Blog > Category: Leadership

StarTribune: Extraordinary collaboration can rebuild Minnesota Miracle

Gov. Mark Dayton's jobs summit last month was a remarkable example of the extraordinary collaboration taking place between business leaders and government officials to rebuild Minnesota's jobs machine.

Historically, Minnesota has benefited from diverse industries including agriculture and food products, financial and professional services, health care, education, and high-technology manufacturing that allowed us to offset economic downturns. But after outpacing the nation for 30 years in job creation, Minnesota has fallen behind since 2003.

The 800 business and civic leaders who jammed into the ballroom at the Crowne Plaza in St. Paul engaged in serious discussions about how to stimulate job growth in Minnesota and re-create the Minnesota Miracle. This convergence of business and government leaders was a welcome contrast to the political gridlock that shut down state government in July.

At the summit the governor wasted no time in making his position clear: "It is the task of private enterprise to create jobs and wealth," he said. "The government's role is to create the environment and rules that make that possible." Dayton put substance behind his pledge, announcing a $100 million fund for small business loans, distributed through 300 Minnesota community banks.

These efforts are none too soon. Alarmed by declining job trends, a group of leading CEOs and civic leaders formed the Itasca Jobs Task Force in 2009. Chaired by Ken Powell of General Mills and Marilyn Carlson Nelson of Carlson Companies, their 2010 report highlighted three strategic initiatives to improve the region's competitiveness:

•Address the cost of doing business.

•Develop a vision, strategy, and approach for regional economic development.

•Enhance entrepreneurship and innovation.

To implement the report's recommendations, Itasca formed a team of 60 participants, chaired by HealthPartners CEO Mary Brainerd. "For us, this is the most important thing we have been part of,'' Brainerd said. "The commitment to a thriving community is really extraordinary."

In addition, the Minnesota Business Partnership, which includes the heads of 150 local companies, formed three task forces of its own under the leadership of Ecolab CEO Doug Baker Jr. The partnership made concrete recommendations to the governor and Legislature regarding fiscal policy, health care, and education.

Also last month, 12 large companies joined with local municipalities to launch Greater MSP, with Baker as its chairman. A $2 million budget was established, with 70 percent from the 12 companies and the remainder from government units. Its mission is to recruit out-of-state and international companies to locate in Minnesota and to encourage local companies to expand locally. Michael Langley was hired as executive director, coming from Pittsburgh, where he led a comparable initiative.

These remarkable efforts are a testament to the quality of Minnesota's leaders. Our state is blessed to be home to 20 Fortune 500 companies led by progressive leaders who understand that Minnesota's quality of life and a well-educated workforce are essential to their success -- and necessary to offset negatives like high taxes, high cost of living and weather.

Historically, Minnesota's strength has been the quality of its workforce. Thanks to efforts put in place 50 years ago, the Twin Cities leads the nation with 93 percent of citizens holding high school diplomas, and is third in bachelor's or graduate degrees with 37 percent. Ecolab's Baker notes, "Ultimately, the education and skills of the workforce are MSP's competitive advantages."

But this advantage appears to be at risk. The Itasca report forecast a gap by 2030 of 322,000 skilled workers that could constrain the region's growth. Bush Foundation President Peter Hutchinson notes that these other efforts will be in vain unless the region has the right workforce. He favors investments in infrastructure, K-12 schools, and higher education.

"It's a painful reality that many of the 215,000 Minnesotans without jobs don't have the education needed for the new economy,'' said Steven Rosenstone, the new chancellor of Minnesota State Colleges and Universities (MnSCU). "By 2018, 78 percent of Minnesota's jobs will require postsecondary education."

Minnesota has its challenges. But given the remarkably committed leaders we have today, I feel confident that these new initiatives will bear fruit and create the second Minnesota Miracle.

 


Originially posted: StarTribune
November 19, 2011

Don't Just Search for a Job: Create Your Own

It’s no secret that Americans are frustrated with the lack of job opportunities available. 

As the unemployment rate held strong in September at 9.1% and 26 million Americans (16.5% of the workforce) were still unable to find full-time jobs, it is becoming increasingly clear that the economy is in “a jobless stagnation.” In reality, the bulk of those 26 million people aren’t going to find regular fulltime jobs for many years.

There are constant news stories profiling young professionals who have college degrees in hand but nowhere to put those years of education into practice. Of the graduates from last June’s college classes who were fortunate to find work, fewer than half of them found jobs requiring a college degree.

The new generation of 20 something’s is taking matters into its own hands.  Facing this situation, more and more people are creating their own jobs as independent contractors and entrepreneurs. The Bureau of Labor Statistics estimates that unemployed job creators will account for 40% of all jobs by 2030.

Members of the Millennial generation know how to build their careers – and their lives – by designing their own work, often electronically, from their homes. Inc. magazine released its annual survey of top entrepreneurs under the age of 30 for 2011.  These young business men and women exemplify the young professionals who are choosing to take their careers into their own hands, instead of waiting around in a bleak job environment.  

Take, for example, Drew Houston, who founded his company Dropbox in 2007. Dropbox is a cloud-based file-syncing service that allows users to access their digital files from nearly any computer or mobile device. Houston started writing code for the program when he mistakenly left his USB drive at home and could not access the files he needed.  

Jessica Mah is a serial entrepreneur who founded three start-ups by the age of 19. Mah had been using Mint.com for a few years and became frustrated the site did not provide an applicable function for her small businesses. As a result, inDinero was contrived. inDinero is a business helping other small businesses grow and track their progress through the accounting services that can oftentimes be wildly inconvenient. Mah and her co-founder Andy Su built the prototype for inDinero and launched the company in 2009.

While still a college student at the University of Seattle, Brayden Olson founded Novel, Inc., a creative game company focusing on simulations for corporations to develop and assess people. Olsen lived at home with his parents to save money and accelerated his education to graduate in three years. At age twenty, he decided to focus his full attention on building Novel. He was fortunate to attract $500,000 in venture capital funds to enable him to attract a quality team around him that could develop the complex software required for Novel’s games. His first products will enter test markets early next year.

Young entrepreneurs also have time to experiment with ideas and keep learning.  Zach Clayton started a subscription-based media company while still in college at the University of North Carolina.  That business idea didn’t take off, but it inspired him to start another one, which did.  After graduating from Harvard Business School in 2009, Zach started business#3: Three Ships Media.  The company helps its clients acquire new customers through digital media and social media channels.  Without raising venture capital, he’s profitably grown Three Ships into a multi-million dollar business.  (Note: I have used Zach’s services for Website creation and social media research).

Other former job seekers are creating work as creative strategy consultants, dog walkers for dual career families, home office managers, and personal IT consultants.

This economy requires a new class of technology-enabled businesses. The United States needs innovation, human capital investments, and research and development to build those businesses.  Most importantly, it needs the entrepreneurs to get them started.  The new generation has the potential to create entirely new services that will rebuild a vital economy, but one that looks entirely different from the last ten years.

My advice to job seekers is to stop shooting resumes and emails off to everyone you know in hopes of landing a regular job. The odds are that it wouldn’t use your full abilities, nor stoke your passions. Instead, think hard about what you love to and what you are really good at. Then seize the initiative and create your own job.

The advice of Steve Jobs, who dropped out of college and founded Apple at age 21, should resonate with you: "Your time is limited, so don't waste it living someone else's life.  Don't let the noise of others' opinions drown out your own inner voice. Have the courage to follow your heart and intuition."

Leadership Kudos and Gaffes: President Obama leading this week on foreign policy

Leadership Kudos this week go to President Barack Obama, who had "a very good week." Obama's steady head about foreign policy - tough-minded but cool - and the tireless efforts of Secretary of State Hillary Clinton are showing consistent results. The latest was the ultimate success of Obama's policy in Libya that paid off when strongman Colonel Moamar Gaddafi was killed in Thursday's shootout. On Friday the President announced the end of U.S. engagement in Iraq with all troops slated to come home by the end of the year, a peaceful end to nine years of bloodshed. These successes add to his support of the Arab Spring and the liberation of Egypt and mounting signals that he would like to move away from involvement in Afghanistan. Meanwhile, the President is being very tough with the Pakistanis and holding off Iran's advances in the Middle East. Finally, he signed at long last three free trade bills with South Korea, Columbia, and Panama that will give a boost to the economy, in spite of opposition from his own party.

Leadership Gaffes go to Abbott Labs and its CEO Miles White for breaking up a great health care company by spinning off Abbott's $18 billion pharmaceutical business in search of "unlocking shareholder value." In his 12 years as Abbott's CEO, White has done a good job in moving the company into medical devices and expanding its revenues in all its businesses. It is hard to see how any sustainable economic value will be created by this bit of financial engineering. Abbott's move seems intended to mask the reality that the company has been unable to fulfill its mission of discovering drugs and is facing the loss of patent protection on its leading drug. To its credit Abbott has followed a broad health care strategy similar to Johnson & Johnson and Novartis, but the latter two firmly believe their breadth and impact on health care are well served by their strategies. After decades of success, why shift to chasing short-term shareholder value?

Leadership Kudos and Gaffes: Justice Department for a carefully constructed case

Leadership Kudos for the week go to U.S. Justice Department for presenting a carefully constructed case for insider trading against Raj Rajaratnam, leader of the Galleon Fund.  The case led to his criminal conviction and sentence of eleven years in federal prison, the longest ever for insider trading. Sadly, Rajaratnam drew many other people into his illegal trades, often with money and favors, who have already pled guilty to participating with him in these activities

Leadership Gaffes go to Reverend Robert Jeffress and backer of Governor Rick Perry for calling the Mormon faith "a cult," and those Republican presidential candidates who failed to denounce him. The separation of church and state is a bedrock principle of the United States, and as long as candidates for president adhere to that principle, their religion should not become a political issue. Our political leaders should be focusing on the many problems the country is facing by uniting us, not by permitting attacks on candidates for their religious beliefs that only tend to divide the nation.

Leadership Kudos and Gaffes: Recognizing a leader's legacy

Leadership Kudos go to all those who have finally recognized Steve Jobs’ leadership legacy. Jobs didn’t fit anyone’s classic description of a leader but he was always authentic, passionate, visionary and committed to the highest standards – AND he grew wiser by understanding his failures and following his heart to the end. It is great to see him so recognized at his passing. His best advice that we can all follow: "Your time is limited, so don't waste it living someone else's life. Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition." 


Leadership Gaffes this week go to Reed Hastings of Netflix who tried to be too clever with Qwikster.  He got caught with chasing his escalating stock price . . . and wound up destroying 65% of Netflix market cap. Hasting needs to get back to focusing on his customers before he loses them to competitors Amazon and Apple.  While Hastings admitted his error, he doesn’t seem to acknowledge the root cause of his mistakes. As Rob Kaplan says, it’s time to look at the person in the mirror.

Remembering the Greatest Innovator of the Past Fifty Years

With the tragic death of Steve Jobs at the age of 56, the world lost its greatest innovator in the past fifty years. Through his visionary genius, Jobs transformed five separate fields: personal computers with the Macintosh and iMac, animated films with Pixar studios, music players with the iPod, entertainment storage with iTunes, the smart phone with the iPhone, and most recently, created an entirely new field with the iPad. No one in history has successfully transformed so many different fields.

Jobs was not an engineer or scientist, nor did he make use of traditional marketing techniques such as consumer focus groups. Rather, his creative genius was his ability to perceive what consumers would want before they could articulate it. In a data-based era where everyone is demanding data and “proof” in advance, Jobs used his intuitive abilities to envision the kind of problems that would please consumers and meet their unstated desires.

Then he translated those wants into simple, yet elegant devices that were so intuitive to use that no user manual was required. In 1985 he pioneered creative graphics, using a wide array of color, that brought computer screens to life and made them easy to use without understanding programming languages. I had my first Apple product with the Apple 2 in 1982, but my engagement with personal computers really took off with my first purchase of a Macintosh in 1986. Since then, I have enjoyed using my iPod, iTunes, iPhone, iPad, and I ‘m looking forward to becoming an iCloud user.

What’s not well understood about Jobs is the extent to which he was influenced by failure – his own. Recognizing the limits of his managerial abilities in his younger years, the Apple board insisted he bring in a business partner, which led to the recruiting of John Scully in 1982. That marriage, which seemed to go well at first, blew up in 1985 when the two differed on strategy. Was it Jobs’ rigidity over refusing to open up Apple’s unique software to applications developers, or Scully’s need to call the strategic signals – or simply an inevitable power struggle between two strong-willed personalities? We may never know the real answer to that question.

Confronted; by Scully with an “either/or” decision, the board unwisely went with Scully and fired Jobs. As Jobs said later, “How can you get fired from the company you founded?” But fired he was and cut adrift at age thirty to rethink his future. In his prescient graduation address at Stanford University in 2005, the year after he was first diagnosed with pancreatic cancer, Jobs acknowledged that his firing freed him from carrying the burdens of managing a large enterprise. It also permitted him to pursue his creative desires, unencumbered by managerial tasks he didn’t enjoy and wasn’t especially good at.

For the next twelve years, Jobs flourished while Apple floundered. He founded a new computer company called NeXt that enabled him to start all over in designing his ideal computer. Then he bought a small computer graphics subsidiary of Lucas Productions from George Lucas and turned it into Pixar animation studios. Pixar became the greatest producer of animated films of all time, highlighted by Toy Story 1, 2, and 3. At the height of its success, he sold Pixar to Disney in 2006, taking a large ownership position in that company and joining its board of directors.

Meanwhile, Apple stumbled after Jobs left, as Scully demonstrated that he lacked the insights or leadership abilities to keep Apple’s success going through creative designers and exciting new products. His termination led to a succession of outside recruits, including Michael Spindler and Gil Amelio, all of whom fell victim to their inability to lead and inspire Apple’s people. In a historic turn of events, the Apple board purchased NeXt in its desperation in 1996 and brought Jobs back in an undefined role.

But this was not a rapid turnaround. Jobs led the design of the iMac, which was widely appreciated by Apple devotees, but failed to stem the steady slide of Apple’s market share, which dipped below 3%. Apple’s stock continued to slide. By 2003 it was worth no more than when Jobs returned to Apple seven years earlier. My former company, Medtronic, had a market capitalization in 2003 that was ten times Apple’s; today, the tables are reversed as Apple is the world’s most valuable company with a share value that is ten times Medtronic’s.

Then came the iPod, which to computer gurus seemed like a diversion from the computer business, and perhaps it was. But its linkage to reams of legal music files through iTunes wiped out both the player business and the compact disc market. More importantly, it paved the way for integrated information/entertainment devices like the iPhone and iPad, putting Apple well ahead of established competitors in those fields.

It is worth noting that Apple is the only integrated computer company with its own unique hardware, software and retail stores. The latter has created the highest sales per square foot in the history of retailing, featuring only Apple products and authorized accessories.

To me, the most important lesson of Steve Jobs’ life is the way in which he learned from his own hardships – of being an adopted child, of being fired, and of facing death every day for seven years. He accepted these hardships not just as part of life, but as opportunities to go his own way in making a difference in the world.

And make a difference he did! No one in our lifetime has made more unique contributions to the worlds of innovation, of business, or of consumer stimulation. Let us hope that in celebrating his life many other young people will be inspired to go their own ways, trust their intuition, and pursue their dreams and their visions. That could be Steve Jobs’ greatest legacy of all.

Leadership Kudos and Gaffes: Amazon taking the Kindle to the next level and Kodak's board for ruining a great company

Leadership Kudos this week go to Jeff Bezos of Amazon, introducing his latest product breakthrough, a new tablet called Kindle Fire. Listed at a remarkable price of $199 (Apple charges $499), the Fire will offer users a remarkable array of Amazon products, all stored on Amazon's cloud and rapidly downloaded. Staying true to his convictions, Bezos stayed the course with his on-line retail strategy in 2002 when the stock market collapsed and his stock lost 92% of its value. Then he invested heavily in Amazon's first hardware product, the Kindle, revolutionizing the book reading business. This week Amazon's market capitalization topped $100 billion. You have to admire Bezos' courage is taking on Apple frontally, something H-P and others have failed to do.

Leadership Gaffes go this week to the Kodak Board, which has presided over the demise of a once-great corporation. In past twelve years Kodak stock has lost 99% of its value, plunging from $75 to a new low this week of $0.78. (That's not a typo!) Anticipating the digital revolution but unable to develop an internal leader, the board went outside its ranks to recruit George Fisher, then CEO of Motorola, who served as CEO from 1993-2000, but was unable to move the company into the 21st century. Fisher was succeeded by Dan Carp, who drifted from one strategy to the next during his five years as CEO. Then Antonio Perez was recruited from H-P to save the company once again, something he has failed to do. A sad tale, much like H-P, of a board that can't figure out what business it is in.

Leadership Kudos and Gaffes: Two Women Leaders

Leadership Kudos this week go to German Prime Minister Angela Merkel for her courage in keeping the Euro together as Greece's finances unravel. Germany the healthiest economy in Europe, thanks to the strength of its export business and its competitive manufacturing base, and Merkel is willing to take the political heat on the domestic front to help finance Europe's recovery. Germany is an important role model of economic success for the United States and other developed countries to study and even emulate.

Leadership Gaffes go to Carol Bartz, who was terminated by the Yahoo board of directors. Going out with guns blazing, Bartz told Fortune Magazine, that Yahoo's board is "a bunch of dofuses" and "they f---ed me over." Bartz may have inherited a struggling business model, but she presided over a series of strategic missteps.  She overestimated the much-hyped search deal with Microsoft.  She failed to realize the seriousness of the company's restructuring need and foolishly promised "no layoffs," a promise she later reneged.  Her indecisiveness over the Alibaba deal -- back and forth, ultimately to no end -- seems a metaphor for her tenure as CEO.  There are no winners in this mess.  

True North Groups offer approach to developing leaders

Minnesota companies like General Mills, 3M and Cargill have developed national reputations for their leadership development programs. As a result, they have developed many exceptional leaders, which has enabled them to sustain their performance for decades.

As these companies have expanded globally, they also have led the business world in the shift from hierarchical organizations to collaborative, horizontal ones. This is especially important with younger generations because the command-and-control model so prevalent in the 20th century has ceased to be effective. It fails to motivate front-line employees and take advantage of their knowledge and wisdom, especially in global organizations that require collaboration across different cultures.

IBM's CEO Sam Palmisano pioneered the notion of a globally collaborative organization in 2003 as he transformed IBM's hierarchy from functional and geographic silos into an integrated global network. He started with a "values jam" involving 300,000 employees over four days and articulated his ideas in a 2006 Foreign Affairs article, "The Integrated Global Enterprise."

The shift to collaborative organizations with flat structures is causing a reassessment of the ways that organizations develop leaders. Traditionally, organizations have focused on a select group of leaders who can assume the organization's top roles and have invested substantial sums on a few, while leaving others to rely on traditional management skills. Rather than just a few stars, global organizations will need many talented leaders -- hundreds, even thousands -- operating throughout the organization.

For the leaders of today, we are learning that emotional intelligence (or EQ) is more important than IQ. EQ is based more on authenticity and how well-grounded leaders are. In my experience leaders haven't failed for lack of IQ, but rather a lack of emotional intelligence.

In interviews with 125 authentic leaders for True North, we learned that EQ starts with self-awareness about your life story and the crucibles you have experienced. Becoming self-aware is hard to do on your own. People need safe places where they can share their experiences, challenges, frustrations and then get honest feedback. Such a place can be provided by True North Groups -- intimate peer groups where people talk openly in a confidential setting. These groups enable people to gain a deeper understanding of themselves by revealing hidden areas and blind spots.

In a True North Group, people feel comfortable in challenging members when they sense they are losing their bearings or deviating from their values. Members learn to accept others rather than judge them, and celebrate the differences of people with different life experiences. Groups provide support when people face challenges in their work or their lives. Psychologist Daniel Goleman, who wrote "Emotional Intelligence," says, "At a time when we need authentic leaders more than ever, True North Groups ... should be part of every leader's development."

Co-author Doug Baker Sr. and I first formed a True North Group back in 1975. Along with six other men, we have met weekly for the past 36 years. In 1983 we formed a monthly couples group with our spouses and two other couples. These groups have been a godsend in my life, helping me think through my decision to leave Honeywell to join Medtronic and later supporting my wife Penny and me when she was diagnosed with breast cancer.

At Harvard Business School, 1,500 MBAs and executives have experienced these groups in our leadership development courses. Their evaluations have been uniformly positive. Many describe the experience as transformative. Unilever is asking its top 500 executives to participate in True North Groups.

Baker, a former executive at American Express Financial Advisors (now Ameriprise), and I have formed the True North Groups Institute to enable other companies to create similar groups. They have minimal cost and no professional leaders are required (although some organizations use facilitators to get them started). Only limited staff is needed to support them, making them scalable for organizations that need to develop large numbers of leaders.

I believe these groups can be instrumental in developing values-centered, collaborative leaders at all levels for large global organizations, and transforming leadership in the process.

 


Originially Posted: Star-Tribune on September 3, 2011

Why We Wrote True North Groups

Since 1975, Doug Baker and I have been actively involved in small, personal groups that have helped us navigate personal challenges with our families, careers, and health. Our group is a place where we have explored the important questions in life, and clarified and reinforced our own True North values. At their best, group members serve as caring coaches and thoughtful mentors.

Over the years we have been asked by friends and acquaintances, "How can I form such a group?" So the idea for True North Groups was born. It describes the important role that small, intimate groups are playing in personal growth and in developing leaders with high levels of self-awareness and emotional intelligence. The latter part of the book provides "how-to" manual for creating a True North Group. Our belief in the value of these groups is what motivated us to write True North Groups and form the True North Groups Institute.

What is a True North Group and what sets it apart from other groups?

  • 6-8 people meet regularly for personal discussions
  • Primary purpose is the journey of self-awareness that develops stronger leaders
  • The members follow a structured curriculum to guide that journey
  • Participants develop their hearts, forming a balanced head-heart combination

True North Groups provide the best vehicle to help people develop as human beings and leaders, providing a powerful path between our personal lives and the organizations we engage every day. They enable us to become fully alive, awakening to the enormous possibilities within each of us.

A True North Group can serve as a nurturer, truth teller, mirror and an inspirer, among other roles. It can be an antidote to social isolation, which is being increasingly recognized as a serious issue in modern society. This sense of isolation helped give rise to the “Facebook phenomenon,” which helps connect millions of people online. But social media is certainly not a substitute for intimate, trusting relationships where people can discuss their most difficult challenges, as they can in True North Groups.   

The book is organized around a familiar sequence – forming, norming, storming, performing, and reforming.  In forming your new group, the most important thing is to gather a strong group of members who are compatible and respectful of each other. Groups of people in similar age range and life stages are usually most effective.  

It is my hope that this book will provide you with a deeper understanding of the important role that a True North Group can play in your life and how you can form one.  I invite you to share your stories of True North Groups on my website and connect with other True North Group members on Twitter with the hashtag #TrueNorthGroups or on Facebook.