I serve is to run a good organization, so I constantly evalu-ate our strategy, operational improvements, and the fundamen-tals of our enterprise.

In the past, I have been involved with good organizations such as the United Way, the Chamber of Commerce, and Catholic Charities. However, now I find my focus being centered on extending our mission through innovation. To do this I’ve encouraged our organiza-tion to begin the process of creat-ing new groups and new social movements to help the people we

serve. We are in an industry that is going through many changes — which are necessary for the sake of our society. We are challenged with the increasing complexity of our roles and have to be willing to take more risks earlier, to listen to the people we serve, and create new opportunities for our communities and the people in them.

From time to time, I find that I also need to make changes to my leadership style. We are all human beings and we all, especially those in leadership roles, need to contin-ually undergo a self-development program that includes hearing feed-back and making adjustments.

In addition, I use other methods to help guide my leadership. I talk with a Ph.D. who has formal train-ing in leadership. I start each day

with prayer and meditation before coming to work, as well as exer-cises. I have self-discipline, which applies not only for physical prac-tice, but also for mental practice and the cultivation of self- awareness and compassion.

The FutureWe have to focus on going back to the basics of community need and meeting those community needs. Next, we need to go back to the basics in operations and make sure that we are safe, that we provide high-quality care, and that people get treated with care and respect. Finally, we need to focus on new health care delivery systems — which will be exciting with the health reforms coming in the near future.

Expert Advice

I readily admit I am an achievement-oriented, type-A person. I want to get out there and get things done. I am competitive and committed to the mission and purpose of the organization. I find that whenever I get too busy, I usually get into trouble. It has never been that I have not done enough, it is usually that I am trying to do too much. If I get into the “doing more” mode instead of the “being” mode, warning lights will go off. Fortunately, most of the time I have been able to back down.

Focusing on new health care delivery systems using technology and innovation

Ensuring that safety standards are followed,

high-quality care is provided, and patients are treated with

care and respect

Overcoming self-interests and learning how to work

together to meet the needs of the population

Using Values to Create a Sustainable Medical Delivery System: Future Directions at HSHS

Stephen RonstromPresident and CEO, HSHS Division (Western Wisconsin) , Hospital Sisters Health System (continued)


As providers, we need to take a leadership role in helping to create a new medical delivery sys-tem that is sustainable so our coun-try can do other things besides pay health care expenses. We are at a critical turning point in the history of health care and we have to be

able to come together and do the right thing for those we serve.

We need to focus on turning our technology and our innovation up to a high level. We must overcome self-interests and learn how to work together to meet the needs of our population. I am energized

when I see inklings of these things beginning to happen. I know we can break down barriers if we are willing to do things in a new way. We have a real opportunity to do some wonderful things that would affect our society and generations to come in a profound way. ■

Rob DePierreChief Executive Officer , Henniges Automotive

© Books24x7, 2010 Rob DePierre ExecBlueprints 10

Core ValuesWe based our culture on our core values. First and foremost is the business of honesty, integrity, and ethics. Hopefully, that is a core value for every company. The idea of doing what we say we will do, when we said we would do it, is important to us. We want to be trusted, and we want our custom-ers to expect delivery on time and on budget.

Managing Time and Delivering ResultsTime really is the enemy. We must maintain a certain speed of execu-tion and a sense of urgency. In our culture, it is important that we move quickly because things change so often and so fast. No matter how much time we think we have, we are actually out of time all of the time. This happens to everyone on a daily basis — you think you have some extra time, but then something pops up and next thing you know, you are suddenly run-ning behind. Time seems to do nothing but speed up; it never slows down. Our response is to always operate with a sense of urgency. If you always behave as if you are running just ahead of the clock, you will always get the job done.

It is also important to realize that our world is constantly chang-ing. A problem that was unsolvable

last year might be easily fixable this year. You need an open mind and a creative outlook to survive. Quite often, I will hear, “I know that won’t work,” or, “That was tried before and it didn’t work.” How-ever, the truth is that technology is moving so quickly that not trying solutions because they didn’t work in the past is not a good answer. You have to learn and find ways to move forward. All of our manufac-

turing plants and product develop-ment centers have labs where we encourage our people to try and learn. Once they have learned about something, then they can try to improve it and share their results.

I require accountability. I want my people to get involved with something, to understand it, and to hold themselves accountable for achieving it. The company certainly holds them responsible for doing their job on a daily basis. But I want more than that. I want them to take personal responsibility for building the organization up and for holding themselves to a higher standard.

Collaborative Problem SolvingThe idea of managing by fact is a core value to us. The person who is most involved in a situation is always going to be the person who can offer the best solution. For

example, if a problem occurs on the shop floor, then the associates working on the production line will know a lot about it. We’ve trained all of our associates on problem solving and how, when a prob-lem comes up, to get the right peo-ple around the table. We want all the associates working on the line, from the quality engineer to the process engineer to the supervisor, to work through a methodology to find the root cause of the problem.

Then, every month, we expect the results of the problem-solving exercises. We want to know the problem, how they got to the root

Communication is essential and I try to give my people as much information as possible to allow them to make the best decisions.

Rob DePierre

Chief Executive Officer

Henniges Automotive

Rob DePierreChief Executive OfficerHenniges Automotive

“We will move every mountain to get a job done. Quite often I say to custom-ers that the full power of the organiza-tion will be behind us in meeting our commitments.”

• B.S., M.S., Mechanical Engineering, Western Michigan University (WMU)

• WMU 2010 Mechanical Engineering Department’s Alumni of the Year

• Previously EVP, Global Exhaust Systems, Benteler Automotive

Mr. DePierre can be e-mailed at [email protected]

Rob DePierreChief Executive Officer , Henniges Automotive (continued)


cause, how they solved it, how much money they saved, or how much they were able to improve quality. In fact, I so enjoy the results of these collective prob-lem-solving exercises that I prefer to meet with the entire team via video conference or WebEx rather than just read the final report. I like that our people know that they are part of the solution. I want to encourage them to keep coming up with good ideas.

Personal Leadership StyleI am very straightforward and direct. I set high expectations and expect follow through. Com-munication is essential and I try to give my people as much informa-tion as possible to allow them to make the best decisions. Even when they ask hard questions, I try to give them honest answers. I want to bring people in and get them more involved. I want people who can roll up their sleeves and hold themselves accountable to achieve results.

Furthermore, as a CEO, the only way to build a good reputation is to do what you say you are going to do. If you promise one thing and deliver something else, you are not going to be respected or trusted. This is why we have built a strategic principle out of flawless execution. In my mind, the best way to do that is to deliver on my promises, whether they are to the customers, shareholders,

suppliers, or our people. If I say I am going to do something, I do it.

We send formal surveys out to our people to gather feedback on the style of the company and how well they think we’re doing as an organization. I always encourage people to give me personal feed-back, but I realize that it is not easy for someone to walk into my office and tell me that I am wrong. I do,

Expert Advice

Exercising Environmental Responsibility A company should also take care of the community in which it operates. This means maintaining safety, security, and environmental standards. We are constantly looking for new ways to be self-sustainable.

For example, we were previously spending so much on energy and wasting a good deal of it. We were using a lot of natural gas to heat facilities up in Canada. This was not acceptable. We contracted to calculate our carbon footprint so that each month we can try to reduce it. One of our teams lined all of the windows inside and out with plastic barriers and kept doors shut at all times. The result was that we significantly reduced gas usage while saving the company several hundred thousand dollars in the first quarter. It was the right thing to do, so we did it, but it was also nice to save money on top of it. We realized that the greener our company, the more money we save, which is great. However, the most impor-tant issue was that these initiatives helped our employees feel proud about our corporate policies toward environmentalism.

The executive staff also attend off-site team-building sessions.

The CEO’s direct reports and the executive team are expected to give personal feedback once per year in the following areas:• Two things that they want

the CEO to start doing• Two things that they want

the CEO to stop doing• Two things that they want

the CEO to continue doing

Employees are asked to fill out formal surveys that ask:• What is the style of the

company?• How well is the organization

doing?

Assessing the CEO’s Leadership Style from the Bottom Up: Effective Approaches for Learning from Staff

Rob DePierreChief Executive Officer , Henniges Automotive (continued)


however, expect more personal feedback from my direct reports and executive team. I ask them once every year to tell me two things that they want me to start doing, two things that they want me to stop doing, and two things that they want me to continue doing. I then take this information and communicate out what I am going to do to improve. I also hold team-building sessions with the executive staff where I try to create an environment where people feel safe to talk about anything. We go off-site for a few days and hire an

outside firm to help us manage the retreat. I get an awful lot of feed-back through those sessions.

CEO ChallengesEvery day is a different challenge. However, the main challenges are identifying and nurturing talent, overcoming the “already tried that” mentality, maintaining a fast pace of improvement, identifying and exe-cuting new innovations and technol-ogies, and charting the course for global expansion. These challenges change, however, depending on the

market environment and customers’ expectations. They are always part of the background, but often more pressing items pop up that must be dealt with immediately.

On a macro-level, continuing to innovate and find new technolo-gies, driving the company on our global expansion pillar, and mak-ing sure that we have enough talent — not only technical talent but also leadership talent — to take on the new business and the new growth are constant challenges that I stay on top of at all times. ■

Kevin J. KennedyPresident & CEO , Avaya

© Books24x7, 2010 Kevin J. Kennedy ExecBlueprints 13

Authenticity: A Core Company ValueOne of my most important values is authenticity. When you’re work-ing with a company that needs to undergo a lot of change (such as in a turnaround situation), people may not see the benefits of your efforts for a while. The process can feel like taking medicine; it might even hurt before it begins to feel better. Therefore, you have to develop people’s trust — and the only way to do that, in my opinion, is by being authentic so that people can believe in you and the outcomes.

One of the ways I test for authenticity is to ask people that I’m hiring where they were born. This question usually catches them by surprise because it is one of the few for which there’s only one answer, i.e., where your mother was at the time you entered the world. It doesn’t need to be any more wordy than that. However, if for some reason I can’t trust an individual’s answer to something that has only one answer, how could I ever trust that person to be truthful if I were asking why they missed their quarter or failed to achieve a particular result? While asking for a person’s place of birth seems like a simple question, it is

actually a proxy for determining a person’s authenticity.

You would be surprised how many people fail this little test. I don’t trust people’s answers prob-ably 40-50 percent of the time. Because it seems to be such a ridic-ulous question, they will try to second-guess you and give you paragraphs and pages rather than, “Here is where my mom and dad were at the time.”

Evolution of Company Values and CultureOur company’s core values have taken on a new dimension. A decade ago our company was a bit more protective of its business, but now that we’re trying to reinvent

the company, we are willing to take on a bit more risk. That’s why not only being authentic becomes more important, but also having a “biased fraction” becomes a little more important. In other words, when the foundation of a company is changing, it can be constructive to support and promulgate the atti-tudes and opinions of a subset of employees who believe in the future, rather than attempting to play to and address the attitudes and opin-ions of the larger employee population.

In general, I think people come to work trying to do the right thing. They’re very proud of their customer

[Effective leadership involves developing] people’s trust — and the only way to do that, in my opinion, is by being authentic so that people can believe in you and the outcomes.

Kevin J. Kennedy

President & CEO

AvayaKevin J. Kennedy

President & CEOAvaya

“Walking the talk is the hard part. You actualize a culture; you don’t talk your way into it.”

• With company since 2009

• Previously CEO, JDS Uniphase Corporation

• Member, board of regents, Loyola Marymount University

• B.S., Engineering, Lehigh University

• M.S., Ph.D., Engineering, Rutgers University

Mr. Kennedy can be e-mailed at [email protected]

Expert Advice

Every week or at least once per quarter I try to step back and consider whether I am communicating enough. I ask myself: Is the tone right? Are the targets for communication right in any quarter? I’ve recently asked my organization to be more of a self-managed team rather than report everything to me. I’m trying to be more of a coach of the team rather than the person with the directives. We’ve now set up new forums to capture these different expectations. This is one area where I’ve tried to be somewhat self-reflective on a frequent basis as well as consider data that justifies the need for change. After engaging in these pro-cesses, I then try to make the change.

Kevin J. KennedyPresident & CEO , Avaya (continued)


base and their heritage. However, owing to the company’s stagnant years (when the size of the com-pany was shrinking), people devel-oped a tendency to be protectionist and look to the past. After endur-ing a period when we didn’t grow, I think people are now fearing the good. They may be afraid to hope that our future is looking brighter, because they don’t want that hope to be dashed. As I look at the effect that reinventing the company has had, I see how our fast-growing areas are helping employees to see opening rather than closing doors, and to develop a biased fraction. All of these factors create a sort of tension between the past and the future.

Aligning Leadership Style with Company ValuesAvaya’s board basically made a decision that they wanted this company to change, so they went

out and hired a CEO who, they believed, could execute such a transformation. The decision I have to make is whether we bring about this change by throwing out the heritage and simply injecting the new, or by evolving the strengths of the past to fit the needs of the future. I’d say I’ve tried to embrace the latter versus the former. Cul-ture, then, was fostered by this decision as well as by the smaller choices we make everyday. Do you listen to people and try to improve things, or do you shoot the messenger?

At the end of the day I think the leadership team defines the values for Avaya. But then we go out and test whether we and our employees are living the values to which we aspire in our relationships with cus-tomers. We have a number of mechanisms through which we gather this information, such as customer satisfaction/loyalty polls and direct feedback. We also do

management surveys to find out if our managers are spending time with our employees and talking about career development, and an employee engagement survey that looks at a number of variables including the degree to which our employees are empowered. We also use 360-degree reviews to examine the consistency of individual and team performance in these areas.

Because leadership is all about execution, if we embody our values and do it better than our competi-tors, we’ll have an advantage. If more — rather than fewer — of our employees become aligned with these values, then we’ll have an advantage. It’s the level of advocacy and behavioral consistency that make the difference. While the management team really defines the values, the whole institution should ideally express those values to its stakeholders through its people.

Customer satisfaction/loyalty

polls

Direct customer feedback

Management surveys that

determine if career development is being addressed

Employee engagement

surveys that ask about employee empowerment

360-degree reviews that examine the

consistency of individual and

team performance

Are Employees Living the Company’s Values?At Avaya, This Information is Gathered Through. . .

Kevin J. KennedyPresident & CEO , Avaya (continued)


Characteristics and Impact of Leadership StyleI have probably received a full spec-trum of opinions about my leader-ship style. Among the people I

interact with most frequently, there’s a sense of credibility and authenticity. I think people believe that I wouldn’t ask them to do anything that I wouldn’t do myself, and they feel my very high

commitment. However, am I ask-ing a lot from the company and its employees? The answer is yes. Do we drive expectations very, very high? The answer is also yes. There are two sides on every coin. ■

Virginia A. “Ginger” Barnes President and CEO , United Space Alliance, LLC

© Books24x7, 2010 Virginia A. “Ginger” Barnes ExecBlueprints 16

Core ValuesThe core values of United Space Alliance (USA) are similar to mine. The number one is safety, by which I mean paying attention to safety. Every meeting at USA, whether it is with the customer or whether it is just a staff meeting, starts with a safety tip and that has been part of the fabric of this company. The tip can be on anything from recog-nizing heat stroke to learning from an airplane crash, but someone is assigned the responsibility at every meeting to bring a safety tip to share.

Our company’s vision is to be the world leader in space opera-tions on Earth, in orbit, and beyond. Our mission is to provide safe, high-quality, best-value space oper-ations services and technologies to our customers. Our values reflect our vision and mission. In addition to safety, our values include ethical behavior, innovation, and success.

Cultural CharacteristicsAs I have stated, we value safety as an integral part of our culture. An intense customer focus is another hallmark of USA. The way USA operates is that first we are a NASA contractor rather than USA employ-ees and the customers appreciate that. There are many areas where

we operate as honest brokers where we might have all of the industry teammates as partners.

In spite of events in recent years, the company’s culture has not changed. We have gone through challenging times such as the Columbia accident and Hurricane Ike. The end of the shuttle program will be another. Those inflection points in our history have caused more intensity and conservatism over the last few years.

I had already assumed my posi-tion as CEO of USA before I rec-ognized fully how well my management style would fit the company’s culture. Before coming I had talked to some mentors. Hav-ing worked in the space business before, I knew some people who would give me an honest assess-ment of USA. One was Dick Covey, my predecessor, whom I have known for years and years. I trust him implicitly so I knew what the culture of the company was like. I knew that I had a solid leadership team and what chal-lenges I faced in terms of who would be leaving due to benefits and who would be ready to step up into backfilled positions. When I arrived here I found that everything that Dick and others had told me

was true and may even have been understated.

Unique Leadership StyleMy leadership style is unique in this industry. Many of my contempo-raries are from more of a technical background. They may not have

I have to be careful to understand not only how my actions are perceived by others, but also how they could potentially be perceived by others.

Virginia A. “Ginger” Barnes

President and CEO

United Space Alliance, LLC

Virginia A. “Ginger” Barnes President and CEO

United Space Alliance, LLC

“As we face the closing of the space shuttle program, we will have to dem-onstrate a passion or velocity, not just agility or speed. We must get to the right place with intensity and show that we can move swiftly, we can move smartly, and we can get things done.”

• Recently appointed to United Space Alliance’s CEO position

• Previously vice president, chief operating officer, and deputy pro-gram manager, Boeing Company’s Brigade Combat Team Modernization Program

• With Boeing in positions of progres-sive responsibility since 1981

• Graduate, Accounting, University of Alabama, Huntsville

• Master’s degree, Business, Owen Graduate School of Management (Vanderbilt University)

Mr. Barnes can be e-mailed at [email protected]

Expert Advice

Our values have remained consistent over the years, at least through Dick Covey’s tenure. He was the COO right after Columbia in 2003 and then was CEO up to the last few years. I have been able to map every tenet that I thought was important directly to the vision, the mission, and the values here.

Virginia A. “Ginger” Barnes President and CEO , United Space Alliance, LLC (continued)

© Books24x7, 2010 Virginia A. “Ginger” Barnes ExecBlueprints 17

the same business focus that I have had or the variety of experiences that I have been fortunate to have had with The Boeing Company. When there is a gathering of CEOs in this industry, I am usually one of the few women in the room as well as one of the youngest. For USA at this point in its history, my leader-ship style is a good fit, though I do not see it as something that will either hamper or boost my success in this role.

You get to a point in your career where you have been suc-cessful because you have outper-formed all your peers, have been in the right spots, and have received the right visibility. However, there then comes a point where there has to be more than that and you need to look at things from a dif-ferent perspective. There is, for instance, no way that you can know every single thing that you want to know about the company before you make a single decision. I spend considerable time and effort thinking about how I can make sure I am making the best decisions. How much time do I

need to put into making a deci-sion? What is the risk of making a decision with 80 percent of the information?

FeedbackThough I do not get much feed-back, I usually hear what people want me to hear. Having been in this position for less than a year, I am just now coming off the honey-moon period. My COO and I have a good relationship and we spend a great deal of time talking. In addi-tion, I have received feedback from a couple of others on the leadership team as well as from some odd, roundabout sources (i.e., somebody who has heard from some-body who heard from somebody that I was “refreshing” or some-thing similar). I let the board know what I am focusing on and what my priorities are and I try to keep those consistent. The fact that I have gotten little feedback from them is probably good. People are starting to learn that I am approach-able, that I will shoot straight, and that I am communicative.

Being a successful CEO is an around-the-clock job. One of the components of that job is building the company’s reputation. I am held to a high standard of being beyond reproach, not only in the office but outside the office in everything that I do in the commu-nity. I have to be careful to under-stand not only how my actions are perceived by others, but also how they could potentially be perceived by others.

USA has significant strengths, particularly in customer intimacy, and I can capitalize on that. I have always believed that the customer is most important, whether it is an internal customer or external cus-tomer. I am enjoying more and more being in this “badge-less” environment, which gives us a clear advantage over some of our com-petitors. We will need our advan-tages and strengths as we face our challenging future. When the shut-tle program goes, this company can do one of two things — we can move ahead or we can stop. We are not stopping. ■

© Books24x7, 2010 Ideas to Build Upon & Action Points ExecBlueprints 18

Ideas to Build Upon & Action Points I. What Are Examples of Positive Values that Can Drive Organizations?Values provide the cornerstone for how a com-pany performs in its business dealings and community and, as such, serve to attract like-minded customers and employees to buy its products/services and provide important contri-butions to its work. Moreover, they enable all stakeholders to understand the principles and logic behind what a company does. However, to truly serve these multiple purposes, values must remain consistent over time — otherwise they will never become part of a company’s culture. Some values discussed in this report are:

• Integrity and openness (which encompasses an emphasis on honesty, fairness, access, ethics, and transparency)

• Safety for employees, customers, and the general public

• Environmental sustainability

• Commitment to ongoing customer satisfaction

• Development and support for a diverse, motivated workforce

• Respect for all stakeholders

• Competency in performance

• Continuous improvement that can demonstrate results

• Joy in achievement

II. The Bottom LineIf your company can demonstrate that it consis-tently and uniformly embodies positive values in its work and relationships (and does it better than your competitors), it will gain a competi-tive advantage. When measuring the impact your values have on your business, areas to consider include:

• How do your current customer satisfaction and loyalty levels compare to those of previous years, and to those of similar companies?

• How high is your employees’ morale (as measured by engagement surveys, produc-tivity metrics, and career development opportunities)?

• What kind of feedback are you receiving from direct reports about practices that should change, stay the same, or be introduced?

• What is your company’s reputation for innovation in your industry?

III. Must-Have Leadership Domains for Expressing Positive ValuesIn working to build a company’s reputation, the first thing that a CEO needs to address is the state of the business. How well is it perform-ing against goals? What needs to be improved? However, a leader who is focused on living

his/her company values every day also asks: In the pursuit of these activities, how can we ensure that core values continue to be expressed and enhanced? When it comes to giving a voice to values, areas that provide company leaders with both challenges and opportunities include:

• Strategy: Where do values enter any discus-sion of new initiatives?

• Resource allocation: Where will capital, employees, and time have the most impact?

• Customer relationships: How can we remain committed to serving and pleasing our customers?

• Execution: How can we continue to ensure that we are delivering what we promised within the right timeframe and using the right people?

• Communication and information sharing: How can we ensure that people will remain empowered to excel at their jobs?

• Professional development: How can we best identify and nurture our talent?

• Environmental concerns: How can we operate in a “greener,” more sustainable way?

• Innovation and future planning: What technological and market trends will we need to address in striving for continuous improvement and growth?

IV. The Golden Rules for Onboarding and Maintaining a Values-Driven WorkforceThe CEO needs to make sure that all employees understand the company’s values. However, such an effort extends beyond verbal communication. As you might expect, employees notice every-thing that leadership does, which gives you a stellar opportunity to lead by example. (In fact, if employees perceive that you are not acting according to stated values positions, they will tend to ignore them also, which will have the effect of diluting all of your previous attempts to influence behavior.) When attempting to instill a particular values set among new and veteran employees, you should remember to. . .:

• Play an active role in hiring, training, and retaining your best people. (This involve-ment should include personally interview-ing all candidates who would report to the C-level team.)

• Invite would-be peers to participate in interviewing candidates.

• Institute clear orientation processes, which include a critical review after 90 days to ascertain each person’s “fit” with the val-ues of the organization.

• Identify, as soon as possible, those individ-uals that cannot live up to your values, and administer the appropriate discipline — up to and including dismissal.

• Take every opportunity to demonstrate how a member of the company can act to show alignment with prevailing values.

• Require accountability: encourage your people to become involved with important assignments, understand their nuances, and adhere to their goals and requirements.

• Recognize high performance through con-gratulatory letters from the CEO and other public mechanisms.

• Encourage the acquisition and sharing of knowledge on topics relating to core com-pany values (e.g., safety-related issues).

• Empower people to take the lead in root-cause discovery and problem-solving activi-ties for their areas.

V. Essential Take-AwaysAs CEO, all eyes are on you to set the example in so many areas. Without your active involve-ment and endorsement, for example, even well-established company values can soon be seen as hollow and ineffective. To ensure that they are wholly integrated throughout your and the com-pany’s management practices and strategic ini-tiatives, values need to be consistently and openly reflected in your actions, communica-tions, and interactions with employees, custom-ers, shareholders, and other members of the at-large community. Ways that you can demon-strate your commitment to company values in the course of your leadership include:

• Listening to people across the company so that you can understand issues of impor-tance to employees (and external parties) — and encouraging managers to do the same

• Regularly engaging with employees con-cerning strategic initiatives and goals

• Preserving morale by carefully measuring every decision against the company’s val-ues when resolving problems

• Demonstrating an ability to provide honest answers and accept criticism

• Conducting periodic forums for leadership and employees to share information and views

• Checking in with employees to ensure they have sufficient time, resources, and under-standing to meet stated expectations

• Evolving your own leadership style through self-examination, consultations with experts, and engagement in consciousness-raising activities, such as meditation

• Delivering on your promises to customers, shareholders, suppliers, employees, and members of the community

• Supporting those employees (even if they constitute a minority group) who embrace new directions for the company

• Understanding not only how actions are perceived by others, but how they could be perceived ■

© Books24x7, 2010 Ideas to Build Upon & Action Points ExecBlueprints 19

Ideas to Build Upon & Action Points (continued)

ExecBlueprints is a subscription-based offering from Books24x7, a SkillSoft Company. For more information on subscribing, please visit www.books24x7.com.

10 KEY QUESTIONS AND DISCUSSION POINTS

1 What are your company’s core values? Have these changed in the past five years? Why are these values so important?

2 As CEO, how would you describe your leadership style at your present company? How has your leadership style changed in the past five years? In what ways is your current leadership style unique to your organization?

3 What process do you use to ensure that both your leadership style and company goals are aligned with the core values of your organization? Why is it so important to ensure that your leadership style matches the values of your company?

4 What are the main characteristics of your company’s culture? What process did you use to assess the organization’s culture before accepting your current role? What process did you use to determine if your management style would be a good fit with the organization?

5 What communication strategies do you use to ensure that all employees understand and adhere to your company’s core values? What could be improved?

6 What are the top five challenges you face as CEO of your company? How do you handle these challenges? How do you encourage other employees to respond to these challenges in a similarly responsible way?

7 What feedback have you received regarding your leadership style and how it relates to company values? What lessons do you take away from this feedback?

8 How can the ROI be calculated for efforts to align your leadership style to the values of the organization? Is ROI the best measure? What other benchmarks are important to consider?

9 How does a successful CEO work to build the company’s reputation? What role does your leadership style play in these efforts? What strategies do you use to build company reputation internally and keep morale high?

10 As CEO, what is your role in creating a productive and positive environment for those working at your company? What changes have you made in your leadership strategy to accomplish these results?

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