Leadership at Every Level

T H E S I X F U N D A M E N T A L S O F S U C C E S S™

STUART R. LEVINE … C U T T O T H E C H A S E and 99 other rules

1Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential

Strengthening Your Leadership Capacityto Achieve Quality Results

in a Pandemic Technology Revolution

February 4, 2010Presented by Stuart R. Levine

2010 Quality FairLeadership At Every LevelUniversity of Minnesota




What in the World is Going On?

• Global and domestic perspective

• Impact on your mission and culture

• Critical strategic focus to control destiny




Today’s Goal

• Study and understand the big picture

• Embrace best practices during challengingtimes

• Learn skills and tools to increaseeffectiveness




Global/Domestic Realities

• Three major transformations shaping political,economic and world events

– The emergence of China– Shifting of demographics of Western Civilization– The fundamental restructuring of American

business• Profound implications for American business leaders

and owners, our culture and way of life driven bytechnology

Source: Global intelligence briefing by Herbert Meyer delivered to CEOs at the WorldEconomic Forum in Davos, Switzerland 2008




The Emergence of China

• In the last 20 years, China has moved 250 millionpeople from the farms and villages into the cities– and they plan to move another 300 million in thenext 20 years

• That’s why China is addicted to manufacturing.It’s essential to put people in the cities to work.

• If the U.S. ever stops buying from China (lowpriced products), they will explode politically; ifChina ever stops selling to the U.S., our priceswill jump




Shifting Demographics of WesternCivilization

• Most countries in the Western world have stopped breeding

• Maintaining a steady population requires a birthrate of 2.1;Western Europe birthrate currently stands at 1.5 or 30%below replacement. In 30 years, there will be 70 to 80million fewer Europeans than there are today.

• The current birth rate in Germany is 1.3 and Italy and Spainare even lower at 1.2. At that rate, the working agepopulation declines by 30% in 20 years, which has a hugeimpact on the economy.

• When you don’t have young workers to replace the olderones, you have to import them.


… C U T T O T H E C H A S ESTUART R. LEVINE and 99 other rules


Shifting Demographics of WesternCivilization

• In Japan, the birthrate is 1.3. As a result, Japan will lose upto 60 million people over the next 30 years. Japan refusesto import workers. Instead, they are just shutting down. By2020, one out of every five Japanese will be at least 70years old.

• Nobody has any idea about how to run an economy withthose demographics.

• The U.S. birth rate is 2.0, just below replacement. We havean increase in population because of immigration. TheAnglo birth rate is 1.6 (same as France) while the Hispanicbirth rate is 2.7.

• In the U.S., the baby boomers are starting to retire inmassive numbers. This will push the elder dependencyratio from 19 to 38 over the next 10 to 15 years. This is notas bad as Europe, but still represents the same kind oftrend.




Shifting Demographics of WesternCivilization - Implications

• Young people are delaying marriage and having a family

• Once this trend starts, the downward spiral only gets worse

• These countries have abandoned all the religious traditionsthey formerly held in regard to having families and raisingchildren

• Western civilization seems to have forgotten that everyprimitive society needs kids to have a healthy society –children are huge consumers who later become taxpayers




Over the next 10 years, the world’s population is expected to growby almost 20 percent, primarily in emerging market regions.

Source: IBM Institute for Business Value analysis, “The World at Six Billion,” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,: BBC, April 15, 2008.




Social Communication Impact

• Took 100,000 years for first Billion people to be connected onInternet

• Took 6 years for the next Billion to be connected• 70,000 new people linking in every day• Today, one half of the world’s population is linked• Creating a fundamental shift in the way society and the world

works• Word-of-mouth as a trusted source of information• Limited control over social networks, blogs, wikis and mashups• Worldwide mobile phone subscriptions forecast to reach 5.3

billion by 2013 up from 3 billion currently (April, 2009, IBMGlobal Business Services )

Source: Jump Point by Tom Hayes (McGraw Hill, 2008)




Connecting with New Markets andCustomers

• Consumers are increasingly demanding of the products they use andconsume

• More knowledge about products and alternatives• Less brand loyal• Exploration of segments and regions beyond traditional markets• Need to build deep understanding of motivations and influencers of

perceptions and purchasing decisions• People with limited disposable income can ill afford products that fail to

deliver on value• Organizations with unfocused marketing messages selling stripped

down versions of existing products are unlikely to succeedSource: IBM Institute for Business Value analysis, “The future of the Consumer Products industry (April,

2009)




Positioning for the Future

• Understand new markets and find ways to connect withconsumers

• Understand and sustain consumers in the lower income tierswith appropriate services and products

• Master distribution channels with collaboration and directrelationships with consumers

• Understand where direct involvement in the value chain addsvalue and creates sustainable differentiation




Toyota’s Recall and Reputation

• Recall of 2.3 million vehicles in US– Move from mechanical system to electronic system– Supplier CTS Corporation made pedals and sensors slightly different than

Japanese supplier, who have had no issues– Need to change pedal material based on impact of heat

• 5 million replacement pedals for floor mats that could jamaccelerators

• North American production on 8 models suspended• Delay in timely recall (Tundra pick up trucks – March 2007,

Europe fixed August, 2009)• Toyota’s credibility tarnished and embarrassing loss of quality• How will they handle relationship with customers?




2010 Outlook• 15.3 million unemployed persons (December, 2009)

– Unemployment rate is 10%– “Underemployment” is 17% (November, 2009)

• 2007 – For every one job there were 1.7 applications; 2009 for everyone job there were 6.4 applications

• The Conference Board Consumer Confidence Index® stands at 52.9up front 50.6 in November

– The Expectations Index increased to 75.6 from 70.3 last month– The Present Situation Index, however, declined to 18.8 from 21.2

in November• Real gross domestic product increased at an annual rate of 2.2 percent

in the third quarter of 2009. In the second quarter, real GDP decreased0.7 percent.




US Education Industry Trends

• Higher education is one of the last ones to beimpacted from the digital age

• However, there are many e-education companieswith highly competitive cost models

• Online products are improving rapidly and beingrecognized by business and industry

• Graying of the workforce more pronounced in highereducation

• Budgets for professional development have dried up

Source: Scott Martens, Director, Service & Continuous Improvement, University of Minnesota, 2009




Your Challenging Environment

• Declining resources• Cultural stress and frustration based on

increasing work load and change• Continuing technological revolution• Not enough time• Increasing demands on your

professional and personal life




Reasons to study Charles Darwin andThe Origin of Species

Why it is critical to seek and embracethe discomfort of change?







Reasons to study Charles Darwin andThe Origin of Species

• These turbulent times require adaptation

• There are huge opportunities for you to thrive




Be Flexible

Darwin• Species that survive and prosper are those that adapt

and change in their environment.Your Organization• Responding intelligently to changes in the world gives

you an edge• Smart companies develop agile teams with skills to

change course as necessary• Strike a balance between planning and being flexible• Adjust priorities and be responsive




Challenge Conventional Thinking

Darwin• 19th century scientists did not know what to make of

fossil discoveries• Many believed the bones were from strange

creatures that were too large to get through the doorof Noah’s ark!

• Darwin made the connection that the bones weresimilar to more modern animals suggesting anevolutionary process

Your organization• Listen actively and question deeply




Daring Goals

“Has anybody else done this?

“Isn’t this worth trying?”

Daring goals that will motivate a search forradical new ways of mobilizing and organizinghuman capabilities

Source: Harvard Business Review, (Feb, 2009), Gary Hamel, “Moon Shots forManagement”




Your Focus

• Your Challenges• Your Core Values• Your Ethics• Your Vision• Your Strategy• Your Customer Satisfaction• Your Leadership




Your Challenge

• Strengthen your leadership capacity• Increase your ability to work with resolve• Work smarter for a better professional and

personal life• Continue to work with hope and passion to

identify new opportunities• Continue to learn




The Six Fundamentals of Success ®

• Make sure you add value• Communicate up and down, inside and out• Know how to deliver results• Conduct yourself and your business with

integrity• Invest in relationships• Gain perspectiveSource: The Six Fundamentals of Success by Stuart R. Levine (Random House, 2004)




Define Adding Value

• Increase your capacity to serve your clients• Increase your individual worth as an

employee to increase value of company• Increase value of company by improving

quality for the client• Care passionately about your clients• Improve your skills to keep finding new ways

to add value




Add Value to Your Customers

• Increase agility to adjust to customer needs• Era of entitlement is over• Listen actively• Collect data and analyze it• Innovative ideas move you towards the zone

of hope




Make Communication an Imperative

• Make your communication more purposeful• Every meeting should have a purpose• Start on time, end on time• Establish an agenda• Master the ten-minute meeting• Solicit feedback during the meeting and

afterwards




Deliver Results

• Energy and time management• Understand and align with strategy• Prioritization• Avoid toxic people• Stay positive and passionate• Power of nice vs. baby is ugly• Renew yourself every day• A bottle of wine, a cut flower




Conduct Yourself with Integrity

• Unrelenting set of values• Set the tone by your actions• Ethical values remain the foundation for

success• Respect for yourself and others• The world doesn’t owe you a living• Chance to add value is a privilege• Self-confidence from continuous learning




Invest in Relationships

• Ask your colleagues and team what they think• Establish a relationship radar screen• Face time counts• Seek out the “energy generators”• Share information of value




Gain Perspective

• Setbacks make us stronger• Know when to take a deep breath• Make room for all parts of your life• Get comfortable with not knowing• Nothing or nobody can affect you negatively• Don’t hide your passion




Cut to the Chase

•Think Clearly•Act Effectively•Communicate Directly

Source: Cut to the Chase by Stuart R. Levine (Random House, 2006)




Think Clearly

• Look at the big picture• Make your mission possible• See your customer as a person• Know what’s on your boss’sdashboard




Act Effectively

• Surround yourself with ethical people• Set a good example• Avoid toxic people• Treat others with respect• Act like an owner• Know the burn rate of key resources• Work with a sense of urgency• Deliver on promises




Communicate Directly

• Hostile business environments require morecommunication, not less

• Ask your colleagues and team what they think• Face up to difficult conversations• Resist taking your “emotional temperature’ every

five minutes• Share the good news – and the bad• Establish a rhythm




Communicate Directly

• Face time counts• Do breakfast• Say thank you• Coach your team all day long• Satisfied employees = loyal customers

=bigger profits




Gain Perspective and Find Balance

• Renew yourself every day• Take back the weekend• Know when to take a deep breath• Get comfortable with not knowing• Nothing or nobody can affect you

negatively• A bottle of wine, a cut flower




Thank you! Stuart Levine & Associates LLC 100 Jericho Quadrangle, Suite 111

Jericho, NY 11753 516-465-0800 [email protected]

www.stuartlevine.com

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Leadership at Every Level