Leaders & Laggards

“Leaders & Laggards” will examine individuals who have used strong views and values to impact positive action versus those who have not.

Leaders:

Charles Prince, Chairman & CEO, Citigroup. Prince has guided the poster child for Wall Street malfeasance back to respectability through both words and actions. His commitment to ethics via a five-point plan called, “Our Shared Responsibilities” has produced a sense that Citigroup is serious about restoring trust and credibility to the company’s sprawling brand. Prince also is matching these words with individual action through a range of related involvements and business gestures.

A.G. Lafley, Chairman & CEO, Proctor & Gamble. Lafley has taken P&G’s performance to new levels while emphasizing to multiple stakeholders how they’re becoming a “connect and develop” company vs. an “invent from within” company. Nowhere is that more relevant than the company’s $54 billion acquisition of Gillette and subsequent communications describing what the new combination will offer customers.

Martha Stewart. Ok, so prison has a way of straightening out even the most domesticated. Stewart, however, has done an about face with her own standing, which had previously been left in lawyers’ hands. Stewart’s re-emergence points to a fundamental principle: If you’re headed for trouble or an out-of-touch period, make sure there’s something reliable -- product, service or memorable characteristic -- that customers can fall back on during an interim period.

Laggards:

Derek Smith, Chairman and CEO, ChoicePoint. SEC & federal investigations, insider selling when the *&^% was hitting the fan, customer complaints, litigation, etc. Did it really have to be this way? And how come the company’s board hasn’t fired Smith or held itself accountable for the mess? For a company that doesn’t understand trust -- not customer information -- is its core asset, something desperately needs to give in this situation.

Bernie Ebbers and Scott Sullivan, former WorldCom villains. Here’s hoping these two clowns both get life sentences for dragging everyone back through their hopeless saga. It probably won’t happen, but if there was a lagging indicator in the market that no one wants to claim, then it’s the daily Executives on Trial drama.

Harry Stonecipher, President and CEO, Boeing. Make that former President and CEO. Lured out of retirement to help restore Boeing’s standing, Stonecipher has been fired for having an extramarital affair with a female employee. Ironically, he had been brought in to restore the company’s standing following previous scandals. Can we say ridiculously bad judgment? Congratulations to the company’s board for taking prompt action.

Single Points of Failure

While the how to be more successful, self-help movement rages on, is anyone interested in the other side of the story?

Failure is a topic that no one likes to acknowledge directly. And for good reason. It’s painful, depressing and debilitating at times.

Rather than harp on the obvious, however, here is another way of viewing the issue.

Single points of failure, in the personal leadership brand context, refer to areas or attributes that everyone possesses, which can generate devastating outcomes if not managed properly. Examples: Bad tempers, poor treatment of people, cheating or, at a simplistic level, not doing what you say you will do.

Even success can become a single point of failure. Say you’re a top producer with a large client as a sole revenue source. That client, if not managed properly, can represent a single point of failure through your own doing or events out of your control.

If you are unable to relate in personal terms, consider admired companies such as General Electric, Microsoft and Wal-Mart. Single points of failure from a product or operations standpoint would probably be readily apparent. But what would be more difficult to find are single points of failure from a leadership and/or senior-level human capital perspective.

Great leaders and great companies know that if they don’t develop depth and knowledge capital across a range of competencies and industries their business will eventually cease to exist.

Enron, WorldCom, Adelphia or any of the other bankruptcy poster children prove the veracity of single points of failure. In each case, individual leaders failed miserably, and due to poor judgment, zero credibility and lost reputation, the respective businesses suffered. (Note: WorldCom luckily had turned to MCI in time to retain market value, but it’s taking awhile to figure out what that value represents. Adelphia is preparing for auction, but the company’s intrinsic value, if they ever had any, has been lost forever.)

Single points of failure also speak directly to why succession and team building are critically important. Boards of directors would be well served to study failure more closely instead of stamping their own definitions of success, or worse yet, turning to fads such as corporate social responsibility to cure their ills.

At an individual level, the challenge is to determine your own single points of failure and then identify strategies for managing the points over time.

In the meantime, keep reaching for the success stars. That remains the only surefire way to outrun failure.

Listening to Create Loyalty

Simple conclusion, right? Not so fast.

Everything that we do, every device that we rely on to do our work (computer, phone, email, Blackberry, etc.), in short, nearly everything in our daily path moves us farther away from listening. Speaking in extreme terms, our entire lives now seem set up not to listen to each other.

Why have we allowed this trend to take hold? The reasons are numerous. Listening requires more attention than any of us have on a given day. It's hard work, which means we don't want any part of it.

Then there's the fear and anxiety side that usually results from dealing with difficult personalities. To paraphase Emerson, individual ego and personality often speak so loudly that it's difficult to hear someone says.

To truly listen often means hearing what's not being said as well as what's being said. That skill is rare, but if you find someone who can effectively read between the lines, you'll find a loyal following somewhere close by.

So, what can we do to listen better?

Step one is awareness. If you're not connecting with someone or unable to leave a lasting impression, you're not observing the basic rule of listening: Consciously thinking about what the other person is trying to convey prior to articulating your own response.

It also helps to learn first what your audience doesn't want to hear and then work your way back to what they do want to hear. No one actively seeks confirmation for what they don't want to know. However, when framed in a different context, it's often possible to reach common ground without having to sacrifice your original intent.

Good luck 'listening to create loyalty' in 2005.

It could be the resolution that no one else has, ahem, listened to already.

JG

P.S. If you're still reading, please feel free to post some anonymous counter-commentary or your own thoughts on this topic.

You're No Donald Trump

“This isn’t personal. It’s just business.”

Those words still ring in my head following a tough budget negotiation in September.

Unfortunately that’s standard procedure for some. If you fall in this category or have found yourself saying similar words recently, here’s an insight: You’re no Donald Trump.

Business is as much a personal, emotive statement as anything we do. The companies and individuals who understand this rule flourish, and the ones who don’t? Well, they may prosper but it is usually on the backs of someone else. Rarely do these actions create a position in people’s mind that says, “built to last.”

Depending on how you view the world, a majority of business people are decent, caring and understanding. They’re friends, friends of friends, colleagues, neighbors, etc. It may not always seem that way in a dispersed world. But don’t be fooled. Your circle of influence is a lot tighter and more transparent than even you may realize.

Your reputation depends almost entirely on performance and building customer/client loyalty, which is an incredibly difficult task without creating a personal stamp. One of the first steps, however, should be to drop the pretense and remember that it’s not ‘just business.’ It doesn’t matter whether you’re selling Internet services, stocks or job candidates.

Now, this isn’t to say that everyone who you do business with needs to be your closest friend or confidante -- or that every interaction will result in great personal connection.

As you make the rounds this holiday season, try to think personal first, business second. You’ll be amazed at the results.

If you doubt the veracity of these words, then consider a Warren Buffett line after his purchase of Borsheim’s Jewelry: “If you don’t know the jewelry, know the jeweler.”

Reputation Matters

In the 10th annual Reputation Quotient Study published in Monday's WSJ, readers can find obvious findings. http://www.harrisinteractive.com/expertise/reputation.asp

Then come the not so obvious and what no one ever studies closely enough -- how personal reptutation can either transcend or destroy a company's standing.

Case in point. This year's biggest loser, Disney, went from fourth last year all the way down to 16th in this year's edition. Reasons cited include greed, ridiculous salaries and general disenchantment with the company. One respondent said, "Next thing you know they'll layoff Mickey and Goofy to enrich their salaries."

With names on trial such as Ovitz and Eisner, it's clear that the company's magic has been lost.

At the other end of the spectrum lies Coke, which remained in the #3 spot despite their well documented problems.

However, unlike Disney, Coke's drumbeat doesn't revolve around imperial personalities gone wild. Names such as Heyer and Daft don't hold as much sway as Eisner and Ovitz, and for that basic fact, Coke is breathing a sigh of relief.

Coke also seems to retain an emotional connection, which is something that Disney has seen fade.

What can the rest of us takeaway from this study?
1.) Name awareness doesn't always translate into results. It's what you do with the awareness that makes a difference.
2.) While the public's attitudes toward business show modest improvement, the gap between the very top earners and the rank and file remains an extremely violatile source of discontent. And outsourcing isn't going away as an issue anytime soon.
3.) Standing for something is the best strategy to manage ebbs and flows.

Anyone interested who grabbed the top spot? Johnson & Johnson, of course. Not too shabby for a drug company. Rounding out the list at #60 was the perennial loser, Enron.

"He's One of Us"

Sometimes there's brilliance in simplicity.

"He's One of Us" explains the re-election of George W. Bush as well as anything else.

Character attributes -- leadership, conviction and faith -- created a wave of support that carried Bush past Kerry, who in the end, suffered from a lack of consistency and perceived personal warmth.

What do all these reasons have in common? It's the intangible, stupid.

Those whom aspire to be leaders would benefit from taking this conclusion to heart.

And the next President is...

Actually, we don't know yet. It may take awhile to determine the winner.

As you watch votes flow in, here are some point-of-view (lower case) overtones to consider:

If Bush wins, he'll be able to point back to the War on Terrorism as his "One Big Thing" that got him through a close race. It's amazing to watch how disciplined Republicans are with staying on message, often to the extreme of clouding facts with reality. But in a rapid image, 24-hour news cycle, the schtick seems to work, especially if Bush holds on to win a second term.

If Kerry wins, he'll be able to point back to his ability to differentiate views and values on issues as a deciding factor. He never established a message along Clinton's "It's the Economy Stupid." However, Kerry did appear authentic and different enough to force a deciding vote. If he loses, Kerry will wish a "Vote for Change" message had been portrayed instead of the Vietnam memory lane stuff.

And if neither wins and it's a tie? Or worse yet, a repeat of 2000 where one candidate gets the popular vote and the other wins the electoral map? For point-of-view purposes, it won't prove anything that substantial. And that may be the greatest takeaway.

Instilling and portraying a consistent point of view will only take you so far; at some point, other factors such as sheer will, luck and outside influences take over.

Happy voting,

JG

Why Disney Won't Get What it Needs

So Disney needs a new chief executive officer. No big news there.

Realistically, will they be able to attract what they really need? Not likely. Here's why:

1.) The same company built on the reputation of one man, Walt Disney, now resembles the reputation of a hundred convicts. Just as it took nearly 20 years to undo the company's brand under Eisner, it's going to take a long time to bring back the magic. One individual can't do it alone. Neither can Mickey Mouse, Doofy and all the other characters that define Disney.
2.) Special interests serving their own needs vs. a shared cause. The recruiting process will probably yield star candidates, but is that what the company really needs at this point? Another imperial ruler would prove devastating to the company's future standing.
3.) Who really wants the job? Fallen brands usually don't find out how far they've fallen until it's too late. One of the key areas where this reality turns up is in retention of leading talent. Beyond the obvious number two, it's hard to name anyone still within the ranks that can lead the company out of its mess.

While the flashy headlines will be aplenty, underneath, it's a perfect case study for why companies that lose their bearings have to face the music sooner or later.

To Be An Oracle

The Point of View (POV) of the week goes to Deval Patrick, the coming and/or going? General Counsel of The Coca-Cola Company.

In a rare, off the corporate text moment, Patrick addressed a crowd of Atlanta leaders earlier today with some of the most pointed remarks you'll ever hear from a corporate executive. Particularly one from the tight lipped, button downed company otherwise known as Coke.

Patrick used the context of globalization to drive home points related to how crises can often present a mandate for change. But only when individuals and companies can recognize the basics contained within the mandate.

More than the speech text itself, the performance clearly put Patrick in his own class of point-of- view leaders.

Here's hoping Coke can retain this stunning example of world class talent. Local executive circles could use more upper tier, role models such as Patrick.

Top 10 Ways How NOT to Create Value

1.) Be all things to all people. Obvious, right? Well, look around. You'll find at least three to four entities guilty of this practice everyday.

2.) Allow the market to determine your pricing. Markets may set parameters, but you're the only one who determines the final level.

3.) Give away services for free.

4.) Related: Do what the other guy does for less.

5.) Maintain the status quo. Lawyers and accountants feel compelled to practice this one because, in their minds, the "profession" demands that they do so. Maybe they're right, but for the vast majority, this is the wrong way to go.

6.) Over-rely on your sponsor or parent organization. Once you're more defined by a sponsor, be prepared to face down the value question with more frequency.

7.) Don't differentiate along individual lines. Can anyone tell any difference between the Final Four accounting firms or firms in any other services sector?

8.) Rely on proven techniques at the expense of exploring new ones. Hey, if it works, keep doing it until it doesn't, right?

9.) Stay in the standard comfort zones. If you're not doing at least one thing a day that makes you squirm with discomfort, then don't expect any breakthrough moments.

10.) Quantity at the expense of quality. If we just get five more clients, everything will take care of itself, right? Well, that obviously depends. But you get the basic point.

Happy business and brand building,

JG

When You're Number Two

Chief Operating Officers and other c-suite subordinates, take note. Tuesday's vice presidential debate will show the importance of serving the team, while at the same time, how to use your own views and values to create differentiation.

Vice President Dick Cheney is the consummate number two role player, but don't let appearances fool you. He can speak candidly and persuasively about the president's policies while remaining strong and independent in his own views. Vice presidential hopeful John Edwards has a different challenge. How to show gravitas yet still advance the candidacy of the Democratic presidential nominee John Kerry.

What to watch or look for:
1.) Who pulls the first punches on issues vs. personality
2.) Who makes a better emotional connection with voters
3.) Who shows that while he may be his "own man," this race isn't about them

Tuesday's debate will present the standard bearer of effective leadership brand: When to know when it's about you, and when to know when it's about your organization or something larger.

Ultimate Job Interview

Thursday's presidential debate represents the ultimate job interview.

Two candidates vying for Leader of the Free World will square off and share their views on foreign policy. That's pretty heady stuff.

What if...you had to debate directly for your next job or major business opportunity? Would the potential high stakes make you stronger, sharper and more aware of the need to differentiate?

Chances are most of us would shudder at the thought of open debate with a competitor. But that's exactly what we face in today's climate.

Think 'debate' during your next interview or presentation. The exercise will do wonders.