2^nd Annual Worldwide Lessons in

Leadership Series

Shared Leadership in the New Workplace

"Thriving on True Teamwork"

October 23-24, 1997

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Moderator

Geoffrey Colvin Editorial Director – Fortune Magazine

Presenters

• Ken Blanchard
• Stephen Covey
• Peter Drucker
• Gary Hamel
• Rosabeth Moss Kanter
• Kenichi Ohmae
• Tom Peters
• Peter Senge

Fortune 500 Forum

• Lewis Platt – HP
• John Trani – The Stanley Works
• Alfred Zeien – Gillette

Ken Blanchard – "Gung Ho!"

3 Legged Stool – Managing by Values

• Gung Ho Employees
• Financial Success
• Raving Fans Customers
• What would happen if we managed our hard assets the same way we manage our human assets?

3 Secrets to Gung Ho

The Spirit of the Squirrel

• Knowing we make the world a better place
• Receptionist = Director of 1^st Impressions
• Shipping = Director of Fulfillment
• Window Washer = Director of Clear Vision
• Everyone works toward a shared goal
• Values guide all plans, decisions, and actions

Goals	Values
Focus	Inspire
Future	Now
Written	Lived

The Way of the Beaver

• A playing field with clearly marked territory
• "a river without banks is just a big puddle"
• people want control over their jobs
• Thoughts, feelings, needs, and dreams are respected, listened to, and acted upon
• Able, but challenged

The Gift of the Goose

• Active or passive, congratulations must be TRUE
• Active – 1 minute praise
• Passive – give them a task and room to run with it
• TRUE – Timely, Responsive, Unconditional, Enthusiastic
• No score, no game, and cheer the progress

Praise them for progress, not just outcomes

• E=MC² – Enthusiasm equals mission times cash and congratulations
• Mission (Squirrel & Beaver), Cash (meeting basic needs)

Seagull Leadership – Leader flies off on their own until they hear a noise (problem). Then they fly back, make a bunch of noise, dump on everyone, and then fly off on their own again.

Stephen Covey – Principle Centered Living and Leading

3 Constants

• Change
• Principles – natural laws that are universal, timeless, self-evident, transcultural
• Choice – an individuals power to deal with the 1^st two

Observations

• 90% of people’s imagination is not captured or employed in their workplace
• 60% of people are caught up in some form of dysfunctional behavior
• 100% of us feel maxed out

Dilemmas

Marketplace

• Business is run by the economic rules of themarketplace
• Organizations are run by the cultural rules of the workplace

Business

• Management wants more for less
• Employees want more for less

Individual

• People want peace of mind and good relationships
• People want to keep their habits and lifestyles

Society

• Relationships are built on trust
• Individuals think and act in terms of "me" (my needs, wants, etc…)

Mother Theresa – Prayer à Faith à Love à Service à Peace

Key Questions to be asked by Servant Leaders

• How is it going?
• What are you learning?
• What are your goals?
• How can I help?

"People who sacrifice for a higher vision and live according to principles have a why to go with their what"

"95% of leadership failures in the last 100 years have been born in failed character."

Peter Drucker – How to Develop New Leaders

Introduction

• Developing new leaders is very important but not done often or well.
• Leadership development is a key differentiator of successful enterprises.
• Why don’t we do it?
• Top people are threatened by strength under them
• We tend to fear people who are different than we are

Become a student of the next generation

• Talk to them; listen to them; KNOW them
• Leverage their strengths by placing them well
• Expose them to learning challenges

Drive them to continually learn from their experience

• Challenge them to determine in advance what they expect to learn from a specific activity or endeavor.

Give them tremendous responsibility

• Take big risks with them based on your perception of their strengths
• Expose them to new challenges often

Demand that they in turn become developers of others

• Generously reward those who develop other people
• Measure/Track how many people they "export" to other projects/divisions

Defer to their facilitation in meetings where they have expertise

• The senior leader does not abdicate leadership responsibility
• Note: There is no such thing as shared leadership in a crisis situation

Put them into "joint venture" or "shared leadership" situations

Set aside time for their ongoing education

• Have them teach others to push their learning efforts

Meet with small groups of emerging leaders and have them evaluate their mentoring

• This will help the organization develop mentors
• It will force them to look at things from an executive leadership perspective

Demand and expect much from them EARLY & OFTEN

"Every organization – not just business – needs one core competence: innovation."

Gary Hamel – Creating the Future

Introduction

• "The best way to predict your future is to create it"
• Profile of new competitive challengers
• Home grown, non-traditional, opportunist jumping into the fray
• Product time to 10 million customers
• Telephone – 40 years
• VCR – 9 years
• Java – 100 million – 13 months
• "We are always 2 years from failure" – Bill Gates

Key Observations

• Product/Strategy lifecycles have never been shorter
• Success has never been more tenuous
• World has never been more complex
• Having to create new strategies without a map
• Employees are shaken
• We must build competitiveness without destroying hope
• 1980-95’ – Top 100 companies downsized 25% of labor force

The Revolutionary Imperative

Key Thoughts

• We have come to the end of incrementalism
• "We are running out of headroom to become more successful by simply screwing down costs."
• "We must drop efforts to transform the organization and start transforming the industry."
• Questions:
  • Are we creating a new legacy or living off of one.
  • How do we build the heart of a revolutionary inside an industry incumbent?

How do we do it?

• Challenge existing orthodoxies
• "Strategy has to be subversive. If it’s not challenging internal rules or industry rules, it is not strategy."
• Listen to young people – they are closer to the future you want to create
• Leverage changing elements in our industry
• Imagine a future we can create rather than guessing what might happen
• Leverage our existing core competencies
• Where can we use what we know?

Assumptions

• Imagination is a scarce resource
• Perspective is worth 50 extra IQ points
• There are revolutionaries (pro-change)in every organization
• Victims must become activists
• Change starts at the grass-roots (bottom)
• Examples – Nelson Mandella, Martin Luther King Jr., Muhatma Ghandi
• Top down or Bottom up are not the only avenues for change
• Change is not about extremes
• Change needs to involve everyone in the organization

Wrong Assumptions

• Change starts at the top
• The "top" is usually most entrenched in the old ways of doing things
• People don’t like change
• People don’t like bad change, or poorly executed change
• "We must reverse a paradigm drummed into us from business school to the grave: What worked in the past will work in the future."

Conclusion

"There are two parties, the party of the past and the party of the future" -- Ralph Waldo Emerson

Question – To which one do I belong?

"The best way to create wealth for employees and stockholders is to renew our commitment to developing and executing innovative strategies."

Rosabeth Kanter – Leaders Who Lead Change Well

Able to tune in to the environment at large – LISTEN

• Conducting an ongoing search for ways to be the best next year, not just better than last year
• Listen to your critics
• Look outside your organization and industry for good ideas and new information
• Wider the view, the wiser the decisions (Terry)

Kaleidoscope Thinking – LOOK

• A device for seeing patterns in the environment
• Reality is not fixed – we see through our own personal lenses that others don’t have

Building change ideas into clear statements of vision – COMMUNICATION

• MLK Jr. – "I have a dream" – NOT "I have some great ideas

Coalition Building

• Brining key supporters who can "make it happen" on line
• 2 Groups
• Power Holders – controlling resources, information, political influence
• Stake Holders – those who have something to gain or lose in the process
• Note – learn to plant seeds (scatter ideas) around the organization

Creating teams that own ideas and carry them forward

• Once a team is in place the role of the initiator moves from selling the idea to supporting the implementation team
• Protect them; resource them; encourage them

Persistence and Perseverance

• Every project can look like a failure at the half way point
• The winning team is not always leading at half time (Terry)

Sharing the Credit and Recognition

• If it goes well – "you did it"
• If it goes okay – "we did it"
• If it goes poorly – "I did it"

"We have to switch incentives from careers, level and promotion to personal reputation, teamwork and challenging assignments."

Kenichi Ohmae

This guy is a MUCH better writer than speaker

• "The Mind of the Strategist"

Not really sure anyone knew what he was talking about, including him

Tom Peters – Innovation

Introduction

• "No business can cut its way to success." -- Bill Dahlberg
• "Incrementalism is innovation’s worst enemy." -- Nicholas Negroponte
• "The only sustainable competitive advantage comes from out-innovating the competition." -- James Morse

Innovation

• Organized forgetfulness
• Imagination
• "Imagination is the main source of value in the new economy."
• "Does anyone know what it means to manage the human imagination?"
• Prototyping
• Sony – 5 business days from idea to working model

Keys to Business Success

• Agility – Able to Change
• Absence of Arrogance – Willing to Change

Silicon Valley Success Secrets

• Tolerance of Failure
• Tolerance of Treachery – lack of organizational loyalty
• Trust – "Trust is the oft-ignored glue that holds the virtual organization together."
• Risk Seeking
• Reinvestment
• Enthusiasm for Change
• Promotion based on merit
• Obsession with moving forward
• Collaboration
• Variety

Basis for Competition

• 15 Years Ago – PRICE
• Today – QUALITY
• Tomorrow – DESIGN

Human Drive

• #1 Human drive is desire for control
• Examples
  • Schwab – Financial Services that put consumer in control
  • Grocery – Self-scanning

Areas to Explore – Women, Design, Electronic Commerce

"The bottleneck is always at the top of the bottle."

Peter Senge – Shared Leadership

Introduction

• "At all levels of society we face a host of issues that demonstrate the failings and limitations of hierarchical/authoritarian structures."
• Issues & Efforts
• Environmental Challenges – Legislation
• Economic/Social Inequity – Taxes
• Safety/Security Concerns – Policing
• Business Transformation – CEO
• These systemic issues call for systemic transformation. How do we do it?

Collective/Collaborative Leadership

• For most people – shared/collaborative leadership is oxymoronic.
• Most organizations spend a lot of time looking for the next great man (leader) to do the next great thing.
• "Leadership is the phenomenon by which human communities create their future."
• Leadership is larger than business organizations
• More than individual traits
• Not Equal to Top Manager
• Model

Issues

• Only two options – lower vision or raise reality
• We talk a lot about vision but we don’t talk much about the truth (current situation)
• Leaders must commit to dealing with the truth if we aspire to reach the future
• We interact with reality (truth) and out of that interaction we construct our perceptions.
• Our perceptions govern our behavior.
• We must practice reflectiveness – the ability to explore and understand our own perceptions
• We must learn open mindedness
• We are great advocates – ANSWERS
• We are not great inquirers – QUESTIONS
• CEO’s – Focus Improving the quality of thinking efforts throughout the organization

"Personal mastery is the discipline of continually clarifying and deepening our personal vision, of focusing our energies, of developing patience, and of seeing reality objectively."

"Where there is genuine vision, people excel and learn, not because they are told to, but because they want to."

Lewis Platt – HP

John Trani – GE/The Stanley Works

Alfred Zeien – Gillette

Management vs. Leadership

• Management – maintains ongoing, existing processes
• "to handle"
• slower pace
• "mastery of the mechanical"
• Leadership – creates/changes processes, vision, innovation
• "to go first"
• faster pace

Promote Diagonally

• When promoting – change division, product line, or geography
• Vertical promotions perpetuates existing thinking and inhibits innovation
• Diagonal promotability drives the worker to continually serve their existing boss and their potential new bosses

Leadership Development

• Programmatic – classes, etc.. – positive but should not be the primary development effort
• Experiential – primary means of growing new leaders

3 P’s of Leadership Time Investment

• People – 40%
• Product (or Service) – 30%
• Purpose – 30%

Key Leadership Questions

• Do people clearly understand what they are supposed to be doing? (Goals)
• Do they know how they are doing at getting it done? (Appraisal)

"All great leaders are driven by a passion that is larger than them and even larger than the organization they currently work for."