Presentation by Charlene Li on her new book, to be published in May 2010 by Jossey-Bass. Presented at a Harvard Business School Alumni Northern California Club event, September 14, 2009.

1. Open: How Leaders Win By Letting Go Charlene Li Altimeter Group September 14, 2009 For a copy of slides, send an email to info@altimetergroup.com

2. My visit on the USS Nimitz 2

3. 3 Captain Michael Manazir USS Nimitz “I encourage you to talk to people, ask them anything you want. Because after all, this is your Navy.”

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5. 5 “Flying off a carrier at night into a pitch blackness scares me so much that I scream into my mask. I feel like a die a little death every day. I love my work, but suffer from insomnia – but then, we all do. The Navy cannot really train us pilots to deal with the fear -- they can only hope that we learn the skills to get the job done.” Lieutenant Luis Delgardo USS Nimitz

6. What engagement often looks like today 6

7. Meet Dave Carroll Source: davecarrollmusic.com 7

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9. Leaders must prepare for organizational change Social technologies will disrupt traditional organization structures

10. It’s about the relationship 10

11. Focus on relationships, not technologies What kind of relationship do you want? Transactional Occasional Impersonal Short-term Passionate Constant Intimate Loyal 11

12. Give up the need to be in control Photo: Kantor, http://www.flickr.com/photos/kantor 12

13. How open or closed will you be? 13

14. The Open Process 14

15. Deciding how open to be 15

16. Honda’s Crosstour trashed on Facebook – What should Honda do? 16

17. Let Go, but Retain Command The Sandbox Covenant 17

18. Examples of Sandbox Covenants Plans and rules for engagement Have plans on how to engage Social media policies Develop contingency plans What to do about negative feedback/comments Line up advocates who can counter detractors 18

20. Why policy is needed

21. Cases when it will be used, distributed

22. Oversight, notifications, and legal implications

23. Guidelines

24. Identity and transparency

25. Responsibility

26. Confidentiality

27. Judgment and common sense

28. Best practices

29. Tone

30. Expertise

31. Respect

32. Quality

33. Additional resources

34. Training

35. Press referrals

36. Escalation

38. Have a plan to deal with different social media mindsets Collaborative Independent Optimist Pessimist

39. Traditional vs. Open Leadership 22

40. Find your open leaders Lionel MenchacaDell Paula DrumH&R Block Ed TerpeningWells Fargo Revolutions create the “moments of faith” and support in “moments of crisis”

41. The “Flaming Notebook” post set the tone for future engagement 24

42. Dealing with risk and failure Identify the top 5-10 worst case scenarios. Develop mitigation and contingency plans. Prepare everyone for the inevitable failures. 25

43. Wal-mart failed many, many times

44. Buyer blog hit the right note

45. Discussion What are the biggest barriers you see to letting go? Who have been the open leaders in your career? What characteristics made them successful? What practices, procedures, and policies do you find helpful in encouraging openness? 28

46. Summary Prepare to let go of the control you never had. Determine how open you will be. Find and nurture your open leaders. Build practices into your organizations to sustain openness. 29

47. Thank You Charlene LiAltimeter Group charlene@altimetergroup.com blog.altimetergroup.com Twitter: @charleneli For slides, send an email to info@altimetergroup.com 30 Copyright © 2009 Altimeter Group