Leadership in Focus: Leading in Difficult Times October 7, 2009 change lives · change organizations · change the world Charles O’Reilly Frank E. Buck Professor of Management Hank McKinnell-Pfizer Director of the Center for Leadership Development and Research [email_address]

In the past year… … and more to come?

The Challenge : What do we mean when we say someone is a “leader”? What is the leader’s role during times of crisis and change?

What do we mean when we say

someone is a “leader”?

What is the leader’s role during times

of crisis and change?

A Google search on “leadership” resulted in 200,000,000 hits. There are more than 70,000 books on Amazon with “leadership” in the title. There are 3,500 management books published in the U.S. each year. The 1991 edition of The Handbook of Leader- ship c ited more than 7,500 research studies. Too much information? What is “leadership” really?

A Google search on “leadership” resulted in

200,000,000 hits.

There are more than 70,000 books on Amazon

with “leadership” in the title.

There are 3,500 management books published

in the U.S. each year.

The 1991 edition of The Handbook of Leader-

ship c ited more than 7,500 research studies.

“ There are almost as many definitions of leadership as there are people who have tried to define it” Ralph Stogdill (1974) “ In the past 50 years, there have been as many as 65 different classification systems developed to define the dimensions of leadership” E.A. Fleischman, et al. (1991) “ Leadership has been the subject of an extraordinary amount of amount of dogmatically stated nonsense.” “ Leadership is a process whereby one person influences a group of individuals to willingly achieve a common goal.” Your success, and the success of your firm, depends on your ability to get others aligned with your strategy and vision. This raises an important but non-obvious question: Why should anyone want to follow you? What is “leadership” really? Chester Barnard (1948) If your answer to this question is: “ I’m smart or I’m the boss or I control the rewards” you might want to think a bit more about the question

Is there a difference between management and leadership? Back to Basics:

Is there a difference between management

and leadership?

Management Planning and budgeting- Detailed steps for achieving results. Creating the structures to implement these plans Controlling activities and people. Problem solving Ability to make the orga- nization and systems operate effectively Leadership Setting basic strategies, vision, and values Communicating (words and deeds) to align the people with the vision Motivating and inspiring people to overcome obstacles Creating change Helping the organization adapt to new situations John Kotter (1982) “ Managers are people who do things right and leaders are people who do the right thing.” Bennis & Namus (1985) Leadership versus Management

Management

Planning and budgeting-

Detailed steps for

achieving results.

Creating the structures

to implement these plans

Controlling activities and

people.

Problem solving

Ability to make the orga-

nization and systems

operate effectively

Leadership

Setting basic strategies,

vision, and values

Communicating (words

and deeds) to align the

people with the vision

Motivating and inspiring

people to overcome

obstacles

Creating change

Helping the organization

adapt to new situations

John Kotter (1982)

Give your employees the definitions of management and leadership and ask them to place you on the following grid: Leadership Management 0 0 + + ++ ++ A Thought Experiment:

Management Measurable objectives  x    Clear structure and process  x    Effective monitoring x     Solves problems  x    Designs effective systems  x    Leadership Provides a compelling vision    x  Effective communication     x Inspires and motivates     x Creates change    x  Helps group adapt to change     x Strongly Disagree Strongly Agree CEO “A” A Thought Experiment:

Management

Measurable objectives  x   

Clear structure and process  x   

Effective monitoring x    

Solves problems  x   

Designs effective systems  x   

Leadership

Provides a compelling vision    x 

Effective communication     x

Inspires and motivates     x

Creates change    x 

Helps group adapt to change     x

Give your employees the definitions of management and leadership and ask them to place you on the following grid: Leadership Management 0 0 + + ++ ++ A Thought Experiment: CEO “A”

Management Measurable objectives     x Clear structure and process     x Effective monitoring    x  Solves problems     x Designs effective systems    x  Leadership Provides a compelling vision x     Effective communication  x    Inspires and motivates  x    Creates change  x    Helps group adapt to change x     Strongly Disagree Strongly Agree CEO “B” A Thought Experiment:

Management

Measurable objectives     x

Clear structure and process     x

Effective monitoring    x 

Solves problems     x

Designs effective systems    x 

Leadership

Provides a compelling vision x    

Effective communication  x   

Inspires and motivates  x   

Creates change  x   

Helps group adapt to change x    

Give your employees the definitions of management and leadership and ask them to place you on the following grid: Leadership Management 0 0 + + ++ ++ A Thought Experiment: CEO “B”

Give your employees the definitions of management and leadership and ask them to place you on the following grid: Leadership Management 0 0 + + ++ ++ A Thought Experiment: CEO “B” CEO “A” Given where you believe your subordinates would place you: What are the implications for the future of your business—and your ability to lead it?

“ Many writers on leadership take considerable pains to distinguish between leaders and managers. In the process, leaders generally end up looking like a cross between Napoleon and the Pied Piper. This troubles me. ” John W. Gardner On Leadership (1990) Leadership versus Management

Theory and cases aren’t enough . How can we capture the subtleties and emotional challenges of leadership and use these to provoke the discussion and reflection needed for learning about one’s own values and leadership style? How can people learn leadership? Leadership challenges . Each leader was asked to reflect on “ the toughest challenge” they faced as a leader and to describe what the situation was, what they did, and what they learned— basis for discussion, teaching, and learning. 200+ vignettes. Now being used at more than 600 universities. Interviews. Learn from accomplished CEOs and leaders. More than 250 interviews, primarily CEOs of entrepreneurial companies or leaders facing significant challenges (e.g., turn- arounds, start-ups, combat in Iraq) and, more recently, young MBAs out 5-10 years—both success and failure.

Theory and cases aren’t enough . How can we capture the

subtleties and emotional challenges of leadership and use these

to provoke the discussion and reflection needed for learning

about one’s own values and leadership style?

Leadership challenges . Each leader was asked to reflect on

“ the toughest challenge” they faced as a leader and to describe

what the situation was, what they did, and what they learned—

basis for discussion, teaching, and learning. 200+ vignettes.

Now being used at more than 600 universities.

Interviews. Learn from accomplished CEOs and leaders.

More than 250 interviews, primarily CEOs of entrepreneurial

companies or leaders facing significant challenges (e.g., turn-

arounds, start-ups, combat in Iraq) and, more recently, young

MBAs out 5-10 years—both success and failure.

Think back on your own experience: What were the toughest challenges or the hardest decisions you faced as a leader? What made these so difficult? What did you learn from this experience? What advice would you give others facing a similar situation How can people “learn” leadership?

What were the toughest challenges or the

hardest decisions you faced as a leader?

What made these so difficult?

What did you learn from this experience?

What advice would you give others facing

a similar situation

Leadership Challenges: What We Heard Taking Charge Defining your role Forming the team Politics and resistance to change Getting the Right People in the Right Jobs Hiring and firing Dealing with prima donnas and poor performers Succession Defining or Changing the Culture Motivating the Workforce Aligning compensation and incentives Managing diversity and inclusion Managing Growth and Change

Taking Charge

Defining your role

Forming the team

Politics and resistance to change

Getting the Right People in the Right Jobs

Hiring and firing

Dealing with prima donnas and poor performers

Succession

Defining or Changing the Culture

Motivating the Workforce

Aligning compensation and incentives

Managing diversity and inclusion

Managing Growth and Change

Danny Shader CEO, Good Technology Turnarounds Downsizing and pay cuts Bill Campbell Chairman, Intuit Performance management Resistance to change Brian NeSmith CEO, Bluecoat Systems Dealing with the board Arrogant engineers Nabeel Gareeb CEO, MEMC Electronics Taking charge Dealing with Wall Street Elie Antoun CEO, MediaQ Dealing with founders Making change stick Kent Thiry CEO, DaVita Cultural fit Confronting conflict Allison Hickey General, USAF T ransformation Gender discrimination Debra Reisenthal CEO, Novasys Dealing with crisis Building the culture

Danny Shader

CEO, Good Technology

Turnarounds

Downsizing and pay cuts

Bill Campbell

Chairman, Intuit

Performance management

Resistance to change

Brian NeSmith

CEO, Bluecoat Systems

Dealing with the board

Arrogant engineers

Nabeel Gareeb

CEO, MEMC Electronics

Taking charge

Dealing with Wall Street

Elie Antoun

CEO, MediaQ

Dealing with founders

Making change stick

Kent Thiry

CEO, DaVita

Cultural fit

Confronting conflict

Allison Hickey

General, USAF

T ransformation

Gender discrimination

Debra Reisenthal

CEO, Novasys

Dealing with crisis

Building the culture

Brian NeSmith , CEO of Blue Coat Systems, assumes his position when the firm is in danger of failing. He must deal with a critical but disruptive technical prima donna who is essential for the turnaround. Difficult Conversations -- Four Examples Bill Campbell , Chairman of Intuit and a widely respected leader in Silicon Valley, describes a pivotal investment decision Intuit had to make in 2000. One of his key managers is not on board. Campbell describes how he resolved the issue. Allison Hickey , a general in the Air Force, describes the challenge in trying to transform F-16 fighter squadrons to Unmanned Aerial Vehicle (UAVs) units. The fighter pilots are not enthused about this change. Kent Thiry , CEO of DaVita, a $5 billion healthcare firm, describes how he dealt with a new senior hire who was not fitting in and disrupting the dynamics of the senior team.

Allison Hickey is a general in the United States Air Force. Listen as she describes the challenge she faced when changing the mission of a fighter squadron What would you do? Why? Organizational transformation

KC 135 Hickey was in the first class to have women at the U.S. Air Force Academy. She has more than 1,500 hours as a pilot of KC 135 and DC 10 tankers. She currently is the Director of Future Plans Directorate in the Pentagon and respon- sible for shifting capabilities of the Air Force

From this… … to this As a pilot, how do you feel? F - 16 UAV General Hickey’s challenge

Think of yourself and your team as “signal generators” whose words and actions are constantly being scrutinized and interpreted by others, especially those below you. Calendar management - spend time Ask questions Follow-up Public statements Meetings Agenda control Summarization Ceremonies, symbols, language Physical settings Lessons? “ You must be relentless and boring.” “ Being intelligent is an attractive nuisance.” Jack Welch Rich Fairbank

Calendar management - spend time

Ask questions

Follow-up

Public statements

Meetings

Agenda control

Summarization

Ceremonies, symbols, language

Physical settings

“ The first rule is get rid of the troublemakers. Get rid of the people who are the disruptors because they’re just not doing their own job, they are keeping other people from doing their job. You have to go through and move those people along and then communicate to the other people a clear vision of what the game plan is.” Richard Parsons CEO Time Warner Feb. 17, 2006 Lessons?

“ Too many leaders don’t spend enough time making the case for change.” Lou Gerstner Who Says Elephants Can’t Dance? Harper Business, 2002, Lessons?

A FINAL THOUGHT: By virtue of your positions as CEOs, you are all in the business of not only being leaders but also teaching leadership to those in your organization.

“ The man who tries to carry a cat home by the tail learns 10X as much as the man who simply watches.” Mark Twain FACULTY HAVE THE EASY JOB…