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Archive for the ‘Leadership’ Category

The Good, The Bad & The Ugly - Part 2

Tuesday, September 7th, 2010

A couple of weeks ago I wrote about Mark Hurd’s sudden departure from HP, stating:

…months prior to being placed on the “crosshairs of failure,”more often than not, these individuals (like Mark Hurd) were being praised for their leadership acumen, their business insights and strong stewardship capabilities. They were the future, and being treated accordingly. However once the shoe fell, everything good was displaced. The list of accolades, forgotten. The awards, dismissed. The strong words of praise, erased. Everything feels and appears different.

Needless to say, such events are messy situations, with everyone focused on covering their perverbial A**.  And in this whirlwind, emerges the The Good, The Bad & The Ugly as relates to forced outplacement of key executives.

Well over the weekend, Mark Hurd’s friend and perverbial cheerleader during the crisis, Oracle’s Larry Elison, came to Mark’s rescue by offering him a position as a President. And now, not surprisingly, HP is going after Hurd with a vengeance. “In his new positions, Hurd will be in a situation in which he cannot perform his duties for Oracle without necessarily using and disclosing HP’s trade secrets and confidential information to others,” HP said in a blog posting.

Hurd, the chosen one, is quickly losing favor and face. And while Mark Hurd may have embarrassed the HP Board upon his departure, I believe that this will be payback time for HP - rightfully so. And this will become the ugly part of Mark Hurd’s legacy. This is one cat fight that Mark Hurd entered willingly and will reveal his true personality as a business leader and as an individual. And my guess is - his name will be toast.

Exit - Stage Left

Tuesday, August 17th, 2010

Have you by chance wondered about the CEOs of the two P’s, and what really got in their way? I’m referring to Mark Hurd of HP, and Tony Hayward of BP. From what I’ve read and been able to discern, each of these had SPs (silent problems) to the max. And due to their SP affliction, HP’s and BP’s stock has suffered, and their careers derailed.

Each has exited Stage Left. Stage left for Tony Hayward means frequent trips to Siberia for the foreseeable future. The crisis in the Gulf will forever be associated with his name. For Mark Hurd, we’re unsure, although it was reported pocketed a quick $28 million, which should provide him plenty of options - including a quick retirement. However in the bigger picture, Mark Hurd symbolizes another epic chapter of HP. It’s too bad, because there’s a lot of blame to go around over at HP.

For any leader, Exit - Stage Left is rarely a pretty event. It’s filled with drama, and emotions and too much hurt. The need for true leaders is greater today than ever, unfortunately, there appears to be a shortage of them in the marketplace.

The Good, The Bad, & The Ugly

Wednesday, August 11th, 2010

Each year, hundreds of business executives find themselves in the crosshairs of outplacement. Some are being replaced due to lack of financial performance. Others due to a lack of strategic direction, cultural fit, and from time to time, reasons related to ethical and moral concerns. Quite often, these events turn into a media fiasco. Just mention the name Mark Hurd (H-P) or Tony Hayward (BP), guess what happens. You’re likely to have a strong emotional reaction to them as an individual and as a leader.

Guess what? It wasn’t always that way. In fact, months prior to being placed on the “crosshairs of failure,”more often than not, these individuals were being praised for their leadership acumen, their business insights and strong stewardship capabilities. They were the future, and being treated accordingly. However once the shoe fell, everything good was displaced. The list of accolades, forgotten. The awards, dismissed. The strong words of praise, erased. Everything feels and appears different.

Needless to say, such events are messy situations, with everyone focused on covering their perverbial A**.  And in this whirlwind, emerges the The Good, The Bad & The Ugly as relates to forced outplacement of key executives.

When Superstars Become A Problem

Friday, July 2nd, 2010

One of the most challenging decisions business leaders face is when their superstar becomes a problem. You know the person. Maybe its a sales manager that customers love, yet employees hate. Maybe it’s a V.P. that holds tremendous knowledge, yet disrupts every meeting at the last minute. Or maybe its an executive that believes corporate ethics and values don’t apply to them.

So how do most people cope when situations like these occur? Most people simply cope by getting out of the way or they leave  the organization. The impact on the organization - can be HUGE.

Yes, most of us have worked with one or reported to one of thse bigger than life characters in our careers. Unfortunately, it’s a problem that is often avoided or neglected, which pulls it under the umbrella of being a silent problem.

A couple of weeks ago the Rolling Stones published a riveting article titled The Runaway General. A story about General Stanley McCrystal, the former head of Afghan military operations. It’s a troubling story, because it’s a “when a superstar becomes a problem” story. Its a story about how an individual rose up through the ranks, yet what brought him down was his own weaknesses. For instance the story states,

By some accounts, McChrystal’s career should have been over at least two times by now. As Pentagon spokesman during the invasion of Iraq, the general seemed more like a White House mouthpiece than an up-and-coming commander with a reputation for speaking his mind. When Defense Secretary Donald Rumsfeld made his infamous “stuff happens” remark during the looting of Baghdad, McChrystal backed him up. A few days later, he echoed the president’s Mission Accomplished gaffe by insisting that major combat operations in Iraq were over. But it was during his next stint – overseeing the military’s most elite units, including the Rangers, Navy Seals and Delta Force – that McChrystal took part in a cover-up that would have destroyed the career of a lesser man. 

After Cpl. Pat Tillman, the former-NFL-star-turned-Ranger, was accidentally killed by his own troops in Afghanistan in April 2004, McChrystal took an active role in creating the impression that Tillman had died at the hands of Taliban fighters. He signed off on a falsified recommendation for a Silver Star that suggested Tillman had been killed by enemy fire. (McChrystal would later claim he didn’t read the recommendation closely enough – a strange excuse for a commander known for his laserlike attention to minute details.) A week later, McChrystal sent a memo up the chain of command, specifically warning that President Bush should avoid mentioning the cause of Tillman’s death. “If the circumstances of Corporal Tillman’s death become public,” he wrote, it could cause “public embarrassment” for the president.

Superstars create numerous challenges. First, they often believe they’re part of an elite group, which makes it difficult to hold them accountable. And its this status they believe provides them priveleges and unlimited “get out of jail” cards when a problem emerges. Second, they can hold the team and the organization hostage. At times, they view themselves as “untouchable.” Third and possibly most important, they can be very difficult to get rid of, because they have the connections and the knowledge that could put your organization in harms way.

So what are the lessons we should heed?

  1. Be careful when putting superstars in leadership positions. Do your homework up front.
  2. Realize no one is irreplaceable. Be prepared to cut the line sooner, rather than later.
  3. Remember, toxic superstars add to your bottom-line, but also take away from it through higher turnover and diminished performance.

At the end of the day, every organization is in search of superstars. However at the beginning of the day, make certain they’re the right fit.

Oren Harari - A Tribute

Wednesday, April 21st, 2010

I was introduced to Oren Harari about 5-years ago at a Vistage Conference being held in DC. Oren was the keynote speaker for a noon luncheon, and one I remember to this day. Oren being about 6′ 5″ or so and a mere 170 lb. or so was dynamic and energetic. I remember Oren pacing back and forth across the stage telling one story after the next - it was memorable.

Since that day, I’ve followed Oren on his blog and read a couple of his books. He was a great thinker! A couple days ago I learned that Oren died. I’m sad, we lost a great thinker that had more to give. However, I’m not going to write about Oren’s accomplishments, but rather, his next to last blog. You see, thought leaders are always studying and thinking about the system, even when they’re part of the system. On December 17th, Oren wrote his next to last blog on his site, it was titled, What Cancer Survivors Can Teach Entrepreneurs. I thought at the time, this is a unique perspective about the great game of business. What I didn’t realize at the time was that Oren was a patient in the system. He was writing not as a researcher, but rather a patient. It appears he was destined to not allow a bad situation emerge without a few good learnings. Here are few take aways from that blog entry.

Glioblastoma multiforme (GBM). GBM is the most common and aggressive type of primary brain tumor in humans… Make no mistake, GBM is a virulent killer. The statistics are pretty horrific. Only 10% of people who get diagnosed with it even survive until the second year, and only 1% survive 5 years.

And yet….And yet…. There is still cheer for this holiday season. There are lots of individuals with GBM who not only survive, but they go on to lead long, healthy, happy productive lives. What’s their secret? And how does that secret help an entrepreneur or leader of a start-up business?

Well, I did a little bit of investigation on this subject and came up with an interesting conclusion that may surprise you. It did me.
What the GBM survivors do is seemingly ignore the devastating aggregate data on the disease that’ is available throughout the Web. They’re not ignorant of the disease they have: of course,they research it. They know what they are up against, but they concentrate daily only on the specific data they need to succeed in their own unique personal journey.

Okay, so back to the title of this blog—what does all this have to do with entrepreneurialism?

Quite a bit, actually.

My research over the past couple decades has demonstrated that many successful entrepreneurs would never have launched their businesses in the first place (nor worked at a frenetic daily 24/7 pace) if they had dwelled on the overwhelming challenges facing them in the marketplace, or even within their own organizations.. That is one reason that entrepreneurs are slightly insane to begin with.

Optimism on its own can be catastrophic: witness the irrational rise and inevitable blow-ups of the Internet and housing bubbles over the past decade. No, what I am talking about is more than optimism. It is unyielding focus, concentration, determination, a vision of clear goals, and plain unyielding persistence, , one day at a time, regardless of the external views that you are a damn fool for venturing into the shark-infested waters in the first place. Optimism is the consequence of this process, not the instigator.

 By definition entrepreneurs are separated from the traits and behaviors that proliferate among those in the “normal” population. Let’s remember: Deviant monomania in goals and in executions is what drives significant improvements in medicine, business and national economies.

Suggestion: put a cancer survivor on your board of directors.

When I read this post from Oren, it gives me goose bumps. And never once in his post does he give us the insight or inclination that he is a part of the system. And despite the situation, Oren had a lesson to teach. Life is short, so never overlook a teachable moment. It may be your last and most memorable lesson.

Thank you Oren, I will miss you.

Second Chance Points

Wednesday, April 7th, 2010

I’ve been intrigued with the David vs. Goliath story that unfolded over the past month, aka Butler vs. Duke in the NCAA Basketball Tournament. It’s been a story few could have imagined, and am certain will be a movie in the future. It rates right up there with Herb Brooks and the 1980 Olympics, where the US Men’s hockey team upset the highly favored Russian team, and eventually took Gold. Despite the phenomenal storyline, there is an integral business and leadership lesson that lies in each of these stories. This being “Second Chance Points.”

CBS analyst and commentator Clark Kellogg in his coverage of the Road to March Madness introduced me to the importance of Second Chance Points and Points off Turnovers (Part 2). In basketball, second chance points occur when there is a missed shot and the  team on offense gets the rebound or recovers the ball following a missed shot and scores. If a team is aggressive, smart and talented, they get more second chance opportunities and second chance points than the opposition.  How does this relate to business success or leadership?

Nobody bats a thousand every day. And from time-to-time, even the most disciplined businesses and leaders mess up. An order was incorrectly shipped. A client sales call didn’t go smoothly. A deadline was missed. A product recall is initiated. An employee didn’t follow through on a commitment they made. If you’re a competitor, you realize the potential for picking up new business increases exponentially when the competition messes up. However, on occassion good companies get a second chance - great companies almost always get a second chance. They get a second chance because they have developed a deep relationship with their customers. In essence, the company’s value proposition is always greater than the product or service they sell. And because the value proposition is high, they are given a second chance. And if they leverage their second chance opportunity, they’re even able to score points off of the initial miss. Think of these contrasting companies and second chance points. Which companies have been able to leverage second chance opportunities?

Southwest Airlines vs. Delta, American or Spirit Airlines
Apple vs. Microsoft
Google vs. AOL or Yahoo
Netflix vs. BlockBuster

I’d suggest that Southwest, Apple, Google and Netflix are positioned to leverage Second Chance Points. Because when you’re given a second chance, you have the luxury of being able to learn from your mistakes. When you aren’t offered a second chance, you die by your mistakes. This is why companies must fight their way to earn the right to be given a second chance.

So what do organizations need to do to position themselves for Second Chance Opportunities and Second Chance Points?

  1. Build deep relationships with customers, employees, and suppliers.
  2. Remain true to the Vision and Values of the organization.
  3. Acknowledge missed opportunities, fix them and learn from them.
  4. Celebrate Second Chance Points when they occur.
  5. Never take for granted that you will be offered a second chance.

Second Chance Points are huge strategic advantage when you’ve earned them, because it makes it more difficult for competitors to displace you. In the next blog, we will discuss turnovers and points off turnovers - stay tuned.

What We Can Learn From March MADNESS

Monday, March 29th, 2010

Two weeks ago, the NCAA selected the top college basketball teams across the country by offering them an invite to March Madness. Four regions with 16 teams each. Each region would have a Number 1 seed. Kansas, Syracuse, Duke and Kentuckywere given the Number 1 seeds. And within days following the selection, the madness began. In fact one report circulated that the number of scheduled vasectomies increases by 50 percent the day before the first tip-off of March Madness. It appears the recovery time from this procedure is two days, which means two days to watch basketball non-stop with a doctor’s order to do nothing but rest and relaxation. For some, this is evidently a win-win scenario.

Despite the rampant enthusiasm that can surround March MADNESS, several leadership lessons are noteworthy. Some of these being:

1. Winning Teams Get Better: Winning teams figure out how to be at the top of their game. This is accomplished through conditioning, coaching and creating that “can do” confidence.
2. The Best Team Doesn’t Necessarily Win: This year’s tournament has been filled with unexpectant upsets. In fact only one #1 seeded team advanced to the Final Four, this being Duke. In business and basketball, major upsets occur everyday.
3. Competitive Advantage: Basketball coaches and business leaders must identify their competitive advantage and then figure out how to leverage it in the marketplace. This is achieved by understanding the market, asking lots of questions, and then leveraging your advantage(s) to achieve success.
4. Leverage Talent: Winners simply figure out how to leverage talent, and then figure out how to utilize it to their advantage.
5. Respect the Opponent: Upsets occur everyday in basketball and business. Teams win because they want to win, not because they deserve to win.
6. Good at the Little Things: Great teams spend a lot of time on doing the basics really well. And when you look at how teams lose, it can often be tied back to how they fail at the little things.
7. Momentum: Momentum is often overlooked, however its importance is paramount. Winning teams know how to build momentum over a season, and how to leverage it second-by-second in a game. In the game of business, momentum is integral to success.
8. Communication: Winning teams know how to communicate really well. They listen. They watch. They move to the open spot on the floor.

March is a special time of the year, especially for basketball fans. For many players, its the end of the season and the end of their careers as basketball players. However, the lessons learned on the court can be directly transferred to life and to business. Unfortunately, too many athletes forget these important lessons. At the end of the day it boils down to talent, leadership and team, and this is what makes basketball, business and March Madness special.

Wondering Around

Saturday, March 20th, 2010

Is there such a thing as “The Art of Wondering?” I think there is, although most of us have probably lost our zeal to pursue it. In fact “Wondering” is at the heart of innovation, discovery and enlightenment. Wondering Around is a simple idea from Seth Godin, and it was a mistake. Here is his blog post on Wondering Around.

I stumbled on a great typo last night. “Staff in the lobby were wondering around…”

Wandering around is an aimless waste of time.

Wondering around, though, that sounds useful.

Wondering why this product is the way it is, wondering how you can make the lobby more welcoming, wondering if your best customers are happily sharing your ideas with others… So many things worth wondering about, so few people actually taking the time to do it.

Wondering around is the act of inquiring with generous spirit.

I believe that Seth Godin has stumbled upon a B-I-G idea that can make a difference. I can honestly state that I’m a Wondering kind of individual, and it was a foundational component of my book, Without Warning. The amazing thing about Wondering is it takes virtually no effort and it can be truly delightful and enlightening.

I encourage you to pursue your day with a bit of Wondering Around.

The Uncover Boss - A New Job Requirement?

Monday, March 15th, 2010

Is reality TV finally living up to its name? Most of what we are served up under that rubric is actually the farthest thing from reality. The exploits of Snooki, Jake the Bachelor, and all those Real Housewives hardly reflect life as most of America knows it and lives it… Enter “Undercover Boss,” the new CBS reality show in which corporate CEOs don disguises and spend a few days experiencing what it’s like to be a low-level worker at their companies. Arrianna Huffington

Procter & Gamble Co.’s Bob McDonald is going undercover in Latin America next week. Posing as a market researcher, the chief executive officer will accompany shoppers to stores or make home visits. The trip, to Brazil, Mexico and Argentina, will be his 59th since taking charge in July and is central to his plan to reach 1 billion new customers by 2015. (P&G’s McDonald Pins Growth on Closer Shave Than Mumbai Barber by  Mark Clothier)

Leaders understand that what happens and what is known, can be odd bedfellows. For some leaders, its the ultimate defense for the leadership gaffs we’ve experienced in recent years. Companies like Toyota, GM, the SEC (The Securities & Exchange Commission) and others come to mind. Just having at one’s disposal a, “I didn’t know that…” can be sacred shelter to the psychic of a weak leader.

However for most leaders, the “I didn’t know…” is cheap rhetoric and a feeble excuse. They actually want to know and understand what is really going on, how people really feel about their jobs and the company’s products, and what lurks silently in the corners. For they know that to lead, they also need to know what is really going on. They actually fear the silent problems they may not yet know or be aware of. How can they achieve this? Here are a few suggestions I make in my Silent Problem presentation.

  1. Be an outstanding listener. And the best way to becoming an outstanding listener is to be excellent at asking insightful questions.
  2. Shadow: Become the undercover boss that sees the business from the eyes of the employee or the user of your products & services.
  3. Conduct regular One-to-Ones: Don’t ask for fancy powerpoints. Simply ask, “Tell me what is going on.”
  4. Create a culture of candor: The door into your office needs to be every bit as large for bad news, as it is for good news.
  5. Management by Walking Around: It is highly effective and well worth the effort and time. Check out this link, Doing the Walk Around
  6. Be constantly searching for silent problems and be diligent in solving them (more on this in the book Without Warning).

CBS’s show Undercover Boss is simply another variation of reality TV that is trying to expose a unique angle on life. Is it cheesy? Yes. However, it does expose the gap between what can happen in the organization and what the leader knows come to life. And there is a lesson in this. Part of being an effective leader is being an Undercover Boss.

Toyota’s Who Is No. 1 Challenge

Friday, January 29th, 2010

Everyone knows the challenge Toyota Motor Company is facing with sticky gas pedals. We know that Toyota and its dealers have suspended manufacturing and sales of the affected models. We know that millions of current owners are greatly concerned about the cars they drive to work or use to transport their family. We know that a design fix has been made by Toyota’s supplier CTS, and it is shipping. We don’t know who will receive the limited resource (the new pedal design) first.

So here is Toyota’s Who Is No. 1 Challenge.

The Factory Scenario: If the factory receives the parts first, production facilities can be restarted, 1000s of employees will move back to a normal work schedule, and new cars can be shipped to dealers and ultimately purchased by consumers.

The Dealer Scenario: If the dealers start to receive the updated pedal assemblies first, they can begin installing them on cars in their lots, which will enable new car sales to resume. In turn, plants will remain idol and cars currently in use will remain at risk.

The Customer Scenario: If the customer is the top priority, new pedal assemblies will be shipped to dealers and cars with defective pedals that are currently in use can be repaired, thereby satisfying the needs of the existent customer. In this scenario, plants remain idle, and new cars on dealer lots aren’t available for sell.

The Modification: Toyota and its supplier CTS is talking about providing a modifaction kit for cars currently in use. This would allow updated pedal assemblies to be used by the factory and dealer installs on new cars currently sitting on dealer lots. Will customers be truly satisfied with a so-called fix?

Which scenario will Toyota pursue? Which scenario should Toyota pursue?

It’s a tricky question, because it gets to the crux of “Who is No. 1.” If Corporate Profits are Number 1, factories will receive the assemblies and a few might leak through to the dealers. If the Dealer is No. 1, dealers can begin moving stagnant inventory and keep their sales staff productive. If the Customer is No. 1, consumers will feel valued and might be forgiving.

Now let’s take one additional piece of information into consideration, this being Toyota’s Mission and Values Statements.

Mission Statement

“To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America.”

Vision Statement

“To be the most successful and respected car company in America.”

 

With everything now on the line. Which next step should Toyota pursue? I believe their next step will truly determine whether or not they live their Mission and Vision Statements.  I believe it will define Toyota’s future success, or decline. Unfortunately, it could have all be avoided.

What do you think? Which demand point should recieve the new pedal assemblies?

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Without Warning - Rondey Johnson

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