““Transformation Into a Transformation Into a Knowledge-Based Economy”Knowledge-Based Economy”

Michael Andrew, EtisalatMichael Andrew, Etisalat

Author of How to Think Like a CEO and Act

Like a LeaderPractical Insights for Performance and ResultsPractical Insights for Performance and Results

December 20, 2010December 20, 2010

ObjectivesObjectives

Insights for the UAE to Grow and Prosper in Insights for the UAE to Grow and Prosper in the Knowledge Economythe Knowledge Economy

How Senior Leaders Must Think and Act to How Senior Leaders Must Think and Act to Make it HappenMake it Happen

UAE VISION 2021UAE VISION 2021

“We want to be among the best countries in the “We want to be among the best countries in the world by 2021. In a strong and safe union, world by 2021. In a strong and safe union, knowledgeable and innovative Emiratis will knowledgeable and innovative Emiratis will confidently build a competitive and resilient confidently build a competitive and resilient

economy. They will thrive in a cohesive society economy. They will thrive in a cohesive society bonded by its identity, and enjoy the highest bonded by its identity, and enjoy the highest

standards of living within a nurturing and sustaining standards of living within a nurturing and sustaining environment”environment”

If Every Company (Or If Every Company (Or Government) Has a Winning Government) Has a Winning Vision, Then Why Doesn’t Vision, Then Why Doesn’t

Every Company (or Every Company (or Government) Win?Government) Win?

It’s not what the vision is, it’s what the vision does

Peter Senge – Former Director of the Center for Organizational Learning at MIT Sloan School of Management

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Do, or do not. There is no try – Yoda

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Why predict the future when we can create it?--- GE

VisionVisionis about foresight....andis about foresight....and

ExecutionExecutionwhich leads towhich leads to

Realizing UAE’s Realizing UAE’s Aspiration for 2021Aspiration for 2021

Results with Results with IntegrityIntegritywhich leads towhich leads to

LeadershipLeadershipis aboutis about

Do the Do the Right ThingRight Thing

Do the Do the Wrong ThingWrong Thing

Do it Do it WellWell

Do itDo itPoorlyPoorly

XX XX

XX

Transforming to a Transforming to a Knowledge EconomyKnowledge Economy

Does senior leadership have a clear and broadly shared understanding of how global competitiveness and the global economy may be different 5 or 10 years from now?

Are we looking farther out more than other countries?

Is the viewpoint about the future reflected in short-term priorities and actions?

Are we adapting our management/leadership styles to get the MOST out of knowledge professionals?

Transforming to a Transforming to a Knowledge EconomyKnowledge Economy

What will give us the Competitive Advantage - “UNIQUE” and “DIFFICULT TO REPLICATE?”

Will we set new rules of economic transformation or will we follow others? Will we compete within an existing industry and global economic structure or will we compete by shaping the future? Do you want to be the “author” of this transformation?

What percentage of your time is spent on external rather than internal issues? The 40%-30%-20% model (Prahalad’s and Hamel’s Competing For The Future)

UAE Progress!UAE Progress!

TOP 25% in INNOVATION INDEX (according to Economic Intelligence Unit)

TOP 25% in KNOWLEDGE INDEX (according to The World Bank)

What YOU Can do as a What YOU Can do as a Leader in the Knowledge-Leader in the Knowledge-Based Economy and Help Based Economy and Help UAE Achieve Vision 2021UAE Achieve Vision 2021

The Purpose of BusinessThe Purpose of Business

A business that makes nothing but money

is a poor kind of business.

Henry Ford – Founder Ford Motor Company

The Economics of Focusing onThe Economics of Focusing onEmployees 1Employees 1stst (the Knowledge (the Knowledge Professionals) and Customers Professionals) and Customers

22ndnd

Treat customers like guests andemployees like people.

Tom Peters – Thought Leader, Author, Former McKinsey Director

Practical How-To’s Now and Practical How-To’s Now and AlwaysAlways

• Stay One Step Ahead (Strategic Foresight = 40%x30%x20%)

• Leverage Knowledge & Human Capital

• Enable Action & Productivity with the Knowledge Workers

• Current & Potential External Realities• Corporate Considerations• Internal Capabilities• So What?• Now What?• McKinsey 7S, SWOT, Welch’s View, Drucker’s View• Thinking Innovatively Like Google’s “70-20-10”

Thinking Strategically (Like a CEO)

SatisfiedSatisfiedConsumersConsumers

UnsatisfiedUnsatisfiedConsumersConsumers

UnarticulatedUnarticulatedNeedsNeeds

ArticulatedArticulatedNeedsNeeds

UnexploitedUnexploitedOpportunitiesOpportunities

UnexploitedUnexploitedOpportunitiesOpportunities

UnexploitedUnexploitedOpportunitieOpportunitie

ssThe Easy Part

From CK Prahalad and Gary Hamel

The Strategic Relevance The Strategic Relevance of the Intangible Assets and of the Intangible Assets and

the Greatest Corporate the Greatest Corporate Asset: Human CapitalAsset: Human Capital

The only irreplaceable capital an organization possesses is the

knowledge and ability of its people.

Andrew Carnegie – Industrialist and Philanthropist

Enhance Your Know-how Enhance Your Know-how and “Know-WHO”and “Know-WHO”

A wise man makes more opportunities then he finds.

Francis Bacon – English Philosopher and Politician

Surround Yourself with Surround Yourself with People Smarter than You!People Smarter than You!

Behind an able man there are alwaysother able men.

Chinese Proverb

Surround Yourself withSurround Yourself withAttitude versus AptitudeAttitude versus Aptitude

Nothing great was ever achieved without enthusiasm.

Ralph Waldo Emerson – Author, Poet, Philosopher

Leaders FacilitateLeaders Facilitate

A leader is best known when people barely know he exists. When his work is done, his

aim fulfilled, they will say, “We did this ourselves.”

Lao-Tse – Ancient Chinese Philosopher, 6th Century BC

Leaders ServeLeaders Serve

Every person I have known who has been truly happy,

Has learned how to serve others.

Albert Schweitzer – Philosopher, Physician, NobelPeace Prize Winner

Leaders ModelLeaders Model

We must become the change we want to see

Mohandas Ghandi

Leadership is practiced, not so much in words

as in attitude and actions.

Harold S. Geneen – Business Executive

Elevate Your Leadership RoleElevate Your Leadership Role• Think Outwardly into the Future – “Control Your Destiny or

Someone Else Will!”• Build Capability and Continue to Focus on Performance –

“Chief Development Officer”• Leverage Human Capital and Intangible Assets – they are

the make-or-break corporate competencies• Hatch and Harvest Innovation • Drive Transformation, Take the Lead!• Lead with Education, Learning, Development• Think Like a CEO and Act Like a Leader• Enhance Everyone’s Know-How and Know-WHO

Thank YouThank You

RevenueRevenue

CustomerCustomerLoyaltyLoyalty

ProfitProfit

SatisfiedSatisfiedEmployeesEmployees

CustomerCustomerSatisfactionSatisfaction

LoyalLoyalEmployeesEmployees

Quality ofQuality ofService orService orProductsProducts

OrganizationOrganizationCulture,Culture,

HR Processes,HR Processes,Systems,Systems,CorporateCorporate

Management,Management,EtcEtc

The Revenue/Profit ChainThe Revenue/Profit Chain

Fortune’s Most AdmiredFortune’s Most Admired• People ManagementPeople Management• InnovationInnovation• Use of Corporate AssetsUse of Corporate Assets• Quality of ManagementQuality of Management• Social ResponsibilitySocial Responsibility• Product/Service QualityProduct/Service Quality• Long-Term InvestmentLong-Term Investment• Financial SoundnessFinancial Soundness

The Global Demographic The Global Demographic ShiftShift

Implications for Managing Implications for Managing Knowledge Workers? Knowledge Workers?

Implications of Market ValueImplications of Market Value versus Book Value? versus Book Value?

AgendaAgenda

• ““What?” -“So What?” – “Now What?” of the What?” -“So What?” – “Now What?” of the Knowledge-Based EconomyKnowledge-Based Economy

• How The UAE Can Make it Happen and Be a How The UAE Can Make it Happen and Be a Leader in the Knowledge-Based Economy (and Leader in the Knowledge-Based Economy (and What YOU as a Leader can do)What YOU as a Leader can do)

- Thinking Like a CEO (The Executive - Thinking Like a CEO (The Executive Perspective)Perspective)

- Acting Like a Leader (Leading for Results)- Acting Like a Leader (Leading for Results)