Contemporary Leadership Text Review

Presented by:

Marsha H. Ershaghi Don Gladney Jon Mannion James Liggins

how

“This is a HOW book, not a how-to book.

What’s the difference between how-to and HOW? Everything.”

HOW is a New Lens

how

The Source of Why, What, How We Do What We Do

Coerce

Motivate

Inspire

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Ingrained Habits & Behaviors of Power & Influence

Land Capital Information

Command & ControlDivide & Conquer

Quid Pro QuoArt of the Deal

Amassing PowerWinner-Take-All

Zero-sum

Connect & Collaborate

Communicate & Inspire

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Anyone Can Start a Wave… As Long As They Get Their HOWs Right

•Vision•Passion•Focus•Inspire•Communicate•Transparent•Bigger than Individual•Enlist Others•Celebrate•Becomes Self-Sustaining

Even Opposing Teams and Fans Get Swept Up in a Wave

how

3G WWAN

“Wireless Fabric”

IP CoreSmart Phone

Next Generation PC

Wireless Broadband

Multimedia Broadcasting

M-commerce

Enterprise

Consumer

SMB

Teen/Youth

Vertical Markets

Vertical-specific: Telematics; RFID

Sensor Networks (RFID)

Fiber to the Premises

Network computers

Machines

e-Learning e-Health

Location-based

Home NetworkHDTV

System on Chip (SOC)

Robots

Tomorrow

WLAN

Consumer

Business

Limited Public WiFi

2.5 G WWAN

PDA

Content

Gaming

Simple Apps

Connectivity

Photos

Data-capable Phone

Camera Phone

DSLCable

Audio

Today

Voice

Phone

One-Size

Fits All

WiredPC

*Schematic represented here is a modified version of a slide created by The Yankee Group

We Have Been Connected Globally Faster than We Have Developed Frameworks for Our Relationships

Yesterday

Users Applications

NetworksDevices

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Hyper-Connected = Hyper-Transparency

• ‘Cellphone Paparazzi’

• ‘YouTube Filmmakers’

• ‘Blogger Journalists’

• The Accusation is the Penalty

• Easy to be a Dis-Honorable Accuser

• A Digital Footprint - Information (Email) is forever

• Can’t Manage the Communication

• People Can See Deep Inside an Individual – or Company

Total Users on MySpace = 11th Largest Country in World

how

how

When The Market Defines You, Earning Reputation is Critical

• Can’t hunker down & fight transparency

• Need to “earn” reputation over time

• Consistency in behavior matters

• HOW we live our lives???

“Resume For Life”

“If you lose dollars for the firm, I will be understanding. If you lose reputation for the firm, I will be ruthless.”

- Warren Buffett

e.g.: Michael Vick could lose over $100 million in salary and endorsements after pleading guilty to federal dogfighting charges.

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In A World Where Nothing Stays Hidden, You Have to Have Nothing to Hide

"Sunlight is said to be the best of disinfectants.” -- Louis Brandeis, United States Supreme Court

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Can No Longer Differentiate Based on WHAT

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The “Hows” of Business

“There’s no secret to the what; the secret is in how. They can know our model, but they cannot do it. They can’t copy our hows.”

-Jack Welch, Former CEO-General Electric

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The End of the “Just Do It” Era “Do it Right”

Tom Cruise as Jerry MaguireSony Pictures

“The Things We Think, But Do

Not Say”

Out-SmartOut-ManeuverOut-AccessOut-NegotiateOut-HustleOut-SellOut-MarketOut-NetworkOut-InnovateOut-Produce

Out-Perform

Jeremy Piven as Ari GoldHBO’s EntourageLeverage Management

“!@#$%&”

how

A new word for Webster's 2010 edition?

OUT-BEHAVE: [out-bi-heyv] "verb: to conduct one's business

by exhibiting values and principles that differentiate and win in the marketplace"

Winning with HOW – “Out-Behave” the Competition

Where there is great variation – there is great opportunity for differentiation

how

We Want Trust – But We Create Rules

The Problems with Rules:• External• Ambivalence towards rules• Are Reactive• Over and Under-Inclusive• Tax on the System• Typically are Prohibitions• Require Enforcement• Speak to Boundaries & Floors

but Create Inadvertent Ceilings• Must Obey Exactly• Breed Over Reliance

Rule of Law vs. Rules of Law

how

how

A Critical Distinction: “Can” vs. “Should”

“There is a difference between that which you have a right to do and that which is right to do.”

- Potter StewartUnited States Supreme Court

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“Can –vs.- Should” – Were the HOWs Right?

“Business leaders wondered how HP could have been involved in activity the California attorney general calls ‘colossally stupid’…"

Source: Newsweek

“… I think its on the edge, but above board…”

Anthony Gentilucci

Former Global Security Manager

“… I shouldn’t have asked…”Kevin Hunsaker

Former Senior Counsel & Ethics Officer

E-Mail Exchanges

“It appears, therefore, that the process was well done and within legal limits.”

E-Mail from Larry Sonsini to

Thomas Perkins

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Companies Have a Character

• Culture Fills the Spaces in Between People

• Operating System of HOWs• Based on Shared Values • Culture Can’t Be Copied

“The Way Things Really Happen Around Here”

Federal Sentencing Guidelines“… undertake an appropriate assessment of corporate efforts to create an organizational culture that encourages a commitment to ethical conduct...”

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Significance – Not Just SuccessJohnson & Johnson Credo

When we operate according to these principles,

The stockholders should realize a fair return.

The bricklayer

how

Time

Ach

ieve

men

t

Evolving Behavior & Culture is a Journey

©2006 LRN Corporation

Transaction Focused Manage Reputation

Avoid ExposureCoerce-Motivate

Can Out-Perform

Success

Relationship FocusedEarn Reputation

Active TransparencyInspireShould

Out-BehaveSignificance

B

A

C

how

how

Taking a TRIP : A Formula for Success

Trust – Risk – Innovation – Progress

T.R.I.P. is a formula for thriving in the hyper connected, hyper transparent world of 21st century business.

• What does TRUST do?– Trust fills the brain with powerful chemicals that

strengthen interpersonal bonds by reducing fear. – Stimulates upward spiral of cooperation & value– Trust fuels waves that bring people and organizations

together

Trust Enables Risk Taking Risk can lead to Innovation Innovation breeds Progress

Join the conversation at www.howsmatter.com

We hope that this journey helps you explain to others why, in today’s world, how we accomplish goals matters just as much, if not more,

than accomplishing the goal itself.