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| March 30, 2007 |
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At Netflix, the online movie retailer, CEO Reed Hastings allows salaried employees to take as much time off as they want. He says vacation and face time requirements are "relics of the industrial age." Best Buy is doing the same thing at its headquarters. The lawyers, of course, had to be convinced. They believe the company's legal position and remedies will be compromised in cases where an employee takes a lot of time off and doesn't produce.
But I am all for a lot more of this. We Americans take very little time off work when compared to other industrialized nations and I think we pay for it in a number of ways, including higher stress, discontent, less productivity, and less creativity. As leaders, we have come to expect those who are really committed to our mission to work 60, 70, and even 80 hours per week. The reality is a majority of people putting in those kind of hours are suffering in productivity, creativity, contentment, and ultimately health. Netflix and Best Buy are basically saying, "Here is what we need you to produce at work. Produce it any way you want, but deliver it on time and as we want it, and we'll all be happy." It takes a leap of faith, indeed courage, but I think this is the kind of organizational culture that is increasingly needed for capitalism to thrive as our existence continues to increase in velocity and complexity. |
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| March 29, 2007 |
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Establishing and maintaining a culture and systems of accountability is one of the most challenging tasks of a leader. And yet it is critical to success. Screw up on this, and you’ll fail. Do it right, you’ll succeed. Ram Charan and Larry Bossidy, in their book entitled Execution, say first put the right people in the right places. Second, tell your people the results that you are seeking and the priorities that matter to you. Third, talk about how they can achieve the results you are seeking. Fourth, reward those who deliver the results you seek and link rewards to performance. Finally, if they don’t produce the results you are seeking, do one of the following, without delay: provide additional coaching, withdraw rewards, give them other jobs where they have a better chance at succeeding, or let them go.
And never micro-manage (which dis-empowers people, diminishes their confidence, saps their initiative, and stifles their ability to think for themselves), always be actively involved (using knowledge to probe and question, bring weaknesses to light, and rally people to correct them), and understand the difference between the two. And, finally, the unvarnished truth is essential in every assessment you make and communication in which you participate.
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| March 28, 2007 |
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Over the years, I've met thousands of people seeking the big idea that will make them a lot of money. Something I've learned, though, is that while big ideas are fun, their role in making money is way overrated. Sure, if you came up with the idea for eBay or MySpace, you made a lot of money off the idea. But what you really did was win the lottery. Your passion, hard work and good leadership skills combined with a very unique set of circumstances - product, supply, demand, and timing - to produce a home run.
What the majority of entrepreneurs don't realize is that the big idea is not essential to building a successful business. Just find a product or service you feel good about and can become impassioned about delivering, define premier quality in the eyes of the consumer, and go out and deliver it. It can be as mundane as a plumbing repair business. What is premier quality in the eyes of the consumer in that business? I'll bet it involves reliability and dependability, honesty, clear communication, cleanliness, professionalism, and competence. Deliver these things, charge the premium prices you deserve, and you will capture all the market share you want and make a lot of money. This is true even if the market is crowded with competitors, because at least 80% of your competitors will not deliver premier quality.
I should point out some exceptions I’ve come to appreciate. Some businesses have the deck stacked against them, it seems, for reasons of fashion, cyclicality, or commoditization. All the hard work, passion, good leadership, and premier quality in the world are still highly challenged. You can succeed, many have, but it is very difficult over the long term. A lot of retail concepts, for instance, depend upon what is currently in style. The style shifts and you’re out of it. Construction is cyclical. Interest rates skyrocket, consumer demand for space plummets, and you’re out of business. Distribution, at least where there is no value added by the distributor, is often a commodity and there is inadequate room to differentiate yourself in the eyes of the consumer. There are other particularly challenging areas, but they are dwarfed by the number of mainstream product and service business opportunities that are begging for quality operators. There is a good argument for forgetting the big idea for a new business and putting your big ideas into a business that soneone else dreamed up a long time ago.
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| March 27, 2007 |
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| In the vein of celebrities as leaders (I don't think they have responsibilities to be role models; see March 21, 2007) and my wish that more would capitalize on their opportunities to lead, hats off to Leo DiCaprio who goes all out championing environmental causes. He sits on the board of Matt Petersen's dynamic Global Green (www.globalgreen.org), is a trustee of the National Resources Defense Council (www.nrdc.org), and launched the Leonardo DiCaprio Foundation and www.leonardaodicaprio.org to spotlight environmental issues and solutions. He's also working on a number of related film projects. |
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| March 26, 2007 |
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| Like many, I've been following the story about Alberto Gonzales and his involvement in the dismissal of the eight U.S. attorneys. I say the guy has to go. It simply boils down to one question: Does he display consistency and wholeness in words and behavior such that others have a deep confidence in his abilities and character? The answer is no. He said emphatically on live television he had no involvement in the firings and the documents produced in the past few days directly contradict his statements. He has lost his credibility. A leader without credibility is no longer a leader. |
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| March 23, 2007 |
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If any single feature defines organizations in the twenty-first century, thus far anyway, it is the need for innovation. Regardless of the arena, an organization must innovate just to survive, let alone thrive. Every organization — corporate, nonprofit, government, military, sports franchise, you name it — will lose out to competitors who are more innovative.
In the whole innovation process, though, there lies a trap for the unwary. Innovation is the commercialization of creativity. Creativity is the ability to discover connections in our existence, connections that already exist. Openness, being receptive to all that exists, is all that is required to stimulate creativity and see the connections around us. Here’s the innovation trap: the moment one thinks about the prospects of commercialization is the moment resistance occurs in the process, openness is compromised, and creativity is limited.
How to get around it? Compartmentalize the process. Be open and create the majority of the time, without any thoughts about commercialization. Then set aside times for discerning whether what was created in those creative times is commercially viable.
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| March 21, 2007 |
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I don't believe so. In past generations, our youth did get a taste of this, although there was likely a fiction in the whole thing. We have learned since that there was a lot more dirt in the lives of celebrities than was disclosed by the media. Today, it's all out there...the good, bad, and ugly. We decry our celebrities - our athletes, rock and hip hop stars, and movie stars - for not being better role models to our youth. But I don't think this is their responsibility. They signed up to entertain; they never committed to being role models. Being a role model is the responsibility of a parent, teacher, coach, and other mentors who personally touch the life of the youth.
That being said, it is too bad that more celebrities don't appreciate and capitalize upon the opportunity to be a role model. They are in a powerful position to, at a minimum, prevent kids from doing negative things with their lives and, at a maximum, change a lot of lives for the better. What if Paris Hilton spent some of her nights working with groups of disadvantaged kids from South Central L.A. instead of getting busted for driving under the influence? What if Ron Artest was running a foundation to help kids who abuse drugs instead of getting busted for fighting with fans or abusing his wife? Something tells me they'd be doing a lot of good for a lot of people. It is their choice not to do it, but I sure wish they chose differently. |
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| March 20, 2007 |
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Rhonda Byrne's hot-selling book, The Secret, focuses on the law of attraction, which says that like attracts like. Applied to thought, it says thought, which is an energy body, creates condition. As a leader, think about what you'd like for your organization, and then go live it as if it already exists. No "I want" or "I wish" or "I hope". Each of those separate you from what it is that you want. They place you at Point A desiring to reach Point B. Instead, start living at Point B.
This may sound esoteric and even crazy. But it's not. Let's say I want a $10 million company, but I am only a $100,000 company now with no employees. Beginning in this moment, I start acting as if I am a $10 million company. I raise money to get me started on that path. With that money, I employ the people and other resources needed, and execute the strategies required, to generate that kind of revenue. I begin living it in this moment. I banish doubt and fear from my mind because they perpetuate the present.
It is another dimension of the practice of intention, which will be covered in Chapter 4 of The Source of Leadership. |
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The Merriam-Webster dictionary says that "integrity" was the most frequently searched word at its online site in 2005. Does it trouble you that people don't seem to understand this word? Does it trouble you that a number of high-profile leaders are among the most challenged when it comes to understanding, or at least living within the spirit of, this word?
Over the past few years, I've done some research on this word. Over the past century, the dictionary definitions of integrity have insidiously drifted from their etymological roots in wholeness (reference first to the self) to codes of conduct and acceptability (reference first to outside the self). It wasn't the dictionaries' fault; they're just defining common usage. But the reality is that many leaders today don't do a lot of inward checking, or they have internal codes that are pretty messed up. They are governed more by what they think they can get away with, rather than what is right. Lawyers and accountants tell a chief executive they have a good legal argument in favor of back-dating stock options, so she does it even though she know it's not right. A politician's staff tells him they have enough arguable data to support a claim about a terrorist threat, so he uses it to create a scenario to sway voters even though he knows the scenario is a misrepresentation.
As a result of its bastardization and overuse, I rarely use the word "integrity" anymore. I like "credibility", which I define in the context of leadership as possessing competency and displaying consistency and wholeness in words and behavior such that others have a deep confidence in one's abilities and character. |
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| March 18, 2007 |
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| I've never been a huge fan of Arnold Schwarzenegger as governor of California, and I'm not one yet. But I have to say, I admire what he is doing as a leader these days. In 2006, he backed the California Global Warming Solutions Act, which goes further than any legislation anywhere in the U.S. to mandate the reduction of carbon dioxide emissions. He backs stem-cell research and is working aggresively toward making California the nation's leader in that arena. He recently proposed a universal health care plan for the state. He pisses off the left and the right, depending on the issue, but just keeps marching ahead with what he believes. I like a self-defined leader with courage. I may not always agree with him, but he has earned my respect. |
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| March 16, 2007 |
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| Congrats to Philip Knight and Mark Parker of Nike. You undoubtedly recall their troubles in recent years with sweatshop controversies. But in 2006, Business Ethics magazine named Nike one of its 100 Best Corporate Citizens, based on the strength of its community and environmental programs. Its sustainable design approach, dubbed "Nike Considered" and led by Lorrie Vogel, seeks to eliminate waste and toxic substances from production processes. Watch for the release any day of the Soaker sneaker, with 100% recycled laces, green rubber with 96% fewer toxins, and a design that lends itself to recycling at the end of its life. |
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| March 15, 2007 |
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| Talk about mainstream going green! It's happening at light speed. One of my heroes is Ray Anderson, founder of Interface, a maker of carpets, down in Georgia. Under his leadership, Interface (www.interfaceinc.com) became one of the early adapters of the principles of sustainability expressed by Paul Hawken in The Ecology of Commerce. Early on, Ray was way left of the mainstream, but I just learned that Shaw Industries (www.shawfloors.com), one of the largest flooring companies in the world, also based in Georgia, has developed a fascinating program called "Evergreen" in which it will recycle old carpets into new carpets. Not only is it great for the planet, it is less expensive than buying raw materials. Side note: Shaw is owned by Warren Buffett's Berkshire Hathaway. |
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| March 14, 2007 |
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| I had a conversation today with a new acquaintance who built and runs a $400 million company. I told him about the book I have written and, upon hearing the general theme, he quickly told me about his experience with The Tao of Leadership, a book written by John Heider in 1985. He credits Heider, above all others, for the success he's had. He has copies of the book, which contains 81 principles, on both his office desk and his nightstand. The book was recommended to me about a year ago by a close friend and I share both his and my new acquaintance's enthusiasm. It is fantastic. I have Googled Heider, but can't track him down. I'm wondering if he is still alive and, if so, what he is doing now. I think he was way ahead of his time, which is strange to say given that he was applying millennia-old principles to leadership. His book is a treasure, and more timely than ever. |
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| March 12, 2007 |
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| From no less than Mahatma Gandhi. Check out 1% for the Planet (www.onepercentfortheplanet.org), a non-profit organized in 2001 by Yvon Chouinard, founder and owner of Patagonia, and Craig Mathews, owner of Blue Ribbon Flies. This group asks its members to contribute 1% of sales to one or more of thousands of approved non-profit environmental organizations approved. At last count, the group had 473 members and was contributing over $12 million annually. Most of the heavyweight companies haven't joined yet, but you can bet they will over time. Wall Street will have to embrace it, but Wall Street loves business and, as environementalist David Brower said, "There is no business to be done on a dead planet." |
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| March 11, 2007 |
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| Last Friday, FBI Director Robert Mueller III conceded his agency had improperly, and sometimes illegally, used the Patriot Act to obtain information about people and businesses. And then, with great valor, he said, "Who is to be held accountable? And the answer to that is, I am to be held accountable." As if this were some great display of accountability! Or even courage! Admitting to something after you get caught is neither accountability nor courage in my book. Rather, it's a thinly veiled attempt to reduce the personal consequences of the wrongful conduct. Mueller wouldn't know accountability if he were chest-deep in it. True accountability in his organization would have made what happened impossible. He would have had a culture and systems in place such that the violations of citizens' rights never would have taken place in the first place, or if they did in isolated instances, would have remained aberrations instead of normal course of business. Now, the real job of accountability in this situation lies with our Congress and the Attorney General, and that is to ensure that Mueller and his agents are held responsible for their lack of accountability if, in fact, crimes are proven. |
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| March 9, 2007 |
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| As the problems in our world mount, and the feet of our elected leaders and the leaders of most of the largest corporations seem stuck in concrete, it is fascinating to watch other leaders emerge from the woodwork with energy, ideas, and operating models for ways to solve our problems and better our world. Powerful grass roots initiatives - in areas such as energy, the environment, health care, poverty, foreign policy, you name it - are gaining incredible traction. And the leaders behind them are as diverse as they are inspiring. Big money people like Bill and Melinda Gates, Ted Turner, Gordon and Betty Moore, and George Soros. Entertainers such as George Clooney, Julia Roberts, Leo DeCaprio, Al Gore (former politician, current movie star), Bette Midler, and Oprah Winfrey. And entrepreneurs who seem as driven by altruistic goals as economic bounty. I'm going to spotlight some particularly inspirational leaders and their initiatives as we move along. And I welcome comments about leaders you've seen emerge as this new generation of leadership dawns. |
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| March 8, 2007 |
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Maura O'Neill, a professor at my alma mater, U.C. Berkeley, wrote an article in the February 26, 2007 issue of Forbes, making the points that only 2% of the 1,000 largest public companies are run by women, and a global survey conducted in the late 1990s suggests that 30% more men than women believe it's hard work that determines success in a corporate hierarchy. According to the survey, women believe getting to the top depends more on good luck and connections than hard work. O'Neill's concern, of course, is that when women believe this, their ability to land the top job becomes a self-fulfilling prophecy.
I believe our world in general, including its corporate component, needs more feminine energy in its leadership ranks. An energy that uses its intuition and creativity more, logic and so-called facts less, its empathy-based communication more, and its brawn less. How do we start to create a world where female influence is as powerful as it deserves? |
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| March 7, 2007 |
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| If you missed the Oprah special a couple weeks ago, Building a Dream: The Oprah Winfrey Leadership Academy for Girls, I urge you to visit http://boutique.oprah.com/product/show/5830 and order the DVD. This is one of the most inspirational things I've seen in recent years. I challenge anyone to get through it without shedding tears. Or feeling a little bit different about their life. |
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| March 6, 2007 |
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| JetBlue's CEO, David Neeleman, took a lot of heat for the excruciatingly long delays in New York during the Valentine's Day ice storm. The business media wondered if JetBlue's brand was irreparably tarnished. Personally, I think Neeleman handled the whole thing very well. Reminiscent of Jim Burke's deft handling in 1982 of the Tylenol poisoning situation, Neeleman just said, in effect, "We are sorry. We screwed up and we're sorry. And we'll take action to make it up to you." In an age where many leaders are allergic to the words "I take full responsibility" and "I'm sorry", it was refreshing. |
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| In my experience, most leaders believe a leader is born and cannot be made. I do believe a lot of leaders are born with the leadership traits we expect in a leader, or develop those traits through the experiences of their upbringing. But I also believe a person can make himself or herself a leader, in the same way an existing leader can become a better leader, by working on developing the traits and functions normally ascribed to a leader. To think otherwise is to deny the ability of humans to change themselves and their conditions. I just can't go there. I've seen too many cases of profound changes in people, including people becoming very good leaders after putting their minds to it. So why do a lot of leaders feel the way they do? Well, here are a couple possible reasons. First, it can take an immense amount of work to become a leader and for a leader to become a better leader. Existing leaders, in our short-term-results-driven world, simply don't have the time and resources to develop leaders. They have to find ones that are already baked. Second, they might feel it diminshes their value if, in fact, anyone could be what they are and do what they do with an investment of time and effort. |
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