AgendaEffective CommunicationChange in CorporationsMyths of Fast Executive ReflexesCommunicating ChangeLeadership equation

Being an effective leader means…

…using the RIGHT mode of communication according to:The message to deliverThe contextThe people you wish to communicate withYour personal strenghts/weaknesses

Choosing the channel

How to effectively deliver the content and get people on board?

… by constructing a compelling story!

An effective story Stories

Personal experiences

Analogies, humor

Must Do’s

People can draw their own conclusion

Followers identify with leader

Enable leaders to reveal their emotions, who they are

Fit the context and the moment

Feel realBe authentic!

-Communicating with care is about more than content, style and storytelling-Timing and pace are essential-“Listen to the notes I don’t play”-2 anonymous case examples

Company APower generation, defence, medical electronics,

consumer durablesConservative strategy, tight financial controls, risk averseRisk aversion made it unpopular with capital market1990’s -> new CEO experienced with radical changeSpeedily set about changing things, left behind risk

averse mentalityNew core values: passion, high velocity, radical outlookBecame a hot stock, employees believed share price could

double2 acquisitions, one for 2 billion, other for 4.2 billion

TORTOISE OR THE HARE???

MARCONI CORPORATIONRapid growth and strong earnings, shares

reached all time high2001: US Tele market faded & delayed

investment in network infra.2nd quarter 2001: 50% fall in operating profitShare price went into free fallCEO and Chairman resigned in Q3Share became valueless & enormous debts

restructured

Company BProfessional services, blue chip, top of the range

brand imageProblems lurk...smaller players entering market,

losing shareSee leader as slow moving and complacentInternal study conducted...recommends new

leadershipYounger partner: experienced with innovative

people processesEngages managers and directors graduallySubcommittees formedToo much talk, consultation and consensus building???TORTOISE OR THE HARE???

COMPANY BCalls to action heard and new management put

togetherRenewing talent base, rebuilding relationshipsProblems not all resolved, but moving in the right

directionSenior people joined from the competitionCommunication of the visions remains vital to

success, but hard work has begunPRICEWATERHOUSE COOPERS Business

Recovery Services

TORTOISE & THE HAREMore gradual and carefully crafted change

processes more successfulHARES will draw more of our attentionSpectacular in the 1990s- still recovering from

the corporate collapses that follow in their wakePerhaps the quiet, moderately paced leaders

have become more popular

The Myth of Fast Executive Reflexes

Driven to show impact fasterFeel need to ‘have all the answers’Defining characteristic of high-profile failuresProfessor Sydney Finkelstein

“Spectacularly unsuccessful people” Wolfgang Schmitt (Rubbermaid) Roger Smith (GM) Dennis Kozlowski (Tyco)

Cease to receive useful feedback or input from others No disagreement Silence

Evolution vs. Revolution

Evenly paced evolution vs. fast paced revolution

Peter Brabeck (CEO Nestle)Define successful characteristics (and keep them)Allow gradual, continuous evolutionDramatic change can be traumatic, disruptive, and

indicative of leadership failure(through lack of preventative action)

Brabeck on Leadership

Compares leading a complex global organization to conducting an orchestraPractice and learn beforeScrutinize, question, talk, confrontExcite others to follow youBe authentic rather than imitateDesire perfectionConstantly balance priorities

Guidelines for Communicating Change

1. Communicate sufficient pressure for change2. Communicate a clear and compelling vision3. Signal where the capability challenge lies4. Communicate actionable steps5. Provide effective rewards for those who

follow

Communicate sufficient pressure for changeCommon failure- leaders often feel the need

to push the pace before anyone has realized there is even a need to move

Too much pressure people feel overwhelmedRelentless pressure leads to burn out,

exhaustion, failureInstalling urgency boredom, loss of energy,

cynicism

Communicate a clear and compelling vision

Effective vision delivers an attractive picture of the future that draws people in support of its achievement

Effective vision has staying power

Effective vision is communicated with persistence, repeated messaging and imaginative channels

Signal where the capability challenge lies

Performance

Potential

High

High

Low

Low

Communicate actionable steps

Make connections between daily work and the overarching purpose- help make sense of what they do

Get the vision started quickly and recognize that you can’t make it in one leap

Create slow steps with clear and gradual progression

Provide effective rewards for those who followWhat’s in it for me?

What gets measured gets done

Achievement of short-term, clearly measurable targets can distract more important long-term objectives

Summary…

Leadership Equation

L = f {l1, l2, gm, sE,e}

traits behavior group members situation

Communicating ChanceTortoise and Hare

Executive Myths

Communication

Communication