ETM 5110 LEADERSHIP STRATEGIES FOR PRACTICING ENGINEERS AND SCIENTISTS

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ETM 5110 LEADERSHIP STRATEGIES FOR PRACTICING
ENGINEERS AND SCIENTISTS

• LECTURE 5
• JULY 9, 2003

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ETM 5110 LEADERSHIP STRATEGIESSession 5

• Leadership/Management in a Rapidly Changing
  Environment
• Jack Welch (GE)
• Jim Goodnight (SAS)
• Jerry Ennis (Boldt Construction)
• Craig Weatherup (PepsiCo)
• (Ret.) General Dennis Reimer (MIPT)
• Keys to Success
• Personalizing Leadership
• Personal Mission Statement
• Wrap Up

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ETM 5110 LEADERSHIP STRATEGIES

• Leading/Managing in the New Paradigm
• Principle-centered Leadership
• Aligning
• Empowering (citizenship, ownership, trust)

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ETM 5110 LEADERSHIP STRATEGIESEnvironment

• Increased Globalization
• Increased Competition
• Technology Revolution/Evolution
• Shorter Product Lifecycles
• Downsizing/Rightsizing
• Virtual Organizations
• 9-11
• Enron, WorldCom, Martha Stewart, etc.

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ETM 5110 LEADERSHIP STRATEGIES

• Leading Science and Engineering Breakthroughs
• Inventions
• Next generation/strategic inflection
• Intellectual property/asset management
• Innovations
• Integrated/seamless solutions
• Multi-disciplinary approach

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ETM 5110 LEADERSHIP STRATEGIES

• Disruptive Innovations
• Create growth opportunities
• Breakthrough or incremental
• Strategic Inflection Point (SIP)
• Improve performance (e.g., faster
  microprocessors, better battery for laptops)
• Sustaining
• Simpler, smaller, cheaper
• 1978 cost/MIP 480/MIP
• 1985 cost/MIP 50/MIP
• 1995 cost/MIP 4/MIP

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ETM 5110 LEADERSHIP STRATEGIESNew Problems/New
Solutions

• Vision Technology Innovation Knowledge
  Management Value Creation, Improved
  Productivity, and Sustained Financial Performance

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ETM 5110 LEADERSHIP STRATEGIESLeadership
Characteristics

• Visionary (Thinking Strategically, Globally,
  Commercially)
• Effective Communicator
• Character (Honesty and Integrity)
• Innovative and Bold
• Tough
• Smart
• Able to Assess Risks
• Ability to Build Relationships (Internal and
  External)
• Ability to Process Diverse Information
• Embraces Technology
• Broad Understanding of the Business
• Focuses on Sustainable Growth
• Creates Esprit de Corps
• Gets Results
• Role Model Behavior

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ETM 5110 LEADERSHIP STRATEGIESWhat Really
Works(Nohria, Joyce, and Roberson, HBR, July
2003)

• Primary Management Practices
• Strategy must be well understood by employees,
  customers, partners, and investors
• built on clear value proposition
• developed from outside (input from customers,
  partners investors)
• continuous fine tuning
• clearly communicated to stakeholders
• keep focused grow core business
• Flawless Operational Execution
• products/services that consistently meet
  customers expectations
• decision-making close to front line
• constantly improve productivity
• Culture
• inspire all managers and stakeholders to do their
  best
• empower for improved productivity
• reward achievement with performance-based pay
• pay psychological rewards in addition to
  financial rewards
• create challenging/satisfying work environment

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ETM 5110 LEADERSHIP STRATEGIESWhat Really
Works(Nohria, Joyce, and Roberson, HBR, July
2003)

• Primary Management Practices (contd.)
• Culture (contd.)
• establish and abide by clear organizational
  values
• Structure (whether by product, geography,
  customer, etc., key is to reduce bureaucracy and
  simplify work)
• cooperation and exchange of information across
  the organization
• best people closest to the action
• seamless sharing of knowledge
• Secondary Management Practices
• Talent
• recruit, train, develop, challenge, involve
• keep senior management actively involved in the
  development of people
• Innovation
• relentless pursuit of disruptive technologies
• dont hesitate to cannibalize existing products
• apply technologies to enhance operating processes

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ETM 5110 LEADERSHIP STRATEGIESWhat Really
Works(Nohria, Joyce, and Roberson, HBR, July
2003)

• Secondary Management Practices (contd.)
• Leadership
• choosing great leaders to raise performance
  significantly
• link pay to performance
• encourage managers to strengthen connections with
  people at all levels of the organization
• inspire management to hone its capabilities to
  spot opportunities and problems early
• appoint BOD whose members have a substantial
  stake in the organizations success
• Mergers and Partnerships
• internal generation of growth is essential
• companies can, however, master mergers and
  acquisitions
• enter new businesses that leverage customer
  relationships and compliment core strengths
• make most of both partners talents
• develop a system for identifying, screening, and
  closing deals

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ETM 5110 LEADERSHIP STRATEGIES

• The Value of Shared Values
• Foster strong feelings of personal effectiveness.
• Promote high levels of loyalty to the
  organization.
• Facilitate consensus about key organizational
  goals and the organizations stakeholders.
• Encourage ethical behavior.
• Promote strong norms about working hard and
  caring.
• Reduce levels of job stress and tension.
• Foster pride in the organization.
• Facilitate understanding about job expectations.
• Foster teamwork and esprit de corps.
• Kouzes Posner, Seven Lessons for Leading the
  Voyage to the Future.(From Drucker, The Leader
  of the Future, page 99-110)

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ETM 5110 LEADERSHIP STRATEGIES

• Without Values, Communication, Trust
• Organizational pathologies
• Dysfunctional organizations
• Candidate for turnaround/death spiral

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ETM 5110 LEADERSHIP STRATEGIES

• The Abilene Paradox
• (How projects, ideas gain momentum toward
  questionable end)
• Examples
• RCAs SelectaVision Videodisc Recorder
• Lost 580M
• Tied up resources for 14 years
• ATTs Picture Phone
• Years of wasted resources
• Product price exceeded customer willingness to
  pay
• Key Multi-disciplinary teams and well-defined
  review processes

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• Companies are great not because they focus on
  cost or flexibility of speed but because they
  have the ability to manage transitions.
• Hau L. Lee
• Thomas Professor of Operations, Information and
  Technology,
• Stanford University

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ETM 5110 LEADERSHIP STRATEGIES

• A New Division of Markets
• Silverstein Fiske, Luxury for the Masses.
  (HBR, April 2003)

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ETM 5110 LEADERSHIP STRATEGIESRanking of
Leadership Styles in Order of Positive Impact

• Authoritative (come with me)
• Affiliate (people come first)
• Democratic (what do you think?)
• Coaching (try this)
• Pacesetting (do as I do, now!)
• Coercive (do what I tell you)
• Source Daniel Goleman, Leadership That Gets
  Results. Harvard Business Review, March 2000.

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ETM 5110 LEADERSHIP STRATEGIESLeader/Follower
Expectations

• What Followers Expect from Leaders
• Honest
• Competent
• Sense of Direction
• Constancy
• Inspire
• What Leaders Expect from Followers
• Honest
• Competent
• Dependable
• Cooperative
• Loyal

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ETM 5110 LEADERSHIP STRATEGIESSo,

• Whats the Bottom Line?
• Whats the Essence?
• Whats the Common Denominator?
• What one Word?

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ETM 5110 LEADERSHIP STRATEGIES

• Leadership is CREDIBILITY!

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ETM 5110 LEADERSHIP STRATEGIES

• Common Sense
• Philosophy
• Timing
• Zero defects
• Listen
• Develop successor
• Not loved but respected
• Understand yourself
• Platoon leaders up front
• Balance
• Focus Down

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ETM 5110 LEADERSHIP STRATEGIESAction Steps
for Successful Leadership

• Clarifying Your Vision, Values and Actions
• Examining What You Pay Attention To and What You
  Reward
• Measuring Your Effectiveness as A Leader
• Discovering What People Value
• Reacting Appropriately to Critical Incidents
• Becoming a Credible Leader
• James Kouzes and Barry Posner, What Followers
  Expect from Leaders, Jossey-Bass, 1988, ISBN
  1-55542-908-4.

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A Time Line of Major Crises? Normal Crisis
Abnormal Crises? Natural DisasterMitroff
Alpaslan, Preparing for Evil, HRB. April 2003,
pgs. 109-115.
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• Heroes are those who do exceptional things in
  exceptional times
• From the movie U571
• (Author unknown)

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ETM 5110 LEADERSHIP STRATEGIES

• Final Assignment
• What Makes A Successful Leader
• (400 Words or Less)

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ETM 5110 LEADERSHIP STRATEGIES

• Burning Questions for 2003
• Value and Values What Is The Road Ahead?
• Strategy What Are Your Strategic Limits?
• Decision-Making Why Do You Make A Good or Bad
  Decision?
• Leadership How Long Should Leaders Last?
• Global Governance?
• HBR Business Conference, April 30 May 1, 2003,
  New York

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ETM 5110 LEADERSHIP STRATEGIES

• Successful Leader Assignment
• Warren Buffet - Berkshire Hathaway
• Michael Deli - Dell Computers
• Bill Gates - Microsoft
• Lou Gerstner - IBM
• Andy Grove - Intel
• Abraham Lincoln - 16th President, U.S.A.
• Colin Powell - Secretary of State
• Daniel Vasella - Novartis
• Sam Walton - Wal-Mart

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ETM 5110 LEADERSHIP STRATEGIESCommon Themes
from Assignment

• Direction ? Quality Focus
• Employee Involvement ? Customer Perception of
  Quality
• Communications ? Supply Chain
  Mgmt./E-Business
• Focus on Customers ? Costs
• Products/Services ? Profit Sharing
• Continuous Improvement ? Revenue/Profitability
• Establish Go Teams

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ETM 5110 LEADERSHIP STRATEGIESCommon Themes

• Values/Mission
• Customer Focus
• Energy
• Team Goals
• Teamwork
• Passion for Excellence
• Work Force
• Integrity (Moral Clarity)
• Performance Results
• Constancy

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ETM 5110 LEADERSHIP STRATEGIESShared Values

• Clear
• Compelling
• Concise

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ETM 5110 LEADERSHIP STRATEGIES

• Personalized Leadership

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• Know what will make a difference

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ETM 5110 LEADERSHIP STRATEGIES3 Cs of
Transforming Commitments

• Clear
• Is your commitment simple?
• Is your commitment concrete?
• Can you measure progress?
• Can you quantify your measure?
• Will you measure progress frequently?
• Is your measurement process credible?
• Have you repeated your commitment often enough?
• Could employees pass a pop quiz on the details of
  the commitment?
• Credible (Have you
• made investments that are hard to reverse?
• burned your bridges behind you?
• put your own reputation at stake?
• put your companys reputation at stake?
• put your money where your mouth is?
• assigned your best people to the challenge?

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ETM 5110 LEADERSHIP STRATEGIES Cs of
Transforming Commitments (contd.)

• Courageous (Are you
• breaking from the pack?
• ignoring the experts?
• making a quantum leap?
• refusing to hedge your bets or cover your
  backside?
• undoing your predecessors actions?
• doing it as quickly as you can?
• Donald Sull, Managing by Commitments. (HBR,
  June 2003, page 90)

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ETM 5110 LEADERSHIP STRATEGIES

• Insights on the Art of Influence
• The only job security you have today is your
  commitment to continuous personal improvement.
• When you stop learning, you stop growing.
• Life is about getting As.
• None of us is as smart as all of us.
• Dont work harder, work smarter.
• Its more important as a manager to be respected
  than to be popular.
• You get from people what you expect.
• Think Big! Act Big! Be Big! (Norman Vincent
  Peale)
• Take time to identify core values.
• Never, Never, Never, Give up!
• Without vision, the people perish. (Proverbs
  2918, paraphrased)
• Ken Blanchard,The Heart of a Leader.Honor
  Books, ISBN 1-56292-488-5

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ETM 5110 LEADERSHIP STRATEGIES

• Doing the Right Things for
• Employment Continuity and Advancement
• Desired Lifestyle
• Personal Balance
• Personalizing Leadership

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ETM 5110 LEADERSHIP STRATEGIES

• SWOT Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats

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ETM 5110 LEADERSHIP STRATEGIES

• SMART Objectives
• Specific
• Measurable
• Achievable
• Realistic
• Time Bound

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ETM 5110 LEADERSHIP STRATEGIESSome Parting
Thoughts

• You are where you are
• Self-assessment
• 360 degree feedback
• Find/be a mentor
• Discipline and commitment
• Sphere of influence/sphere of concern
• Effectiveness (The 7 Habits)

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ETM 5110 LEADERSHIP STRATEGIESFrom Individual
Contributor to Leader/ManagerTen Traits to
Transition

• Positive, upbeat attitude
• Can-do spirit
• Commitment to continuous learning
• Team player
• Energize others/energized by others
• Self-starter
• Flexible/adaptable
• Personal balance
• Valuing diversity
• Sense of humor, admit mistakes, help make your
  boss succeed

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ETM 5110 LEADERSHIP STRATEGIES Reimers Rules
for Leadership

• Do Whats Legally and Morally Right Every Time
• Be All You Can Be (U. S. Army Slogan)
• Treat Others As You Expect to Be Treated
• Gen. Dennis Reimer (Ret. USA)
• Executive Director, National Memorial Institute
• for the Prevention of Terrorism (MIPT)

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ETM 5110 LEADERSHIP STRATEGIES

• For Your Library
• Seven Habits of Highly Effective People (Steven
  Covey)
• Becoming A Manager (Linda Hill, HBR Product
  1822, May 2003)
• 19 new managers over course of first year in
  management role
• Difficulties and keys to transitioning
• Practical suggestions

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ETM 5110 LEADERSHIP STRATEGIES

• Habit 1. Be Proactive
• Habit 2. Begin with the End in Mind
• Habit 3. Put First Things First
• Habit 4. Think Win/Win
• Habit 5. Seek First to Understand, Then to Be
  Understood
• Habit 6. Synergize
• Habit 7. Sharpen the Saw
• Steven Covey, The 7 Habits of Highly Effective
  People.

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ETM 5110 LEADERSHIP STRATEGIES

• GO DO THE RIGHT THING
• AND
• GO DO THINGS RIGHT

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• Lets Roll
• Todd Beamer, Hero
• UA Flight 93
• 9-11-01

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• Play Like A Champion Today

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• Life is about choicesmake as many good ones as
  you can.