QUARTER TWO VOLUME FOUR N1O. 4 Cheap Energy Forever Boone Pickens’s Newest Plan Talent + Leadership PLUS: A.G. LAFLEY ON WINNING | LIFE’S BETTER AT THE TOP LOCAL IS THE NEW GLOBAL STRATEGY | GROWING FAST IN SLOW TIMES $14.95 US / CAN The aim for Chief exeCutive offiCer Gary Burnison Chief marketing offiCer Michael Distefano Korn/Ferry Briefings editor-in-Chief Joel Kurtzman is audacious, Creative direCtor Joannah Ralston to provide great CirCulation direCtor Jaye Cullen marketing manager Stacy Levyn insights to help ProJeCt manager Tiffany Sledzianowski web CommuniCations sPeCialist Edward McLaurin leaders lead. board of advisors Sergio Averbach Robert Hallagan Stephen Bruyant-Langer Katie Lahey Not by telling Cheryl Buxton Robert McNabb Dennis Carey Byrne Mulrooney them what to Bob Damon Indranil Roy Ana Dutra Jane Stevenson think — but what Joe Griesedieck Anthony Vardy to think about. Contributing editors Chris Bergonzi Stephanie Mitchell David Berreby P.J. O’Rourke Lawrence M. Fisher Glenn Rifkin Victoria Griffith Stephen J. Trachtenberg Dana Landis Adrian Wooldridge ISSN 1949-8365 Copyright 2013, Korn/Ferry International Requests for additional copies should be sent directly to: Briefings Magazine 1900 Avenue of the Stars, Suite 2600 Los Angeles, CA 90067 [email protected] Advertising Sales Representatives: Jack Miller Jeff Miller Office: 972-985-4023 Office: 972-985-4024 Mobile: 214-707-1334 Mobile: 214-632-1549 Fax: 972-985-4047 Fax: 972-985-4047 Email: [email protected] Email: [email protected] 4975 Preston Park Blvd., Suite 785, Plano, TX 75093 Circulation customer service phone: +1(310) 556-8585 For reprints, contact Tiffany Sledzianowski at +1(310) 226-6336. Cover: Briefings is produced with solar ® Dan Bryant power, FSC -certified paper, and soy-based inks, in a fully sustain- able and environmentally respon- sible manner. Printed in the USA SevenSeven perfect perfect scores. scores. ThreeThree perfect perfect expressions. expressions. OneOne extraordinary extraordinary achievement. achievement. La MuseLa Muse THE WINETHE WINEADVOC ADVOCATE ATE 2008 vintage2008 vintage~ 100 points ~ 100 points 2007 vintage2007 vintage~ 100 points ~ 100 points 2001 vintage2001 vintage~ 100 points ~ 100 points La JoieLa Joie THE WINETHE WINEADVOC ADVOCATE ATE 2007 vintage2007 vintage~ 100 points ~ 100 points 2005 vintage2005 vintage~ 100 points ~ 100 points R O BB RROEBBP O RTRE P O RT 2007 vintage2007 vintage~ Best of ~ the Best Best of the Best 2001 vintage2001 vintage~ Best of ~ the Best Best of the Best Le DésirLe Désir THE WINETHE WINEADVOC ADVOCATE ATE 2008 vintage2008 vintage~ 100 points ~ 100 points 2007 vintage2007 vintage~ 100 points ~ 100 points PierrePierre Seillan Seillan—the —celebratedthe celebrated French French vigneron vigneron at Vérité at Vérité who today who todaymakes makes Sonoma Sonoma his home his —home— blushesblushes with gratificationwith gratification when whenreflecting reflecting on an on historic an historic and unprecedentedand unprecedented accomplishment. accomplishment. AwardedAwarded seven seven100-point 100-point scores scores by Robert by Robert Parker, Parker, Jr. of Jr.The of Wine The WineAdvocate Advocate, these, theseaccolades accolades recognizerecognize Pierre’s Pierre’s philosophy philosophy on farming, on farming, winemaking winemaking and blending and blending that make that makeVérité Véritéwines winesunique. unique. www.VeriteWines.comwww.VeriteWines.com To join ourTo join mailing our mailinglist, please list, write please to writeus at [email protected] us at [email protected] © 2013 VÉRITÉ.© 2013 ALL VÉRITÉ. RIGHTS ALL RESER RIGHTSVED. RESERVED. Attention: TiffanyAttention: Sledzianowski Tiffany Sledzianowski / [email protected] / [email protected] +1 (310) 226-6336 +1 (310) 226-6336 Client: JacksonClient: Family Jackson Wines Family Wines Publication:Publication: Korn/Ferry BriefingsKorn/Ferry Briefings Color: 4C Color: 4C Product: CardinaleProduct: Wine Cardinale Wine PublicationPublication Date: Q2 #14 Date: Q2 #14 Trim size: 8.25”Trim size:x 10.75” 8.25” x 10.75” Creative: F.Verite_SevenPerfectScores_BriefingsQ2No14_2013Creative: F.Verite_SevenPerfectScores_BriefingsQ2No14_2013FINALFINAL Creative designedCreative and designed serviced and by serviced by For questions, For concerns questions, or inquiries:concerns orStudio inquiries: +1.818.932.0499 Studio +1.818.932.0499 / [email protected] / [email protected] 6732 Eton Ave., 6732 Woodland Eton Ave., Hills Woodland CA 91364 Hills USA CA 91364 USA Q2.2013 24 4 letter from the ceo 14 boone pickens’s newest plan At 84, Pickens has one goal: change the world. latest thinkinG BY joel kurtzman 6 to be or not to be strategic 24 it’s better at the top The role of H.R. is evolving. The more senior your job, the less stress you have. 8 growth now: focus on minds, BY glenn rifkin not markets Talent is the real engine of growth. 32 total recall 11 overplaying your strengths Memory is malleable and depends on mood. BY david BerreBY Hidden weaknesses derail leaders. in review 38 the purpose of strategy is to win Some executives just want to play, when their goal 70 “the pause principle” should be winning. BY michael distefano and joel kurtzman PartinG thouGhts 46 joichi ito — a renegade in the lab 72 we’ve seen it all before To stay at the cutting edge, MIT went out of its academic Bad behavior in government is nothing new. comfort zone and hired a leader for its Media Lab who BY joel kurtzman never finished college. BY lawrence m. fisher 54 calling on a steady hand 38 Franco Bernabè is leading Telecom Italia at a time of globalization and rapid change. BY timothY hindle Governance 60 building boards that perform Best practices in the boardroom start with real independence. BY roBert e. hallagan and dennis careY 65 the boardroom collides with the digital age The world has gone digital; governance must too. BY mina gouran 65 54 A fascinating encounter The tenth Pen of the Year features a combination of two materials that could hardly be more complete opposites: The deep structure of ancient wetland oak, whose beauty has been naturally wrought over thousands of years together with gold that lends a supernatural sheen to the most beautiful works of art created by mankind. All metal fittings are 24-carat gold-plated. A. W. Faber-Castell Vertrieb GmbH • 90546 Stein • Germany • www.Graf-von-Faber-Castell.com From the CEO by gary burnison The Message Is the Messenger Consider a new CEO, tasked with turning around an industry laggard, who took to the podium at his first town hall meeting, with a command-and-control style that showed that there was a new sheriff in town and things were going to change. With hundreds of employees in the audience, the CEO be- nearly three-hour film, everyone in the theater immedi- gan speaking. Suddenly, he noticed a man in the corner of ately began clapping — viewers were cheering at a blank the room leaning against the wall, not paying attention to screen. Why? Because they connected emotionally with the presentation. Furthermore, the man wasn’t dressed the story. like the rest of the audience; he was in jeans and a ragged Think of the movie “Rocky,” a fictional rags-to-riches T-shirt, with a baseball cap on sideways. Here was a perfect tale of an unknown boxer who suddenly gets a shot at the example, the CEO thought, to show employees that such world heavyweight championship. Even though Rocky laxity was no longer going to be permitted. loses the fight in a split decision by the judges after 15 “You in the corner,” the CEO yelled out. “How much do punishing rounds, he is the champion for whom the au- you make a week?” dience always cheers. (The movie went on to win three Looking up in surprise, the guy replied that he made Oscars, including Best Picture.) Even today, the iconic about $400 a week. With a smirk, the CEO reached into image of Rocky running up the steps of the Philadelphia his pocket and pulled out $1,000 in cash. “You’re fired!” he Museum of Art and pumping his fists in the air evokes said. As the man in the baseball cap took the money, the the heart-pumping determination of a character who was CEO noticed a funny grin on his face, but he ignored it. incapable of empowerment until he believed in himself. After his speech, the CEO called one of his lieutenants To connect with others, to inspire others through over. “So, how do you think I did?” he asked. “I sure made communication, you don’t have to be Rocky or, for that an example of that guy. By the way, who was he?” matter, Ernest Hemingway or George Clooney. You don’t “That was Johnny, the pizza delivery guy.” have to spin tales of how others accomplished the seem- Moral of the story and cardinal rule No. 1 in communi- ingly impossible. But you must be authentic, particularly cating: Before you speak, know your audience. in times like these. At its best, communication does more than inform. It Returning from the holidays, it is always refreshing inspires and moves us to consider what we might become to sense the overwhelming renewed hope at the start of if we, too, were “more” — more determined, more prepared, a new year — employees return to work optimistic, even more confident and more empowered. when there’s no rational reason for it. When we walked During the recent holiday season, I had the joy of en- through the doors in the first week of January 2013, soci- tertaining five of my teenagers over a 10-day period. My ety faced the same issues it did in December 2012. role: provider of transportation, purveyor of snacks and The world’s central banks continue to dole out money procurer of incidentals. On the condition that they had to as if it were candy, unemployment rates in most of the “check” their “i-Gadgets” in the car, I took my motley crew world remain high, and companies continue to ask fewer and their friends to see “The Hobbit.” At the end of this workers to do more for less.