Leadership at Every Level

2010 Quality Fair Leadership At Every Level University of Minnesota Strengthening Your Leadership Capacity to Achieve Quality Results in a Pandemic Technology Revolution February 4, 2010 Presented by Stuart R. Levine STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 1

What in the World is Going On? • Global and domestic perspective • Impact on your mission and culture • Critical strategic focus to control destiny STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 2

Today’s Goal • Study and understand the big picture • Embrace best practices during challenging times • Learn skills and tools to increase effectiveness STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 3

Global/Domestic Realities • Three major transformations shaping political, economic and world events – The emergence of China – Shifting of demographics of Western Civilization – The fundamental restructuring of American business • Profound implications for American business leaders and owners, our culture and way of life driven by technology Source: Global intelligence briefing by Herbert Meyer delivered to CEOs at the World Economic Forum in Davos, Switzerland 2008 STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 4

The Emergence of China • In the last 20 years, China has moved 250 million people from the farms and villages into the cities – and they plan to move another 300 million in the next 20 years • That’s why China is addicted to manufacturing. It’s essential to put people in the cities to work. • If the U.S. ever stops buying from China (low priced products), they will explode politically; if China ever stops selling to the U.S., our prices will jump STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 5

Shifting Demographics of Western Civilization • Most countries in the Western world have stopped breeding • Maintaining a steady population requires a birthrate of 2.1; Western Europe birthrate currently stands at 1.5 or 30% below replacement. In 30 years, there will be 70 to 80 million fewer Europeans than there are today. • The current birth rate in Germany is 1.3 and Italy and Spain are even lower at 1.2. At that rate, the working age population declines by 30% in 20 years, which has a huge impact on the economy. • When you don’t have young workers to replace the older ones, you have to import them. STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 6

Shifting Demographics of Western Civilization • In Japan, the birthrate is 1.3. As a result, Japan will lose up to 60 million people over the next 30 years. Japan refuses to import workers. Instead, they are just shutting down. By 2020, one out of every five Japanese will be at least 70 years old. • Nobody has any idea about how to run an economy with those demographics. • The U.S. birth rate is 2.0, just below replacement. We have an increase in population because of immigration. The Anglo birth rate is 1.6 (same as France) while the Hispanic birth rate is 2.7. • In the U.S., the baby boomers are starting to retire in massive numbers. This will push the elder dependency ratio from 19 to 38 over the next 10 to 15 years. This is not as bad as Europe, but still represents the same kind of trend. STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 7

Shifting Demographics of Western Civilization - Implications • Young people are delaying marriage and having a family • Once this trend starts, the downward spiral only gets worse • These countries have abandoned all the religious traditions they formerly held in regard to having families and raising children • Western civilization seems to have forgotten that every primitive society needs kids to have a healthy society – children are huge consumers who later become taxpayers STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 8

Over the next 10 years, the world’s population is expected to grow by almost 20 percent, primarily in emerging market regions. Source: IBM Institute for Business Value analysis, “The World at Six Billion,” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,: BBC, April 15, 2008. STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 9

Social Communication Impact • Took 100,000 years for first Billion people to be connected on Internet • Took 6 years for the next Billion to be connected • 70,000 new people linking in every day • Today, one half of the world’s population is linked • Creating a fundamental shift in the way society and the world works • Word-of-mouth as a trusted source of information • Limited control over social networks, blogs, wikis and mashups • Worldwide mobile phone subscriptions forecast to reach 5.3 billion by 2013 up from 3 billion currently (April, 2009, IBM Global Business Services ) Source: Jump Point by Tom Hayes (McGraw Hill, 2008) STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 10

Connecting with New Markets and Customers • Consumers are increasingly demanding of the products they use and consume • More knowledge about products and alternatives • Less brand loyal • Exploration of segments and regions beyond traditional markets • Need to build deep understanding of motivations and influencers of perceptions and purchasing decisions • People with limited disposable income can ill afford products that fail to deliver on value • Organizations with unfocused marketing messages selling stripped down versions of existing products are unlikely to succeed Source: IBM Institute for Business Value analysis, “The future of the Consumer Products industry (April, 2009) STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 11

Positioning for the Future • Understand new markets and find ways to connect with consumers • Understand and sustain consumers in the lower income tiers with appropriate services and products • Master distribution channels with collaboration and direct relationships with consumers • Understand where direct involvement in the value chain adds value and creates sustainable differentiation STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 12

Toyota’s Recall and Reputation • Recall of 2.3 million vehicles in US – Move from mechanical system to electronic system – Supplier CTS Corporation made pedals and sensors slightly different than Japanese supplier, who have had no issues – Need to change pedal material based on impact of heat • 5 million replacement pedals for floor mats that could jam accelerators • North American production on 8 models suspended • Delay in timely recall (Tundra pick up trucks – March 2007, Europe fixed August, 2009) • Toyota’s credibility tarnished and embarrassing loss of quality • How will they handle relationship with customers? STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 13

2010 Outlook • 15.3 million unemployed persons (December, 2009) – Unemployment rate is 10% – “Underemployment” is 17% (November, 2009) • 2007 – For every one job there were 1.7 applications; 2009 for every one job there were 6.4 applications • The Conference Board Consumer Confidence Index® stands at 52.9 up front 50.6 in November – The Expectations Index increased to 75.6 from 70.3 last month – The Present Situation Index, however, declined to 18.8 from 21.2 in November • Real gross domestic product increased at an annual rate of 2.2 percent in the third quarter of 2009. In the second quarter, real GDP decreased 0.7 percent. STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 14

US Education Industry Trends • Higher education is one of the last ones to be impacted from the digital age • However, there are many e-education companies with highly competitive cost models • Online products are improving rapidly and being recognized by business and industry • Graying of the workforce more pronounced in higher education • Budgets for professional development have dried up Source: Scott Martens, Director, Service & Continuous Improvement, University of Minnesota, 2009 STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 15

Your Challenging Environment • Declining resources • Cultural stress and frustration based on increasing work load and change • Continuing technological revolution • Not enough time • Increasing demands on your professional and personal life STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 16

Reasons to study Charles Darwin and The Origin of Species Why it is critical to seek and embrace the discomfort of change? STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 17

Reasons to study Charles Darwin and The Origin of Species • These turbulent times require adaptation • There are huge opportunities for you to thrive STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 19

Be Flexible Darwin • Species that survive and prosper are those that adapt and change in their environment. Your Organization • Responding intelligently to changes in the world gives you an edge • Smart companies develop agile teams with skills to change course as necessary • Strike a balance between planning and being flexible • Adjust priorities and be responsive STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 20

Challenge Conventional Thinking Darwin • 19th century scientists did not know what to make of fossil discoveries • Many believed the bones were from strange creatures that were too large to get through the door of Noah’s ark! • Darwin made the connection that the bones were similar to more modern animals suggesting an evolutionary process Your organization • Listen actively and question deeply STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 21

Daring Goals “Has anybody else done this? “Isn’t this worth trying?” Daring goals that will motivate a search for radical new ways of mobilizing and organizing human capabilities Source: Harvard Business Review, (Feb, 2009), Gary Hamel, “Moon Shots for Management” STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 22

Your Focus • Your Challenges • Your Core Values • Your Ethics • Your Vision • Your Strategy • Your Customer Satisfaction • Your Leadership STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 23

Your Challenge • Strengthen your leadership capacity • Increase your ability to work with resolve • Work smarter for a better professional and personal life • Continue to work with hope and passion to identify new opportunities • Continue to learn STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 24

The Six Fundamentals of Success ® • Make sure you add value • Communicate up and down, inside and out • Know how to deliver results • Conduct yourself and your business with integrity • Invest in relationships • Gain perspective Source: The Six Fundamentals of Success by Stuart R. Levine (Random House, 2004) STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 25

Define Adding Value • Increase your capacity to serve your clients • Increase your individual worth as an employee to increase value of company • Increase value of company by improving quality for the client • Care passionately about your clients • Improve your skills to keep finding new ways to add value STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 26

Add Value to Your Customers • Increase agility to adjust to customer needs • Era of entitlement is over • Listen actively • Collect data and analyze it • Innovative ideas move you towards the zone of hope STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 27

Make Communication an Imperative • Make your communication more purposeful • Every meeting should have a purpose • Start on time, end on time • Establish an agenda • Master the ten-minute meeting • Solicit feedback during the meeting and afterwards STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 28

Deliver Results • Energy and time management • Understand and align with strategy • Prioritization • Avoid toxic people • Stay positive and passionate • Power of nice vs. baby is ugly • Renew yourself every day • A bottle of wine, a cut flower STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 29

Conduct Yourself with Integrity • Unrelenting set of values • Set the tone by your actions • Ethical values remain the foundation for success • Respect for yourself and others • The world doesn’t owe you a living • Chance to add value is a privilege • Self-confidence from continuous learning STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 30

Invest in Relationships • Ask your colleagues and team what they think • Establish a relationship radar screen • Face time counts • Seek out the “energy generators” • Share information of value STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 31

Gain Perspective • Setbacks make us stronger • Know when to take a deep breath • Make room for all parts of your life • Get comfortable with not knowing • Nothing or nobody can affect you negatively • Don’t hide your passion STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 32

Cut to the Chase •Think Clearly •Act Effectively •Communicate Directly Source: Cut to the Chase by Stuart R. Levine (Random House, 2006) STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 33

Think Clearly • Look at the big picture • Make your mission possible • See your customer as a person • Know what’s on your boss’s dashboard STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 34

Act Effectively • Surround yourself with ethical people • Set a good example • Avoid toxic people • Treat others with respect • Act like an owner • Know the burn rate of key resources • Work with a sense of urgency • Deliver on promises STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 35

Communicate Directly • Hostile business environments require more communication, not less • Ask your colleagues and team what they think • Face up to difficult conversations • Resist taking your “emotional temperature’ every five minutes • Share the good news – and the bad • Establish a rhythm STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 36

Communicate Directly • Face time counts • Do breakfast • Say thank you • Coach your team all day long • Satisfied employees = loyal customers =bigger profits STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 37

Gain Perspective and Find Balance • Renew yourself every day • Take back the weekend • Know when to take a deep breath • Get comfortable with not knowing • Nothing or nobody can affect you negatively • A bottle of wine, a cut flower STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2009 Proprietary and Confidential 38

Thank you! Stuart Levine & Associates LLC 100 Jericho Quadrangle, Suite 111 Jericho, NY 11753 516-465-0800 slevine@stuartlevine.com www.stuartlevine.com STUART R. LEVINE …CUT TO THE CHASE and 99 other rules THE SIX FUNDAMENTALS OF S U C C E S S™ Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 39

Leadership at Every Level

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