Mike Innes - Big Company/Small Company: Leadership is the Key
1.
2. Big company/small company
- Leadership is the key
Mike Innes
Profit Champion
The Manufacturing Institute
3. So what have I learnt about leadership?
My first engineering role
Great training and mentoring
In at the deep end
SME with global reach
Operational excellence first
Profit Champion for SME’s
4. Leadership is quite broad
• Providing direction with a clear and compelling way forward with coordinated
plans and actions organised to achieve agreed goals
• Adapting positively to change, taking the initiative, clarifying issues and
ensuring decisions are logical
• Communicating persuasively to engage people while presenting a confident,
assertive personal image
• Enabling others to take the right action, delegating effectively to the right
people as well as listening, supporting and giving constructive feedback
• Learning personally from all situations, accepting responsibility for mistakes and
persevering with determination to succeed
Andrew DuBrin estimates there are 35,000 definitions of leadership in academic literature.
5. Principle centred leadership
• The Mars Five Principles are the foundation
of their culture and approach to business.
• They unite employees (associates) across
geographies, languages, cultures and
generations.
6. Great Place to Work® recently noted other key areas for
its unique working environment and Associate culture:
• Mars’ commitment to providing safe, healthy and positive
workplaces so that all Associates feel engaged and motivated.
• Providing a unique learning and development program through
Mars University, with more than 40 percent of Associates
participating in learning programs worldwide.
• A commitment to making a difference to people and planet
through performance by putting Mars Five Principles into action
through their work or community engagement.
7. Surrounded by great people
• When you have 20 great ideas, someone needs to
decide where to focus
• Energy everywhere, but watch out for arrogance
• Every ex-Mars person I’ve come across says it was a
great place to work
The Mars Five Principles guide everything
8. Small company leadership
– it’s just the same
• Define your values
• Communicate widely
• Build a great management team
• Get out of the office and the building
• The world’s a small place when you have
a compelling value proposition
9. Culture and Values
• Commitment to developing and maintaining long term
Customer and partner relationships, through building trust
and exceeding expectations.
• People make the business – listen, communicate and involve
• Obsess with Quality
• Drive continuous improvement and Change relentlessly
Ensure your values are shared with all your stakeholders,
communicate relentlessly
10. Values in action, linked to the
Crane Business System
• Strength through integrity
• Performance culture based on trust and respect
• Make it ugly
• Good people make good things happen
• Continuous improvement
• Passion for learning
• Crane helping Crane
• Focus on the customer
• Faster, better, easier
Crane hold 500 Kaizen events each year as the basis for continuous improvement
11. Operational excellence rules
• Continuous improvement as standard work
• Investment in training gives great payback
• Process needs balancing with creativity and
freedom
12. Characteristics Industrial Age Knowledge Age
Asset Base Tangible assets Intangible assets
Capital & Labour Skills & Knowledge
Resources Innovation
Leadership Practices Principles
Focus on efficiency Focus on effectiveness
Formal Authority Moral Authority
Leaders as a boss Leader as a servant
Boss is responsible Culture is responsible
Leadership
Challenges
13. “The rate of change is not going to slow down anytime soon. If
anything, competition in most industries will speed up even more.“
Globalisation
Horizontalisation Technology
LEADERSHIP
Ageing
Society
Quality of
Life
More
Educated
Balance
Retrenchment
The structure and type of
work will change
Diversity
Technology
More than a third of employees
would take a pay cut for less
stress
More than a third of 24
year olds are graduates
Putting together programs that help employees
find the right balance between home and work
Baby boomer
retirement ‘wave’ will
wash many skills from
industry
Dealing with a diverse
workforce and finding a way
to direct these workers
toward a common purpose.
Technology will give employees
more autonomy over when and
where they work.
Effective handling of company
downsizing and retrenched
workers
Equal access to information
and knowledge
John P. Kotter
Leadership
Challenges
14. Leadership Challenges - new paradigms
(Highly educated)
(Capable of independent thought
and willing to challenge)
(Evolution of consciousness seeing
desire to own one’s own destiny –
even with older workforce)
(Priorities of current
workforces very different to
predecessors)
16. Principle –centered Leadership
“If you focus on
principles, you empower
everyone who
understands those
principles to act without
constant monitoring,
evaluating, correcting
or controlling”
Stephen R Covey
17. Some things I learned along the way
• Visit customers all the time and encourage everyone else to
• Build trust by listening, and then following through on promises
• Customers don’t always know what they want until you show them it
• Vision – people like to know where they’re going
• Build a great team around shared values
• Create product champions – things need to be loved
• Training, training, training
• Go ugly early– expose problems and fix them fast
• People expect quality
• Bend like a bamboo – pick your battles
Notas del editor
I’ve had the privilege of working in some great companies with some great leaders
Tried to define for SME’s – people want to know how to be a leader and are disappointed when it gets complicated
72,000 employees, Global Revenues: $33 billion
Quality - The consumer is our boss, quality is our work and value for money is our goal.Responsibility - As individuals, we demand total responsibility from ourselves; as Associates, we support the responsibilities of others.
Mutuality - A mutual benefit is a shared benefit; a shared benefit will endure.
Efficiency - We use resources to the full, waste nothing and do only what we can do best.
Freedom - We need freedom to shape our future; we need profit to remain free.
In 1947, Forrest E. Mars, Sr. documented his commitment to building a business that creates a “mutuality of benefits” for all stakeholders.
Mars, Incorporated’s annual ‘Make The Difference’ Awards shines a light on these successes and as testament to the scale and inclusivity of the awards, approximately 26,000 nominations were submitted for recognition in 2013.
Other key programs include the Mars Volunteer Program where in 2012, more than 12,500 Associates volunteered more than 50,000 hours. Additionally, the Mars Ambassador Program (MAP) enables up to 100 Associates to spend between one and six weeks all over the world improving Mars’ communities and developing their own leadership skills.
Bowthorpe to Spirent – FTSE 250
Divested within 6 months of joining, poorly advised MBO, I ended up as MD
Defined values and culture from Day 1
The theme for everything
Based on Toyota – but better!
Aim is to get the best out of average people
Big on acquisitions and synergy savings
Driving productivity year on year
Shareholder value rising
The Knowledge Worker - Peter Drucker in The Age of Discontinuity 1969
- He predicted that the major changes in society would be brought about by information
- He argues that knowledge has become the central, key resource that knows no geography
- The defining characteristic of these knowledge workers is the level of their formal education.
The need for cultural and behavioural change is leaderships responsibility.
Practices to one of principles – its no longer about how but why -
Formal to moral and ethical leadership – how we treat and respect people and the planet – what is now referred to as the triple bottom line
Generation Z are the group born since just before the start of the Millennium. They are -- to their cynical Gen X parents -- almost nauseatingly worthy, keen to volunteer and aware that an education is to be treasured. Sparks & Honey says 60 per cent of them want to have an impact on the world, compared with 39 per cent of Millennials.
Generation Y Also known as Millennials, born between about 1980 and 2000. Born between the advent of the Walkman and the founding of Google, the members of Gen Y are unsurprisingly shaped by technology
Gen X are those born between the early 1960s and the early 1980s.
The focus on people, planet and profits — known as the new triple bottom line — will become the main way organizations attract and retain new hires. This will be critical because 80% of a sample of 1,800 13-25 year olds want to work for a company that cares about how it impacts and contributes to society. More than half also say they would refuse to work for an irresponsible corporation.
The triple bottom line is about organizations measuring their success not only by using financial measures, but also by how well they treat people and the environment.
The Millennials and Gen 2020 will demand companies to be more socially responsible or risk losing valuable talent to a competitor.
Mars talk of People, Planet and Performance
Collaboration through shared purpose creates advantage as everyone works towards a shared goal