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the collaborator-in-chief pg. 8 age and experience: is 65 the new 50? pg. 12 the korn/ferry institute briefings on talent

BMW 7 Series

Sheer www.bmw.com Driving Pleasure

Behind Chile’s

pg. 18

& Mining Miracle leadership

Today’s Anxious Self pg. 58

The Chairman’s Job pg. 40 Where Innovation

Runs Deep pg. 24

Brazil’s Cool Startup pg. 32

issue 6 Georgena Terry’s

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3513_F01_xDrive_BriefingsKornFerry_209,55x273,05.indd 1 12.01.2011 10:32:46 du SoleilInc. Camirand ©Cirque Daniel Lamarre: Cover photographof ChiefmarketingoffiC marketing

Chief exeC C C irC ontributing editors b C ulation direC oard ofa reative e ditor-in-C utive offiC C

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Publisher d ireC dvisors hief tor tor er er PeterPearsall VictoriaGriffith LawrenceM.Fisher DavidBerreby Laurance Allen Kurtzman Joel Michael Distefano Gary Burnison Chris Bergonzi Cheryl Buxton Stephen Bruyant-Langer Michael Bekins Sergio Averbach Reonna Johnson Ralston Joannah Printed intheUSA For reprints, at310-843-4126. contactReonnaJohnson isaSkypenumberwithworldwide service This Circulation customerservicephone:603-965-2232 Derry, NH03038-0327 PO Box327 Briefings Magazine Requests foradditionalcopiesshouldbesentdirectly to: Copyright 2011, Korn/FerryInternational 1949-8365 ISSN the state of global human capitalfor businesses of allsizes around the world. with itspreeminent behavioral research library. Institute is dedicated to improving The Ferry’s unparalleledexecutive recruitment expertisein talent developmentcombined and Institute commissions,publishes groundbreakingoriginates and researchutilizing Korn/ premiera as a rangeon global voice leadership issues.talent managementand of The founded toserve Korn/Ferry Institutewas Korn/Ferry Institute.the quarterly by The Korn/FerryInternationalBriefings on Talent andLeadershipispublished The Adrian Wooldridge Glenn Rifkin Stephanie Mitchell Dan Gugler Robert Hallagan Griesedieck Joe Ana Dutra Dennis Carey

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Viewpoint

14 leadership as a contact sport Leadership is not for the faint of heart. BY stephen joel trachtenBerg

Interview

5 Letter from the CEO 18 the man behind chile’s miracle Three billion people watched the miners being Latest Thinking rescued. How did they do it? BY joel kurtzman 8 c is for collaboration Collaboration is no longer optional. 10 age and experience Innovating Baby boomers are retiring later. What does that 24 where innovation runs deep mean for business? Thriving in emerging markets requires daily doses of high-potency innovation. BY adrian wooldridge

Leadership

32 azul David Neeleman’s second act is being played in Brazil — and to rave reviews. 46 BY victoria griffith Governance

40 the chairman’s job Nonexecutive chairmen have important jobs, not just roles. BY david snow

Talent 18

46 leadership under the big top Circuses are more than fun and games. What one of the world’s best has to teach us. BY glenn rifkin

Essay 58 today’s anxious self Life’s often better than it feels. Are we hard-wired for worry? BY david BerreBY

Cool Companies

66 georgena terry’s long-distance ride An entrepreneur succeeds by focusing on what women need and want. BY lawrence m. fisher

In Review 74 “it happened on the way to war: a marine’s path to peace” 75 “clutch” 78 “power: why some people have it — and others don’t”

Parting Thoughts

80 we are all sociologists now. Organizational sherpas BY joel kurtzman If you’re a regular reader of this magazine, you’re probably interested in how ideas, in one form or another, help shape the world. Right from the beginning, we worked with brilliant partners, like our friends at Microsoft and Google to design some of the world’s most advanced smartphones. Even great minds from outside the tech world have helped make us who we are, everyone from the actor-journalist, Stephen Fry, to Korn/Ferry, the people behind this magazine. By working together and sharing ideas we were able to accelerate the pace of innovation. This year Fast Company magazine rated us one of the most innovative company’s in the world. Whatever we do next, what’s clear is that it’ll be ideas that will lead the way.

htc.com Briefings onTalen T David Strick panic along the same treacherous stretch of high- panic alongthesametreacherousstretchof way wherehenarrowlyescapeddeath,weremem- Just like the driver who feels white-knuckled feels who driver the like Just Berreby observes in his essay “Today’s Anxious Self” Self” Anxious “Today’s essay his in observes Berreby fortable with worry with fortable in job creation, companies have been lingering in a in lingering been have companies creation, job in it comestotheirownmistakes. itsafeisanat- Playing in this issue of of issue this in wait-and-see attitude we came“this” itbe- closetoarealmeltdown.Infact, nearly $3trillionincash,whichrepresentsthehigh- ning businesses have long memories, especially when and the knowledge that output per worker can expand It’s not so easy to forget a near miss. of confidence overcoming acrisis ber howtrulycatastrophicitcouldhavebeen. just sofar. total $1.4 trillion? Rather than invest some of that cash caution.Peoplerun- there hasbeenanabundanceof the thoughtthatitcouldhappenagain. to a crisis of confidence. There is a decided lack of be- There isadecidedlackof confidence. to acrisisof the notion that “cash is king,” and we vividly recall that have Americancompaniesreportedlybeensittingon has become addicted to anxiety. We are more com- more are anxiety.We to addicted become has ductivity amongUnitedStatesemployeesinlate2010 lief that tomorrow will, indeed, be better. As David As better. be indeed, will, tomorrow that lief ural reaction to near-disaster. For example, why else why example, near-disaster.For to reaction ural came morethanasaying call how a global financial crisis breathed new life into excess reservesintheUnitedStatesbankingsystem corporatesavingsin50years?Andwhydo est levelof erated for the last 18 months with a heavy liquidity bias. spite someencouragingsignsintheglobaleconomy, More frightening than the echoes of thepastis More frighteningthantheechoesof It shouldcomeasnosurprise,therefore,thatde- In our individual and collective memories, we re- The reason for much of thecautioncomesdown reasonformuchof The , society Leadership, & Talent on Briefings — — and find comfort worrisome comfort find and &l despite astrongboostinpro- — most businesseshaveop- eadership A leap of faithseemslikeasurefirewaytofail. A leapof (which, initself,issomethingtoworry United States debt, a possible cooling down of China apossiblecoolingdownof United Statesdebt, reby writes. “Yet leaders in both public and private and public both in leaders “Yet writes. reby reality. factis, thingsarealotbetterthanyearor The represents acommensurateincrease intheregion’s more farsighted.Forexample,considertheopportu- welfare. We prefer to hoard out of fearratherthanto We prefertohoardoutof welfare. about). Seeingonlythecloud,andnot view.We needtobeselectiveabouttheinformation nities thatwillariseoverthenexttwodecadeswith as a consumer of goodsandservices asacontrib- as aconsumerof proverbial silverlining,wearelessgen- petitor totheworld’swealthynations. Itisdeveloping buying power. Asiaisnotdevelopingsolelyasacom- two ago, andalthoughtherearepatchycloudsonthe that bombardsusandgetamuchbettergroundingin burgeoning the like issues real very that tending trust anddespair.” two-thirds of theworld’smiddleclassresidinginAsia. two-thirds of that Asia’s almostunimaginableincreasein wealth horizon, the economy is throwing off morepositive horizon, theeconomyisthrowingoff large grouprepresentsanopportunitythatisunprec- utor to the welfare of theworld. utor tothewelfareof Such a large and speedy transformation of such a such of transformation speedy and large a Such cally equippedoraswell-informeditistoday,” Ber- erous andmoreconcernedwithourown exist. However, it is time to take a more discerning more a take to time is it However, exist. edented inhumanhistory. Andwemustremember mis- fear, with contending themselves find sectors abundance. future and current in abelief share outof signs thannegativeones. or continuedEuropeansovereigndebtworriesdonot By Gary Burnison “Humanity hasneverbeenasrich,technologi- I’m not advocating rose-colored glasses or pre- or glasses rose-colored advocating not I’m Our view of the future should be less myopic, myopic, less be should future the of view Our

thethe ceo from from Q2.2011

ceo 5 6 As Thomas Edison said: “I haven’t failed. I’ve found 10,000 found I’ve failed. haven’t “I said: Edison Thomas As Q2.2011 risk process is useless. Instead of identifying, assessing and assessing identifying, of Instead useless. is process risk must be more purposeful in their attitudes toward risk. In- risk. toward attitudes their in purposeful more be must from what went wrong in order to go at the problem again. problem the at go to order in wrong went what from ways thatdon’t work.” will turntheirbacksontroublingissuesinthehopethey no risk translates to a lack of innovation,creativity,no risktranslatestoalackof new-idea we that safe so it play to trying that truth: powerful a admit around it:wesucceedlessoftenthanfail,”heexplained. become totally risk averse is pact of that downside risk is. The differenceisprofound. thatdownsideriskis.pact of The isnoway process, another30percentareeliminated.“There profile inBriefings2010, explainedthatatthebeginningof the economy stalls. After all, strategy is about making calcu- making about is strategy all, After stalls. economy the fuels that engine The expansion. no growth, no is there ties the research-and-development process in his industry, 90 per- deed, what’s neededisarisk-intelligentculturethatcenters lated bets, andpositivechangedoesn’t happenonitsown. Swiss pharmaceuticalcompanyNovartisa andthesubjectof generation, breakthroughs and action. Without these activi- these Without action. and breakthroughs generation, go awayorbecomesomeoneelse’s problem. cent of potential products are lost. Sevento10 yearsintothe potentialproductsarelost. cent of escalate, orthatfavorsfearoveropportunity. Inthatcase,any scrutinizing both the downside and downside the both scrutinizing on risk on only those who raise awareness of risks and how they may they how and risks of awareness raise who those only on transparency and debate. It cannot be a culture that praises interesting... defaulter” delinquency, foreclosure, bankruptcy and charge-offs. in theirlivesduringthepasttwoyears,including a seriousnegativecreditsituationforthefirsttime hit been with have customers bank of percent Eleven Source: Deloitte,2010 segment customer emerging An MEET THEFIRST-TIME DEFAULTER Avoiding riskisnottheanswer;limitingsizeandim- In the midst of a collective crisis of confidence, leaders confidence, of crisis collective a of midst In the In order to innovate and expand, companies must take must companies expand, and innovate to order In In a recent conversation, Daniel Vasella, chairman of the Vasella, chairmanof In arecentconversation,Daniel From abusinessleadershipperspective,it’s alsotimeto Nor istheanswertoattendyetanotherforumorsympo- — trying and quite possibly failing, and then and failing, possibly quite and trying — ispresentinganewchallengeforbanks. the most risky behavior of all. Taking of risks, people risks, of upside — the “first-time the learning “Those who cannot remember the past are condemned to re- to condemned are past the remember cannot who “Those It starts with an honest assessment of howriskisregardedin It startswithanhonestassessmentof If we don’t acclimatize ourselves to that highway, we are highway,we that to ourselves acclimatize don’t we If The riskdebateshouldaccompanyallmajordecisionsandal- The The rabbit The is swift and smart. rabbit The always finds a way. For CirqueduSoleil,notonlyiseachnewshowarisk risk, risk, which is understandable. Certainly, learning lessons from for the specific purpose of taking important risks. The culture takingimportantrisks.for thespecificpurposeof facilities, retail channels and research facilities. Even the Even facilities. research and channels retail facilities, insects ing processallorganizationsandinstitutionsmustfollow. Af- an organization an what itmeanstofindnewwaysadvancetheorganization. far is risks taking that is companies these in thinking and about ashowfocusingonElvis, or(yes) orMichaelJackson, versations” about today is nothing more than checking the checking than more nothing is today about versations” aged. Conversationsaboutriskmustoccurateveryleveland are at least open to investing in such things as production production as things such in investing to open least at are ness is Cirque du Soleil, whose president and chief operating ness isCirqueduSoleil,whosepresidentandchief and pursueemergingopportunitiestogrowexpandwill noreward.Companieswiththefortitudetoseekout no risk, new road,butrathertoavoidmaking themistakesagain. box, a reflex action devoid of thought. thought. box, areflexactiondevoidof con- “real having without past the on only it.”Focusing peat prospects forhiringarebrighter. companies large reserves, cash stronger and sheets balance that is learning and questioning, as Edison and Vasella suggest. the perilsandopportunitiestomakeinformeddecisions. ter all, as the pragmatist philosopher George Santayana said, Santayana George philosopher pragmatist the as all, ter thelearn- itispartof the financialcrisisisagoodidea.Infact, tunities. Rather than avoid the highway on which the accident ter newexperiences, newoppor- adventureandthepursuitof happened, weneedtotraveldownitagain,perhapsgradually. locations of resources. This will allow leaders to understand to leaders allow will This resources. of locations dar, butavoidbeingtrappedbyit. let us allglanceatthepast, looked like,andwerememberhowpainful(andsometimes likely toavoiditforever. trickisnotnecessarilytotakea The gain theadvantageovermoretimidcompetitorsstillwaiting cial crisis, itreallyequatestoopportunity. Asthesayinggoes: especially among senior management. Itmuststartatthetop.especially amongseniormanagement. safer than playing it too safe. Failure is accepted as part of of part as accepted is Failure safe. too it playing than safer sium on risk. Every conferencethesedaysseemstocenteron sium onrisk. slow) therecoveryhasbeen.Butbadmemoriescanoftende- officer, Daniel Lamarre, is profiled in this issue of issue in this profiled is Lamarre, Daniel officer, on thesidelines. A far better approach is adopting a risk-intelligent culture Although risk has gotten a bad rap thanks to the finan- the to thanks rap bad a gotten has risk Although Yes, weknowwhattheworld’seconomic-accident scene In someindustries, riskcapitalissetasideanddeployed In this year of the rabbit, accordingtotheChinese calen- therabbit, In thisyearof Fortunately,With cleaner growtharethere. thesignsof Certainly, acompanythatisinnewanddifferentbusi- — but eachactwithinashowisrisky. — how it is identified, measured and man- and measured identified, is it how The Korn/ f erry i Briefings. — e T u T i nsT think

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C is for Collaboration Do we really need yet another role in the C-suite?

oday’s organizations are too complex to operate effectively in silo mode; businesses are increasingly focused on cross-selling products to existing customers and innovating through the recombination of existing technolo- Tgies. The imperative to collaborate is now so deeply embedded in the strategic goals of companies that some believe effective collaboration can no longer be expected to develop without explicit guidance, no matter how well it is supported by corporate culture. “The problem with collaboration is that no one owns it as an enterprise issue,” said Robert L. Cross, associate professor at the McIntire School of Commerce of the University of Virginia. “It either gets housed in IT as some kind of social media solution or in HR as a talent or organizational initiative. Too often these solutions end up overloading already busy employees rather than producing the anticipated organizational impact.” Morten T. Hansen, a professor at the University of California, Berkeley School of Information, believes that what is needed is an executive responsible for integrating the enterprise — a chief collaboration officer. “In most companies today, senior executives are still respon- executive vice president at Premier Global an enterprisewide view in seeking to le- sible for their unit — sales, marketing, Services (PGi), a Web conferencing and verage information, which is the lifeblood HR, division A, division B,” he wrote in a collaboration company, do not see the of collaboration; the head of human re- recent Harvard Business Review article. CCO as an entirely new position, but sources, whose emphasis on creating “Yes, they are told to be team players rather a role to be adopted by an existing incentives and developing talent would and work with their peers, but that is of- member of the C-suite. CEOs, they say, serve well in creating a culture of collabo- ten not enough. You need someone to are not candidates — they have too little ration; the COO, whose role is already [take] a holistic view of what is needed to time and too high-level a view. Instead, one of coordination across silos; the CFO, get employees to work across silos.” they suggest a number of other potential because collaboration is first and fore- Hansen and co-author J. Scott Tapp, candidates: the CIO, who already takes most about creating economic value; or Brian Stauffer

8 Q2.2011 The Korn/f erry i nsT i T u T e interesting... the CTO, because collaboration is increasingly enabled and defined by technologi- HELP WANTED: NINJA cal innovations. Add “ninja” to the list of trendy job titles. While Whoever it were to be, the CCO would most are computer programmers, the term need to have both a deep understanding is being used to describe expertise in of the company’s strategic objectives of everything from customer service collaboration — such as integrating chan- to furniture movers. While the nel sales, improving customer service or number of ninjas is still small, the job has skyrocketed optimizing the supply chain — and a keen past other fashionable awareness of the mechanisms, struc- careers such as “gurus” tures and technologies that would facili- and “evangelists.” tate collaboration at the operational level. Source: Wall Street Journal, 2010 “My gut says that the C-level marketing, strategy and technology officers are in the best position to [have both perspec- favor of a collaboration advisory board of within the organization to determine tives], since they are most familiar with C-level executives to set direction [and] who is simply the best collaborator. To aligning strategic goals with operational an implementation committee, nomi- that point, Robert Cross’s work is particu- tasks in a cross-departmental manner,” nated by the board, to carry out recom- larly germane. For more than a decade, said Hyoun Park, a research analyst at mended practices. I have initiated this his research has focused on identifying the Aberdeen Group, a business research model in my company.” informal networks within organizations provider. Others wonder whether a CCO role is and particularly those employees who are “My vote would be for the CIO,” said essentially antithetical to the nature of “central connectors” and “brokers” of in- Whitney Johnson, president of Rose Park collaboration. Steve Ardire, a business formation flow. He has consistently Advisors. strategy consultant, had this response to found that those networks do not corre- “The CIO has the skill sets to not only the notion of a CCO: “Oh boy, not an- spond to formal organizational charts. analyze data, but to galvanize people to other needless C-level cheerleader posi- In a recent article in MIT Sloan Man- work together.” tion. Smart, open-culture organizations agement Review, “The Collaborative While it is true that each of the extant should already be collaborative.” Ian Gotts, Organization: How to Make Employee C-suite roles represents a skill set that is the founder and CEO of Nimbus Partners, Networks Really Work,” Cross and his co- crucial to effective collaboration, none of a company that offers cloud computing authors wrote, “Although organizational them, by themselves, represent the total process solutions, said, “You need clearly charts and standardized processes can package. In fact, it could be argued that defined and adopted processes so staff provide important underpinnings, they all of these candidates for CCO would be members understand interactions across are not flexible enough to support the handicapped by seeing the nature of col- silos. Then collaboration occurs normally. types of collaborations that companies laboration through their own particular It is the means, not the end.” need to maximize value.” The authors prism. What is more, there is a question Still others acknowledge the poten- went on to explain how network analysis whether time constraints would allow tial usefulness of a CCO, but do not think can identify which organizational leaders any member of the C-suite to play both the person to fill that position is to be drive collaboration. his or her own role and that of CCO well. found currently in the C-suite. “I don’t If the role of CCO is to be viable, then, These considerations lead some to doubt believe that the search for a CCO should it will be less about title and more about whether the idea of a CCO is workable. be based on a title,” said Peter Osborne, the ability to tune in to an organization’s “I tend to believe that a CCO role can- a branding and strategy consultant. informal patterns of collaboration; it not exist in most companies, as they are “Rather, it should be based on a person’s will be less about having specific skills in spread across several business units and track record of driving collaboration out- strategy, human resources, product de- can have conflicting objectives,” said side of a title.” velopment, marketing or information Louis-Pierre Guillaume, head of enter- Indeed, rather than focusing on spe- technology and more about having the prise collaboration at AREVA T&D (now cific titles or skill sets, a company may do essential qualities that foster collabora- ALSTOM Grid), a French energy transmis- best by assessing the number and tion itself — empathy, emotional intelli-

Hal Mayforth sion and distribution company. “I am in strength of a candidate’s connections gence, diplomacy and negotiation.

Briefings on TalenT & l eadership Q2.20119 l atest thinking

Age and Experience Baby boomers are staying on the job longer. Is it good or bad for business? And what about those that follow?

There Is New Value in the Mature Mind

t a time of discussions — and, in ter Cappelli, a professor at the Wharton have a mandatory CEO retirement age of Europe, street demonstrations — about School of the University of Pennsylvania, 65. (Those that do not are overwhelm- the fate of older workers, evidence is and Bill Novelli, a professor at the Mc- ingly run by founders.) This trend toward piling up that people in their 50s and Donough School of Business at George- younger CEOs arises from other factors beyond develop new abilities that make town University, in their book “Managing besides bias, but the preference is clear. them uniquely qualified as entrepreneurs, the Older Worker” (Harvard Business Re- Now, however, research that has ac- ACEOs and other top-level professionals. view Press, 2010). (See accompanying cumulated over several decades is increas- The revelations come as societies article.) Many corporations, of course, ingly being interpreted to demonstrate worldwide debate how long people should work if benefit systems for the aging are to remain solvent and how to prepare for growing talent shortages. Until recently, conventional wisdom has held that once people reach 50 or so, they are on a downhill slide. And their abilities to contribute to the economy are careering downhill with them. Despite antidiscrimination laws, stereotypes about the inadequacies of older members of the work force — that they are slow, for- getful, obtuse in learning new skills, closed to innovation, uncreative, inflexible and costly — have been persistent. And many of these stereotypes have been supported by empirical research. As a result, older people at all skill levels find it much more difficult to find new jobs, and those with jobs find themselves being eased out or laid off. With notable exceptions, even CEOs and other top executives are not immune to the phenomenon. Top executives in the largest companies were in their 60s in the post-World War ll years; in the 1980s, top executives were likely to be in their 50s; now top executives are more likely to be in their 40s, according to Pe-

10 Q2.2011 The Korn/f erry i nsT i T u T e that older people develop attributes that to surgeons to artists — to refute stereo- high-level positions. make them invaluable contributors to types about older workers. Other investi- Their argument relies on successive the productive economy. gators, meanwhile, are homing in on the revisions of the understanding of the It is crucially important for those in upper ranks of the work force and enlist- brain over the last 50 years. The long- corporate management to address the ing recent research on the unique capa- standing notion that all cognitive abilities question of whether older workers — gen- bilities of the aging brain to argue that were developed by early adulthood and erally defined as those over 50— can con- these capabilities are precisely those that thereafter the brain went into a nat- tinue to make valuable contributions in needed by top executives and others at ural, inevitable decline began to change the workplace. The answer has far-reach- the apex of their professions. with the finding in the 1960s that coming implications because current demo- In a paper to be presented early in promised memory in older people was a graphic trends indicate that the work force 2011, Judah Ronch, dean of the Erickson result of disease, not age. After that real- will continue to age indefinitely, well School at the University of Maryland, Bal- ization, experts looked at the cognitive beyond the passing of the baby boomer timore County, and Robert Singh, an as- functioning of the aging brain in an en- bulge. This is because people are living sociate professor at the Earl G. Graves tirely new light. In recent years, research- longer and are much healthier well into School of Business and Management at what used to be considered old age. Morgan State University, write that the Because of a better balance In “Managing the Older Worker,” the mature mind has abilities that are critical between right and left brain, authors draw on research about people for successful entrepreneurs. And they at all echelons of the work force — from say that their research on entrepreneurs older entrepreneurs are less

David Vogin department store workers to airline pilots applies equally to CEOs and others in apt to get bogged down in details and may be better able to come up with holistic, creative solutions to problems,

ers have found that beyond middle age the brain can change, adapt and develop new abilities to meet new challenges. In addition, researchers have found that the coordination between the two sides of the brain — the left, where se- quential, literal, functional, textual and analytic thinking reside, and right, the locale of metaphorical, aesthetic, con- textual, synthetic and simultaneous thinking — improves with age. Research further suggests that with age the brain regulates emotional states better so that people become less impulsive and less driven by emotion. Because of a better balance between right and left brain, older entrepreneurs are less apt to get bogged down in details and may be better able to come up with holistic, creative solutions to problems, Ronch and Singh believe. “They are more apt to be visionaries, to think in metaphors, and to look at ‘what ifs,’” Ronch said. “And, with better

Briefings on TalenT & l eadership Q2.201111 l atest thinking

emotional control, they are better able to for making reasoned decisions in high- Chances are, though, that before stay focused.” pressure situations. such research begins to make significant These attributes would also be highly Using technologies that pinpoint inroads on long-held stereotypes about advantageous for a CEO, Ronch said. The activity centers in the brain, Ronch and the capabilities of people over 50, this modulation of emotional states observed Singh hope soon to embark on research growing demographic will be re-enlisted in the mature brain would be particularly to determine whether older minds in- at all levels of the work force, not only for valuable for CEOs, making them less emo- deed have a greater capacity for entre- their contributions to retirement funds, tional and impulsive and better equipped preneurial endeavors. but for their critically needed skills.

Companies may be marginalizing mature workers at everyone’s peril

hanks to the Great Recession, a sive, both in terms of salary and health sulting, analyzed a wide range of peer- lot of companies have slashed their work care, too slow and inflexible to learn new reviewed research and found very few forces over the past two years, pushing methods and technologies, and too diffi- consistent differences among genera- productivity and profits to record highs. cult to manage. tions in the workplace in terms of em- Many economists and corporate execu- These perceptions, however, are ployee motivation, values, attitudes and tives would call this “creative destruction,” largely inaccurate and “such generaliza- loyalty. Tan unpleasant but periodically necessary tions certainly do not represent good tal- In “Managing the Older Worker” (Har- pruning of outmoded roles and systemic ent management practice,” said Kenneth vard Business School Publishing, 2010), inefficiencies that gives way to the flow- P. De Meuse, associate vice president of authors Peter Cappelli and Bill Novelli ering of innovation and growth. That is research at Lominger International, a concluded, based on cognitive and be- what recessions do, we are told. But this subsidiary of Korn/Ferry International. In havioral research, that for all practical recession may leave a longer-lasting and a 2009 paper, “A Scholarly Investigation purposes “workers with more experience much darker legacy. of Generational Workforce Differences: are almost always better performers This time the ranks of the long-term Debunking the Myths,” De Meuse and on virtually every relevant measure.” unemployed are greater than in past re- co-author Kevin J. Mlodzik, an intellec- When it comes to cost, they said, “The cessions, and they are growing more os- tual property research assistant with differences are, at best, trivial” and argu- sified. They are filled disproportionately Korn/Ferry Leadership and Talent Con- ably more than offset by the better with workers over the age of 50 who may never find their way back into the work force. Ironically, many who had been planning to work past the conventional retirement age in order to underwrite longer life expectancies, higher health care costs and lost savings now find themselves involuntarily retired well before their time. Why is this happening? Conventional wisdom says the occupations and skills of many over-50 workers are defunct, and there will not be enough time for them to retrain and regain their footing before they simply age out of the work force. What is more, companies are shunning older workers, seeing them as poorer per-

formers than younger ones, too expen- David Vogin

12 Q2.2011 The Korn/f erry i nsT i T u T e performance. They point out that the Thomas A. Kochan, a professor at the MIT interesting... market sets wages based on performance Sloan School of Management. “Clearly, FLY THE FRIENDLIEST SKIES OF THEM ALL and experience, not age. They also note the stigma against laying off older work- Singapore Changi Airport has earned bragging that although the cost of medical claims ers has been significantly diminished if rights as Airport of the Year, according to a for individuals over 50 is about twice that not eliminated. I see this largely as a recent global passenger survey. Amenities for those in their 30s and 40s, older breakdown in the social contract at work. include a swimming pool and Jacuzzi, 24-hour workers have fewer dependents, so their I hold employers accountable [as well as] massage and spa facilities, video games, live overall impact on employer health plans the larger society for not protesting it bands, butterfly garden and free movies. is often less than that of their younger with sufficient vigor and voice.” Rounding out the top five were: colleagues. Older workers are also subject to dis- 2. Seoul Incheon International Airport “Companies are not being intelligent crimination in the job market. Cappelli 3. Hong Kong International Airport about this,” said Lotte Bailyn, professor and Novelli cite studies in which résumés 4. Munich Airport emerita at the MIT Sloan School of Man- reflecting identical skills are submitted by agement. “If they provided good, part- applicants of different ages, and the 5. Kuala Lumpur International Airport time options including hourly pay and younger candidate is interviewed or hired Source: Skytrax, 2010 benefits, they could then get the wisdom 40 percent more often. What is more, and experience of older workers without many current recruiting tactics specifi- high salaries.” That would also provide cally weed out older workers. For exam- something many companies profess to ple, it is common, though potentially need: a just-in-time solution to meet illegal, for job postings to include experi- peak demands and staff special projects ence limits requiring, say, five to 10 without incurring significant onboarding years of experience, but no more. Older costs. applicants, if they receive any response Nevertheless, despite the compelling at all, are often told they are “overquali- business case that can be made for re- fied” for the position. taining and hiring older workers, hiring One executive recruiter said that age managers and supervisors continue to discrimination is “even worse than you view them negatively. “The explanation is know. I am over 50 myself, and it is very less about rational calculations of costs painful to do this work when so many tal- and benefits and more about psychologi- ented and experienced people are basi- cal factors — including discrimination,” cally shunned by those doing the hiring. Cappelli and Novelli wrote. The law is completely ignored in most Although there are clear laws against cases.” Without such a change in thinking, it, age discrimination in the workplace is Clearly, the government must do a things are likely to get grim. If an entire common. According to a RoperASW sur- better job of enforcing the law while pro- cohort of still-productive workers is al- vey, two-thirds of people over age 45 say viding incentives for companies to hire lowed to simply fade away before its time, they have experienced or witnessed it in and retain older workers, but it is even needlessly sacrificed to scorched-earth the form of layoffs or denied promotions. more crucial that employers reject the cost cutting and unjustifiable prejudices, One former Fortune 500 executive said, psychology of willfully and systematically there will be unsustainable stress on pub- “The trick to getting around the discrimi- writing off older workers. Mlodzik, of lic resources, especially if the pattern is nation issue is to call layoffs a ‘reorgani- Korn/Ferry, believes that will begin to repeated with future generations. Better zation.’ A department is simply done happen when there is greater under- to solve the problem now and in the pri- away with, and each employee is then standing in boardrooms and executive vate sector. “Efforts to make better use of given the opportunity to compete for jobs suites of the evolving science of talent older individuals in the workplace repre- in the ‘new organization.’ Well, guess management. Then, “Business decision sent one of the greatest opportunities what, the 50-and-over crowd doesn’t makers, charged with ensuring share- available for improving society,” said fare too well. This type of discrimination holder returns at all costs, will be enabled Cappelli and Novelli. “It is about the only is hard to prove, but it happens every day.” to choose other avenues for cost reduc- way to provide the resources necessary

Hal Mayforth “It is a big and growing problem,” said tion and restructuring,” Mlodzik said. to pay for longer lives.”

Briefings on TalenT & l eadership Q2.201113 14

view point a contact sport leadership as Q2.2011 world, a good leader gives most of the credit for success to the weigh the headaches when you and your comrades prevail. nate, lead, direct, supplyandsatisfymultipleconstituencies,nate, lead,direct, black andblue. the day,frequency butbytheendof thebodyisstill On agoodday, thejabstostomachoccurwithless tion and resources. Whether in the profit-making or nonprofit tions, CEOscoordi- whetherornottheorganizationsareflat. toward youwithalookthatsaystheyareabouttoteartheearsoffyourhead.PerhapsI Some say it is a thankless job. Others say the rewards far out- Being the leader cle of one’s professional career, an appointment that comes that appointment career,an professional one’s of cle even when some of themcompetewitheachotherforatten- even whensomeof others on his or her team and accepts most of the blame alone. exaggerate, butthenagain,maybenot. or pads,yousimplyholdyourgroundaspeoplewearingsharplyspikedshoescharge interesting... Source: Gartner, Inc.,2010 and damagedbyonlinesabotage. nation’s criticalinfrastructurewillbedisrupted By 2015,itispredictedthatatleastoneG20 CYBERTHREATS GROWING Historically, becomingaCEOhasbeenseenasthepinna- CEOs have responsibility for all aspects of their organiza- On abadday, thedescriptionisprettyaccurate.

ofamajororganizationissimilartoplayingrugby:Withnohelmet by Stephen Joel Trachtenberg

(students andtheirfamilies),pushingforaneverhigherlevel youthful indiscretions. regulators, often believed by the academy to be more intru- more be to academy the by believed often regulators, rate CEO, isalifestyledecisionaswellcareer choice.This with prestige,agoodcompensationpackage,visibility, recog- nition byone’s peersasaleaderandseatatthehigh-rollers’ with helmetsandpads. and the United Way torecallhowscandalscallintoquestion and theUnited and states’ attorneys general are continually looking at the looking continually are general attorneys states’ and a robust field of competent candidates. The topjobwaslong competentcandidates.a robustfieldof fill to searches In consequences. without not is reality new propriety by a few in the corporate and nonprofit world nonprofit and corporate the in few a by propriety theAmericandream. part of pealing. Other positions provide many of therewards,pealing. Otherpositionsprovidemanyof along pose furtherconstraints. table. Climbing the ladder of successtotheverytophasbeen table. Climbingtheladderof the melancholy stories of Enron,AdelphiaCommunications the melancholystoriesof ties. Campus pranks were dismissed as overexuberance, or overexuberance, as dismissed were pranks ties. Campus the localgovernmentpaidlittle attentiontocampusactivi- has fallenandtomanypeople,thepositionisseenaslessap- how organizationsarebeingled.PublicconfidenceinCEOs heavy lifting. Alumni were caring and forthcoming with forthcoming and caring were Alumni lifting. heavy donations, students andfacultywererelativelypassive, leadership of organizations,leadership of fromcollegestocorporations. ers aretiedbyhoveringaccreditingagenciesandgovernment spoiled thelandscapeformany. Oneonlyhastolookat sive than constructive; the rising expectations of customers sive thanconstructive;therisingexpectationsof seen as a sinecure, carrying prestige without the need for need the without prestige carrying sinecure, a as seen open college presidencies, it is increasingly difficult to find to difficult increasingly is it presidencies, college open of personalizedserviceinbothacademicsandamenities,of im- In this new environment, the hands of university lead- university of hands the environment, new this In But thensomethingchanged.Overzealousnessandim- Deciding to become a university president, or a corpo- a or president, university a become to Deciding Congressional oversight committees, the news media news the committees, oversight Congressional The Korn/ f erry i e T u T i nsT

Hal Mayforth Briefings onTalen T Douglas Menuez/Getty Images The recenteconomiccrisishasaddedenormouspressuresto The retire early. Only months ago, the head of a major pharma- major a of head the ago, months early.Only retire members of Congress,members of collegepresidentsarenowoutalmost ful sanctuaries: Faculty asked for higher salaries and better and salaries higher for asked Faculty sanctuaries: ful ing a stand and standing for something. As Thomas Jefferson ing astandandstandingforsomething.AsThomas ity to it, and one hopes, a moral quality,moral and hopes,a too.Leadership one and it, to ity alumni expectedwinningbasketballandfootballteams. Like along a given path to a common goal. There isaspiritualqual- along agivenpathtocommongoal.There ple seek the mantle. University presidents step down; CEOs down; step presidents University mantle. the seek ple presidents orCEOs, their butinallcasesfortakingchargeof tion, on behalf of othersaswellforyourself.Itisabouttak- of tion, onbehalf the abilitytomakeadecisionwithlessthanperfectinforma- the lives of academicandbusinessleadersalike. the livesof local for payments for looked mayors ills; its all of world the teaching studentsskillsnotnecessarily forbecomingcollege learned traits. Itisaboutinspiringothers, buildingteamsand laboratories; students protested injustice and strove to cure to strove and injustice protested students laboratories; government services, like fire and police protection; and protection; police and fire like services, government causing individuals, organizationsandinstitutions tomove ceutical company resigned, saying the job had worn him out. ceutical companyresigned,sayingthejobhadwornhimout. every night of theweekraisingmoney.every nightof ethics should be linked. Leadership is also about courage about also is Leadership linked. be should ethics said, “In matters of style,swimwiththecurrent;inmatters said, “Inmattersof own careers and rising to the top of whatever professionthey own careersandrisingtothetop of principle,standlikearock.”of Leadership is complex is Leadership The sadfactis, whenthejobisall-consuming,fewerpeo- The By the 1960s, however, campuses were no longer peace- longer no were however,1960s,campuses the By Programs in leadership are springing up on campuses, on up springing are leadership in Programs &l — eadership a combination of innate and innate of combination a —

your neck or have a very bad injury,” Cosslett said. To be a be To injury,”said. bad Cosslett very a have or neck your Being a scholar of theRenaissanceisnotsameasbeinga Being ascholarof Renaissance maninthe21stcentury. met orpads. despitethecourses, And,tobehonest, notevery- fact, as a leader, you can have teammates and even followers even and teammates have can leader,you a as fact, ing themtowhatisdescribedasthe“behind-the-scenesview” ing onaroundyou.” who arenotalwaysfriendsandevenrivals.) and ambiguity. And,justas inrugby, youneedtorelyonyour body canbealeader. To a bealeader meansyouarepartof become academic administrators, through programs expos- programs through administrators, academic become positive. That isnecessary, Theyalsoneed positive. That butnotsufficient. team, evenwhenyouarenotquiteamember. teammates because, “there’s a chance you’re going to break to going you’re chance “there’sa because, teammates to understandthatimportantjobscomewithtension,stress and confident be must leaders said Group, Hotels tinental daunted) toplayafullcontactsportlikerugbywithouthel- leader, youhavetokeep“the flag flyingnomatterwhat’s go- unlike rugby unlike Stephen Joel Trachtenberg is president emeritus and university profes- enter. At Rutgers University, Ph.D. students are learning to learning are students University,Rutgers Ph.D. enter.At sor of public service at the George Washington University and chairman based in Washington, D.C. of the complexities of running large, diverse organizations. diverse large, running of complexities the of of the Education Specialty Practice at Korn/Ferry International. He is In arecentinterview, InterCon- CEOof AndrewCosslett, But what is often difficult to teach is that leadership that is teach to difficult often is what But Not everyone is confident enough (or sufficiently un- sufficiently (or enough confident is everyone Not — can be both a group and a solitary sport. (In sport. solitary a and group a both be can Q2.2011 —

inTervieW

The Man Behind TheMiracle An Interview with Laurence Golborne, Chile’s Minister of Mining

hen Laurence Golborne made it to the San Jose mine in a desert area in the north of the country, he found not only a mine that had collapsed, but also hundreds of people camped out. These people, relatives of the 33 miners who were trapped underground, were without Wwater, food, heat or sanitation facilities.They were waiting to learn about the plight of the miners, and they were skeptical of anything that might be told to them, especially by the government.

Golborne’s first priority was to re- ists who had come from around the Chile, with an 87 percent approval rat- spond to the needs of the miners’ fam- world to cover the crisis. Frequent re- ing. He also had 54,000 followers on ily members, win their trust and dispel ports detailing the plight of the miners Twitter, and a steady stream of visitors the rumors that were circulating. Only were sent out via television, radio, the to his Facebook page. after the family issues were addressed Internet and print publications. At the Trained as a civil engineer in Chile, could he focus on the technical problems time of the rescue, 70 days after the with advanced studies in the United of a rescue. mine entrance collapsed, the global States, Golborne was uniquely quali- Golborne had to act quickly. The ap- audience for information about the fied to manage the complicated task of proach he took was to be open and hon- trapped miners was estimated to be rescuing the miners. Before his appoint- est with the families of the miners and around three billion people. ment as minister of mining, Golborne to empathize with their plight. He ate While politicians often try to dis- was CEO of Cencosud S.A., a South meals with them, moved to the desert tance themselves from a disaster or a American retailer with $10.5 billion in and stayed with them, and continued to relief effort, because of its often-adverse revenue and 100,000 employees. Gol- keep them informed. Shortly afterward, effect on their popularity, Golborne em- borne also did stints in the software President Sebastián Piñera authorized braced the challenge, head on. Not only and utilities industries, where he ex- him to supervise all aspects of the rescue. did the rescue succeed, but at the con- celled at managing complex projects. Golborne oversaw the rescue un- clusion of the rescue effort, Golborne What follows are excerpts from a der the watchful eyes of 1,400 journal- was the most popular politician in conversation between Laurence Gol- 18 Q2.2011 The Korn/f erry i nsT i T u T e Briefings onTalen T Gobierno de Chile (2) GOlbOrnE: I was in Ecuador accompany- It wasn’t thateasygettingfromQuito, The president asked me to go back to back go to me asked president The Chile andseewhatwecoulddotohelp. when Piñera Sebastián President ing we heard the mine entrance collapsed. entrance mine the heard we the Chilean miners. The miracle team: Laurence Goldborne (with radio) helps direct the rescue of borne and Joel Kurtzman, editor in chief Ecuador, toSantiago, Chile, andthento the entrance to the mine there were there mine the to entrance the Ifoundwasasit- What tually gotthere. the mine.ButIcaughtaflight and even- hundreds of people of hundreds uation that was very complicated. At complicated. very was that uation Briefings: How did you learn about the of of the miners. rescue the on Talentabout & Leadership, Briefings International Korn/Ferry The of disaster? — the families of of families the &l eadership mors. People said things like: “They mors. Peoplesaidthingslike:“They mendous, ru- andtherewerealotof mine, andwedidn’t knowtheir my firstreactionwastogetin touch found themandtheydon’t wanttotell.” and whatneededtobedone.So with theresponsiblepeoplewho ran the lack of informationwastre- the lackof time howmanypeoplewereinthe the at knew one No miners. the the minetoaddressemergency. So, there isaproblemlikethis, itisthere- the mineandfindoutwhatthey were know that the miners are all dead. They know thattheminersarealldead.They know howthecollapsehappened So the situation was difficult. So thesituationwasdifficult. condition either.We alsodidn’t sponsibility of thecompanythatowns sponsibility of Now, normallyinChilewhen GOlbOrnE: Inthefirsthours wedidnot focus on the technical issues. Instead, issues. technical the on focus we took action in two areas. First, we First, areas. two in action took we to understandthattherescuewouldbe ties of thecompany.ties of help them.Butveryquicklywebegan doing andfindouthowwecould doing andfindouthowwecould Once you saw the rescue was beyond complicated andbeyondthecapabili- the capabilities of the mining company, what did you do? Q2.2011 19 telling the truth was a verY important practical issue. It was how I fought the rumors and won the trust of the people.

acted with regard to the welfare of the made an inventory. tions. The first stage was much more families. The mine was in the middle of You see, among the rumors that stressful because we were dealing with the desert, and the place was not pre- people were circulating were those that life or death questions and with tre- pared to receive hundreds of people who said there were illegal people working mendous uncertainty. The second stage had come there and were now waiting in the mines. So, in the first hours, our was complex, but it was less stressful to find out what happened. People made activities were focused on building a and painful. fires at night and didn’t have food. They communication bridge and surveying didn’t have sanitation or water. So our the situation. After that, when I in- Why less stressful? You still had to first response was to provide food and formed the president about what we find a way to bring the miners out. shelter to the families and to give them knew, and he visited the mine, he in- Wasn’t it still risky? wood for fires so they would keep structed me to take over the manage- GOlbOrnE: Yes, that’s true. But it was less warm at night. We also had to bring in ment of the situation. That’s when I stressful because we knew what it would restrooms to take care of their sanitary was empowered to act. take to bring the miners out of the mine, needs. We worked with the Ministry of Now, I want to emphasize that this and we knew that it was only a matter of Interior Affairs to create ways to protect is not a very common decision. Nor- time and money and resources — assum- the families and to give them support. mally, in other disasters, the political ing there were no major medical emer- While we were doing that, we tried authorities keep a distance because it’s gency underground. We felt the second to establish good communications links risky for them to get involved. So I’m stage was the technical stage, and we with the families, and I made a commit- highlighting the president’s decision felt we had a lot of good technical exper- ment to them that I would be very sin- because it was made without political tise and experience. cere and would give them information considerations and it enabled me to as soon as I had it and that I would not take control, which was very critical Did the families have access to the lie to them. I made it very clear to them to the operation. From that moment, media? that I would give them correct informa- we started to make decisions and take GOlbOrnE: Yes. The media problem was tion. More than speeches, it was impor- part in all the technical meetings. We one of the key issues we had to deal tant for them to hear this commitment. started to drill holes in the ground — with. They got involved in the process Telling the truth was a very important probes — to get in touch with the min- from the beginning, and they created a practical issue. It was how I fought the ers, and we also got in touch with all lot of expectations. They established rumors and won the trust of the people. the mining companies in Chile to get themselves in the desert with the fami- Keep in mind, putting out correct infor- access to their technical expertise. lies and they had contact with the fami- mation is not what politicians normally lies. I have to say, some people in the do. So the people had a negative atti- How did you structure the work? media even tried to pit the families tude toward us at the beginning, and I GOlbOrnE: It was a complex situation, against us. In addition, there were polit- had to change that attitude by being and I divide it into two separate stages. ical issues as well. So the situation was honest and sincere. The first stage took place during the very complicated. But we did a good job initial 17 days, when we didn’t know if and the families gave us their trust. How did you create a feeling of trust? the miners were alive and we didn’t GOlbOrnE: First, by living there. And I know anything about the conditions Then what? empathized with the people, with their they were in. In the first 17 days, there GOlbOrnE: When we found out the grieving and their suffering. I really did. was a lot of uncertainty and tremen- miners were O.K. physically and psy- Not only me, but everybody who was dous pressure from the families, as you chologically, we were suddenly in a dif- working with me. We all empathized might expect. The second stage came ferent state. We changed. You know, with the families and their situation. after we found the miners and we what really surprised me was the level Then, I established the open com- learned about the condition they were of strength of the miners and their dis- munication policy. I used government in. The second stage lasted 53 days, cipline. The first time after we sent a resources to find out how many people right until the moment the last miner telephone down into the mine and I were in the mine and how many fami- was brought up to the surface. In each called and said, “This is Laurence Gol- lies were there in the desert and we of these stages we faced different situa- borne, minister of mining,” the miner 20 Q2.2011 The Korn/f erry i nsT i T u T e Briefings onTalen T Top: Associated Press. Bottom: Ministerio de Minería de Chile GOlbOrnE: Well, youhavetoremember GOlbOrnE: you on with my boss.” It was very funny, mine kepthisorganizationintactand miner whowasinchargedownthe manage it and to keep the group to- group the keep to and it manage for them. They didn’tanybody knowif for them.They in the mine were not a group of friends in theminewerenotagroupof if they would be found. So they had their who workedtogether. them Manyof didn’t know was lookingforthem.They at the other end said, “Hold on, I will put but whathesaidshowedmethatthe that hewasstillmanaginghispeople. teresting how the dynamics of themin- teresting howthedynamicsof that thepeopledowninminehada didn’t evenknoweachother. Soit’s in- Didn’t you expect the miners trapped gether. Now keepinmind,thepeople underground to remain disciplined crisis too. Their first17dayswereawful crisis too. Their ers worked out and how they stayed they how and out worked ers and organized? own crisis. And yet they were able to able were they yet And crisis. own &l eadership GOlbOrnE: Inthefirstfewdays, wees- mine was even alive. And fourth, we fourth, And alive. even was mine mind wedidn’tanyoneinthe knowif for help from Codelco, the world’s largest in thetechnicalarea. istry of Health. That includedplanning Health.That istry of in mattersrelatingtothemedicalas- was abletokeepthegrouptogether. when wefoundpeople a lot of experienceinundergroundop- a lotof and management of the media. Third, themedia.Third, and managementof areas. familysup- intheareaof First, pects of thesituation,throughourMin- pects of Second,inthecommunication port. together, andhowthesupervisor tablished anorganizationinfourmain how wewouldmanagethesituation How did you organize the rescue copper miningcompany, becauseithas erations. SoIcalled Codelco’s chairman established anorganizationalstructure operationally? Now, inthetechnicalareaIasked — keeping in The firstgroupfocusedonthegeneral The really didanamazingjob. cutsix- They most experiencedpeopletohelpus, from anyperson,anywhere. inch diameter holes through 2,300 feet inch diameterholesthrough2,300 which hedid. and askedhimtosendhis and askedhimtosendhis all the technical alternatives and of of and alternatives technical the all probe companies. We set up a third a up set We companies. probe specialized from were who people probes that was separated into three groups. three into separated was that testing purposes. This teamwasledby testing purposes. This whichyounormallydofor the rock, group and put it in charge of evaluating group andputitinchargeof group was in charge of sending in sending of charge in was group coordination of the rescue. The second therescue.The coordination of evaluating any idea that we received we that idea any evaluating of of solid did They rock. it with incredible We then set up a technical team technical a up set then We Now, Ihavetosay, the probeteam — drilling narrowholesthrough Q2.2011 21 22 GOlbOrnE: Afterwereachedtheminers suggestions We gotalotof GOlbOrnE: Q2.2011 find theminerswhowouldthenpress The micewouldrun intothemineand The feet belowtheearth,orhowpanic from around the world, and some of of some and world, the around from ident gavemepermissiontogoahead we hadtwodifferentalternatives. But We orderedma- with therescueplan. with panicbuttonstiedtotheirbellies. accuracy, wellbeyondwhatisnormally and found out they were O.K., thepres- and foundouttheywereO.K., alternative that was very different. We quite remember I that one ample, buttons would work. We receivedalot buttons wouldwork. probes aretheonewhodidmiracle. What happened after you found the the panic buttons. person, of The course, then the group that was making the making was that group the then ex- For bizarre. quite were ideas these holes for the probes designed a third a designed probes the for holes did notexplainhowthesignalwould done. The people who made these made who people The done. Did you get a lot of suggestions and get up to the surface from thousands of get uptothesurfacefromthousandsof chines and we started to work. At first, Atfirst, chines andwestartedtowork. clearly wasfromapersonwhosaidwe simply with“no thanks.’ should send1,000 miceintothemine advice? of them,alwayspolitely,of butsometimes of those suggestions and answered each miners? interesting... Source: LiveScience,2010 income orloweducationhavetobemoreresponsiveothers togetby. the wealthy. Researchers saythereasonmaybethatpeoplewithlow A newstudyfindsthosewhoarepoorbetteratempathy than MONEY CAN’TBUYYOU …SOCIALSKILLS? GOlbOrnE: Yes, we started in parallel GOlbOrnE: Awasdesignedaround Plan 6 inchesto12andthen28 For Plan B,For Plan wehadtobuildanotherma- radical idea, but I approved it. Sowe radical idea,butIapprovedit. inches. andit Bwasthefastest, Plan was theplanthatsucceededinrescuing would widentheprobeholes. B Plan we could use one of theprobeholes we coulduseoneof with the three plans. It was a matter of very creative,andtheysuggested and useitfortherescue.Itwasavery and time was of the essence. While we a machinethatwasusedinthemineto also knew it was very psychologically plans operatinginparallel. What were the other two plans? the miners. that wasusuallyusedtoexploreforoil. that wehadalreadydugandenhanceit knew that there could be a medical a be could there that knew succeed, would which sure for know designed aroundadrillingmachine didn’t foresee any crisis, we always we crisis, any foresee didn’t life and death. In addition, we didn’twe addition, In death. and life Did you continue with all three plans called for widening the probe hole from chine inCanadawithhammersthat called it Plan B.called itPlan probeteamwas The cut ventilationshafts, Cwas andPlan emergency in the mine at any time. We at once? started therescueprocesswiththree GOlbOrnE: Ididn’t paythatmuchatten- experiencetaughtme GOlbOrnE: The 33 minersunderthegroundthan with We could keep the miners in good shape It was more than 80 degrees Fahrenheit But human life has no price and the and price no has life human But rescue effort. Everybodywantedtoco- rescue effort. range of $20 million,soitwasn’trange of cheap. resources we had available for the res- the for available had we resources more concerned with the lives of the of lives the with concerned more fastest. The cost of therescuewas inthe costof The fastest. ing, and it taught me that if a country or ing, and it taught me that if ing theminers. They Everybodyfeltit. watching. what wedidasacountryandsoci- second The on. early failures had we We neverlost worked ontherescue. were three teams working 24 hours a hours 24 working teams three were working separately, andweusedallthe we would really have a problem. with 95percenthumiditydownthere. a societygetsunifiedaroundanobjec- and physically stressful for the miners. and well fed, but if we had an emergency, president told us that. president toldusthat. put asidepoliticalconsiderations, reli- portant messagewegotfromthemin- What did your experience rescuing What was it like having three billion to the threebillionpeoplewhowere tion to it. I was focused on this isalessonthatIthinkweas tive, itcandoveryimportantthings. So did we how to relates learned I thing peoplewho true forthehundredsof two things. thesinglemostim- First, day on all three plans. Plan B was the was B Plan plans. three all on day gious considerationsandsocialconsid- country canapplytootherchallenges. sav- country unifiedaroundthegoalof cue. We didn’t spare any effort. There effort. any spare didn’t We cue. erations. Nothingthe gotinthewayof whole the that was saw I What ety. ers was:Neversamewas giveup. The operate duringthistime.Itwasamaz- our faith and we kept trying, even when the miners teach you? people watching your every move? — So, we started with all three groups the rescue process. I was much was I process. rescue the The Korn/ f erry i — and devoted e T u T i nsT

Hal Mayforth HOW TO LIVE UNITED: jOIN HANDs. open your heart. LEND YOUR MUsCLE. FIND YOUR VOICE. GIVE 10%. GIVE 100%. GIVE 110%. GIVe an hour. GIVe a SaturDay. thInK oF We BeFore Me. REACH OUT A HAND TO ONE AND INFLUENCE THE CONDITION OF ALL. GIVE. ADVOCATE. VOLUNTEER. LIVE UNITED® Want to make a difference? help create opportunities for everyone in your community. united Way is creating real, lasting change where you live, by focusing on the building blocks of a better life– education, income and health. that’s what it means to Live united. For more, visit LIVEUNITED.ORG. Credit Credit Innovation Where T Runs Deep rogative. Western companiescookupnewideasin their rogative. matter of technological breakthroughs matter of novated. The old model of innovation is being turned being is innovation of model old The novated. tion arecomingfromthemostunexpectedplaces. that keepmanagementthinkersupatnight. upside down. The mostinterestingnewideasoninnova- upside down.The Companies thatcanout-innovatetheircompetitors laboratories athomeandthen exportthemtothedevel- sumptions. The first is that innovation is a Westernpre- firstisthatinnovationa sumptions. The delight their customers and conquer new markets. The delight theircustomersandconquernewmarkets. The oping world. The secondisthatinnovation isprimarilya oping world.The other reason is more subtle. Innovation is itself beingin- other reasonismoresubtle.Innovationitself The old model of innovation was based on four as- four on based was innovation of model old The One reasonforthisinterestininnovationisobvious. ment todaythaninnovation.Howdocompanies into products?Andhowdotheythisnotjust into products?Andhowdotheythisnotjust generate newideas?Howdotheyturnthoseideas generate newideas?Howdotheyturnthoseideas once but a dozen times? These arethequestions arethequestions once butadozentimes?These once butadozentimes?These here isnomoreexcitingsubjectinmanage-manage By Adrian Wooldridge — innovaTing blue-skyideas Q2.2011 25 that are embodied in revolutionary new products. The third logos of familiar giants, such as General Electric and I.B.M., is that innovation is the business of the private sector rather and others bearing the logos of emerging world giants, such than the public sector or the voluntary sector: private indus- as Wipro IT Business and Infosys. Bangalore’s Electronic City try thinks up new ideas and everybody else simply imitates is one of hundreds of electronics cities that have sprung up them. The fourth assumption is that innovation is a matter across the developing world. These hundreds of electronics of inspiration rather than perspiration: the primary busi- cities contain thousands upon thousands of researchers who ness of innovators is to allow a thousand flowers to bloom. are all trying to come up with the next great innovation. It would be too much to claim that a new model of in- The emerging world has gone into the business of pro- novation is emerging — we are witnessing the emergence ducing global companies. There are now 14,000 multina- of dozens of competing models rather than a single new par- tionals based in the emerging world, according to the United adigm. But every one of the basic tenets has been vigorously Nations Conference on Trade and Development’s World challenged in recent years. Investment Report. The best of these companies — such as 1. Innovation is coming from the rest as well as the Infosys and Embraer in Brazil — are becoming global giants. West. Western multinationals are increasingly willing to They are snapping up Western companies: in 2007-8 Tata do research and development in emerging markets. Devel- Steel purchased Corus Group, an Anglo-Dutch company, for oping-world multinationals are moving up the value chain $12 billion; Hindalco Industries bought Novelis, a Canadian and becoming innovators in their own right; there is no aluminium maker, for $6 billion; and Tata Motors bought reason to think that the next big information technology Jaguar Land Rover from the Ford Motor Company for $2 breakthrough will come from I.B.M. rather than Infosys billion. And these companies are becoming leaders in inno- Technologies of India. vation as well as cost reduction. They are no longer content 2. Innovation is no longer focused on technological to let Western companies define the future. Instead, they breakthroughs. The cutting edge of innovation at the mo- are investing in research and development and pioneering ment is frugal innovation. The emphasis is on reducing new ideas. Huawei Technologies, a Chinese telecommuni- costs radically by stripping out nonessential functions — cations giant, is currently the fourth largest patent applicant making products “thinner” rather than “fatter.” in the world. 3. The nonprofit sector is coming up with valuable Western multinationals are also moving some of their ideas about how to improve business models. It is also most sophisticated work to emerging markets. Companies pioneering new ideas in motivating workers (particularly on the Fortune 500 Global list have established 98 research younger workers) and doing more with less. Even the and development facilities in China and 63 in India. GE public sector is coming up with new ideas, thanks to the Healthcare has spent more than $500 million in the past imperative of budget cuts. few years building a 55,000 square foot research and devel- 4. Management gurus are paying more attention to opment center in Bangalore, the biggest it has anywhere in the perspiration side of the equation. This is reintroducing the world. Cisco Systems is spending more than $1 billion to a set of characters that were almost written out of the inno- establish a second global headquarters —Cisco Globalisation vation script during what might be called the Google era of Centre East — in Bangalore. Microsoft’s research and devel- innovation: old-fashioned big companies. opment center in Beijing is the company’s largest outside In brief, innovation is becoming polycentric. Not so of its headquarters in Redmond, Wash. I.B.M. now employs long ago, anybody who was interested in innovation fo- more people in India than in America, and Accenture has a cused on Silicon Valley. Gary Hamel wrote about building quarter of its work force in India. “Silicon Valley inside.” A dozen management books tried to The emerging world is rapidly catching up with the de- divine the secrets of Google’s success. Today, the new fron- veloped world in terms of classic innovation. The developed tiers of innovation are being staked out in lots of different world’s share of global research and development spending places and lots of different forms— in Shanghai as well as shrank from 83 percent in 2002 to 76 percent in 2007, ac- San Jose, Calif., in the Red Cross as well as Google, in Mer- cording to a recent Unesco report on research and develop- cedes-Benz USA as well as the latest computer startup. ment. The proportion of researchers in developing countries increased from 30 percent in 2002 to 38 percent in The Globalization of Innovation 2007. And the proportion of scientific papers published in merican and European politicians should all be the developing world increased from 16 percent to 25 per- given a compulsory tour of Electronic City on the cent. China is on the verge of overtaking Europe and the A outskirts of Bangalore, India, in order to have United States as home to the world’s largest number of sci- complacency beaten out of them. Electronic City contains entific researchers. a vast array of corporate buildings — some bearing the Dramatic as all this may be, something even more 26 Q2.2011 The Korn/f erry i nsT i T u T e Briefings onTalen T Lou Brooks Airtel, an Indian mobile company that charges some of the Airtel, anIndianmobilecompanythatchargessomeof United States and France and to scour the world for prod- for world the scour to and France and States United members in its research and development department. By members initsresearchanddevelopmentdepartment. méticos, hascomeupwiththe aBraziliancosmeticsgiant, interesting is going on: The emergingworldiscatchingup interesting isgoingon:The idea of “lean R&D.” The company releases about 150 new 150 about releases company R&D.” The “lean of idea with the developed world in terms of managementinnova- with thedevelopedworldintermsof ness support to I.B.M. and the management of itstransmis- andthemanagementof ness supporttoI.B.M. they And culture. indigenous of richness the and workers are basedinthedevelopingworldproducinginnovative nues arederivedfromproductsthatwereintroducedwithin by created problems management the with grappling are primitive infrastructure. They arecreativelytakingadvan- primitive infrastructure.They products a year. About 40 percent of the company’s reve- company’s the of percent 40 About year. a products breakneck growth. tracted out everything but its core business of sellingphone tracted outeverythingbutitscorebusinessof tions as well as research and development. Companies that Companies development. and research as well tions as training. The companyhasgrownfromabout10,000 em- training. The to newproblems. Infosys, agiantininformationtechnology, the in universities with partnerships numerous form to the pasttwoyears. Butthecompanyonlyhasabout 150staff localopportunities,tage of young suchastheabundanceof has appliedmassproductiontechniques toeducationand lowest fees in the business but is worth $30 billion, has con- ucts thatitcanlicense. calls, handing over network operations to Ericsson, busi- Ericsson, to operations network over handing calls, comparison, L’Oréal has3,000. Natura Cosméticos’s trickis companies havetakenoutsourcingtonewlengths. Bharti sion towers to a third independent company. Natura Cos- company.Natura independent third a to towers sion solutions to local problems such as weak institutions and institutions weak as such problems local to solutions They are reinventing classic business models. Some models. business classic reinventing are They Some companieshaveappliedclassic businessmodels &l eadership problems created by breakneck growth. are grappling with the management advantage of local opportunities. And they to local problems. They are creatively taking world are producing innovative solutions Companies that are based in the developing first, customerssecond”hismantra.HebelievesthatHCL’sfirst, (even if whatneedstobefixedistheirbonuses).Hehasin- (even if million applicants a year. The company has responded to responded has company The year. a applicants million ment team,evengoingsofarastoposthisownevaluation founder of theNarayanafounder of HrudayalayahospitalinBangalore, future lies in providing highly customized solutions for for solutions customized highly providing in lies future in-time techniquestorecruiting.Itsiftsthroughitsmillion who arewelltrained.Butitalsosendsitsworkerstoregular applicants forpeoplewhoareeducableratherthan archy should point downward to the frontline workers (who as muchautonomypossible.Employeescansubmitelec- as possibletoassistantsandmakessurethatheartsurgeons ployees in2000 tomorethan100,000 today. Ithasalsobe- breaks downworkintoitscomponentparts, givesasmuch spe- and scale of economies of combination a that believes this by introducing a mixture of massproductionandjust- this byintroducingamixtureof the boss. of theCEO.”the office Inhisview, theclassiccorporatehier- troduced 360-degreefeedbackfortheentireseniormanage- tronic “tickets” onwhatneedstobefixedwith thecompany tal has 1,000 beds (versus an average of 160 beds in American training coursesinordertoupgradetheirskills. DeviShetty, heart hospitals), and Dr. Shetty and his team of 40-odd car- 40-odd of team his and Shetty Dr. and hospitals), heart heartsurgery.happily boaststhatheistheHenryFordof He do the real business with clients) rather than upward to upward than rather clients) with business real the do diologists performabout600operationsperweek. come such a legend in India that it attracts more than one than more attracts it that India in legend a such come cused onattractinghigh-qualityworkersandgivingthem fo- has he so, do To solutions. identikit than rather clients concentrate onlyontheircoreexpertise.Hisflagshiphospi- heartsurgery.cialization canradicallyreducethecostof He software company in India, has made the phrase “employees on the Web.on the Hearguesthathismissioninlifeisto “destroy Vineet Nayar,on theirhead. HCLTechnologies, theCEOof a The emergingworldhasalsocomeupwitharadically The Some companies are turning classic business nostrums Q2.2011 27 new form of innovation that has variously been called “re- The more you can squeeze out verse,” “frugal” or “Gandhian” innovation. The makers of “Mad Men,” a hit television show about life in Madison Ave- costs, the more you can reach cash- nue’s advertising industry in the 1960s, go to extraordinary lengths to make sure that every prop that they use — every strapped consumers. And the more cocktail glass and every kitchen appliance — is completely in keeping with the period. In so doing, they have produced cash-strapped consumers you can an interesting essay on innovation. These props usually reach, the more you can justify your have one thing in common: They are based on the idea that more is better. The cars have elaborate tail fins. The kitchen paper-thin profit margins. appliances have an embarrassment of buttons. Makeup cases contain a hundred different shades of lipstick. For decades, product innovation was about the art of addition. Companies competed to add functions to their sumers you can reach, the more you can justify your paper- gadgets (e.g., cameras to phones or scanners to copiers) or thin profit margins. flourishes to their designs. In the emerging world, product High-end and low-end innovations frequently go hand innovation is increasingly about subtraction. Companies in hand. Companies that are based in the emerging world are competing to produce the simplest product for the low- are now producing a growing number of classic break- est price, preserving the essential value of a product, but through innovations. Kenya is a world leader in mobile removing all the unnecessary bells and whistles. money — using mobile phones to make payments. Asia The best-known example of frugal innovation is the leads the world in video games. Microsoft’s research labora- Nano, Tata Motors’ $3,000 car. But there are a growing num- tory in Beijing has produced clever programs that allow ber of other examples. General Electric has produced a $400 computers to recognize handwriting or morph photo- electrocardiogram. Tata Consultancy Services and Tata graphs into cartoons. Chemicals have cooperated on a $30 water purification de- The Pupil Becomes Teacher vice. Godrej & Boyce, one of India’s oldest industrial groups, has developed a $70 refrigerator, called “the little cool,” that n his later years, Peter Drucker was increasingly vocal runs on batteries. FirstEnergy, a startup also in India, has about the lessons that the nonprofit sector could teach invented a wood-burning stove that consumes less energy I the commercial sector. Nonprofits had become enthusi- and produces less smoke than regular stoves. Anurag Gupta, astic students of profit-making businesses, sending their a telecommunications entrepreneur, has reduced a bank most important figures to business schools and employing branch to its essence — a smartphone and a fingerprint CEOs from the private sector. But Drucker believed that the scanner — so that banks can take ATM’s to rural customers. traffic should not be one way. Nonprofit organizations, such The most eye-catching feature of these devices is their as the Girl Scouts (with which he had a particularly close re- price. But reverse innovation is more than a matter of cost. lationship), had plenty to teach profit-making organizations GE’s electrocardiogram is a masterpiece of simplification about everything from generating a sense of common pur- and compression. All those confusing buttons on conven- pose to attracting and motivating workers. “Managing the tional ECG machines have been reduced to just four. The knowledge worker for productivity is the challenge ahead fancy printer has been replaced by a tiny printer of the kind for American management,” Drucker said. “The nonprofits that bus conductors use to issue tickets. The device is robust are showing us how to do that.” enough to use in challenging environments. It’s also simple For years Drucker was, in this area at least, a prophet enough for people with rudimentary medical training to use. without honor. But today, his wisdom is becoming ever Frugal innovation involves more than just redesigning more apparent. Nonprofits are becoming ever more innova- products. It involves redesigning entire production pro- tive, even down to their recent habit of calling themselves cesses and business models in order to squeeze out costs. “social enterprises.” At the same time, profit-making busi- Companies are using new technology in imaginative new nesses are becoming ever more focused on areas that non- ways. Dozens of Indian companies are using mobile phones profits have made their own. How do you turn companies to bring sophisticated services to rural Indians. Companies into communities of meaning as well as units of produc- are also shifting their emphasis from price to volume. Fru- tion? How do you motivate members of Generation X? And gal products thus lead to a cascade of business innovations. how do you keep people happy when it is becoming harder The more you can squeeze out costs, the more you can reach to give them material rewards? cash-strapped consumers. And the more cash-strapped con- Business schools have discovered the wisdom of 28 Q2.2011 The Korn/f erry i nsT i T u T e Briefings onTalen T Lou Brooks Willow Creek Community Church, an evangelical church Worldwide with an unexpected inheritance of $5,000.Worldwide withanunexpectedinheritanceof Non- They They are experts at motivation. Some social enterprises, such X, who account for a disproportionately large share of their whoaccountforadisproportionatelylargeshareof X, management; nonprofitbossesalmostalwayseschewthe Power “The management lessonsfromthenonprofitsector: in the private sector at motivating members of Generation in theprivatesectoratmotivating membersof in several areas. The mostobviousisindoingmorewith in severalareas. The workers. They areexpertsatbuilding relationships workers. They the of one is Wikipedia advertising. on money any ing as Wikipedia and Mozilla, do not pay their work forcesany- ating theelusivestickinessthat profit-makingcompanies world’s bestknownbrandsdespitehavinganannualbudget which helps fulfill the dreams of terminally ill people, have new generation of social entrepreneurs isproducinggeneral several other on nonprofits.as And a well as Chicago, near nonprofits: Harvard Business School teaches case studies on profits are experts at eliminating unnecessary levels of of levels unnecessary eliminating at experts are profits thing. Most only pay a pittance. They arebetterthananyone thing. Mostonlypayapittance.They trappings of power,trappings of gettheirhandsdirtyalong withthe tigan, and“Zilch” byNancy Lublinarecasesinpoint. turned themselves into global brand names without spend- lowest-level workersandleadbyexample. builds which International, Humanity for Habitat less. crave. Social enterprises say, “Thank you,” not once but a but once not you,” “Thank say, enterprises Social crave. cheap homes, America, andMake-A-WishFoundationof of UnreasonablePeople”of ElkingtonandPamelaHar- byJohn of only $5 million. Lublin herself built Dress for Success for Dress built herself Lublin million. $5 only of But there are plenty of other areas where they excel. they where areas other of plenty are there But Social entrepreneurs have produced innovative ideas &l eadership — at cre- Lewis, a successful department store that is owned by its But the reinventing government movement has been kicked British Prime Minister Tony Blair’s fascination with applying relationships; and they keep their supporters updatedwith ment assistance than thanks to work, a tangle of means- making organizations. Andthemorenonprofitsmoveinto free schools. Iain Duncan Smith, secretary of state for work functions of government. He has urged public-sector work- the of many over take to entrepreneurs society” “big for President Al Gore’s drive to “reinvent government” or former in the developing world to teach people the importance of in thedevelopingworldtoteachpeopleimportanceof into a much higher gear by the simple fact that governments, ing welfare payments into a single universal credit while credit universal single a into payments welfare ing it more sensible for millions of Britons to claim unemploy- washing theirhands, forexample. Cameron, the prime minister, has argued forcefully that the very different circumstances ofthe 1940s.The new British able, redesigningwelfaresystemsthatwereformedinthe and pensions, is trying to reform a welfare state that makes T newsletters andget-togethers. bandwagon. Politicians have long paid lip service to the idea particularly intheWest,arerunningoutofmoney. private-sector management techniques to the public sector. people who find a job. Britain under Cameron is set to be- best way to solve Britain’s problems in an age of austerity is profit-making enterprises’territory, themoreprofit-making the past 10 years, million 1.4 Britons have been unemployed, tested tax credits, housing benefits and entitlements. (For to create publicly funded schools, on the model of Swedish to tax collection. Michael Gove, the secretary of state for edu- has struck an alliance with the World HealthOrganization has struckanalliancewiththe hybrids that combine elements of nonprofits and profit- and nonprofits of elements combine that hybrids der Margaret Thatcher der 30 Margaret years Thatcher ago. during that period.) Duncan Smith plans to roll many exist- despite the fact that more than 5 million jobs were created dozen times; they transform brief meetings into long-term From Inspiration to Perspiration coalition government is proving particularly creative. David come a model for government innovation, just as it did un- from withdrawn are benefits which at rate the changing cation, is trying to deregulate the schools, allowing parents employees, to provide everything from probation services ers to establish self-governing co-ops, on the model of John enterprises areformingallianceswithnonprofits. Uniliver of of transforming the public sector: remember former U.S. Vice Nonprofits arealsoproducinganewbusinessform Cash-strapped governmentsarethinkingtheunthink- Even the public sector is climbing onto the innovation from inspirationtoperspiration, orfromideastoexe-exe cution. Innovationgurushave tended tofocusonthe he final change in innovation is a change in focus Q2.2011 — — 29 30 Q2.2011 result isanewfashionforfocusingasmuchonperspiration members at the Tuck School of BusinessatDartmouthCol- members attheTuckSchoolof initiatives rather than focusing on a few big problems. The initiatives ratherthanfocusingonafewbigproblems. The indiscriminately. Companiesdissolveintoathousandsmall Google expects its work force to spend 20 percent of its of percent 20 spend to force work its expects Google Jeffrey R. Immelt, CEO of General Electric. GeneralElectric. Now, CEOof R. Immelt, Jeffrey Govindara- innova- frugal of prophets the of two As execution. about as innovation. panies. Post-Itnotes, 3M,themakerof expectsitsworkers jan and Trimble have produced a book on the subject, “The jan andTrimble “The haveproducedabookonthesubject, them feelspecial. isalsoattractively strategy time onindividualprojects. This projects. own their on time their of percent 15 spend to tion, theywroteapathbreakingarticleonthesubjectwith democratic: Givingpeopleachancetobeinnovatorsmakes lege, havelongarguedthatcompaniesshouldthinkharder sults in the overproduction of ideas that never have a chance seal of approval of some of the world’s most creative com- creative most world’s the of some of approval of seal approachcomeswiththe innovation.This supply sideof of being implemented.Italsospreadsresourcesthinlyand of interesting... Source: HarrisInteractive,2010 interest instartingtheirownbusinesses. know anotherentrepreneurhavethestrongest or alreadyhavedoneso.Youth whopersonally like tostartabusinessatsomefuturepoint, Forty percentofyouth ageseightto24would ENTREPRENEURSHIP TODAY’S KIDSENERGETIC ABOUT Vijay Govindarajan and Christopher R. Trimble,Vijay GovindarajanandChristopherR. faculty But this approach can lead to a great deal of waste.Itre- But thisapproachcanleadtoagreatdealof And they need to be tightly managed according to custom- (Harvard BusinessSchoolPublishing,2010). Those intentonnurturingbreakthroughsshouldconsider Those once LinusPauling issurelyawonderfuldevelopment. This These These innovation hubs also need to be free from some of the They alsosaythatbigcompaniesmaybemorecapablebe- They The authors provide examples of strikinginnovationsfrom authorsprovideexamplesof The recruit people from outside. This is necessary to counter the metrics that prevail in the rest of the company. But they must Harley-Davidson USA, whichlearnedhowtomarketnon- Harley-Davidson USA, fact that big companies tend to attract people who are prone its workforce.Nor dothesenewideasmeanthatoldones are discredited: Silicon Valley willcontinuetoaccountfora are discredited:Silicon for electriccars;andAllstate,whichmadeinsurancemore managed. properly are they if ones smaller as innovation ized rather than generic rules. wider company’s resources as they turn ideas into products. avoid becoming isolated. They need to be carefully inte- carefully be to need They isolated. becoming avoid need to build dedicated innovation machines that are free to in- are predictability and efficiency predictability.But and not simply argue that big companies are just as capable of not simplyarguethatbigcompaniesarejustascapableof Other Side of Innovation:SolvingtheExecutionChallenge,” Other Sideof before GE can instill the spirit of avoluntaryorganizationin before GEcaninstillthespiritof Adrian Wooldridge is co-author of several books and is the manage- times theydonotfittogetheratall this corollary: The bestwaytohaveasuccessfulinnovation this corollary:The tion has undoubtedly put on lots of new faces in recent years. bikers; BMW, whichlearnedhowtodesignbrakingsystems to adopt a company’s culture rather than be rule breakers. rule be than rather culture company’s a adopt to Estab- unnatural. is innovation that recognizing by start to terest because of its focus on big companies. The authorsdo itsfocusonbigcompanies.terest becauseof The they canputmoremarketingmusclebehindtheseproducts. T disproportionately large share of innovations.disproportionately largeshareof Butinnova- lished businesses are based on the principles of efficiency of principles the on based are businesses lished Following Multiple Paths grated with the rest of the company: They must share some compatible with innovation. The authors say that companies can devotemoreresourcestoproducingnewproducts, and cause theybringextraordinaryresourcestothetable.They strategy is to have lots of them. istohavelotsof strategy consumer friendly. said, “The best said, way “The to have a good idea is to have lots of ideas.” ment editor for The Economist. He is based in London. staff from the outset, for example, and they must tap into the some of theworld’sbiggestcompaniesoverpastdecade: some of Govindarajan and Trimble argue that companies need Govindarajan’s andTrimble’s particularin- workisof times theyfittogethernicely times theyfittogethernicely ters of frugal innovation in India and China. Some-Some China. and India in innovation frugal of ters hese ideasdonotadduptoanewparadigm.Some- The Korn/ f — — it willbealongtime GE is one of themas- GE isoneof erry i e T u T i nsT

Hal Mayforth golf-shoe_209x273.pdf 1 10.01.11 11:38 A 32 Q2.2011 leadership T he elderlywomanfidgetinginherseatbecameincreasinglynervousasthejetbeganitsas- “that wehaveabathroomontheairplane?” worriedaboutnotbeingabletogothebathroom.It’s alongflight.”“I’m number of first-timeflyers,number of behaviorbefore,andhesoughttoreas- he’dseenthiskind new budgetairline,Azul,happenedtobesittingnearby. theairline’s Becauseof high has beenturnedoff.” cent into the skies over Brazil. Gianfranco Beting, director of brandingforthecountry’s cent intotheskiesoverBrazil.GianfrancoBeting,directorof sure her. Z “Yes. Look. It’sYou canuse it now, justbackthere! “Yes. Look. becausethe“Fastenseatbelts” sign “Really?” “You have nothing to worry about. It’s havenothingtoworryabout. verysafe.”“You “Is heaskedgently. thisyourfirsttimeonanairplane?” It took Beting a moment to realize what she meant. “You doknow,” “You It tookBetingamomenttorealizewhatshemeant. heresponded, The woman used the restroom and looked remarkably relaxed for the rest of thetrip. womanusedtherestroomandlookedremarkably relaxedfortherestof The The woman shot him an impatient look. “I’m notworriedaboutsafety!”shesaid. “I’m womanshothimanimpatientlook. The womannoddedherhead. The

David Neeleman’s Brazilian startup puts him back in the pilot seat

U BY victoria griffith

The Korn/ f

L erry i e T u T i nsT

Courtesy of Egom Briefings onTalen T Credit &l eadership Q2.2011 33 34 Q2.2011 C They ignorethe‘B’ and es- orporations inBrazilsellto

they takeamarketof200 the ‘A’ classcustomers. into amarketof50million. million peopleandturnit pecially the‘C’classes.So Neeleman is applying the skills he learned as founder Darien, Conn. Every other week he travels to the com- ful, but basic. “David is just not a fancy person,” says new set of lower-income customers in Brazil, many Brazil, in customers lower-income of set new which aregenerallymorehierarchical.It’s astylethat selling in savvy their for lately attention attracted were distributed by lottery, and furnishings are color- and unpretentiousleader. Neeleman of spendshalf at- from suffers he that ago years few a announced ap- forgetting to prone boss, scattered slightly a as JetBluetoabrand-newmarket. and formerCEOof passion fueledbyitsinformalmanagementstyle plane. Second,Azulisaccomplishingitstaskwitha pointments andoftenrunningbehindschedule.He brow philosophy. Parking spaces at Azul’s main office pany’s headquarters in Campinas, a city just north of the company is succeeding in its efforts to attract a attract to efforts its in succeeding is company the tention deficitdisorder. David CEO Azul, of case the In those. of one is tor his working time at simple, serviceable offices in offices serviceable simple, at time working his São Paulo, where he has instituted a similarly low- similarly a instituted has he where Paulo, São goods to low-income, bottom-of-the-pyramid con- bottom-of-the-pyramid low-income, to goods comes naturallytoNeeleman. Employeesviewhim edge indiscountpricingknow-how;theairlinesec- style thatencourageshigh-levelexecutivestoreach sumers.Yet insomeindustries,Weststillhasthe the sets Azul apart from other Brazilian corporations, Brazilian other from apart Azul sets of whom have never before seen the inside of anair- whom haveneverbeforeseentheinsideof of out inapersonalwaytocustomers. Yet he is also, by many accounts, an inspirational Multinationals basedinemergingmarketshave This story shows two things about Azul. First, First, Azul. about things two shows story This Neeleman’s democratic managerial approach managerial democratic Neeleman’s —

a “Some people have a hard time adjusting to a man- a to adjusting time hard a have people “Some 50 million.” CclassinBrazilisgenerally defined The (Think of thelow-pricedTata of carfortheIndianmar- (Think US$8,000 andUS$30,000 peryear. Brazil can otherwise make hiring a challenge. The Brazil canotherwisemakehiring achallenge.The mer baby, JetBlue. Neeleman was born in Brazil. The son of aUPIjour- sonof Neeleman wasborninBrazil.The receives 10 applications. Neeleman isgrateful forthe most difficulthumanresources problem, Neeleman missionary. After raising $250 million from inves- from million $250 raising After missionary. favor, for tocheckoutanewBrazilianairline,BRA, Neeleman left job his of loss The water. and food a rigid economic division between the haves and haves the between division economic rigid a Carol Archer, who left JetBlue to act as the United the as act to JetBlue left who Archer, Carol as families making the equivalent of between of equivalent the making families as and especially the ‘C’ classes. Sotheytakeamarket and especiallythe‘C’ after hundreds of theairline’safter hundredsof passengerswereleft agement stylethattreatseveryonethesame.” Beting. says office,” your in desk the of size the and the at status your where country a is “This nization. nalist, helivedthereuntilwasfive;asaresult nalist, he if wondering him left experience the But vice. airline waslaterreorganizedintoacharter-onlyser- potential investors. Neeleman wasn’t impressed;the the country of hisbirth,Neelemanthe countryof wasstruckby to buy their products,” he says. “They ignorethe‘B’ to buytheirproducts,” hesays. “They to work, andforeveryopeningatAzul,thecompany to work, Yet forinstance.) ket, inBrazil,Neeleman observed tors, he launched Azul, which means blue in Portu- in blue means which Azul, launched he tors, Mormon a as country the in stint brief a to thanks have become emblematic for marketing to the masses. have-nots. duality of theBrazilianeconomy.duality of Emergingmarket has dual citizenship. He speaks fluent Portuguese, fluent speaks He citizenship. dual has States executive manager to her former boss. guese corporations inChina,Indiaandothercountries class customers[upper-middleclass]whocanafford company hasgainedareputationasfriendlyplace The masses. the to out reaching is that company company is measured by the thickness of the carpet the of thickness the by measured is company company’s appeal,becauselow educationallevelsin could replicatetheJetBluebusinessplaninBrazil. Hewasasked,asa casting aroundforanewproject. sitting on the tarmac for hours without adequate without hours for tarmac the on sitting of 200 million people and turn it into a market of 200 millionpeopleandturnitintoa marketof of “Basically, corporations in Brazil sell to the ‘A’the to sell Brazil in “Basically,corporations Azul’s democratic management style suits a suits style management democratic Azul’s When he started spending time once more in more once time spending started he When The idea was rendered more doable because doable more rendered was idea The Not everyoneishappywiththehorizontalorga- Neeleman wasoustedbyJetBlue’s boardin2007 — anot-so-subtlereferencetoNeeleman’s for- The Korn/ f erry i e T u T i nsT

Associated Press Briefings onTalen T Credit This means that the average pilot works 21 days of of days 21 works pilot average the that means This years, rarely asked her opinion on anything. But at But anything. on opinion her asked rarely years, Flight attendantPatriciaLealBassisaysherbossesat Pilots are permitted to work a maximum of 10.5 of maximum a work to permitted are Pilots in Brazilislessdesirablethanitothercountries. pact on the quality of life. pact onthequalityof the now-defunct Varig, wheresheworkedformany the now-defunct im- negative a have can that schedule a month, the hours a day, as opposed to 14 in the United States. United the in 14 to opposed day,as a hours says, pilot jobof isgettingenoughtrainedpilots. The open withworkersandcustomersiskeytosuccess. David Neeleman brings to Azul a flat management style and a fleet of new planes. For Neeleman,communication keepinglinesof &l eadership Azul, flightattendantsareperiodicallycalledinfor meetings withseniormanagementtoairanycom- about issues that senior management hadn’t previ- hadn’t management senior that issues about prised at the company’s quick response to some of of some to response quick company’s the at prised believes themostproductivediscussionshavebeen thesemeetingsincludepredictablere- plaints.While the flightattendants’concerns. tendants, for instance, Leal Bassi prefers to work in work to prefers Bassi Leal instance, for tendants, quests forbettersalaryandmoredaysoff,LealBassi slacks, rather than skirts and dresses. She was sur- was She dresses. and skirts than rather slacks, ously realized were a problem. Like many flight at- flight many Like problem. a were realized ously “We got to wear more pants,” she said. “Andsaid. she pants,” the more wear to got “We Q2.2011 35 36 Q2.2011 2011, thegrouppredicts, itwill turnaprofit. 2010, just 20 months after it started flying, Azul wel- Azul flying, started it after 2010,months 20 just We got them to vary it a little.” Leal Bassi says the says Bassi little.”Leal a it vary to them got We first airline ever to reach that number of flyers so flyers of number that reach to ever airline first markable success since its inauspicious start at the at start inauspicious its since success markable market. Itisgeographicallyexpansive, aboutthesize market. food issue improved. They didn’t realize it, but we but it, realize didn’t They improved. issue food feel thattheyhavesomecontrolovertheirworking were eating the same meal almost every day over a over day every almost meal same the eating were new jets in July 2010 July in jets new highest capacity,the percent 85 with planes its ates publication period of months period of than double the size of the company’s fleet company’s the of size the double than height of a worldwide recession in 2008. The trade The 2008. in recession worldwide a of height hottest brandsintheworld2009. InSeptemberof quickly. The airline’s outreach to additional classes additional to outreach airline’s quickly.The level in Brazil. If it weren’t for the purchase of 45 of purchase the for weren’t it If Brazil. in level company would already be in the black, it says. In says. it black, the in be already would company comed its five-millionth customer on board. It is the is It board. on customer five-millionth its comed conditions. shows in Azul’s packed flights. The company oper- company The flights. packed Azul’s in shows of the continental United States. But it lacks a na- a lacks it But States. United continental the of open line of communicationmakesflightattendants open lineof Azul Aerolinhas (Azul Airlines) has enjoyed re- enjoyed has Airlines) (Azul Aerolinhas Azul In manyways, Brazil isabudgetairline’s dream named Azul one of the of one Azul named Age Advertising — tuna fish for dinner every night. tunafishfordinnereverynight. — a purchase that will more will that purchase a — the Azul sells tickets on that route for a fraction of that Azul sellsticketsonthatrouteforafractionof Azul sells tickets on that route for a fraction of that Azul sellsticketsonthatrouteforafractionof Neeleman thinksitwouldbenaïvetoexpectthat Brazilians, andtherearen’t manyotheroptionsfor maker Embraer)toBeloHorizonte,alargercityin ment here, it would take years to get anything accom- provide not does government local the cases, most forced Azultotakeadifferentapproachwithitsmar- ing them to and from the airport. Andthecompany ing themtoandfromtheairport. own its created has Azul hands. own its into issues as little as US$20 one way, less than the bus fare. bus the way,than one less US$20 as little as vious history of high inflation and challenging and inflation high of history vious price. Azul flights from São José dosCampos(asmall price. AzulflightsfromSão plans toexpandthisservicein coming months. plished,” heexplains. public transportationlinkstothecountry’sairports. price. Azul flights from São José dosCampos(asmall price. AzulflightsfromSão the middle of thecountry,the middleof wererecentlygoingfor keting. Taxi fares are prohibitively expensive for most household cashflow, haslonghadaromancewith helping customersfinancetrips. Brazil,withitspre- lecting passengers at various pickup points and ferry- Sao PaulotoManauswas800reals–aboutUS$469. Sao PaulotoManauswas800reals–aboutUS$469. getting backandforthfromthecountry’sairports. In city that hosts the headquarters of the airplane the of headquarters the hosts that city change any time soon. “Working withthegovern- change anytimesoon.“Working shuttle bus service in some of the cities it services, col- The economicconstraintsontheCclasshave The The grouphasalsotakenanovelapproachto The So the company has taken ground transportation tional rail system. Some of thecountry’slarg tional railsystem.Someof tional rail system. Some of thecountry’slarg- tional railsystem.Someof est cities, suchasManausintheAmazon,are est cities, suchasManausintheAmazon,are difficult or impossible to access by road. Buses difficult or impossible to access by road. Buses are thepopulation’s mainstayforlong-dis are thepopulation’s mainstayforlong-distance travel,butthatcomeswithsomeobvi tance travel,butthatcomeswithsomeobvi- ous disadvantages. Travel timesbybusare ous disadvantages. Travel timesbybusare often measured in days, as opposed to hours often measured in days, as opposed to hours with air. arenounionsintheairline There with air. arenounionsintheairline There industry in Brazil. The market has also been industry in Brazil. The market has also been opened upinrecentyearsbythebankrupt opened upinrecentyearsbythebankrupt- cies of Vasp,Varig andTransbrasil. cies of cies of Vasp,Varig andTransbrasil. cies of hurdles. The cost of fuelinBrazilisexor costof hurdles. The hurdles. The cost of fuelinBrazilisexor- costof hurdles. The bitant, andthegovernmentleviesahigh bitant, bitant, andthegovernmentleviesahigh bitant, — tax onairlinetransactions. Twoairlines tax onairlinetransactions. Twoairlines which startedin2001 which startedin2001 competition. They havebeenpushing competition. They back lately, withmoreflightoptions the well-established Tam, and Gol, and Tam, well-established the and lowerprices. the cheapest round-trip flight from flight round-trip cheapest the fatter part of theclasspyramidiskey fatter partof to Azul’s Azul success.launched, When That’s not to say Azul doesn’t face doesn’t Azul say to not That’s Neeleman feelsthatreachinga The Korn/ f — presentserious erry i e T u T i nsT

Robert Mack Howell the system of monthly payments for consumer pur- option. Regardless, the airline prefers to reduce costs chases. The monthly payment is often more impor- by offering simple snacks, such as a granola bar or a tant, in the consumer’s eyes, than the total cost of an sandwich, on most of its flights. item, a preference reflected in television commer- Beting says he sometimes hears complaints from cials and print advertising. people used to flying in what they refer to as the Azul offers a maximum payout schedule, with “good old days.” “They talk about how they would al- interest, of 60 months — five years— generous even ways drink a scotch on the rocks on the 6 o’clock by Brazilian financing standards. Moreover, to buy shuttle service.” He counters by asking how much a seat on Azul, passengers don’t need to have a credit they paid for a flight back then. (The shuttle service card. (A large portion of the population does not have between Rio de Janeiro and São Paulo ran about one.) A bank account is all that’s necessary to purchase $400.) Younger consumers, Beting finds, are usually a ticket on credit from the company. Default rates are a lot more open to the lower-frills approach. high — up to 10 per cent — but the company thinks it’s “Our philosophy is that no one buys an air ticket worth it. “The alternative is flying with empty seats,” because they want a fantastic meal,” says Neeleman. says Neeleman. “That’s definitely not going to make So far, the approach appears to be working. Azul’s us any money.” broad customer base is clear as its passengers line up

In September of 2010, just 20 months after it started flying, Azul welcomed its five-millionth customer on board. It is the first airline ever to reach that number of flyers so quickly.

Azul is not only after C class passengers. The to enter the aircraft. A businessman in a suit may be group markets itself to the wealthy as well. Its seats just behind an elderly lady flying for the first time in are upholstered with leather, and the airline plans to her life. install television sets. On many jets, there are no Azul’s future success is far from assured. Bring- middle seats and better-than-average legroom. And ing in new customers by offering bargain basement the airline offers another luxury as well — it has the prices is the easy part. The hard part is making most frequent flights between a number of Brazilian money in the bottom-of the-pyramid demographic cities and the fewest delays of any other airline in segment. To do that, Azul will need to achieve econo- the country. The airline stands out, in particular, for mies of scale. On paper, the company looks like it is service from secondary cities. Azul runs flights be- on a solid path to profits. Yet plenty of airlines on the tween its base in Campinas and Rio de Janeiro, for same trajectory have ended up failing, points out instance, 10 times each day. Vaughn Cordle, managing partner of the research Serving upper-class passengers in Brazil has its group Airline Forecasts, based in Washington, D.C. own challenges. People accustomed to large num- “At $35 a flight there’s no question that you can bers of servants on the home front — including find buyers,” Cordle says. “But at some point, you cooks, maids, gardeners and chauffeurs — expect an need to start making money on those customers.” exceptional level of service. When Varig was still in One hurdle that often trips up young airlines is the business five years ago, for instance, flyers would be end of what Cordle calls the “maintenance holiday.” offered a hot meal even on a 40-minute flight. And it New jets generally don’t need to be serviced for the would be served on real china, with linen napkins. first three years of their life; maintenance costs are Despite the high standards of the wealthy, Azul close to zero. But that advantage doesn’t last long. decided not to splurge on food service. This is partly Airplanes often start to need new parts and regular because the group has no choice. Many of its jets, for servicing after just a few years. Cordle believes that instance, do not have an oven, so hot food isn’t an to become a profitable enterprise, Azul will need to Briefings on TalenT & l eadership Q2.201137 win greater market share from other carriers, particularly in that A class that is targeted by other Brazil- Managing, Neeleman Style ian companies. • Passenger safety takes priority over every- Then there is the question of running a com- thing. pany in the economically dynamic, yet volatile Brazil. • A friendly, upbeat attitude wins loyalty Right now, Brazil’s economy is booming, but Neele- among customers. man acknowledges that conditions could sour • quickly. He spent time in the country, after all, when Listen to your employees. it was in the throes of its 1980s’ hyperinflation saga. • Just because the price is cheap, don’t make The country seems unlikely to return to those days, the experience seem cheap. but an unforeseen economic challenge could very • Make sure you’re not at the mercy of your well be in the cards. Neeleman maintains cash levels board of directors. of 100 million dollars to guard against an unexpected downturn. While Neeleman loves the warmth and spirit of other global airlines. “That’s the model for the indus- the Brazilians, he admits frustration over the country right now,” he says. “You have to at least link up try’s bureaucracy. He often encounters resistance to to global flights.” his plans — say, to build an airport where none had There’s also the issue of Neeleman’s manage- existed before — and is forced to move more slowly ment style. As one of the best-known entrepreneurs than he otherwise would. “Sometimes the response is in the world, he has racked up both startling suc- just a simple ‘well, we’ve never done that before,’ ” cesses and stunning failures. His uneven manage- Neeleman says. “But it’s mostly from inexperience ment style was on show when he led JetBlue. In 2007, with the aviation world. We’ve been there, so we a storm that left passengers stranded for hours on know how to do things quickly.” the tarmac in New York without adequate food or International expansion also remains a ques- water placed the company in crisis mode. Neeleman tion mark. Neeleman says he’s not interested in was praised for his swift response. He immediately turning Azul into a global carrier. Certain destina- apologized for the incident and offered compensa- tions, such as the ski resorts of Bariloche, Argentina, tion to passengers. He also issued a passenger’s Bill or the beaches of Punta del Este, Uruguay, may be of Rights, which outlined JetBlue’s responsibilities to considered. “But even if we go there, we’ll be target- its customers. ing Brazilians, not the global market,” Neeleman The fact that Neeleman was pushed out anyway says. “There just aren’t enough Brazilians who go may have reflected the fact that the board was already abroad on a regular basis for us to think of expand- unhappy with him. The company was having a hard ing much beyond that.” Yet Cordle believes Neeleman time transitioning from entrepreneurial upstart to may need to take international routes into consider- established company with a focus on return on capi- ation at some point, even if Azul is just feeding into tal. “Neeleman just wasn’t seen as a numbers man,” says Cordle. “Hopefully, he’s learned from his mis- interesting... takes and is now doing things differently, but that remains to be seen.” Auto Incorrect [aw-toh in-kuh-rekt] Whatever happens to Azul, Neeleman will leave When the auto-correct feature on your computer or smart- this job voluntarily. He has set up his contract to phone tries to correct your spelling, but instead changes it to words that just don’t make sense with what you’re avoid a repeat of the JetBlue ouster; while he owns typing. about 15 percent of the company’s shares, he controls Source: Urban Dictionary, 2010 (www.urbandictionary.com) the majority of voting shares. Because of Neeleman’s high international profile, the company’s progress will be closely watched. If Azul succeeds in drawing a profit from the fat part of the pyramid, managers around the world will be looking to take some pointers from its marketing strategy.

A long-time correspondent for The Financial Times, Victoria Griffith covers business from Boston. 38 Q2.2011 The Korn/f erry i nsT i T u T e LLP6149 BREAKING AWAY AD:Layout 1 1/12/11 5:03 PM Page 1 40 S Q2.2011 Before youshrug,rememberthat atmostlargeUnitedStates directors America.Hisjobistoleadtheboardof run Bankof fusion abouthisjobdescription,whichemphaticallyisnotto from his status as chairman, not CEO, of Bank of America. of Bank of CEO, not chairman, as status his from conducted research onthe topicofcorporate governance. National AssociationofCorporateHallagan isaboard Directors member andchairmanemeritusofThe andhad Robert Hallagan,vicechairmanandmanagingdirector, board leadershipservices, Korn/FerryInternational. responsibilities andbestpractices ofthechairmanasdistinctfromthoseCEO. conversationwaswith The duPont deNemours &Company, focusingonthe man ofBankAmericaandformerchairmanCEOE.I. followsisaconversationwithCharles(Chad)Holliday,What and thoseoftheCEObegin?nonexecutivechair- Where shouldhisorherpowersend itcomestocorporateWhen governance, whatexactlyshouldachairmando? portant topicincorporategovernancetoday. corporations, those two job titles are joined with an “and.”an with joined are titles job two those corporations, executive, whodoeshaveanoffice, astheCEOshould. of Bank of America. The otherjobbelongstothebank’s chief America.The Bankof of c governance You see, Holliday would like to leave zero room for con- for room zero leave to like would Holliday see, You Holliday’s eagerness to deflect executive aspirations arises hairM Moreover, hedoesn’t haveanoffice. Washington, D.C., ChadHollidaywantstomake Washington, D.C., tail, and it says something profound about anim- taking painstoclarify this seemingly obscure de- eated in a Bank of America office in downtown in office America of Bank a in eated something perfectly clear: This isnothisoffice. something perfectlyclear:This one of theworld’slargestfinancialinstitutionsis one of A conversation on corporate governance There is a good reason that the chairman of isagoodreasonthatthechairmanof There BY david snow the an’s Jo is changinginthisregard,andthereariskthatcompanies is the person in charge. Far fewer people know what the what know people fewer Far charge. in person the is and won’t in and of itself fixanycorporate dysfunction. and won’titself inandof are having chairmen thrust upon them before they’ve hada are havingchairmenthrustuponthembeforethey’ve Europe and Japan, whereseparationisnearlyuniversal.ToEurope andJapan, be Everyone knowswhatthechairmanandCEOis history withseparatedchairmanandCEOroles. But history does, and how to tell if you’ve gotagoodoneorbadone. does, you’ve andhowtotellif chorus of corporate activists who have demanded the split, split, the demanded have who activists corporate of chorus chairman and CEO has been growing for years. To the swelling chance tofullylearnwhatachairmanis, whatachairman clarity issimple chairman iswhenliberatedfromCEOduties. Asilent over- sure, intheUnitedStates, the thepressuretosplit rolesof seer? A rival? A ceremonial figure? The reason for this lack of The reasonforthislackof seer? Arival?ceremonialfigure? opponents haveusuallyargued thattheideaisaredherring Amid the wreckage of theGreatRecession, however,Amid thewreckageof The dichotomybetweenthetworolesisintuitiveacross The — most UnitedStatescorporationshaveno The Korn/ f erry i — B he, orshe, e T u T i nsT

Patrick Morgan Briefings onTalen T Credit &l eadership 42 American companyatsomepointoranother. Lewis of hischairmanshipinApril2009.Lewis of Ayearlater, Holliday Q2.2011 It isacertaintythatmoreandcompanieswilladoptthis your thoughtsearlyon.” years as chairman as years management issues,” whichdescribesjustabouteverylarge man versus a CEO,” Hallagan said. “And we wanted to get to wanted we “And said. Hallagan CEO,” a versus man model work. To writesuchamanual,itmightbewisetofirst model work. many will do so without an instruction manual for making the ing such a vote has “problematic performance, governance or adopting apolicyfor2011 toalmostalwaysvoteforasplitin way thatmostlargeAmericancompaniesareled. what was previously a gradual trend toward the split model split the toward trend gradual a previously was what vice chairman.ThetalkcenteredonwhatHollidayviewsto was elected chairman of the financial giant, whose chief execu- and given Bank of America’s high profile as a case study in study case a as profile high America’s of Bank given and a serious student of corporate governance, overseeing board accordance withthosepriorities.LikeHolliday,Hallaganis should? Is the board staffed right? Does it have its processes? Are we getting the information that we need?” have the right committees? Are they staffed right? Do they have the processes to get their jobs done as they Being the leader of the board means guiding “the effectiveness of the board,” Holliday said. “Which is, do we be thehighestprioritiesofnonexecutivechairman,and by a combined chairman and CEO, and he sits on the board of Exchange Commission and even the major stock exchanges stock major the even and Commission Exchange both roles and is an expert navigator of the space between them. the chairmanandCEOroles, thecompanyhold- especiallyif tion between Holliday and Robert Hallagan, a Korn/Ferry a Hallagan, Robert and Holliday between tion this regard. “Our interest is in making sure that we’ve really we’ve that sure making in is interest “Our regard. this tive isnowBrianMoynihan.Hollidayspentapproximately10 has gained momentum, with Congress, the Securities and and Securities the Congress, with momentum, gained has lead director on the board of Deere & Company, which is led liness, given the many pressures for separation of the roles, the of separation for pressures many the given liness, leadership servicesforKorn/Ferry. Services, thepowerfulproxyshareholderfirm,hasproposed Shell, which has separate chairman and CEO roles. Chatting with Chad got the job after shareholders voted to strip then-CEO Kenneth eyeing rules that, if enacted, would drastically change the change drastically would enacted, if that, rules eyeing consult Charles(Chad)Holliday, whoknowshiswayaround studied the competency model of what makes a good chair- good a makes what of model competency the studied served in each role separately. Today, he also serves as the as serves also separately.Today,he role each in served split model going forward, many for the first time. But too But time. first the for many forward, going model split on howhehasstructuredhisrelationshipwithMoynihanin Adding tothismomentum,InstitutionalShareholder Holliday’s first point put his no-office comment in per- comment no-office his put point first Holliday’s Hallagan kicked off the discussion by noting its time- its noting by discussion the off kicked Hallagan Holliday, America’s Bankof firstnonexecutivechairman, was a fly on the wall during a recent conversa- recent a during wall the on fly a was Briefings CEO of DuPont, but for stretches he stretches for but DuPont, of CEO and “how to get groups to work together, how to listen, how to how listen, to how together, work to groups get to “how Top you separate it, then you create this lack of understanding of lack this create you then it, separate you Nobody questionsthechair’srole.” Holliday said his messages to the Bank of America commu- America of Bank the to messages his said Holliday Holliday said that “almost anything will work if everybody if work will anything “almost that said Holliday role model.Itleavestheopportunityforconfusion.” ropean and Japanese system is that everybody understands. everybody that is system Japanese and ropean information thatweneed?” ily gosmoothlyforallcorporations. theFortune500 Mostof nonexecutive chairmenshouldpossess, whichmay bediffer- who does what. Referring to his diverse experience at DuPont, ReferringtohisdiverseexperienceatDuPont, who doeswhat. never sends official communications to bank employees. “I employees. bank to communications official sends never also Holliday office. permanent a of lack the like small, and directors, theboardof am thechairmanof not nity abouthisrolemustbeconsistentandunambiguous. “I and mixed expectations. The CEO[maynot]havearolemodel and mixedexpectations. The ness successiscertainlyachievableunderthesplitmodel, but Idon’t meanitthatway. CEOhas todemandresults The be alittlebitweakinsomepieces. Andthatsounds negative, just doesn’t tempo.” operateunder thatkindof the processes to get their jobs done as they should? Is the board have they Do right? staffed they Are committees? right the have we do is, “Which said. Holliday board,” the of tiveness think thatwouldbeconfusing,”hesaid. to lookjustbetheCEO;chair[maynot]haveagood when It’smeans. combined what “peopleunderstand today transition fromcombinedtosplitmodelswouldnotnecessar- has to have it all,” Holliday said. “I think the chair could maybe lead aneffectivemeeting,how tokeepyourmouthshutand understands whattherolesare.Andbyeverybody, Imeanthe every day of every week, andthere’s Aboard atempo tothat. everyweek, every dayof companies have combined roles, he said, which means that means which said, he roles, combined have companies America,Hollidaywarnedthatwhilebusi- change asBankof ent fromthoseneededbysuccessfulCEOs. “Ithink theCEO chair, the CEO, the shareholders, the rest of the board, the board, the of rest the shareholders, the CEO, the chair, employees, the senior management. ... What I find in the Eu- the in find I What ... management. senior the employees, staffed right? Does it have its processes? Are we getting the getting we Are processes? its have it Does right? staffed spective: Aboveallelse,itiscrucialthateveryoneunderstand of B.hesaid.“BrianistheCEO,of A.,” 100 percentincharge.” of of the board With many corporations preparing to enact the same the enact to preparing corporations many With This led to a discussion of specific competencies that competencies specific of discussion a to led This This messaging should be backed up by gestures large gestures by up backed be should messaging This By contrast, ahigh-functioningchairman shouldknow By contrast, Being the leader of theboardmeansguiding“theBeing theleaderof effec- The Korn/ f erry i e T u T i nsT

Patrick Morgan Briefings onTalen T Credit &l eadership Q2.2011 43 let others talk. It’s leading teams when they don’t really quite Promoted into the CEO job, Moynihan no doubt knew have to do what you say.” that leadership of Bank of America was going to be highly While being clear about who runs the actual company, complicated, but he may also be finding unexpected complex- it is, of course, crucial that the chairman communicate effec- ities inherent to the CEO-board dynamic. “What I’ve been tively with the CEO and that the two are supportive of each trying to do is to help Brian understand some of these things other’s goals. This can be murky territory, especially in a com- I had to learn,” Holliday said. “It’s hard to tell somebody these pany that has just opted for the split model. Several times things. They almost have to experience it themselves.” during the conversation, Holliday and Hallagan acknowledged Hallagan added, “The fact that you are the nonexecutive the fine line between a chairman who vigorously supports chairman, you don’t want to be too nurturing. ...” the CEO, and a chairman who strays into the CEO’s turf. Holli- “I might say it a little differently,” Holliday said. “If it looks day keeps a close eye on this line but believes strongly that to the rest of the board that I’m so much in Brian’s camp that I the relationship he is forging with Moynihan should give the might not be objective, that might be a problem. So there’s a CEO valuable resources to draw on while remaining firmly at balance there. If management needs to consider a different the helm of the ship. approach to something, I’ve got to be able to say that.” Hallagan pointed out that many boards struggle to give effective performance evaluations to their CEOs, making the Hallagan pointed out that many boards struggle to informal feedback offered by a nonexecutive chairman all the give effective performance evaluations to their CEOs, more valuable. “You need to have a much better way of keeping the CEO attuned to his strengths and weaknesses,” he said. making the informal feedback offered by a nonexecu- A chairman has a unique ability to play a mentoring role for the CEO, Holliday said, contrasting this with his experi- tive chairman all the more valuable. “You need to ence at Deere & Company. “As lead director, I think I don’t feel quite the latitude to coach the CEO,” Holliday said. “We’re have a much better way of keeping the CEO attuned close. I talk to him, but not as frequently as Brian. I will coach him, but I don’t feel quite the freedom.” to his strengths and weaknesses,” he said. As a nonexecutive chairman who was once a CEO, Holli- day seeks not only to be a mentor to Moynihan but also to Hallagan asked whether Holliday’s lack of experience guide him on how to be further mentored. When he was CEO, within the financial industry makes him, in a way, a stronger Holliday himself benefited from the guidance of three undis- candidate for nonexecutive chairman — in other words, more closed wise men while at DuPont. “I never told anybody who likely to focus on board-level improvements and less likely they were,” he said of his coaches. “They had no relation to the to try to do the CEO’s job. Holliday responded: “It cuts both company. They were all highly successful. One of them, I would ways. I’m not going to start second-guessing the business show him the notes of my senior meeting, and he would say: decisions. Yet there is some grounding experience in know- ‘Well, you didn’t really decide that. Why didn’t you decide that?’ ing the industry. At least I have led a large global company,” He would sort of push me. I would see them about once every alluding to DuPont. six weeks. I found they were honored to do it. It wasn’t about He continued: “I can bring to Brian ideas for how to orga- ego, because nobody knew they were doing it.” nize and coach him on all the different business organizations. Moynihan and Holliday speak about once a week, Holli- I can bring something to the party, but not financial expertise.” day estimated. The two try to meet in person at least once a month. Facilitating this scheduling exercise is a novel feature Nurturing, but not too much of their relationship — the two men share an administrative Hallagan took a keen interest in the word “coach.” He said: “I’m assistant. “That was Brian’s idea — I wish it were mine,” Holli- going to prod you a little bit more about your role. I think part day said. “She keeps us linked. Brian knows everything I’m do- of your role as chair is to be sure that the CEO is successful.” ing if he wants to. I can know everything he’s doing if I want Holliday embraced this notion quickly, saying, “Abso- to. It’s an openness thing.” If a chairman and a chief executive lutely.” He then reached back to his own experience as a fledg- have separate staffs and separate offices, “it ends up being a ling CEO. “I was 49 when I became CEO of DuPont. I thought wall,” he said. “How much time and effort is spent just to get I knew everything. I’d been watching these guys mess up for- the two to talk to each other?” ever, and I was just going to fix all this stuff. Then, after about Mixed in to their ongoing agenda items, Holliday tries two years, you figure out — whoops — there was a reason why every week to ask Moynihan at least one question that he isn’t they made all these mistakes. It’s more complicated than you expecting, he said. A recent example: “With which of your thought.” senior team do you spend the most time?” 44 Q2.2011 The Korn/f erry i nsT i T u T e “Great question,” Hallagan said. Term limits “And he gave me a totally different answer than I expected,” Part of the argument for separating the roles of the chairman Holliday said. “He came back very quickly with one person. and CEO is that doing so lessens the likelihood that the corpo- When he told me why, I said, I understand that. That helps us rate leader will assume an unchecked and open-ended tenure. have a conversation about how he’s helping that person.” In the United States, however, there are no broadly adopted In order to help the CEO succeed, Holliday also speaks guidelines for the tenure of a nonexecutive chairman. Holliday to people who work closely with Moynihan to gain insights and Hallagan agreed that these chairman positions should in- about his environment and needs. “There are three or four deed come with term limits. “There needs to be a very easy way people I know he’s close to,” Holliday said. “I talk to them ev- to make an exit,” Holliday said. “The expectation ought to be ery four to six weeks, each one individually. I get their coach- that it’s going away; otherwise it can go to somebody’s head.” ing. ... I say, ‘How can I help Brian be better? If I could have Taking the thought a step further, Hallagan described the done anything differently, tell me what it is.’ ” ideal chairman as someone who has an incentive to “stay long Holliday paused and again noted the line between the enough so that you can have an impact, but you know one of chairman and CEO jobs, stressing that in his discussions with your jobs is finding your successor as chair, and making sure Bank of America senior executives, he is “always extremely the process is in place that you have bench strength on the careful not to be giving them tasks and instructions about what board. So when you’re recruiting board members, you are to do. Being a CEO, you know that when you skip a level in an thinking long-term, and you start to have board members organization, people can take a question as an order. As a chair- who have the right competencies to be in that chair role.” man, you need to be extremely careful that they not do that.” For the record, Holliday estimated that his role as non- Holliday tries to eschew formality in these executive con- executive chairman of Bank of America is a “half-time job,” versations. “It’s: ‘How you doin’? What are your key issues? but a very demanding half-time job. That time commitment How is the team working together?’ If they’ve had some inter- should also be taken into consideration when agreeing on action with board members, what were their questions? In the compensation, he said. course of that kind of a conversation, you learn a lot more. If I Indeed, finding a nonexecutive chairman is not a well let them bring 50 slides to present, I wouldn’t learn as much.” understood task. The two men noted that many board members are unclear as to what selection criteria to use. Think of The pigeon technique how much time and money is spent with CEO compensation A nonexecutive chairman, assigned to run a high-functioning consultants, Holliday remarked, and how little is spent de- board of directors, can act as a bridge-builder between the se- signing a superior process for nonexecutive chairman selec- nior executive and the board. That becomes all the more cru- tion. Hallagan added with a rueful chuckle: “Think of the pain cial when important strategic decisions loom. that goes into designing the profile for the next CEO, and To this end, Holliday details a practice he brought to Bank then think of how little time you spend thinking about sepa- of American from DuPont that he says has been very effective rating the role. Everybody just looks around the room. ...” at getting board members up to speed. “When there’s a really The conversation ended with another shared observation: critical decision — and there’s really only one or two of these a describing the ideal nonexecutive chairman is one thing, but year — we send a pair of management team members out to designing a formal evaluation for the chairman’s performance meet with a board member in their home or office and cover is quite another. Hallagan said that most corporations probably the issues fully in advance,” he said. “That way, when you get do not separately assess chairman and CEO skills where the to the actual board meeting, you know what everybody’s is- roles are combined. Therefore, when the roles are separated, sues are, but they’re grounded on the material so you’ve got these corporations may not have a way to evaluate the chair- the time in the boardroom to have a little discussion. It takes man in a fashion tailored to the role’s necessary competencies. a lot of time, but on those critical decisions, I think it’s a fan- Chairmen who are not effectively sized up miss an oppor- tastic investment. I think it’s a best practice, but I’m biased.” tunity to lead by example. “You’re setting the tone that every- Asked what he calls this best practice, Holliday responded, body should be held accountable,” Hallagan said. “You say, to laughter: “At DuPont we called this ‘the pigeons’ because ‘Here’s the role that we’ve defined for the chairman, so guys, do a these were like homing pigeons. If one didn’t come back, we’d 360 around me. Be honest, because I’m getting used to this role.’ ” know it was a bad sign.” With a smile, Holliday said, “You gave me a good idea.” Hallagan clearly liked “the pigeons” technique. “The advantage is when you send them out, the board member knows David Snow is the founder and CEO of Privcap, a media company dedi- it is important,” he observed. “It’s showing the right respect cated to best practices in private partnerships. He is also the editor at for the board member and making sure that they do their large of PEI Media, which covers the private equity, real estate and infra- homework. It says you want their best thinking.” structure asset classes. Briefings on TalenT & l eadership Q2.201145 46 Q2.2011 Leadership Under The Korn/ f the erry i

e T u T i nsT Credit

Big Big Top Under the

Big Big Top

Briefings onTalen T Credit Lamarre was in charge of the popular and in- and popular the of charge in was Lamarre you havenever, ever disappointedme,”Buffet your lastshow.” point people, because you’re only as good as good as only you’re because people, point prise, hesaid,“Daniel,Idon’t knowyou,butI replied. made hiswayovertothecelebratedfinancier During the summer of 2009,During thesummerof DanielLamarre, from perhapsthemostinfluentialinvestment are in. We have a lot of pressure not to disap- to not pressure of lot a have We in. are want totellyousomething.” Lamarrewasin- novative Montreal-basedentertainmententer- Buffetheardthat When and introducedhimself. Warren Buffetwasaguest a seminaratwhich trigued. Hewasabouttogetapersonalinsight CirqueduSoleil,attended executiveof the chief life. “Iwasblownaway,” Lamarre recalled.“Be- cause itsummarizedsowellthesituationwe Lamarre’scome butitreinforcedafactof daily speaker. Long an admirer of Buffet, Lamarre Buffet, of admirer an Long speaker. genius of the past half century. thepasthalf genius of “I’ve probably seen most of your showsand probablyseenmostof “I’ve Mr. isit, Lamarresaid. Buffet?” “What Buffet’s imprimatur was obviously wel- obviously was imprimatur Buffet’s &l eadership BY glenn ceo, cirque du soleil a profile of daniel lamarre, fluent des cinquante dernières années. tant cela résumait bien la situation dans laquelle tacles et pas une seule fois vous ne m’avez déçu », génie de l’investissement probablement le plus in- vous dire quelque chose », ce qui a intrigué Daniel Lamarre. Il allait avoir le point de vue personnel du Buffet, Daniel Lamarre s’est frayé un chemin vers Pendant l’été 2009, Daniel Lamarre, président et le célèbre financier et s’est présenté. Lorsque celui- jamais décevoir le public, parce que notre dernier nous nous trouvons. Nous avons l’obligation de ne pour Daniel Lamarre. « J’étais sidéré, se souvient-il, nue, mais elle a renforcé une réalité quotidienne à un séminaire auquel Warren Buffet était conféren- a été la réplique. spectacle est toujours le meilleur ». dit: « Daniel, je ne vous connais pas, mais je veux entreprise de divertissement montréalaise, il lui a ci a appris qu’il dirigeait la populaire et audacieuse cier invité. Depuis longtemps admirateur de M. chef de la direction du Cirque du Soleil, a participé « Je pense bien avoir vu la plupart de vos spec- « Allez-y, M. Buffet? » a-t-il répondu. Cette approbation était évidemment la bienve- rifkin TalenT Q2.2011 47 48 “Banana Shpeel”wasa$25million debacle. 100 millionpeoplein300citiesonfivecontinentsformore Q2.2011 (nearly double that of the New York Yankees), theNewYork 5,000employ- (nearly doublethatof Nearly 15millionpeoplesawaCirqueshowin2010. His leadership skills are tested at every turn because Cirque because turn every at tested are skills leadership His ment dollar, the pressure is on Lamarre to continue to persuade magical andawe-inspiringliveproductions, creativity isthe most other business organizations. At Cirque, sound business its touring shows showed a 7 percent increase during the during increase percent 7 a showed shows touring its iconoclastic billionairefounderGuyLaliberté,butitisunlike its of control the under still and held privately only not is The New York Times, New and adisillusionedaudience.AccordingtoThe reviews disastrous to due York New in weeks six just after 2010 of summer the in closed show, Broadway a at attempt appointing audienceswouldbeunnecessary. privately The than aquartercentury, itwouldseemthatworriesaboutdis- humble beginnings on the streets of QuebecCityin1984. humble beginningsonthestreetsof revenues in million $800 reported a company,with held learned that costly lesson when “Banana Shpeel,” its initial initial its Shpeel,” “Banana when lesson costly that learned of world dynamic this in here, but essential, are decisions garde entertainmententityisbothexhilaratinganddaunting. countries), hasgrowntounimaginedproportionssinceits show-goers to put their derrières in Cirque seats. Although Cirque in derrières their put to show-goers ees (including more than 1,200 performersrepresenting50 ees (includingmorethan1,200 sales, Cirque must never, ever disappoint its audience. It audience. its disappoint ever never, must Cirque sales, of thousands of performances and billions of dollarsinticket performancesandbillionsof thousandsof of oxygen forthecompany’ssuccess. After26years, hundreds But for Lamarre, the task of runningthismassiveavant- But forLamarre,thetaskof Given the harsh economy and the shrinking entertain- shrinking the and economy harsh the Given Given thatCirqueduSoleilhasbeencheeredbynearly “Failing to fail sometimes tells you that you are not taking not are you that you tells sometimes fail to “Failing 2010. Lalibertéisanotedphilanthropistandfreespiritwho And that’s whatIhavetonurturehere.” Laliberté retains a reported 80 percent of thecompany,Laliberté retainsareported80percentof and Lamarre said. “When we opened “OVO,” our latest show,in latest “OVO,”our opened we “When said. Lamarre Montreal in2009, atthepremierepeoplekeptcomingupto Instead, he must work in the very long and intimidating and long very the in work must he Instead, It requires a willingness to regularly push beyond the busi- the beyond push regularly to willingness a requires It (“Rain Man,” “Batman,” “The Deep”), former CEO of Sony of CEO former Deep”), “The “Batman,” Man,” (“Rain He isalsothecreativegeniusbehindCirqueduSoleilandits rocket andvisittheInternationalSpaceStationfor12days mated $25milliontotakeaspaceflightonRussianSoyuz moonlights asaprofessionalpokerplayer. Hespentanesti- permanent seven has Vegas,Cirque Las where in recession, much higher. youdon’t If takechances, youwon’t getreal must walk along a leadership tightrope that is as intimidating me saying, `This is amazing. You caughtusbysurpriseagain!’ is amazing. me saying,`This magazine estimated his net worth at $2.7 billion in billion $2.7 at worth net his estimated Forbes magazine ist and fire eater who originally founded Cirque in1984. Cirque founded originally who eater fire ist and Entertainment. Mandalay of CEO currently and Pictures Peter Guber, aveteran,award-winningHollywoodproducer what he doesn’t want to do, and he doesn’t want to manage to want doesn’t he and do, to want doesn’t he what in 2009 (wherehebroughteachcrew memberaclownnose). ing without a net, and any misstep for this vaunted brand vaunted this for misstep any and net, a without ing publicrelationsexecutiveandnetworktelevisionchief ist, wildly imaginative version of thecircus.wildly imaginativeversionof victories.You’ll getremakes, rehashandrevivals.” as the real tightropes that his cast of talentedacrobatsmust as therealtightropesthathiscastof option. an not also is failure of Fear zone. comfort ness the company on a day-to-day basis.” interests What Laliberté trying to fill Laliberté’s impressively large shoes because “Guy, to Sin City. And in a world of instant gratification, an ever- an gratification, instant of world a in City.And Sin to him CEO in 2006. Lamarre insisted that he is not daunted by delegate,” Lamarre said. “He knows what he wants to do and do to wants he what knows “He said. Lamarre delegate,” du Soleilfresh,excitinganddesirableisacolossalchallenge. decreasing attention span, and ceaseless, eye-popping techno- unlike a lot of entrepreneurs, has always had the facility to facility the had always has entrepreneurs, of lot a unlike logical advancesinentertainmentofferings, keepingCirque creative enterprise, yourstatisticalprobabilityforfailureis creative chieftains. BecauseCirqueisprivatelyheld,Lamarrehasno can resultinadisastrousfall. cross inthemanyCirqueproductions. Likethem,heiswork- enough chances,” said Guber. “If you are risk averse in a a in averse risk are you “If Guber. said chances,” enough shadow of Guy Laliberté, the former stilt walker,accordion- stilt former the Laliberté, Guy of shadow directorstowhomhehasanswer.shareholders orboardof shows, asfewervisitorscame revenuesweredown7percent, of parameters. The 57-yearoldformerhockeyplayer, parameters.of The journal- “My biggest kick in life is to catch people by surprise,” by people catch to is life in kick biggest “My As acasestudyinleadership, Lamarreoffersauniqueset Laliberté recruited Lamarre to Cirque in 2001 and named Lamarre doeshavesomeadvantagesovermostcorporate Entertainment executives are a different breed, said breed, different a are executives Entertainment The Korn/ f erry i e T u T i nsT

Credit Briefings onTalen Briefings onTalen T Credit 2009, les spectateurs à la première n’arrêtaient pas de venir me fin brutalement à l’été 2010, après seulement six semaines tivité est l’oxygène qui assure le succès de l’entreprise. Après 26 tournée de spectacles ait connu une hausse de fréquentation un fiasco de 25 millions de dollars. Shpeel », sa première tentative de spectacle à Broadway, a pris Soleil qui se renou- bler absurde. La société fermée, qui enregistre un chiffre d’affaires gens par surprise, explique Daniel Lamarre. Quand nous avons artistes de 50 nationalités différentes), a connu une expansion namique fait de spectacles magiques et époustouflants, la créa- breux dans la « ville du péché ». Et dans un monde de plaisir baisse du même ordre, les touristes se faisant moins nom- velle, enchante et ans, des centaines de milliers de représentations et des milliards plusieurs fois lauréat (« Rain Man », « Batman », « Les grands spectacle du Cirque en 2010. à part, selon Peter Guber, producteur hollywoodien chevronné, dans 300 villes des cinq continents, cette inquiétude peut sem- du Soleil a été acclamé par près de 100 millions de spectateurs, sant et intimidant. Ses compétences de dirigeant sont mises à sacré au divertissement se réduit, Daniel Lamarre doit trouver société fermée toujours sous le contrôle de son fondateur icono- sept spectacles permanents, le chiffre d’affaires a connu une séduit est une épreuve de haute voltige. de New York) et compte 5 000 employés (dont plus de 1,200 de 800 millions de dollars (presque le double de celui des Yankees de Québec. Près de 15 millions de personnes ont assisté à un énorme entité du divertissement avant-gardiste est désenchanté. Selon The NewYork Times, Banana Shpeel a été d’affiche, à cause de critiques désastreuses et d’un public de dollars de ventes de billets, le Cirque n’a pas le droit de décev- comme on en trouve peu. Au Cirque, il est essentiel de prendre claste et milliardaire, Guy Laliberté, c’est aussi une entreprise l’épreuve à tout instant, car le Cirque n’est pas seulement une conserver un Cirque du du terrain dans l’offre de divertissement, et des technologies spectaculaires ne cessent de gagner éphémère, où la durée d’attention ne cesse de diminuer incroyable depuis ses humbles débuts, en 1984, dans les rues de le moyen de continuer à attirer les spectateurs. Bien que la les bonnes décisions d’affaires mais ici, dans cet univers dy- dre! » Et c’est cette force que je dois continuer à cultiver. » dire « C’est incroyable. Vous avez encore réussi à nous surpren- démarré « OVO » – notre tout dernier spectacle – à Montréal en oir son public. Il a appris cette leçon coûteuse lorsque « Banana 7% pendant la récession, à Las Vegas, où le Cirque présente brutalement « Ce qui m’excite le plus dans la vie, c’est de prendre les Étant donné que, depuis plus d’un quart de siècle, le Cirque Pour Daniel Lamarre, veiller au bon fonctionne ment de cette Dans un contexte économique difficile, où le budget con- Les dirigeants du monde du divertissement sont une race technologies divertissement dirigeants surprise, spectateurs même spectacles incroyable. cause renou première Peter continuer Cirque m’excite lauréat contexte Selon cette la Il épreuve et ville l’offre la permanents, millions » à a durée ordre, – récession, appris explique - l’été de Guber, du notre force spectaculaires The NewYork Times du du (« critiques à tentative de ait monde le d’attention Vous économique de T 2010, péché les à la Rain se de cette &l & divertissement, plus que connu tout attirer producteur première haute touristes réduit, Daniel dollars. à avez Man le l je ». dans après du dernier Las leçon eadership eadership désastreuses chiffre de dois les une Et voltige. divertissement encore », Vegas, Daniel Lamarre. spectacle ne ne dans la n’arrêtaient spectateurs. se seulement difficile, « coûteuse continuer hausse hollywoodien vie, cessent cesse spectacle Batman d’affaires faisant , Banana un réussi où Lamarre c’est Quand monde de le à de et où de Broadway, lorsque moins Cirque », à diminuer d’un de fréquentation à six – le pas a Shpeel cultiver. Bien sont gagner « nous à connu doit budget prendre nous Les semaines de Montréal chevronné, à la fois gri- de public nom présente une que « plaisir trouver surpren grands venir a Banana avons une a » été - con race la les pris me en - - zone de confort. La peur de l’échec n’est pas admise. « Ne jamais talentueux dans les nombreuses productions du Cirque. Comme ment. Il faut avoir la volonté de régulièrement s’éloigner de la réseau de télévision marche sur la corde raide du leadership, reprises et du réchauffé. » par une chute désastreuse. aussi effrayante que la corde raide parcourue par les acrobates Guy Laliberté, ancien échassier, accordéoniste, cracheur de feu Guy fonds »), ancien président et chef de la direction de Sony Pictures société et le magazine Forbes estime sa fortune à 2,7 milliards de société et occupant aujourd’hui le même poste pour Mandalay Entertain- journaliste, responsable des relations publiques et dirigeant d’un est un cas assez unique. À 57 ans, cet ancien joueur de hockey, de victoire véritable, mais plutôt que des nouvelles versions, des élevées. Si vous ne prenez pas de risque, vous n’obtiendrez pas créatrice, les probabilités d’échec sont statistiquement plus que-t-il. Si vous détestez prendre des risques dans une entreprise échouer signifie que vous ne prenez pas assez de risques, expli- des autres dirigeants: comme le Cirque est une société fermée, eux, il travaille sans filet, et le moindre faux pas peut se solder et créateur du Cirque en 1984. Ce dernier détiendrait 80% de la d’administration. Il travaille plutôt dans l’ombre intimidante de et il n’a pas de comptes dollars en 2010. Philanthrope reconnu, libre-penseur et joueur dollars éineqiar ué1 or i vi apréu nez de périence qui aura duré 12 jours (il avait rapporté un périence dollars pour un vol dans l’espace à bord de la fusée russe Soy- de poker professionnel, il a dépensé en 2009 25 millions de dollars de ouz et une visite de la station spatiale internationale; une ex- ouz clown à tous les membres de l’équipage). Il est également le clown créateur nommé président et chef de la direction en 2006. Celui-ci nommé ment imaginative du cirque. ment créateur de génie du Cirque du Soleil et de sa version folle- créateur insiste sur le fait qu’il n’a pas peur d’essayer d’enfiler les insiste énormes énormes chaussures de Guy Laliberté qui, contrairement à C’est lui, par exemple, qui a négocié pendant trois ans avec C’est Laliberté, s’est affirmé en tant que dirigeant au sein de l’organisation. s’est de de nombreux entrepreneurs, a toujours délégué facilement. poker En tant que sujet d’étude sur le leadership, Daniel Lamarre Daniel Lamarre possède certains avantages sur la plupart tendances à réunir dans une production du Cirque. tendances et et en nombreux Guy Laliberté a recruté Daniel Lamarre en 2001 et l’a Guy une à pour imaginative affirmé lui, le Daniel Lamarre s’occupe des décisions d’affaires et Daniel veaux concepts, de nouveaux artistes et de nouvelles veaux tous sur 2010. qui professionnel, président du de Laliberté magazine visite chaussures par un ancien le Cirque aura génie les à concepts, fait vol exemple, Lamarre Philanthrope en réunir dans dans de entrepreneurs, membres duré Apple Corps Ltd. et MGM Resorts en vue de Apple dans tant qu’il du grand succès « LOVE », qui rend hommage grand la présentation à Las Vegas du spectacle à la et du échassier, a la en à rendre aux actionnaires ni au conseil intéresse intéresse Guy Laliberté, c’est de voyager Forbes le monde entier à la recherche de nou- recruté présentation le chef station Cirque cirque. dans 1984. de 12 que il n’a monde l’espace s’occupe Corps de qui succès a Guy jours de de estime dépensé pas dirigeant une nouveaux a Daniel reconnu, jour jour n’en fait pas partie. Ce qui du Ce spatiale la l’équipage). accordéoniste, Guy Laliberté négocié Ltd. entier peur a direction (il production Soleil dernier « à toujours n’en des bord LOVE à Laliberté, avait sa et Lamarre Las en d’essayer au fortune internationale; MGM à décisions artistes et libre-penseur fait pendant qui, de la 2009 détiendrait rapporté Vegas », sein de en Il recherche pas délégué la qui société société au jour le est du Resorts sa contrairement c’est 2006. en fusée de cracheur térêts térêts et gérer la à Il Il connaît ses in- 25 et rend partie. version du Cirque. d’enfiler 2,7 également connaît trois 2001 l’organisation. d’affaires de un millions de spectacle Q2.2011 49 50 — Lamarre has unabashed affection for these performers, un- performers, these for affection unabashed has Lamarre Q2.2011 World. HeandLalibertélongagoestablishedasymbioticrela- mentary made in 2009 by Canal D in Quebec. “Daniel has a has “Daniel Quebec. in D Canal by 2009 in made mentary relationship with the artists who are the lifeblood of Cirque. of lifeblood the are who artists the with relationship for thisarticle,spokeaboutLamarreina“Biographies” docu- for things to get done, when his mind is set, he will take the take will he set, is mind his when done, get to things for with AppleCorpsLtd.andMGMResortstopavethewayfor was Lamarre,forexample,whospentthreeyearsnegotiating is travelingtheworldseekingnewconcepts, newperformers a realestatedeveloper, Dubai whicharebothsubsidiariesof and new trends that can coalesce into a Cirque production. is a Ringling Brothers & Barnum and Bailey clone. It encom- It clone. Bailey and Barnum & Brothers Ringling a is nizations. Inaddition,hecanfeelLamarre’s deep, empathetic nearly impossible to describe. One thing it is decidedly is it thing One describe. to impossible nearly better andsustainable. brates the music of The Beatles. In2008, The brates themusicof Lamarrealsospear- passes somecircus-likeactssuch asjugglers, tightropewalk- tionship withasinglegoal:tomakeCirqueduSoleilbigger, time andbeaspatienthepossiblycantocloseadeal.” cele- which “LOVE,” show, Vegas Las successful highly the headed the sale of a20 percentstakeinCirquefor$600mil- headed thesaleof leadership acumen,establishedoveralongandvariedcareer lion to Istithmar World, an investment company, and Nakheel, lished afirmleadershippositionwithintheorganization.It doubtedly feeling that lure of the circus that tempts just about great quality: he is patient,” Laliberté said. “Even if heiseager Lalibertésaid.“Evenif great quality:heispatient,” every boywhohasvisitedtheBig Top. much of whichhasbeeninprivatelyheld,family-runorga- muchof Lamarre makes the business decisions and has estab- has and decisions business the makes Lamarre What makes Laliberté most comfortable is Lamarre’s is comfortable most Laliberté makes What The media-shyLaliberté,whodeclinedtobeinterviewed The Without animalacts, Cirqueis threeringsandsawdust, not At Cirque’s massive international headquarters in a nonde- a in headquarters international massive Cirque’s At A Road Less Traveled flying off trampolines and teeter-totters, perfecting tech- perfecting teeter-totters, and trampolines off flying rests in the hands of an engaged and effective leadership. effective and engaged an of hands the in rests revenue level that took Ringling Brothers more than 100 years mers, tumblers and divers fantasy. Most patrons, adults and children alike, spend the spend alike, children and adults patrons, Most fantasy. ing the music and choreography of Michael Jackson isslated MichaelJackson ing themusicandchoreographyof Vegas,in Lasjoiningtwogianthits, theaquaticsensation“O” is remarkably calm, given the pulsing, energized organiza- energized pulsing, the given calm, remarkably is ing business book, “BlueOceanStrategy,”ing businessbook, W. by ChanKim its successbydrawingcustomersfromcompetitors. “Instead,” wrote KimandMauborgne,“itcreateduncontestednewmar- which traditionalstrategicanalysispointedtolimitedpoten- was thatthegrowthattainedinadecliningindustry alone are staggering in both cost and staff time.Showsmust alone arestaggeringinbothcostandstaff and yellow big top, audiences are transfixed by the dazzling the by transfixed are audiences top, big yellow and and theequallypopular“LOVE.”Yet anothernewshowfeatur- niques and practicing for new and existing productions. Staffs a whole new group of customers and RenéeMauborgne(HarvardBusinessSchoolPress, 2005), and sounds. CitingCirqueasitskeycasestudy, thebest-sell- amazing!” be conceived,scriptswritten,musiccomposed,setsdesigned, pointed outthatinlessthan20 years, Cirquehadattaineda prepared to pay a price that is several times as expensive as expensive as times several is that price a pay to prepared to debut in 2011. At its touring shows, under its signature blue tion that surrounds him. The Montreal campus is where ev- where is campus Montreal The him. surrounds that tion tial forgrowth. was more remarkable, the authors pointed out, What to reach. traditional circuses for their unprecedented entertainment unprecedented their for circuses traditional ket space that made the competition irrelevant. Itappealedto ket spacethatmadethecompetitionirrelevant. hearsed, and the logistics of complex tours calculated and and calculated tours complex of logistics the and hearsed, like productions. With 1,200 performers from 50 countries 50 from performers 1,200 With productions. like ute toElvisPresley, whichbecameitsseventhresidentshow costumes handmade, performers hired, trained and re- and trained hired, performers handmade, costumes executed. And the difference between success and failure and success between difference the And executed. erything is conceived, designed and produced for all Cirque all for produced and designed conceived, is erything evening in rapt wonder repeating to themselves, “That’s “That’s themselves, to repeating wonder rapt in evening experience.” ers, contortionists, acrobats and clowns, but each of its 21 its of each but clowns, and acrobats contortionists, ers, shows. A tour of the vast complex reveals troops of acrobats of troops reveals complex vast the of tour A shows. speaking 25differentlanguages, theproductioncapabilities dream- these of creators the to freedom of levels significant skills of its performers its of skills script neighborhood in northeast Montreal, Daniel Lamarre Daniel Montreal, northeast in neighborhood script shows is a captivating amalgamation of jaw-droppingsights shows isacaptivatingamalgamationof of artisans work on hats, shoes and colorfully extravagant colorfully and shoes hats, on work artisans of Most impressivewasthefactthatCirquedidnotachieve To hitshows, createasteadystreamof Cirquehastooffer For example,in2010, Elvis,” atrib- Cirquelaunched“Viva — former gymnasts, dancers, swim- dancers, gymnasts, former — who create tightly choreographed The Korn/ f — adults and corporate clients erry i e T u T i nsT

Credit Briefings onTalen T Credit « Daniel possède une grande qualité: il est patient, raconte-t-il. « LOVE ». Un nouveau spectacle mettant en scène la musique et World. Guy Laliberté et lui ont depuis longtemps construit une re- 600 millions de dollars, à Istithmar World, société d’investisse- taire « Biographies », réalisé en 2009 par Canal D au Québec. Lors de ces tournées, sous le célèbre chapiteau jaune et bleu, les tionnel spectacle aquatique « O » et le tout aussi populaire traditionnel pour vivre une expérience sans précédent. » tel exploit en enlevant des clients à la concurrence. « Au lieu de gleurs, des funambules, des contorsionnistes, des acrobates et met en scène quelques classiques du cirque, comme des jon- ni de sciure de bois… le Cirque est presque impossible à meilleur et durable. ment, et Nakheel, promoteur immobilier, deux filiales de Dubai négociation. » à la musique des Beatles. En 2008, il a également piloté la vente manent à Las Vegas, rejoignant deux énormes succès: le sensa- mage à Elvis Presley, qui est devenu son septième spectacle per- ans à atteindre. Ce qui est encore plus remarquable, constatent a atteint un chiffre d’affaires que les Frères Ringling ont mis 100 sentant sans doute ce charme qui séduit presque qui- C’est un homme d’action, mais une fois qu’il a pris une déci- prises prêts à payer plusieurs fois le prix d’un spectacle de cirque nouveau marché, rendant la concurrence hors de propos. Il a attiré tout un stratégie du Cirque, l’ouvrage économique à succès « Stratégie son et image spectaculaire. En réalisant une étude de cas sur la des sociétés fermées et familiales. De plus, il sent bien conque visite le grand chapiteau. du Cirque. Il a une affection sans limites pour eux, res- chef de la direction avec les artistes qui sont l’essence la relation profonde et empathique qu’entretient le sion, il sait attendre le temps qu’il faut pour mener à bien une décrire. Une chose est sûre, il n’a les cirques des Frères Ringling et de Barnum & Bailey. Il des clowns, mais chacun de ses 21 spectacles est une expérience dial Éditions, 2008) nous montre qu’en moins de 20 ans, le Cirque d’une lation symbiotique avec un seul but: rendre le Cirque plus grand, et variée dont fait preuve Daniel Lamarre, bâti au fil d’une carrière longue dustrie en déclin, au potentiel de croissance limité si on en croit les auteurs, c’est que cette expansion est survenue dans une in- les chorégraphies de Michael Jackson doit déjà démarrer en 2011. cela, écrivent les auteurs, il a incontestablement créé un nouveau l’analyse stratégique traditionnelle. océan bleu » de En 2010, par exemple, le Cirque a lancé « Viva Elvis », hom- Fait impressionnant s’il en est, le Cirque n’a pas accompli un Ici, Guy Laliberté parle de Daniel Lamarre dans un documen- Ce qui rassure Guy Laliberté, c’est le sens aigu du leadership participation de 20% dans le Cirque, pour un montant de pas de numéros d’animaux, ni de trois pistes, groupe de clients – des adultes et une clientèle d’entre- — dont la majeure partie s’est déroulée dans W. Chan Kim et Renée Mauborgne (Village Mon- &l eadership rien en commun avec croit l’analyse stratégique traditionnelle. au potentiel de croissance limité si on en est survenue dans une industrie en déclin, mis 100 ans à atteindre. Cette expansion chiffre d’affaires que les Frères Ringling ont En moins de 20 ans, le Cirque a atteint un Le chemin le moins fréquenté Dans ses bureaux de l’imposant siège social international du troupes d’acrobates s’envolant des trampolines et des balan- Daniel Lamarre semble remarquablement calme, compte tenu Montréal, il parle couramment anglais, avec un accent québécois une présence imposante au sein de l’organisation. Originaire de titions et les entraînements de hockey ou de football. Il se souvi- graphique. La plupart des spectateurs, adultes ou enfants, pas- grand amateur d’art et de théâtre. À l’école, il a joué plusieurs mise en scène, fabriquer les costumes à la main, recruter des peaux, chaussures et costumes colorés et extravagants, pendant productions existantes et à venir. Des artisans fabriquent cha- autant en termes de coûts que de travail. Il faut concevoir les acrobates et plongeurs – qui créent une véritable magie choré- marqué. Assez talentueux pour jouer au hockey junior, niveau par Cirque, dans un quartier défavorisé du nord-est de Montréal, artistes, les former et les faire répéter. Enfin, il faut élaborer la rôles dans des pièces de Molière, essayant de concilier les répé- Grand-Mère, petite ville située à mi-chemin entre Québec et aussi, contrairement à la plupart de ses coéquipiers et adversaires, formances des artistes spectateurs sont cloués à leur siège devant les éblouissantes per- sent la soirée dans un émerveillement incessant. spectacles, écrire les scénarios, composer la musique, faire la spectacle récemment conçu qui sera présenté dans des endroits et parlant 25 langues, demande à elle seule des moyens énormes doit laisser une grande liberté aux créateurs de ces productions encore jamais visités par le Cirque. que l’équipe de décorateurs construit différents plateaux pour un çoires, perfectionnant leurs techniques et s’entraînant pour des cles que tout est conçu, créé et produit pour l’ensemble des specta- de toute l’agitation qui l’entoure. C’est au campus de Montréal l’échec dépend d’un leadership engagé et efficace. logistique et la mettre en place. La différence entre le succès et lequel passent un grand nombre de futures stars de la LNH, il était ent qu’il pouvait être plongé un soir dans le monde des artistes et oniriques. La production, qui rassemble 1,200 artistes de 50 pays du Cirque. Une visite du vaste complexe permet de voir des Pour créer un flot constant de spectacles à succès, le Cirque Daniel Lamarre a été un athlète accompli, et il est devenu — anciens gymnastes, danseurs, nageurs, ont Q2.2011 51 52 “The first time I met him I was very impressed,” Burson said. Burson impressed,” very was I him met I time first “The Q2.2011 Molière atschool,tryingtojugglerehearsalswithhockeyor marre speaks fluent English with a marked French-Canadian minutive stature belies his athletic achievements, along with football practice. He recalls being immersed “in the world of football practice.Herecallsbeingimmersed“intheworldof ing. He joined a Montreal public relations (PR) firm after grad- ingenious, hyperactive organization. Just 5’7”, Lamarre’s di- Lamarre’s5’7”, Just organization. hyperactive ingenious, as a journalist again. Lamarre’s résumé is marked by a string a by marked Lamarre’sis again. résumé journalist a as University,Ottawa at college a throughout envisioned and he artists anddreamers” onenightandthenextbeingin an esthete and a theater lover. He took roles in productions of accent. accent. He was a good enough hockey player to reach Juniors, venues. newly conceivedarenashowthatwilltourheretoforeuntried perience under his belt. The headhunter persisted and despite position required a 40-something PR veteran with 15 years’ ex- the firm’s legendary founder and CEO, Harold Burson. tion. Opening Montreal’s Burson office, Lamarre immediately the discrepancy in qualifications, Burson offered him the posi- treal office and requested an interview with Lamarre. teammates. the middle of a fist-pounding melee on the ice with his hockey the tough Canadian minor leagues that are a regular breeding tiny hamlethalfwaybetweenQuebecCityandMontreal,La- his large organizational presence. A native of GrandMère,a his largeorganizationalpresence.Anativeof ler, thegiantNew York-basedPR firm,wantedtostartaMon- worked never he college, career.after journalism long fact, In uation and was just gaining career traction when a headhunter ground for NHL stars. But unlike most jocks, Lamarre was also called with an opportunity. In the early 1980s, Burson-Marstel- costumes, while set designers construct various stages for a for stages various construct designers set while costumes, snagged two or three new clients and caught the attention of snagged twoorthreenewclients andcaughttheattentionof of of impressive positions that found him when he was not look- In his corner office, Lamarre serves as über-maestroof the Now 90, Harold Burson has vivid memories of Lamarre. of memories vivid has Burson 90,Harold Now He politely declined. He was just 28 years old, and the open He became a journalist at age 16, writing for the local daily, “He was smart. He engaged people very well and came across came and well very people engaged He smart. was “He Lamarre’s careertotakeoff.“Iknewhewouldbesuccessfulin Lamarre to run his vast media empire. It was the proverbial of- ItwasagestureLalibertéwouldnotforget. Laliberté luck. Laliberté calledLamarreandsaidhecouldnotpaytheagen- Marsteller officeinMontrealthatLamarrehadcreated.Dur- He showed an ability to motivate people at an early age and age early an at people motivate to ability an showed He feel comfortableworkingwithhim,andheisalwaysthinking forward in unconventional directions and thinking outside thinking and directions unconventional in forward fer toogoodtorefuse.National’s Beauregard,likeBurson,had found hisprofessionalhome.Butonceagain,acallfromout ing CanadianPRagencyfoundedbyLucBeauregard,Lamarre ing histenureatNational, Lamarresignedthethen-obscure Burson- very the acquiring up ended National twist, ironic when he left us, I was very unhappy.” Indeed, Burson expected are enthusiasticaboutworkingforhim.” Cirque duSoleilasaclientandhelpedguideLaliberté’s early nonaggressive. nonthreatening, yet secure, very someone as viewed Lamarreashiseventualsuccessorandruedloss. Group, Quebec’s largest private television network, recruited big. He has a knack for surrounding himself withpeoplewho big. Hehasaknackforsurroundinghimself Quebec’s powerful media magnate and owner of the TVA the of owner and magnate media powerful Quebec’s possibly succeedme.” job. Lamarre callsAndréChagnon“my spiritualdad.” Ahighly tion andhisabilitytoseetheenterprise ashisown,charging helped buildthefirmintoCanada’s largestPRoperationwith leader,” Beauregard said. “He has the ability to make people make to ability the has “He said. Beauregard leader,” cy’s fee.Lamarregraciouslyforgavethepaymentandwished clients suchasMolsonBeer, Coca-ColaandMcDonald’s. Inan efforts at building an audience. At one troubled juncture, troubled one At audience. an building at efforts successful entrepreneur, Chagnon admired Lamarre’s ambi- Lamarre’s admired Chagnon entrepreneur, successful some part of the business, and honestly, I thought he might he thought honestly,I and business, the of part some of thebluemadeLamarrepackuphisoffice.AndréChagnon, of “I knewhecouldnotrefusethatopportunity. He’s agood Lamarre stayedatNational until1997, believinghehad Being a lover of themediaandarts,Being aloverof TVAwasadream Recruited away to National Public Relations, an emerg- an Relations, Public National to away Recruited The Korn/ f erry i e T u T i nsT

Credit Briefings onTalen Briefings onTalen T Credit TIONAL finit par acquérir le bureau de Burson-Marsteller à Mon- tréal et souhaitait lui faire passer une entrevue. Étudiant à l’Université d’Ottawa, il se voyait faire une longue car- Burson avait le pressentiment que sa carrière s’envolerait. « Je ton menaçant ou agressif. Encore tout jeune, il était doué pour une forte impression, se souvient-il. Il était brillant. Il avait beau- toujours de la réponse Laliberté se souviendra Pendant une période difficile, celui-ci ap- tréal, celui-là même créé par Daniel Lamarre. Alors qu’il est en NATIONAL jusqu’en 1997, NATIONAL toujours Laliberté Pendant ronné ayant 15 ans d’expérience dans le domaine. Le chasseur new-yorkaise Burson-Marsteller, voulait ouvrir un bureau à Mon- poche, il a joint une entreprise de relations publiques montréal- rière de journaliste, qui s’est arrêtée en fait avec l’université. Son plein essor fondé par Luc Beauregard, Daniel Lamarre a contribué motiver les autres et son départ de la société m’a attristé ». M. précis de lui. « La première fois que je l’ai rencontré, il m’a fait années 1980, la gigantesque entreprise de relations publiques aise où sa carrière s’amorçait à peine lorsqu’un chasseur de têtes à paiement et lui a souhaité bonne nir qu’il ne peut pas payer ce pelle Daniel Lamarre pour le préve- premiers efforts pour se constituer un public. poste chez NATIONAL, il signe un contrat avec un client alors in- paiement premiers furieuse, sur la glace, avec ses coéquipiers. savais qu’il aurait du succès dans le domaine et, honnêtement, des rêveurs et le lendemain, se retrouver au milieu d’une mêlée de têtes a insisté et, faisant fi de son manque de qualifications, car le poste était fait sur mesure pour un quadragénaire chev- qui lui sont tombés dessus sans qu’il les cherche. Son diplôme en curriculum vitae est une longue succession de postes prestigieux je pensais même qu’il pourrait me succéder. » coup d’entregent et d’assurance, mais sans jamais employer un clients et a attiré l’attention du fondateur, président et chef de de Burson à Montréal, Daniel Lamarre a décroché deux ou trois le grand cabinet lui a offert le poste. Dès l’ouverture du bureau comme Molson, Coca-Cola et McDonald’s. Ironie du sort, NA- l’a contacté pour lui proposer une occasion en or. la direction légendaire de l’entreprise, Harold Burson. chance. de Daniel Lamarre qui qu’il doit au cabinet. Guy connu, le Cirque du Soleil et guide Guy Laliberté dans ses convaincu d’avoir trouvé convaincu chance. connu, lui a dit d’oublier le en faire le chef de file du secteur au Canada, avec des clients Daniel qu’il dit doit Alors À 16 ans, il est devenu journaliste pour le quotidien local. À maintenant 90 ans, Harold Burson garde un souvenir très Embauché par NATIONAL, cabinet de relations publiques en Daniel Lamarre reste chez Daniel Daniel celui-là chez le d’oublier ne de une se au efforts Cirque âgé de 28 ans seulement, il a décliné l’offre poliment, Lamarre et d’avoir jusqu’en NATIONAL, peut la souviendra Lamarre Lamarre cabinet. lui période même réponse a pas pour du le souhaité trouvé qui Soleil 1997, payer créé reste Guy pour difficile, se il T constituer signe &l & par et le chez ce bonne guide préve l Daniel celui-ci un eadership eadership contrat - Guy un Lamarre. ap public. Laliberté - avec Alors un dans Au début des client qu’il ses alors est en in - figure l’obtention des droits télévisés mondiaux du Cirque du So- Alors, d’après toi, laquelle va changer ta vie? » Il a appris qu’un tombé du ciel lui fait quitter son poste. André Chagnon, puissant tout, il doit tempérer son enthousiasme. « Il m’a appris à me tions inédites et sachant sortir des sentiers battus. Par-dessus tes à l’idée de travailler pour lui. » tombées Daniel Lamarre. « Ce type m’a sauvé la mise il y a 12 ans, lui a-t- télévision d’écarter l’offre concurrente et d’accorder les droits à tombées inattendues. une bonne idée en se demandant si elle est viable ou non. mire l’ambition de « son dauphin » et sa capacité à considérer magnat des médias québécois et propriétaire du groupe TVA, prin- ant, reconnaît-il. Travailler avec lui est agréable et c’est quelqu’un venus ambitieux et il a été constamment récompensé par des re- avait déjà été conclu avec une autre société. Lorsque Guy Lalib- spirituel ». Entrepreneur immensément prospère, celui-ci ad- ses rêves au sein de TVA. Il appelle André Chagnon son « père son empire. Luc Beauregard, comme Harold Burson avant lui, voit soutenir, mais sa carrière Daniel Lamarre a pris l’habitude d’aider de nouveaux et regrettera amèrement cette perte. en Daniel Lamarre son éventuel successeur à la tête de NATIONAL cipal réseau de télévision privé du Québec, le recrute pour diriger l’entreprise où il fera carrière. Mais une fois encore, un appel concentrer », explique Daniel Lamarre. Il me disait: « Je vais te l’entreprise comme la sienne, allant de l’avant dans des direc- qui voit grand. Il a le don de s’entourer de personnes enthousias- erté a eu vent de la situation, il a ordonné à son responsable de la en ce sens auprès du Cirque, il s’est vu répondre qu’un accord chimères, mais qu’à un moment donné, il faut savoir défendre dirigeant d’une entreprise de divertissement peut poursuivre des leil aujourd’hui d’une valeur inestimable. Après des démarches il dit, et s’il veut nos droits télévisés, il les aura ». Tout au long de « Je savais qu’il ne pouvait pas refuser. C’est un bon dirige- Fervent amateur de médias et d’art, il a trouvé l’emploi de Parmi les opérations les plus remarquables qu’il a menées inattendues. tu ne peux pas faire dix choses en même temps. meure meure président et chef de la direction. qu’il qu’il à à un groupe qui a clairement fait savoir André André Chagnon a décidé de vendre TVA un pas pas le Cirque? » souhaitait que Daniel Lamarre de- cette cette offre. Il adore le monde de la souhaitait tuel tuel partait. Pourquoi ne rejoins-tu groupe dit: dit: « J’ai appris que ton père spiri- président Moins Moins de quatre ans plus tard, Mais, Mais, nouveau coup de télé- de de la voix de Guy Laliberté qui lui le télévision télévision et a bien l’intention de phone. phone. Il s’agit indubitablement Daniel Daniel Lamarre est dérouté par Chagnon Cirque? partait. la offre. « continuer continuer avec les nouveaux J’ai voix propriétaires. propriétaires. Cependant, le qui nouveau de Lamarre Il que appris Il et a quatre de s’agit Pourquoi » a et adore clairement chef décidé Daniel Guy a avec bien coup que indubitablement est le de ans Laliberté les monde Cependant, de Lamarre ton l’intention ne la dérouté de Q2.2011

53 54 Lamarre has made career-long habit of helping out ambi- out helping of habit career-long made has Lamarre television his ordered he situation, the of wind got Laliberté Q2.2011 Q2.2011 It was the unmistakable voice of Laliberté, who said, “I hear “I said, who Laliberté, of voice unmistakable the was It your spiritual father is leaving. Why don’t you join the circus?” your life?’ your life?’ ” Lamarrelearnedthataleaderinanentertainment remain as president and CEO. But once again, the phone rang. marre. “This guy helped me out 12 years ago and he wants he and ago years 12 out me helped guy “This marre. marre, who views himself asarationalthinker,marre, whoviewshimself grappledwith me, ‘I will support you, but you cannot do 10 things at the at things 10 do cannot you but you, support will ‘I me, ness and had every intention of stayingonwiththenewown- ness andhadeveryintentionof an outside group, which made it clear they wanted Lamarre to pected paybacks. pected understandingwhethertheideacanliveornot. process of the decisionforthreeagonizingweeks. unex- with rewarded constantly is he and newcomers, tious the box. If anything,ChagnonhadtoreininLamarre’sthe box.If enthu- had already been struck with another media outlet. When When outlet. media another with struck been already had life,” Lamarre said. “There was nothing rational about it.”life,” Lamarre said. “There He Soleil’s now-valuable global broadcast television rights. He rights. television broadcast global now-valuable Soleil’s chance toexperienceatrulyinternationalorganization.La- called Cirque seeking the rights and was told that a deal deal a that told was and rights the seeking Cirque called ers. But Cirque offered not just glitz and glamour but the but glamour and glitz just not offered Cirque But ers. La- to it award and deal other the of out pull to executive she must build a case for a good idea by going through the through going by idea good a for case a build must she same time.Sowhichdoyoureallybelieveisgoingtochange told “He said. Lamarre focus,” to how me taught “He siasm. our television rights,” Laliberté said. “Do what you have to.”have you what “Do said. Laliberté rights,” television our organization can pursue unicorns but at some point, he or he point, some at but unicorns pursue can organization “It was the toughest and most emotional decision of my Among Lamarre’s notable deals was landing Cirque du Cirque landing was deals notable Lamarre’s Among Lamarre was floored by the offer. He loved the TV busi- TV the loved offer.He the by floored was Lamarre Less than four years later, Chagnon decided to sell TVA to “My mission is to find work for artists.” That admiration and admiration artists.”That for work find to is mission “My The Art of Leadership Lamarre’s eventuallysucceedingLalibertéasCEO, itwas“im- Lamarre to take his time learning the new environment. environment. new the learning time his take to Lamarre I’m going to I’m join the circus,are you The doing?’ he said, ‘What Within 10 months, he asked Lamarre to take over the core the over take to Lamarre asked he months, 10 Within National PublicRelations, notedthatLamarre makesapoint is crucial to his vision and strategy. “I love artists,” he declared. Cohon, founder of McDonald’sinCanadaandRussia,accom- Cohon, founderof nership to bring Cirque to the Russian and Ukrainian mar- Ukrainian and Russian the to Cirque bring to nership On an early October Saturday night, anewCirqueduSoleil On anearlyOctoberSaturdaynight, plied,” accordingtoLamarre.“Itwasnotagiven,”hesaid.“I pansion of thebrand.Morethananything,ithascontinu- pansion of panied Lamarretothegalaopening.CohonandhissonCraig business and eventually stepped aside and made him chief business andeventuallysteppedasidemadehimchief benchmark tostudy.” Lalibertécounseledpatienceandurged mis- was year first “The struggled. Lamarre model, business joying amealpriortotheshow, andLamarrewantedtogreet the artists. the Big Top té’s offer and in 2001 joined Cirque du Soleil as part of Lalib- of part as Soleil du Cirque joined 2001 in té’s and offer the family.” Cohon, who has worked closely with Lamarre with closely worked has family.”who the Cohon, them and chat. “Heknowsthemandtheyknowhim,”Cohon them andchat. happy that I was at the Lamarre TV recalled. network,” “I was a kets. Cohonsaidaboutthe“Corteo” “Itwasamagicalnight,” had toearnit.” doing,” Cohon said. “That’s what a good leader should be doing.” hands. Heismorelikefamily. Heislikethepatriarchrunning had agreedtoLamarre’s requestayearearliertocreatepart- learn more about what’s going on at the ground level of the of level ground the at on going what’s about more learn go into the kitchen.” There, the Cirque performers were en- were performers Cirque the kitchen.” There, the into go celebrity to him, and he was excited about that. So when I said consulted with his closest advisor, his father. “My dad was so company and with the brand than anything else he could be could he else anything than brand the with and company erté’s brain trust. Though therehadbeennoformaltalkabout erté’s Though braintrust. executive in2006. HisdecadeatCirquehasbeenmarkedby no is there that entity unique a such is “It said. he erable,” since Lamarre handled the McDonald’s Canada account at account Canada McDonald’s the handled Lamarre since stunning growth,increasedprofitabilityandimpressiveex- said. “It’s notlikesomeCEOinadarksuitwanting toshake Moscow.George in open to set “Corteo”was named, show only concept he had of a circus was of the of was circus a of had he concept only of visitingeveryCirqueshowatleastonceayeartomeetwith of ously testedLamarre’s leadershipskills. out in all their finery, Lamarre turned to Cohon and said, “Let’s crowdslovedit.” opening. “The “Sitting with the artists, having coffee and talking, he can he talking, and artists,coffee the having with “Sitting A couple of hours before showtime, amid the VIPs decked Immersing himself inCirque’sImmersing himself distinctivecultureand Throwing caution tothewind,LamarreacceptedLaliber- Throwing For Lamarre, the connection to his artists and performers — and he envisioned me working in a trailer.” The Korn/ f grand chapiteau grand erry i e T u T i nsT —

Credit Briefings onTalen T Credit « Mon père était tellement heureux que je travaille pour un réseau « La première année a été désastreuse, se souvient-il. Je n’avais « Rien n’était acquis, explique-t-il, je devais le mériter. » Un samedi soir de début octobre, un nouveau spectacle du Cirque L’art de diriger tistes dégustent leur repas avant d’entrer en scène, question de télévisé, se souvient-il. Pour lui, j’étais une célébrité et cela le ren- teau, et il m’imaginait en train de travailler dans une caravane. » aussi la chance de travailler au sein d’une organisation d’envergure Cirque ne lui offre pas seulement le faste et le glamour, mais pagne Daniel Lamarre au gala d’ouverture. Un an plus tôt, celui-ci personnalités parées de leurs plus beaux atours, Daniel Lamarre Cohon, fondateur de McDonald’s au Canada et en Russie, accom- ma vie, explique-t-il. Il n’y avait rien de rationnel là-dedans. » Il ariat pour implanter le Cirque dans les marchés russe et ukrain- admettre qu’il a vécu trois semaines d’agonie avant de prendre Cohon, qui a aussi collaboré avec Daniel Lamarre, alors respon- Il est un membre de la famille, un peu comme le patriarche ». M. gurante, une rentabilité en hausse et un accroissement impressi- Cirque, il s’est exclamé: « Mais qu’est-ce que tu es en train de sent, s’étonne George Cohon, il n’a rien du chef de la direction en prendre le relais dans les activités principales de l’entreprise pour nouvel environnement. Au bout de dix mois, il lui demande de sa décision. Guy Laliberté. Bien qu’il n’y ait eu aucune conversation officielle au Cirque du Soleil comme membre du groupe de conseillers de sable du compte McDonald’s Canada chez NATIONAL, a remar- aucun point de repère ». Guy Laliberté lui conseille d’être patient ment mis à l’épreuve ses compétences de dirigeant. du Soleil nommé « Corteo » prend l’affiche à Moscou. George faire? » La seule vision qu’il avait du cirque, c’était le grand chapi- et son fils costume sombre qui passe en coup de vent pour serrer des mains. demande à M. Cohon de l’accompagner dans la cuisine où les ar- de l’ouverture de « Corteo ». La foule a adoré ». sur le fait qu’il pourrait éventuellement prendre la relève au poste les saluer et de bavarder un peu. « Il les connaît et ils le connais- demande alors l’avis de son conseiller le plus proche: son père. internationale. Se considérant comme un être rationnel, il doit dait très fier. Aussi, quand je lui ai dit que j’allais travailler pour le ien. « C’était une soirée magique, déclare George Cohon au sujet de fonctionnement n’a pas été de tout repos pour Daniel Lamarre. de décennie au sein du Cirque a été marquée par une croissance ful- ensuite s’effacer et le nommer chef de la direction en 2006. Sa et l’encourage à prendre son temps pour se familiariser avec ce onnant de la notoriété. Mais surtout, ces années ont continuelle- président et chef de la direction, ce plan était « implicite ». « Cela a été la décision la plus difficile et la plus émotive de L’immersion dans la culture unique du Cirque et son modèle Quelques heures avant le début du spectacle, entouré de Il décide de foncer et d’accepter l’offre et, en 2001, il entre Craig avaient accepté la demande de créer un parten- &l eadership geants de ce secteur d’activité. Cirque au moins une fois par an pour rencontrer les artistes. avec eux est la meilleure façon d’apprendre ce qui se passe sur ment est une succession de défis hors norme. marre. Il est convaincu que la plupart des dirigeants traditionnels modeste de l’organisation – ont alimenté la réussite de Daniel La- naires du Cirque – de Guy Laliberté jusqu’à l’employé le plus admiration et cette aisance qui ont habité les créateurs vision- à Guy, à son équipe de création et à nos artistes d’aller au bout qué que celui-ci se fait un devoir d’assister à chaque spectacle du dirigeant ». le terrain, explique George Cohon. C’est ce que doit faire un bon de l’Université Southern California, qui donne des cours aux diri- d’une entreprise de divertissement doit être bilingue au sens où déclare-t-il. Ma mission, c’est de leur trouver du travail ». Cette est essentiel à sa vision et à sa stratégie. « J’adore les artistes, de leurs rêves ». c’est de réunir les bonnes conditions financières pour permettre d’entreprise prospère. C’est aussi simple que cela. Mon travail, écoles de gestion. de vue totalement différent de celui qui est véhiculé dans les échoueraient dans le milieu du cirque, car celui-ci exige un point indique il doit être capable de conjuguer créativité et sens des affaires », « S’asseoir avec les artistes pour prendre un café et bavarder « Une conclusion s’impose: pour être efficace, le dirigeant « Un spectacle réussi, précise Daniel Lamarre, est synonyme Pour Daniel Lamarre, entretenir des liens avec les artistes Selon les spécialistes, diriger une entreprise de divertisse- David Logan, professeur à la Marshall School of Business

Q2.2011 55 56 Lamarre must tread. Leading an entertainment organization entertainment an Leading tread. must Lamarre Lamarre must tread. Leading an entertainment organization entertainment an Leading tread. must Lamarre Q2.2011 If you are in charge, just do it. If youhavetocomebackme, If youareincharge,justdoit. If requires a certain psychological makeup. psychological certain a requires maybe that’s a bad sign.’” That said, he allows debate to con- to debate allows he said, That sign.’” bad a that’s maybe Business whoteachescoursesforexecutivesintheentertain- found its way into a show, and Lamarre had it hung in a visi- a in hung it had Lamarre show,and a into way its found “Iliketosaypeople,`Don’tfort. makemeadecision. ment industry. marre’s success. He is convinced that most traditional busi- traditional most that convinced is He success. marre’s found its way into a show, and Lamarre had it hung in a visi a in hung it had Lamarre show,and a into way its found is aimed at the heart, whilemostother businessesareaimed is aimedattheheart, is aimed at the heart, whilemostother businessesareaimed is aimedattheheart, at the head or the wallet. The secretistounderstandthe artist The at theheadorwallet. at the head or the wallet. The secretistounderstandthe artist The at theheadorwallet. and consensus-builder. He describes his leadership style as style leadership his describes He consensus-builder. and to- putting is job My that. as simple as It’s business. great a ness leaders would fail at Cirque because it requires a vastly a requires it because Cirque at fail would leaders ness ness. It’s as simple as that.” have a great show, you’ll have a great busi- first for a reason,” Lamarre stated. “If you “In the term, ‘show business,’ show comes ble location to remind people that you can throw money at money throw can you that people remind to location ble people breathe. If I appreciate that Guy delegates to me, I have things, “butwhenit’s abadidea,it’s abadidea.” never that prop expensive an was It parts. movable and tles tinue forjustsolongbeforedecisionsgetmade. tles and movable parts. It was an expensive prop that never that prop expensive an was It parts. movable and tles to havethesamegenerositywithothers.” the University of Southern California’s Marshall School of of School Marshall California’s Southern of University the to beabletalkbusiness,” addedDavidLogan,aprofessorat bilin- be to has organization entertainment an in leader tive hangs a giant mechanical horse replete with bells and whis- and bells with replete horse mechanical giant a hangs decision if consensusisn’tdecision if available.Butheprefersateamef- different point of reference from the B-School mind-set. referencefromtheB-Schoolmind-set. different pointof gual, inthesensethattheyhavetotalkcreativeand gether the right financial conditions to permit Guy and his and Guy permit to conditions financial right the gether consultative morethancommand-and-control. challenges, expertssay. creative teamandourartiststolivetheirdreams.” comfort among the creative visionaries of Cirque,fromLalib- comfort amongthecreativevisionariesof experience-rendering business,” saidGuber. “Entertainment experience-rendering business,” saidGuber. “Entertainment erté on down throughout the organization, has fueled La- fueled has organization, the throughout down on erté son,” Lamarre stated. “If you have a great show, you’ll have have show,you’ll great a have you “If stated. Lamarre son,” “As aleaderintheentertainment industry, you are inthe “As aleaderintheentertainment industry, you are inthe “I liketoconsultpeople,”hesaid.haveletmysenior seenprettyconclusivelyisthataneffec- “One thingwe’ve “In the term, ‘show business,’ show comes first for a rea- a for first comes ‘showshow business,’term, the “In And inherent in the mechanical horse is the thin line thin the is horse mechanical the in inherent And thestairwellsinsideCirque’sAbove oneof headquarters Like allstrongleaders, Lamarrewon’t hesitatetomakea Leading anentertainmententerpriseisrifewithatypical Indeed, Lamarre sees himself asCirque’sIndeed, Lamarreseeshimself facilitator chief - + Business, and many other publications. To lead such a business, it takes somebody who understands who somebody takes it business, a such lead To years ormore.Andmyjobistoputinplacethepeoplewho For that reason, Lamarre is unfazed by the “Banana Shpeel” “Banana the by unfazed is Lamarre reason, that For money inresearchanddevelopmentsothatweremainon ment capital,andaBroadwaysettingseemedideal.Marrying DNA: itsroots, itsvalues, itsgoals. HehasdrivenCirqueinto marre said.“Butmymainconcernisnotaboutdilutingthe it canbememorableandultimatelyactionable,whichmeans ing divisiontosellCirqueproductsandlicensingitsbrand ing originalcontentfortelevisionandDVD;organizingpri- will ensureCirque’s successoverthenext25years.” nect theartistwithaudience.” experiencehastobeemotionalsothat and theaudience.The vate functionsforcorporateclients;creatingamerchandiz- new businessinitiativesandrevenuestreams, suchascreat- Cirque’s vaudevillewithslicesof a bitof traditionalfarejust are notthatmanycompanieshavebeensuccessfulfor50 and Lamarrecontinuestolookforotheropportunities. (a thing of the past). That’s why we are investing a lot of whyweareinvestingalotof thepast).That’s passé (athingof permanent presenceinNewYorkCity, theworld’sentertain- a have to determined is Cirque experience. learning a but panies havebeensuccessfulfor25years,” hesaid. “But there petuating theCirquebrandwellintofuture.“A com- lot of brand. Mymainconcernisremainingarelevantbrandbe- be openinganannualshowatRadioCityMusicHallin2011, that he is not the original artist and what he must do is con- is do must he what and artist original the not is he that experience. their about else somebody tell can audience the the leadingedgealltime.” ideas. their for outlets new finding passions, creative their hospitality outletssuchasrestaurantsandhotels. didn’t work. Cirque’sdidn’t brandissostrongnowthataudiences work. up withagreatideathatwillmakeuslooklikeunechosedu Glenn Rifkin has written for The NewYorkGlenn Times, FastCompanyStrategy challenge. Lamarre has a visceral understanding of Cirque’schallenge. Lamarrehasavisceralunderstandingof Hedoesn’t considertheeffortafailure, closing inNewYork. cause whatscaresmeisthatoneday, akidsomewherewakes come inwithspecificexpectations. Undaunted,Cirquewill “You have to understand the limits of your brand,” La- brand,” your of limits the understand to have “You And artists inevitably depend on taking risks, testing risks, taking on depend inevitably artists And Lamarre believeshisultimatemandateisprofitablyper- Sustainability is, theday, attheendof aleader’sgreatest Rifkin , and has many written other for publications. The NewYork Times , Fast Company , Strategy

Credit Briefings onTalen T Credit ter Guber. Le divertissement vise le cœur alors que la plupart des une idée est mauvaise, elle est mauvaise ». gie le travail d’équipe et il préfère que les autres prennent les vantage comme un dirigeant qui consulte au lieu d’ordonner. mettre à l’épreuve leurs passions créatrices et trouver de nou- pour cela un certain profil psychologique. bien dépenser tout l’or du monde pour quelque chose, « quand marre l’a suspendu à la vue de tous pour rappeler qu’on peut n’est pas contre le fait de discuter un moment avant qu’une déci- mander de trancher, c’est peut-être mauvais signe. Cela dit, il autres secteurs visent la tête ou le portefeuille. Le secret, c’est à prendre une décision en l’absence de consensus. Mais il privilé- sion soit prise. et le créateur de consensus au sein du Cirque. Il se considère da- délègue dées franches aux cadres qui m’entourent. Si j’apprécie que Guy me que son travail consiste à créer un lien entre l’artiste et le public ». que le public puisse la raconter. Pour diriger de telles entreprises, dez-vous pour que l’expérience soit marquante et palpable, et de comprendre l’artiste et le public. L’émotion doit être au ren- dans le domaine de l’interprétation de l’expérience, explique Pe dirigeant d’une entreprise de divertissement doit tracer. Il faut qui n’a jamais trouvé sa place dans un spectacle, et Daniel La- de sifflets et de parties mobiles. Il s’agit d’un accessoire coûteux cheval mécanique géant est suspendu; il est orné de clochettes, décisions qui leur reviennent. S’ils doivent quand même lui de- il faut quelqu’un qui comprenne que ce n’est pas lui l’artiste et « J’aime demander l’avis des autres, dit-il, et laisser les cou- « Un dirigeant dans l’industrie du divertissement oeuvre Au siège du Cirque, au-dessus d’une des cages d’escalier, un En fait, Daniel Lamarre se voit comme l’animateur en chef Les artistes doivent inévitablement prendre des risques, Ce Comme tous les grands leaders, Daniel Lamarre n’hésite pas cheval mécanique symbolise la mince frontière que le des responsabilités, &l je dois eadership faire de même avec les autres - ». 25 ans, conclut-il. Mais beaucoup moins l’ont été pendant 50 Broadway semblait idéale. Le mélange d’une pointe de vaudeville une leçon. Le Cirque est déterminé à avoir une présence perman- tifs. Il l’a mené vers de nouveaux horizons et a trouvé de nou- une bonne idée qui fasse de nous un vestige du passé. C’est pour bre. Il ne voit pas cette expérience comme un échec mais comme velles avenues pour leurs idées. C’est pour ces raisons que l’échec notoriété du Cirque est telle aujourd’hui que le public vient avec va présenter un spectacle annuel au Radio City Music Hall en 2011 pour plus, c’est qu’un jour, quelque part, un gamin, se réveille avec marque mais plutôt pour sa pertinence, car ce qui m’effraie le marque, confie-t-il. Je ne m’inquiète pas pour l’intégrité de la velles sources de revenus, comme la création d’un contenu viscérale de l’ADN du Cirque: ses racines, ses valeurs, ses objec- privées pour des sociétés clientes, la création d’un service de mise années ». ans ou plus. Ma mission est de mettre en place les personnes à des hôtels et restaurants. de « Banana Shpeel » à New York a laissé Daniel Lamarre de mar- et des traits caractéristiques du Cirque n’a simplement pas pris. La ente à New York; capitale mondiale du spectacle, et une place sur et Daniel Lamarre continue d’explorer de nouveaux débouchés. des attentes bien précises. Ne se laissant pas démonter, le Cirque développement, pour rester toujours à l’avant-garde ». cette raison que nous investissons beaucoup en recherche et d’assurer la notoriété et la rentabilité du Cirque pendant encore qui assureront le succès du Cirque pendant les 25 prochaines longtemps. « Beaucoup d’entreprises ont été prospères pendant en marché pour la vente de produits dérivés et l’octroi de licences original pour la télévision et le DVD, la tenue de représentations un dirigeant. Daniel Lamarre possède une compréhension « Il est important de bien comprendre les limites d’une En fin de compte, la durabilité est le combat le plus difficile Daniel Lamarre pense que son mandat est en définitive

Q2.2011 57 essay

TodAy's

What’s gotten into us? Blame too much technology, too much comfort Anxious

and way too many choices for our worried and angry state of mind.

Selfby david berreby

A nation at war, citizens at each others’ throats. General disappointment in the country’s leaders and institutions, and uncertainty about the future. So matters stood in the United States in October 1863, when President Abraham Lincoln proclaimed the last Thursday in November “a day of Thanksgiving and Praise” for all the blessings that the country enjoyed. In the midst of the worst war in United States history, the president recommended not grievance, but gratitude. He also asked his constituents to pray for all the war’s “widows, orphans, mourners or sufferers”— to feel pity, in other words. But not for themselves. In the 19th century, people readily grasped such a message (that’s one reason Thanksgiving caught on and became an annual ritual). Confidence and clarity could still prevail in the 20th as well, as in 1933, when another president, Franklin Roosevelt, proclaimed that the nation had nothing to fear but fear itself. And in 1997, when South Korea’s people accepted painful economic reforms in the wake of the Asian financial crisis, which led, after a couple of years of sacrifice, to a quick recovery. In dark times, it’s what democratic, free-market societies are supposed to do best: Trust in their leaders, and themselves.

Will the leaders of today and tomorrow be able to do as well? Stuart Briers

58 Q2.2011 The Korn/f erry i nsT i T u T e Briefings onTalen T Credit &l eadership Q2.2011 59 60 Q2.2011 country’s democracyisnotIslamic terrorismorPakistani India’s authorities considerthatthegravestthreatto officially inconceivable,experiences some 100,000 ayear. by onaLondonstreet. charges wastothrowbottlesatPrinceCharles’s car asitdrove ber, studentsthoughtthebestwaytoprotest risingtuition violence andfuelshortages. AndinGreatBritain Decem- reforms inOctobertriggerednotdebate,butwildcatstrikes, OutonthestreetsinFrance,proposedsocial-service support. gaining are fringe lunatic the of part considered once ties “outsider”par- Europe, Western In food. hoard and spiracies con- for look to viewers daily million 2 his tells Beck Glenn example, thequirky, conservativeAmericanTVcommentator right conspiracy theories. in media, politics and business peddle fear, suspicion and out- “no.” FromEuropetoAsiatheAmericas, the“hottest” stars Meanwhile, China,apeople’s republicwherestrikesare for solutions, and problems about talking than Rather Every day, the news brings hints that the answer might be n sn y, ly asing e r inc rial fantasies rial mistrustandconspirato- before. Butpublicdiscoursereeksof municate withothersmorequicklyandrichlythanever com- to means the have We untruths. believed widely with Yetand analyzinginformation. policydiscussionsareriddled people have access to unprecedented technology for gathering of numbers 2011, unprecedented in all, After confidence. of crisis worldwide a with deal us help to economy productive weren’t onhislist. porcelain.”Food-hoarding andrumor-mongering estry,and statuary,tap- architecture, poetry,music, painting, study to right a children their give to order in agriculture and merce com- navigation, architecture, history,naval raphy,natural philosophy,geog- and mathematics study to ought sons “my that adding 1780, in wrote Adams, John president, and mat diplo- American philosophy,”the and mathematics study to liberty have may sons my that war and politics study must easier. “I be would leadership sensible society,where saner a in 2003, accordingtothejournalGlobalAsia). 626 administrativedistricts(comparedwithonly55 thenation’sleft-wing guerrillaswhoarenowactivein223 of ence Board research group found only 45 percent of Americans economic rebound;meanwhile, a2009 surveybytheConfer- ers thereunhappierin2010 thanthe yearbefore,despitean and distrustful on the job. (A survey in Singapore found work- pected history to march in the opposite direction opposite the in march to history pected fear, mistrust and despair. with contending themselves find sectors private and public equipped oraswell-informeditistoday. Yet leadersinboth technologically as rich, as been never has Humanity icked. pan- getting are countries prosperous today’s Instead, ous. eties likeourownhavesettleddowntoworkandgottenseri- But today’s crisis is no Great Depression. In worse times, soci- welfare. own their with concerned more and generous less fearful and suspicious, inconsolable and angry. mood: a is instead, share, they What demanding). are States United the in demonstrators angry that cuts budget welfare in the European Union want to prevent just the kind of social- demonstrators angry out, pointed have many as fact, (in idea or message a share don’t people mistrustful raging, these All Sharing a Dark Mood aggression, buthome-grown“naxalites” It’s notunreasonabletoexpectourinformation-rich and The Enlightenment architects of the modern world ex- world modern the of architects Enlightenment The people make downturns economic that known well It’s — and employees report themselves unhappy themselves report employees and The Korn/ f — violent, nominally violent, erry i — toward e T u T i nsT

Stuart Briers “satisfied” with work, a 22-year low.) culture of consumer convenience and media availability. Its Billions of us have more options than any previous gen- first and most obvious harbinger was television. eration to control our surroundings and to make ourselves “People who just heard about Pearl Harbor on the radio comfortable (What color do you want your iPod? How much and read about it in the papers didn’t feel inclined to tell those fat should go in your latte, or would you prefer soy milk? You stories because it didn’t feel as if it had happened to them, want salad with that? We have seven choices of dressing.). Yet personally, at all,” he writes. But by the time of the Kennedy we talk, at work and in our communities, of fear and frustra- assassination, television news was filling the airwaves with tion. We have ever more methods, from YouTube to Tumblr, images and information that people could not get on the for expressing ourselves completely. But millions feel no one scene. In some ways, it was more complete, more intense is listening. than physically being there. Seeing the world through that kind of media doesn’t just Are Our Gadgets to Blame? give you a good seat, though. It also orients you differently to To some, all this suggests that we aren’t using our technology the information, for this simple reason: People who are phys- and convenience-oriented service economy to its fullest po- ically present during some catastrophe don’t have any choices. tential. But there’s evidence for a more troubling explanation: Events happen to them. It could be that the technological aids and comforts of our Not so the people taking in the story on a television, or time are actually causing the trouble. smartphone, or Web site (or all three). Those who consume it looks as if our information-rich, convenience-laden life makes it harder to face real problems, engage in teamwork and recognize good leadership.

Increasingly, it looks as if our information-rich, conve- the news have control over it. They’ll keep watching if they nience-laden life makes it harder to face real problems, en- want to — if the images are compelling, if the story somehow gage in teamwork and recognize good leadership. It seems relates to them — but they can also click over to something obvious in challenging times that faster, richer technology else. The event isn’t happening to them, like it or not. It’s an will help to solve problems, or at least make people feel better experience they choose to have, or to avoid. Instead of an event about them — at work and at home, where “household adop- controlling them, it’s the consumers who control the event. tion of new technologies seems to shrug off recessions,” as This is enjoyable, of course. Most all of us like being able Tom Adams, president of Adams Media Research, told a re- to specify the kind of latte we’ll get, the color of our music porter in 2008. But maybe we don’t need new gadgets to solve player, the picture on the computer desktop, lots of news our problems. Maybe we need a new relationship to the ones about our favorite college football team and nothing about we already have. basketball, because that’s how I like it, never mind what other The trouble with our tools and creature comforts is that people think. But recent research indicates that this expan- they make the world into a menu of choices — they make ev- sive modern creature that de Zengotita calls “the flattered self” erything, from the latest natural disaster to a nation’s budget is more difficult to lead in tough times. woes, into a story about you, the consumer. Consider, for An experiment by the psychologists John M. Darley and instance, the way we speak about shocking events, like the Dan Batson illustrates this instability. Its guinea pigs were all assassination of JFK, the loss of the space shuttles Challenger students at Princeton Theological Seminary. Thinking they and Columbia, terrorist attacks in New York, Washington, had been assigned to give a talk, each student was heading London and Madrid. “Where were you?” we ask. “I was in the across campus when the real experiment began: They stum- office, when someone said ‘Turn on the news’…” bled across what looked like an injured stranger. Would they Once, not long ago, people didn’t do this. Of course, peo- stop to help? ple in the first half of the 20th century could remember the Well, that depended on what they’d been told by the re- sinking of the Titanic or the Japanese attack on Pearl Harbor. searchers just before. Of those who had been told that they They just didn’t say what they were doing, or how they felt. As were already late, only one in 10 stopped to assist the “victim.”’ the media critic Thomas de Zengotita points out, there’s a big In contrast, those who thought they had just enough time difference between asking “What was it like when that hap- were more charitable; more than 40 percent of them stopped. pened?” and “What was I like when that happened?” Meanwhile, a third bunch, who’d been given more than What defines the dividing line between these two views enough time, were even kinder, with six in 10 lending a help- of reality, de Zengotita points out in his book “Mediated,” is a ing hand. It made no difference that all these students were Briefings on TalenT & l eadership Q2.201161 future ministers; nor did their different philosophies and re- Anxiety and fear, of course, have bad effects on people’s ligious convictions (measured by questionnaires) predict ability to think clearly and work together. At the most basic what they’d do. It didn’t even make a difference that half of level, these emotions sap our resources. them were about to give their talk on the parable of the Good The brain’s computing capacity, and its glucose “fuel sup- Samaritan. The only reliable predictor of their behavior was ply,” are finite. When it spends fuel and attention on anxiety, how much time pressure they felt at the moment. it has less of both to spend on careful, conscious thought. That’s the problem with using yourself as the measure of That’s why experiments on self-control have found that peo- all things — your “self” is always changing. So, despite all the ple asked to enforce self-discipline — for example, to avoid effort that goes into pleasing, the flattered self is an anxious, eating cookies before a math test — do less well than those fearful soul. Without a constant standard, how can we be sure who didn’t have to practice self-control first. As the social psy- we chose right? That unread e-mail, that undownloaded blog chologists Matthew Gailliot and Roy F. Baumeister wrote in post, could be as important as the matters you did attend to. 2007, “Willpower is more than a metaphor.” In moments when rational thought is too hard, people fall back on built-in hunches and rules Put the different pieces together, and the of thumb — including the “heuristics and biases” research is a picture of human nature as whose description won Daniel Kahneman the 2002 Nobel Prize in Economics. When reason’s better angels are tired, for example, we prefer short-term results (like a cookie right now) to long-term benefits (like a retirement free of heart disease). We see k ind lin g , risks more easily than opportunities. And we see all ready for the fires of fear. all ready for the fires of fear. stereotypes of race, gender, class and age — instead of individuals. And modern technology acts like a match. This effect has been measured by psychologists. For example, Gailliot, Baumeister and their colleagues had Florida college students sip lemonade How can you know for sure? Your measure of importance is and then write an essay about a day in the life of a gay man. yourself, and your self, unlike the hard facts of the world, is For half, the drink contained real sugar (thus boosting their always changing. body’s fuel supply); others got Splenda. The ones who drank When a person makes his or her own tastes and needs real sugar used fewer stereotypes about homosexuals. Other the measure of all things, these kinds of mood swings color psychologists have found a similar effect by studying glucose all experience. How can we be sure we chose correctly, when depletion. People who ran hard on a treadmill, for instance, our outlook changes from hour to hour? used stereotypes more. Put the different pieces together, and the research is a The Option Problem picture of human nature as kindling, all ready for the fires of That’s one reason researchers have found that having many fear. And modern technology acts like a match. First, a choice- options often makes people less happy or less effective. Over laden, information-saturated lifestyle promotes anxiety (and the course of many experiments, Sheena S. Iyengar, a psychol- then, when we turn to shopping or the Web for comfort, ogist and professor at Columbia Business School, has found promotes more anxiety, in a highly negative feedback loop). that people given four to six options make sounder decisions, Second, the impulses triggered by that loop are easier than and are happier with their choices, than people given 20 or ever to gratify, thanks to our modern tools of self-assertion. 30. That’s true, she has found, not only in grocery stores and It’s not just easier today to feel fear; it’s also easier than ever car showrooms, but in scenes of “tragic choice” in hospitals. to indulge it. In France, she reports, parents of terminally ill infants are Voting with Their Feet usually told that doctors had made the painful decision to re- move their babies from life support. But American practice is Gone is the time when people were forced to hear news they to leave the decision in the hands of the parents. Iyengar in- disliked, or contemplate facts that annoyed them. Products terviewed these parents in both nations, and found a sharp and services aren’t sold by telling people to “like it or lump it”; difference: The French ones, who felt the choice was out of instead, commerce moves by encouraging us all to take life their hands, were healing well. The Americans, who had to the way we want it. weigh all the medical options themselves, scored much more One of the clearest examples of this trend is the way poorly on measures of psychological health and well-being. people with “flattered selves” have voted with their feet: The 62 Q2.2011 The Korn/f erry i nsT i T u T e Briefings onTalen T Stuart Briers county. The culture of choice and “having it your way” has way” your it “having and choice of culture The county. landslide a in lived population the of half nearly though, flected thenation’sclose-to50-50 split.Bythe2004election, re- that place a in lived citizenry the of rest The vote. the of didate forpresidenthadgotten anoverwhelmingpercentage jurisdiction whereeithertheDemocraticorRepublicancan- quarter oftheU.S.populationlivedina“landslidecounty”: as BillBishophaspointedoutin“TheBigSort,”onlyabouta dition ofhighmobility,showsthegreatestchange.In1976, with differentkindsofpeople.TheUnitedStates,itstra- has alsobeentheperiodinwhichpeoplestoppedassociating period inwhichpeoplehavefeltentitledto“haveitmyway” &l eadership mixed company we’ll accept. mixed companywe’llaccept. we aretohavingoursurroundings undercontrol,theless like-minded companypolarizes.” Butthe moreaccustomed mixed company,” Bishopwrites. “Mixedcompany moderates; antidotetogrouppolarizationis others.to theviewsof “The the Web, these “group polarization” effects are making us blind on and life in companions,work, our at pick to able more and more become we like-minded.”As are they way the in treme ex- more grow group a in people “like-minded says, Bishop have to see, hear or compromise with those of different views. spurred people to “cluster” into communities where they don’t That kind of clusteringcreatesanotherfeedbackloop. kindof As That Q2.2011 63 Finally, there is another reason to worry about the ease information on multiple platforms, there’s no excuse for with which technology lets us “silo” into only those commu- employees (or citizens) to tune out part of the spectrum. The nities that suit our tastes. Nicholas A. Christakis, a physician analyst whose reports you don’t like, the commentator whose and medical sociologist at Harvard, and his longtime collabo- ideas you hate — they’re your insurance against siloing. It’s rator, James Fowler, a political scientist at the University of tempting, when time is short, to avoid “mixed company.” But California at San Diego, have found that our social networks giving in will make teamwork harder (and who knows what influence our lives in ways we cannot perceive. information you’ll miss). These effects are significant to three degrees of separation: Finally, tell your people: “It’s not about you.” Being a con- They involve not only each person’s friends and acquaintances, sumer is fun, but there are times when we’re workers, and but also her friends’ friends. Christakis and Fowler have found, times when we’re citizens — times, in other words, when the for example, that if a friend of a friend of yours takes up smok- whole point of our activities is that we don’t get to pick the ing, you are 11 percent more likely to take up the habit. Simi- meeting place, the agenda or the mission. It’s not about intim- larly, when they examined long-term data on lifestyle and idating people or making them feel bad; it’s just about ex- heart-attack risks in a Massachusetts town, the pair found that changing the flattery of a shopping trip for the respect of a having friends whose own friends were obese would increase duty performed, and a job well done. Your people will probably a person’s risk of being obese himself. On a larger scale, the be less anxious and mistrustful. They may also feel relieved. economist David G. Blanchflower and his colleagues, using Of course, it won’t be an easy job. As the novelist Mari- Eurobarometer data from 29 European nations, found that lynne Robinson has pointed out, anxiety can be as hard to obesity spreads through social networks there, too. quit as nicotine: “We find comfort in anxiety because it But social networks aren’t all bad. They transmit many engrosses our attention, which we have in surplus, and are positive social habits in the same way. Christakis and Fowler usually at a loss to employ,” she writes. “And anxiety is a stim- have found, for instance, that cooperative behavior will ulant, like love, like hatred.” Spurred by the feeling, we seek “cascade” through a social network: One person’s cooperative out more comfort, more information, more control, which behavior is linked to similar deeds not only in their acquain- only make us more anxious, not less. It is, as Robinson says, tances, but in their acquaintances’ acquaintances. “as if we took morphine to help us sleep on a bed of nails.” Our information-rich, choice-filled lifestyle is famous, of Using these modern conveniences makes us feel better course, for Facebook, Twitter, texting and many other methods short-term. Trouble is, they’re making us worse off in the for expanding a person’s social network. But all those tools are long term. Consider a potent symbol of modern-convenience aids to connecting with people whom you want to be in touch culture: tasty, inexpensive food, prepared whenever and with. Unlike brick-and-mortar institutions — school, for in- however you want it. It’s hard to resist, and after all, don’t we stance, or the workplace — our social tools bring us face to face all deserve to feel good? Yet a recent NATO study of Dutch only with those we choose, the people we’re comfortable with. Army soldiers found that many were overweight and at risk So while today’s wired citizen is as social as his ances- for high blood pressure and dangerous cholesterol levels — tors, he’s not social in the same way: He’s not spending time and that the problems were greatest in young people, not in mixed company. If your social network is limited to people over-40 officers and non-coms. Then, too, the U.S. military whom you chose and whom you feel comfortable with, you’re has declared that 25 percent of those who apply to join are less susceptible to influence from other citizens. Which makes simply too fat to fight. These young people are comfortable it easier to ignore them, stereotype them or mistrust them. today, but they won’t help their nation, nor live as long or as Another feedback loop: Mistrust reduces contact with others, healthily as they could have. Unless they change. which breeds more mistrust, and so the spiral continues. So to the familiar jobs of a leader (inspiration, management, vision, example-setting) today’s information-conve- The Case for Less nience culture adds another: Weaning people from their What’s a leader to do? No one (well, almost no one) wants to dangerous comforts. Before a 21st century leader can meta- return to the technology and economy of 1933 or of 1863. How phorically lead troops or manage colleagues or inspire can you get your people to use their tools and exercise their followers, he or she has to cure addicts. choices in a way that calms them down, rather than riling them up? David Berreby writes the blog Mind Matters at Bigthink.com and is the Here’s one possibility: Limit choices. Don’t feel bad about author of “Us and Them: The Science of Identity” (University of Chicago it. Many times, as Iyengar has found, choice is a psychic burden Press, 2008). His writing about science and human behavior has ap- and its absence is a relief. peared in The New Yorker, The New York Times Magazine, The New Republic, And here’s another suggestion that may sound crazy: Use Slate, Smithsonian, Discover, Strategy + Business, The Huffington Post and the tools, but use them completely. With access to constant many other publications. 64 Q2.2011 The Korn/f erry i nsT i T u T e 66 S Long Georgena “Bikes for Women,” struckachord. “Bikes for the bicycleindustryaboutamillionyearstocatchon. Q2.2011 Terry PrecisionCyclingwasborninherRochester, N.Y., Itssimpleslogan, basement. models ormentors, whichwasprobablyagoodthinginthiscase.Ijustassumed I was onewomanrunningashop inMinneapolis, butnooneinthemanufacturing women’s bicycleindustry. along togroupridesupanddowntheEastCoastalwayssold outimmediately.

swamps and beheld woman, and she was different. Ittook swamps andbeheldwoman,shewasdifferent. did not love the corporate life and could not find a bike to fit her 5-foot, 3-inchphy- did notlovethecorporatelifeandcouldfindabiketofither5-foot, So shequitherdayjob, hiredtwoexperienced framebuildersandapainter, and could fitintothisworld.Ican make bicycles.” end. So, itwasatotal boys’club,personwholooksforrole notthekindof butI’m so sheboughtanacetylenetorchandabookonframebuilding andcreatedthe sique. Butshewasanengineer, engineers, andthedaughtergranddaughterof one too, andsoonshewasbuildingfiveatatime to meetdemand.Shetookthem cool coMpanies “There weren’t women in “There the industry at that time, really,” Terry recalled. “There Terry’s Actually, she just built herself a bike, but when other women saw it, they wanted Credit GeorgenaTerry. In1985, Terry wasanew Xeroxhirewholovedbicycling, Ride ome eonsago, manlookedupfromtheEdenic - Distance by LawrenceM.Fisher The Korn/ f f erry i erry i ns e T u T i nsT T i T u T e Credit Briefings onTalen Briefings onTalen T Credit T &l & l eadership eadership Q2.2011 67 68 The Booming ’80s Along theway, thecompanyabsorbedafewblowsthatmight Q2.2011 Terry could be the company to do it, with the possibility of of possibility the with it, do to company the be could Terry Flash backtothe1980s, alivelytimeinthebicycleindustry, middle tospareriders’tenderpartsacyclingapparelline advances in metallurgy and new materials contributed to contributed materials new and metallurgy in advances while sport, the two-wheeled to participants of cohort new a Precision Cycling,Terry isbackdoingwhatsheloves best particularly in the United States. Mountain bikes had brought that took Patagonia, for example, from a maker of mountain that tookPatagonia,forexample,fromamakerof that blendedathleticismwithfemininityinafreshway. that savedtheday, fromapatentedsaddlewithholeinthe though, Terry respondedwithanewplanorproduct ture capitalists, butintruthitwentup, downandsideways. the hockeystickgraphthatentrepreneurslovetoshowven- half thepopulation,butstillrepresentonlyabout35percent half designing bikestofitwomen.Aswomenareabitmorethan lighter, strongerbikes. manufacturers, Japanese like Nishiki have promptedalessresourcefulwomantofold.Eachtime climbing geartoabroad-basedoutdoorapparelbrand. company thatcapturestheirattention.Industryanalystssay even greater growth if it can pull off the kind of crossover of kind the off pull can it if growth greater even of bicycle customers, there is a huge upside waiting for the for waiting upside huge a is there customers, bicycle of It wouldbenicetoreportthatTerry’s growthmirrored Now, with a new owner and chief executive for Terry for executive chief and owner new a Now,with — Trek BicycleandCannondaleBicycle,forthecyclingenthusi- Now Terry was faced with identical bikes from a far larger far a from bikes identical with faced was Terry Now me that I ought to get out of thebike business.”me thatIoughttogetoutof Itjustnever occurredto totalhellandnotrealizeit. midst of Peugeot, faded. Peugeot, ast’s dollar, whilevenerableEuropeanmakes, likeRaleighand like brands, American new with off faced Bridgestone, and it andpinkit” wasnearlyherundoing. strategy somewerenothingmorethansmallmen’sif bikes withpink terms.flexible other and ing warehouse full of inventory.”warehouse fullof ReferringtoRichardFariña’s asked to duplicate it for Centurion, Tanocomplied. Centurion, happily for it duplicate to asked proportioned betweentorsoandlegshoulder ployee for about two years. I just let everybody go. I had a had I go. everybody let just I years. two about for ployee the first, andforatimetheonly,the first, brandwithabikespecifically turion brand. Terry’s design was not patentable, and when and patentable, not Terry’swas brand. design turion designed to fit women. Terry had realized that women not women that realized had Terry women. fit to designed So Long It Looks Like Up to Me’ sort of person.Icanbeinthe So LongItLooksLikeUptoMe’ sortof graphics, industry’s“shrink andTerry’s salesplummeted. The classic picaresque novel, she added, “But I’m a‘Been Down classic picaresquenovel,sheadded, “ButI’m financ- long-term dealers offer could and magazines cycling the all in advertisements full-page bought that competitor only arecommonlyshorterthanmen,butalsodifferently “There was a huge break,” Terry said.“Iwastheonlyem- wasahugebreak,” “There But tinyTerry PrecisionCyclingstoodoutbecauseitwas Soon, nearlyeverymajorbrandhadawomen’s line,even The bigger brands just didn’t get it for quite a quite for it get didn’t just brands bigger The United StatesunderthehugelysuccessfulCen- for thebrand. fornia company that marketed them in the in them marketed that company fornia welding their from heat only the facility,with width and arm length. Many of her bikes fea- bikes her of Many length. arm and width achieve properframegeometryinthesmaller while.” a simpleanthropometricdifferenceinthetorso. and profitmargins, soaredforseveralyears. the killed move The fivefold. sales boost and tured a front wheel smaller than the rear to rear the than smaller wheel front a tured tant and veteran bicycle industry executive. “It’s executive. industry bicycle veteran and tant the rightprinciples,”saidJayTownley,aconsul- turer, theH.TanoCompanyofKobe,alsopro- tion allowed Terry to cut her price as low as $350 considerable a $600, for bikes completed the topped associates three her and Terry torches, hand-built Rochester frame business, but sales, duced bikesforWesternStatesImports,aCali- sizes. functionaltrademark Itbecameakindof sum in the late ’80s. Shifting to Japanese produc- out production at 500 frames per year, selling year, per frames 500 at production out “Georgena, being an engineer, came up with Working out of an old railroad car repair repair car railroad old an of out Working Then, disaster.Terry’sJapanesemanufac- The Korn/ f erry i e T u T i nsT

Previous page: John Siddle. This page: Ron Wu Briefings onTalen T Alex Williams “issues” on long rides, recognized an opportunity when she when opportunity an recognized rides, long on “issues” With thecredibilitybuiltonherbicycles, Terry wasabletore- Izumi andDescente.Formanufacturing, Terry shortsandjerseys. bikesandlateralineof From the outset, theseweredifferentiatedbya From theoutset, mand withamen’s saddleline,whichsoondevelopedafol- Bridgestone, always the most quirky and innovative of the of innovative and quirky most the always Bridgestone, in saddlesisreallygood,”Terry said.Saddlesalsobecamethe in howfemaleathletesviewedsports apparel, initiallyjustglovesincolorsthatmatched Terryalso cravedamoreaccommodatingseat. metthede- with Nike,LeviStraussand a patent, and outsourced production to Taiwan for the low the Taiwanfor to production outsourced and patent, a was not selling. Terry, who had heard many women moan about Jager DiPaolaKempDesign,a Jager Jager,Michael said fashion, and Japanese bikecompanies,Japanese hadafunny-lookingsaddle,with principles up with the an engineer, came Georgena, being in the anthropometric difference just didn’t get it for quite a while. brand thedesignasa“women’s saddle” andcreateamarket. brand designfirmbasedinBur- president andcreativedirector of them honorthepatenttogenerateadecentroyalty Eventually sales picked up a bit, andthenTerryEventually salespickedupabit, hadthesortof the bignamesincyclingclothing,likePearl has oneormoremodelswithacutaway, andenoughof hole in the middle to relieve pressure on the perineum, which lowing of itsown.Today,lowing of nearlyeverysaddlemanufacturer lington, Vt., thathasworked Vt., lington, lucky break that only seems to come to people who work at it. lucky breakthatonlyseemstocomepeoplewhoworkatit. Comeback #1 cause menwhohadexperiencedgenitalnumbness, orworse, company’s onedeparturefromwomen-onlyproducts, be- capacity. end and to Selle Italia in Italy for more expensive variants. expensive more for Italy in Italia Selle to and end stream toTerry. sense of styleandfemininitynotofferedby sense of she took advantage of Cannondale’sshe tookadvantageof excess saw one. She acquired the design, applied for and was granted “Then thecashmachineturnedon,becausemargin “Then Terry caughtagenerationalshift She followedthesaddlewithwomen’s cycling torso

right . . The bigger brands It’s a simple &l

eadership Q2.2011 69 70 Q2.2011 you can do, so don’t give me pink shoes,’” Jager said. For Gen- For said. Jager shoes,’” pink me give don’t so do, can you Patagonia, in addition to Terry. For baby boomers, “in all sports, where,” Terry said. “So we thought, ‘We’ve alwaysbeenloyal where,” Terry ‘We’ve said. “So wethought, women effectively wanted to communicate, ‘I can do anything age of their revenues, and a larger percentage of earnings, from and beautifulalsokickass.” company targeting women cyclists. an apparel line, rather than a clothing women’s bike company by being Terry gained authenticity and credibility product. Then, asnow, Then, product. bike shopsgeneratedalargepercent- lary. liked ourapparel,buttheycouldn’t finditany- “Women clothing, butwomen’s fashionwasnowhereintheirvocabu- erations X, Y and later, “It’s a badge of honor to be feminine be to honor of badge later,a “It’sand Y X, erations At first, At first, Terry facedadistributionproblemwiththenew

first and foremost

a with — Izumi or Nike Women, withtheaddedboostthatcamefrom Izumi orNike Terry was too busy handling paperwork and administration to Terry chosefromthebeginningandonethatNikehasop- That setsthemapartastheiconicwomen’sThat cyclingbrand.” Unfortunately, Terry’s reality was a bit more complicated than He likensTerry toBurton,thesnowboardscompany, where material inmidpricebikeshadalsoshifted,fromsteelalloys in clothing,Terry andherpartnershadmissedthe exodusof now thataremostsuccessfulgoingafterthewomen’s market TitleNine,awomen’s executiveof and chief athleticapparel activities fromyogatorunning. Pearl as such labels, major the of any as available broadly as Web,With catalog, and apparelsalesgrewsomemore.whole- and the shift to Taiwan, and later China, for manufacturing by yen the of strength the to due partly brands, bike Japanese women cyclists. “There’s acredentialthatcomesalongwith women cyclists. “There’s women onbicycles, andtheapparelisjustalongforride. an apparel line, rather than a clothing company targeting company clothing a than rather line, apparel an Jager. “Terry really believed that the cause is getting more getting is cause the that believed really Jager.“Terry portunistically decided to target,” said Missy Park, founder Park, Missy said target,” to decided portunistically bicycles had collapsed. In their race to keep up with the growth theTerry-designed,parel hadsoared,salesof Japanese-made by being first and foremost a women’s bike company with with company bike women’s a foremost and first being by boards to build a clothing brand. “If youcanoriginateacate- boards tobuildaclothingbrand.“If the brand the to the bicycle dealer, but if we continued that way, we’d be be way,we’d that continued we if dealer,but bicycle the to the employee roster grew to 20, Terry was struggling with a bit to roboticproductionmethods. to aluminum,whichwaslighter, cheaper andmoreamenable ap- and saddles the of sales the While perception. brand the the founderwasasnowboardingpioneerandleveraged said. he goods,” soft and goods hard of balance perfect the letes. Itisamodelthathasservedsubsequentstartupswellin up aboutwomen.” New Trials gory, that’s one of the strongest stories you can have,” said have,” can you stories strongest the of gory,one that’s company based in Emeryville, Calif. “You seethecompanies company basedinEmeryville,Calif.“You companies seekingever-cheaperlabor. dominantframe The ers in those days, but we thought, ‘Let’s just try it.’ We sent it.’We try just ‘Let’s thought, we but days, those in ers selling clothingdesignedbywomenathletesforath- now was brand Terry the sales, retail independent and sale sales grew. She took on a wholesaler, QBP, to reach more stores, out of business.’ Everyone in the bike business hated catalog- hated business bike the business.’in of Everyone out out 5,000 copies and the phone rang off thehook.”out 5,000copiesandthephonerangoff out. The Japanese bikes were overpriced and looked old, and old, looked and overpriced were bikes Japanese The out. of an identity crisis and a growing case of management burn- Lululemon, Athleta, Title Nine Title Athleta, Lululemon, “There isafundamentaldifferencebetweenthecustomer “There An avidprogrammerherself,TerryWebsitefor createda Jager saysTerryJager alsogainedauthenticityandcredibility So even as sales climbed into the low seven figures and figures seven low the into climbed sales as even So — even before Trek or Cannondale Trekor before even The Korn/ f — they’re from the ground the from they’re — erry i and apparel and e T u T i nsT

Ron Wu happen. That will emerge in women creating business plat- Racing Bike forms that are not just money machines, but a part of building Chic something greater, contributing to the whole.” Not so long ago, American men who wanted to become bicycle For Terry Precision Bicycling, one of the unexpected bene- frame builders would serve apprenticeships in England or Italy fits of its move to Burlington, Vt., in 2010 is that the city is a to learn from the acknowledged masters of the art. As the first magnet for fit young people: cross-country skiers, hikers and builder of women’s frames in the United States, Georgena Terry bikers too, despite the snowbound winters. And although Ter- had no models to follow, and it is unlikely any of the Old World ry’s founder and its new chief executive are baby boomers, craftsmen would have welcomed her to their ateliers. But she most of its 16 employees are quite young, and all but two of has become a model herself to a new generation of athletic and them are women. entrepreneurial women. “There is definitely a greater sense of adventure and will- “I think I would not be able to specialize in the way I do if ingness to take on risk in these younger women I’m working there had not been a Georgena Terry before me,” said Natalie with,” said Elisabeth Robert, Terry’s majority owner and chief Ramsland, founder and frame builder at Sweatpea Bicycles in executive. “There is definitely a greater inclination today among Portland, Ore. “She definitely pioneered the women’s biking young women to be entrepreneurs, which suggests to me there niche, and made it visible and legitimate. Then it became some- is a greater leadership ability baked into their psyche than my thing the industry could not ignore.” generation had. For both men and women, team sports are a Ramsland’s marketing reflects the blend of athleticism and great early-stage curriculum for leadership. The fact that wom- femininity that marks women-specific companies like Athleta en’s athletics, especially at the high school level, has evolved and Title Nine. She separates her custom and standard frames has a lot to do with women having greater leadership ability.” under the headings “LOVE” and “LUST,” with one production model called “The Little Black Dress.” A former bike messenger and architecture student, she sprinkles her Web copy with phrases like “Lookin’ Good. Hauling Ass,” and recently blogged about racing cross — a combination of on- and off-road courses characterized by mud and beer consumption — while pregnant. “Each week I pin my race number to my jersey and I race,” Ramsland wrote. “I may find my heart rate higher, my pace slower, and my finish placement sliding, but that is no longer relevant in my new numerology. I want to be counted among a field of women. Not first, not top-ten perhaps. Just one among many who are doing with their bodies something remarkable and common, hard and temporary.” Margo Conover, owner of Luna Cycles in Santa Fe, N.M., was an elite-level road racer before taking up the welding torch, and prior participation in sports is common among the new generation of women entrepreneurs. Does athletic competition Terry Precision Cycling’s Brain Trust: Paula Dyba, build leadership skills? Certainly the way some CEOs throw Georgena Terry and Liz Robert around sports metaphors suggests it should be a prerequisite. Since the passage in 1971 of Title IX, an extension of the Civil Missy Park, founder and chief executive of Title Nine, a Rights Act of 1964, women have been guaranteed equal access women’s athletic apparel company in Emeryville, Calif., also to elementary and high school sports programs. That may employs many athletic young women. But, despite her compa- translate into a different kind of leader. ny’s name, she does not attribute their leadership style or abil- “When you interview a lot of young women athletes, they ity to the landmark legislation. “Women are inherently more definitely know that if they can succeed, it will help the greater collaborative, and I don’t think that has anything to do with whole,” said Michael Jager, president and creative director of Title IX,” Park said. “I think it has to do with being the original Jager Di Paola Kemp Design, a brand design firm based in Burl- team captain, managing the home. I don’t see people here ington, Vt. “That, to me, is key to leadership; my success is the competing hard for resources. It’s ‘Let’s collaborate rather than team’s success. We’ve talked to women Olympians, profes- having a wrestling match.’ All of those characteristics were sional and teenage athletes, and that theme is common. When there; Title IX just uncovered that skill set, along with the wom- Wu

Ron everybody is feeding off that idea, pretty amazing things can en’s movement.” —Lawrence M. Fisher Briefings on TalenT & l eadership Q2.201171 design a new line. One of her business partners left to run a mance-oriented road bike at $1,669. Those prices place Terry women’s bike touring company. The other, Paula Dyba, had squarely in the territory claimed by independent bike shops, her hands full with the apparel catalog. Business was good, but where the average selling price is about $600. But it is in- life was not, a conundrum not covered in M.B.A. programs. creasingly common for cycling enthusiasts to spend 10 times “Around 2005 or 6, we asked ourselves, ‘What’s the real that amount, or more, for a first-rate frame with high-end long-term plan for this company?’” Terry said. “It was getting components. Mass marketers, like Wal-Mart Stores, on the too big for us to manage well. I was inundated keeping books, other hand, sell bikes for $100 or less and are served by an which I hated. Paula was doing catalogs. We didn’t want to entirely different group of vendors. walk away. The employees couldn’t buy it. So we started talk- But the bikes that truly excite Terry are the three steel- ing to M&A guys.” framed models that are hand built in the United States and Tully & Holland, a boutique investment firm based in priced from $3,100 to $5,700. While she is not wielding the Wellesley, Mass., introduced Terry to Elisabeth Robert, the torch herself these days, Terry works closely with Marc former chief executive of the Vermont Teddy Bear Company, Muller, chief designer at Waterford Precision Cycles, where which, like Terry, had extensive catalog and Internet sales. Al- the bikes are manufactured. Waterford, based in Waterford, though Robert had initially been looking for a passive invest- Wis., is owned by Richard Schwinn, scion of the most famous ment, she saw that Terry’s needs dovetailed with her experience. name in American cycling, and is considered a leader in the resurgence of steel as a frame material. It always has to be about the , “Steel is real,” said Terry, explaining that the comfort and product durability of the material are still second to none. The close and about the experience. For us, relationship with Waterford will also allow Terry to offer made-to-measure bikes, guaranteeing the ultimate fit. After it’s “What do you want cycling to be all, two women of the same height can have very different about today?” leg-to-torso proportions, divergent riding styles or age- and injury-related requirements that demand a frame with non- standard dimensions. “It became clear to me out of the gate that they were very The Gender Question much in need of management,” Robert said. “Paula’s really a marketing genius, with a great creative sense, and Georgena Those variations prompt some people to question the whole is an engineer, the innovator and introducer of women’s- premise of a bike shaped to fit some generalized notion of specific geometry for bicycles. But neither one was particu- women’s needs. “My view is a little more broad, that you can’t larly skilled in how to run a business, one that had grown to make a blanket statement about the physical shape of one sex $7 million in sales. So I was able to acquire the company and or another,” said Sky Yaeger, former vice president, product insert myself in a way that could really add value.” development for Bianchi USA, although she herself designed A Middlebury College graduate and loyal New Englander, women’s bikes for the company. “From a marketing stand- Robert wasted no time moving the company to Burlington, point, the industry was so male dominated, we had to reach Vt. Terry remained in Rochester, where, freed of management out to women. But there never were men’s bikes, there were tasks, she moved quickly to revitalize the bicycle line. Dyba, just bikes. A bike is some tubes; it doesn’t have a gender.” after initially giving notice, also opted to telecommute, as But other women in the industry say there is a distinct vice president for marketing. value in a women-specific bike that transcends marketing Terry Precision jump-started the new bikes through a li- and physiology. By carving out this niche, Terry defined a censing agreement with Advanced Sports International, a women’s bicycle market beyond the heavy and poor-handling Philadelphia company that had taken the venerable Fuji line “girls’ bikes,” characterized by a sloping top tube to accommo- from $7.5 million in 2001, when Advanced Sports acquired it, date riding in a skirt. to $80 million in 2009. Along the way, ASI also acquired Kes- “Women bikers have all very much benefited from her trel Worldwide, SE Bikes, Breezer and Oval Concepts, while thinking that a bike that fits and is light and well made also sponsoring a successful racing team. ASI’s president, Pat- should be available to them,” said Jacquie Phelan, a three- rick Cunnane, proposed a different arrangement for Terry, in time U.S. national champion mountain bike racer, referring which Georgena Terry’s designs would be manufactured to to Terry. “I locate my opinion in the arc of the history of the her specifications in Taiwan, while ASI would handle distri- bicycle, back in the 1880s, where women’s-specific was the bution and sales. only way they got women on bicycles. Victorian bike builders ASI gives Terry a 2011 line of five bikes, ranging from the did all that genderizing to overcome the stigma of mannish- hybrid Susan B, at $729, to the Tailwind, a lightweight perfor- ness attached to bike riders. I still think it’s important, not 72 Q2.2011 The Korn/f erry i nsT i T u T e Briefings onTalen T Mike Chilcoat 2006 data compiled by the National Bicycle Dealers Association. A bicycleisnotafrequentpurchase,andeventhemoststyle- Terry brand to casual wear, even jewelry and pajamas. And pajamas. and jewelry even wear, casual to brand Terry rums andothermediadesigned tomakeitafrequentdesti- membership, but only 35 percent of bicycle sales, according to Pearl IzumiorTrek thepiethat existsto- forabiggershareof women effectively. Women make up 60 percent of health club nation foractivewomen.Employing herprogrammingskills, things interesting some see do you so stores, women’s-only need tobetakenseriously.” beginning to surface. The first company to figure this out is out this figure to company first The surface. to beginning because women’s butbecausewomen bodiesaresodifferent, the company’s Web site is packed with video, podcasts, fo- podcasts, video, with packed is site Web company’s the day. Mygoalisgrowthemarket forwomen’s cycling.” descend to women; the shop staff drive them away. I know know away.I them drive staff shop the women; to descend Extending the Line going aftertheüber-athlete.Mygoalisnottocompetewith going tomakeafortune.” conscious riderdoesnotneedmorethanafewdifferentjer- create alifestylebrand,thedefiningwomen’s cyclingbrand,” seeourselvesashavinganopportunityto cision Cycling.“We channel,” said Jay Townley, the consultant. “We tend to con- to tend “We consultant. Townley,the Jay said channel,” seys or pairs of shorts, istoextendthe seys orpairsof thestrategy so partof she said.“It’s notexclusivelyhardorsoftgoods, not andwe’re of a couple of entrepreneurs right now who are working on working are who now right entrepreneurs of couple a of “The simple fact is that we have not done real well as a as well real done not have we that is fact simple “The Robert isdeterminedthatthecompanywillbeTerry Pre- Sadly, mostindependentbikeshopsstilldonotcaterto &l eadership I alwaysgobacktoApple,whichwrotethebookanddoesitso Twitter, posts on the company’s Facebook page and personally Terry haswrittenaTerry PrecisionapplicationfortheiPhone, you,” saidMichaelJager, thebranddesigner. “Ithinkthatwill responds toasmanycustomere-mailsshecan. well. It always has to be about the product, and about the ex- the about and product, the about be to has always It well. it isalsoaboutwomenonblogs.” Chase, whichrunsthroughandraisesmoneyfortheBlackwa- Georgena never had before. is This about women on bikes, but an awareness, being able to use social media and all those tools perience. For us, it’s ‘What do youwantcyclingtobeabout perience. Forus, it’s ‘What petition. Terry has its own sponsored ride, The WildGoose petition. Terry hasitsownsponsoredride,The today?’ Everybodyneedstoexperiencethis.”today?’ to customers, andshehopestoexpanditotherregions. the ride herself,forthepleasure andforthechancetoconnect ter National Wildlife Refuge near Cambridge, Md. Terry leads has done that in the past, butinrecentyearstheindustryhas has donethatinthepast, happen withTerry. willsetinmotionapresenceand [They] downloadable freefromApple’s AppStore.Shealsotweetson gotten abiggerboostfromcharityrides, usuallytoraisere- Lawrence M. Fisher has written for The NewYorkTimes , Strategy +Busi- evangelists who love what we stand for, what we do,” Terrydo,” we for,what stand we what love who evangelists said. “You have to said. nourish “You that, because if you have it, it’s gold. ness and many other publications. He is based in San Francisco. search dollars for major diseases, than it has from serious com- “One thingthiscompanyhasalwayshadisahugebaseof “Often, the key to growth is that people recontextualize people that is growth to key the “Often, Many bicycle companies sponsor racing teams, and Terry Q2.2011 73 in review

On the same trip, Barcott met Salim Mohamed, a community or- ganizer in Mathare, another Nairobi A Warrior slum, who had built a successful youth sports organization. He was for Peace impressed with Salim’s quiet resolve, deep intelligence and obvious lead- Rye Barcott’s story of a ership skills. When he returned from soldier who works to solve Kibera, Barcott ruminated on how to poverty in Africa stay involved and have an impact in this daunting scenario. A fitness buff and weight lifter, he finished a set of hen he was entering pushups and the light bulb came on. high school, Rye Barcott had a revela- He would create an NGO inside tion. “I realized that my greatest fear Kibera that would focus on youth de- was an ordinary life,” Barcott writes velopment through a sports program in his inspiring new memoir, “It and build from there. He considered WHappened on the Way to War: A Ma- the connection to UNC, where he had rine’s Path to Peace” (Bloomsbury, book, but it serves as a case study in close associations with several pro- 2011). Soon after, he made the deci- leadership training and one man’s fessors who had served as mentors sion to join the Marines and live intuitive understanding, at a very and from where abundant resources hard and fast on the way to the early young age, of what it takes to become might flow, and he called it Carolina death (before age 30) that he had pre- an effective leader. Rising to the rank for Kibera. But his most enlightened saged for himself as an adolescent. of captain by age 26, Barcott displayed idea was also the most important: But Barcott’s life journey took the grit and determination that ex- CFK would be run by a local staff in some unexpected twists and turns emplifies a successful Marine. But it Kibera, not outsiders who would im- that began while at the University was his work in Kibera and his reso- pose their management techniques of North Carolina (UNC) and culmi- lute efforts, against stout odds, to and values on the organization. If nated in a seemingly contradictory build Carolina for Kibera (CFK) into CFK had any hope of long-term suc- duality of life and career choices. He an effective and sustainable organi- cess, it had to be owned and operated did indeed become a Marine officer, zation that emerged as the more sig- by the people whose lives it affected. surviving a deployment in Fallujah, nificant leadership experience. On a return trip to Kenya the fol- one of Iraq’s most dangerous war When he was 14, Barcott’s par- lowing year, Barcott connected with zones. But at the same time, he also ents took him on a trip to Africa and both Salim Mohamed and Tabitha became the co-founder of a now- it was there, in Nairobi, that he got Festo, who had started a clinic that thriving nongovernmental organiza- his first exposure to the anguish of Barcott supported. Salim agreed to tion (NGO) in Kibera (key-bear-ah), third-world poverty. So deeply was leave Mathare and join CFK as its the largest and most dangerous slum he affected that Barcott knew even leader. And Tabitha, who had founded in Nairobi, Kenya, whose mission is then that he had to find a way to her clinic in her shack, also came to build the next generation of local change the world. As a senior at the aboard to help build a health-related leaders from among Kibera’s teeming University of North Carolina, armed element for the organization. In a youth population. In just a few short with a Marine R.O.T.C. scholarship, poignant moment, she led Barcott to years, the NGO, called Carolina for Barcott began his military training her clinic and there on the wall was Kibera, grew from a one-room health while studying about the devastating a hand-painted sign: “Rye Medical clinic to a model for what Barcott calls impact of ethnic violence around the Clinic: Sacrifice for Success.” “participatory development,” offering globe. For his senior thesis, Barcott The CFK story is intertwined with hope and inspiration to tens of thou- flew to Nairobi with a fellowship Barcott’s ambitious Marine career, sands of people in Kibera. that would support a five-week stay a relentless push to achieve officer “It Happened” is not a business in Kibera, Africa’s largest slum. status in the prestigious human

74 Q2.2011 The Korn/f erry i nsT i T u T e intelligence corps. When President best practices of each world to in- interesting... Bush ordered an invasion of Iraq, form the other.” And there was the AN AUSSIE’S BEST MATE? HIS COMPUTER Barcott was anxious to be part of the nagging, persistent voice inside him Australians are the top social media users in fight. But he was sent first to Bosnia pushing him toward the battlefield. the world, with users spending on average and later to the Horn of Africa to Inevitably, Barcott’s journey led 7:19:13 hours per month on hone his leadership skills. He put in to war. His first two assignments left social networks/ blogs. 18-hour days, leaving an hour at night him feeling ambiguous and dissatis- Source: Nielsen, 2010 to e-mail Salim in Kibera and stay fied. Iraq, in full fury, was the lure. abreast of his nascent organization. He felt the weight of his life’s inher- What he found, to his surprise, ent contradiction but he couldn’t es- were the complementary benefits he cape the inner truth. reaped from traveling these two very Reading “It Happened on the Way distinct paths at the same time. to War” feels like a sprint through a “One of the things that most im- minefield of impossible choices. Yet pressed me about Kibera was the Barcott, now 31 years old, a husband spirit of community and its strong and father with a dual degree from identity,” Barcott writes. “A defiant the Harvard Business School and Har- pride was associated with being vard’s Kennedy School of Govern- from the slum. The Marine Corps ment, manages to illuminate the es- not born. And great leaders are made from was also an extremely close-knit, sential truth: that leaders are made, the most difficult tests. proud community. Both worlds had their own languages. The Sheng (street slang) of Kibera didn’t translate into other parts of Nairobi; the jargon of the Marine Corps was challenging my mother’s ability to under- The Right stand what I was saying.” In an environment like Kibera, Stuff the opportunities to be co-opted by shortcuts and unethical temptations Paul Sullivan tells why some were ubiquitous. “The most difficult people excel under pressure test of that type of rare leader was if and others choke he or she could live with dignity and morality in conditions that tested core values every day,” Barcott writes. hat does it take for The more invested Barcott be- CEOs — or, for that matter, everyone came in the Marines and in Kibera, down to the lowest-ranking corpo- the more stress and pressure blan- rate talent — to perform at the peak keted his life. He put his most im- of their abilities in the most pressur- portant personal relationship withW ized situations? What enables them Tracy, his extraordinarily patient to keep their wits about them and columnist Paul Sullivan, it is not much girlfriend and the love of his life, at demonstrate the same rational think- different from what it takes to hit a risk by leaving again and again for ing and decision-making prowess grand slam in the final inning of the either a military assignment or a trip that earned them their positions in deciding game of the World Series or to Kibera. the first place? What prevents them to sink the winning putt on the 72nd The essential question was, he from freezing up, panicking and hole of the British Open golf tourna- writes, “Could I do both? I assumed making disastrous decisions? ment. Although the book overdoses all along that it was possible and I Judging from “Clutch” (Penguin on sports examples, especially those

Hal Mayforth wanted it to be possible. I wanted the Books, 2010) by the New York Times from golf — the author admits that

Briefings on TalenT & l eadership Q2.201175 in review

his primary goal in writing the book a long line of General Motors chief the common urge to see if he could was to end the humiliation he regu- executives, including Roger Smith eke out a little more on the upside. larly suffered on weekend golf out- and G. Richard Wagoner Jr., are de- Conversely, he diligently sold when ings — Sullivan convincingly makes cidedly not clutch. Individuals who trades fell below predetermined the case that there are a handful of are clutch are focused, disciplined, floors, resisting the natural inclina- key ingredients that make people adaptable, present for the moments tion to hold on in the hope that the successful at critical moments, in or months that intense pressure sit- investment would bounce back. both business and sports. uations last and motivated by just The common characteristics that Sullivan deftly uses well-re- the right balance of fear and desire. cause people to choke, meanwhile, searched and dramatically developed Dimon, for example, was keenly are failure to take responsibility, over- examples from the military and the focused on what was in the best in- confidence and overthinking. theater as well as business (and terests of JPMorgan Chase during his G.M.’s leaders, during the com- sports) to describe what he believes negotiations with the government pany’s decades-long slide into bank- to be the characteristics that enable over the acquisition of Bear Stearns ruptcy — which Sullivan likens to individuals to excel in the most har- when it was on the verge of bank- the classic experiment in which a rowing situations. Through colorful ruptcy. He did not let the pressure of frog is boiled alive as water is slowly examples, he also describes the hab- the possible consequences of a Bear heated up — exemplify choking on its that most often seem to cause in- Stearns failure for the financial sys- overconfidence. dividuals to choke (another sports tem make him gloss over the poten- While this reader is not in a posi- term). And believing that clutch is tial risks an acquisition could pose tion to judge Sullivan’s golf game, not an inborn trait, he describes how for JPMorgan. And while he directed she can attest that he is clutch as a people who have chronically choked his bankers to work round the clock writer. His painstaking research of can learn to be clutch. to determine the risk that Bear the various fields from which he In Sullivan’s eyes, JPMorgan Stearns did represent, he worked draws examples ensure that his an- Chase’s CEO and chairman, Jamie Di- right along with them, reviewing ecdotes are full of drama, devoid of mon; Steven A. Cohen, the founder their findings. He was present. clichés and highly informative about of SAC Capital Advisors; and Mark Cohen, meanwhile is a prime ex- the inner workings of outstanding Branson, the UBS executive who faced ample of the discipline it takes to be performers. Sullivan’s descriptions a United States Senate committee in- clutch, Sullivan says. In building up are so substantive and persuasive vestigating the bank’s offshore busi- his multibillion-dollar investment that readers can begin developing ness, are clutch. On the other hand, firm, he rigorously held to the disci- their own clutch abilities from them. the former Bank of America CEO pline of selling investments when This reader found Sullivan’s explana- and chairman Kenneth D. Lewis and they reached their targets, resisting tion of the importance of focusing on the task at hand, and of banishing interesting... extraneous considerations, like long- term consequences and critical re- A WEDDING WINDFALL sponse, immediately invaluable in Prince William and Kate overcoming nerves. Middleton’s much-anticipated However, one is left to wonder royal wedding could provide a £620 million whether the qualities that Sullivan shot in the arm for describes as necessary for being Britain’s economy, clutch are sufficient to guarantee an primarily through individual’s ability to come through merchandise in a tight situation. Would, for exam- sales and tourism. ple, the five core attributes be useful Source: as a checklist for a board trying to The Telegraph, 2010 decide whether a CEO candidate is the right person for the job? And if

candidates have a history of demon- Hal Mayforth

76 Q2.2011 The Korn/f erry i nsT i T u T e in review

strating any of the trademark habits tutes a clutch play in business. We all be out of bounds to another. How in- of chokers, should they be elimi- know a home run in baseball when dividuals make these calls will influ- nated from the running? “Clutch” we see one. But what is a home run in ence how reliable they will find the also implicitly raises, but does not business? What seems to be an admi- author’s criteria for identifying discuss, the question of what consti- rable clutch play to one person may those who are clutch.

if your life depends on it. Because it does.” Living Such unequivocating advice is not for the faint of heart or those who endeavor to go along just to get a Life of along. This is a book for players, for turks, young and old, who are tired Power of their own personal status quo and seek boldly caffeinated advice on Jeffrey Pfeffer explains how to advance. Pfeffer states his why some people have it case clearly from the outset. People and others just don’t ought to seek power for three rea- sons: “1) Having power is related to living a longer and healthier life. 2) hen Dale Carnegie Power, and the visibility and stature published his groundbreaking self- that accompany power, can produce help primer, “How to Win Friends & wealth, and 3) Power is part of lead- Influence People,” in 1937, he had no ership and is necessary to get things idea what its impact would be on the Graduate School of Business for done — whether those things entail human potential movement. A mod- more than 30 years, has written a changing a U.S. health care system, West first printing of 5,000 copies was bookend to Carnegie — Carnegie transforming organizations so they quickly gobbled up by a public with amped up on steroids, if you will — are more humane places to work, or an insatiable appetite for self-im- that is, in its brusqueness, appropri- affecting dimensions of social policy provement, especially in a Depres- ate for a new generation of strivers and human welfare.” sion-era business world in which and go-getters. “Power: Why Some Pfeffer, who has written 13 books jobs had become as precious as gold. People Have It — and Others Don’t” on management and has taught a Carnegie’s modest advice tome be- (HarperBusiness, 2010) is a no-holds- course called “Path to Power” at Stan- came one of the best-selling, most barred primer on the reality of today’s ford for many years, is a keen observer influential business books of several corporate battlescape — Machiavelli of real-world business dynamics and generations. More than 15 million meets “The Apprentice” — in which the part power plays in career devel- copies have been sold around the Pfeffer is nothing if not blunt. He opment. He warns readers to beware world, and though Carnegie himself cites numerous studies that demon- of conventional business books about died in 1955, Dale Carnegie & Associ- strate that those at the bottom of the leadership and success. “Most books ates, his global training organization, business hierarchy are not just trod by well-known executives and most continued to influence corporate upon and grievously disadvantaged; lectures and courses about leader- legions on how to manage personal they also die much younger than ship should be stamped: CAUTION: relationships and turn moribund ca- those who hold the power in organi- This material can be hazardous to reers into success stories. zations. After 236 pounding pages, your organizational survival,” he Jeffrey Pfeffer, a professor of or- Pfeffer leaves the reader with these writes. “That’s because leaders tout- ganizational behavior at Stanford portentous words: “So seek power as ing their own careers as models to

78 Q2.2011 The Korn/f erry i nsT i T u T e be emulated frequently gloss over interesting... the power plays they actually used to NOW, WHERE DID I PUT THOSE KEYS??? get to the top.” In fact, he continues, Jet lag alters the brain in ways that most leadership teaching focuses on cause memory and learning problems Carnegie-esque prescriptions “about long after your trip ends. In a study, following an inner compass, being hamsters exposed to jet lag had truthful, letting inner feelings show, trouble learning simple tasks that being modest and self-effacing, not the hamsters in a control group behaving in a bullying or abusive did well on for up to a month way — in short prescriptions about after the hamsters returned to how people wish the world and the a normal 24-hour schedule. powerful behaved.” That world sim- Source: Science 2.0, 2010 ply does not exist, Pfeffer points out. Get over it and realize that most such prescriptions are flawed, he with fears of being the tall nail that without it get interrupted. advises. gets hammered first is a sure path to • Those striving for power must The myth of virtue being re- mediocrity. “People often don’t ask not hesitate to get rid of the opposi- warded is not the only one that Pfef- for what they want and are afraid of tion. “If using power in this way seems fer debunks. For example, he also standing out too much because they tough, it may be,” Pfeffer writes. “But makes a provocative point that per- worry that others may resent or dis- get over your inhibitions, because formance is not a success indicator. like their behavior, seeing them as many of the people you will meet on “Not only may outstanding job per- self-promoting,” Pfeffer writes. “You your path to power will have less hes- formance not guarantee you a pro- need to get over the idea that you itation about rewarding their friends motion, it can even hurt,” he writes. need to be liked by everybody and and punishing those who oppose Power holders prefer to keep the that likeability is important in creat- them.” most competent performers in their ing a path to power, and you need to Inevitably, there is the chasm be- current roles. By keeping these be willing to put yourself forward. If tween the haves and have-nots in or- standouts down, those with power you don’t, who will?” ganizations as well as society. For the not only look better but also are less Among Pfeffer’s other beliefs are: vast majority of workers, “Power” may likely to lose the stellar employees to • Getting control of resources is a as well be exhorting them to go climb some other part of the organization. key step on the path to power. Mount Everest. Grabbing for power Pfeffer points out that even high • Spending time befriending lots butts up hard against everything most intelligence can be a career hin- of key people in an organization is people have been taught throughout drance. “While intelligence helps in crucial. And listening to them intently their lives about personal and profes- building a reputation and in job per- while they talk about themselves is sional behavior. But in today’s over- formance, it often holds the seeds of an effective way to accumulate power. whelming world, where so many feel people’s downfall in creating over- • One of the best ways to make so helpless in the turbulent shifting confidence and insensitivity.” those in power feel better about landscape of global politics, the econ- “Power” is nothing less than a themselves is to flatter them. Re- omy, terrorism, climate change and road map for most effectively navi- search shows flattery is as an effec- health issues, Pfeffer offers a much- gating the corporate hierarchy. How tive strategy for gaining influence. needed and carefully crafted argu- to identify which part of the organi- • In order to get power, people ment for seeking power in the work- zation offers the most influential must act as if they have power, place. and visible place to begin or enhance whether they feel it or not. “Author- “When we stop thinking of our- one’s career fills an entire chapter. ity is 20 percent given, 80 percent selves as powerless victims and Pfeffer counsels prospective power taken,” the saying goes. cease eschewing doing the things brokers to speak up, make demands • Interruption is an excellent that will bring influence, our chances and learn to stand out. Trying to source of power in every interaction. of success increase dramatically,”

Hal Mayforth launch a career while weighed down Those with power interrupt; those he writes.

Briefings on TalenT & l eadership Q2.201179 80 thoughts Parting parting t houghts Q2.2011 Warcraft. They havetolearnwhatit They Warcraft. means togetdirectionsfrom3-D maps media and with their content. media andwiththeircontent. may havemore technology into howpeoplewouldliketointeractwithoneanother, the ing. First, to stay ahead, CIOs have to be careful observers of of observers careful be to have CIOs ahead, stay to First, ing. incredibly costly and perhaps even impossible. Metaphorically theyfallbehind,catchingupmaybe ing badlybehind.Andif a number of large,globalcompanies.a numberof Insomeways, CIOsarethemuch-malignedSher- need tounderstandthatshoppersaregrowing ate acompellingshoppingexperiencefor, say, isinthekids’hands.nology age kid we areall pipes, manymoreservers pas of business.pas of Sherpasbecausetheyaretheoneslookingpastfog,snowandiceto through technology. It did depend on penetrating insights penetrating on depend did technology.It through of sliver a around way your know to hurt doesn’t it though the changing ways that people work and consume, particu- consume, and work people that ways changing the technology thanmostmaturecompanies,technology butheorshe also that may never get off thedrawingboards.that maynevergetoff has it first. has itfirst. Wal-MartorBancoSantander True, Carrefouror lion people online at once playing World of World of lion peopleonlineatonceplaying larly youngpeople. have a permanent place at the strategy table. have apermanentplaceatthestrategy up with Wii gamesandKinectwith100 mil- up with carpets, ordishwashers, orwintercoats. Retail- ers, lookingtosellagrowingcustomerbase, Over the last few months, success of the iPad, or of Facebook, didnotdependonbreak- Facebook, theiPad,orof success of theymustbearedamngoodsociologists.What The silicon. speaking, CIOs are in the business of building roads for cars for roads building of business the in are CIOs speaking, on an iPhone. In10 years,on aniPhone. hundredsof catch a glimpse of thefuture.Malignedbecausedespitetheirefforts,catch aglimpseof manyCIOsdonot sociologists now What I learned from talking to these CIOs was interest was CIOs these to talking from learned I What This matterstobusinessesthathavecre- This How dotheythat? CIOs said something else that was interesting. The aver- CIOs saidsomethingelsethatwasinteresting.The CIOs whoarenotthinkingfiveto 10 yearsaheadarefall- Great CIOs, it was explained, are not necessarily nerds — O.K., maybe O.K., not the — — butthecoolesttech- fatterstorage,bigger average kid — not only has better I have spoken with several chief information officers at officers information chief several with spoken have I

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field shopper to “open a door” or “feel a finish.” doing a After or “feel to door” shopper a field “open Today, increasingly, oneperson makes thedecisiontobuy, gosomewhereelse,trysomething millions of peoplewhoareplayingwithXboxandNintendo millions of ing as technology continues to evolve. But, according to the to according But, evolve. to continues technology as ing is plying the aisles of abig-boxstorescanningbarcodesand is plyingtheaislesof CIOs, thecoolnewtechnology, thegoodstuff,isevolvingout- new orbuyonline. and Apple technologies will be in the work force. What will What and Appletechnologieswillbeintheworkforce. at inventories,readingreviewsandblogs,directingthe and scansaresenttothesecondshopper, whoisathomeand ping experience that is different from what it was in the past. ping experiencethatisdifferentfromwhatitwasinthepast. this, it’s the at-home shopper images The smartphone. a with products of pictures taking keep theminterested?Engaged?Productive? side thebusiness. online. The at-home shopper is comparing prices, looking prices, comparing is shopper at-home The online. by Joel Kurtzman Variations onthisandothershoppingmodelsareemerg- The CIOsItalkedtosaidtheyarecontemplatingashop- The andthat’s whatCIOsarethinkingabout, That’s sociology. How doyoumakeasaletosomeonenotinthestore? is beginning to find its way into companies. It’s being It’s companies. into way its find to beginning is of business.of The iPad,whichsold13millionunitsinlessthanayear,The employed to display sales materials and repair manu- repair and materials sales display to employed als and to compare features. It’s finding its way into way its finding It’s features. compare to and als the deviceintheirhandsandbringingitintoplaces restaurants asmenusandaidstothebartender ness world from the from world ness the sommelier. The iPad made its way into the busi- the into way its made iPad sommelier.The the place asrapidlyallthat?Bypaying moreatten- How doyouadaptandmasterchanges thattake tion towhatpeoplewantandless tothetech- nology. allsociologists now.We’re , from shoppers holding shoppers from outside, —

The Korn/ f the one not in the store — callhera“field shopper” erry i — who e T u T i nsT —

Robert Risko