Leading in Totally Screwed Up Times 21 May 2001/Master Leadership Seminar “There will be more confusion in the business world in the next decade than in any decade in history. And the current pace of change will only accelerate.” Steve Case “In 25 years, you‟ll probably be able to get the sum total of all human knowledge on a personal device.” Greg Blonder, VC [was Chief Technical Adviser for Corporate Strategy @ AT&T] [Barron‟s 11.13.2000] “We are entering an era of no limits, with nothing to brake the cascade of human intelligence unleashed by the Information Age. The Web essentially allows all the brains on earth to communicate and share insights in real time, around the globe, all the time.” Jeffrey Young, Cisco Unauthorized <1000A.D.: paradigm shift: 1000s of years 1000: 100 years for paradigm shift 1800s: > prior 900 years 1900s: 1st 20 years > 1800s 2000: 10 years for paradigm shift 21st century: 1000X tech change than 20th century (“the „Singularity,‟ a merger between humans and computers that is so rapid and profound it represents a rupture in the fabric of human history”) Ray Kurzweil, talk april2001 CEOs appointed after 1985 are 3X more likely to be fired than CEOs appointed before 1985 Warren Bennis, MIT Sloan Management Review “The Internet is not going away – but flawed business models are.” fool.com “The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.” Peter Drucker, Business 2.0 (08.00) “Most of our predictions are based on very linear thinking. That‟s why they will most likely be wrong.” Vinod Khosla, in “GIGATRENDS,” Wired 04.01 = The Fantastic Fifty 1. Great Leaders on Snorting Steeds Are Important – but Great Managers (Type I) are the Bedrock of Organizations that Perform Over the Long Haul. 2. But Then Again, There Are Times When This “Cult of Personality” (Type II) Stuff Actually Works! 3. Find the “Businesspeople”! (Type III) The Golden Triangle: (1) Creator-Inventor- Visionary … (2) Talent Fanatic … (3) Inspired Profit Mechanic. Project Team Golden Triangle (1) Champion-Maniac. (2) Implementer-Pol. (3) Schedule & Budgets Fanatic. 4. Leadership Mantra #1: IT ALL DEPENDS! 5. The Leader Is Rarely/Never the Best Performer. 6. Leaders LOVE the MESS! 7. Leaders Groove on AMBIGUITY! 8. LEADERS “We are in a brawl with no rules.” Paul Allaire The Kotler Doctrine: 1965-1980: R.A.F. (Ready.Aim.Fire.) 1980-1995: R.F.A. (Ready.Fire!Aim.) 1995-????: F.F.F. (Fire!Fire!Fire!) A Bias [ ISOE #1: for Action] “I don‟t know.” Karl Weick “The leader who says „I don‟t know‟ essentially says that the group is facing a new ballgame where the old tools of logic may be its undoing rather than its salvation. To drop these tools is not to give up on finding a workable answer. It is only to give up on one means of answering that is ill-suited to the unstable, the unknowable, the unpredictable. To drop the heavy tools of rationality is to gain access to lightness in the form of intuitions, feelings, stories, experience, active listening, shared humanity, awareness in the moment, capability for fascination, awe, novel words and empathy.” - Karl Weick Weick I Uncertainty will be based less on insufficient facts and more on insufficient questions. There will be fewer experts and more novices. There will be more of a premium on stating in motion than on detaching and reflecting. There will be more migration of decisions to those with the expertise to handle them, and less convergence of decisions on people entitled by rank to make them. Weick II There will be fewer attempts to capture the big picture and more attempts to capture the big story, with its ongoing, dynamic plot. There will be more focus on updating and plausibility and less on forecasting and accuracy. There will be more improvisation and fewer routines. There will be more humility and less hubris. Source: The Future of Leadership, Warren Bennis et al. 9. Leaders DELIVER! 10. LEADERS FOCUS! Priority #1 “To Don‟t ” List 11. Leaders Win Through LOGISTICS! 12. “Leaders” Know: POWERLESS IS COOL! THE IDEA “4Fs”:Find a Fellow Freak Faraway World‟s Biggest Waste … Selling “Up” Heart of the Matter F2F!/K2K!/1@T/R.F.A.* *Freak to Freak/Kook to Kook/ One at a Time/ Ready.Fire!Aim. Opportunity ALWAYS Knocks VFCJ* “Strategy” *Volunteer For Crappy Jobs Is It … “The Oh-Hell-I-Wish-It-Were- Over Memorial Day picnic” or “The First Annual Seriously Kewl Celebration of Our Incredible Staff” Is It … Wrestle the damn Safety Manual into line with the ridiculous new OSHA Regs? Or … A stealth opportunity to address the War for Talent via … a thoroughgoing review of how safety and environmental issues contribute to making this a Great Place to Work? Reframers‟ Rules: accept an Rule 1: Never assignment as given! (Please.) Rule 2: You‟re never so powerful as when you are “powerless”! Rule 3: Every “small” project contains the entire enterprise DNA! BOTTOM LINE The Enemy! Joe J. Jones 1942 – 2001 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM! Characteristics of the “Also rans”* “Minimize risk” “Respect the chain of command” “Support the boss” “Make budget” *Fortune, article on “Most Admired Global Corporations” The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo 13. Leaders Understand Ultimate Power the of RELATIONSHIPS. 14. Leaders Wire the Joint! 15. Leadership Is Improv! 16. Leaders Trust in TRUST! 17. Leaders Are Natural EMPOWERMENT FREAKS! WOMEN RULE! “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” Title, Special Report, Business Week, 11.20.00 The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one‟s place”! Women‟s Stuff = New Economy Match Improv skills Relationship-centric Less “rank consciousness” Self determined Trust sensitive Intuitive Natural “empowerment freaks” [less threatened by strong people] Intrinsic [motivation] > Extrinsic 18. Leaders FORGET!/ Leaders DESTROY! 19. Leaders Are Terrified of “Fighting the Last War.” Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” Dee Hock The [New] Ge Way DYB.com The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M RM: “A lot of companies in the Valley fail.” RN: “Maybe not enough fail.” RM: “What do you mean by that?” RN: “Whenever you fail, it means you‟re trying new things.” Source: Fast Company Forbes100 from 1917 to 1987: 39 members of the Class of ‟17 were alive in ‟87; 18 are in ‟87 F100; the 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market from 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of ‟57 were alive in ‟97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies that Are Built to Last Underperform the Market [20. BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the Bathwater.”] [Life‟s a Bitch.] 21. Leaders … HONOR THE ASSASSINS … in Their Organizations! 22. Leaders … HIRE [a Critical Mass of] ASSASSINS! QCC/Quick Culture Change Hire Weird Promote Deep Rule of Three (3 = Critical Mass) Nasser‟s Triad*: The Internet Is the New Job 1 Brian Kelley, 40, head of global sales and service (GE appliances); first non-“car guy” in the job Karen Francis, 38, eBusiness czar (Olds brand boss) Marv Adams, 43, CIO (Bank One‟s IT infrastructure consolidator) * All three are “direct reports” 23. Leaders HANG WITH FREAKS! Message: TAKE SOMEONE NEW & WEIRD TO LUNCH TODAY OR TOMORROW. [Inundate yourself with weird.] Button-down Org H.S.D.E. . • Acquire for market share • Acquire for innovation • Suck up to biggest customers • Partner with cool customers • Pursue “strategic vendors” • Seek out pioneering vendors • Bigger is better • Break it up … to refresh • Accept assignments as given • Reframe all tasks to innovate • Hire 4.0s from “top schools” • Hire “intriguing,” wherever • Promote when they‟ve “paid • Promote tomorrow if the work their dues” product is weird and WOW • Appoint a “prestigious” board • Appoint an interesting, headstrong board • Hang out with my pals • Take a freak to lunch today • R.A.F. • F.F.F. • Be “professional” at all • Stay loose, stay cool/The hell times/Honor thine elders with thine elders 24. Leaders Make [Lotsa] Mistakes – and MAKE NO BONES ABOUT IT! 25. Leaders LAUGH! “Fail faster. Succeed sooner.” David Kelley/IDEO “Learn not to be careful” Photographer Diane Arbus to her students (Careful = The sidelines, per Harriet Rubin in The Princessa) 26. Leaders Love to Work with OTHER LEADERS! “Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive.” John Roth, CEO, Nortel 27. Leaders Set DESIGN SPECS. 28. Leaders Know When to CHALLENGE Design Specs! DESIGN POWER! 29. Leaders Don‟t Create “Followers”: THEY CREATE LEADERS! Just Ask Jack! 30. When It Comes to TALENT … Leaders Don‟t Income Average! From “1, 2 or you‟re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent (05.17.00) Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years) PERSON Arthur Blank: BEST IN THE WORLD TO HEAD EACH INITIATIVE E.g.: COO of IKEA to head international expansion Ed Michaels, War for Talent (05.17.00) “We believe companies can increase their market cap 50 percent in 3 years. Steve changed 20 of Macadam at Georgia-Pacific his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years.” Ed Michaels, War for Talent (05.17.00) people are Message: Some better than other people. Some people are a helluva lot better than other people. 31. Leaders have MENTORS. Leaders MENTOR. Find- Goal of the Year No. 1*: Develop-Mentor ONE Extraordinary Person. *CEO, large financial advisory firm, April 2001 32. Leaders LOVE RAINBOWS – for Pragmatic Reasons. “Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.” G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge Job1: TALENT! “We have transitioned from an asset-based strategy to a talent-based strategy.” Jeff Skilling, CEO, Enron 33. Leaders LOVE the Technology! “Believe in the Internet … MORE THAN EVER.” 1 Andy Grove, Cover quote, Wired (June 200 ) 34. Leaders Out Their PASSION! “A leader is a dealer in hope.” Napoleon 35. Leaders Know: ENERGY BEGETS ENERGY! “I am a … DISPENSER OF ENTHUSIASM!” “Entusiasmatore” Word invented by Silvio Berlusconi, meaning enthusiast-salesman “It is impossible to claim that all good teachers use similar techniques: some lecture nonstop and others speak very little; some stay close to their material and others loose the imagination; some teach with the carrot and others with the stick. But in every instance, good teachers share one trait: a strong sense of personal identity infuses their work. „Dr. A is really there when he teaches.‟ „Mr. B has such enthusiasm for his subject.‟ „You can tell that this is really Prof. C‟s life.‟ ” Parker Palmer, The Courage to Teach 36. Leaders Give … RESPECT! “It was much later that I realized Dad‟s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a was bishop or a college president. He seriously interested in who you were and what you had to say.” Sara Lawrence-Lightfoot, Respect 37. LEADERS SHOW UP! 38. Leadership Is a Performance. BELIEVE IT. “You must be the change you want to bring about.” 39. Leaders Have a GREAT STORY! “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership 40. Leaders Create BUZZ! 41. Leaders Give Everyone a CAUSE! “Create a „cause,‟ not a „business.‟ ” 42. Leaders MAKE MEANING. Make Meaning: Guide a Discovery Process [KW] 43. Leaders Pursue DRAMATIC DIFFERENCE! 1st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/“One Great Thing.” Source #1: Personal Passion) 2ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3RD Law: DRAMATIC DIFFERENCE (Execs Don‟t Get It: “intent to purchase” – 100%; “unique” – 0% to 5%) Source: Jump Start Your Brain, Doug Hall 44. Leaders Focus on the SOFT STUFF! Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] [Otherwise, why bother? Just read Dilbert. TP‟s final words: CYNICISM SUCKS.] “Soft” Is “Hard” PASSION RULES! 45. Leaders KNOW They Can Make a Difference! “A real superstar is mean in a particular way. He is Michael Jordan or Cal Ripken, greedy for records and history. Armored and self-contained, his inner core is a hard knot of physical talent and fierce will. Nothing penetrates that core, and anybody or anything that gets too close is out of his life.” Michael Sokolove, “The last Straw” 46. Leaders LISTEN! 47. Leaders LOVE “POLITICS.” 48. Leaders LEARN. 49. Leaders???: See Below 50. Leaders Know WHEN TO LEAVE! Bottom Line2001 Have you changed civilization today? Source: HP banner ad “Let’s make a dent in the universe.” Steve Jobs I. Personal Stuff … Indefatigable “indefatigable” … “courage” … “love the thrill of the hunt” … “must not have just a desire to win, but a need to win” … “enjoy doing things they don‟t know how to do” … “seek out discomfort zones in order to gain new experiences” … “willing to piss people off” … “LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES” You Must Care! “Leaders care!” … “The true definition of leadership is service.” … “genuinely care” … “Leaders CARE!” … “Leadership is service.” … “LEADERS SERVE.” Real! “Leaders are living individuals whom employees can smell, feel, touch their presence” [the elevator test] … “Leaders love their work. That passion is infectious.” … “ „It‟s only business, not personal‟ … IT ALWAYS IS PERSONAL.” … “If you love what you do, it shows. You cannot fake love and succeed.” Integrity “ooze integrity” … “certain things I‟ll never do” … “shoulder the unpleasant tasks” Misc. Know yourself … Aware of your impact on others … Have an Honest Coach … Take breaks II. Tactics … “Sweat the small stuff” [cultural giveaways: the clean parking lot, etc.] … “Build/Design” beats “Design/Build.” … Ferret out the truth/Find cool internal sources: LEADERS NEVER HEAR THE TRUTH … “COMMUNICATE RELENTLESSLY” … ASK BETTER QUESTIONS … “Hire smart – go bonkers – have grace – make mistakes – love technology – start all over again.” … “Leaders are never afraid to walk away from business.” … “Leaders select their battles carefully.” … “A leader must hear the wrong notes.” … “Leaders have a kid alive in them.” … “Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE.” … “Real leaders don‟t always get their way.” [creative director] Thank You, 267 FOFC! POTUS The(Leadership) Perspective from A58. KENNEDY. Visionary. Fresh. Lousy pol. Rejuvenated America. Set the table for LBJ. JOHNSON. Great pol. Gutsy pol. (Civil Rights Act.) (GUTSY pol = Visionary?) Sucked into swamp, uncharacteristically. (Vision-less? Or: Who woulda known?) NIXON. Visionary. (Foreign Affairs.) (Pick your causes: Couldn‟t care less about “domestic stuff.”) Fab #2: HAK. Torpedoed by lack of character. (But: ALL POTUSs OBSESSED BY RE-ELECTION.) FORD. “Tone Man.” (Just what we needed.) No vision. (Or: Tone = Vision?) Mediocre pol. Who cares? (Thank you, Jerry.) CARTER. Visionary. (Sorta: Negative visions are … well … Negative.) Lousy pol. REAGAN. (True) Visionary. K.I.S.S. (Benefited from Carter‟s negativism.) Delegater. Good pol. (Ron & Tip.) BUSH I. No vision. Mediocre pol. Calm after RWR. (Sorta like Ford.) (We‟d had enough Vision!) CLINTON. Vision. (Thwarted by TCI/The Character Issue.) (Too much “vision”: health care.) Great pol. (Billy & Newt Show.) (Character “hangover” killing Dems in Bush II.) (Legacy = CONFUSING.) (B-I-G) Lesson: Leadership is only “simple” to the simple- minded!