leadership in the new millennium
TRANSCRIPT
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Leadership In
The NewMillennium
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“Hold on ! You can’t all have the front seat!”
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Most corporations today areovermanaged and underled . This leadsto enormous wastage of resources, deep
inefficiencies, and unlimited frustration.The challenge for corporations,communities, and countries is to
prevent this from happening.
The Simple Truth
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… about coping with complexity.Without good management, complexenterprises tend to become chaoticand their existence is threatened.Good management brings about adegree of order and consistency.
Management is …
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… about coping with change.The greater the competitiveforces around you, and the morevolatile the world around you,the more the need for leadership.
Leadership is …
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• A peacetime army can usually survivewith good administration andmanagement in the ranks, and goodleadership at the very top.
• A wartime army needs competentleadership at all levels. You cannotmanage people effectively into battle; you
must lead them. Business today is anever-ending battle!
War & Peace
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Successful companies actively seekout people with leadership potential
and expose them to careerexperiences that will develop thatpotential.
Building Leaders
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Leadership is about maximizing yourfollowers‟ well-being, not their
comfort.- Chris Argyris
Long Term Thinking
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Develop a
leadershipmindset
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• The age of progress might havelightened our physical load – but it
has numbed our minds and takenour spirit away from work.
• Speed and change are no longer
linear or additive.
What Price Progress?
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Leadership is about
first thinking then deciding
followed by acting swiftly and finally, reflecting
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Leadership is about
thinking – explorationdeciding – evaluation/selectionacting swiftly – edge
reflecting –
analysis/introspection
All of the above are intensely
intellectual activities.
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• To become rich, I have to be miserable.
• To be successful, I have to be unfair tomy customers and employees.
• I must dominate to win.
• I must know everything.
• I have to make all the decisions.
Myths About leadership
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Great leaders are dreamers
“There is always a dream in all enterprise,
but the dream if it lasts, one day becomes a
reality” – Jean Monnet [One Europe, One
World]
“India must be able to face Britain as an
equal nation, and not as a subordinatecolony. India could not, and should not,
remain a British possession.” – Mahatma Gandhi
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The ways in which leaders conduct theirlives – their embodiments – must beclearly perceptible by those whom they
hope to influence. People who do notpractice what they preach arehypocrites, and hypocrisy mutes the
effectiveness of their stories.
Real Leaders Are Credible
L d d f il
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Sooner or later, nearly all leadersoutreach themselves and end upundermining their causes. Indeed, giventheir larger-than-life status, they areperhaps prone to this hubristic fate.[Tojo, Mussolini, Chiang, Churchill, de
Gaulle, Mao, Stalin…]
Leaders do fail
L d hi i i
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Leadership crisis
•Gillette•Lucent
•Campbell
•Coca-Cola
•Xerox
•Mattel•P&G
•Michael Hawley•Rick McGinn
•Dale Morrison
•Doug Ivestor
•Rick Thoman
•Jill Barad•Dirk Jager
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The paradox of l’ship
Cognitive complexity and ambiguity plague all leaders today. If you are looking for a job description, forget it; you are dead meat.
You have to design your own job specs, review them,
and change them as often as required.Speed is of essence. Yet, calm reflection when in the clutches of competitive gales is the hallmark of successful leaders.
The faster things happen, the slower you need to go.
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Gandhi Mandela
Havel Mother TeresaMartin Luther King
Change doesn‟t have tostart at the top.
The Activist’s Rule
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They possessed no political
power, yet each disruptedhistory.It was passion, not power, that allowed them to do
so.
The Activist’s Rule
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• LEARN
• EMPATHIZE
• ACT
• DREAM
What it means to lead
L d hi i b t
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YOU!
Leadership is about
Leadership is not something that youdo. It is an expression of who you are.
- Kevin Cashman
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“We are not certain you have a mandate anymore.”
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Differentiate people
based onperformance and
values
A Leadership
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• T1 – Say goodbyenow
• T2 – Coach, give achance
• T3 – Tyrant.Warn – if no change,get rid
• T4 – Make them rolemodels
T3 T4
T1 T2
Low VALUES High
High
Low
P E R F O R M
A N C E
A Leadership
Development Model
Th GE W
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The GE Way
A B C
ff
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The Vitality Curve must be supported bythe reward system: salary increases,promotions, and recognition.
Every recommendation for a rewardshould be associated with a person‟s
position on the curve.
Differentiation
Diff i i
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As should be given raises that are two
to three times the size given to the Bs.
Bs should get solid increasesrecognizing their contributions everyyear.
Cs should get nothing.
Differentiation
K GE L d hi
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Key GE Leadership
Ingredients
“E4”=
• Energy
•
Energizer• Edge
•
Execution
Values and Performance Critical to Success
K GE L d hi
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“E4”
Energy =
Enormous Personal Energy - Strong
Bias for Action
Key GE Leadership
Ingredients
K GE L d hi
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“E4”
Energizer =
Ability to Motivate and EnergizeOthers ... Infectious Enthusiasm to
Max Organization Potential
Key GE Leadership
Ingredients
K GE L d hi
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“E4”
Edge =
Competitive Spirit ... Instinctive Drivefor Speed/Impact ... StrongConvictions and CourageousAdvocacy
Key GE Leadership
Ingredients
K GE L d hi
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“E4”
Execution =
Deliver Results
Key GE Leadership
Ingredients
K GE L d hi
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Key GE Leadership
Ingredients
“E4”=
• Energy
•
Energizer• Edge
•
Execution
= Passion
The GE Way
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The GE Way
A B C
Passion
GE’ P l F t
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Name:
Title:
Mos in Position:
Photo
X
Potential
P e r f o r m
a n c e
GE’s People Factory
+ Great technologist, + Broad, customer connected
+ Business leader potential, (-) Still maturing as a
leader
GE’ P l F t
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Name:
Title:
Mos in Position:
PhotoX
Potential
P e r f o r m
a n c e
+ Tenacious/pit bull, + Great process thinker
+ 7000 foot runway, (-) Wears ambition on sleeve
GE’s People Factory
GE’s People Factory
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Name:
Title:
Mos in Position:
Photo
X
Potential
P e r f o r m
a n c e
+ Top operational leader, + Phenomenally quick learner
+ Good mentor, (-) Needs More edge
GE’s People Factory
GE’s People Factory
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Name:
Title:
Mos in Position:
PhotoX
Potential
P e r f o r m
a n c e
+ Bright driven, + Global thinker + Great coach/mentor +Growing into the role, (-) Execution capability
GE’s People Factory
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DISTINCT … OR EXTINCT! “If there is nothing very special about your work,
no matter how hard you apply yourself, you won’t
get noticed and that increasingly means you won’tget paid much, either.”
—Michael Goldhaber, Wired
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“Quite frankly, we’ve had so many applicants with attitude, over-qualification,inflated egos and hyper aggressiveness that we are looking for someone without a clue.”
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Involve everyone in
the future
Involving Everyone
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Assessing your response quotientDo bosses hide behind their deskswhen more junior employeespresent good ideas to them?
Involving Everyone
Involving Everyone
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Taking unnecessary work out ofthe system
Using the brains of many for thebenefit of all
Work-Out
Involving Everyone
Involving Everyone
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Work-Out: the rationale
For all these years, you‟ve paid for
my hands when you could have hadmy brain as well – for nothing!
People closest to the work know it
best.
Involving Everyone
Involving Everyone
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Work-Out: the rationale Those closest to the work know more about it than
their bosses
The best way of getting these workers to pass onthat knowledge to their superiors is to give them
more power
In exchange for that power, an employee is
expected to assume more responsibility for his orher job.
Involving Everyone
Involving Everyone
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Work-Out: the processGroups of employees are invited toshare their views on the businessand the bureaucracy that gets intheir way.
Reports, Approvals, Meetings,Policies, and Procedures
Involving Everyone
Involving Everyone
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Work-Out: the process
The manager issues a challenge oroutlines a broad agenda and then
leaves.With a facilitator, employees list theproblems, debate solutions, and
prepare to sell their ideas when theboss returns.
Involving Everyone
Involving Everyone
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Work-Out: the process
The manager has to make on-the-spotdecisions on each proposal. Most
ideas must receive a Yes/No decisionon the spot. Decisions on the rest arerequired by an agreed-upon date. No
proposal can be buried.
Involving Everyone
Involving Everyone
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Work-Out: the outcomeProductivity becomes much higher
Needless and meaningless tasks areeliminated
Workers feel liberated and satisfied at
having those tasks done away with.
Involving Everyone
Involving Everyone
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Work-Out: the outcomeIt helps create a culture whereeveryone begins to play a part, where
everyone‟s ideas begin to count, andwhere leaders lead, not control. Theycoach – rather than preach – and they
get better results.
g y
Involving Everyone
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Work-Out: the steps Choose issues to discuss
Select a suitable cross-functional team
Choose a champion who will see therecommendations through toimplementation
g y
Involving Everyone
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Work-Out: the steps
Let the team meet for a couple of days tocome up with recommendations
Meet with managers who can say „yes‟ or „no‟ on the spot, or will get back within an
agreed time frame.
Hold implementation meetings
g y
Change Effort/Payoff
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g ff y ff
High
Low
HardEasy
Jewels High-Hards
LowHangingFruit
Drop
E f f o r t
P a y
o f f
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“I am firing all of you. From now on it is me and the nearsighted monkey with a dart.”
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Emotional Competencies forleaders
As taught by Dan Goleman
Inspiring and Guiding
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• Articulate and arouse enthusiasm for a
shared vision and mission
• Step forward to lead as needed
regardless of position
• Guide the performance of others whileholding them accountable
• Lead by example
Emotionally Competent
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The leader is the key source of theorganization‟s emotional tone. Your
excitement can move an entire group in
the direction you wish.
Leaders
“Leadership is giving energy.”
- Birgitta Wistrand
Emotionally Competent
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The emotional tone set by the leaderripples downwards with remarkableprecision. The most effective ones arewarm and outgoing, emotionallyexpressive, democratic, and trusting.
The average leader is invisible, while the
best ones frequently walk around andstrike conversations with their staff.
Leaders
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Create an
environment forsuccess
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2001 2000 COMPANY INDUSTRY1 1 General Electric Electronics, Electrical Equipment
2 5 Wal-Mart Stores General Merchandisers
3 3 Microsoft Computers, Office Equipment
4 14 Berkshire Hathaway Insurance: P & C (stock)
5 9 Home Depot Specialty Retailers
6 17 Johnson & Johnson Pharmaceuticals
7 74 FedEx Mail, Package, Freight Delivery
8 18 Citigroup Banks: Commercial and Savings
9 4 Intel Semiconductors10 2 Cisco Systems Network Communications
11 21 Merck Pharmaceuticals
12 20 Pfizer Pharmaceuticals
13 24 United Parcel Service Mail, Package, Freight Delivery
14 N/A Target General Merchandisers
15 26 Procter & Gamble Soaps, Cosmetics
16 61 PepsiCo Beverages
17 40 AOL Time Warner Entertainment
18 60 Anheuser-Busch Beverages19 35 Exxon Mobil Petroleum Refining
20 15 Coca-Cola Enterprises Beverages
21 34 J.P. Morgan Chase Banks: Commercial and Savings
22 27 American International Gro Insurance: P & C (stock)
23 7 Dell Computer Computers, Office Equipment
24 8 Nokia Network Communications
25 10 Toyota Motor Motor Vehicles
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2001 2000 COMPANY INDUSTRY26 37 Northwestern Mutual Life Ins. Insurance: Life, Health (stock)
27 62 Walgreen Food & Drug Stores
28 6 Sony Electronics, Electrical Equipment
29 51 Eli Lilly Pharmaceuticals
30 48 Continental Airlines Airlines
31 22 Walt Disney Entertainment
32 52 Bristol-Myers Squibb Pharmaceuticals
33 N/A Duke Energy Energy
34 54 E.I. du Pont de Nemours Chemicals35 N/A Boeing Aerospace and Defense
36 70 Colgate-Palmolive Soaps, Cosmetics
37 67 Caterpillar Industrial & Farm Equipment
38 N/A Sun Microsystems Computers, Office Equipment
39 39 Nestlé Consumer Food Products
40 46 SBC Communications Telecommunications
41 29 Honda Motor Motor Vehicles
42 N/A Oracle Computers, Office Equipment
43 N/A Deere Industrial & Farm Equipment44 58 Alcoa Metals
45 33 BP Petroleum Refining
46 19 Ford Motor Motor Vehicles
47 N/A BellSouth Telecommunications
48 N/A Kroger Food & Drug Stores
49 N/A Texas Instruments Semiconductors
50 31 Singapore Airlines Airlines
Attributes of World Class
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• Innovativeness
• Quality of management
• Employee talent
• Quality of products /services
Attributes of World Class
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• Long-term investment value• Financial soundness
• Social responsibility
• Use of corporate assets
• Global business acumen
Corporate Culture
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WORLD CLASS
• Team Work
• Customer Focus
• Fair treatment ofemployees
• Initiative
• Innovation
AVERAGE
• Minimizing risk
• Respecting thechain of command
• Supporting the boss
• Making budget
Source: Fortune
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Vision
Mission
Objectives
Tactics
Processes
Foundation - Values Transformation to World Class
A SYSTEMS APPROACH
a Performance Measurementb Rewards Management
c Employee Feedbackd Recruitment Practicese People Development
f Customer Feedbackg Mission and Values Reviewh Quality Consciousnessi Continuous Improvement
Strategy
Welch on Welch
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“I wanted to create a company where
people dare to try new things - wherepeople feel assured in knowing that onlythe limits of their creativity and drive, their
own standards of personal excellence,will be the ceiling on how far and how fastthey move.”
- Jack Welch
Leadership Lessons
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“If you want to get your ship in shape, practicediscipline without formalism. In manybusinesses, a lot of time and effort are spent onsupporting the guy at the top. I‟m a low
maintenance CO. It‟s not about me, it‟s aboutmy crew.”
- Cdr. Michael Abrashoff – US Navy
Leadership Lessons
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• Be willfully self-contained
• Listen without prejudice• Don‟t just take command –
communicate purpose•
Practice discipline without formalism• Hand out responsibility, not orders• Be devoted, and success will be yours
- Cdr. Michael Abrashoff
Getting The Best
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1. Hire people more talented than yourself
2. Talented people attract talented people
3. Look for the best in each person4. Set standards for selection
5. Spend time evaluating and acculturating
prospective team members
As taught by Theodore Roosevelt
Getting The Best
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6. Do not prolong consideration of people whowill not receive a position
7. Ceaselessly search for new talent8. Ruthlessly replace individuals who do not
meet the standards of the enterprise
9. Work with the tools at hand
As taught by Theodore Roosevelt
The New Rules
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Hire and promote:
first, on the basis of integrity;
second, motivation;
third, capacity;
fourth, understanding;
fifth, knowledge;
and last and least, experience.
The New Rules
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Without integrity, motivation is dangerous.
Without motivation, capacity is impotent.
Without capacity, understanding is limited.
Without understanding, knowledge is
meaningless. Without knowledge, experience is blind.
The Challenge Ahead
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Given the right circumstances, from no
more than dreams, determination, and
the liberty to try, quite ordinary peopleconsistently do extraordinary things.
The Road Ahead
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Let us humans surprise the new
millennium. Let us prepare to face it
with a better and finer understanding
of leadership. Let us develop new
methods and be better citizens of this
world.
Beware The Yes Boss
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• HAMLET: Do you see yonder cloud that‟s almost
in the shape of a camel?• POLONIUS: By the mass, and „tis like a camel,
indeed.
• HAMLET: Methinks it is like a weasel.
• POLONIUS: It is backed like a weasel.
• HAMLET: Or like a whale?
• POLONIUS: Very like a whale.
- HAMLET, Act III, Scene 2
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“On the contrary Mr. Tischbeim. I don’t think that was a stupid question at all.”
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BROUGHT TO YOU BY
SAM SWAMINATHAN
Center for Creative Thinking http://www.ccthinking.com