harry debes new reality
DESCRIPTION
Harry Debes, CEO of Lawson Software Keynote for ShareOn 2010 Leadership ForumTRANSCRIPT
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Values, Vision, Rocks
Harry DebesDecember 2007
Old Reality / New RealityHow Good Leader/Managers Adapt
Harry DebesFebruary 2010
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I met the CEO of Garret Manufacturing when I was 17
Born or Made ?
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Old Reality 1950’s – 1980’s
The Industrial revolution changed production from small workshops to large scale manufacturing
Owners of the factory often served as managers
They viewed the organization as a machine and the employees as any other tool.
The theory of “Scientific Management" focused on improving efficiency.
Theory “X” management style
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Old Reality 1950’s – 1980’s
Scientific Management, Command & Control Leadership
Specialization
Clear separation between managerial functions and employee activities
Strict rules and procedures
A strong correlation between income and output
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Old Reality 1950’s – 1980’s
For Employees Joined a company and stayed for life
Worked your way up the chain of command
Children worked in the same company
Paper, typewriters, memos, letters, filing cabinets, secretaries, suits and ties
Gold watch when you retired after 40 years
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New Reality 1990’s – Present
Technology – Computers, Internet ,
Communication, Digitization, Virtualization
Globalization, Multinational Companies, Shared Standards, everything is Integrated
Knowledge workers – newfound power of individuals to collaborate and compete
Work is being done where it is most efficient offshore, near-shore or at home
Hierarchies are being flattened
Everything is Faster
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Changes in working environment
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New Reality 1990’s – Present
Office Space is being downsized
Space reduced by more than 60%
Mobile workers
Virtual teams
Very few permanent offices or even desks
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New Reality 1990’s – Present
For Employees
Mobile devices, telecommuting, virtual & matrixed teams Family, lifestyle and health are major considerations Company loyalty is limited (I could get out-sourced) Work where Ethical and Social responsibility are important Expectation of training and skills development High expectations of advancement and rewards Want a voice in decision making Plan to retire early
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Accepting change is hard
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Charles Darwin on Change
It is not the strongest of the species that survive, nor the most intelligent …… but the one most responsive to change.
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How the Leader/Manager Adapts
1. Establish Trust through Core Values and Integrity
2. Focus
3. Embrace Diversity
4. Simplify
5. Maintain a Positive Attitude
6. Communicate
7. Own the Results
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1. Establish Trust
High
Integrity
Who you are rings so loudly in my ears that I cannot hear what you are saying.
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Core Values? What Core Values ?
WHAT you do is importantShow me the Money Greed is Good
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The New Importance of Core Values
WHAT you do is as important as HOW you do it
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How do 4000 people in 35 countries make the right decisions ?
Decisions are easy when Values are clear.
The Importance of Core Values
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18-month inclusive process to define Core Values
Clear Core Values & Behavioral Expectations
Passion and Commitment
Integrity and honesty in all of our relationships
Teamwork
Personal responsibility for results
A conviction that Simpler is Better
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Imbed the Core Values
Core Values
Living the Values must become a hiring / performance / promotion criteria
Measuring adherence become part of the performance review process
Celebrate and reward adherence, do not tolerate non-compliance
LOTS of communication
– Use symbols, Icons, metaphors, celebrate people who live the values, and many illustrations to communicate the mission, vision and values
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Answer the “Where are we going” question
Many companies are trying to do too much.
Chasing every opportunity, even when it is not right
2. FOCUS
Basic Problem: Lack of Focus
Poor Decision MakingUnhappy CustomersDissatisfied Employees
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Lawson’s Vision and Focus
To be the global ERP leader in each of
our target markets.
We will achieve this Vision by:
1. Focusing our development and go-to-market efforts in our target markets
2. Offering our customers a superior experience
3. Achieving world-class performance in each of our functional disciplines
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Lawson’s Focused Strategy
21
SERVICE INDUSTRIES
EQUIPMENTSERVICE &
RENTALHEALTHCARE
PUBLICSECTOR
FASHIONFOOD &
BEVERAGE
Growth Markets
MANUFACTURING& DISTRIBUTION
INDUSTRIES
STRATEGIC HUMAN CAPITAL MANAGEMENT
General Industries
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3. Embrace Diversity
RaceAgeMinority
Baby BoomersGeneration XMillennials
Respect and become educated about the differences
Rally around your company Core Values
SwedesFrenchGermansDutch
JapaneseChineseIndiansFilipinos
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4. Maintain a Positive Attitude
We cannot change the past.
We cannot change the fact that some people act in a certain way.
We cannot change the inevitable.
The only thing we can do is play on the one string we have, and that is our attitude.
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Maintain a Positive Attitude
Everyone looks to the leader for assurance every day
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Maintain a Positive Attitude
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Basic Finance 100 – 90 = 10
Advanced Finance 100 – 80 = 20
Bad Finance 100 – 105 = going out of business
= no future
= career is over
5. Simplify (the Numbers)
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Basic Financial Questions and Answers
Simplify (some concepts)
QUESTION: How much of a salary increase can we expect this year?
ANSWER: Salary increase = (revenue or productivity increase) / 2
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Basic Financial Questions and Answers
Simplify (some concepts)
QUESTION: I need a new car, a new kitchen, a new TV, a second car, a two week vacation in Mexico, new golf clubs, some cool new clothes. My problem is that I can only afford to do one of these things. What should I do?
ANSWER: Do only one of these things.
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6. Communicate
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6. Communicate
Written - memos, manuals, Newsletters, e-mail, blogs
Verbal - phone, audio-conferences
Face to Face - meetings, web-conferences
Explain – what, why, who, when
Enable Feedback – Engagement Surveys, 360 Feedback
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6. Communicate – in new ways
Cicso Virtually Eliminates Internal Travel
11 February 2009 –
…internal travel and meetings are redirected to Cisco's various virtual meeting technologies …including TelePresence, WebEx and standard audio-video conferencing.
The efforts have slashed Cisco's travel expenses from a "run rate of $750 million to the current run rate of approximately $350 million," CEO John Chambers said last week during a conference call with analysts.
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For any initiative to take hold, leaders must be involved and act as a role model. This involvement cannot be delegated.
Eg. Goal setting:
Advisor sets high goals and expects people to deliver
Owner/Leader/Manager sets high goals, shows people how to execute, inspects progress, personally helps to achieve the objective and owns the results.
7. Own the Results
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Leadership traits and skills can be developed
Conclusion
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Adapting to the Next Reality
1. Establish Trust2. Focus3. Embrace Diversity4. Simplify5. Maintain a Positive Attitude6. Communicate7. Own the Results
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Old Reality -- Summary Management style
– Top-down
Authority
– Centralized
Decisions
– Made at top of the hierarchy
Communication pattern
– Top-down – from the center outwards
– Very little bottom-up communication
Communication content
– Mainly instructions
Critical issue: How to tell employees what to do efficiently and consistently
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New Reality - Summary
Management style
– Collegial, educational
Authority
– Pushed downward and outward
Decisions
– Made close to the customer
Communication pattern
– Top-down, bottom-up and sideways
– Much more emphasis on listening skills
Communication content
– Mainly values and data
Critical issue: How to instill common values so employees will know what to do and how to do it