Friday, May 27, 2016

Paul's Update Special 5/27




Since curiosity and humility go hand-in-hand (you can’t have one without the other since asking questions subjugates oneself to the input of others), let’s look at four ways curiosity fuels leadership:
  • Curiosity fuels competence. To be curious is to have a knowledge gap between what you currently know and what you need to know to be effective. Duplicate efforts or unmet timelines occur when people lack context; when their curiosity goes unanswered because the communication processes are ineffective. Alternatively, sharing information answers people’s questions and fuels their abilities to work. 
  • Curiosity requires confidence. To ask powerful questions there must be a balance between humility and confidence. You must be humble enough to know you don’t have all the answers and confident enough to admit it.
  • Curiosity fuels growth. Stanford University professor and author of Mindset: The New Psychology of Success, Carol Dweck, found that the difference between high and low achievers was what they believed–their mindsets. Specifically, she discovered two groups of people with two different mindsets–fixed and a growth mindsets. 
  • Curiosity builds adaptability. Questioning facilitates dialogue to explore new possibilities, to excavate biases and assumptions taken for granted, flip them on their ugly heads and find a new angle of perspective.
Curiosity serves a strong leadership purpose. Asking “how can we do XYZ better?” is no good without first asking, “Why are we doing XYZ in the first place?”  While being results driven is important, asking the questions—the right questions—ensures you’re on the right track.



General Electric CEO Jeffrey Immelt, in a speech that may signal an end to seven decades of globalization, said his company is making a “bold pivot” in strategy as a response to rising protectionist political pressures.

“In the face of a protectionist global environment, companies must navigate the world on their own,” he said. “We must level the playing field, without government engagement. This requires dramatic transformation.”

As a response, he said, GE “will localize.”

“In the future, sustainable growth will require a local capability inside a global footprint. GE has 420 factories around the world giving us tremendous flexibility,” Immelt said. “We used to have one site to make locomotives; now we have multiple global sites that give us market access. A localization strategy can’t be shut down by protectionist policies.”

Globalization is being blamed for unemployment and wage inequality; there is a general sense that this must be somebody else’s fault; and improving competitiveness is not an option.”

He dismissed political criticisms aimed at his and other global companies, saying “I don’t listen to people who have no global context, never been in a factory or don’t want to compete.”

The full text of the speech is reprinted in the article.



Highly motivated individuals with ambitious goals are always striving to be better, accomplish more, and operate at their peak performance. C-level leaders at top organizations know this better than anyone. That's why they hire executive coach Katia Verresen. In a recent post on First Round Capital, Verresen offered the top tips she shares with leaders to help maximize their performance, even when getting it all done feels impossible.

Verresen's executive coaching strategy focuses on improving her clients' energy, work flow and capacity. She helps her clients develop a mindset she called abundant thinking: "a mindset that gives you the creative agency and grit to reach your vision -- and, on a daily basis, to design your own life,"

Instead of reacting to what's going wrong, Verresen's entire approach centers around proactively curating a positive attitude. Through six simple re-framing exercises, Verresen helps her clients see the possible in the impossible, the positive in the negative and the promising potential in any complex, roller-coaster ride of a far-reaching goal.

  • Notice and observe - Noticing is a choice, and it can open up alternative viewpoints. Instead of devoting all your energy to this one thing, open yourself up to observe other potential angles. Even asking open ended questions can be helpful. Tap into your natural curiosity to expand your knowledge.
  • Adopt a neutral position - If you feel yourself becoming judgey, try to adopt a neutral position where you accept the situation is neither fair or unfair. It just is. If you could be more neutral about the situation, you will be more open to accepting that other forms of thinking or points of view exist.
  • Prime yourself for positivity - Negativity breeds more negativity. If you're feeling particularly negative, there's an easy way to snap out of it: Spend five minutes doing something you already know will boost your mood.
  • Cut yourself some slack - This activity involves walking yourself through three simple steps that allow you to feel some self compassion. First, admit that what you're experiencing is a struggle. Second, acknowledge that you're not the only one who feels -- or has ever felt -- this way. And lastly, determine something you can do right now to make yourself feel better. Focus on self care, even if it's only for a few minutes.
  • Give generously - If you consistently offer your skills or time to others, that generosity will come back to you.
  • Practice gratitude - Don't overlook your past successes. It's worth reveling in them for a few minutes to build up your energy. You've already done amazing things. Harness that energy to charge onwards to do even more.



In a volatile and complex world, predicting the future with precision is a risky business. We can be sure, however, about four global mega-trends that are reshaping the environment and influencing business priorities:

First, diversity of markets: Demand is shifting to emerging markets. With their growing middle class, these new markets represent the single biggest growth opportunity in the portfolio of many companies around the world.

Second, diversity of customers: Customer demographics and attitudes are changing. Empowered through technology and with greater choice, an increasingly diverse customer base expects better personalization of products and services.

Third, diversity of ideas: Digital technology, hyper-connectivity, and deregulation are disrupting business value chains and the nature of consumption and competition. Few would argue against the need for rapid innovation.

Fourth, diversity of talent: Shifts in age profiles, education, and migration flows, along with expectations of equality of opportunity and work/life balance, are all impacting employee populations.

Diversity of markets, customers, ideas, and talent: These simultaneous shifts are the new context. 

The core aspects of leadership, such as setting direction and influencing others, are timeless, but we see a new capability that is vital to the way leadership is executed. We call this inclusive leadership, and our research has identified six traits that characterize an inclusive mind-set and inclusive behavior.

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Four global mega-trends are creating a business context that is far less homogenous and much more diverse than has historically been the case.
  1. The growth in emerging market economies may have slowed—and big challenges abound—but the long-term potential remains significant.
  2. Customers have always been able to vote with their feet. Today, this power is even greater. Empowered through their digital devices and with more choice, customers expect greater personalization and a voice in shaping the products and services they consume.
  3. Organizations must “innovate or die,” extols Bill Gates.13 A bold statement, but we need not look far to see its validity. Seemingly overnight, digital disruption has reshaped whole industries and iconic brands and brought forth new players.
  4. Diversity of talent is at risk of being overshadowed by other shifts. This is because demographic change has a slow-burn effect on workplace profiles. And, of course, diversity of talent is not a new topic. Anti-discrimination laws and the “war for talent” have seen organizations pay attention to historically marginalized groups for some time.

The six signature traits of an inclusive leader:
  • Trait 1: Commitment. Highly inclusive leaders are committed to diversity and inclusion because these objectives align with their personal values and because they believe in the business case.
  • Trait 2: Courage. Highly inclusive leaders speak up and challenge the status quo, and they are humble about their strengths and weaknesses.
  • Trait 3: Cognizance of bias. Highly inclusive leaders are mindful of personal and organizational blind spots, and self-regulate to help ensure “fair play.”
  • Trait 4: Curiosity. Highly inclusive leaders have an open mindset, a desire to understand how others view and experience the world, and a tolerance for ambiguity.
  • Trait 5: Culturally intelligent. Highly inclusive leaders are confident and effective in cross-cultural interactions.
  • Trait 6: Collaborative. Highly inclusive leaders empower individuals as well as create and leverage the thinking of diverse groups. 

The six signature traits of an inclusive leader have important implications for how organizations select and develop leaders. Below, we provide some possible actions to help organizations develop inclusive leadership capabilities and build a culture of inclusion.

Strategic alignment 

  • Highlight inclusive leadership as a core pillar within the organization’s diversity and inclusion strategy.
  • Articulate a compelling narrative as to why inclusive leadership is critical to business success.
  • Make symbolic workplace changes to signify the importance of inclusive leadership.

Recruitment 

  • Ensure that job advertisements emphasize inclusive leadership capabilities and the organization’s commitment to diversity and inclusion.
  • Incorporate inclusion into behavioral interview questions. 

Capability and competency management 

  • Integrate inclusive leadership capabilities into the organization’s leadership competency model.

Performance management 

  • Link KPIs to inclusive behaviors and diversity and inclusion outcomes. 
  • Ensure that those appointed to senior-level positions embody inclusive leadership or demonstrate a genuine commitment to developing the capability for inclusive leadership.
  • Hold leaders to account for noninclusive behaviors.

Rewards and recognition 

  • Reward leaders who role-model inclusive behaviors.
  • Showcase highly inclusive leaders across the organization as well as the benefits derived from their inclusive behavior.

Leadership development 

  • Formally assess inclusive leadership capabilities across senior leaders and people managers. Identify individual and organizational developmental gaps and create development plans.
  • Encourage leaders to seek informal feedback from others on their capability for inclusive leadership.
  • Integrate development of the six signature traits of inclusive leadership into leadership development programs.

System integration 

  • Integrate inclusive leadership into the organization’s global mobility strategy in order to help assess participant readiness and to develop current and future leaders.
  • Consider how inclusive leadership fit within the organization’s innovation strategy and processes.








Friday, May 20, 2016

Paul's Update Special 5/20




In order to put sharp edges around what is often considered a soft area, we divided leadership and talent management capabilities into six categories:
  • Strategy: Planning leadership and talent needs over the short- and long-term, in line with the strategy and aspirations of the company; developing initiatives to meet those needs and tracking and measuring the initiatives
  • Leadership and Talent Model: Defining clear leadership competencies specific to the company’s strategy and culture, and embedding those competencies in selection, development, promotion, and reward processes
  • Talent Sourcing: Finding leaders and talent, both internally and externally; tailoring employer branding to specific talent pools; managing and developing successors effectively
  • People Development: Systematically nurturing people by providing comprehensive and structured development opportunities, training, and tools
  • Engagement: Fostering meritocracy and engagement throughout the company, especially among leaders and top talent
  • Culture: Requiring top leaders to take responsibility for leadership and talent management by adhering to corporate values

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Companies with strong capabilities in leadership and talent management outperform those with weaker capabilities.

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 The GLTI gives companies a structured step-by-step approach to developing stronger leaders, improving their overall talent profile—and ultimately their business performance and chances of success in strategy, transformation, and change.





A new report from PayScale, a provider of on-demand compensation data and software, in partnership with Future Workplace, an executive development firm, reveals that while 87% of recent graduates feel well prepared to hit the ground running after earning their diplomas, only half of hiring managers agree with them. This isn’t totally surprising, as Fast Company reported that the class of 2016 is overwhelmingly optimistic about their prospects for getting a job within their field of study. Unfortunately, recent studies reveal that underemployment was the reality for more than half (51%) of those who graduated in the past two years.

Some of the skills hiring managers find lacking or absent are unexpected. Critical thinking, problem solving, attention to detail, and writing proficiency top the list of skills managers find missing from job seekers’ personal tool kits. Overall, hiring managers found soft skills such as communication, leadership, ownership, and teamwork were missing in this new crop of workers. The following chart shows the percentage of hiring managers who reported the lack of specific skills.

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It’s important to note here that age matters in this report. Fifty-five percent of managers who are millennials themselves believed graduates are prepared to enter the workforce versus 47% of gen Xers and 48% of boomers.



Blockchain. Originally the formal name of the tracking database underlying the digital currency bitcoin, the term is now used broadly to refer to any distributed electronic ledger that uses software algorithms to record transactions with reliability and anonymity. This technology is also sometimes referred to as distributed ledgers (its more generic name), cryptocurrencies (the electronic currencies that first engendered it), bitcoin (the most prominent of those cryptocurrencies), and decentralized verification (the key differentiating attribute of this type of system).

At its heart, blockchain is a self-sustaining, peer-to-peer database technology for managing and recording transactions with no central bank or clearinghouse involvement. Because blockchain verification is handled through algorithms and consensus among multiple computers, the system is presumed immune to tampering, fraud, or political control. It is designed to protect against domination of the network by any single computer or group of computers. Participants are relatively anonymous, identified only by pseudonyms, and every transaction can be relied upon. Moreover, because every core transaction is processed just once, in one shared electronic ledger, blockchain reduces the redundancy and delays that exist in today’s banking system.

Some farsighted banks are already exploring how blockchain might transform their approaches to trading and settling, back-office operations, and investment and capital assets management. 

Proceed deliberately. Don’t try to convert existing systems to blockchain initiatives right away. Rather, explore how others might try to disrupt your business with distributed ledger technology, and how your company could use it to leap ahead instead. Put one or two pilot projects into place. In all cases, link your investments to your value proposition, and give your business partners and your customers what they want most: speed, convenience, and control over their transactions. Develop a robust strategy, one in which your company thrives whether blockchain is transformative or not.

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In fact, this technology could affect a wide range of offerings and practices in financial services:

  • Greater access to financial services in emerging economies.
  • Improved bookkeeping. 
  • More flexible reserves management.
  • More efficient regulatory compliance.
  • Improvements in common business functions.
  • More startups in the distributed ledger domain.
Four Steps to a Blockchain-Enabled Strategy
  1. Step 1: Find specific opportunities.
  2. Step 2: Explore feasibility and readiness.
  3. Step 3: Put your prototypes to work.
  4. Step 4: Scale your efforts appropriately. 

Your challenge is to understand the technology well enough, and rapidly enough, to bet a bit of your future on it — without putting your entire enterprise at risk.