NASSCOM HR Summit 2013: Keynote 2: Entrepreneurial Leadership - New way of working to drive success

www.chrisroebuck.net

Entrepreneurial Leadership Entrepreneurial Leadership : new way of working to : new way of working to

drive successdrive success

Nasscom - 23Nasscom - 23rdrd July 2013 July 2013

Chris RoebuckChris RoebuckVisiting Professor of Transformational Leadership, Visiting Professor of Transformational Leadership,

Cass Business School, LondonCass Business School, London


Who is Chris Roebuck ?Who is Chris Roebuck ?


The economic challengeThe economic challenge

With the global economic problems With the global economic problems continuing organisations are in two continuing organisations are in two groups : groups : Doing less of what they normally do and Doing less of what they normally do and

waiting for things to get better – often waiting for things to get better – often resulting in failure after 2 – 3 years. resulting in failure after 2 – 3 years.

Changing the way they work to reflect the Changing the way they work to reflect the new world through engaging entrepreneurial new world through engaging entrepreneurial leadership. leadership.

You cannot keep hoping the crisis will end You cannot keep hoping the crisis will end tomorrow – it won’t you have to change. tomorrow – it won’t you have to change.


The organisational The organisational challenge challenge

Most organisations could perform up to Most organisations could perform up to 30% better by maximising the 30% better by maximising the performance of their people through performance of their people through engaging leadership. engaging leadership.

Most organisations could perform 10% - Most organisations could perform 10% - 20% better by reducing over complexity 20% better by reducing over complexity

Most organisations do not focus as Most organisations do not focus as effectively on the customer as they could. effectively on the customer as they could.

All of the above are due to a lack of All of the above are due to a lack of effective leadership – engaging and effective leadership – engaging and entrepreneurial at all levels. entrepreneurial at all levels.


The leadership challengeThe leadership challenge

Complex customer needs and changing Complex customer needs and changing environment require leaders need to take a new environment require leaders need to take a new and holistic view of whole organisation: and holistic view of whole organisation: Driving integrated customer service and quality Driving integrated customer service and quality

experienceexperience Developing their own leadership as well as functional skillsDeveloping their own leadership as well as functional skills Minimising complexity where possible Minimising complexity where possible Understanding, leveraging the whole organisation, building Understanding, leveraging the whole organisation, building

networksnetworks Look at external best practiceLook at external best practice Having a consistent approach across organisation, eg Having a consistent approach across organisation, eg

efficiency and good risk management . efficiency and good risk management . Being entrepreneurialBeing entrepreneurial

Everyone working as an aligned, networked and Everyone working as an aligned, networked and mutually supportive team utterly focused on being mutually supportive team utterly focused on being one team to the end customerone team to the end customer


What is your greatest What is your greatest challenge ?challenge ?

As an organisation ?As an organisation ?

As a leader ? As a leader ?


But there is an answer..But there is an answer..

And you, as leaders and professionals can And you, as leaders and professionals can help your organisation survive and beat help your organisation survive and beat the competition to become the best..the competition to become the best..

It is about SIMPLE new ways of working It is about SIMPLE new ways of working things that can be started NOW, at things that can be started NOW, at LITTLE or NO COST, that will bring LITTLE or NO COST, that will bring benefit RAPIDLY. These are PROVEN to benefit RAPIDLY. These are PROVEN to work in the real world. work in the real world.

So how can this work in So how can this work in youryour world and world and how can you make it happen ? how can you make it happen ?


Must we have great leaders ?Must we have great leaders ?

ENGAGING LEADERSHIP ENGAGING LEADERSHIP

IS ENOUGH !IS ENOUGH !


The basics we often The basics we often forget forget

Organisations objective : Maximising Organisations objective : Maximising organisational performance organisational performance

Individuals objective : Meeting their needs and Individuals objective : Meeting their needs and achieving their aspirationsachieving their aspirations

The leaders challenge : Enable employees to The leaders challenge : Enable employees to meet their needs and achieve their aspirations meet their needs and achieve their aspirations as they deliver the organisations objectives. as they deliver the organisations objectives. Don’t let the system get in the way. Don’t let the system get in the way.

Do this by being one single, integrated and Do this by being one single, integrated and aligned team – that’s what the customer aligned team – that’s what the customer expects and needs. expects and needs.


Is bad leadership a risk ?Is bad leadership a risk ?

A Swedish study from 2009 of over 3000 men showed A Swedish study from 2009 of over 3000 men showed that those with bad bosses suffered 20 to 40% more that those with bad bosses suffered 20 to 40% more heart attacks than those with good ones. heart attacks than those with good ones.

A study of UK hospitals showed that those with poor A study of UK hospitals showed that those with poor leadership systems had higher mortality rates leadership systems had higher mortality rates

The current and historic issues in major organisations The current and historic issues in major organisations where things have gone wrong the primary cause is poor where things have gone wrong the primary cause is poor leadership creating poor culture leading to errors. Eg leadership creating poor culture leading to errors. Eg financial crisis, Gulf of Mexico, LIBOR and many more. financial crisis, Gulf of Mexico, LIBOR and many more.


The key leadership levelsThe key leadership levels

MACH 1 - ENGAGING LEADERSHIP ; discretionary effort maximised – performance in top 15% BASIC LEADERSHIP : status quo thinking, minimal change, “just good enough is good enough” – the rest !

MACH 2 - ENTREPRENEURIAL LEADERSHIP : the new world, alignment to critical deliverables – TOP 5 %


What you, as leaders, What you, as leaders, must do for successmust do for success

Mach 1 - Maximise performance Mach 1 - Maximise performance

Build Core Capability: everyone can do their job wellBuild Core Capability: everyone can do their job well

Engage Employees: everyone wants to do their job wellEngage Employees: everyone wants to do their job well

Clear Responsibilities: who does whatClear Responsibilities: who does what

Mach 2 - Become More EntrepreneurialMach 2 - Become More Entrepreneurial

Total focus on end customerTotal focus on end customer

Efficiency and simplicity (including existing systems)Efficiency and simplicity (including existing systems)

Optimise riskOptimise risk

Innovate and constant improvementInnovate and constant improvement

Take personal responsibilityTake personal responsibility

Inspiration and drive for successInspiration and drive for success


Mach 1 : Mach 1 : Maximising effort from Maximising effort from employees at all levels.employees at all levels.

Tell me and I forget, show Tell me and I forget, show me and I remember, me and I remember,

involve me and I involve me and I understandunderstand


The facts - it works ! The facts - it works ! Companies with high engagement are 71% more likely to out Companies with high engagement are 71% more likely to out

perform their peers in sector. perform their peers in sector. Can produce an Earnings per share 2.6 times higher than Can produce an Earnings per share 2.6 times higher than

competitors with low engagement (Gallup)competitors with low engagement (Gallup) Could increase revenue by up to 43% (Hay)Could increase revenue by up to 43% (Hay) Companies with greater than 10% profit growth had 39% more Companies with greater than 10% profit growth had 39% more

engaged staff and 45% few disengaged staff than those with less engaged staff and 45% few disengaged staff than those with less than 10% growth (Hewitt)than 10% growth (Hewitt)

Bank branches with high employee engagement achieved 16% high Bank branches with high employee engagement achieved 16% high profit margin growth than those with lower scores (Standard profit margin growth than those with lower scores (Standard Chartered) Chartered)

Accenture managed to increase net revenue by 21.6% in 6 months Accenture managed to increase net revenue by 21.6% in 6 months by implementing an engagement initiative.by implementing an engagement initiative.

Companies with high engagement scores improved operating Companies with high engagement scores improved operating income by 19.2% compared to a decline of 32.7% in those with low income by 19.2% compared to a decline of 32.7% in those with low scores in a 12 month period (Towers Perrin) scores in a 12 month period (Towers Perrin)

Engagement can halve days lost though sickness (CBI)Engagement can halve days lost though sickness (CBI)


It works for real..It works for real..

A story of customer service from A story of customer service from a British car company...a British car company...

They seek excellence in They seek excellence in everything they do....this is everything they do....this is their 100their 100thth year. year.

But first a very short video But first a very short video about them about them


Its really simple to do ! Its really simple to do !

Counter productive 10%

Less than engaging

60% (NOT getting discretionary effort from

majority)

Engaging 20%

Good 10% Good 30%

(gets discretionary effort from employees)

Engaging 60% (gets discretionary effort from

employees)

Less than engaging 10%

Note : % of total leaders at each ability level

NOW - Basic AIM – Engaging


But you know all this But you know all this already..already..

Think about the best boss you have Think about the best boss you have ever had and what they did day to ever had and what they did day to day that made them the best and day that made them the best and made you want to give them made you want to give them maximum effort…maximum effort…

Write down 3 – 4 things they did. Write down 3 – 4 things they did.


What made you give What made you give your best ? your best ? Kept me informed about what was going onKept me informed about what was going on

Set realistic but challenging targetsSet realistic but challenging targets Making me part of a successful organisation with good cultureMaking me part of a successful organisation with good culture Respected me as a professional and a person Respected me as a professional and a person Backed me up when required Backed me up when required Developed my skills and careerDeveloped my skills and career Acted with integrityActed with integrity Led by exampleLed by example Listened to what I said and my ideasListened to what I said and my ideas Genuinely cared about meGenuinely cared about me Didn’t blame me for genuine mistakesDidn’t blame me for genuine mistakes Let me get on with things and didn’t interfere – empowered Let me get on with things and didn’t interfere – empowered

me. me. Was fair and treated be decentlyWas fair and treated be decently Inspired me with their enthusiasmInspired me with their enthusiasm Built trust and transparencyBuilt trust and transparency Praised me and encouraged mePraised me and encouraged me

TASK PEOPLE BOTH


The importance of The importance of leadership balance leadership balance

TASK TEAM

INDIVIDUAL

x

ORGANISATION


Its so simple Its so simple !! Roughly 25% of staff in most organisations are engaged, roughly Roughly 25% of staff in most organisations are engaged, roughly

65% just do the job, and 10% negatively impact on colleagues. 65% just do the job, and 10% negatively impact on colleagues. The 65% can give you 30% more discretionary effort if they want ! The 65% can give you 30% more discretionary effort if they want ! Actions you could do tomorrow that would improve performance : Actions you could do tomorrow that would improve performance :

Tell people what they do contributes to bigger picture + 28%Tell people what they do contributes to bigger picture + 28% Fair & accurate feedback day to day + 39%Fair & accurate feedback day to day + 39% A good development plan supported by the line manager + 38% A good development plan supported by the line manager + 38% Showing employees you genuinely care + 25%Showing employees you genuinely care + 25%

A good leader can reduce the risk of talent loss by up to 87%A good leader can reduce the risk of talent loss by up to 87% A line manager impacts 17 of the top 20 drivers of high performance. A line manager impacts 17 of the top 20 drivers of high performance.

Good on boarding can increase first year performance by 25% Good on boarding can increase first year performance by 25%

Overall …. a good line manager who inspires and develops people Overall …. a good line manager who inspires and develops people can increase an individuals performance AND potential by at least can increase an individuals performance AND potential by at least 30%30% Corporate Leadership Council N = 50,000Corporate Leadership Council N = 50,000


But don’t forget emotion is But don’t forget emotion is

key key Purchase decisions : Purchase decisions :

Up to point of buy : 80% logic 20% emotionUp to point of buy : 80% logic 20% emotion At point of buy : 80% emotion 20% logicAt point of buy : 80% emotion 20% logic

Decision to give high performance is 57% rational Decision to give high performance is 57% rational / 43% emotional/ 43% emotional

Line manager accounts for 80% of the emotional Line manager accounts for 80% of the emotional decision ! decision !

Line managers must “inspire” and “build trust” to Line managers must “inspire” and “build trust” to be effective – driving performance without be effective – driving performance without emotion loses nearly 50% of the chance of emotion loses nearly 50% of the chance of achieving success. achieving success.


Mach 2 : Mach 2 :

Being entrepreneurial Being entrepreneurial and focusing effort on and focusing effort on what really matters.what really matters.


What is entrepreneurial What is entrepreneurial leadership ?leadership ?

Entrepreneurial leadership (EL) applies the key skills Entrepreneurial leadership (EL) applies the key skills of the entrepreneur in the organisation to : of the entrepreneur in the organisation to :

Total focus on end customerTotal focus on end customer Efficiency and simplicity (including existing Efficiency and simplicity (including existing

systems)systems) Optimise risk not minimiseOptimise risk not minimise Innovate and constant improvementInnovate and constant improvement Take personal responsibilityTake personal responsibility Inspiration and drive for successInspiration and drive for success


Entrepreneurial overview Entrepreneurial overview is vital is vital

Entrepreneurial leader


Aligned entrepreneuri

al strategy





Example & direction

Co-ordination & support

Delivery and inspiration


Building the Building the entrepreneurial systementrepreneurial system

System leaders must : System leaders must : Understand and leverage the whole Understand and leverage the whole

organisation organisation Be a strategy and brand ambassadorBe a strategy and brand ambassador Role model integrity and partnershipRole model integrity and partnership Drive alignment and integration - simplicityDrive alignment and integration - simplicity Give permission to everyone to be Give permission to everyone to be

entrepreneurial and listen to them. entrepreneurial and listen to them. Create a focused and inspired community clear Create a focused and inspired community clear

on what needs to be done to deliver excellence on what needs to be done to deliver excellence to customersto customers


Foundations for Foundations for Entrepreneurial Leadership Entrepreneurial Leadership

Great functional knowledge

Entrepreneurial mindset

Market / environment knowledge

Strategic business understanding

Operational understanding

Core business/ project/ financial knowledge

AND FOR ENTREPRENEURIAL SUPPORT FUNCTIONS !


Key elements to enable Key elements to enable and drive better and drive better

business performance. business performance.


Why HR is critical Why HR is critical

SENIOR LEADERS

HR LINE MANAGERS

INDIVIDUALS

CUSTOMERS

“THE WAY FORWARD”

FACILITATION

DEVELOPMENT & MINDSET


Key elements Key elements

Inspirational visionInspirational vision Clarity on responsibilityClarity on responsibility Take the employees viewTake the employees view Consistent simple messagesConsistent simple messages Develop the leaders of the future Develop the leaders of the future Give permission to Give permission to

Review the legacy Review the legacy Create the future Create the future

Customer focused systemsCustomer focused systems


Developing future Developing future leadersleaders

Engaging others Engaging others – getting things done through – getting things done through other people and establishing effective rapportother people and establishing effective rapport

Learning ability Learning ability – learning from experience to – learning from experience to improve performance in self and others. improve performance in self and others. Proactively seeking feedback. Proactively seeking feedback.

Managing change Managing change – being effective in any fast – being effective in any fast moving situation and to consider implications for moving situation and to consider implications for the future as well as present. the future as well as present.

Strategic Understanding – Strategic Understanding – understanding, understanding, leveraging and improving the whole organisationleveraging and improving the whole organisation

Resilience Resilience – ability to withstand pressures of – ability to withstand pressures of challenging environmentschallenging environments and enabling other to and enabling other to do the same do the same

Entrepreneurial mindsetEntrepreneurial mindset – adding the – adding the entrepreneur on top of engaging leadership entrepreneur on top of engaging leadership


Keep it simple and practicalKeep it simple and practical

Examples you can deliver now: Examples you can deliver now: Team meeting : Team meeting :

The inspirational vision for the team ?The inspirational vision for the team ? How do we contribute to the big picture ?How do we contribute to the big picture ? How could we do better ?How could we do better ?

Individually (everything on the best boss list) Individually (everything on the best boss list) Development planDevelopment plan Listen and ask for ideasListen and ask for ideas Show you careShow you care Empower Empower


Entrepreneurial Team Entrepreneurial Team EventEvent Practical 2 hour team event you can run to start Practical 2 hour team event you can run to start

things moving.things moving. What is Entrepreneurial Leadership and for non leaders What is Entrepreneurial Leadership and for non leaders

being entrepreneurial ? – You being entrepreneurial ? – You What is the business case ? – You What is the business case ? – You How do the team think they are doing at present ? – Them How do the team think they are doing at present ? – Them How could they be better in the key areas ? - ThemHow could they be better in the key areas ? - Them What specific things could they do as a team and as What specific things could they do as a team and as

individuals ? – You and them.individuals ? – You and them. Remember the idea that EL underpins all actionsRemember the idea that EL underpins all actions Can you review and improve legacy systems and process ? Can you review and improve legacy systems and process ?

Get them to agree a team plan to become more Get them to agree a team plan to become more entrepreneurial that focuses on delivering critical entrepreneurial that focuses on delivering critical objectives ? – You and them.objectives ? – You and them.

Get them to agree individual targets ? ThemGet them to agree individual targets ? Them Can your more experienced help the less experienced Can your more experienced help the less experienced

people or can people outside the team help ? You and them. people or can people outside the team help ? You and them.


India – a real opportunity to leadIndia – a real opportunity to lead Geographic location : spans Europe, Asia and USAGeographic location : spans Europe, Asia and USA Natural entrepreneurial mindset and culture Natural entrepreneurial mindset and culture Top quality education and technical trainingTop quality education and technical training English as major languageEnglish as major language Excellent IT and communications infrastructureExcellent IT and communications infrastructure Leading edge technologiesLeading edge technologies So great functional expertise is in place but…….. So great functional expertise is in place but…….. Next critical success factor is development of competent Next critical success factor is development of competent

leaders:leaders: For all organisationsFor all organisations For all undergraduates UniversitiesFor all undergraduates Universities With Masterclass level leadership development at Business With Masterclass level leadership development at Business

Schools Schools


Now you personally...Now you personally...

Decide now and write down 1 actions for : Decide now and write down 1 actions for : You - PersonallyYou - Personally - what will you - what will you

personally to develop your ability as an personally to develop your ability as an entrepreneurial leader ?entrepreneurial leader ?

Your team - Your team - how will you work together how will you work together and become both better and more and become both better and more entrepreneurial to improve business entrepreneurial to improve business performance ? performance ?

Now go back and make a difference ! Now go back and make a difference !


Never forget leaders can Never forget leaders can change lives !change lives !


QUESTIONS QUESTIONS


FOR ADDITIONAL IDEAS & FOR ADDITIONAL IDEAS & CASE STUDIES SEE : CASE STUDIES SEE :

WWW.CHRISROEBUCK.NWWW.CHRISROEBUCK.NETET

NASSCOM HR Summit 2013: Keynote 2: Entrepreneurial Leadership - New way of working to drive success

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