A New Leadership Mindset:
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1 A New Leadership Mindset: Engagement with a focus on growth Presented by Jeanne Liedtka Darden School of Business
2 Leading Organic Growth: Continuum of Growth Opportunities TURBOCHARING: Building a better business model and leveraging existing resources and capabilities Survey Database: 54 leaders from the U.S. and Europe operating in the for profit and not-for-profit sectors Criteria for selection: Mid-line or business unit managers responsible for organic growth significantly exceeding market growth Methodology: Personal interviews DiSC Assessments Peer surveys
3 Leading Organic Growth, An Overview BEST BUY CAPITAL ONE CORNING INC CPP INTL DELL DHL INTERNATIONAL DISCOVERY COMMUNICATIONS GE VENDOR FINANCIAL SERVICES HAMILTON SUNDSTRAND HEWLETT-PACKARD COMPANY IBM ING DIRECT USA LEGG MASON MASTERFOODS/M&M MARS MERRILL LYNCH NBC UNIVERSAL NORTHWESTERN MUTUAL PFIZER CONSUMER HEALTHCARE POWER DISTRIBUTION, INC. PROCTER & GAMBLE RAYTHEON ROYAL PHILIPS ELECTRONICS SCHAFER CORP. SIMMONS BEDDING STONYFIELD FARMS SULLAIR TARGET TRADER PUBLICATIONS 3
4 Six Characteristics of the Catalysts Repertoire Learning mindset > Unafraid of failure > Interested in new experiences Entrepreneurial orientation > Willingness to manage vs. avoid risk > Affordable loss measurement mentality Experimental approach Deep customer connection Pragmatic idealist > Best people on growth > Cross-functional teams > Tell hard truth about current reality and be optimistic about a new future
5 Hypothesizing about what really goes on Vicious Cycle Fixed Mindset Virtuous Cycle Growth Mindset All of this confirms Fail more often in new situations Place big bets, slowly Manage risk through analysis Life is a test, therefore avoid looking foolish and Fear Avoid OUTLOOK UNCERTAINTY Life is a journey of learning, therefore Accept Seek NEW EXPERIENCES Narrow REPERTOIRE Broad All of this confirms Succeed more often in new situations Place small bets, quickly Manage risk through action Overlook new growth opportunities Understand customers only as data Understand customers as people Detect new growth opportunities 5
6 So What? Two Paths: > Recruit and Retain > Develop
7 Retaining Growth Leaders Involves: Providing cover to entrepreneurial managers. Help them understand the differing physics of growth and learn to be more patient with the organization. Gain a better awareness of how their own ways of thinking and behaving are different than those of their colleagues. Give them the autonomy to invest in small experiments and change out their teams as necessary.
8 Developing Growth Leaders Involves Helping Managers to: Understand the differing challenges of growth vs. stability. Gain a better awareness of how their own ways of thinking and behaving are getting in their way. Tell them stories of success that demonstrate an alternative path. Teach them systematic techniques and tools to deepen customer understanding and operationalize an experimental approach.
9 What is Design Thinking? Design thinking is actually a systematic approach to problem solving. What would be different if managers thought more like designers? Problem solving would be driven by three core beliefs: Empathy start by establishing a deep understanding of human needs Exploration discover possibilities before narrowing down to next steps Iteration use the first solutions only as stepping stones to the right solution
10 Is Design Thinking Magic? Asked to describe design, Tim Brennan of Apple s Creative Services drew the following picture.
11 Business and Design Business and design like most opposites have a lot to offer each other. Underlying Assumptions Method BUSINESS Rationality, objectivity; Reality as fixed and quantifiable Analysis aimed at proving one best answer DESIGN Subjective experience; Reality as socially constructed Experimentation aimed at iterating toward a better answer Process Planning Doing Decision Drivers Values Levels of Focus Logic; Numeric models Pursuit of control and stability; Discomfort with uncertainty Abstract or particular Emotional insight; Experiential models Pursuit of novelty; Dislike of status quo Iterative movement between abstract and particular
12 Six Things Managers Know That Are Dead Wrong Here are six common management myths that will definitely make your life more difficult. Myth 1: Don t ask a question you don t know the answer to. A better maxim for growth leaders is: Start in the unknown. Myth 2: Thing big. A better maxim for growth leaders is: Focus on meeting genuine human needs. Myth 3: If the idea is good, then the money will follow. A better maxim for growth leaders is: Provide seed funding to the right people and problems, and the growth will follow. Myth 4: Measure twice, cut once. A better maxim for growth leaders is: Place small bets fast. Myth 5: Be bold and decisive. A better maxim for growth leaders is: Explore multiple options. Myth 6: Sell your solution. If you don t believe in it, no one will. A better maxim for growth leaders is: Choose a worthwhile customer problem. Let others validate.
13 Design Thinking Model We sought to make design thinking a little more manageable: 13
14 Ten Design Tools 14
15 Contact info:
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