“Leadership is based on a spiritual
quality; the power to inspire others
What makes leadership inspirational?
◦ The ability to inspire people to reach great heights
of performance and success is a skill that leadership
need. Passion, purpose, listening and meaning help
make a leader inspirational.
◦ The ability to communicate that passion, purpose
and meaning to others helps establish the
inspirational culture of your organization.
StrategicView of Human Resource
• Employees are human asset that increase in value to
the organization and the market place when
investments of appropriate policies and programs are
• Effective organizations recognize that their employees
do have value, much same as the organization’s
physical and capital asset have value.
• Employees are valuable source of suitable competitive
Five ways to lead
• Strategic Approach
• Human Asset Approach
• Expertise Approach
• Box Approach
• Change Approach
HUMAN ASSET APPROACH
• In this approach, the center of the corporation works to add
extraordinary value through the policies, procedures, programs
and systems surrounding the hiring, retention and development of
people at every level in the organization.
• - An Underlying belief of these executives is that the
corporate center cannot and should not try to add value
through the day-to-day management of operation
• “The people in charge of the operating companies must
do that; we, at the center should not be trying to oversee
or monitor the day-to-day management of the
As Anthony Greener the CEO of the Guiness,
Greener says, corporate “natural role” is managing money and,
more important,“the key asset we have-people.”
- To that end, many of the CEOs often knows hundreds of their
employees, but the human asset approach goes step further.
• It involves career planning, mentoring, face-to-face discussion about
values, decision making and performance.
Thus, human asset executives travel continuously, manage
the relationship between the individuals, and define the
values-often personality traits- that they believe will yield
strong financial results.
The Executive in this chapter say they have selected people
management because they find it the most effective way to
respond to business situations involving complexity, in terms
of both products and geography.
- that day-to-day, block and tackle management is
more than long-term strategy in creating a competitive
-they believe on philosophical plane, that
empowering individuals is the right thing to do
A.At Nestle: BRINGING GLOBAL
CULTURE, RESPECTING LOCAL ONES
Helmut Maucher as CEO believed –it is his
responsibility not only to lead but to build a team’
hence, he spends much of his time dealing with people,
“and more time is spent thinking about them.”
-Values are very important. To be decentralized and
to give power to the market managers, we have to keep
people on the same wavelength such that, we have to
remind them they are part of the Nestle world.
- Know our people so we can assure we have shared values
- Top management meetings of country heads and other
top managers, where Maucher watches them closely and
later, in the privacy of his office, discusses their
performance and their thoughts about Nestle strategy
-his strategic vision of local market expertise
requires that Nestle managers stay in one country
for as long as possible, so a global culture- a Nestle
culture can built only by bringing managers to
Switzerland as often as possible to talk explicitly
about corporate values
-”We are very careful about the type of people we
have,” They must share our values of hardwork,
honesty, and commitment to the company. They
must be modest. They must have style, class and
quality, but not show it off. They must be pragmatic
and not dogmatic.
Maucher shared, “I do delegate but when I see
something that is not the Nestle way, I will
question it immediately.”
B.At United Biscuits: GETTING GOOD
PEOPLE AND KEEPINGTHEM
Eric Nicoli of the U.K’s United Biscuits is
another CEO who manages people from his
heart, but instead of giving them the kind of
ultimate freedom, he installed the most
detailed human resource management system.
It includes frequent performance reviews,
feedback sessions, and a people management
“godfather,” among others initiatives.
When asked why he focuses his attention on people
instead of on strategy?
Response: “Ultimately, I think the performance of a
business is a function of strategic choices that are made
years before,” he says, “and no one should underestimate
the importance of good fortune in all this.
“Basically, when it comes to strategy, you make your
choices based on insufficient information, and you make
them when you have to make them. We have chosen some
categories and we’ve chosen some geographies. Five years
from now some will look like great choices, some will
look like fantastic choices, and some”Nicoli smiles in the
silence of what is left unsaid. “Sometimes circumstances
change completely,” he adds after a moment passes for
reason beyond your control, and your choices turn out to
be bad. Some of the things that most influence our
business aren’t predictable – economic trends, the value
of the pound. These things make a huge difference, and yet
we have no control over them. That’s the nature of our
Nicoli’s business is food – in large part, cookies and snacks
such as MvVitie’s biscuits, Keebler cookies, and KP snscks.
The company has a presence throughout Europe and in
the United States, as well as in Australia and China. (He
switched to food marketing as a young man, after deciding
that academia was too obscure for him) Today, he is happy
to be running a company with 40,000 employees, and he
wants his employees to feel the same way about working
WHAT/HOW/ WHY His approach: “structure informality approach” –its goals are manifold, including planning
and budgeting and other traditional controls; but in the final analysis, Nicoli believes his
best shot at success is to get talented people working at the United Biscuits, and then
keep them there.
“There are lots of companies that spend a lot time recruiting excellent people and very
little time worrying about how to retain them, "the truth is, it’s an awful lot harder to
retain and motivate people than it is to hire them. The hardest thing is to keep good
people, because the better they are, the more likely you are to lose them, if you don’t
make an effort.”
Nicoli and his top staffers know the top hundred managers “all fairly intimately,” he says
and spend “quite a lot of time” thinking about their careers. “It goes along, long way
down. We have a three – zone grading system that covers hundreds of managers, and we
review zones one and two regularly and the high flyers in zone three.
“we spend most of our time discussing the people with potential, rather than the people
without it, although when it comes to those people, we do spend time discussing their
“We have a well-honed appraisal system that is the basis of our assessment of all these
“We have an assessment of their potential year, and we see how that is developing, and
what their aspirations are, and whether you have the qualities..”
The important thing, “Nicoli adds,” is to keep mind in this process. I am constantly
surprised at how people change and improve, and sometimes we find people were
simply in the wrong job or improperly motivated.”
“There are a lot of companies where they attempt to motivate people by paying them a
lot,” Nicoli doesn’t dismiss this method’s efficacy, but he asserts that people are likewise
motivated when they enjoy coming to work, when they like the people they work with,
when they can have a good laugh at the office, and when they are part of a caring
You can fire people in a caring way, or you can just fire people,” Nicoli says, “I Think one
of the attractive characteristics of our company is genuine concern. There is a price for
that. It’s cheaper no to care- in the short term. But that is one of the reasons, why we
don’t lose good people.”
Further besides keeping good people, caring about them has another positive impact in
the organization. Nicoli said “It creates synergy” between divisions, the kind of
cooperation that gets people to talk, share information, and cooperate in difficult
Ultimate, Nicoli makes people his top priority because he wants to enjoy every day of
his working life. And the way he sees it, his cheerfulness begets cheerfulness in everyone
around him. It’s chemistry,” he explains “and chemistry makes a hell of difference when it
comes to success in our business. I truly believe that.”
C. SHV Holdings: SHREDDING PAPER, SETTING
Paul Fentener vanVlissingin managers people in service of human happiness and
He wants his employees to feel free, to slam doors and swear when the spirit
moves them and specially to laugh
According to him, we succeed because we have a whole different system of
looking at people, a whole different approach, a philosophy of looking at the
- It is a philosophy that comes down to the adage that people rise to the
occasion. Give a little responsibility, get a little back; give a lot, and people
soar.- it’s management by letting go.
• For him,“To give people a better chance you had to build an organization
where they could have much responsibility, because we didn’t believe we
could get anybody to do the best they can unless you really make them
• In short, his organization put 90% of the responsibility of innovation,
entrepreneurship, and success in the hand of the team that leads the business
and there is 10% left in the central office.
What does the central office do with that
“The center of the companies should have
lots of fantasies,” “It should be a man or a
woman with impossible dreams and incredible
visions that he or she cannot rationalized and
can’t get out of computers. He should hve this
idea that something can be done somewhere,
Finally, his golden rule for CEO is “Out after
HUMAN ASSETS APPROACH
That is for the business leaders to describe themselves as strategists or
For most CEOs and presidents are extroverted, they enjoy socializing, they like
conversation, they possess a certain personal interests that draws others to them.
But while human assets management might benefit from a CEO with these
characteristics, as an approach, it supersedes personality.
Instead, organizations where people management is the main vehicle for adding
extraordinary value are built around a complex system of managing them.
This system is comprehensive and permeates every facet of the company’s drive for
strategy and results.
It begins with hiring and continues with training , development and promotion policies,
and, if need be, into firing.
At its essence, it is a system built around values – explicitly communicated, with the
intension of every employee’s incorporating them into action and deed.
- MORETHAN BEING A “PEOPLE PERSON”
The human assets management approach comes down to trust,
development, and empowerment.
It is a system that disseminates certain explicit values and then rewards those
who embrace them, building an organization in which every one demonstrates
predictable, acceptable behaviors.
With trust in place, senior management can empower employees to take action,
sometimes along lines in keeping with company tradition, and sometimes quite
new in direction.
Finally, it should be noted that while many human assets CEOs remark that
their management approach is, in a word, fun, of all the approaches in this books
it is perhaps the hardest to implement in terms of time and energy.
Human assets management can take up to a decade to inculcate, because it
involve creating trust, values and consistency and is based on personal
knowledge and experience.
But once it is in place, human assets management goes far beyond a CEO who
happens to be a “people person” to create an organization consisting of focused
employees, each one a “company person.”