Leadership at Every Level

2010 Quality Fair
Leadership At Every Level
University of Minnesota

Strengthening Your Leadership Capacity
to Achieve Quality Results
in a Pandemic Technology Revolution

February 4, 2010
Presented by Stuart R. Levine

STUART R. LEVINE …CUT TO THE CHASE and 99 other rules
THE SIX FUNDAMENTALS OF S U C C E S S™
Stuart Levine & Associates LLC Copyright © 2010 Proprietary and Confidential 1

What in the World is Going On?

• Global and domestic perspective

• Impact on your mission and culture

• Critical strategic focus to control destiny


Today’s Goal

• Study and understand the big picture

• Embrace best practices during challenging
times

• Learn skills and tools to increase
effectiveness


Global/Domestic Realities

• Three major transformations shaping political,
economic and world events
– The emergence of China
– Shifting of demographics of Western Civilization
– The fundamental restructuring of American
business
• Profound implications for American business leaders
and owners, our culture and way of life driven by
technology

Source: Global intelligence briefing by Herbert Meyer delivered to CEOs at the World
Economic Forum in Davos, Switzerland 2008


The Emergence of China

• In the last 20 years, China has moved 250 million
people from the farms and villages into the cities
– and they plan to move another 300 million in the
next 20 years

• That’s why China is addicted to manufacturing.
It’s essential to put people in the cities to work.

• If the U.S. ever stops buying from China (low
priced products), they will explode politically; if
China ever stops selling to the U.S., our prices
will jump


Shifting Demographics of Western
Civilization
• Most countries in the Western world have stopped breeding

• Maintaining a steady population requires a birthrate of 2.1;
Western Europe birthrate currently stands at 1.5 or 30%
below replacement. In 30 years, there will be 70 to 80
million fewer Europeans than there are today.

• The current birth rate in Germany is 1.3 and Italy and Spain
are even lower at 1.2. At that rate, the working age
population declines by 30% in 20 years, which has a huge
impact on the economy.

• When you don’t have young workers to replace the older
ones, you have to import them.


Civilization
• In Japan, the birthrate is 1.3. As a result, Japan will lose up
to 60 million people over the next 30 years. Japan refuses
to import workers. Instead, they are just shutting down. By
2020, one out of every five Japanese will be at least 70
years old.
• Nobody has any idea about how to run an economy with
those demographics.
• The U.S. birth rate is 2.0, just below replacement. We have
an increase in population because of immigration. The
Anglo birth rate is 1.6 (same as France) while the Hispanic
birth rate is 2.7.
• In the U.S., the baby boomers are starting to retire in
massive numbers. This will push the elder dependency
ratio from 19 to 38 over the next 10 to 15 years. This is not
as bad as Europe, but still represents the same kind of
trend.

Civilization - Implications

• Young people are delaying marriage and having a family

• Once this trend starts, the downward spiral only gets worse

• These countries have abandoned all the religious traditions
they formerly held in regard to having families and raising
children

• Western civilization seems to have forgotten that every
primitive society needs kids to have a healthy society –
children are huge consumers who later become taxpayers


Over the next 10 years, the world’s population is expected to grow
by almost 20 percent, primarily in emerging market regions.

Source: IBM Institute for Business Value analysis, “The World at Six Billion,” United Nations, 2004; The World UN Population Assessment 2006; “Unsustainable World,: BBC, April 15, 2008.


Social Communication Impact
• Took 100,000 years for first Billion people to be connected on
Internet
• Took 6 years for the next Billion to be connected
• 70,000 new people linking in every day
• Today, one half of the world’s population is linked
• Creating a fundamental shift in the way society and the world
works
• Word-of-mouth as a trusted source of information
• Limited control over social networks, blogs, wikis and mashups
• Worldwide mobile phone subscriptions forecast to reach 5.3
billion by 2013 up from 3 billion currently (April, 2009, IBM
Global Business Services )
Source: Jump Point by Tom Hayes (McGraw Hill, 2008)


Connecting with New Markets and
Customers

• Consumers are increasingly demanding of the products they use and
consume
• More knowledge about products and alternatives
• Less brand loyal
• Exploration of segments and regions beyond traditional markets
• Need to build deep understanding of motivations and influencers of
perceptions and purchasing decisions
• People with limited disposable income can ill afford products that fail to
deliver on value
• Organizations with unfocused marketing messages selling stripped
down versions of existing products are unlikely to succeed
Source: IBM Institute for Business Value analysis, “The future of the Consumer Products industry (April,
2009)


Positioning for the Future

• Understand new markets and find ways to connect with
consumers

• Understand and sustain consumers in the lower income tiers
with appropriate services and products

• Master distribution channels with collaboration and direct
relationships with consumers

• Understand where direct involvement in the value chain adds
value and creates sustainable differentiation


Toyota’s Recall and Reputation
• Recall of 2.3 million vehicles in US
– Move from mechanical system to electronic system
– Supplier CTS Corporation made pedals and sensors slightly different than
Japanese supplier, who have had no issues
– Need to change pedal material based on impact of heat
• 5 million replacement pedals for floor mats that could jam
accelerators
• North American production on 8 models suspended
• Delay in timely recall (Tundra pick up trucks – March 2007,
Europe fixed August, 2009)
• Toyota’s credibility tarnished and embarrassing loss of quality
• How will they handle relationship with customers?


2010 Outlook
• 15.3 million unemployed persons (December, 2009)
– Unemployment rate is 10%
– “Underemployment” is 17% (November, 2009)
• 2007 – For every one job there were 1.7 applications; 2009 for every
one job there were 6.4 applications
• The Conference Board Consumer Confidence Index® stands at 52.9
up front 50.6 in November
– The Expectations Index increased to 75.6 from 70.3 last month
– The Present Situation Index, however, declined to 18.8 from 21.2
in November
• Real gross domestic product increased at an annual rate of 2.2 percent
in the third quarter of 2009. In the second quarter, real GDP decreased
0.7 percent.


US Education Industry Trends

• Higher education is one of the last ones to be
impacted from the digital age
• However, there are many e-education companies
with highly competitive cost models
• Online products are improving rapidly and being
recognized by business and industry
• Graying of the workforce more pronounced in higher
education
• Budgets for professional development have dried up

Source: Scott Martens, Director, Service & Continuous Improvement, University of Minnesota, 2009


Your Challenging Environment

• Declining resources
• Cultural stress and frustration based on
increasing work load and change
• Continuing technological revolution
• Not enough time
• Increasing demands on your
professional and personal life


Reasons to study Charles Darwin and
The Origin of Species

Why it is critical to seek and embrace
the discomfort of change?


Reasons to study Charles Darwin and
The Origin of Species

• These turbulent times require adaptation

• There are huge opportunities for you to thrive


Be Flexible
Darwin
• Species that survive and prosper are those that adapt
and change in their environment.
Your Organization
• Responding intelligently to changes in the world gives
you an edge
• Smart companies develop agile teams with skills to
change course as necessary
• Strike a balance between planning and being flexible
• Adjust priorities and be responsive


Challenge Conventional Thinking
Darwin
• 19th century scientists did not know what to make of
fossil discoveries
• Many believed the bones were from strange
creatures that were too large to get through the door
of Noah’s ark!
• Darwin made the connection that the bones were
similar to more modern animals suggesting an
evolutionary process
Your organization
• Listen actively and question deeply

Daring Goals

“Has anybody else done this?

“Isn’t this worth trying?”

Daring goals that will motivate a search for
radical new ways of mobilizing and organizing
human capabilities
Source: Harvard Business Review, (Feb, 2009), Gary Hamel, “Moon Shots for
Management”

Your Focus

• Your Challenges
• Your Core Values
• Your Ethics
• Your Vision
• Your Strategy
• Your Customer Satisfaction
• Your Leadership


Your Challenge

• Strengthen your leadership capacity
• Increase your ability to work with resolve
• Work smarter for a better professional and
personal life
• Continue to work with hope and passion to
identify new opportunities
• Continue to learn


The Six Fundamentals of Success ®

• Make sure you add value
• Communicate up and down, inside and out
• Know how to deliver results
• Conduct yourself and your business with
integrity
• Invest in relationships
• Gain perspective
Source: The Six Fundamentals of Success by Stuart R. Levine (Random House, 2004)


Define Adding Value

• Increase your capacity to serve your clients
• Increase your individual worth as an
employee to increase value of company
• Increase value of company by improving
quality for the client
• Care passionately about your clients
• Improve your skills to keep finding new ways
to add value


Add Value to Your Customers

• Increase agility to adjust to customer needs
• Era of entitlement is over
• Listen actively
• Collect data and analyze it
• Innovative ideas move you towards the zone
of hope


Make Communication an Imperative

• Make your communication more purposeful
• Every meeting should have a purpose
• Start on time, end on time
• Establish an agenda
• Master the ten-minute meeting
• Solicit feedback during the meeting and
afterwards


Deliver Results
• Energy and time management
• Understand and align with strategy
• Prioritization
• Avoid toxic people
• Stay positive and passionate
• Power of nice vs. baby is ugly
• Renew yourself every day
• A bottle of wine, a cut flower


Conduct Yourself with Integrity

• Unrelenting set of values
• Set the tone by your actions
• Ethical values remain the foundation for
success
• Respect for yourself and others
• The world doesn’t owe you a living
• Chance to add value is a privilege
• Self-confidence from continuous learning

Invest in Relationships

• Ask your colleagues and team what they think
• Establish a relationship radar screen
• Face time counts
• Seek out the “energy generators”
• Share information of value


Gain Perspective

• Setbacks make us stronger
• Know when to take a deep breath
• Make room for all parts of your life
• Get comfortable with not knowing
• Nothing or nobody can affect you negatively
• Don’t hide your passion


Cut to the Chase

•Think Clearly
•Act Effectively
•Communicate Directly

Source: Cut to the Chase by Stuart R. Levine (Random House, 2006)


Think Clearly

• Look at the big picture
• Make your mission possible
• See your customer as a person
• Know what’s on your boss’s
dashboard


Act Effectively

• Surround yourself with ethical people
• Set a good example
• Avoid toxic people
• Treat others with respect
• Act like an owner
• Know the burn rate of key resources
• Work with a sense of urgency
• Deliver on promises


Communicate Directly

• Hostile business environments require more
communication, not less
• Ask your colleagues and team what they think
• Face up to difficult conversations
• Resist taking your “emotional temperature’ every
five minutes
• Share the good news – and the bad
• Establish a rhythm


Communicate Directly

• Face time counts
• Do breakfast
• Say thank you
• Coach your team all day long
• Satisfied employees = loyal customers
=bigger profits


Gain Perspective and Find Balance

• Renew yourself every day
• Take back the weekend
• Know when to take a deep breath
• Get comfortable with not knowing
• Nothing or nobody can affect you
negatively
• A bottle of wine, a cut flower


Thank you!
Stuart Levine & Associates LLC
100 Jericho Quadrangle, Suite 111
Jericho, NY 11753
516-465-0800 slevine@stuartlevine.com
www.stuartlevine.com


Leadership at Every Level

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