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[Source: Robert N. Lussier and Christopher F. Achua]
4 Leader Development (Cont.)
How to be a global leader?
Creating Global Leaders
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Why does the world need
global leaders?
• Today’s global problems cannot be solved by
governments alone, by business alone, or by civil
society alone.
• Cooperation and partnerships are needed.
• There is a need for the global leaders to be aware of
these problems and to create awareness among others
• The Forum fosters a Community of Global Leaders
• Leaders of Tomorrow have a Global
Responsibility
• Global Operations = Workforce Diversity
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What are three important components
that any organization must provide in
developing leaders?
• Open Discussions
• Work/Life/Development Balance
• Allow young leaders to define their value systems,
personal beliefs, and ideals during leadership
development
To become a global leader, what are some
personal attributes and experiences that a
person should strive to achieve?
• Have the capacity to blend knowledge, expertise, and
competencies.
• Behave ethically, think strategically, communicate effectively
• Listen and gather information
• Make intelligent decisions
• Encourage cooperation and collaboration
• Present a positive and optimistic image
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Critical Competencies
for Next Leaders
Why all the focus on Next Generation
Leaders?
Baby Boomers are retiring.
The vast majority of organizational leaders are Baby Boomers,
with the most typical age being 58 years old.
There are 11% fewer Gen Xers than Baby Boomers.
Generation Y (25 and under) will not be management/leadership
material for years to come.
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The Impact of Demographics
Latino Immigration
40 Million+
GI Generation Silent Generation
56.6 Million 52.5 Million
Generation Y
Baby Boomers Generation X 79.5Million
78.2 Million 69.5 Million
1905
Birth Chart Build
1925 1945 1965 1985
2005
Sample Succession Chart
CEO
COO CFO S-Pres. VPMA CIO
SVP Network VP Service
CNO SVP HR Dev. VNA VP Dev. Lines
VP VP
CQO Construction Marketing
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Strengths of the Next
Generation Leaders
Ability to prioritize a multitude of important demands on their
time
Ability to delivery results/results oriented
A high integrity mind-set
Understanding of the technical side of the business and the
products and services
Leadership Pipeline
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Inner Drivers Competencies
Resources
Values Vision
Key Skills &
Motivators
Abilities
Judgement Decision Making
Courage Authenticity
Key Skills &
Abilities
Resilience Engagement
Communication Influence
Personality
Awareness Collaboration
Drive Growth
Emotional
Intelligence
Curiosity Planning
All the Drivers contribute to each Competence Creativity
Competency Deficits of Next
Generation Leaders
Top 5 Competencies Most Lacking in the Next Generation of Leaders
[Link]/System thinking;
[Link] change;
[Link] to create a vision and engage other around it;
[Link] to inspire;
[Link] the total enterprise and how parts work
together
Source: WEF 2012
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What Are We Going To Learn?
15
How to be a global leader?
1. Leadership Competencies & Skills:
2. How to Develop Leadership Competencies & Skills
a) Systems Thinking
b) Creativity
c) Risk Management
d) Business Continuity Management
16
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4.3.1 Systems Thinking
An approach that looks at the whole world view and the process
17
Thinking: why is it important?
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The current issue on system thinking
• More volatile marketplace Policy
• Global competition
• Shortened product life cycles Operation
Decision
• Customer pressures for Making
tailored offerings and tighter
performance standards Project
Creative Destruction New Product
New Technology Development
Development IT implementation
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Problems with our way of thinking
Brain and thinking process,
experiences and routine working
process.
Actions
Decision making process – trapped
in operational process – how to get
creative ideas.
Experience
Decisions feedback and
consequences
Source: Joseph O’Conor, Ian McDermott
Hence, systems thinking is
a framework for seeing:
• interrelationships rather than
things,
• patterns of change over time
rather than static snapshots.
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Example
Ringtones
LG
Foresight
SONY-Ericson Samsung Wallpaper
Open Apple Downloads Promotion
NOKIA
Innovation s
Technology News
Manufacturers
Convergence
R&D Services Push
Information
Development
Advertisin
Applications
Mobile Phone g
Industry
Co- AIS
Production
Design DTAC
Mass- Providers
Customisation Related
Industries Hutch
Banking
Standardisation Industry
Tourism TRUE
Alliance
Industry
4.3.2 Creativity An approach that looks at the whole world view and the process
24
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Innovative Companies
Source :
Peter Fist (2011),
Creative Genius
ISSUES
The importance of Innovation
Aspects of Innovation : Incremental and Radical
Innovation Process
The Role of Creativity in Innovation Process
Mechanisms Driving Creativity
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Business Objective of
Product & Process Innovation
• Improve product quality
• Increase market shares
• Fulfill regulations and standards
• Reduce environmental effects
• Learn about new technologies
• Reduce production cost/ improve yield
• Improve production flexibility, cycle time, work
condition
DEGREES OF INNOVATION
Incremental Improvement
– Keeping pace with change and expectation
• MINOR CHANGE
Next Generation
– Competition to define a new level of
performance, tapping into emerging needs
and exceeding expectations.
• NEW MODEL
Breakthrough Improvement
– Changing the rules of the market,
challenging the behaviour of customers
• SUV / Hybrid
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Characteristics of Innovation
Incremental improvement occur continuously in the
organization and lead to minor improvements in products
or process.
– A collection of activities that constitute a process intend to
achieve performance improvement (Jha et al., 1996)
Radical improvement (Innovation) are more long-term and
strategic in focus, and aim to change key capabilities of the
firm, thus creating a new operating paradigm
All organization need both continuous and breakthrough
improvement (Harrington, 1995)
Technological Innovation Process
Research Invent Commercialise Market
Nature Science Technology Economy Utility
Exist Discover Manipulate Embed Use
naturally nature nature nature nature
The World as Material The World as Money
Source : Betz, F. (2011), Managing Technological Innovation : Competitive Advantage from Change, John Wiley & Sons
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INNOVATION
STAGE GATE
IDEAS
PROTOTYPE PILOT PRODUCTION COMMERCIALISATION
CREATIVITY
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CREATIVITY is the process of gathering and generating new ideas.
Being creative is to be able to generate or to come up with ideas.
Creativity is a process, or a thinking process to be exact.
IF IDEAS IS LIKENED TO A SEED, THEN
INNOVATION IS THE PLANT THE RESULTS FROM
PLANTING AND NATURING THE SEED.
INNOVATION can be described as ‘creativity implemented’.
Innovation is putting the idea into practice. Innovation adds value to the idea,
which otherwise remain a mere idea.
CREATIVITY INVENTION INNOVATION
is the capability or is the creation of
is the
act of conceiving something that has
implementation of
something original never been made
some thing new.
or unusual. before and it is
recognized as the
product of some
unique insight.
ENTREPRENEUR
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Creativity has been associated with right brain activity –
holistically, intuitively and emotionally.
Creativity is best achieved by left and right brain thinking by
combining focus and the big picture, analysis and intuition,
logic and emotion.
Six Critical Skills to be INNOVATOR
Personal Mastery
• The ability to explore higher-order thinking (futuristic ideas) beyond one’s present
reality.
Intuition
• The ability to “spontaneously receive” higher-order concepts and ideas.
Mastery of Context
• the ability to envision future paradigms with the least amount of data or information.
Context Integration
• The ability to integrate information from different paradigms into one compatible
higher-order paradigm.
Creative Synthesis
• The ability to synthesize (transform) information into new knowledge.
Hyper-Accelerated Information Processing
• The ability to process (learn) data and information at hyper-accelerated speeds.
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CREATIVE TEAM
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CREATIVE ORGANIZATION
CHANGE HAS only BEEN INITIATED since 1980s
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Co-creation is a form of marketing strategy or business strategy
that emphasises the generation and ongoing realisation of
mutual firm-customer value.
OPEN INNOVATION
“firms commercialize external (as well as) internal ideas
by deploying outside (as well as in-house) path ways to
the market”
Chesbrough, p.36 (2003) Open Innovation : The New Imperative for Creating and Profiting from Technology
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FOUR Ps for CREATIVITY
• Personal
• Psychometric
• Process
• Product
“… people have vase amount of experience and influence,
but are only conscious of a small amount at any time.”
4.3.3 Risk Management
An approach that looks at the whole world view and the process
44
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Risk Definition
“The fundamental feature of risk is that unforeseen
event may happen in the future – or more properly,
uncertain about future events create the risks”.
Why do we need Risk
Management?
The only alternative to risk management is crisis management --- and crisis
management is much more expensive, time consuming and embarrassing.
JAMES LAM, Enterprise Risk Management, Wiley Finance © 2003
Without good risk management practices, government cannot manage its
resources effectively. Risk management means more than preparing for the
worst; it also means taking advantage of opportunities to improve services or
lower costs.
Sheila Fraser, Auditor General of Canada
46
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Basic principles, concepts,
definitions
A risk is ANYTHING that may affect the achievement of an
organization’s objectives.
It is the UNCERTAINTY that surrounds future events and outcomes.
It is the expression of the likelihood and impact of an event with the
potential to influence the achievement of an organization’s
objectives.
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Nokia Vs Ericsson
• Nokia (Finland) is known as telecommunication company that outperform
its competitors in term of supply chain management in the year 2000.
Especially, its main rival – Ericsson (Sweden)
• However, on 17 March 2001. The accident caused by lightening at their
suppliers’ manufacturer – Philips Electronics.
• The manufacturer was on fire and huge amount of Silicon Ship was
damaged.
While Nokia passed the incident with struggle, Ericsson was forced to push
out of the market.
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Nokia’s Event Management System
• 3 days later, Nokia found that there was an insufficient material and further informed that
supplier would send the material 1 month later. Yet Phillips Electronics did not allow any clients
to inspect its manufacturer.
• Nokia then began to check the recovery progress more frequently.
• With lack of confidence that Phillips Electronics could recover shortly, Nokia started to order
branches of Phillips Electronics to hand over material to Nokia first.
• Moreover, Nokia started to deal with other suppliers from Japan and adjusted its products and
make them compatible with new materials.
Ericsson’s Event Management
• The company accepted Phillips Electronics’s agreement of sending material in advance.
• THEN…….. Wait and wait and wait
• Yet, Ericsson decided to cut down the cost by make a long contract with its only supplier – Phillips
Electronics.
• Consequently, Ericsson lost 400 million Euros and had to stop producing mobile phone. While
Nokia continue its production and enjoy the mobile phone market.
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Johnson & Johnson “Tylenol”
• In October of 1982, Tylenol, the leading pain-killer medicine in the United
States at the time, faced a tremendous crisis when seven people in Chicago
were reported dead after taking extra-strength Tylenol capsules. It was
reported that an unknown suspect/s put 65 milligrams of deadly cyanide into
Tylenol capsules, 10,000 more than what is necessary to kill a human.
• The tampering occurred once the product reached the shelves. They were
removed from the shelves, infected with cyanide and returned to the shelves
(Mitchell, 1989). In 1982, Tylenol controlled 37 percent of its market with
revenue of about $1.2 million. Immediately after the cyanide poisonings, its
market share was reduced to seven percent (Mitchell 1989).
• Reputational Risk : The most profitable product
TOYOTA : CAMRY
• The Toyota Camry is one of the best affordable midsized cars on the market
today." -- [Link]
• "Toyota's best-selling Camry became the people's car by excelling in quality
and refinement, but has taken a PR hit after recalls in early 2010. Car and
Driver
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Risk Classification
Business Risk
– Risk in the business environment that could stop corporate
objectives being met
Financial Risk
– Risk to the ability of our initiatives to deliver profit
Operational Risk
– Risks in implementation of strategy
Reputation Risk
– Risks to our reputation which may follow from our activities
Compliance Risk
……Risk Classification
1. Political or Reputational Risk 8. Legal / Compliance Risk
2. Financial Risk 9. Technology Risk
3. Service Delivery or 10. Governance / Organizational
Operational Risk Risk
4. People / HR Risk 11. Privacy Risk
5. Information/Knowledge Risk 12. Security Risk
6. Strategic / Policy Risk 13. Equity Risk
7. Stakeholder Satisfaction / 14. Patient Safety
Public Perception Risk
Slide 56 56
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Risk Elements
Cause Risk Impact
UNCERTAINTY UNCERTAINTY
The Risk
Management
Process
7–58
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Managing Risk
Step 1: Risk Identification
• Generate a list of possible risks through brainstorming,
problem identification and risk profiling.
• Macro risks first, then specific events
Step 2: Risk Assessment
• Scenario analysis for event probability and impact
• Risk assessment matrix
• Failure Mode and Effects Analysis (FMEA)
• Probability analysis
• Semi-quantitative scenario analysis
7–59
Basic Concepts
60
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“The risk identification process must be
comprehensive, as risks that have not been
identified cannot be assessed, and their
emergence at a later time may threaten
the success of the project and cause
unpleasant surprises”.
“The risk identification process must be
comprehensive, as risks that have not been
identified cannot be assessed, and their
emergence at a later time may threaten
the success of the project and cause
unpleasant surprises”.
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Risk Identification- Techniques
Risk Identification Techniques
• Brainstorming
• Interviews
• Check Lists
• Fishbone
• Affinity Diagram
Partial Risk Profile for Product Development Project
7–64
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Managing Risk (cont’d)
Step 3: Risk Response Development
• Mitigating Risk
• Reducing the likelihood an adverse event will occur.
• Reducing impact of adverse event.
• Avoiding Risk
• Changing the project plan to eliminate the risk or condition.
• Transferring Risk
• Paying a premium to pass the risk to another party.
• Requiring Build-Own-Operate-Transfer (BOOT) provisions.
• Retaining Risk
• Making a conscious decision to accept the risk.
7–65
Managing Risk (cont’d)
Step 4: Risk Response Control
• Risk control
• Execution of the risk response strategy
• Monitoring of triggering events
• Initiating contingency plans
• Watching for new risks
• Establishing a Change Management System
• Monitoring, tracking, and reporting risk
• Fostering an open organization environment
• Repeating risk identification/assessment exercises
• Assigning and documenting responsibility for managing risk
7–66
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Keep it simple
67
Business Continuity
4.3.4 Management
68
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What is Business Continuity?
Business continuity processes are designed:
üTo minimise any risk of disruption to services, by building resilience
into internal structures and processes
üTo ensure we can maintain our essential services during disruptions
with different levels of severity
üTo assist staff in the event of an incident and to ensure staff are able to
cope with the disruption
üTo ensure that if a disruption does occur, the main priority will be the
recovery of key services within agreed timeframes
Business Continuity Processes
1. Conduct a ‘Business Impact Analysis’ (BIA)
2. Produce a Business Continuity Plan (BCP)
3. Test and validate the BCP
4. Evaluate the effectiveness of the BCP and amend as
appropriate
5. Review and maintain the BCP on a regular basis
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Definitions
There are three stages to Business Continuity:
1. Risk Reduction 2. Incident 3. Recovery
E.g. Producing a E.g. Activating the E.g. Using and
Business Business closing down the
Continuity Plan Continuity Plan Business
Continuity Plan
Why Bother with Business Continuity?
Incidents do happen!
Examples of some recent Business
Continuity Incidents:
• BT Tunnel Fire
• The terrorist incident at Glasgow
Airport etc [Include examples
relevant to your organisation]
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Effective Business Continuity
Effective Business Continuity is built on seven P’s…
1. Programme – proactively managing the process
2. People – roles & responsibilities, awareness & education
3. Processes – all organisational processes, including ICT
4. Premises – buildings & facilities
5. Providers – supply chain, including outsourcing
6. Profile – brand, image, reputation
7. Performance – benchmarking, evaluation & audit
Source: Business Continuity Institute, 2003
Business Continuity is concerned with:
People Assets Process
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