From Monster.com, posted August 28, 2015
The capacity to develop close and enduring relationships is one mark of empowering leaders. Unfortunately, many leaders of major companies believe their job is to create the strategy, organizational structure, and organizational processes. Then they delegate the work to be done, remaining aloof from the people doing the work.
The detached style of leadership will not be successful in the twenty-first century. Today’s employees demand more personal relationships with their leaders before they will give themselves fully to their jobs. They insist on having access to their leaders, knowing that it is in the openness and the depth of the relationship with the leader that trust and commitment are built.
Bill Gates, Steve Jobs, and Jack Welch were so successful because they connected directly with their employees and realized from them a deeper commitment to their work and greater loyalty to the company. Welch, in particular, was an interesting case because he was so challenging and hard on people. Yet those very challenges let people know that he was interested in their success and concerned about their careers.
In Eyewitness to Power, David Gergen writes, “At the heart of leadership is the leader’s relationship with followers. People will entrust their hopes and dreams to another person only if they think the other is a reliable vessel.” Authentic leaders establish trusting
relationships with people throughout their organizations. The rewards of these relationships, both tangible and intangible, are long lasting.
Rule #1: Just Show Up
Woody Allen once remarked, “Eighty percent of success is showing up.” Surprisingly, many leaders get so busy that they don’t take the time to be there for people. They don’t bother to attend award ceremonies, company picnics, or sales meetings. Nor do they walk around the offices, factories, labs, and field sales and service locations. Often they are too busy to come to important customer meetings or trade shows.
As a result, their teammates never get to know them personally. Their only contact with their leaders is through impersonal media, such as speeches, voice mail, videotapes, and Web streaming of company events.
Target CEO Brian Cornell makes frequent visits to stores around the country, often going alone and unannounced, shaking hands and getting to know people, as well as using his astute powers of observation to see how effective Target team members are in connecting with their guests.
These visits have given him a clear understanding of his new organization and what needs to be improved. It also led to what he termed “the most difficult decision of my career” -- to close his predecessor’s ill-fated foray into Canada.
Not only did Cornell have multiple business analyses prepared to search for a way forward, but he also visited nearly empty stores the week before Christmas and realized that Target’s efforts should focus entirely on the lucrative U.S. market.
Likewise, Howard Schultz told of visiting a Starbucks store one Saturday morning:
I walked in, dressed so nobody would recognize me. When I sat down, the manager came up and said, “Howard, is that you?” I said, “Yes, it is.” She told me about receiving Starbucks stock and what it did for her and her family. Then she started crying and said, “I’m so moved that you’re in my store.” Later I got a voice mail from her, saying how powerful that moment was for her. I immediately called her back and thanked her for sharing with me.
Stories of basic human interactions like this one are very powerful. All Cornell and Schultz had to do was show up. Being at important events or engaging on the front lines at unexpected times means a great deal to people and enables them to take their leaders off their proverbial pedestals and see them as real people.
Mutual Respect: The Basis for Empowerment
To bring out the best from teammates, authentic leaders must develop trusting relationships based on mutual respect. There is no substitute. Like loyalty, respect provides a basis for empowerment, but leaders must earn it. Here are some of the things empowering leaders do to gain the respect of their colleagues:
- Treat others as equals
- Listen actively
- Learn from people
- Share life stories
- Align around the mission
Treat Others as Equals
We respect people who treat us as equals, especially when they are successful investors, such as Warren Buffett. He has the same sandwich and Cherry Coke combination with a group of wide-eyed students as he does with his close friend Bill Gates.
Buffett does not rely upon his image to make people feel he is important or powerful. He genuinely respects others, and they respect him as much for those qualities as for his investment prowess. By being authentic in his interactions, Buffett empowers people to lead in their own authentic way.
We are grateful when people genuinely listen to us. Active listening is one of the most important abilities of empowering leaders, because people sense such individuals are genuinely interested in them and not just trying to get something from them.
Warren Bennis was an example of a world-class listener. He patiently listened as you explained your ideas and then thoughtfully contributed astute observations that came from a deep well of wisdom and experience.
Learn from People
We feel respected when others believe they can learn from us or ask for our advice. The best advice I ever got about teaching came from my Harvard Business School (HBS) colleague Paul Marshall, who was one of HBS’s greatest teachers. He told me, “Bill, don’t ever set foot in an HBS classroom unless you genuinely want to learn from the students.”
I have taken his advice into every class I have taught for the past 12 years, telling MBA students and executives, “I feel certain I will learn a lot more from you than you do from me.” The students find that hard to believe at first, but they soon see how their feedback helps me understand how today’s leaders and MBA students think.
From UYDMedia.com, posted August 21, 2015
Bill George is the former Medtronic CEO, current senior fellow at the Harvard Business School and best-selling author of Authentic Leadership and the True North book series. Bill’s latest book, Discover Your True North, was published by Wiley on August 10.
Bill, also appears as a regular contributor on CNBC and sits on the boards of Goldman Sachs, Target, Novartis and the Mayo Clinic, is credited with having popularized the phrase “authentic leadership” to describe CEOs who are consistent and true to themselves as leaders.
Bill regularly counsels CEOs to be authentic leaders — leading some to call him “The CEO Whisperer.”
Bill and I discussed authentic leadership, ways to lead across cultures, some examples of authentic leaders today and in the past as well as how to find your True North. You all know how much I love to talk about global leadership so I particularly enjoyed this episode. We even got to talk about my personal hero, the late Nelson Mandela! Enjoy the episode here or below. Remember to subscribe, share and buy the book!
Listen to the podcast here.
From The Huffington Post, posted August 24, 2015
Have you ever felt you were losing your way? Cut adrift on a raging sea?
I know I have. When I was reaching the top of Honeywell, I was working 24/7. Having succeeded in turning around a series of troubled businesses, I was tasked with even more turnarounds. On the outside I appeared energized and confident. On the inside I was deeply unhappy but too driven to admit it. In truth, I was losing sight of my True North - more interested in becoming CEO than being a values-centered leader. Driving home one day I had "a flash in the mirror" and saw the real me. It wasn't pretty.
That day, I felt like Dante who began the Divine Comedy, "In the middle of the road of my life, I awoke in a dark wood where the true way was wholly lost." Thanks to that mirror, and the help of my wife and support team, I woke up and decided to rethink my life and career. This self-examination led me to Medtronic and the best 13 years of my professional life.
My personal experience suggests you can get back on track of your True North IF you recognize the signals before it's too late.
In Discover Your True North, I describe five behaviors that can cause you to lose your way: Imposters, Rationalizers, Glory Seekers, Loners, and Shooting Stars. Let's examine each of them:
Imposters try to reach the top by pretending to be leaders. They are good at office politics -- too good. Aggression and paranoia become their hallmarks, and they'll attempt to eliminate anyone blocking their path. Outwardly, they follow the adage, "You have to fake it to make it." Inside, they are driven by the fear they aren't good enough and someone will unmask them as imposters. They rarely ask for help or admit, "I don't know."
Bob Nardelli had a highly successful career at General Electric, becoming one of three candidates to succeed the legendary Jack Welch. Disappointed he wasn't chosen as CEO, he moved to retailer Home Depot, lured by an enormous compensation package. Failing to spend time listening to store managers and customers, he never grasped the retail business. Instead, he centralized decision-making and reduced in-store support for customers. He terminated 70 of 71 vice presidents, replacing them with many ex-military officers willing to follow headquarters orders. As Home Depot steadily lost retail market share, its board replaced Nardelli with veteran Frank Blake, who restored the company and put it on a sustainable growth path.
Rationalizers are skillful in blaming others or external factors for their problems. Often they aren't willing to face reality, admit their mistakes, or see that their distorted view of the world puts their organizations in jeopardy.
As CEO of General Motors, Rick Waggoner never could face the reality that his company's drastic decline in market share - from 50% to 18% of the U.S. market - resulted from making cars and trucks that didn't measure up to GM's competitors. Instead, he blamed high gasoline prices, government regulations, and GM's unions. Unwilling to look himself in the mirror, he eventually led GM into bankruptcy.
Glory Seekers are so hungry for fame and public adulation that they deviate from their values just to get ahead.
Lance Armstrong created a great narrative for his success: seven-time winner of the Tour de France, cancer survivor, and philanthropist with his Livestrong campaign. An extraordinary cyclist, he elected instead to cheat, using illegal performance-enhancing drugs to win races. Ultimately, Armstrong lost all his Tour de France titles when he was found guilty of doping.
All leaders experience loneliness in their careers, often when they reach their peak. People in high-pressure positions often retreat to their offices rather than listening to subordinates and trusted confidents. That's when they are prone to make big mistakes.
As CEO of Lehman Brothers, Richard Fuld refused to listen to his team members or outside confidants. Treasury Secretary Hank Paulson warned him forty times that Lehman was deeply overleveraged and need to raise capital. When Paulson asked the major banks to develop plans to salvage Lehman, Fuld stayed in his office, in denial about his firm's troubles. When Lehman declared bankruptcy three days later, employees lost their jobs, customers lost their holdings, and shareholders lost their investments. As a result, the financial markets plunged into crisis and the entire country had to pay for Fuld's solipsism.
Shooting stars are so focused in climbing the career ladder that they have no time for their families and friends. They crave success and get lost in unsustainable frenzy of work. They leap from job to job without learning from their mistakes or gaining self-awareness. Ultimately, they cannot sustain the pace, as even the most energetic people run out of steam. When they crash, they come down fast.
Silicon Valley shooting star Mark Pincus initially soared with gaming company Zynga. But the company's faddish products were unsustainable. As he reflected later, "I did every horrible thing in the book, just to get immediate revenues." Because its leaders failed to create sustainable business models, Zygna's star came crashing down.
If you are aware of your vulnerabilities and stay laser-focused on your True North, you won't fall into these traps. If you develop self-awareness, build your support team, and follow your values, you can stay on track and avoid these pitfalls.
From TheStreet, posted August 22, 2015
Technology is not the only thing in corporate America that has changed in the past decade. The concept of leadership has evolved as well, said Bill George, author of Discover Your True North.
“Authenticity has become the gold standard for leadership,” said George. “When I first introduced this notion in 2003 it was a foreign idea.”
George is a senior fellow at the Harvard Business School and the former chairman and CEO of medical device maker Medtronic. Medtronic’s market capitalization grew from $1.1 billion to $60 billion under George’s leadership, averaging 35% a year. He is the author of the best-selling Authentic Leadership and a board member of Goldman Sachs, Exxon and the Mayo Clinic.
Discover Your True North is an expanded and updated edition of George’s 2007 bestseller True North. This latest version profiles 101 corporate leaders including Warren Buffett, Howard Schultz, Indra Nooyi, Jack Ma and Michael Bloomberg. It also delves into the stories of leaders who lost their moral compasses like McKinsey managing director turned insider trader Rajat Gupta.
“He was a guy that came up from nothing, orphaned as a child. I think he got too caught up in wanting financial security and unfortunately he got caught up with some bad people,” said George.
George said former Lehman Brothers CEO Dick Fuld’s downfall was due to his inability to listen when former Treasury Secretary Henry Paulson was urging him to find capital or sell the investment bank, which ultimately filed for bankruptcy.
“You can’t be obstinate today. Things are moving too fast, changing too rapidly,” said George. “You need to listen to everyone around you.”
On the other hand, George lauded Berkshire Hathaway CEO Buffett and his leadership style, saying the Oracle of Omaha values integrity above all else.
From CNBC, posted August 19, 2015
Google's plan to reorganize into a holding company called Alphabet is as creative as the company itself.
Like all publicly-held companies, Google faces dual challenges of sustaining its growth through innovation and meeting the expectations of its shareholders. The ever-increasing pressures to deliver short-term results while continuing to make big bets on high-risk, high-gain ventures is a conundrum, even for high-flying Google with its dual classes of stock.
With nearly $70 billion in annual revenue, a market capitalization of more than $450 billion, and a stock trading at 31 times its price/earnings ratio, it will take very large bets on major breakthroughs to sustain Google's growth. Those bets don't turn into winners without enormous investment and the willingness to take big risks. Meanwhile, Google's investors are clamoring for greater transparency, which can lead to pressure to cut back on uncertain investments or create premature visibility. Google's leaders have the wisdom to know that size and creativity are inversely correlated, as witnessed so vividly in the demise of Hewlett-Packard's innovation machine. Thus, they are breaking the company into a collection of innovative organizations — some very large, some small — that provides their leaders the freedom to innovate without near-term financial constraints.
Some pundits claim that greater visibility will stifle Google's innovations, which they term "unprofitable experiments." In reality, all research projects are "losers" until they succeed in the marketplace. These critics don't seem to understand the determination of Larry Page and his cohort of brilliant leaders to transform the world through innovation.
Nevertheless, I won't be surprised to see an activist investor like Dan Loeb or Nelson Peltz call for breaking up Alphabet in a few years into cash-generating Google and growth-generating Alphabet. Their inability to understand the integration of these two differentiated strategies for long-term shareholder value creation — the strategy we followed at Medtronic — never ceases to amaze me.
Other writers are comparing Alphabet to Warren Buffett's Berkshire-Hathaway. Other than both organizations being led by brilliant people, this comparison doesn't hold water. Buffett's genius is buying up traditional low-tech companies and running them well. He openly eschews innovation. Google is all about innovation.
Peter Sims, who co-authored "True North" with me, had a far better comparison: Today's high-tech leaders like Apple, Facebook, Amazon, and Uber are platforms on which to build profitable business extensions off a solid core structure. On the other hand, Alphabet is a platform of platforms. While these platforms may be run independently in the near-term, I suspect that ultimately they will be integrated through the genius of Google's leaders.
The most significant aspect of Google's reinvention as Alphabet lies in its capacity to recruit and retain amazing creative talent, something most innovative companies have been unable to do. Just glance at Google's remarkable stable of innovation leaders:
- In holding company Alphabet alone are co-founders Larry Page and Sergei Brin, executive chairman Eric Schmidt, and CFO Ruth Porat, recently recruited from Morgan Stanley.
- Separating the core business as Google gives the opportunity for Page's confidant Sundar Pichai to become CEO of the enterprise, which also includes You Tube CEO Susan Wojcicki.
- Arthur Levinson, who built Genentech into the world's most innovative bio-pharma company, heads up Calico, with a mission is to extend longevity to 150 years.
- Astro Teller is CEO of Google X, which houses Google's moonshots, such as driverless cars, Google Glass and innovative contact lens.
- Sidewalk Labs is led by recent recruit Dan Doctoroff, former CEO of Bloomberg. Its mission is urban innovation to improve city living.
- Nest under Tony Fadell is working on automated home controls.
- Bill Maris runs Google's $2 billion venture-capital arm, while David Lawee heads up Google Capital.
These aren't just names on the Alphabet organization chart. All of them are superstar innovators with many breakthroughs to their credit. Is there any other organization with so many innovation leaders? Under Alphabet, they can pursue their breakthrough ideas without the day-to-day pressures of quarterly earnings.
In the world of high tech, long-term investors would be wise to ignore the roller-coaster short-term swings in stock price, and bet on the leadership of the companies. In reality, success in high-tech investing is much more closely correlated with innovation leadership than it is with quarterly results.
Having brilliant innovation leaders is what makes Google, Apple and Facebook so successful, and causes Twitter, Blackberry and Nokia to fail. For all of its talent, Microsoft failed to innovate from 2000-2014 not because it lacked innovators, but innovation leaders. With former CEO Steve Ballmer finally moving to the LA Clippers, new CEO Satya Nadella's challenge is to find the leaders who can reignite Microsoft innovation capabilities.
Eric Schmidt and Larry Page understand this phenomenon and have moved aggressively to transform Google's organization structure. Alphabet will enable Google to sustain its innovative character and retain its growing stable of innovation leaders.
From Inc. by Ilan Mochari, posted August 17, 2015
You overcame adversity on your own, through mental toughness, with no help--and it's how you became successful. But it also could be your downfall.
One day in 2007, Arianna Huffington found herself lying on the floor of her home office in a pool of blood. After an MRI, a CAT scan, and an ECG, she learned there was no underlying problem--it was exhaustion which had caused her to faint, her head smashing the corner of her desk and cutting her eye.
The incident prompted her to ask deeper questions about her life of 18-hour workdays, seven days a week. By the time she delivered a commencement speech at Smith College in 2013, she was preaching the gospel of a good night's sleep and asking graduates to measure their lives by a "third metric" -- changing the world for the better -- in addition to those timeless standards, money and power.
You've heard this sort of thing before. You've heard it from Harvard Business School legend Clayton Christensen. You've heard it from Simon Sinek (author of Start With Why) and TOMS founder Blake Mycoskie. And you've heard it in at least half a dozen TED talks from other authors and notables.
So my first question to leadership expert Bill George, who just released an update to his 2007 classic "Discover Your True North", was, why bother? How can you persuade any young leader--whose solipsistic workaholism has been the primary factor in her success--that she needs to take a proverbial chill pill? For it often seems as if entrepreneurs have to learn this lesson the hard way--by collapsing, literally or figuratively. And reminders of retaining a moral compass and striving for work-life balance are as old as the bible--though there's no shortage of TED-talking gurus hawking contemporary versions.
George's answer was optimistic. He hopes the personal-transformation tales gathered in his book will help young leaders "accelerate that learning curve, and become self-aware earlier in their lives, without hitting the wall," he tells Inc. The updated book includes stories about Huffington, Mark Zuckerberg, Chade-Meng Tan (who built Google's employee-meditation program), and many others.
Mind you, George has lived the life and walked the walk himself. While he was CEO of Medtronic, a medical device and technology company, from 1991 to 2001, the company's market cap grew from $1 billion to $60 billion. He then became a credentialed expert on the subject of leadership, authoring four books and joining the faculty at Harvard Business School. He's currently a director at ExxonMobil, Goldman Sachs, and the Mayo Clinic.
So what advice can George give to hard-charging entrepreneurs who may be on the verge of hitting the wall? In an interview with Inc., he boiled the answer down to two components:
1. Find a support team of mentors you'll actually listen to.
George believes Huffington could've avoided her collapse if she'd had a close support team around her--"people who could've been intimate with her, and told her: 'Hey, you're heading for trouble. Let me tell you what I see happening,'" he says.
George cites Zuckerberg as a young CEO who found the right support team--and whose performance has thrived (without hitting a wall) as a result. In 2005, Zuckerberg met Don Graham, CEO of the Washington Post Company. Graham offered to invest $6 million in Facebook. Zuckerberg accepted, only to renege when Accel Partners offered to invest at a higher valuation.
Yet Graham, rather than feeling snubbed, was impressed with how Zuckerberg handled the situation. Later that year, Zuckerberg shadowed Graham for several days to learn how a CEO ought to behave. The relationship deepened. One benefit? Graham advised Zuckerberg to hire COO Sheryl Sandberg and encouraged Sandberg to accept the position, even though she'd be reporting to someone younger. Graham--today the lead director of Facebook's board--benefited from the relationship too, learning from Zuckerberg about online initiatives that would engage Washington Post readers.
More than this, Zuckerberg's relationship with Graham formed a template Zuckerberg would rely on in seeking mentorship. Today, his roster of mentors includes Bill Gates and Marc Andreessen. "People always ask, How does [Zuckerberg] have the wisdom of someone 20 years older?" says George. "The answer is, he sought out really good mentors, early on."
2. Take a break, for at least 20 minutes a day.
No texting. No internet. Just you and your introspective practice. What you do during this time can vary. What matters most is that you're away from your tasks. "I use meditation," says George. "Others go for a run or take a long walk. Religious people pray. The point is, they do something where they're pulling out of the world."
George says the meditation time has helped him make better decisions. In 1997, under his watch, Medtronic had the chance to complete a $15-billion merger. Many employees had reservations about the deal, anticipating a major culture clash between the other company's top-down approach and Medtronic's empowered middle tier of engineers and marketers.
Despite these reservations, the merger was enticing to George, as a way to add to Medtronic's top-line revenues. "The numbers worked well and the [combined] strategy would've been brilliant," says George. Still, his colleagues and coworkers were warning him about the potential culture clash. "They were expressing concerns to me, and I was not listening as much as I should have," he says.
George credits his daily mediation practice for giving him the perspective to heed those warnings. "Then I took the time and did listen," he says. He recognized that while the fiscal and strategic synergies might please merger-drunk investors, the culture clash would ultimately undermine any short-term gains in the stock price. "It took me a while to see that," he says. "I had to back away."
The larger lesson here--and another focus of "Discover Your True North"--is value-based leadership: The idea of using not only fiscal numbers, but also a moral compass and a set of personal beliefs to guide your decisions.
The combination of a support team and daily introspection can help you stay mindful about what's really important in life: Your health. Your loved ones. Their health. Your reputation as an ethical person. Staying out of jail. When those essentials are your true north--and they are reinforced by a support team you'll listen to--you'll be unafraid to back away from lucrative deals for the sake of larger principles. "You don't have to hit the wall or get fired," says George. "You can learn to pull yourself back, to get back to your true north."
"The hardest thing we have to do in business is to see yourself as others see you." - Bill George, author, Discover Your True North
From IndustryWeek, posted August 18, 2015
Title: Senior Fellow
Organization: Harvard Business School
Executive Experience: former Chairman and CEO, Medtronic
The IndustryWeek Manufacturing Leader of the Week highlights the manufacturing leaders, executives and stars who are driving growth in today's industry and helping to shape the future of manufacturing.
Being the leader of a company can be fraught with peril, warns Bill George. If you run a public company, there is more pressure than ever to make every quarter’s results better than the last. Along with those pressures, company leaders can operate in a heady world of fame and financial reward. It is an intoxicating brew that can lead to terrible consequences. That’s why leaders need an internal compass that keeps them on the right path.
In Discover Your True North (John Wiley & Sons, 2015), George, the former CEO of Medtronic and a senior fellow at Harvard Business School, brings fresh insights to how executives can become more effective leaders by resisting the temptations of power and staying true to their values. He advocates leadership that is based on authenticity and creates value for all of a company’s stakeholders.
That process involves practices to discover your “True North” – which George described to IndustryWeek as “your most deeply held beliefs, the values and principles that you lead by.” That requires a lifetime practice of pursuing self-knowledge, he says, but the rewards are leadership that creates trust in employees and develops the cultural foundation for the pursuit of enterprise success.
Stray from those principles and you can find yourself in the same boat as Rajat Gupta, the former managing partner of McKinsey. Gupta grew up in Calcutta and was orphaned as a teenager but he gained admission to a prestigious Indian university and went on to a very successful business career. But in 2012, he was convicted on four counts of insider trading and is currently serving a 2-year prison sentence.
Why would a wealthy and successful man put his career at such risk? George writes it was not a “simple case of greed,” but rather the result of never overcoming poverty in his childhood and the unquenched need for financial security.
“We saw that most of the leadership failures came about from people losing sense of who you are,” George said about his research for True North. “It's not that they were bad people. It's that they got pulled off course, either from pressures they couldn't cope with or seductions - money, fame and power.”
The most important characteristic of leaders, George maintains, is that they be “authentic,” or true to themselves and what they believe in. For years, says George, companies weren’t necessarily looking for authentic leaders. Too often, he says, they were looking for corporate rock stars – the next Jack Welch. As a result, they often went outside their own ranks to find the next financial wizard who could promise quick results.
“I'm a very strong believer that leader should be promoted from within,” George told IndustryWeek. “We went through a decade where almost half of CEOs came from outside their organizations. That showed not only a lack of leadership development but many of these did not work out because they didn’t fit with the culture. They weren’t genuine people.”
George says he is much more hopeful about the current crop of business leaders, who he sees as more collaborative and interested in empowering employees to achieve lasting results.
“Today authenticity is seen as the gold standard for leadership,” he writes in True North. “No longer is leadership about developing charisma, emulating other leaders, looking good externally and acting in one’s self interest, as was so often the case in the late twentieth century.”
Being authentic is more than just a nice social characteristic; George says it is the foundation of business success.
“In business, trust is the coin of the realm,” he writes, as it forms the basis for “customers’ trust in the products they buy, employees’ trust in their leaders, investors’ trust in those who steward their funds, and public trust in capitalism as a fair and equitable means of creating wealth for all.”
Learning from Mistakes
Making mistakes in business is a common denominator, George declares. “We all go through it. Everyone has gone through adversity of one form or another.” But not everyone makes career-destroying mistakes. George says the “difference between those who succeed and those who fail is emotional intelligence and self-awareness.”
Emotional intelligence can be developed, George says, and begins with self-awareness. To become more self-aware, George advocates two routine practices.
- Have an introspective period of at least 20 minutes a day. George says we are bombarded by emails, social media and meetings. “We have to pull back from that, whether we meditate, pray, journal, take a jog,” he says, and use that time to take stock of the day and determine if we are “emphasizing what is important in our lives.”
- Get honest feedback from people you trust and will listen to. While introspection is important, you also need a support team that will give you honest feedback. While people you work with can help make up that support team, George says it is particularly valuable to have a group outside the workplace that you can consult with. He has been part of a men’s group for 40 years that meets on Wednesday mornings. “They can give you honest, sincere advice because they know you at a deeper level,” he said.
George says many leaders are burying childhood traumas or other setbacks rather than dealing with them straightforwardly. He says people have to go beyond seeing themselves as victims and come to grips with these negative events.
“Many people are strongly influenced by their parents in ways they don’t even understand and they are replaying that in the workplace,” George observes. “That is not healthy leadership. You’ve got to process that.”
“We present a new concept called post-traumatic growth,” George explains. “The idea is you take your difficult times and you grow from that. That is where you really learn who you are. It gives you the confidence and resilience to overcome very difficult times.”
Understanding how they overcame adversity can provide leaders with the desire to help others deal with their difficulties and grow as leaders. He compares that to a more selfish attitude of, “Hey, I made it. Why don’t you pull yourself up by your bootstraps?”
Not surprisingly, George is an advocate of 360-degree reviews in business. He said the best feedback he got in business was from his subordinates, not his bosses.
“The hardest thing we have to do in business is to see yourself as others see you,” he says. “The 360 review is one of the best ways to do it.”
Through better awareness of who they are, says George, leaders can move away from “external gratifiers like money and power” and toward leadership that is more about “making a difference and empowering other people.”
“We are all called to serve, in effect servant leaders” says George. “We’re not there to serve ourselves. People who work for us are not there to make us look good, just the opposite. We serve them and they are effective at doing their jobs. It is really critical that we make that journey and realize that leadership is not about us.”
One problem is that most of the metrics used to measure young people, such as SAT scores or college grades, are based on how they do as individuals, notes George. Individual achievement often continues to be the focus for young workers such as engineers or analysts. But as employees move up the ladder to leadership roles, says George, it is important to “flip that switch” and realize that your success comes from serving the people on your team.
“If you do that well, they will do anything for you. That then becomes how you build a successful enterprise,” he says. “People in organizations intuitively know which leaders are committed to the company and bleed the company's colors, and who are in it for themselves.”
George says millennials are different from baby boomers. Unlike that “me generation,” he says, millennials tend to be very collaborative and less concerned about who gets credit for a successful project. And they exhibit fewer biases than earlier generations about race or sexual orientation.
Millennials also want to “make a difference,” says George. “By the way, they don’t want to wait until they are 40 or 50 to do it. They want to do it right now.”
Where is the US Manufacturing Compass Pointed?
What kind of U.S. manufacturing environment will these leaders operate in? George says the U.S. won’t find success trying to compete with China and low-cost manufacturing nations producing standard products.
“The U.S. needs to compete in complex manufacturing based upon product innovation,” he says. ‘I think that is its sweet spot.”
George says the key to that future is developing a new generation of skilled workers.
“There is a huge risk that our workforce right now is becoming obsolete, because we aren’t emphasizing the importance of a well-trained, skilled workforce,” says George. He adds there is too much focus on “generic college education” and not enough attention to vocational education. In that respect, Germany has done an “outstanding job,” says George.
“How can they sell machine tools all over the world – Korea, China, Japan so effectively when they have very high-cost labor? They do so because of the quality and expertise. I think that is what the U.S. has to emphasize,” he says.
There is no country as innovative as the United States, George declares, but in order for that product innovation to continue, he says the nation must do more to develop its workforce expertise. That means more attention to the people that do the work on the shop floor, he notes, providing the training, tools and financial compensation so that manufacturing attracts the best people and rewards them for their contribution to the company’s success.
George clearly believes that a strong manufacturing sector continues to be vital for the American economy and people.
“Hollowing out our manufacturing base and making us a service economy, as some people were talking about 10 years ago, is very, very foolish,” George concludes.
From The Huffington Post, posted August 17, 2015
On your leadership journey, should you take a ladder or a compass?
The answer depends on whether you are trying to build a career or have a fulfilling life. As David Brooks writes in The Road to Character, "Are you pursuing resume values or eulogy values?"
When I graduated from college, I had the naive notion that my leadership journey was a straight line to the top. Keep climbing the rungs of the ladder and eventually I would reach my destination.
Was I ever wrong.
I learned the hard way that leadership isn't about climbing rungs on the ladder of success, while building the perfect resume. Former Vanguard CEO Jack Brennan believes the worst thing people can do is to manage their careers with a career map. He told me, "The dissatisfied people I have known and those who experienced ethical or legal failures all had a clear career plan."
The idea of a career ladder places tremendous pressure on leaders to keep climbing ever higher. Instead, Facebook COO Sheryl Sandberg, favors the idea of a career "jungle gym" where you can move up, down or across. Adds eBay CEO John Donahoe, "Leadership is a journey, not a destination. It is a marathon, not a sprint." On your winding journey, you need a compass to stay focused on your True North, not a ladder whose rungs you climb.
Becoming an authentic leader requires building your character. As Warren Bennis wrote, "Leadership is character, not style. It is who we are as human beings. The process of becoming a leader is much the same as becoming an integrated human being."
In my early years, I was hardly recognized as a leader by my peers. I was eager - too eager - to get ahead. In high school and college, I lost seven consecutive elections. There was a simple reason for this. I was so ambitious and centered on myself that I never took the time to develop close relationships.
Then a group of seniors at Georgia Tech gave me some sound advice. "Bill, you seem more interested in getting ahead than in helping other people. No wonder no one wants to follow your lead." Devastated by this feedback, I took their advice to heart and came to grips with my shortcomings, focusing on others instead of myself. As a result, I was selected to lead many organizations.
Years later, I got caught again in my own trap. In the late 1980s, I was on my way to the top of Honeywell. As executive vice president responsible for nine divisions and 18,000 people, I was one of two leading candidates to become CEO. Driving home one day, I looked in the rear view mirror and saw a miserable person - me. On the surface, I appeared to be energized and confident, but inside I was deeply unhappy. In that instant I realized I was more focused on climbing the corporate ladder than being a values-centered leader who makes a difference in the world. I faced the reality that Honeywell was changing me more than I was changing it--and didn't like the changes I saw.
As Dante starts The Divine Comedy, "In the middle of the road of my life, I awoke in a dark wood, where the true way was wholly lost."
When I awoke to my reality, I reopened the opportunity to join Medtronic that I had turned down three times before. This decision led to the best thirteen years of my professional life. Had I not had that awakening at Honeywell, I might never have seen Medtronic's possibilities.
In researching my new book, Discover Your True North, we interviewed 170 authentic leaders, from Oprah Winfrey to Howard Schultz. All of them followed difficult paths to success and authenticity, yet stayed grounded by building on their life stories. By understanding their formative experiences, they reframed their stories and shaped their leadership around following their True North.
From these interviews we learned that the journey to leadership has three distinct phases, as shown below:
The Journey to Authentic Leadership
Phase I is "Preparing for Leadership," where leaders develop through education, extracurricular experiences, and early professional work. This is the period where character forms and people lead for the first time. In Phase I most people are naturally self-absorbed, as measures of success are based primarily on individual accomplishments. The basis of authenticity, however, lies in the values they develop in these early years.
Phase II, "Leading," begins as individuals take responsibility for leading others and transition from "I to We," culminating in their peak leadership experience. As they take on greater responsibilities, most leaders have setbacks that test them to their core: their sense of self, their values, and their career assumptions. Through these crucible experiences, leaders learn who they are at their essence and prepare themselves for greater challenges ahead.
Phase III is "Generativity," wherein leaders focus on giving back by sharing their knowledge and wisdom with many people and organizations. These days, many leaders are foregoing conventional retirement to share their leadership experiences with others, serving on boards, mentoring young leaders, or teaching and writing. Psychologist Erik Erikson describes the choice in this phase: generativity versus stagnation. For leaders who focus on helping others, this stage is filled with meaning. Those who don't often face the stagnation common with old age.
Regardless of where you are in your journey--just getting started, looking for new challenges, or nearing the top--each leadership experience provides myriad opportunities for personal growth and to discover your True North. If you embrace your life story and learn from its lessons, your leadership journey leads to great satisfaction and fulfillment.
As former Amgen CEO Kevin Sharer said, "You are the mosaic of all your experiences."
Article by Daniel Goleman for LinkedIn.com, posted on August 09, 2015
I spoke with my friend Bill George, Senior Fellow and Professor of Management Practice at Harvard Business School, about what it means to lead ethically. His responses struck me as especially salient in our current business landscape, so I’ve paraphrased them below. (You can read the entire conversation in The Executive Edge: An Insider’s Guide to Outstanding Leadership.)
Trust can be fleeting – especially the trust we instill in leaders. A leader might spend 30 years building trust, and then watch it disappear in 30 minutes if he’s not careful. And when leaders flagrantly violate trust, it’s often never recovered.
Consider the epidemic of distrust caused by leaders putting their self-interests above all else. You’ll even hear some economists argue that this makes sense, because we’re all motivated by money and that’s just how the market functions.
Well, I disagree. Greed is not the market operating. Greed is actually disgraceful. But unfortunately, many leaders get away with it. Then all the people that depend on them—customers, shareholders, communities—are betrayed. Often a whole enterprise is destroyed.
To me, if you’re privileged enough to be in a position of leadership, it is paramount that you maintain the trust of the people for whom you have a responsibility. And if you violate that, then you have failed.
Now, here’s the catch. We all fail. But we can recover. Leaders can bounce back, but they have to prove themselves. I like to think that the virtues you live by when things are going well don’t matter.
The real test is how you behave when times are tough. And if you’re a leader, your constituents want to see what you do under severe pressure. If you can stay true to your values then, people will trust you again. You’ll be viewed as authentic.
In fact, there’s a correlation between being an authentic leader and getting great results.
Here’s an example. When Anne Mulcahy—former CEO and chairperson of Xerox—was faced with bankruptcy, she reconfigured the whole company and made some really daring decisions. She decided not to cut R&D, not to cut customer support, but to invest in the long term. They ultimately had to trim up and have fewer employees in the end, but they came back. They avoided bankruptcy and achieved great success, in fact. And Mulcahy didn’t have finance experience – she rose through the ranks, starting as a salesperson out of college. Authentic in her virtues and loyalty to Xerox; she made many bold decisions and went on to be voted one of America’s Best Leaders by US News and World Report in 2008.
HOW TO BUILD TRUST
So how can you do this? It requires a few qualities.
- You’re willing to get experience doing the work of your team. This doesn’t mean giving rousing speeches, putting out strongly worded press releases, or releasing polished promotional videos. This means you actually spend time with the people doing the work.
- You honor those people by listening and responding in earnest.
When I was at Medtronic, I gowned up and saw between 700 and 1,000 procedures. I’d put on the scrubs, met with the doctor, and watched an open-heart surgery, a brain surgery, or a pacemaker implant. And that’s how I learned the business.
When I was on the board of Target Corporation, the former CEO, Bob Ulrich, explained how he walked about 14 store floors a week. He didn’t tell them he was coming. He just put on a sweatshirt, walk around, and watch the store run.
And take Dan Vasella at Novartis. He’d be down in the labs all the time with the researchers asking, “What are you working on? What are the barriers?”
Instead of being the invisible entity who spends his or her time at black tie CEO events in DC, this is a leader who delves into the real day-to-day functions of the business. And that’s the type of leader who builds trust.
To maintain that trust, you need care about your team, want to be out there with them, and love the business. You really do have to love it! I can’t stress that enough. If you don’t love it, don’t do it.
The Executive Edge is available now on Kindle, iTunes, nook and in print from morethansound.net. You can also watch my conversation about authentic leadership with Bill George here.
Trust is the essence of leadership – the coin of the realm. Unless people build trust with their colleagues, they cannot gain legitimacy to lead, nor can they empower others.
Recent studies have shown that only half of Americans trust their leaders. Since the 2008-09 global financial crisis, many Americans have lost trust in their leaders and the institutions they lead.
Gaining the trust of people is essential for every leader. Leaders cannot be effective without full confidence of the constituencies that grant their institution its legitimacy, nor can capitalism function without trust.
No matter how effective your strategy, your vision, or your communication, you will fail to achieve the desired results for your organization if you can- not inspire trust as a leader. Lack of trust in your leadership will cause your team to fear failure, resulting in less risk-taking, and therefore, less innovation. Building a culture of trust starts with you. You must quell fears of organizational power by exhibiting authentic behavior that inspires trust and fosters an open, safe environment.
To be worthy of trust, leaders must have a clear sense of their True North – the purpose of their leadership and the essence of their beliefs, their values and the principles by which they lead. If they stay on course of their True North and do not deviate under pressure, then they can build trust among colleagues and legitimacy among all their constituencies.
What’s required are new leaders who are grounded in authenticity, relationships, and emotional intelligence. To gain trust, they must be genuine, sincere, transparent, and true to their word. People sense who is authentic and who is not. Only when they are authentic will people grant them the support they need to lead organizations.
To strengthen the trust and confidence in America’s leaders, we need a new leadership mindset and a new breed of leaders, with five characteristics in common:
- They should be authentic leaders, focused on serving their clients and all the institution’s constituents, rather than charismatic leaders seeking money, fame, and power for themselves.
- They should place the interests of their institutions and society as a whole above their own interests.
- They should have the integrity to tell the whole truth, admit their mistakes, and acknowledge their shortcomings. Authentic leadership is not about being perfect. It is having the courage to admit when you’re wrong and to get on with solving problems, rather than covering them up.
- They need to adapt quickly to new realities, changing themselves as well as their institutions, rather than going into denial when things don’t go as intended.
- They need the resilience to bounce back after dev- astating losses. Resilience enables leaders to restore trust by empowering people to create new solu- tions that build great institutions for the future.
Earning trust requires significant time and effort, and must come from a place of authenticity. Trust cannot be faked. You cannot become a trusted leader by try- ing to imitate someone else. You can learn from others’ experiences, but there is no way you can be successful when you are trying to be like them. People trust you when you are genuine and authentic, not a replica of someone else.
Don’t be afraid to show your vulnerability. Be transparent with your team, even when the truth may be unpopular or inconvenient. Don’t punish those who bring you bad news. Encourage risk-taking and celebrate “good failures” as opportunities to learn and move forward.
Remember: trust starts with you but it is a win-win for everyone.
Bill George is the former Chair and Chief Executive Officer of Medtronics and author of four best-selling books including True North and Seven Lessons for Leading in Crisis. www.billgeorge.org
This article was originally published for the Winter 2015 issue of Trust Magazine.