Leadership Kudos this week go to IBM and CEO Sam Palmisano on the occasion of the company's 100th anniversary. Since taking over from Lou Gerstner nine years ago, Palmisano has built IBM into the world's leading information technology company, eclipsing HP, Microsoft, and Intel. He has done so by focusing on "leading by values," collaboration, and intense focus on meeting global customer needs with tailored systems. Now with 440,000 employees in 170 countries and $100 billion in revenues, IBM's market capitalization has grown steadily to $200 billion.
Leadership Gaffes are awarded to Cameron and Tyler Winklevoss who continue to try to extract more money from Facebook and its founder, Mark Zuckerberg. The Winklevoss twins had an idea for an on-line dating site, not a social network, but they never designed it, got a patent on it, or commercialized it - all of which are clear criteria for intellectual property. To get rid of the case, Zuckerberg and Facebook settled for $65 million in cash and Facebook stock, which is now worth a multiple of that figure as Facebook's value has grown. Recently, a judge threw their case out of court, but these talented twins - Harvard graduates and Olympic rowers - won't give up. As Zuckerberg said, "They should get a life."
Leadership Kudos this week go to my HBS colleague Michael Porter, whose article on “Creating Shared Value” in the January edition of Harvard Business Review represents a turning point in the relationship of business to society. In the article Porter observes that, in pursuit of maximizing short-term shareholder value, business has often operated in opposition to society’s interests, leading to regulatory limitations on its actions. Porter argues persuasively that business needs to operate insync with society, leading to many more opportunities for the private sector by creating new markets and, ultimately, far greater shareholder value.
Leadership Gaffes go to President Obama’s National Labor Relations Board (NLRB), which is blocking start-up of Boeing’s new $1 billion plant in South Carolina to produce its most important new aircraft, the 787 Dreamliner, for which Boeing has already received billions of dollars in orders for exporting the plane to foreign airlines as wellas domestic. Ironically, President Obama appointed Boeing CEO Jim McNerney as co-chair of his export council with the goal of increasing U.S. exports. Boeing has already hired its first 1,000 of an eventual 10,000 employees, and hired an additional 2,000 in Seattle. Does the Obama administration’s left-hand know what the right-hand is doing? Is anyone in the White House serious about jobs?
Today at 2:00 pm EDT (1 pm CDT/11am PDT) I will be giving a Webinar on "How to become a Better Leader with True North Groups." At this time we will discuss ways to develop as an authentic leader, and the importance of having a support group in your life, including a True North Group. The Webinar will also include a preview of my new book, True North Groups: A Powerful Path to Personal and Leadership Development, written with my colleague Doug Baker. It will be published on September 1. I hope you can join us on line. You can register for free here.
Leadership Kudos this week go to Apple’s Steve Jobs for launching iCloud, yet another game changer from Apple. Look to Apple to enable you to store all your iTunes, books, movies, documents, on-line downloads and photos in one place as you move effortlessly from the iMac to iPad, iPod, and iPhone, which will make our mobile and stationery lives that much easier to navigate. Jobs’ latest breakthrough is a sharp rebuke to the security analysts and media pundits who were calling for Apple’s board to announce his successor when he began his latest medical leave earlier this year. Don’t count Jobs or Apple out quite yet.
Leadership Gaffes go this week to Newt Gingrich and his futile presidential campaign, as 16 of his top aides on campaign staff resign en masse. It’s hard to lead when you don’t have a team, and even harder to run for President from a cruise ship in the Greek Isles. Gingrich vows to forge on, but it’s time for him to return to writing and teaching.
My HBS colleague Tom DeLong has a brilliant new book that I strongly recommend to you: Flying Without A Net: Turn Fear of Change into Fuel for Success. Tom directly addresses the fears that we all have that hold us back & may even destroy us - and shows how to convert anxiety into success. He shows how to draw strength from vulnerability by being even more vulnerable to turn frea of change and failure into fuel for success. It's a great read.
Leadership Kudos of the Week go to Lionel Messi and his teammates at Barcelona for demonstrating that teamwork is superior to individual, as they won the Champion’s Cup as the world’s top professional team with skillful passing, patience, and intensity. With Iniesta, Xavi, Messi, Villa, Pedro and so many brilliant players, Barca has become the best team of all time. Every aspiring soccer player should study the tapes of this game and then learn how to do it.
Leadership Gaffes of the Week go to John Edwards for allegedly using funds given to him to run for President to cover up his affair as his wife Elizabeth was dying with cancer. It doesn’t get any worse than this. What if we had elected this man President?
Growing up in the awesome 1950s in my hometown of Grand Rapids, MI, living 2 blocks from Congressman Jerry Ford, remembering cold mornings delivering newspapers & how we loved Buddy Holly, Richie Valens & The Big Bopper. Those were the days, my friend, we thought they’d never end...
Leadership Kudos of the Week go to Novartis Chair Daniel Vasella and CEO Joe Jimenez: Vasella for his courageous strategies of internal investment in research and diversification into generic drugs, vaccines, and eye care, and Jimenez for his skillful implementation of these challenging strategies. Vasella’s decision to invest heavily in new research headquarters in Boston has led to continuing flow of breakthrough drugs, including recent treatments for multiple sclerosis and gout. Instead of buying other pharma companies, he diversified into generic drugs (now second largest in world), vaccines (creator of H1N1 vaccine), and eye care with $52 billion bet on global leader Alcon. Jimenez is making all these moving parts grow in unison. The stock market, finally recognizing Novartis stands out from pharmaceutical industry’s problems, this week pushed NVS stock to all-time high of $63.35, making its $167 billion market capitalization second highest in industry behind J&J. Since the start of 2000, Novartis stock is up 71% compared to 59% for J&J, whereas Pfizer and Merck have declined 53% and 45%, respectively.
Leadership Gaffes of the Week go to Hewlett-Packard’s board of directors for losing sight of the HP Way – the culture created by founders David Packard and Bill Hewlett – and failing to develop leaders internally. Since 1999, the HP board has gone outside company management three consecutive times in choosing Carly Fiorina, Mark Hurd, and Leo Apotheker, all of whom have tried to put their own stamp on the culture while ignoring the culture that made HP so successful for forty years. Since taking the helm two months ago, Apotheker has replaced ten EVPs and SVPs and half the board with outsiders. Will HP ever recover its former greatness?
Today I was on CNBC’s Power Lunch, responding to hedge fund analyst David Einhorn’s call for Microsoft CEO Steve Ballmer to resign. I strongly disagreed, as I believe Ballmer is making the right calls in expanding Microsoft is making the right moves to build new revenues through diversification. Witness X-Box, Skype, and important partnerships with Facebook and Nokia. Microsoft is experiencing a renewed surge of innovation, just what the company needs at this time in its history. Here’s the video of our discussion.
Leadership Kudos for the week go to Ford CEO Alan Mulally. Joining deeply-troubled Ford in 2006, Mulally has pulled off the greatest corporate transformation in recent decades -- and in the process restored faith in the American automobile industry and the U.S.'s ability to compete globally in heavy manufacturing. An exceptionally humble leader, Mulally's authentic, high-performance style has brought humanity and discipline back to Ford. The proof is in Ford's results: in the most recent quarter Ford sales were up 18 percent, profits up 22 percent, and its share of the U.S. market gained the #1 spot.
Leadership Gaffe for the week goes to IMF chief Dominique Strauss-Kahn, arrested for sexually assaulting a chamber maid in New York. A momentary lapse? Unlikely. Strauss-Kahn has a long history of extra-marital relations. The larger question is why he was trusted with such an important international post. Leaders need to set a higher standard, not seek the lowest common denominator.