Blog > Category: Leadership
Published in Harvard Business Review.
The realities of globalization, with increasing emphasis on emerging markets, present corporate leaders with enormous challenges in developing the leaders required to run global organizations. Too many multinational companies — particularly Japanese, Indian, German, and some American ones — still concentrate vital decisions in the hands of a small group of trusted leaders from their home country. They hire technical specialists, local experts, and country managers from emerging markets but rarely promote them to corporate positions. Instead, they groom future global leaders from the headquarters nation by sending them on overseas appointments.
This approach worked relatively well for companies selling standard products in developed markets, but as multinationals transition into truly global organizations relying on emerging markets for growth, it's far from adequate. In order to adapt to local cultures and market needs, companies must shift to decentralized, collaborative decision-making. That requires developing many leaders capable of working anywhere.
To address these needs, new approaches for developing global leaders are required:
- The diversity of top leadership should reflect the diversity of the firm's customers.
- Global leaders must be effective in aligning employees around the company's mission and values, empowering people to lead, and collaborating horizontally rather than managing vertically.
- Rather than concentrating on the on the top 50 leaders, global companies need to develop hundreds, even thousands, of leaders comfortable operating in a variety of cultures.
- Developing global leaders with cultural sensitivities and collaborative skills requires greater focus on emotional intelligence, self-awareness, and empowerment than on traditional management skills.
To understand these approaches, let's examine what leading global companies are doing:
Create diversity among senior leadership. To make sound decisions, companies need a diverse set of leaders who have deep understanding of their local customers, especially those in emerging markets. Opportunities at the highest levels, including C-suite and CEO, must be open to people of all national origins. Atlanta-based Coca-Cola is a pioneer in geographic diversity. As early as the 1960s, the company was run by South African Paul Austin. Since that time, Coca-Cola has had Cuban, Australian, and Irish CEOs, leading to today's CEO, Turkish-American Muhtar Kent.
Over the past decade two Swiss companies, Nestle and Novartis, have made dramatic shifts from Swiss-dominated boards and executive leadership to a diverse set of nationalities. Both now have non-Swiss majorities on their boards and several business units based outside Switzerland. Nestle's executive board represents ten different nationalities, while 80% of Novartis executives come from outside Switzerland.
Focus on values, not hierarchy. The characteristics of successful global leaders today are quite different than traditional hierarchical managers. They need high levels of emotional intelligence and self-awareness to unite people of different cultures, many who are new to the enterprise, around the organization's mission and its values and empower them to make decisions without waiting for higher-level directions.
Samuel Palmisano, IBM's chairman and former CEO, recognized that IBM's traditional hierarchical structure would not be effective in the 21st century because it was dominated by product and market silos. In 2003 he reorganized the company into an "integrated global enterprise" based on leading by values and collaboration, and uses special bonuses to empower leaders to extend IBM's culture globally.
Broaden the reach of leadership development. Collaborative organizations like IBM's require far more leaders than the traditional focus on a select group of top leaders. With flatter organizations and decentralization of power, corporations must develop savvy global leaders capable of operating locally and globally simultaneously. IBM's former chief learning officer recently estimated that IBM will need 50,000 leaders in the future.
Unilever has more than half of its business in Asia, and that percentage will continue to increase. The company has undertaken a major initiative to develop 500 global leaders in intensive leadership development programs to prepare them for expanded roles. According to CEO Paul Polman, "Unilever's Leadership Development Programme prepares our future leaders for an increasingly volatile and uncertain world where the only true differentiation is the quality of leadership."
To be effective in global roles, leaders require experience working and living in multiple countries. Extensive travel overseas is no substitute for living there, gaining fluency in local languages, and deeply immersing in the culture. German chemical maker Henkel, whose executives come from a diverse set of countries, insists they live in at least two different countries before being considered for promotion.
New methods for developing global leaders. Developing global leaders necessitates a shift from focusing on management skills to helping leaders be effective in different cultures by increasing their self-awareness, emotional intelligence, and resilience. Dean Nitin Nohria at Harvard Business School recently sent 900 MBA students overseas to work with companies in countries where they have neither lived nor worked.
It's not enough just to work overseas. To process and learn from their experiences, individuals should utilize introspective practices like journaling, meditation or prayer, and develop support networks of peers like True North Groups. There they can consult confidentially with people they trust about important decisions and have honest conversations about their dilemmas, mistakes, and challenges. These experiences enable leaders to develop the self-mastery and appreciation and acceptance of people from diverse backgrounds required to become effective global leaders.
These methods of developing global leaders for the future are still in their nascent phase, but there is little doubt that they will have a profound impact on developing global leaders in the years ahead.
Originially Posted on Harvard Business Review
December 30, 2011
As the New Year approaches, people will be making resolutions to eat better, exercise more, get that promotion at work, or spend more time with their families. While these are worthwhile goals, we have a more important challenge for young people: Think seriously about your development as a leader.
These are tough times. Many leaders of the baby boomer generation have failed in their responsibilities by placing their self-interest ahead of their organizations. In so doing, they have failed to serve society's best interests. As a result, more young leaders from Gen X and the Millennials are being asked to take on major leadership responsibilities. To be prepared for the challenges you will face, we propose the following resolutions this New Year's:
Find a trustworthy mentor: Mentorship is a critical component of your development as a leader. A 2004 study showed that young leaders with mentors were more likely succeed professionally and experience career satisfaction. The essence of effective mentoring is developing a trusting relationship between the mentor and mentee. Identify someone with whom you have a genuine chemistry and who is committed to your development. Although many mentees do not realize it, a sound relationship is a two-way street that benefits both parties — not just the mentee. We suggest looking for mentors whom you admire for their values and character more than their success.
Form a leadership development group: Most of us have little time to reflect on the values and characteristics we want to define us as leaders, the difficulties we're facing, or the long-term impact we hope to have. Forming a leadership development group can give you the space you need to think deeply about these subjects. Leadership development groups are groups of six to eight people who meet to share their personal challenges and discuss the most important questions in their lives. Find people you can trust, and make a commitment to be one another's confidential counselors. Meet regularly, and share openly your life stories, crucibles, passions and fears, while offering each other honest feedback.
Volunteer in a civic or service organization: Have you served your community this year? In the Facebook era it's easy to lose touch with our real-world neighbors. Long hours often cause us to avoid volunteer opportunities. Participating in local organizations — from religious organizations to civic groups — can give you early leadership experiences, provide real connection to your neighbors, and offer opportunities to serve others. It adds a dimension to your life that work can't, and helps you develop and solidify your character while giving back to the community. You will find your time serving a community organization is highly rewarding while broadening your outlook on people and life.
Work in or travel to one new country: "The world is flat," as Tom Friedman puts it, so it has never been more important to get global experience. In the future cultural sensitivity will be a more important characteristic for leaders than pure intellectual ability. John's survey of more than 500 top MBAs found that on average they had worked in four countries prior to entering graduate school and expect to work in five more in the next ten years. Having a global mindset and the ability to collaborate effectively across cultures are essential qualities for aspiring leaders of global organizations.
Finally, ask more questions than you answer: With the high velocity of change in the world, it is impossible to have answers to all the important questions. Much more important is a deep curiosity about the world and the ability to frame the right questions in profound ways. The world's toughest problems cannot be solved by you or any one organization. Your role will be to bring the right people together to address the challenging issues you raise. Our research demonstrates that the biggest mistakes result from decisions made by people without deep consideration of thoughtful questions.
Young leaders will soon be asked to take on major leadership responsibilities in their organizations and their communities. We believe it is essential that they take steps like these in order to be prepared for the difficult leadership challenges they will face. There's no better time to get started than the coming year.
The 2011 National Leadership Index indicates that Americans’ confidence in its leaders has hit new low points: the overall index has fallen from 101.4 in 2005 to 89.4 in this month’s survey, even below the 2008 level in the midst of the financial meltdown. (100 is the normative level of confidence.)
The index is highly reliable as it is based on interviews of 1,065 Americans and conducted by the Center for Public Leadership, headed by Professor David Gergen at Harvard Kennedy School. These results are very worrisome to me, as without trust and confidence in our leaders, America cannot recover the energy and optimism required to restore its domestic economy and global leadership.
The survey indicates that 77% of Americans believe the U.S. has a leadership crisis. Without better leaders, America will decline as a nation, according to 77% of those interviewed. Seventy-six percent disagree with the proposition that our country’s leaders are effective and do a good job.
Among leadership categories, military and medical leaders continue to top the list, scoring at 112 and 105, respectively. At the very bottom are Congressional and Wall Street leaders, with ratings of 73 and 71, both down sharply from the upper 90’s in 2005. Business leaders fare slightly better at 87, with the White House at 84.5 and media at 84.
The survey’s authors’ observe, “Americans have deeper, more abiding confidence in leaders who can still get something done, and do so with a clear commitment to a greater social good, such as security or health. And they are largely withholding confidence from sectors such as Congress, Wall Street, the media, and the Executive Branch, whose leaders convey the impression that they cannot act effectively for the common good.” Painfully, many leaders in these latter sectors consistently put self-interest ahead of their responsibilities to their institutions and to society as a whole, something I believe it is the greatest failing in this generation of leaders.
The survey concludes on an upbeat note, “For leaders in every sector, and especially those who now inspire very little confidence, these findings are a call to prompt action and substantial changes in behavior. The stakes are high; the nation’s challenges are grave, and the consequences of failed leadership today will be felt
for decades to come.” In the survey’s only hint of optimism, 77% believe the nation’s problems can be solved with better leaders, indicating the extreme importance of effective leadership.
I strongly support these conclusions, and the urgent need for the United States to develop and select new leaders who are committed to put the common good ahead of their own interests. Then, and only then, can the vitality of the United States be restored to its position of global leadership. Kudos to CPL for its vital role in developing this new generation of leaders.
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
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 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 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 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.
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 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.