TMA conference Leadership is a Team Sport

Leadership matters

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The leverage Strategic Leadership provides can be big and fast

S J Berwin

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Disguised case study

Understanding leadership

Is this a good leadership group ?

• “Making vision a reality” Warren Bennis

• “Surrounding yourself with great people” Rudolph Giuliani

• “Creating an environment in which others can succeed” Bob Bauman

What is Leadership ?

The tasks of Leadership:

The Leadership Agenda: Connecting the practice of leadership to business performance

The Leadership

Agenda

Destination and Campaigns

An OrganisationFit for Purpose

The Right Team and the Team Right

The purpose of leadership in business is competitive advantage

The purpose of leadership in business is competitive advantage

Think

Discover purposeChoose strategic positionAlign the two

Inspire

Build communityTap into moralityAct as an exampleTell stories

Mobilise

Define campaignsNegotiate targetsand roles

Empower

Get the wiring right Empower anddis-empowerEncourage networks

Where leaders spend their TIME

TIME framework

Time and the Balanced Action Team

Leadership is a team sport

Think Inspire Mobilise Empower

Leadership is a team sport

SovereignFocuses on big picture and judges everything on whether it leads to where she wants things to go.Redefines what people consider is possible.Obsessed by beliefs.‘direction’ is action.

Lover Everything comes down to human relations.Focuses on building the winning coalition, Obsessed with feelings‘agreement’ is action.

MagicianThinks that a new idea / insight is the only thing that can move the world.His best answer to feeding the troops is to pull a rabbit out of a hat.Obsessed by ideas.‘argument’ is action.

Warriorfocuses on the next battle. He cannot see very far, but sees very clearly in front of him holds people accountable, to systems, and the fairness of them.obsessed by facts‘finding the critical factor’ is action.

Leadership is a team sport

SovereignFocuses on big picture and judges everything on whether it leads to where he wants things to go.Redefines what people consider is possible.Obsessed by beliefs.‘direction’ is action.

Lover Everything comes down to human relations.Focuses on building the winning coalition, Obsessed with feelings‘agreement’ is action.

MagicianThinks that a new idea / insight is the only thing that can move the world.His best answer to feeding the troops is to pull a rabbit out of a hat.Obsessed by ideas.‘argument’ is action.

Warriorfocuses on the next battle. He cannot see very far, but sees very clearly in front of him holds people accountable, to systems, and the fairness of them.obsessed by facts‘finding the critical factor’ is action.

Leadership is a team sport

SovereignFocuses on big picture and judges everything on whether it leads to where he wants things to go.Redefines what people consider is possible.Obsessed by beliefs.‘direction’ is action.

Lover Everything comes down to human relations.Focuses on building the winning coalition, Obsessed with feelings‘agreement’ is action.

MagicianThinks that a new idea / insight is the only thing that can move the world.His best answer to feeding the troops is to pull a rabbit out of a hat.Obsessed by ideas.‘argument’ is action.

Warriorfocuses on the next battle. He cannot see very far, but sees very clearly in front of him holds people accountable, to systems, and the fairness of them.obsessed by facts‘finding the critical factor’ is action.

Leadership is a team sport

SovereignFocuses on big picture and judges everything on whether it leads to where he wants things to go.Redefines what people consider is possible.Obsessed by beliefs.‘direction’ is action.

Lover Everything comes down to human relations.Focuses on building the winning coalition, Obsessed with feelings‘agreement’ is action.

MagicianThinks that a new idea / insight is the only thing that can move the world.His best answer to feeding the troops is to pull a rabbit out of a hat.Obsessed by ideas.‘argument’ is action.

Warriorfocuses on the next battle. He cannot see very far, but sees very clearly in front of him holds people accountable, to systems, and the fairness of them.obsessed by facts‘finding the critical factor’ is action.

Leadership is a team sport

SovereignFocuses on big picture and judges everything on whether it leads to where she wants things to go.Redefines what people consider is possible.Obsessed by beliefs.‘direction’ is action.

Lover Everything comes down to human relations.Focuses on building the winning coalition, Obsessed with feelings‘agreement’ is action.

MagicianThinks that a new idea / insight is the only thing that can move the world.His best answer to feeding the troops is to pull a rabbit out of a hat.Obsessed by ideas.‘argument’ is action.

Warriorfocuses on the next battle. He cannot see very far, but sees very clearly in front of him holds people accountable, to systems, and the fairness of them.obsessed by facts‘finding the critical factor’ is action.

Disney: Of Mice and Men

Focus on two periods in Disney history:

• 1984 -1994: the path to The Lion King – $50m movie delivered $766m box office returns in 1 year ‘94-95– By early ’96 delivered $1.5bn of merchandise, videos and

associated revenues– Total of over $3bn revenues from Lion King and a contribution of

$900m– Between ‘83 –’95 Disney relative stock price performance moved

from under $2 a share to over $18

• 1997-2004: Decline of Empire– Two expensive acquisitions: ABC and Fox Family– Failed relationships; Katzenbach, Pixar, Miramax and Boardroom

battles– Between 2000-2004 share price declined from $37 - $18

How did the Leaders spend their TIME ?

Disney: Of Mice and Men:

THINK

Purpose and Strategy

a shared purpose to make people happy

Excellent branded content and demand creation and branded distribution

“Profit Multiplier” business model: Create core content and leverage it through multiple channels and multiple partners

Disney: Of Mice and Men:

THINK

Impact of Loss of Purpose

• Sole focus on deal terms and the financial numbers (vs. making people happy)

• “Disney has become an enterprise that is rapacious, soulless and always looking for the quick buck” Roy Disney

Strategy unchanged

Branded content and demand creationand branded distribution

“Profit Multiplier” business model:Create core content and leverage it through multiple channels and multiple partners

Disney: Of Mice and Men

INSPIRE

• Leader as Chief visionary and story teller

•“If you can dream it you can do it” Walt Disney

•“Katzenbach constantly reminds us who we are, what we stand for the heritage of our company and our ability to change the world”

•The Walt Disney Company is more than just a business…it stands for something real and meaningful and worthwhile to millions of people..our mission has always been to be the bringers of joy, to be framers of the good in each of us. To speak not to children but to the child in each of us” Roy Disney

Disney: Of Mice and Men

INSPIRE

• Leader as Chief visionary and story teller

•“If you can dream it you can do it” Walt Disney

•“Our mission has not changed it is still to create the best animated art, tell the best stories to make magic and make people happy “ Katzenbach

•“Katzenbach constantly reminds us who we are, what we stand for the heritage of our company and our ability to change the world”

• Results not magic

•“Titans was a wonderful and moderately budgeted motion picture” Eisner

• “Good morning…as it happens this annual meeting is taking place at a time when the amount of vision is once again resulting in ….a dramatic and we believe a sustainable upswing in Disney’ perfomance… we set have target of double digit compaunded growth in earnings”

Eisner opening remarks to animation team annual meeting

Disney: Of Mice and Men

MOBILISE

• Campaigns and building coalitions

•“The strategy is clear, to deliver against it we need to focus on building partnerships, like Pixar, Mattel, and Burger King, this year” Eisner

•“Our mission is to be like an orchestra full of virtuoso’s – each of us brilliant and together dazzling…” Frank Wells

•“Our business model is based on our employees and strategic partners trusting and sharing in our vision; they multiply the value we create” Frank Wells

Disney: Of Mice and Men

MOBILISE

• Failure to manage the politics

• Fall out with Katzenbach who successfully sued for $270m, and created key competitor Dreamworks

• Failed to agree new terms for a partnership with Pixar that contributed 45% of Disney’s studios operating income

•Accused Jobs of encouraging music piracy

• Campaigns and building coalitions

•“The strategy is clear, to deliver against it we need to focus on building partnerships, like Pixar, Mattel, and Burger King, this year” Eisner

•“Our mission is to be like an orchestra full of virtuoso’s – each of us brilliant and together dazzling…” Frank Wells

•“Our business model is based on our employees and strategic partners trusting and sharing in our vision; they multiply the value we create” Frank Wells

Disney: Of Mice and MenEMPOWER

Creating the conditions for others to be successful

• Synergy VP and corporate synergy team reporting directly to CEO

• Cross divisional meetings focused on synergy planning

• Divisions filed monthly operating reports – included cross-business initiatives

• Year end evaluations focused on synergy - explicitly recognised at bonus time

• Disempowered (fired) executives who took a narrow perspective only

Disney: Of Mice and MenEMPOWER

Imperious Micromanagement• “Eisner has so many ideas but he gives people too little power and authority

to execute them” … “he’s more hands on than Mother Theresa”

• Fired key executives that disagreed with him led to failure to deliver benefits from Capital Cities ABC acquisition –now bottom of networks

• Took personal control over master planning at Animal Kingdom, and California Expansion $2bn project: widely seen as one of the least successful Disney theme park expansions

• Under Eisner, Disney has become isolated – “like North Korea, a struggling insular dictatorship – led by Kim Jong Eisner”

• Eisner personally re-negotiated deal to buy Fox Family– losing Disney over $800m in his revised terms vs. deal outlined by his team

• “Everything has become subjugated to “what does Michael think ?” It’s a culture that stifles creativity and means we lose the best talent”

Disney: Of Mice and Men

Leadership is a team sport

• Wells, Katzenbach, Roy Disney, played important roles in revival of Disney alongside Eisner

• Eisner was the creative force and occasionally brilliant at deal making

• Wells ran the business – he was a wise counsel and a financial troubleshooter eg Eurodisney refinancing deal

• Katzenbach is known as the “golden retriever” who “makes the rest of Hollywood look french in its work habits” – got things done

• Roy Disney represented the purpose and continuity of the firm

Disney: Of Mice and Men

• Eisner alone has seen Disney’s most recent decline

• Following Well’s death and Katzenbach’s departure to start Dreamworks, Eisner assumed greater control, preferring “yes men”

• Ovitz recruited as COO.. but CFO and legal counsel still reported to Eisner• later sacked for $140m settlement

• “What Michael likes is to put six pit bulls together and see which five die”

• Without the balance of a top team: big ideas, poor analysis and poor execution

Leadership is a team sport• Wells, Katzenbach, Roy Disney, played important roles in revival of Disney alongside Eisner

• Eisner was the creative force and occasionally brilliant at deal making

• Wells ran the business – he was a wise counsel and a financial troubleshooter e.g: Eurodisney refinancing deal

• Katzenbach is known as the “golden retriever” who “makes the rest of Hollywood look french in its work habits” – got things done

• Roy Disney represented the purpose and continuity of the firm

Think

Discover PurposeChoose Strategic positionAlign the two

Inspire

Build CommunityTap into moralityAct as an exampleTell storiesConfront realityShow it is possible

Mobilise

Define campaignsSet targetsNegotiate Roles

Allocate resources Manage the PoliticsBuild coalitionsNeutralise opponents

Empower

Get the wiring right Manage authority Delegate powerDis-empowerEncourage networksScrutiny and oversight

Where leaders spend their TIME

TIME framework

Leadership is a team sport

Too many sovereigns•too many directions at once, or radically changes direction regularly.

•no centre of gravity as many unresolved business issues up in the air all the time.

•There will be many subjects that cannot be discussed and an atmosphere of distrust.

•appears fragmented, with poor communication.

•Issues regarding strategy and direction

Too many lovers •value consensus to the detriment of results.

• too many meetings. too much talking and not enough action.

•excessive reliance on outside constituencies.

•appears as lacking competitiveness and edge.

•Issues regarding execution and innovation

Too many magicians•pondering opportunities all the time, but it will lack decisive action, even though its thinking is excellent.

•more concerned with having it done ‘right’ than having it done.

•It will be especially vulnerable to pursuing superior technology at the expense of something that customers would buy.

•appears as a debating society.•Issues regarding execution.

Too many warriors•experience difficulties if anything in the environment changes.•won’t be proactive, miss opportunities that its competitors may exploit.•appears as a parade of soldiers.•Issues regarding innovation.

Leadership team: the benefits of Balance

Too many sovereigns•too many directions at once, or radically changes direction regularly.

•no centre of gravity as many unresolved business issues up in the air all the time.

•There will be many subjects that cannot be discussed and an atmosphere of distrust.

•appears fragmented, with poor communication.

•Issues regarding strategy and direction

Too many lovers •value consensus to the detriment of results.

• too many meetings. too much talking and not enough action.

•excessive reliance on outside constituencies.

•appears as lacking competitiveness and edge.

•Issues regarding execution and innovation

Too many magicians•pondering opportunities all the time, but it will lack decisive action, even though its thinking is excellent.

•more concerned with having it done ‘right’ than having it done.

•It will be especially vulnerable to pursuing superior technology at the expense of something that customers would buy.

•appears as a debating society.•Issues regarding execution.

Too many warriors•experience difficulties if anything in the environment changes.•won’t be proactive, miss opportunities that its competitors may exploit.•appears as a parade of soldiers.•Issues regarding innovation.

Leadership team: the benefits of Balance

Too many sovereigns•too many directions at once, or radically changes direction regularly.

•no centre of gravity as many unresolved business issues up in the air all the time.

•There will be many subjects that cannot be discussed and an atmosphere of distrust.

•appears fragmented, with poor communication.

•Issues regarding strategy and direction

Too many lovers •value consensus to the detriment of results.

• too many meetings. too much talking and not enough action.

•excessive reliance on outside constituencies.

•appears as lacking competitiveness and edge.

•Issues regarding execution and innovation

Too many magicians•pondering opportunities all the time, but it will lack decisive action, even though its thinking is excellent.

•more concerned with having it done ‘right’ than having it done.

•It will be especially vulnerable to pursuing superior technology at the expense of something that customers would buy.

•appears as a debating society.•Issues regarding execution.

Too many warriors•experience difficulties if anything in the environment changes.•won’t be proactive, miss opportunities that its competitors may exploit.•appears as a parade of soldiers.•Issues regarding innovation.

Leadership team: the benefits of Balance

Too many sovereigns•too many directions at once, or radically changes direction regularly.

•no centre of gravity as many unresolved business issues up in the air all the time.

•There will be many subjects that cannot be discussed and an atmosphere of distrust.

•appears fragmented, with poor communication.

•Issues regarding strategy and direction

Too many lovers •value consensus to the detriment of results.

• too many meetings. too much talking and not enough action.

•excessive reliance on outside constituencies.

•appears as lacking competitiveness and edge.

•Issues regarding execution and innovation

Too many magicians•pondering opportunities all the time, but it will lack decisive action, even though its thinking is excellent.

•more concerned with having it done ‘right’ than having it done.

•It will be especially vulnerable to pursuing superior technology at the expense of something that customers would buy.

•appears as a debating society.•Issues regarding execution.

Too many warriors•experience difficulties if anything in the environment changes.•won’t be proactive, miss opportunities that its competitors may exploit.•appears as a parade of soldiers.•Issues regarding innovation.

Leadership team: the benefits of Balance

Too many sovereigns•too many directions at once, or radically changes direction regularly.

•no centre of gravity as many unresolved business issues up in the air all the time.

•There will be many subjects that cannot be discussed and an atmosphere of distrust.

•appears fragmented, with poor communication.

•Issues regarding strategy and direction

Too many lovers •value consensus to the detriment of results.

• too many meetings. too much talking and not enough action.

•excessive reliance on outside constituencies.

•appears as lacking competitiveness and edge.

•Issues regarding execution and innovation

Too many magicians•pondering opportunities all the time, but it will lack decisive action, even though its thinking is excellent.

•more concerned with having it done ‘right’ than having it done.

•It will be especially vulnerable to pursuing superior technology at the expense of something that customers would buy.

•appears as a debating society.•Issues regarding execution.

Too many warriors•experience difficulties if anything in the environment changes.•won’t be proactive, miss opportunities that its competitors may exploit.•appears as a parade of soldiers.•Issues regarding innovation.

Leadership team: the benefits of Balance

The Leadership AgendaJoining up the dots

What advantage do you need to win ?

Where have you chosen to go ?

What campaigns do you need to focus on ?

What leadership do you need ?

All are important, Strategic Leadership aligns and integrates them for advantage

All are important, Strategic Leadership aligns and integrates them for advantage

Is the organisation fit for purpose ?

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