Transcript I2U

X100
October 26, 2009
Engagement
Responsibility and Accountability
Thought to Ponder
What would happen if the
dollar would collapse?
Currently _devaluing_against foreign
currencies. Collapse…worth very
little...value compared to other
currency is insignificant.
Dollar Devaluation
Dollar “Unofficial” Reserve Currency
“Well Managed”
(Until recently)(63% of reserves non dollar)
= Habit
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Peter Morici – University of Maryland – Former Chief Economist US International
Trade Commission - Newsweek 10/26/2009
Dollar
(Until Recently)
American Alpha Theory.
US make more on foreign investments.
US investments – demand declining.
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Growing debt and trade deficits.
Leads to higher interest required to be paid and significantly added costs.
Stimulus -spending more than making = short-term thinking.
William Buiter – London School of Economics
Dollar
(Until Recently)
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If it would collapse
Prices of foreign goods would skyrocket.
US inflation.
Higher interest rates.
Trade barriers by other countries. (trade wars)
Newsweek 10/26/2009
Cost Reduction Rarely Creates a
Competitive Strategy.
Michael Porter
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Where most companies who are having
problems turn first!
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90% of companies growing less than
GDP growth.
Growing less than GDP is referred to as Stalling.
Once a company stalls only 4% can re-ignite
growth GDP growth.
Clayton Christenson - Harvard
20
We have become a society/culture of
“finger
pointers.”
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Victims of something/someone else!
Not my fault! I know how to fix it
others will not do what I say!
Someone else has to change!
19
Responsibility Avoidance!
Thirst for Exposure!
The Blame Game!
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The culture of victimization has weakened the American character stressing:
Ease over difficulty !
Felling good over being good!
Appearance over substance!
Saving face over problem solving!
Illusion over reality!
“The Oz Principle” –
Connors – Smith - Hickman
18
Responsibility Avoidance!
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Threatens to destroy the American corporate
character by emphasizing quick fixes over long term
solutions, immediate gains over enduring processes,
quality programs over enduring quality attitudes, and
process over results…too many CEO’s hand off
accountability to subordinates without
acknowledging their own responsibility for results.
“The Oz Principle” –
Connors – Smith - Hickman
17
Engaging Human Capital is a Great Business Decision!
Companies Utilizing the Listed Actions Outperform Those Who Do Not !
Contented Employees
Bill Catlette & Richard Hadden
Culture and Strategy Alignment
John P. Kotter & James L. Heskett
Involvement
3X
3X
Revenue
Profits
4X
12X
100X
Revenue Growth
Stock Value
Net Income Growth
3X
ROE
3X
ROE
4X
Revenue Growth
Denison Consulting,
High Trust
“I2U”
Stephen M. R. Covey
Focus on All Stakeholders
Harvard University
Disengaged to Engaged Employees
Gallup – ‘How Full is Your Bucket?”
Cost of Complexity & Related Stress
Bill Jensen – “Simplicity.”
$250 Billion - $1 Trillion Profit
Improvement Opportunity…USA
$1.1 Trillion …USA
16
If everyone would focus on making the
world better…“Leave it better than you
found it”… It would be a perpetuating gift!
• No matter what your major…Your
legacy…Your perpetuate gift!
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Step #1…Focus on something larger
than YOU!
Step #2…Focus on something larger
than YOU!
15
“Purpose” has become an “In Vogue” word.
“Living with a Purpose”
“The Purpose Driven Life”
A “Purpose” is larger than “YOU!”
“Purpose” Adds Value to Something Larger than “YOU!”
“Meism” is the enemy of “Purpose!”
Majority…walk/march to the beat of
“ME!”
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14
Dee Hock – Founder & CEO Emeritus of VISA… “Birth of
the Chaordic Age.”
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Chaord (kay-ord)…Seamless blending of chaos
And order.
Chaos/disarray…Precludes order…ego, envy,
“Me” focused traits!
greed, and ambition…drive disarray.
Organizations are increasingly in disarray!
“Society and the biosphere are increasingly in disarray?”
13
The New American Workplace
James O’Toole and Ed Lawler
Despite a recent surge in productivity growth…2005
United States now ranks 8th in the world vs. 1st in
1973. (Now 11th)
This drop is significant…Productivity
growth is perhaps the best single indicator
of a nation’s economic health.
Our general conclusion is that, in far too many
instances, the United States is attempting to implement
tomorrow’s competitive strategies with
yesterday’s managerial ideas.
12
Replace “Me” with “Disarray”
Trade:
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Ego for Humility
Envy for self control
Greed for time
Ambition for Liberty
11
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“Leaders in good-to-great companies
have both ‘personal humility’ and a
‘ferocious and terrifying will’…first
and foremost for the cause, the work –
Not Self. I once thought these leaders
were ‘freaks of nature’ but now I
believe they are All Over The
Place… the problem is We keep giving
the keys to
The Wrong People.”
Jim Collins author of “Good to Great” at
the 2003 SHRM National Conference
10
Executive Characteristics
Seven Habits of Spectacularly
Unsuccessful Executives… Sydney
Finkelstein – “Why Smart Executives Fail
• They see themselves and their
companies as dominating their
environment.
• They believe their interests are
the company’s interests.
• They think they have all the
answers.
• The eliminate anyone who is not
behind them 100%
• They are obsessed with the
limelight.
• They underestimate obstacles.
• They rely on what worked for
them in the past.
Characteristics of “Good to
Great Leaders – “Good to
Great”…Jim Collins
• Place company before self.
• Get right people on board, who
possess “Good to Great”
qualities.
• Confronts honest truth about
capabilities.
• Unrelenting focus on core
competency/strengths.
• Culture of execution.
• Technology as an accelerator.
• Gathering momentum vs. short
term spinning.
9
70% of senior executives are alpha males…
bold, demanding, self confident, high
intellect, aren’t happy unless top dogs, get
stressed if tough decisions are not in there
hands, independent action orientated,
think fast not good listeners, speak alpha
speak and if do not speak alpha speak
think dumb, have opinions on everything
and they are right, do not admit mistakes.
Manipulate, Maneuver, and Muscle!
8
As a general rule, the society in the USA
finds more manipulating, maneuvering,
and muscling, than value adding actions.
As a result, we find our ability to compete in an
increasingly global economy is decling….Our economic
dominance is being eroded. (The USA is now 11th in the
annualized productivity growth)
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Everyone needs to step up their focus
(responsibility and accountability) on economy
strength vs. personal wealth accumulation.
7
As a general rule, productivity gains are process
or procedural driven changes.
Many productivity attempts are top down
imposed manipulations, maneuvers , or
musclings.
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“The Right to Do” vs.
“Doing What is Right!”
6
Engaging Human Capital is a Great Business Decision!
Companies Utilizing the Listed Actions Outperform Those Who Do Not !
Contented Employees
Bill Catlette & Richard Hadden
Culture and Strategy Alignment
John P. Kotter & James L. Heskett
Involvement
3X
3X
Revenue
Profits
4X
12X
100X
Revenue Growth
Stock Value
Net Income Growth
3X
ROE
3X
ROE
4X
Revenue Growth
Denison Consulting,
High Trust
“I2U”
Stephen M. R. Covey
Focus on All Stakeholders
Harvard University
Disengaged to Engaged Employees
Gallup – ‘How Full is Your Bucket?”
Cost of Complexity & Related Stress
Bill Jensen – “Simplicity.”
$250 Billion - $1 Trillion Profit
Improvement Opportunity…USA
$1.1 Trillion …USA
5
Trusting, contented, engaged, involved, and
aligned organizations are not manipulated,
maneuvered, or muscled.
Great organizational strength comes from
willingness to accept accountability and
responsibility from within vs. driven/directed
from above from above!
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Great organizations have a great
Collective competitive mindset!
Culture!
4
Cult or Culture?
Adapted from the Leader to Leader article, “Leadership Cults or Cultures” - #28 Spring 2003 – Anne Deering, Robert Dilts, & Julian Russsell
• Cult
– Powerful individual or small
group-set direction and make
decisions
– Organization acts out of fear
– Information often not shared
• Organization afraid to speak openly
(Lack of Reality)
• Mistakes recognized but not passed
upward
• Communication is a one way
rhetoric flow
– Success attributed to the
“few”
– Inequality in people
– Control, permission must be
granted
– Data based logic
– Illusions of greatness
• Culture
– Ideas from many cultivated by
leaders
– Organization acts out of
knowledge and alignment
– Knowledge deep in the
organization
– Organization values ideas
– Understand that mistakes must
happen to advance
– Primary communication is one
on one interchange
– Success credited to “all”
– Everyone is of equal value
– Freedom, authority is delegated
– Emotions engaged
– True awareness
3
The Culture And Capabilities Of
Your Organization Is A More
Important Source Of Sustained
Success Than Size, Industry,
Markets Serviced, Strategy, Or
Market Position. (Study of the
culture can predict the future
success of a company)
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“The Human Equation: Building Profits By
Putting People First” by Jeffrey Pfeffer
2
Responsible and accountable people understand
and accept…
Reality!
Without reality…decisions only have a
random probability of being right!
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1
Responsible and Accountable people focus on …
Potential vs. Success!
Success is measured based on the
past…potential is based on what is possible
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Responsible and Accountable people:
-Deemphasize “Me.”
-Accept reality.
-Let go…Make and hold everyone responsible and
accountable.
-Do what is right.
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Trusting, Contented, Engaged,
Involved, and Aligned organizations.