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Some Impressionistic takes from the book ofClaudio Fernandez-Araoz“It’s Not the How or the What but the Who“ by Ramki–rama...
About the Author 
ClaudioFernandez-AraozisaSeniorAdviseratleadingexecutivesearchfirmEgonZehnderandaformermemberofitsglobal...
Prelude 
Atit’ssimplest,It’sNottheHowortheWhatButtheWhoisaguidetohiring,developing, andretainingtherightpeople.Thatseemsli...
Prelude-continued 
Inotherwords,puttingourselves,ourcompany,orotherpeopleindistressisdifficult,potentiallyrisky,andunpleas...
Tale of Two CEOsThey have different backgrounds They lead different companiesUnited by two things Extraordinary Leadership...
BorninAlbuquerquein1964 
LittleJeff’schildhoodstartedonasadnote-hisfatherleftthefamilynotlongafterhewasborn. 
Hismother...
“ I’ d rather interview 50 people & not hire anyone than hire the wrong person “-Jeff Bezos
BorninSaoPauloin1959-FatherSebastiaohadgrownupintheinteriorofthestate–10brothers&sisters.Fatherhadonlyonedayofformalschoo...
Amazonwasstartup;Valewasanold,formerlyastateownedcompany 
Amazonwasinahot,newhigh-techindustry;Valeinatraditional, histo...
BothareincredibleLeaders–amazinglybright,hugelyambitious,Strictlydisciplinedinpursuingtheirwell-craftedstrategies. 
Succ...
Steve Jobs 
ThelatelegendaryCEOofApplehadmanytalents 
Mostimportantleadershiptraitwastotolerateonly“A”players 
Hesaidpa...
CEOofSamsungfrom1996-2008 
Brilliantlytransformedfromsemiconductorbusinesstoamonsterglobalplayerinconsumerelectronics 
...
1. The Enemy within 
Human’sarenotprogrammedtomakegreatpeopledecisions.Thefirststepissurroundingyourselfwiththebestistorec...
Leadersmakemajormistakeswhilemakingcrucialpeoplechoices 
Mostleadersstruggletogetpeopleright–andiftheysaytheydon’t,theya...
100yearsagotheworldwas 
Moreinsular 
Businesslesscomplex 
Careersmorestable 
Sothisprimitive,instinctivebehaviourmigh...
The next time your are about to bring someone into your circle-whether it is team member, business partner, doctor or nann...
Overconfidenceinpredictionsispervasivehumanbiasthathasadramaticimpactnotjustonourfinancialorweatherforecasts,butalsoonour...
Inertia overtakes all of us. In order to beat it , make formal commitments, think like a trader and compassionately consid...
Inertia 
Researchfindings–Ifyouhavegivenchoicetorehiresomepeopleintheorganization,Leaderswanttohireonly50%-60%ofthepeople...
Known Devils 
Whether you are shopping for a house or deciding on your next CEO, comparative judgments give you’re the bes...
Known Devils –(1/3) 
DifferenttypesofCEO’ssuccession 
Aninsiderpromotedinafirmdoingwell 
Aninsiderpromotedinafirmdoingp...
Known Devils –(2/3) 
SomethingtoPonder 
Whenthingsaregoingwell–wedon’twordashardtoevaluateinsiders–notonlyinCEO’ssuccess...
The Heat of the Moment 
Watchforpassioninthecandidate 
Emotioncanseriouslyimpairjudgment-itislikeimpulsebuying&laterregr...
The Decision Fatigue 
Ashumanbeingswegetimpactedby“DecisionFatigue”duetomakingpoorchoiceswhenourmentalenergyhasalreadybee...
2. Outside Obstacles & Opportunities 
Externalchallengescanalsopreventyoufromsurroundingyourselfwiththebest.Itisimportantt...
The Other GDP
MassiveTalentcrunch–3factors 
Globalization 
Companiesreachingbeyondtheirhometurf&competingforthepeoplewhocanhelpthemto...
Globalization,Demographics&Pipelinewillcreateunprecedenteddemandfortherighttalentintherightplaceoverthenextdecade. 
Thep...
Whatisthedifferencebetweenatypicalperformer&Highlyproductiveone? 
Astarperformerisabout40%moreproductivethanthetypicalon...
The Best & the Rest –( 2/2 ) 
Starperformersareveryfew,yetincrediblyvaluable. 
Differencebetweenthebest&therestishuge&gr...
Blissfully Unaware
ATypicalInterview(nottherightInterview) 
Aconversationbetweentwoliars 
Liar-1–Interviewer–Paintinganunbelievablerosypic...
Wearemorepositivewhen 
Weareassessingourselvesbroad,ill-definedandambiguousconcepts,suchas“ ManagerialCompetence”,becaus...
ReferenceCheck 
Thereasonforreferencecheckisthatsomepeople,unfortunatelyeitherlieorhideimportantaspectsoftheirbackground...
Noneoftheabovesystemsworkwell 
WhatweneedisSelectiveAristocracy–agroupof3top-notchassessorperdecisiontogiveyouvaluablein...
Three Filters Eliminate almost all Wrong Candidates
Three Filters Eliminate also Eliminate 3 of 10 top candidates
The Problem with Democracy 
HowtoformAristocracy? 
Firstlookforpeoplewhotrulyunderstandwhatisneededtosucceedintherole&or...
Candidatesyouselect–ensurethereismatchinvalueswiththeorganization- conductingmultipleinterviews,Checkingreferences 
Trac...
Start Measuring your own HBA-make it a habit 
Review all the hiring or promotions decisions you have participated in the p...
3. The Right People 
Tofindthebest,youhavetolookintherightplaces, considertherightnumber,& effectivelyassessthemontheright...
Survivor to CEO-Pedro Algorta
PedroAlgorta’sstoryisanunbelievableone. 
OnOctober13,1972,hewasoneof45passengersonatwin-engineturbopropplanethatcrashedi...
WhydidAlgortaexcel? 
Becausehehadallthehallmarksofsomeonewithhighpotential–thatis, theabilitytoadaptandgrowintodifferenta...
Theextraordinarycapacityofthehumanbeingtoovercomethemostadversesituations.Whenoneisalmostdefeatedordead,webuildupstrength...
Thefinalwalk,asagroupobjective.Theneedtolivefocusedonsurvivingdaybyday.Onedayatatime. 
Wedidn´thavealltheanswers.Wewante...
StanfordUniversityStudy-Tracked4yearoldyearchildrenthroughhighschool–PlacingatastyMarshmallowinfrontofthem&tellthemtheyha...
Thebestemployees&executivesarewhattalentmanagementexpertscall“portable”—abletoeffectivelytransitionfromonerole,company,in...
Talentismuchlessportablethanwethink,becauseperformanceisn’tjustoneP;itisbuiltonfive 
Processes,Platforms,Products,People...
Perhapsthebiggestkeytofindingportabletalent,however,isanotherP,potential—theabilitytoadaptandgrowintoincreasinglychalleng...
Ifyouwanttokeepyourcalvesfatandavoidfallingstars,rejectthemythoftheexecutivewhothrivesatalltimesandinallplaces.Instead,con...
Professionalsuccessusedtodependonexperience,knowledge,&skill.Butthingshavechangedinrecentdecades. 
First,knowledgehasbec...
Oneofthemostdramaticexamplesseenonthis,atanationallevel,isthatofJapan. 
ItisdiscoveredyoungJapaneseexecutiveshadhigherpo...
Imaginethatyoulightathousandidenticallightbulbs–samemake 
Leavethemonuntiltheyburnout 
Inevitably,onewilllastlongerthan...
Firstneedtoconsider 
Intelligence,Values,Keyindicatorsofpotential,EI,Portability 
AsperEgonZehnderthereare8Leadershipco...
Outstanding Vs. Average
Globalizationmakestheworldflat–Culturaldifferencesstillabound. 
Howtoread&assesspeoplefromdiversebackgrounds? 
Doesitta...
ModeldevelopedbytheDutchResearcherGeertHofstede 
Powerdistance 
Reflectswillingnessofweakermembersoforganizationstoaccep...
4. The Bright Future 
Surroundingyourselfwiththebestdoesn’tstopatselection. Yourstarsneedtherightintegration,development, ...
InUSAalongmorethan1,00,000peoplearewaitingforthebodypartstheyneedtolive-buttheyalsofaceasignificantchanceoforganrejection...
SayingbyLyleSpencer-“Youcantrainaturkeytoclimbatree,butI’dratherhireasquirrel” 
FindSquirrels–thatispeoplewhoseexperienc...
ToDeveloppeoplearoundyou 
Firstmakesuretheyreallywanttoimproveandhaveastrongvisionofthedesiredfuture. 
Helpyourpeopleob...
As a leader who wants to be surrounded by the best, you need to get your people inspired about improving themselves, espec...
JapaneseProfessionalshadhigherpotentialthantheglobalaverage,butlowercompetence. 
Greatrawmaterial,butapoorfinalproduct. ...
Potential should trump seniority and that-when it comes to the jobs that help leaders grow most-complexity always beats si...
Highgrowthcompanieshadexecutiveswithhigherratingsinall8keyleadershipcompetencies. 
Firstone–drivingperformancethroughCus...
As a Leader you should be disciplined about aligning your people development practices with your situation & goals. 
Aim t...
Capuchin Monkeys & Equal pay
TEDtalks–FransDeWall 
TwoCapuchinmonkeysarekeptinside-by-sidecages. 
Eachmonkeyisgiventhesametasktocomplete:handingthee...
Whenitcomestopeople–toattracting,retaining&motivatingthem-payisalsoimportant. 
Peopleexpecttobeequallycompensatedforthew...
5. Teams That Thrive 
Thebestgetevenbetterwhentheyworktogether.Asaleader,itisyourjobtobuildadiverse,effective,committedgro...
In1990’sworkingintheBuenosAiresofficeofEgonZehndertheirArgentineexecutivesearchpracticesoared,recordingthehighestpercapit...
ThankstoEgonZehnder’scorporateculture,it’ssomethingIgetatworkeverysingleday,andit’swhatencouragesmetogivemyabsolutebestin...
Twobasiccompensationmodels 
Eat-What-You-Kill–inwhichpeoplepaydirectlyreflectsthebusinesstheygenerateandtheworktheyprodu...
6. The Better Society 
Oncewehaveallsurroundedourselveswiththebestinourownpersonal&professionallives,whynotextendthepracti...
BestPracticesforCEOsuccession 
StartPlanningearly,ideallywhenCEOtakescharge,butneverlaterthan3to4yearsbeforeheorsheexpec...
Withouttherightpeopleonthetop&therightmixofboardacompanycannotsucceed. 
Clearstrategy,Alignmentoftheboardoncriticalchall...
Boardcandidatesshouldalsobeformallyassessednotjustonexperienceandculturalfit.Butalsoonfourspecificboardcompetencies. 
Tw...
Companiesneeddifferenttypesofpeopleleadingthecharge,dependingonwheretheystand. 
Inearlystagestocreateavisionofsustainabi...
Greatpeopledecisionsfirststartwithawidepoolofcandidates–insiders&outsiders. 
Thesecondimportantaspectismakinggreatpeople...
Singapore & Jamaica
Singapore&Jamaicawereidenticaltwinsuntil1965. 
Bothcountriesaresubtropicalislandsofsimilarsize&population. 
Bothverywea...
Infewyears 
Publicsectorinstitutedmassivescholarshipprograms 
Rigorousassessmentpracticesfocusedonpotential. 
Extensiv...
The Pope
ThePopehasmorethan4,000bishopsreportingtohim,whointurnleadsome400,000priests,whotendtomorethanonebillionfollowers.I 
Ins...
Hehastodecideonallsortsofcomplexissues,inanvolatileglobalenvironment, facingenormouspressure.Meanwhile,thereisafixedpoolo...
Fourkeyleadershipassets: 
Curiosity, 
Insight, 
Engagement,and 
Determination. 
Doesthecandidateproactivelyseeknewex...
Take Away 
It'saclichéthatitis"people"whomakethedifferencewhenitcomestotopcompanies,butlikealotofcliches,it'sprobablytrue...
To Sum up… 
Recognizingyourfailings 
Understandingexternalchallenges 
Assessingandselectingthebest 
Helpingyourstarssh...
Mail your comments to ramaddster&gmail.com
It's not the how or the what but the who
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It's not the how or the what but the who

This is an outstanding book on People Process especially getting people on board . Whether you are the Chairman , MD , CEO , CFO , HR head or a functional head one of the key and critical accountability is to get the right people on the bus and into the key seats. Anyone who strives to lead from the Good to Great would do well to grow by delving into Claudio’s work, for he is a true master. He gives a brilliant perspective into the fourth era of people decisions for all organizations striving to keep pace with this rapidly changing, increasingly complex world.

As per Daniel Goleman – Emotional Intelligence – “ People decisions are some of the most difficult, yet most consequential choices managers/leaders make. It is not the How or the what but the who has engaging, practical, and evidence based wisdom that will help anyone with this essential task. Claudio offers up a rich collection of penetrating insights . The book offers every Manager / Leader sound direction on what to do Monday morning .

An excellent book on how to execute on great people decisions- extremely relevant for thoughtful executives – “ Hire for Potential & Just not experience “

Finally , a focus on hiring for insatiable curiosity and the insight to see connections, all to achieve collective greatness.

Happy Reading

It's not the how or the what but the who

  1. 1. Some Impressionistic takes from the book ofClaudio Fernandez-Araoz“It’s Not the How or the What but the Who“ by Ramki–ramaddster@gmail.com
  2. 2. About the Author ClaudioFernandez-AraozisaSeniorAdviseratleadingexecutivesearchfirmEgonZehnderandaformermemberofitsglobalexecutivecommittee.HeholdsanMBAfromStanfordandhaspreviouslyworkedforMcKinsey&Company.Heisaglobalexpertonhiringandpromotiondecisionsandleadershipdevelopment,andafrequentspeakeratmajorbusinessgatherings.HisadvicehasbeensoughtbytheCEOsofseveraloftheworld'slargestcompaniesandmanygovernments.Fernandez-AraozisaregularlectureratHarvardBusinessSchool,afrequentcontributortoHBR.org,andtheauthorofGreatPeopleDecisions:WhyTheyMatterSoMuch, WhyTheyAreSoHard,andHowYouCanMasterThem
  3. 3. Prelude Atit’ssimplest,It’sNottheHowortheWhatButtheWhoisaguidetohiring,developing, andretainingtherightpeople.Thatseemslikeafairlystraightforwardproposition,butifyou’veeverhadtohirepeopleyouknowitiseasiersaidthandone. Butwhyisitsohardtofindthebestpeopleforyourorganization?Araoztellsusthechallengesaremany,“bothinternal(yourunconsciousbiases)&external(organizationalandsocietalpressures).”Sothefirstthinghedoesishelpthereaderidentifythoseobstacles,becausethereare“unprecedentedopportunitiesavailableifyoucanovercomethem.”Andthat’sexactlywhatIt’snottheHowteachesyouhowtodonext: Tothatend,lateressayswillteachyouhowtoidentifythebest—thepeoplewhohavetherightmotives,qualities,andpotentialtohelpyouexcel—witheffectiveassessmenttoolsandstrategiesandhowtoexpertlydevelopthepeopleyou’vechosenbyencouragingthemtobecomemoreagileandversatileandputtingthemtogetheringreatteams. Perhapsthemostdifficultdecisionleadersmustmakewithregardstopersonnelislettinggoofthepeoplewhoareholdingyouback.Butwhyisitsohard.Araoztellsusit’sbecause: Threepowerfulpsychologicalforcesworkagainstus:procrastination,lossaversion,andcompassion.
  4. 4. Prelude-continued Inotherwords,puttingourselves,ourcompany,orotherpeopleindistressisdifficult,potentiallyrisky,andunpleasantemotionally.But,Araozremindsus, “Toughdecisionsarewhatmakeyoualeader.”Anotherdifficultdecisioniswhetheranopenleadershippositionshouldbefilledbysomeonefrominsidethecompanyorhiredfromoutsideit.Inmanycases,Araozshowsthatitpaysbigtohireanoutsider,andthatgrowthandsuccessoccursinmuchsmallermeasurewhenthecompanypromotesaninsider.Howtoinsurethatwhicheverapproachyoutakeresultsinsuccess?Don’thesitatetothoroughlyvetinsidersjustasyouwouldoutsiders. AsImentionedattheopenofthisreview,insomeways,It’sNottheHowortheWhatButtheWhoisasimplehiringguide.ButAraoz’sbookstretchesitsboundariesfurtherthanmost,tacklingsensitiveissueslikethosethatoccurwithinfamilybusinesses,andevendelvingintohisconsiderationsonhowtointelligentlyandobjectivelyvoteduringapresidentialelection.Ultimately,itwillassistyou—whetheryouarealeaderoraparticipant—inmakingsoundassessmentsofthepeopleyourelyforyourownultimatesuccess.
  5. 5. Tale of Two CEOsThey have different backgrounds They lead different companiesUnited by two things Extraordinary Leadership successThe relentless focus on talent Committed to only hiring the bestDeveloping their brightest starsUniting them all into great teams ResultThey boost not only their own careers & organizations but also society Jeff Bezos Roger Agnelli
  6. 6. BorninAlbuquerquein1964 LittleJeff’schildhoodstartedonasadnote-hisfatherleftthefamilynotlongafterhewasborn. HismothergotmarriedtocolleagueofherMiguelBezos–Jeffwasadoptedgivinghislastname. Jeffshowedearlyinterestinhowthingsworked–turnedparentsgarageintoalab Experimentedwithelectricalcontraptionsandotherprojects. LaunchedhisfirstbusinessDreamInstitute–educationalsummercampforfourth,fifthandsixthgraders. Fascinatedbycomputers,wentonstudycomputer&electricalengineeringatPrincetonUniversity ThatiswhentheideaofAmazoncametohim-worldwidewebgrowingat2300%permonth. Hedrewuplistoftwentypotentialproductstosellonweb&settledonbooks. Quitthejob1994&startedworkingoutofhisgaragewithfewsoftwaredevelopers. 1990–mostofdot-comswentbust–Amazonflourished SalesjumpingfromUS$0.5Min1995toUS$61billionoutofdozenproductsby2012. TheCompanyemploys88,000employees–ratedamongtoptencompaniesintheWorld. HBRrankedBezosasthebestlivingCEOintheWorld(andIIonlybehindLateSteveJobs) MarketcapitalizationUS$153B–Mar2014 AmazonCountryadjustedreturnsduringthatperiodwere12431%(2012) Industryadjustedreturnswere12,266%(2012) Jeff Bezos-Amazon
  7. 7. “ I’ d rather interview 50 people & not hire anyone than hire the wrong person “-Jeff Bezos
  8. 8. BorninSaoPauloin1959-FatherSebastiaohadgrownupintheinteriorofthestate–10brothers&sisters.Fatherhadonlyonedayofformalschool–diligentlystudiedmathematicsathomewithatutor. InventorofanamazingwooddryerandtopexporterofIndustrializedwood. Rogenlovedtovisithisfather’sfactoryinhisearlyage–soakinginthetechnology,efficiency& cleanliness. StudiedeconomicsatFAAPSauPaulo.JoinedInvestmentbankingofBradescoBank–11yearslaterattheageof33hewasaGMofthecapitalmarketsunit. Heledmorethan500IPO’sofBraziliancompanies–Involvedinprivatizationofthecountry’ssteel,Telecom,Mining&energySectors.TheresultwashecametorunVale. In2000,BradescoaskedAgnellitoheadtheadministrativecouncilofPrivatizedMiningCo.inwhichithadamajorshare. CVRD(ComapanhiaValeDoRioDoce-knownasVale). Gottoknowthepeopleatthecompany,ledastrategystudy–yearlaterwasappointedManagingPresident&CEO. Lessthanonedecade-GrandsonofapoorimmigrantleadoneofthelargestcreationsinCorporatehistory. Valewasthelargestnon-stateownedcompanyinLatinAmerica&oneofthe20largestglobalcorporations.FourthbestCEOintheworld–US$157bmarketcapitalizationduringhistenure. 2011–incomewasUS$23BonrevenuesofUS$59billion–comparedUS$1BonarevenueofUS$4Bin2001.BCGconfirmsthecompanyachievedhighestproductivity&profitabilityintheworldin2000. Countryadjustedshareholderreturnwere934%-Industryadjustedfigurewas1773% Roger Agnelli-Vale
  9. 9. Amazonwasstartup;Valewasanold,formerlyastateownedcompany Amazonwasinahot,newhigh-techindustry;Valeinatraditional, historicone-mining AmazonwasborninUSA,bythattimesthemostcompetitive,developednationontheearth;Valeisbasedinbrazil,perceivedatthetimetobeavolatile,high-riskemergingeconomy. AmazongreworiginallyandmostlyinUSA;Valegrewbothorganically& throughM&A&expandedaroundtheworldveryrapidly. AmazonisanextraordinaryB2ccompanydeliveringincrediblecustomerserviceandnowalsosophisticatedconsumerelectronicsforpersonaluse:ValesisaclassicB2B,aproducerofcommodityrawmaterialsforindustry Contrast -Two companies
  10. 10. BothareincredibleLeaders–amazinglybright,hugelyambitious,Strictlydisciplinedinpursuingtheirwell-craftedstrategies. Successisrootedinrelationships,inthepeoplearoundyou. Bezos&Agnellirecognizethisfact,understandit,embraceit-Mostimportanttraittheyhaveincommon. Theyknowthatinordertosucceed “It is not the how or the what, but the who” As Leaders …
  11. 11. Steve Jobs ThelatelegendaryCEOofApplehadmanytalents Mostimportantleadershiptraitwastotolerateonly“A”players Hesaidpartofhisjobistokeepthequalitypeopleintheorganization Pioneeringraspingthevastgapbetweenthebest&therestinhisfield. Peopleworkedwithhimfoundhimtobeextremelytoughbutinspirationalboss. Whenyouhavegreatpeople,youdon’thavetobabythem. Jobswouldneverhesitatetogetthewrongpeopleoffthebus Hegotridofsomepeoplewhodidnotmeasureuptotherequirement. Hediditinhumaneway Nonethelessithastobedoneanditisneverfun
  12. 12. CEOofSamsungfrom1996-2008 Brilliantlytransformedfromsemiconductorbusinesstoamonsterglobalplayerinconsumerelectronics Throughtechnology&manufacturingexcellence,top-notchcustomerservice, innovationandmarketingthroughtalentedpeople. Resourcestorunabusinesssuccessfully Technology/skill,Capital Information,Speed PEOPLE Exceptforcapital-peopleareinstrumentalindeveloping,changing&utilizingtheotherthree. Peoplefromdifferentbackgroundscanbringinnewperspectives&opinionsthatwillchallengetheexisting&sometimesstubbornorganization. Talentacquisitionneedstobedonemassivelysothereisenoughprobabilitytosucceed. Samsung–thefirstKoreancompanytominimizetheimportanceofacademicpedigreesinhiring&promotiondecisions Peoplearetopofhismind Yun Jong-Yong
  13. 13. 1. The Enemy within Human’sarenotprogrammedtomakegreatpeopledecisions.Thefirststepissurroundingyourselfwiththebestistorecognize-andcorrect-yourownfeelings
  14. 14. Leadersmakemajormistakeswhilemakingcrucialpeoplechoices Mostleadersstruggletogetpeopleright–andiftheysaytheydon’t,theyarenottellingthetruth. JackWelch–FormerCEOofGEsaid-“Makinggreatpeopledecisionsisbrutallyhard“ HeconfessedasJuniorMangeratGE,heprobablygot50%ofappointmentswrong,30yearslater,asCEOhewasstillwrong20%ofthetime. Whyarepeoplechoicessohard? Itisdifficulttopredictthefutureneeds&toquicklyandaccuratelyassesstraits&skills Wehavethewrongbrain&wrongeducationtomakethesedecisionsright. Humanbrainsnowarenotsignificantlydifferentthanthoseofprimitivehunters. Wearethereforethinking,acting,working,decidingonpeopletodaywithapieceofhardwarethatis10000yearsold. Ourdecisionsorchoicesaremadewithlower,unconsciouspartsofourbrains– basedonsimilarity,familiarityandcomfort. Weappreciateandtrustpeoplesimilartous–thatisfactoflife. Prehistoric Hardware; Victorian Software-( 1/2 )
  15. 15. 100yearsagotheworldwas Moreinsular Businesslesscomplex Careersmorestable Sothisprimitive,instinctivebehaviourmightnothavebeensuchaliability. Inthecurrentcontextthesuccesscomesfromhighlyconnected,cross- cultural,globallymindedenvironment Surroundyourselfwithpeoplewhohavediversebackgroundsandcomplimentaryskillsandwhoproperlychallengeyou. VastmajorityofManagers/Leadershavenotreceivedthepropereducation/ trainingonassessingothers. The3competenciesratedmostimportantinmanagingHumanCapital ManagingDecisionmakingprocess Managingstrategy Managinginnovation. These3areleastrepresentedintheMBAcourses Prehistoric Hardware; Victorian Software-( 2/2)
  16. 16. The next time your are about to bring someone into your circle-whether it is team member, business partner, doctor or nanny-remember that making people judgments is extremely hard & can’t be done on automatic Make list of what you know & ask yourself what other information you need to know and make sure you are surrounding yourself with the best. So Sure, but So Wrong
  17. 17. Overconfidenceinpredictionsispervasivehumanbiasthathasadramaticimpactnotjustonourfinancialorweatherforecasts,butalsoonourpeopledecisions. Leadersmakemajormistakeswhilemakingcrucialpeoplechoices Mostleadersstruggletogetpeopleright–andiftheysaytheydon’t,theyarelying. JackWelch–FormerCEOofGEsaid-“Makinggreatpeopledecisionsisbrutallyhard“ HeconfessedasJuniorMangeratGE,heprobablygot50%ofappointmentswrong,30yearslater,asCEOhewasstillwrong20%ofthetime. Ourbrainishardwiredtomakefastpeoplechoicesbasedonsimilarity, familiarityandcomfort. DanielKahnemancallsitWYSIATI–“Whatyouseeisallthereis”. System-1–unconsciousformofthinking–makingstoriesoutoflimited, unreliable,oftenirrelevantinformation. System2-Engagingintheconscious,deliberate,analyticthinking So Sure, but So Wrong
  18. 18. Inertia overtakes all of us. In order to beat it , make formal commitments, think like a trader and compassionately consider long term consequences. Inertia
  19. 19. Inertia Researchfindings–Ifyouhavegivenchoicetorehiresomepeopleintheorganization,Leaderswanttohireonly50%-60%ofthepeople. Leadersthought40%ofthecolleagueswerenotrightfortheirjobs. Mostofusarebad&slowatgettingthewrongpeopleoffthebus! RichardFairbank–CEOofCapitalOne–Peoplespend2%oftheirtimeinrecruiting&75%managingtheirrecruitingmistakes. Whatisthereason? Procrastination-Wanttoavoidunpleasantthings Lossaversion-Weknowwedonothavetherightpeoplearoundus,wespendmoretimeworryingaboutwhatwemightlosethandreamingofwhatwecouldpossiblygain. Compassion-Wearesocialanimals–wefinddifficulttocreatesituationsthatputotherpeopleindistress.–Whatabouthisfeelings? Hisfuture?Hisfamily Wetoleratelessthanthebest Ifacolleagueisnotmeetingyourstandards,behonestwithhim/her.Workwiththemtoimprove,Checkforalternateroles
  20. 20. Known Devils Whether you are shopping for a house or deciding on your next CEO, comparative judgments give you’re the best . They are the best way to avoid appointing the wrong outsiders, as well as those known devils who just are not right for the job
  21. 21. Known Devils –(1/3) DifferenttypesofCEO’ssuccession Aninsiderpromotedinafirmdoingwell Aninsiderpromotedinafirmdoingpoorly. Anoutsiderhiredtoafirmdoingwell Anoutsiderhiredtoafirmdoingpoorly Findings Insidersdidnotsignificantlychangetheircompany’sperformance Similarpeopleworkinginasimilarwayinthesamecompanywillproducesimilarresults. Withoutsiders,theresultwasmuchmoreextreme Theyaddedgreatvalue,mainlyinthescenario4–Anoutsiderhiredtoafirmdoingpoorly. ButtheydestroyedthecompanyinScenario3. Mostpeopleconcludefromthesefindingsthatissafertopromotefromwithin,particularlywhenyouaredoingwell
  22. 22. Known Devils –(2/3) SomethingtoPonder Whenthingsaregoingwell–wedon’twordashardtoevaluateinsiders–notonlyinCEO’ssuccessionbutinallappointments. Outtypicalapproachistolookatlikelyinternalcandidates,analyzetheirperformance&promotethebest. Wedon’tconsiderorananalyzewhatthefuturechallengesoftheroleinquestionorthecriticalcompetenciesrequiredtofacethem Whenareforcetohirefromoutside,wewriteaproperjobdescription,considerlargepoolofcandidates,grilltheminwell- structuredinterviews,in-depthreferencechecks. Noneoftheseareeasytodowithpeoplewhoarealreadythere. Therightthingistoevaluateinsiderssimilartooutsiders. Lookforopportunitiestopromoteyoutopinternalcandidateswhilealsobenchmarkingagainsthigh-qualityexternalones. Bestappointmentshappenwhenthosehiringconsiderawidepoolofbothinsidersandoutsiders.
  23. 23. The Heat of the Moment Watchforpassioninthecandidate Emotioncanseriouslyimpairjudgment-itislikeimpulsebuying&laterregretted. Impulsebuyingisduetostoppageofthinking&startingofthefeeling. Werecognizethatwehaveallundoneunwisethingsintheheatofthemoment. Howtoavoidthedangersoftheheatofthemoment? Likespeed-daters,createachecklistoftheskills&attributesyouwantinthecandidate Starttheinterviewprocess Reviewthechecklistasyoumeetpeople Ifyouaretemptedtotweakthelist,askyourself-hasthesituationchangeoramIbeingswayedbythepeople Useandecisionadvisorassoundingboard Discussyourimpressionswiththem&theywillguidetowardcooldetachment. Askyourselfthequestion–HowwillIfeelaboutmydecision10minutesfromnow,10monthsfromnowand10yearsfromnow. Takesometimeoff–sleepondecisionforareason.
  24. 24. The Decision Fatigue Ashumanbeingswegetimpactedby“DecisionFatigue”duetomakingpoorchoiceswhenourmentalenergyhasalreadybeendepleted. Judgesareinfactparticularlysusceptibletothis–itisfoundcriminalsweremuchmorelikelytobegrantedleniencyatthestartoftheday&rightafterlunchthanothertimes. Youareanywherebetweentwo&sixtimesaslikelytobereleasedifyouareoneofthefirst3prisonersvs.last3prisoners. Gooddecisionmakingisnotatraitofaperson,inthesensethatitisalwaysthere.Itisastatethatfluctuates. Themorechoiceswemakethroughouttheday,thehardereachonebecomes– welookforshortcutsintwodifferentways. Eitheractingimpulsivelywithoutcarefulanalysis Orsimplymaintainingthestatusquo&avoidingchoice. Howtoovercomethis? Makesuretoscheduleimportantinterviews/interactionsattherighttime. Secondavoidunnecessaryorlow-prioritydecisions Greatdecisionmakersneverscheduleendlessback-tobackmeetings–theyneverworkhungry
  25. 25. 2. Outside Obstacles & Opportunities Externalchallengescanalsopreventyoufromsurroundingyourselfwiththebest.Itisimportanttounderstandwhatyouareupagainst-fromshrinkingtalentpoolstolyingjobcandidates-andusethesituationtoyouradvantage.
  26. 26. The Other GDP
  27. 27. MassiveTalentcrunch–3factors Globalization Companiesreachingbeyondtheirhometurf&competingforthepeoplewhocanhelpthemtoit. NumberofChinesecompaniesmovedfrom8in2003to73by2012andalsoIndianandSouthKoreancompanies. Demographics Hiringpoolsisstaggering. Sweetspotforexecutivesbetweentheageof35to45 DemographicshiftwasaffectingmostlyUSA&Europe By2020manyotherlargeeconomics,includingRussia,Canada, SouthKorea&evenChinawillhavemorepeopleatretirementagethanenteringtheworkforce. Pipeline Related&equallypowerful,butmuchlessknown Companiesarenotproperlydevelopingtheirpipelineoffutureleadersinthewaytheyneedto. The Other GDP-( 1/2)
  28. 28. Globalization,Demographics&Pipelinewillcreateunprecedenteddemandfortherighttalentintherightplaceoverthenextdecade. Thepaceofglobalizationisgoingtobefaster–theimbalancebetweenold&youngisgoingtobedramatic. Howtoconfrontthesechallenges? Thispresentsanopportunityatboththeindividual&teamororganizationlevel Makewisecareermoves,workonhoningyourskillsandyouwillbeinhighdemand AsManager/Leaderworkhardtohire,developandretainthebesttalent-youwillbeastepahead. Thequestionsyouneedtoask? Howglobalizationwillaffectyourcompany? IStherearethreatduetodemographics? Whatisthestrengthoftheleadershipbench? Arethereddotpositionsyouneedtoworkonthepipeline? Newtypesofhiresyouwillneedtotackleanewgeographicmarket,customersegment, technologyorstrategy. Whoareyourmoststrategicplayers? Themostcompetent&critical Whichcompanyorcompetitorswillposethechallengeforyou? Howareyougoingtoretain? The Other GDP-( 2/2)
  29. 29. Whatisthedifferencebetweenatypicalperformer&Highlyproductiveone? Astarperformerisabout40%moreproductivethanthetypicalone E.g.-Atoplifeinsurancesalesperson240%moreproductivethantheaverageone.Standoutsoftwaredevelopersorconsultantsoutperformedmostpeersby1200%. Appleisninetimesasproductiveastheaveragesoftwareengineeratothertechnologycompanies. ThebestblackjackdealeratCaesarsPalaceinLasVegaskeepshistableplayingatleastfivetimesaslongastheaveragedealerontheStrip Nordstromsellsatleasteighttimesasmuchastheaveragesalesassociateatotherdepartmentstores Besttransplantsurgeonatatop-notchmedicalclinichasasuccessrateatleastsixtimesthatoftheaveragetransplantsurgeon. The Best & the Rest –( 1/2)
  30. 30. The Best & the Rest –( 2/2 ) Starperformersareveryfew,yetincrediblyvaluable. Differencebetweenthebest&therestishuge&growingfast AverageJoes–typicalcandidates– businesscannotbesuccessful. Averagebosses,companies, colleagues&challengesmakeyouaverage. Insteadmakesurethepeopleabove&besideyoucanhelpyoupersonallymovetothefarrightofthetail
  31. 31. Blissfully Unaware
  32. 32. ATypicalInterview(nottherightInterview) Aconversationbetweentwoliars Liar-1–Interviewer–Paintinganunbelievablerosypictureofthecompany&job Liar-2–Candidate–Respondsbyexplaininghowgreatheorsheis, givingtheimpressionthatthedayheorshestartsworkitwillbeGodhimselfwalkingin. Humansnaturaltendencyistobelieveyouaremuchbetterthanyourare. Weexaggerateourstrengths&playdownonourweaknesses. Thisistheadvantageofboostingourself-esteem.Butmakesdifficultforotherstoaccuratelyevaluateus. 360degreereviewsareverygoodtoolstobringusclosertoreality-butthisprocessisofteninfrequent,threatening,sugarcoated,ortoolate Youwillalwayswanttoputyourbestfootforward–soconsciously& unconsciouslyplayupyourattributeswhileignoringthefaults. Blissfully Unaware-( 1/2 )
  33. 33. Wearemorepositivewhen Weareassessingourselvesbroad,ill-definedandambiguousconcepts,suchas“ ManagerialCompetence”,becausewefocusonthecomponentsorinterpretationsinwhichwedobetter. WearetakingonnewprojectsormarketsbecauseWYSIATI(whatyouseeisallthereis)makesusignorethemanyunknowns. Webelievewehavenothingtolose,whichmeanstheunemployedandunhappyareparticularlypronetoembellishment. Socheck Forself-awareness&humilityinanycandidate.Lookfor2H-HungerandHumilityintheperson Reducethesocialpressureforoverlypositiveself-assessments. Donotdiscussoncompensation–theincentiveisalwaysonfit,notonmonetaryrewards. Givedetailsaboutwhatyouneed-skills,behaviors&becandidabouttheexpectedchallenges.–Positives&negativesoftheJob Thisiswillenablewrongpeopletooptout&vaccinatetheeventualhire. Tellthepersontodiscussthepotentialroleandhisorherreadinessforitwithclose,trustedfriends. Makesuretoconductsmartreferencechecks. Blissfully Unaware-( 2/2 )
  34. 34. ReferenceCheck Thereasonforreferencecheckisthatsomepeople,unfortunatelyeitherlieorhideimportantaspectsoftheirbackgroundonresumes&insocialmediaprofiles&interviews. Routinebackgroundcheckscanhelpyoufindmore Watchinglanguagealsoworks-liarstendtousemoreexpletives,thirdpersonpronounsandcomplexsentencesthattruth-tellers. Haveaprobingconversationwithavarietyofpeoplewhohaveworkedcloselywiththecandidates. Agreewiththecandidateoncomprehensive&relevantlistofpeopletocall, includingformerbosses,peers&subordinates. Providetherefereewiththerightincentives Stattheconversationbyhighlightinghowimportantitistohaveareliablereference Emphasizethatthereferee’scommentswillbekeptconfidential Speakinpersonoroveraphoneandnotone-mail. Itiseasiertosolicitthewhole-truthwhenyoucanhearhesitationoremotioninaperson’svoiceorseeitonhisorherface. Helptherefereetoavoidfrequentbiases.Avoidbroadquestions Bespecificaboutthejob,knowledge&challenges Bad Candidate , Great Reference
  35. 35. Noneoftheabovesystemsworkwell WhatweneedisSelectiveAristocracy–agroupof3top-notchassessorperdecisiontogiveyouvaluableinput. Badassessorsnotmonkey;theyaremonkey’swithmachineguns,randomlykillingcandidatesallovertheplace. Andifyoulettheintoyourprocess,itisnotademocracy,itisanarchy The Problem with Democracy Modelsoforganizationforpeopledecisions Dictatorship-Companyleadersunilaterallydecidewhoishired,fired,staffedorpromoted BenevolentMonarchy–KingorQueenstillrules,butostensiblyinthegroup’sbestinterest. Democracies-Whereallinterestedpartiesseemtohaveasayorvoteorextremecasesvetopower
  36. 36. Three Filters Eliminate almost all Wrong Candidates
  37. 37. Three Filters Eliminate also Eliminate 3 of 10 top candidates
  38. 38. The Problem with Democracy HowtoformAristocracy? Firstlookforpeoplewhotrulyunderstandwhatisneededtosucceedintherole&organizationforwhichyouarehiring. Aimtohave3outstandinginterviewers Secondchooseonlypeoplewhoaremotivatedtoconductathoroughassessment&makegooddecisioneitherbecausetheywillbenefitfromitorbecausetheytakegreatsatisfactioninhelpingothers. Thisisoneofthegreatestdifferentiatorsbetweengreatinterviewersandterribleones. Finallymakesureeveryonehasbeentrainedinthebestassessmenttechniques,includingstructuredinterviews&referencechecking.
  39. 39. Candidatesyouselect–ensurethereismatchinvalueswiththeorganization- conductingmultipleinterviews,Checkingreferences TrackingHBA(HiringBattingAverage)–ensuretoptalentspotterswouldstayintherotation,worstsatatthebench. AftersixmonthsofhiretheemployeeisevaluatedbytheManagersontheperformance-Below,MeetorExceedsexpectations. ThecompanycalculatestheaccuracyofHBAofeachinterviewer. Ifthemanagerhadapprovedtencandidatesandsixmonthslater,8ofthemareperformingatoraboveexpectations,hisorherHBAwouldbe0.8andheorshegettostayinvolvedinthetalentacquisition. Fourgreatbenefits Itseparateswheatfromthechaffamongyourinterviewers-the“Vice-gods’fromthe“monkeyswithmachineguns” Second,itfightsinertia,forcingyoutoreviewyourpeopledecisionsearly, beforethebadoneshavetimetofester. Thirditpromptsinterviewerstouptheirgame-Accountability Finallyitmotivatesmanagerstostayinclosercontactwithnewhires-evencoaching&mentoringthem Hiring Batting Average
  40. 40. Start Measuring your own HBA-make it a habit Review all the hiring or promotions decisions you have participated in the past five years, mapping your opinion of the person against their actual performance. If you are involved in an interview and the candidate is selected – mark in your calendar to check whether your initial assessment was accurate –6 months later.
  41. 41. 3. The Right People Tofindthebest,youhavetolookintherightplaces, considertherightnumber,& effectivelyassessthemontherightattributes& competencies-frommotivationtoEI,portabilitytoleadershipskills
  42. 42. Survivor to CEO-Pedro Algorta
  43. 43. PedroAlgorta’sstoryisanunbelievableone. OnOctober13,1972,hewasoneof45passengersonatwin-engineturbopropplanethatcrashedinthefrozenAndes. Theimpactinstantlykilled12people;fivediedfromtheirinjuriesthenextday. Andthatwasjustthebeginningofa72-dayordeal--oneofthemostdramaticsurvivalstoriesofthepasttwocenturies. Ithasbeenchronicledinseveralbooksandonemovie,Alive,butI’llbrieflyrecountithere. Thedayswerebitinglycold;thenightsfrigid,andendless. Therewasnofood,otherthanwineandchocolate,whichthegrouprationedforafewdays. Throughasmalltransistorradio,thesurvivorsheardthattheywereonlyexpectedtolast72hoursandthat,althoughsearch-and-rescueteamscanvassedtheAndesfor10days,theyhadultimatelybeengivenupfordead. Soon,thegroupstartedtodiscusstheunthinkable–eatingthefleshofthefrozenbodiesaroundthem.Eventually,withbrokenglass,theycutasmallpiecefromonecorpse,thenateit,onebyone.Somehow,Algortaand15otherssurvivedformorethantwomonthsbeforetheywererescued. Survivor to CEO
  44. 44. WhydidAlgortaexcel? Becausehehadallthehallmarksofsomeonewithhighpotential–thatis, theabilitytoadaptandgrowintodifferentandincreasinglycomplexrolesandenvironments. Whattolookforwhenassessingthepotential? First,therightmotivation.Highpotentialshavegreatambitionandwanttoleavetheirmark,buttheyalsoaspiretobig,collectivegoalsandshowdeeppersonalhumility. Wethenconsiderfourothertraits: Curiosity:apenchantforseekingoutnewexperiences,knowledge,andcandidfeedbackandopennesstolearningandchange Insight:theabilitytogatherandmakesenseofinformationthatsuggestsnewpossibilities Engagement:aknackforusingemotionandlogictocommunicateapersuasivevisionandconnectwithpeople Determination:thewherewithaltofightfordifficultgoalsdespitechallengesandtobouncebackfromadversity Survivor to CEO
  45. 45. Theextraordinarycapacityofthehumanbeingtoovercomethemostadversesituations.Whenoneisalmostdefeatedordead,webuildupstrengthfromadversitytocontinuefightingforlife.Wegodeepintoourmostbasicinstinctsandgatherstrengthtolive. Wewereordinarypeople.Anyone,undersimilarcircumstanceswouldhavedonethesame,andeventuallysurvived.Andonceyouhaveovercomeyourmountain,youhaveanotheronetoclimb. Ordinarypeoplecanaccomplishextraordinaryobjectives. Wecouldn’thavesurvivedindividually.Survivalwasteamwork, whichneededeachoneofustobeOK.Youneedtoworkfortheteamandforyou. Therewerenoabsoluteleaders.Differentleadersemergedaccordingtodifferentcircumstances.Youhavetofindyourauthenticleadershipstyle.Notallleadersarealike.Onethingistobeahero,anotheristolead. Leadership Lessons from a plane crash-Pedro Algorta
  46. 46. Thefinalwalk,asagroupobjective.Theneedtolivefocusedonsurvivingdaybyday.Onedayatatime. Wedidn´thavealltheanswers.Wewantedtolive,weworkedtosurvive,butwewerenotsureweweregoingtomakeit. Ourenormouscapacitytorecover.Ourresilientcapacity. Afterthisordeal,wehavealllivedordinarylives.Howwemanaged.Theneedtoputitinabackpackandlookforward. Thedifferentperceptions.Theordinaryoutoftheextraordinary.For35yearsthisordealwasnotanissueforme." Leadership Lessons from a plane crash-Pedro Algorta
  47. 47. StanfordUniversityStudy-Tracked4yearoldyearchildrenthroughhighschool–PlacingatastyMarshmallowinfrontofthem&tellthemtheyhaveachoice-Theycaneatitimmediatelyorwaitabout15mins.AndgetanextraMarshmallowtoenjoy-ResultsforResistors Moresociallycompetent,personallyeffective,,self-assertive& betterabletocopewithlifefrustrations. Lesslikelytofreeze,regressorbecomedisorganizedwhenunderpressure. Embraced&pursuedchallengesinthefaceofdifficulties. Selfreliant&confident,,trustworthy,dependable,initiative Stillabletodelaygratificationinpursuitoftheirgoals. Moreacademicallycompetent,betterabletoputtheirideasintowords,touserespondtoreason,toconcentrateandtomakeplans&followthrough.Eagertolearn Marshmallow Kids-Impulse Resistors
  48. 48. Thebestemployees&executivesarewhattalentmanagementexpertscall“portable”—abletoeffectivelytransitionfromonerole,company,industry,orcountrytothenext. Mostpeopleassumethatthebesthiringstrategyistofindthebestperformersinagivenfieldandgetthemonyourteam,butHarvard’sBorisGroysberghasfoundthat,likethosecalvesfrombetterfarms,mostpeoplearen’tsoportable. OneofthebestwayshedemonstratesthisiswithastudyonequityresearchanalystsmovingbetweenWallStreetinvestmentbanks. Youwouldexpecthighportabilityinthesesituations:Makingsuchamove, theycontinueoperatinginasimilarenvironment,analyzingthesamecompaniesinthesamesector,workingwiththesameclients. Theydon’thavetoselltheirhouse,movetoanotherstate,buyanewhouse, lookfornewschoolsforthechildren,orhelptheirspousescopeandadjusttoamove. Whatcouldbeeasier?YetBorishasfoundthatwhilestarequityresearchanalystswhostayatonefirmcontinuetoshine,theperformanceofthosewhomovedeclinesquitedramaticallyinthefollowingyearandremainsbelowpreviousheightsevenafterfiveyears. Fat Calves & Falling Stars-( 1/4)
  49. 49. Talentismuchlessportablethanwethink,becauseperformanceisn’tjustoneP;itisbuiltonfive Processes,Platforms,Products,People,andPolitics—andmostofthoseyoucan’ttakewithyou. Whereyoucomefromandwhereyougotomatter.Whilecattlefromfertilefarmsdon’tgainasmuchweightatregularfarms,thesurvivorsofpoorenvironmentsflourish. Likewisewhenastarexecutivemovestoaweakerfirm,hisorherperformanceislikelytoloseitsluster;ifthepersonmovestoastrongerfirm,bycontrast,heorshewillkeepshining. Thinkaboutitinpracticalterms:ShouldyouonlyembracecandidatesfromoutstandingfirmslikeMcKinseyorGoldmanSachs,asmanycompaniesdo?Orwouldyoubebetterofffollowingamorecounterintuitivestrategyandfindingthetruetalentswhohavemanagedtothriveatweakerfirms? Teamsareimportanttoo.Whenpeoplemovetogether,theytendtodobetterthanwhentheymovealone. Inaddition,sometypesofrolearemoreportablethanothers:COOsaremuchlesssobecausetheirjobrequireslotsofinternalknowledgeandmanyrelationships;CFOsandotherfunctionalexpertsareusuallybetterpositionedtomove.Youmustcheckforhowwellanincomingstarwillfitintoyourindustrygivenitsdynamics,intoyourorganizationgivenitscultureandstrategy,andintoyourteamgiventhepersonalitiesonit. Fat Calves & Falling Stars-( 2/4)
  50. 50. Perhapsthebiggestkeytofindingportabletalent,however,isanotherP,potential—theabilitytoadaptandgrowintoincreasinglychallengingrolesandbusinessenvironments. Althoughtoday’sbestH.R.practicestendtofocusonexperienceandcompetencyfit(makingsurethatsomeone’sabilitiesmatchthoserequiredforthejob),intoday’svolatile,uncertain,complex,andambiguousworld,that’snolongerenough,becausethejobitselfissolikelytochange. First,therightmotivation.Highpotentialshavegreatambitionandwanttoleavetheirmark,buttheyalsoaspiretobig,collectivegoalsandshowdeeppersonalhumility. Highpotentialsalsohavefourothertraits: Curiosity:apenchantforseekingoutnewexperiences,knowledge,andcandidfeedback,andanopennesstolearningandchange. Insight:theabilitytogatherandmakesenseofinformationthatsuggestsnewpossibilities. Engagement:aknackforusingemotionandlogictocommunicateapersuasivevisionandconnectwithpeople. Determination:thewherewithaltofightfordifficultgoalsdespitechallenges, andtobouncebackfromadversity. Fat Calves & Falling Stars-( 3/4)
  51. 51. Ifyouwanttokeepyourcalvesfatandavoidfallingstars,rejectthemythoftheexecutivewhothrivesatalltimesandinallplaces.Instead,considerhowportableyourcandidatesreallyare. UnderstandhowthefivePshaveplayedintotheirperformance. And,mostimportant,checkthattheyhavethepotentialtoembraceandexcelthroughunrelentingchange. Fat Calves & Falling Stars
  52. 52. Professionalsuccessusedtodependonexperience,knowledge,&skill.Butthingshavechangedinrecentdecades. First,knowledgehasbecomeasrapidlyobsoleteasuniversallyavailable. Second,weliveinanincreasinglyuncertainandvolatileworldwhere,eventhepasthasbecomeunpredictable.And,finally,businesshasbecomemoreglobalanddiverse. Inthisnewnormal,experienceandknowledgearelessrelevant,whiletheabilitiestolearnandadapt,toberesilientandtoconnectwithothersareevermorecrucial. Youshouldlookforcandidateswhohavefollowednon-traditionalcareerpaths. Lookforpeoplewhohaveshownthepenchantforpersonaldisruption Whenmakingseniorappointments,lookfortwothings: Readinessforthejob Readinessisaboutthefitbetweentherequirementsofthepositionandthecandidateatthatparticularstageinhisorhercareer.Itrestsoncriticalcompetenciesandculturalfit. And,inmyview,non-linearjobchangescantellalotaboutseveralpowerfulemotionalintelligence-basedcompetencies—flexibility,adaptability,empathy,organizationalawarenessandrelationshipmanagement—thatdifferentiatestarsfromaverageperformersinnewroles. Potentialforfurtherdevelopment. Disruptivemovescanalsotellyoualotaboutpotentialbecausetheyshowacandidate’scuriosity,insight,inspirationanddetermination,whichinturnindicateasearchforlearningandchallenge.Infact,I’musuallyworriedwhenIdon’tseemajorjobshiftsoncandidates’resumes.Itcouldsuggestthey’renotseekinggrowthandthatthey’renotfullypreparedforaleadershiptransition. Unconventional Resumes
  53. 53. Oneofthemostdramaticexamplesseenonthis,atanationallevel,isthatofJapan. ItisdiscoveredyoungJapaneseexecutiveshadhigherpotentialthantheaverageintheglobaldatabase. WhileseniorJapaneseexecutiveshadlower-than-averagecompetence.Whyweren’ttheseleaderslivinguptotheirpromise? It’sduetotheextremelylimiteddegreeofjob-andcareer-shiftinginJapan,notonlyacrosscompaniesbutevenwithinthem. Ofcourse,there’snothingwrongwithaperfectlylinearcareerifyouarestillproactivelygrowingandlearningandsuccessfullyperformingateverhigherlevelsofcomplexity. ButasNitinNohriaandBorisGroysberghaveshown,Leadersarenotasportableaswemightassume Employers—andrecruiters—knowthis. Soit’simportantforallaspiringexecutivestothinkaboutdisruptioninthecontextoftheircareersandtoconsiderjobchangesthatproveanabilitytomasternewcompanies,sectors,culturesandstrategies. You’llbemeasuredagainstpeoplewhoalreadyhave. Unconventional Resumes
  54. 54. Imaginethatyoulightathousandidenticallightbulbs–samemake Leavethemonuntiltheyburnout Inevitably,onewilllastlongerthanallothers Itisverydifficulttopredictwhichoneitwouldbe Somepeoplethinkthesameistrueofexecutives,includingCEO’s Luckisthereasonafewoutperform?? Yettheyareheldupasshiningexamplesfortherestofthepeople Leadershipisnotbasedonluck JimCollinssaying“Whetheryouprevailorfail,endureordie,dependsmoreonwhatyoudotoyourselfthanonwhattheworlddoesforyou“? Therightleaderscanhelpcompanymakeitsownluck. ThenthequestionishowtoseparatetheSkilledonefromtheluckyone? GoingbacktoBulbanalogy,IdentifythebestCEO’s,Managers&staffwithoutburningthroughthemall? Light bulbs & CEO’s-(1/2)
  55. 55. Firstneedtoconsider Intelligence,Values,Keyindicatorsofpotential,EI,Portability AsperEgonZehnderthereare8Leadershipcompetencies StrategicOrientation–Thinkinglong-term&outsideone’sownarea.Requiresbusinessawareness, criticalanalysis&conceptualizationofinformationinawaythatdefinesthenextsteps.Highperformerschallengethecurrentdirectionandproposenewlong-termdirection. Marketinsight-Understandingthemarketinwhichthebusinessoperates,includingthecompetition, suppliers,customerbaseandregulatoryenvironment.Highperformerssegmentthemarketandanticipatewhereitwillgo,basedonunderstandingthedriversandthecompetition. Resultsorientation-Focusingondelivering&improvingmeasurablebusinessresults.Highperformersimprovethewaythingsaredonebasedonathoughtful,calculatedapproachtorisk. Customerimpact-Servingandbuildingvalue-addedrelationships.Highperformerscultivaterelationshipsandanticipatethecustomers’needsfromtheirownperspective Collaboration&Influencing-Workingwithandinfluencingthoseoutsideone’sfunctionalareatocreateapositiveimpactonbusinessperformance.Highperformersfacilitatecollaborationandpartnerships. DevelopingorganizationalcapabilityDevelopingthelong-termcapabilitiesofothersandtheorganizationasawhole.Highperformersprovideconstructivebehavioralfeedbackinalong-termcareercontext. TeamLeadership-Buildingeffectiveteamsinone’simmediateorganization.Thisappliestovirtualorcross-functionalteams,whetherornotthereisaformalleader.Highperformersbuildempoweredteamsthatcandevelopanddeliverongoals. Changeleadership-Transforming,aligningandenergizinganorganization.Highperformerscreatechangeleaderstopropagateanewmessage Light bulbs & CEO’s-( 2/2)
  56. 56. Outstanding Vs. Average
  57. 57. Globalizationmakestheworldflat–Culturaldifferencesstillabound. Howtoread&assesspeoplefromdiversebackgrounds? Doesittakedifferentabilitiestoleadsuccessfullyindifferentcountries? Canwetransplantpeoplefromoneculturetoanother? HowtopreserveCompany’sEthosacrossmarketswhilestillacknowledginglocalcustomers? Nationalcultureshavedistinctvalues,whichinturncreatedifferentbehaviors. Reading People around the World –(1/2) Therearemanywaysofmappingthese,butthemodeldevelopedby………….
  58. 58. ModeldevelopedbytheDutchResearcherGeertHofstede Powerdistance Reflectswillingnessofweakermembersoforganizationstoacceptanunequaldistributionsofpower. ItisquitehighinLatinAmerica,Africa,Asia&theMiddleEast ItisverylowinAnglo&GermanCountries Individualism Measuresthedegreetowhichthepersonisdistinguishedfromthegroup NorthAmerica&Europearehighindividualistic. Asia,Africa&LatinAmericahavemuchstrongercollectivisticvalues UncertaintyAvoidance Indicatestoleranceforambiguity ItisquitehighinLatinAmerica,Manysouthern&easternEuropeancountries&Japan& lowerforAnglo,Nordic&ChineseCulture Masculinity Scoresthedistributionofrolesacrossgenders Japan&SeveralEuropeancountriesrankashighlymasculine,whileNordiccountriesaremuchlessso. Long-termOrientation Whetherpeoplefocusondistantratherthanimmediateoutcomes. ItishighinEastAsia,moderateinEurope,andlowintheAnglocountries,Muslimworld& LatinAmerica Reading People around the World-( 2/2)
  59. 59. 4. The Bright Future Surroundingyourselfwiththebestdoesn’tstopatselection. Yourstarsneedtherightintegration,development, coaching,andpromotionifyouwantthemtotrulyshine.
  60. 60. InUSAalongmorethan1,00,000peoplearewaitingforthebodypartstheyneedtolive-buttheyalsofaceasignificantchanceoforganrejection,sincethebody’simmunesystemisbuilttofightoffanyforeignpresence. Whennewpersonjoinsyourteam/takesanewrole,therearesimilarthreatofrejections-strategiesforsuccessarethesame. Imperativesforsuccessfulhire Tofindtherightpeople(Healthyorgans) Ensuretheyfitintoyourorganization(compatibility) Properlysupporttheirintegration Encouragethenewpersontomeetwitheveryonewhowillplayaroleintheirsuccess Outreachshouldbeinfivedirections Up(toyou&otherbosses) Across(topeers) Down(Tosubordinates) Out(toclients) In(topersonalcontacts,familymembers&friends) Accelerated Integration
  61. 61. SayingbyLyleSpencer-“Youcantrainaturkeytoclimbatree,butI’dratherhireasquirrel” FindSquirrels–thatispeoplewhoseexperience,knowledge&skillsmakethemperfectlysuitedfortherole Havingsaidthisdon’tdiscounttheturkeysthatshowpotential-withrightsupport, somecanindeedlearntoclimbasfar&asfast. Whentrainingpeopleinyourteamtodobigger&betterthecompetenciesrequiredare: StrategicOrientation Marketinsights Resultsorientation Customerimpact Collaboration&Influencing Developingorganizationalcapability Teamleadership Changeleadership AlsoconcentrateonEI–SelfManagement,Relationshipmanagement Teaching a Turkey to climb a tree-( 1/2)
  62. 62. ToDeveloppeoplearoundyou Firstmakesuretheyreallywanttoimproveandhaveastrongvisionofthedesiredfuture. Helpyourpeopleobjectivelyassestheirstrengths&areasthatneedimprovements. Findthegapsbetweentheir“Realselves”andtheir“ Idealselves”–360degreefeedback Developalearningagendaoractionplantoclosethosegaps.-Highlyfocused&practical Don’ttrytochangetoomuchatonce. Encouragepeopletoworkonspecificbehaviors&setincrementalgoals Encourageyourlearnerstorelentlesslypracticetheirnewbehaviors Teaching a Turkey to climb a tree-( 2/2)
  63. 63. As a leader who wants to be surrounded by the best, you need to get your people inspired about improving themselves, especially when it comes to Emotional Competencies-to understand where they stand and where they fall short of ideal; to develop a cleverer change plan; and to persevere in practice. Turkeys can’t learn to climb tress all by themselves Teaching a Turkey to Climb a Tree
  64. 64. JapaneseProfessionalshadhigherpotentialthantheglobalaverage,butlowercompetence. Greatrawmaterial,butapoorfinalproduct. Japanflawedrefinementprocess. Country’seducationalsystems&culturegiveitsmanagersajump-startintheircareers,butlacksdevelopmentalprocessthereafter. Givingpeoplebiggerjobswithfanciertitles&largersalarieswon’tmakethembetter.Morecomplexassignmentswill. InANZ–employeeidentifiedashighpotentialispromoted,thecompanymakessureitisnotthesamejobonalargerscale. CompanieslikeGE,Unilever&McKinseydothesame Foryourteammembers,youhavetomakesuretheyhaveaccesstosimilaropportunities. SixleadershippassagesdescribedbyRamCharaninLeadershippipeline. ManagingSelftoManagingotherstofunctionalManager;fromFunctionalManagertoBusinessManager;thentoGroupManager;thentoenterpriseManager. Growth from Complexity
  65. 65. Potential should trump seniority and that-when it comes to the jobs that help leaders grow most-complexity always beats size Growth from Complexity
  66. 66. Highgrowthcompanieshadexecutiveswithhigherratingsinall8keyleadershipcompetencies. Firstone–drivingperformancethroughCustomerimpact Secondone–Collectivecompetencymattersmorethanindividualstars Thirdone–CompanieswithdifferentstrategiesexcelledwithdifferenttypesofExecutivesatdifferentlevels. Lessonfromthis Focusondevelopmentalefforts Understanding&buildingoneachperson’sspikystrengths. Ensuringthatteammembershaveskillsthatcomplementeachother, makingthewholegreaterthanthesumofitsparts Trainingyourleadersincompetenciesthatmatchtheircareerstageandyourteam,unitororganization’sbroadergoals. Normaltemptationistotrytomakeeveryonegoodateverything,butitisfool’serrand,becauseitrequiresahugeamountoftime&investmenttomakeeveryonegoodateverything. Finding Alignment
  67. 67. As a Leader you should be disciplined about aligning your people development practices with your situation & goals. Aim to cultivate a balanced team & to build everyone’s unique strength to the highest levels of mastery Finding Alignment
  68. 68. Capuchin Monkeys & Equal pay
  69. 69. TEDtalks–FransDeWall TwoCapuchinmonkeysarekeptinside-by-sidecages. Eachmonkeyisgiventhesametasktocomplete:handingtheexperimenterarock.Their“pay”isasliceofcucumber. Thefirsttimeamonkeycompletestherequiredtaskheisrecompensedwithasmallchunkofcucumberandeatsitwithoutakerfuffle. Butwhentheexperimenterstartspayingoneofthemonkeysingrapes(whichthemonkeyslikebetterthancucumbersandisobviouslyregardedasabetterpay),themonkeywhowasbeingpaidincucumbersgoesbananasandprotestsovertheunequalpay. Heditcheshissecondchunkofcucumberatthescientistthenpoundsthetableandrattlesthewallsofhiscageinprotestofthepaydisparity. Mr.deWaalsaidifbothmonkeysgetcucumberasarewardtheyarehappytorepeatthetaskupto25times. ‘Butifyougiveonegrapes,whichisafarbetterfood,thenyoucreateinequitybetweenthem,’Mr.deWaalsaid. Equal work deserves Equal pay Capuchin Monkeys & Equal pay
  70. 70. Whenitcomestopeople–toattracting,retaining&motivatingthem-payisalsoimportant. Peopleexpecttobeequallycompensatedfortheworktheyprovide. Wearedrivenby3essentialthings Autonomy-thefreedomtodirectourlives Mastery-Thedesiretoachieveexcellenceinwhatwedo Purpose-Theknowledgethatwhatwedoisinserviceofsomethingbiggerthanourselves Moneywillnevermotivatethewrongpeopletodorightthing. Incentivizealltherightpeopleyouhavepickedwiththeopportunitytoplayindependentrolesonyourteam,tomastertheirskills,andtopursuebroaderteam,organizationalorsocialgoals. Capuchin Monkeys & Equal pay
  71. 71. 5. Teams That Thrive Thebestgetevenbetterwhentheyworktogether.Asaleader,itisyourjobtobuildadiverse,effective,committedgroupcapableofachievingcollectivegreateness.
  72. 72. In1990’sworkingintheBuenosAiresofficeofEgonZehndertheirArgentineexecutivesearchpracticesoared,recordingthehighestpercapitafinancialperformanceinthewholefirmforfiveconsecutiveyears. Butweallknowwhathappenedin2001.Bytheendoftheyear,Argentina’seconomyhadcollapsed. Itwasthelargestsovereigndebtdefaultinworldhistory,andGDPfellbysome30%coupledwitha300%currencydevaluation. Over12days,fivedifferentpresidentstookcontrolofthecountry.Onebanklostmoremoneyinafewweeksthanithadaccumulatedoverthepreviouscentury. Therewerecompanieswithlosseslargerthantheirsales,andonemonththenumberofnewcarssoldinthecountrywaslowerthanthenumberofcarsstolen!Asyoucanimagine,thatwasnotaneasytimeforme.Nooneintheirrightmindwaslookingtohireasearchconsultant. AssoonasIfinished,oneofourDutchpartners,SikkoOnnes,stoodupandsaid:“Claudio, ifIunderstandwhatyouareimplying,youaretotallywrong.Ourpartnershiphasbenefitedfromtheextraordinarycontributionofyourofficeforwelloveradecade.Nowit’sthetimeforustosupportyou.YouronlyjobistogobacktotheBuenosAiresofficeandtelleverysinglememberoftheconsultingandsupportstaffthattheyallhaveourfullandunconditionalsupport.” Thewholegroupthenstoodupandapplauded.ItriedtothankSikko,butIcouldn’tbecauseIwasintears.WhatIfeltthen,frommycolleagues,wasunconditionallove. A Culture of Unconditional Love
  73. 73. ThankstoEgonZehnder’scorporateculture,it’ssomethingIgetatworkeverysingleday,andit’swhatencouragesmetogivemyabsolutebestinreturn,nowfor28years.Anyfirmthatwantstonotonlyhirethebesttalentbutalsopullthemtogetherintostrongandlastingteamscan’tdosowithoutfosteringacompellingandinspiringculture.That’showyouovercomechallenges,andkeepyourmissiongoinginyourabsence. Allseriousresearch,allrespectedbusinessthinkers,andallgreatleadersconfirmthispoint.AsPeterDruckerputit,“cultureeatsstrategyoverbreakfast”.JusttakealookatSouthwestAirlines,thecompanywhichsawthegreatestvalueexpansionintheS&P500between1971and2001.HerbKelleher—itsCEOfor35years—oncesaid: “Givenenoughtimeandmoney,yourcompetitorscanduplicatealmosteverythingyou’vegotworkingforyou.Theycanhireawaysomeofyourbestpeople.Theycanreverse- engineeryourprocesses.Theonlythingtheycan’tduplicateisyourculture…Doyouknowthedifferencebetweenstrategyandculture?Well,whenNapoleonwasinParisinaroomwithallhisgeneralsaroundatable,discussinghowtoattackRussia,that’sstrategy.ButwhatmakesamillionmenmarchtoMoscow,thatisculture!” Ofcourseyoustillneedtohireoutstandingperformerswithgreatpotential;appointthemtotherightroles;identify,retain,motivateanddevelopyourbrighteststars;andbuildgreatteamsfitforthepurpose.Butyoucan’tmakethemistakeofignoringculture.Ifyoudo,you’llachieveverylittle,anditwon’tlastlong.Yourpeoplewon’tgoasfarastheycould,ortheywillleave. A Culture of Unconditional Love
  74. 74. Twobasiccompensationmodels Eat-What-You-Kill–inwhichpeoplepaydirectlyreflectsthebusinesstheygenerateandtheworktheyproduceforcustomers.–Equitable&economicallylogical Lock-Step-inwhichpeople’spayisunrelatedtotheirpersonalcontribution&insteadvariesaccordingtosomepre-establishedformulaerelatedtoyearsofserviceetc. Lock-stepisnon-existentinUSAfirms Professionalservicefirmsfollowaneat-what-you-killsystem. FewLock-steps-LawfirmWatchtell,Lipton,Rosen&KatzandMckinsey Thekeytoout-goingtheeat-what-you-killmodel–rigorouspeopleprocess&strongculture Lone Wolves Starving
  75. 75. 6. The Better Society Oncewehaveallsurroundedourselveswiththebestinourownpersonal&professionallives,whynotextendthepracticetoourorganizations, institutions&nations?Thatiswheregreatpeopledecisionsmatterthemost.
  76. 76. BestPracticesforCEOsuccession StartPlanningearly,ideallywhenCEOtakescharge,butneverlaterthan3to4yearsbeforeheorsheexpectstoleave Create&maintainaclearoutlineofwhatyouneedfromtheCEOrole,informedbytheBoard&detailingalltherequiredcompetencies, Regularlyassessyourleadersagainstit. Buildyourinternalbench–identifying,assessing&developingpotentialCEOcandidates&benchmarkingthemagainstthebestexternaltalent. Lookexternallyformorecandidates-Plannedsuccessionapproach Considerbothinsiders&outsiders Executivesearchfirmcanaddgreatvalueinthis. Boardtoconductperiodicemergencysuccessiondrills-since50% ofCEOsuccessionsareunplanned. Robusttransitionprocess Russian Roulette at the top
  77. 77. Withouttherightpeopleonthetop&therightmixofboardacompanycannotsucceed. Clearstrategy,Alignmentoftheboardoncriticalchallengeslikethecompanyshouldgopublic,pursueabigtakeoveroramerger,ormakesmaller,moretargetedacquisitionsetc. Knowledgeoftheboardabouttheinsideknowledgeofthecompanyiskeytothequalityofboardcomposition. Unexploitedtalent–Womenontheboard Atrueleadingboardshouldmovefromcompliance&certificationtotrueLeadership,addingrealvaluethroughtheirvision&judgment. Getrightpeopleontheboard–createaprofileoftheidealcandidates Thereisnoneedforlineexperienceorexposureindustry-whatisneededisexceptionalprovencompetenceinkeyareasthatotherboardsmembersdon’thave. Healthymixofinsiders,whoprovidecriticalcompanyknowledgetotheboard,andoutsiderswhoofferdifferentperspectives.Leveragecultural& genderdiversityfortheteamtobeeffective True Leading Boards.. (1/2)
  78. 78. Boardcandidatesshouldalsobeformallyassessednotjustonexperienceandculturalfit.Butalsoonfourspecificboardcompetencies. Twoarerelatedtojudgment Resultsorientation(Astrongfocusonlong-termvalue&awillingnesstochallengethestatusquo) Strategicorientation(anabilitytohelpshape&implementcorporatestrategybyraisingkeyissues&providingrelevantadvice&counsel) TwoothersreflectValues&Behavior Collaboration&Influencing(anopennesstoteamwork&robust, rigorousdebate) Integrity&Independence(adesiretotakeprincipledaction,evenatpersonalrisk,forthegoodofthecompany). Prepareyourbestpeopletobegreatdirectorsbytakingonworkthateitherinvolvesmacrostrategy&otherbroadissues. InUSAalonetherearemorethan12,000publiccompaniesofferingmorethan100,000opportunitiesforboardservice. True Leading Boards.. (2/2)
  79. 79. Companiesneeddifferenttypesofpeopleleadingthecharge,dependingonwheretheystand. Inearlystagestocreateavisionofsustainability–Strongchangeleadership&influencingskills FromVisionintoactionsuccessfully&profitably–Resultorientation& commercialacumen. Fromthistoprogressionandproactivesustainability–leadersneedoutstandingstrategic&commercialorientationtoanticipatefutureneeds- drivemotivation&long-termrelationship Sustainabilitybecomesavirtuouscircle. Whenyoupursueit,yougetthesmartest,mostcreative,passionate& principledpeople. Thesepeoplecreateasharedvalueforall Thepeopleshouldworkforthecompanybecausethelovesitsvalues& thesenseofempowermenttheyget. AsperChouinard–“Hiregreatpeopleandleavethemalone“ Sustainability-the Virtuous circle
  80. 80. Greatpeopledecisionsfirststartwithawidepoolofcandidates–insiders&outsiders. Thesecondimportantaspectismakinggreatpeopledecisionsistocarefullyassesscandidatesagainstthemostrelevantcompetenciesfortherole/job. Partofthechallengeistochoosepeoplewhoaresimilar&familiarandmakeusfeelcomfortable. InthebookIndispensable:WhenLeadersreallymatter–varietyofcasestudiesfromAbrahamLincolntoWinstonChurchilltoshowhowasingleindividualattherightplaceintherighttiecansaveordestroyacountry. Twocategoriesofleaders FilteredLeaders–mostlyInsiderswhosecareerfollowedanormalprogression UnfilteredLeaders–Wereeitheroutsiderswhohadlittleexperienceorgottheirjobthroughexceptionalcircumstances. Highlyfilteredleadersachievedlittlechange Unfilteredoneshadthemostimpact. Electing Country Presidents
  81. 81. Singapore & Jamaica
  82. 82. Singapore&Jamaicawereidenticaltwinsuntil1965. Bothcountriesaresubtropicalislandsofsimilarsize&population. Bothveryweakeconomicswithlowpercapitaincome. 50yearslater–SingaporehasbecomeoneofthemostcompetitivenationsinWorld-Percapitaincome>$60,000-4thhighestintheWorld Jamaicaremainsathirdworldstate,withapercapitaincome<$7,000.- 101stPlace. Singapore–extraordinaryevolution-startedwithasabenigndictatorship&evolvedthroughthedecadestoamuchmoreopen&democraticcountry. Nonaturalresources-Itthrivesbecauseinvestedintalentpassionatelywithconsistencybothinprivate&publicsector. Itwasduetotheextraordinaryleadershipwithaclearvision-Mr.LeeKuanYew. Hebroughtbestineachyear’scropofgraduatesintogovernment. Hedidnotlookatjustacademicresults,butalsoimagination,qualityofleadership,dynamism-especiallycharacter&motivation Singapore & Jamaica-(1/2)
  83. 83. Infewyears Publicsectorinstitutedmassivescholarshipprograms Rigorousassessmentpracticesfocusedonpotential. Extensivetraining&development Exemplaryrotation&milestonescourses. Outstandingpromotions,recognition&salarybenchmarkingpracticestoprivatesector ResultedinHigh-Quality,forwardthinkingpublicleadership–madeSingaporemoreattractivetoPrivatesector&talent. InvestingintopTalent,Singapore’spolitical&publicleadershavecreatedasocial&economicmiracle,overcomingboththecountry’sdifficulthistory. Allothernations,includingthosethataremuchfavored,shouldstrivetodothesame. Singapore & Jamaica-(2/2)
  84. 84. The Pope
  85. 85. ThePopehasmorethan4,000bishopsreportingtohim,whointurnleadsome400,000priests,whotendtomorethanonebillionfollowers.I Insuchanorganization,fewthingsaremoreimportantthanmakinggreatappointments. ChoosingasuccessortoPopeisagreatchallenge. Onepositivesignisthepope’swisechoicetoretireat85,acknowledgingthathenolongerhasthe“strengthofmindandbody”todothejobinsucharapidlychangingworld. Ageinevitablyerodesdecision-makingskillsandparticularlythefluidintelligencethatenablesustosolveproblemsnotencounteredbefore. Appointinghissuccessorisamuchmorecomplicated&challengingdecision. Thepope’sjobisvastlydifferentthantheonesdonebycardinals,justastheCEOroleisnothinglikethoseofC-Levelexecutives. Thepopeisaloneatthetop,withnopeersandnoday-to-dayboss(otherthanGod,whohappenstobeamasterdelegator). How to Pick up the next Pope-( 1/3)
  86. 86. Hehastodecideonallsortsofcomplexissues,inanvolatileglobalenvironment, facingenormouspressure.Meanwhile,thereisafixedpoolofcandidates:thecardinalswhomakeuptheselectioncommittee.(It’sanunusualprocessinwhichtherecruitersarethepotentialhiresandthedirectreportschoosetheirownfutureleader!) Butthecardinalsneedtoconsidertherightcriteria. ThreequartersofCatholicsliveinthedevelopingworld,whiletwo-thirdsoftheelectors(andcandidates)comefromEurope.Butthisisasideissue.Whatmattersarethefactorsthatbestpredictleadershipsuccess. ConsideringcandidatesforCEOroles,myprimaryconcernistheperson’spotentialtoperformwellinlarger,morecomplexroles.Therearethreecentralindicators. Thefirstistherightmotive. Doesthecandidatedisplaytheproverbialparadoxicalblendoffiercecommitmentanddeeppersonalhumility? Ishereallycommittedtobuildinglastinggreatnessandtomakeourworldabetterplace,fortrulyselflessreasons? Whilemostcardinalsshouldhopefullysatisfythiscriterion,ofcoursesomewilldoitmorethanothers How to pick up the next Pope-(2/3)
  87. 87. Fourkeyleadershipassets: Curiosity, Insight, Engagement,and Determination. Doesthecandidateproactivelyseeknewexperiences,ideasandknowledge, solicitingfeedbackandstayingopentolearningandchange? Canhegatherandmakesenseofavastrangeofinformationanddiscovernewinsightsthat,whenapplied,transformpastviewsorsetnewdirections? Ishegoodatconnectingonanemotionallevelwithothers,communicatingapersuasivevisionandhelpingothersstayconnectedwiththebroaderorganization? Doesheseekself-awareness,demonstrateempathy,andinspirecommitment? Finally,willhehavethestrengthtopersistinthefaceofdifficultiesandtheabilitytobouncebackfrommajorsetbacksoradversity? Last,butnotleast,Ilookatthecandidate’sabilitytomakegreatappointments. ThisisevenmoreimportantintheCatholicChurch;givenitsflatstructure,hugereachandgeographicspread,delegationisessential. “Themostimportantleadershipskillis,clearly,theabilitytomakegreatpeopledecisions,toputpeopleintherightseatsandtorigorouslytakethemoffthebuswhenyouhaveto.” How to pick up the next Pope-(3/3)
  88. 88. Take Away It'saclichéthatitis"people"whomakethedifferencewhenitcomestotopcompanies,butlikealotofcliches,it'sprobablytrue. AsSouthwestAirlines'HerbKelleheroncesaid: "Givenenoughtimeandmoney,yourcompetitioncanduplicatealmosteverythingyou’vegotworkingforyou.Theycanhireawaysomeofyourbestpeople.Theycanreverse-engineeryourprocesses.Theonlythingtheycan’tduplicateisyourculture.” AsauthorClaudioFernández-Aráozmakesclear,thewaytostartcreatingthatgreatcultureis"withyou,theleader,usingitasafilterforhiring",andthisbookaimstohelpinthatprocess. Asheexplains,thisisunsurprising.WearestillhardwiredtomakedecisionsaccordingtofourFs:Flight,Fight,FoodandFornication.Incavemantimes,whendeciding"CanIeatthatthingorisitgoingtoeatme?",relyingonotherswasimportant,andlookingforsimilaritiesnatural.Butwhatwasonceaneffectivestrategyisseriouslylimiting.Weappreciateandtrustpeoplesimilartous,yes, but: “Youcannotbesuccessfulinahighlyconnected,cross-cultural,globally-mindedenvironmentifyouseeksupportonlyfromothersexactlylikeyou.Youneedtosurroundyourselfwithpeoplewhohavediversebackgroundsandcomplementaryskills,andwhoproperlychallengeyou.”
  89. 89. To Sum up… Recognizingyourfailings Understandingexternalchallenges Assessingandselectingthebest Helpingyourstarsshine Fosteringcollectivegreatness Makinggreatpeopledecisionswheretheymatterthemost. “ Hire for Potential & Just not experience
  90. 90. Mail your comments to ramaddster&gmail.com

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