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Leadership In The New Millennium

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Page 1: Leadership in the New Millennium

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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