Tuesday, December 1, 2009

The best leader I've ever known

I wanted to hit a home run on my last blog entry and wanted to think of a charismatic, passionate, inspiring leader that everyone reading this could agree with. Then I wanted my last entry to be about a person that has truly inspired me in their leadership style. Finally, I realized there was one person that did both of these things - Robin Klapper.

That name will never be on any Fortune 500 list, nor Forbes story. It probably doesn't even ring a bell to you - but Robin Klapper is my mother, and will always be the most influential leader I have ever known. The sad thing is I never even realized the impact she had on me until taking this class.

My mom died four years ago, and that will go down as one of the most traumatic moments of my life. However, from that day forward I realize so much of how I live my life and make decisions is based on the foundations that she gave me. Losing her at a young age taught me to grow up much quicker than I wanted to; and it also forced me to reevaluate how I live my life and the principles I use every day. Little did I know until now, it also helped shape how I view myself as a leader.

My mom taught me one thing early in life that I think a lot of elite leaders no longer remember - treat other people how you would want to be treated. A lot of leaders get caught up in their own agendas and the rat race and forget this simple rule. Another thing I learned from my mom early on was if you have nothing nice to say, say nothing at all. Extrapolated into adult terms, a leader should always be mindful that the people that are their subordinates might draw a salary, but at the end of the day we're all "volunteers" in a free society. Any workers can leave a job at any time - and leaders should treat them with proper respect and to not berated or harass them as workers should be treated as valued assets.

I learned leadership lessons from my mom as I got older that I also use as a a leader now. I am always truthful and honest, even if it's not always the most popular thing people want to hear. Along those same lines, my mom also taught me to do the right thing, not the thing people want you to do. To be an effective leader you need to be able to stick to your guns and do what you think is the best, and not be tempted by outside influences.

The last lesson my mom taught me about being a leader is when she got cancer. Don't take anything for granted! Every day is special, and should be lived to it's fullest. Don't wallow when you get dealt a bad hand - fight your battles head on. This is the most critical lesson I learned from her about leadership style. There are no excuses in life. Even if you have cancer, you have to get up every single day and be the absolute best person that you can be.

I'd like to think somewhere my mom would be proud of the leader, and the person, I have become in the past four years.

Wednesday, November 18, 2009

Fool me twice - shame on me!

In an article today from Fortune magazine (http://money.cnn.com/2009/11/18/news/economy/executive_pay.fortune/index.htm), a hot button topic is talked about again - executive pay.

This is something that just can't seem to stay out of the news, especially with a Wall Street Journal report that in 2008, Sanjay Jha, the new co-CEO of Motorola received $104 million in compensation. How can a number that astronomically large still exist in these financial times, even if most if it is based on stock options? In 1929, Eugene Grace, the president of Bethlehem Steel, made the most money in the nation. He earned, which in 2009 dollars equals $20.5 million. Clearly Jha makes even five times more than that, adjusting for inflation.


There was a large cry about pay for executive after the financial horrors of the Great Depression. In 1936, Fortune asked in a national survey," Do you think that in general the officials of large corporations are paid too much or too little for the work they do?" 55% of the respondents said the officials were paid "too much." I don't think you could find 45% of people today to think that CEO's are paid too little.


When you ask most people what they think of when they hear CEO and compensation, this image comes to mind. The CEO gets paid too much, and they get it regardless of whether they truly deserve it or not:

We are hopeful that this recession is about to end, and the GDP of the country can begin to grow again. The worry is that executive pay will fall back to it's old traps - where Boards "reward" CEO's and other top level managers with large compensation packages, regardless of the results they have actually produced. It is worrisome to think we as a country could fall back into our same shortcomings, which helped put us in this financial mess that we just had.
In order for companies to not only survive now, but survive in the long run, the leaders there need to remember that now is not the time to fall back on bad habits. They can't freely rewards themselves and board members outrageous salaries, or else we will be right back where we were the past 18-24 months. Leaders need to take the reigns and decide how they want to define their culture. They need to focus on results, and the bottom line (and high pay will affect the bottom line). Leaders now more than ever need to help employees reach their greatest potential. That will be hard to do when the CEO is making 150% more than the employee they are trying to inspire.
The companies that are still around survived this financial Darwinian test. But now is no time to just rest on those laurels. Companies need terrific leadership to continue to steer the ship. One thing these leaders need to remember is the negative PR, both internally and externally, they will have to face if they go back to old compensation models. The best leaders will fully grasps the new nature of corporate ownership and focus on economic performance for everyone - not just their own paycheck.

Friday, November 6, 2009

He just keeps doing a great Job(s)

In an article posted yesterday on www.cnn.com, there was a story about Fortune magazine naming Steve Jobs CEO of the decade. This story shows just what a remarkable leader Jobs is, and how he has been able to constantly reinvent himself and the industries he works in.

http://money.cnn.com/2009/11/04/technology/steve_jobs_ceo_decade.fortune/index.htm

"It's often noted that he's a showman, a born salesman, a magician who creates a famed reality-distortion field, a tyrannical perfectionist. It's totally accurate, of course, and the descriptions contribute to his legend." This is a quote from the story that sums up Jobs perfectly. He helped create Apple in 1976 and helped it grow in the 1980's, then got forced out, only to return and help revolutionize the computer and technology industries now. Most entrepreneurs that wind up leading an industry are part of the wave of people creating the industries. In Jobs' case, he joined existing industries such as music, movies, and cell phones, and wound up dominating them.

The article talks about how Jobs was part of remaking four businesses during his career, which makes his trademark line "one more thing" seem that much more appropriate. What makes Jobs' companies so amazing is that almost everyone knows about them (and him) and how successful they are - even people that aren't technologically savvy or follow the business markets closely.

"Jobs is all about business. He may not pay attention to customer research, but he works slavishly to make products customers will buy." This is another quote that shows what makes Jobs so successful. He is a tireless work-aholic (he had a liver transplant and was back working within a year) who " is a visionary, but he's grounded in reality too, closely monitoring Apple's various operational and market metrics. He isn't motivated by money," says friend Larry Ellison, CEO of Oracle Rather, Jobs is understandably driven by a visceral ardor for Apple, his first love and the vehicle through which he can be both an arbiter of cool and a force for changing the world.

Apple was worth about $5 billion in 2000, before this latest boom of a "digital lifestyle" strategy. The company is now worth $170 billion, and is more valuable than even Google. All of that occur ed in one decade, as Jobs returned to the fore-front of visibility for the company.

Jobs saved the company from the verge of bankruptcy by leading a successful organizational transformation. When he took over in 1997, Jobs completed the hiring of a new management team, which included several executives from his previous company. Those new hires would form the nucleus of the Jobs brain trust for nearly 10 years. The first product they put out was the highly successful iMac, which helped move the company in the right direction both in terms of product line and cash flow.

His close attention to every detail is what makes the company so successful. He's involved in details you wouldn't think a CEO would be involved in," says Ken Segall, a former Chiat/Day creative director who has worked with Apple on and off for years. Jobs commissioned the iconic "Think different" campaign, says Segall, well before any of Apple's new products were introduced -- or even described to the ad team. "He'd say, 'The third word in the fourth paragraph isn't right. You might want to think about that one.' "

Fortunately, Jobs' health seems to have stabalized, and he is back leading Apple again. Having a charismatic, intelligent, and dedicated leader like Jobs around should keep this company thriving and growing for many years to come.

Wednesday, October 28, 2009

You have to lead with YOUR heart

I found Louis Gerstner, Jr's Who Says Elephants Can't Dance to be one of the best books on leadership I've ever encountered. Gerstner clearly had a lot of obstacles and history to overcome in order to save IBM. When he left his post nine years later (the longest CEO tenure of any person that didn't have the last name Watson), he truly did leave the company better than he found it. While it was an interesting read all the way through, there were some parts that he put towards the end of the book that I found the most interesting, and will remember the most as I begin my foray into professional leadership positions.

By the way - Elephants can dance in a literal sense as well:

http://www.youtube.com/watch?v=wGSFJpFL8JY

I got the most out of the chapter where Gerstner talks about leadership being personal. He talks about how crucial it is to be visible. So many leaders fall into the trap of meetings and closed door sessions, that they forget to get up occasionally and check on the workers that are producing every day for the company. I like how he talks about rolling up your sleeves when things get tough, and not hiding behind the actions of other staff members. At the end of the day, everything falls on the CEO. It would be a bad idea to sink or swim as a leader without personally interacting with your subordinates every chance you get. And this extends not only to people in the company, but also your customers, competitors, and business associates.

The most important thing that was brought up is to lead effectively, "you must treat every employee as someone who deserves to understand what's going on in the enterprise" This means don't hide behind other people when the going gets tough. This means be as open and as transparent as possible (to an extent of course) and remember why you are in place to be the leader of the company to begin with.

Finally, I like how Gerstener talked about how important it is to have passion about your company. I learned here that this is truly the single most important thing in a leader. You can be book smart, street smart, a good negotiator, shrewd, ice in your veins, etc. Without having a passion for what you do and the company you work for, there is no chance of ever being a successful leader. I will take this lesson everywhere I go. Hard work and dedication is important. A mastery of your industry, as well as good people skills, are crucial to succeed. But without passion, you can't accomplish much as a leader. I never really thought of that until hearing it from Gerstner. As he said, we all want to win, win, win. Without the passion to be the best, it's hard to accomplish anything else as the leader of a company.

Thursday, October 22, 2009

Failure = Not being able to change

There is no doubt that the key to a healthy and successful company is the ability to adapt and change when needed. Having the hubris to think that your company is on top and will always be on top is the biggest mistake the leader of a company can make. That type of arrogance is what lead to financial problems for IBM in the 1990's and the Big 3 Detroit automakers in the current economic climate. Leaders need to realize that past success does not guarantee future results.

It is fair to say that when a company fails, ultimately the blame of that failure falls on the CEO and Board of Directors. Those people are in place to lead the company, and when something goes wrong - regardless of any internal or external factors - the blame falls on them. The Process of Change is a vial, yet difficult path, that organizations must follow when things need to be altered for the overall health of the company.

There are different changes that need to be implemented based on if the problems are internal to the company, or part of the external environment. A good leader needs to be ahead of the curve when making these changes. I like how Louis Gerstner, Jr. told his employees at IBM that he wanted them to "Move fast. If we make mistakes, let them be because we are too fast rather than too slow." Granted Gerstner had to do that because he didn't have time to figure out everything in a slow and precise manor as IBM was hemorrhaging money, but I like that leadership model.

I think the hardest thing for a leader to recognize is when exterior factors are a problem for their business. A good leader can notice when problem are happening in-house; a great leader can sense the changing of the guard in the external market and quickly adapt to it before things spiral out of control for the company. In order to combat changing factors in the external climate, there are several things that are crucial, and the ones that I find the most important came from last night's Powerpoint presentation.

The first thing that needs to be done to create change is re engineering existing work processes. If the company is succeeding internally but there are obstacles in the external market, there is no reason to break up and change the company too much. However, it is important to restructure as needed to fend off the competition. Another thing that needs to be done is expanding (or contracting out) work locations. External factors are a good time to reevaluate how internal processes are working and being handled, and if there are some processes that would work better in another area (or eliminated all together). Finally, it is crucial for the leadership to stress integrating a customer-service based approach. Ironically, this rated the lowest when organizations responded how they handle the process of change. In my opinion having elite customer service is a great way to have differentiation in the market place. When external factors such as new competitors, new technologies, a recession, etc. occur, the one constant that a company can fall back on is having the best customer service in the industry. It might not be something to easily accomplish, but it is something that every company can strive to do to the best of their abilities.

As a leader, it's imperative to respond with the listed changes when your company is in need of re-inventing itself before things get too bad - and there is no company to lead anymore.

Tuesday, October 13, 2009

True leadership under fire

Often there is so much hyperbole thrown around in our everyday lives that go back to wars and battles. We take it for granted when we say we want to "kill the other team" or "I'm so mad I could shoot so-and-so in the face." Business leaders are guilty of these tactics too, talking about destroying the competition, taking suicide missions, etc.

One of the best examples of someone going too far is this rant from former Miami Hurricane player Kellen Winslow, Jr. in November of 2003 - the 8th month of the Iraq war and the second year of the war in Afghanistan:

http://www.youtube.com/watch?v=I82BPA5QAaQ

We like the idea sometimes of our sports stars or business leaders talking about "going to battle" and what type of leadership is needed to come out victorious. However, we sometimes forget that there are millions of Americans fighting for our freedom every single day, who truly need excellent leadership not only to win, but to stay alive every day. There might be no more important leader than a person commanding a military unit. The quick thinking, tough, and pressure filled decision making of these commanders can be the difference between life and death. Nothing is more serious than that.

My line of thought for this entry comes from an article in the Ocotber 10th Newsweek where Gen. Stanley McChrystal, the U.S. commander in Afghanistan, described how people constantly offer him ideas for fixing that country's problems. McChrystal is in charge of the command of operations in a war that is beginning it's 8th year this past week. In the article, McChrystal mentioned a strategy that people have asked him about called "Chaosistan". The definition of this according to McChrystal is that it's advised letting Afghanistan become a "Somalia-like haven of chaos that we simply manage from outside."

McChrystal doesn't truly believe in this line of reasoning, but has now become associated with it after mentioning it. That is what happens when you are a leader; any comment that you make and can be traced back to your name is part of your file of quotes or ideas. There is no off the record comments or brainstorming ideas when you are a leader, especially in the military. Every nuance or thought you have is scrutinized and dissected. This is also the case with the president of a country. Everybody wants to know what you think about everything and every moment. Every time you speak as a leader in that spotlight, your ideas and thoughts are out there for everyone to see.

For General McChrystal, his daily decisions affect the lives of hundreds of thousands of American service men and women. While the CEO of GM would be fired if sales slipped, and the politician that does a bad job could be voted out of office if there aren't desirable results, only a military leader truly has the day-to-day livelihood of their constituents to care over. That is why it takes a truly special leader, and a person, to be a military commander on the front lines every single day.

Thursday, October 8, 2009

Just Move Over Baby

I try and stay away from sports talk on this blog so people will realize that I have a deeper set of interests than just athletic related stuff. However, this seems like the perfect time to bring the sports world into some thoughts that I had. As talked about in class last night, there has been a lot of discussion at Florida State about replacing Bobby Bowden - the man who single handily took Florida State from a former all-girls school into an elite national program during his tenure. From 1987-2000, FSU finished the year as one of the top four football teams in the country every single year, which is an amazing feat. During that time the Noles won two national titles, played for several others, and would have played for even more if they could have recruited an average kicker that could hit a field goal against Miami. Bobby Bowden is Florida State football, and it could be argued, is Florida State University too.















When I got home last night I continued watching a five part series on the old AFL that is on Showtime. Last night's episode had a heavy feature on Al Davis, the charismatic owner of the Oakland Raiders.


Al Davis took over the Raiders after they went 9-33 over the previous 3 years (a 3-11 average record). His first year they went 10-4, and was named AFL coach of the year. As a coach, GM, and owner, Davis presided over three Super Bowl titles, and numerous successful years. Al Davis is the face of the Raiders more so than the me pirate logo they have on their helmets:









As a kid I never really warmed up to the Raiders, but I loved Florida State football. Deion Sanders was my favorite player in the NFL, and my uncle was an alum and used to watch games with me. Growing up in Long Island around a bunch of Notre Dame fans made me like FSU even more since it was different than everyone else. I will never forget watching this game in 1993 - this might be the best intro to a college football game ever:

http://www.youtube.com/watch?v=cipJq3ZHuuQ


Now to my main point after a ramble about FSU and the Raiders. Both teams are nationally known and discussed. There is no gray area with these teams - people either love them or hate them ("Free Shoes University" is what rival coach Steve Spurrier called FSU after an incident at a Foot Locker). Florida State and the Raiders were both nothing before Bobby Bowden and Al Davis joined them. These men created a mystique and aura around both teams that can never be duplicated. However, both teams have fallen on hard times recently. FSU has lost five straight to rival Florida and has won the ACC once since the conference expanded in 2004. The Raiders lost the Super Bowl after the 2002 season, and have proceeded to have double digit losing seasons every year since.

How do you tell a legend it's time to move over? I don't know if you can. It's nice to have a succession plan in place for when production slips in any industry, but it seems a little harder in the sports world. Bowden has a successor in place, but he's not graciously passing the torch to him; Davis doesn't have a stated one. Bowden and Davis couldn't be more different on the surface. Davis was born into a wealthy Jewish family and lived in Brooklyn who has spent his entire adult life in California; Bowden was a sickly child raised in a devoutly Christian household in Birmingham and resides in Norther Florida. But these men share one common trait that most great leaders do. It takes a special person to be the CEO of a major company, or the head of a football team. The skill set that is needed to achieve at this high level includes a degree of narcissism and a bit of an inflated ego. Those characteristics are needed to achieve at the highest level.

When things are going well for a company or a football team, those traits are deemed as an asset. Being able to have surpreme confidence in your abilities and being able to tune out outside distraction is what makes a CEO or a football coach a great leader when things are rolling along nicely. However when some speed bumps or detours start to pop up and things begin to slide a little, those traits also make it hard for the leaders to recognize the current downfalls they are experiencing.

Another downfall when you've been on top for so long is that you always think you have time to turn things around. Davis turned 80 this past July 4, and Bowden will be 80 one month from today. The time isn't there for these two to just "weather the storm" and continue to lead once things improve. This is a what have you done for me lately society more than it has ever been before. Both Davis and Bowden would be fired by any peer teams for the results they've had for the past seven years. However, they both believe they've earned the right to leave on their own terms. It's hard to argue both men are excellent leaders at their profession. These men have both proven for decades just how truly great they are as leaders - but they both can't master the last thing they can truly do as a leader - gracefully stepping aside for the sake of the teams that they love. Unfortunately, I don't think either man will leave on their terms, which will make their ultimate dismissals that much more emotionally charged.

The next great leader of Florida State football and the Oakland Raiders will get an early test of how strong their mettle and convictions are. That is because that person will have the unenviable task of removing Bobby Bowden and Al Davis from the position of power they've had for decades, and are not ready to give up. That is because unfortunately neither man is likely to look themselves in the mirror and realize it's time for them to do the ultimate thing a leader can do, yet most aren't able to - walk away from the top of the mountain before being pushed down the side of it.