Blog > Category: Leadership

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.

True North Groups A Part of Leadership Development

Tomorrow marks the Minneapolis launch of my new book, True North Groups: A Powerful Path to Personal and Leadership Development, written with co-author Doug Baker. We have had 1,500 students at Harvard Business School participate in these groups, which we refer to there at Leadership Development Groups. The comments on True North Groups in the following video come from participants in last February’s first executive education course in Authentic Leadership Development. They give a good cross-section of opinions about the value of small groups for leaders.

Leadership Kudos and Gaffes: Google's Page focused on tomorrow's market and HP's Apotheker scrambling

Kudos to Google CEO Larry Page for his bold move to acquire Motorola Mobility to integrate Android mobile operating system.  Page took over day-to-day operations at Google in April, and since then he's made strategic moves that streamlined and focused Google's growth strategy.  Page is the right leader for Google at this time.  While Schmidt was instrumental in allowing Google to become who they are today, Page's focus on mobile and social is positioning the company as a leader for tomorrow's market. 

Gaffes to Leo Apotheker and HP for confused strategy to dump PCs, Palm, Smartphones and overpay for Autonomy. Does HP know what business it is in?  Apotheker and HP are scrambling, and this type of frenetic M&A activity is in marked contrast to rival IBM's approach to disciplined value creation -- largely through organic growth.  Gerstner and Palmisano, both storied leaders, took the long-term view.  Apotheker is not.  Only 18 months ago HP bought Palm, now they want to dump it along with their core business just as the mobile computing market is growing.   

Leadership Kudos and Gaffes: Schultz leading globally and domestically, Boehner's leadership relying on chaos

Leadership Kudos this week go to Howard Schultz, founder and CEO of Starbucks,for his courageous restoration of Starbucks to a pioneering coffee house, nowexpanding around the world under Schultz's leadership. When Schultz returned as CEOin early 2008, most observers were predicting that the Starbucks mystique was waning and its growth was doomed. Schultz jumped in and addressed the problems head on, even closing all stores for a day to get his employees retrained on customer focus. Since then, Starbucks' revenues have grown in double digits, earnings have tripled, andfrom its low point in the fall of 2008, Starbucks stock has quintupled. Who says founders can't successfully go back home?

Leadership Gaffes go to House Speaker John Boehner for explaining Republicans hard line on the debt ceiling on talk radio, "A lot of them believe enough chaos would make opponents yield." He and his fellow Republicans were certainly successful in causing chaos and contributing to the historic downgrade of the U.S. credit rating from AAA to AA+. But the deeper issue here is that Boehner sees everything as a win-lose contest between parties and isn't focused on the country's pressing problems: jobs, growth, and deficit reduction. With 25 million Americans unable to find full-time jobs, don't we have enough chaos?