Business & Economic Outlook Event 2016 - Allied ExecutivesAllied Executives Business & Economic...
Transcript of Business & Economic Outlook Event 2016 - Allied ExecutivesAllied Executives Business & Economic...
Business & Economic Outlook
Event 2016
Twitter Hashtag
#AlliedExecs
Allied Executives Business & Economic Outlook Event 2015
William W. George
Author &
Former Chairman & CEO of Medtronic
Allied Executives Business & Economic Outlook Event 2016
“Discover Your True North”
Allied Executives
Annual Business Outlook
Bill George
Senior Fellow, Harvard Business School
and former Chair & CEO of Medtronic
February 23, 20164
Challenges in Leading Businesses Today
• In an era of high volatility, how can business leaders stay on course to achieve sustained success?
• Can clarity of leadership, focus and strategy overcome the uncertain economic environment?
• How can business leaders stay on track while overcoming investor pressures for short-term gains?
• How can organizations adapt rapidly to serving Millennial customers and engaging Millennial employees? 5
Your Leadership Challenges
#1: How can you become a leader that makes a difference in lives of your customers and your company?
#2: How can you take your leadership to the next level as an authentic leader?
#3: How can you sustain your leadership by continuing your development?
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Becoming A Leader
LEARNINGKNOWLEDGE
CRITICAL THINKING
BECOMING AN AUTHENTIC
LEADER
DEVELOPING SKILLS
Leadership Is Changing
Hierarchical > Empowering
Bureaucratic > Interdependent Units
Limited Information > Transparency
Charisma & Style > Authentic & Openness
Self-interest > Service to others and greater cause
Impact of: Globalization
Technology & Social Media
Millennials
Diversity8
Why Leadership Matters
• Leadership makes the difference between success and failure of your organization
• The root cause of numerous corporate meltdowns and failures in the last decade is failed leadership
• Many failed leaders focused on short-term over long-term, placing their self-interest ahead of their institution’s interests.
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Why Leaders Fail
• Failed leaders did not fail due to lack of IQ
• Rather they lacked emotional intelligence (EQ)
– Lacked self-awareness
– Unable to face reality & admit mistakes
– Lacked passion for company’s mission & values
– Lacked compassion and empathy for people
– Lacked courage to transform organization
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Definition of Authentic Leadership
Authentic leaders align people around shared mission and values
and empower them to lead,while serving all stakeholders, and collaborating with others
to sustain superior results
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The New 21st C. Leaders
20th C. View 21st C. View
Maximize short-term value Build for long-term
Shareholder-driven Customer/values-driven
Multi-national structure Global orientation
Tops-down leadership Leaders at all levels
Internal focus External focus
Rules & processes Empowering culture
Pay for individual results Pay for company results
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Warren Bennis’ Leadership Premises
• The most dangerous leadership myth is that leaders are born. That’s nonsense; the opposite is true. Leaders are made rather than born.
- On Becoming a Leader, 1989
• Leadership is character. It is not just a superficial question of style. It has to do with who we are as human beings and the forces that shaped us.
• The process of becoming a leader is much the same as becoming an integrated human being.
- Learning to Lead, with J. Goldsmith,1997
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Leadership is Serving Others
“The servant-leader is servant first. One wants to serve first; then one aspires to lead.
This is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions.
A servant-leader focuses primarily on the growth and well-being of people and the communities to which they belong. The servant-leader shares power, puts the needs of others first, and helps people develop and perform as highly as possible.”
- Robert Greenleaf, The Servant as Leader (1970)
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Your True North
“Your True North is the internal compass that guides you successfully through life. It represents who you are at your deepest level. Your True North is based on what is most important to you, your most cherished values, your passions and motivations, the sources of satisfaction in your life.”
- True North, Introduction
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What Is Your True North?
Your Most Deeply Held Beliefs, Values and Principles
How do you stay on coursein spite of pressures and
seductions to deviate?
Your True North
• Your Life Story
• Your Crucibles
• Your Defining Leadership Experience
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Steve Jobs’ Best Advice
• You cannot connect the dots of your life looking forward, but you must connect them looking back.
• Your time is limited, so don't waste it living someone else’s life.
• Don't let the noise of others' opinions drown out your inner voice.
• Most important, have the courage to follow your heart and intuition.
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Your Leadership Development Plan
– Develop your self-awareness
– Test your values under pressure
– Find your “sweet spot”
– Build your support team
– Integrate all aspects of your life
– Know your leadership purpose
Your Life
Story
Self-Awareness
Self-Compassion
Self-Acceptance
Your Crucible
Gaining Self-Awareness
Feedback
Reflection
Self-Actualization
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Johari Window
Others
Self
Known to:
Yes
Yes
No
No
OPEN
BLIND SPOTS UNKNOWN
HIDDEN
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Values are shown by what you do when you think no one is looking
New York Times Transparency Test
Prior to taking an action, ask yourself:
Would you feel comfortable if a transcript of this conversation was published in the New York Times?
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Your “Sweet Spot”
ExtrinsicMotivations
IntrinsicMotivations
Strengths
SweetSpot
Weaknesses
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Your Support Team
Your support team consists of the following:
• One person in your life with whom you can be completely open: your spouse, significant other, best friend, or therapist.
• Mentor(s) who can guide and counsel you and keep you from going off-track.
• A support group of your peers.
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True North Groups
• 6-8 peers who meet regularly to talk about the most important issues in their lives
• Following prescribed program of discussion topics
• Keys to success:OpennessTrustConfidentialityHonest feedbackCandor
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The Integrated Leader
Personal Life
FamilyLife
Work Life
TheIntegrated
Leader
Community Life
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Your Leadership Purpose
• What is the purpose of your leadership?
• What in your life experiences and your passions is it derived from?
• To what extent is your purpose aligned with your company’s purpose?
• How could you bring it in closer alignment?
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Johnson & Johnson Credo
• We believe that our first responsibility is to the doctors, nurses, hospitals, mothers and all others who use our products.- Our products must always be the highest quality.
• Our second responsibility is to those who work with us – the people in our plants and offices.
• Our third responsibility is to management.• Our fourth responsibility is to the communities
in which we live.• Our fifth and last responsibility is to our
stockholders.29
Medtronic Mission
• To contribute to human welfare by application of biomedical engineering (to) alleviate pain, restore health, and extend life.
• To direct our growth in the areas of biomedical engineering where we display maximum strength and ability. . . to avoid participation where we cannot make unique and worthy contributions.
• To strive without reserve for the greatest possible reliability and quality in our products; to be recognized as a company of dedication, honesty, integrity, and service.
• To make a fair profit on current operations to meet our obligations, sustain our growth, and reach our goals.
• To recognize the personal worth of employees by providing an employment framework that allows personal satisfaction in work accomplished, security, advancement opportunity, and means to share in the company's success.
• To maintain good citizenship as a company. 30
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Sustaining Growth and Performance
Innovation and
Superior
Customer Service
Mission-Driven
Values-Centered
Organization
Shareholder
Value
Increases
Motivated
Employees
Profit
Growth
Increases
Revenue
Growth
Increases
Increased
Customer
SatisfactionReinvest
Nobel Peace Prize Albert Schweitzer
“I don't know what your destiny will be, but one thing I do know:
The only ones among you who will be really happy are those who have sought and found how to serve.”
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Jeffrey M. Ettinger
Chairman & CEO
Hormel Foods Corporation
Allied Executives Business & Economic Outlook Event 2016
Allied ExecutivesAnnual Business and
Economic Outlook Event 2016
Innovate Don’t Imitate
Our LegacyOur Innovative JourneyOur Social InnovationOur Outlook
IntegrityCulture of QualityContinuous Improvement
Innovate Don’t
Imitate
Our founder’s legacy
Established to provide continued support to the local communityOwns 48% of the company
Hormel FoundationA Vision for the Future
Small Town to Global Stage
Fortune 500 CompanyAustin, MN
$9.3 Billion Net Sales 60 Countries21,000 Employees40+ Plants
$220,000
20151891
Outstanding Growth
Our people Fostering careers, growing talent
PROFIT SHARING 1938 MULTI GENERATIONS MINIMUM WAGE LEAD AVERAGE TENURE OF SENIOR LEADERSHIP,26 YEARS
THE RAMLO’S114 YEARSDad – Dale, 40 YearsBrother – Mark, 39 Years
Scott Ramlo35 Years
Our Innovation JourneyBe the Bridge “It’s not the strongest or the most
intelligent who will survive but those who can best manage change”
CHARLES DARWIN
DiverseThinking
OurPeople
Survival and strength lies in differences not similarities.
Change – Lifestyles, Tastes
MULTICULTURAL
GLOBAL
ON THE GO
HEALTHYHOLISTIC
MILLENNIALS GEN X BOOMERS MATURES
Lifestyles and Demographics
Diversely Balanced
OUR INNOVATION OUR ACQUISITIONS
Hunger & Malnutrition
Cancer PreventionResearch and Nutrition
Community Support
Social InnovationMaking a real difference
Founder’sForesight
The Hormel Foundation gives millions of dollars each year to the local community with a focus on education, parks, arts, science and the Hormel Institute.
HormelFoundation
Eliminate Cancer
RecoveryRebuildStrength
Community Outreach$11.9 Million
IN FY 2015
· Feeding America
· Disaster Relief
· United Way
· Volunteerism
· Community Support
· Education and Scholarships
· Military
Hunger, Malnutrition,
Cognition
Inspire Dreams,
Education
Real Difference,
One Child At A Time
PROJECT SPAMMY LEARNINGS
INSPIRING SOCIAL INNOVATION, IMPACT
Consider turning your talent loose for a “pro-bono” cause.
Look for hands-on, in-the-trenches experiences.
Set the vision, then let the folks run with it.
"I hope corporations will
consider dedicating a
percentage of your top
innovators' time to issues that
could help people left out of
the global economy.
This kind of contribution is
much more powerful than
simply giving away cash, or
offering your employees time
off to volunteer. It is a
focused use of what your
company does best."
Bill Gates -- Davos -- 2008
Evolve.Change.Grow.
Our Journey Continues
Doug Loon
President
Minnesota Chamber of Commerce
Allied Executives Business & Economic Outlook Event 2016
2016 Legislative Session: PRIORITIES
graphicadvocate. . grow.
MEMBERS
2,300 members
500,000 employees
78% members have fewer than 100 employees
Diverse membership – every industry represented
120 local chambers
Trade associations
VISIONStrengthening the business environment to improve the lives of all Minnesotans
Economic Opportunity
Business Climate
Build on Strengths
Minnesota Ready
VISION
Positive Economic News
• Dynamic & Diverse Economy
• Innovation & Investment in MN
• Minnesota business optimistic
• Want to grow in state
% OF COMPANIES ADDING MN JOBS: 2006 - 2015
53%
41%
0%
10%
20%
30%
40%
50%
60%
70%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Metro Greater MN
Adding Jobs: TC’s & Greater MN
BUSINESSES PLANNING NEW INVESTMENTS
48%
59%
63%
0%
10%
20%
30%
40%
50%
60%
70%
2013 2014 2015
New Investments: Up
% OF COMPANIES: FASTEST GROWING MARKETS = INTERNATIONAL
15%
9%
0%
5%
10%
15%
20%
25%
30%
35%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Metro Greater MN
Exports: Metro Greater MN
BUSINESSES CREATING NEW PRODUCTS, LAST YEAR
Innovation:
74%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Metro Greater MN
Economic Headwinds• Global economies & markets
• Strong U.S. dollar
• Greatest impact on manufacturing, mining & agricultural
• Workforce/demographic changes
More trouble finding workersWORKFORCE
13%
70%
25%
72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2008 2009 2010 2011 2012 2013 2014 2015
Metro Greater MN
% of Companies Reporting Trouble
2008 - 2015
MN growth in labor force slowing WORKFORCE
MN 1.4%
U.S 2.2%
0
0.5
1
1.5
2
2.5
3
3.5
4
2010 2011 2012 2013 2014
%
Annual GDP Growth- MN and U.S.
BUSINESS CLIMATE
Minnesota’s National Rankings
3rd highest
Income TaxRates
2nd Best> 2 year degree
5thhighest
minimum wage
#1labor
participation
4thbest
Healthiest
state
3rdworst
small business
tax climate
8thlowest
poverty level
2nd highest Business
property
tax
MINNESOTA BUSINESS BENCHMARKSSizing up Minnesota’s business and economic climate
IN A NUTSHELL
• Short session, starts March 8
• Bonding year
• Large surplus…$1.2 billion
• Election year
• Work unfinished from 2015
• Taxes
• Transportation
2016 Legislative Session Priorities2016 SESSION
Business tax relief
• PRIORITY: Business Property Tax
• Estate tax
• R&D credit
2016 Legislative Session PrioritiesTAX COMPETITIVENESS
2016 Legislative Session PrioritiesTRANSPORTATION
Three Legged Stool:
• Roads
• Bridges
• Transit
Minnesota Ready
To Change, To Grow, To Lead
advocate. . grow.
Allied Executives Business & Economic Outlook Event 2016
Sue Hawkes
CEO
YESS!
John P. Palen
Founder & CEO
Allied Executives
Kurt Theriault
President
Allied Executives
Allied Executives Business & Economic Outlook Event 2016
0 10 20 30 40 50 60 70 80
Speed of technology change
Overregulation
Lack of innovation
Rising customer demands
Corporate brand/reputation improvement
Operational excellence
Improving customer relationships
Competitive threats
Succession planning
Growing the top line
Leadership team ineffectiveness
Achieving work/life balance
Staffing/talent gap issues
Availability of capital
Of the challenges listed below, please choose up to 5 of the topics that
represent the biggest concerns you face in 2016.
12.36%
70.79%
12.36%
5.62%
10.11%
15.73%
13.48%
56.18%
30.34%
28.09%
29.21%
62.92%
35.96%
29.21%
Allied Executives Business & Economic Outlook Event 2016
How do you really get to know
yourself and your business?
Allied Executives Business & Economic Outlook Event 2016
What is authenticity?
Allied Executives Business & Economic Outlook Event 2016
What are the differences between
companies that consistently perform
well and those that don’t?
What is your end game?
How do you make decisions?
Allied Executives Business & Economic Outlook Event 2016
How do you prepare for an economic
or industry downturn?
How do you define, assess and
effectively manage risk?
Allied Executives Business & Economic Outlook Event 2016
How do we create more memorable and
meaningful experiences vs transactions?
Allied Executives Business & Economic Outlook Event 2016
The convergence of humanity with
technology, how do we respond,
leverage or adapt?
Allied Executives Business & Economic Outlook Event 2016
• How do we organize and implement our planning
process?
• Does the execution of our planning work?
• How do we create an accountability culture?
• How do we motivate employees to do more and
prevent burnout?
• What is our culture and how do we create and manage
the one we want?
• What could put us out of business?
Allied Executives Business & Economic Outlook Event 2016
• What could our competitor do that would scare the
crap out of us?
• Who is a good partner?
• How do we hire well?
• Who is a good client for us?
• How do we do a better job of shifting to meet the needs
of all generations?
• What do we do about the intersection of IT and
traditional marketing/branding?
Allied Executives Business & Economic Outlook Event 2016
• How do we manage risk, but not choke innovation?
Must risk to grow, be creative or innovate.
• What are we maximizing? Profit, Growth, Opportunity,
Our Offering? Why? How?
• Why are we in business?
• How do we get all the right people in the right seats?
• How do we balance Cost vs. Value?
• What’s the “right” experience for our client?
Allied Executives Business & Economic Outlook Event 2016
• How can we be inclusive-age, color, gender-all of it?
• Who will run the company after the current CEO
retires?
• Is leadership development and succession part of the
culture?
• What’s the purpose of our company?
• How do we increase the value of our company?
• What is the highest and best use of our talents?
Allied Executives Business & Economic Outlook Event 2016
• How will our HR adjust to an aging, diverse, dense,
mobile population?
• Are we equipped to deal with change?
• What aspects of our business are at risk?
• People want equity in gender, race, and income.
What’s our company policy?
• Do we create trust? Do we do what we say and say
what we mean?
• Why should anyone trust our company?
Allied Executives Business & Economic Outlook Event 2016
• Balancing efficiency, convenience, and safety is
getting harder. How do we do it?
• Have we identified what Big Data can do for us?
• How will we protect our company and brand from
security threats?
Allied Executives Business & Economic Outlook Event 2016
What if we do nothing?
Thank You!
Allied Executives Business & Economic Outlook Event 2016