Out Execute the Competition

Irv Rothman is the president and chief executive officer of HP Financial Services, a wholly owned subsidiary of Hewlett-Packard Company. Prior to joining HP, Rothman was president and chief executive officer of Compaq Financial Services Corporation where he led it from its founding to growth of over $3.7 billion in total assets.

Irv is the author of Out-Executing the Competition.  What I really admire is that Irv is donating all of the royalties he earns on the sale of the book to Room to Read, an organization dedicated to children’s literacy.

 

The best way to out-execute the other guy is to know your customer’s business as well as you know your own. -Irv Rothman

 

Attracting the Right Talent

Much of success in business is about finding and cultivating the right talent.  How did you attract and retain the talent needed to accomplish your goals?

Attracting and retaining the right people starts with a leadership commitment to first develop high performers in-house.  And this has to be more than an annual “talent management” exercise.  It’s an activity that leadership must consistently demonstrate is important by developing people and promoting from within.  This sends key messages to an organization:

1)   Leadership can be trusted to do as they say they will.

2)   Career opportunities exist…. No need to look elsewhere.

3)   Leadership recognizes and acknowledges that outside hires are a 50/50 proposition.

In short, provide an atmosphere where people can learn and achieve advancement based on merit.  Not only will the good people stick around, their hearts will be in it.

 

Developing a Culture of Execution

 

Out-Executing the Competition

Your book title is all about execution.  How do you develop a culture of execution?

A culture of execution starts with devotion to the customer.  Since it is theoretically easier to keep a customer than to find a new one, all messaging and reward systems need to be packaged around a “customer for life” philosophy.  And a pay-for-performance compensation system is a must.  Moreover, it can’t be black box; people need to be clear as to what rewards can be expected from results and behaviors.  Once you’ve got all that organized, creating an environment where people have freedom to act on behalf of the customer is crucial. You can’t have a circumstance where people are bound by the linear strictures of a traditional command and control organization. It not only frustrates your employees, it also makes for dissatisfaction on the part of the people on the other end of the phone.

5 Leadership Traits for High Performance

This is a guest post by Eric Lowitt. Eric is the author of The Collaboration Economy and an advisor to entrepreneurial CEOs worldwide. You can also follow him on Twitter.

Want to Lead Your Company to High Performance? Change How You Lead.

Growing up in the 1980s, I viewed Jack Welch as a model of the ideal CEO.  Tough minded, wildly successful, and more than a touch human, Welch provided inspiration for millions looking to go from rags to riches.  While Jack Welch the man deserves to be revered, his most often cited management mantras require a second look.  Here’s why and what your company should do instead.

Be number one or number two in your market, or exit the business.

Fire the employees in the bottom ten percent of performance every year.

The CEO mandate is to maximize shareholder value.

These three management principles were the core of GE’s management system two decades ago.  A massive number of books were written on GE management practices; hundreds of thousands of business students studied to emulate Welch and his business actions.

The opportunity to connect around a shared purpose is needed more than ever.

Times have changed.  For companies to access resources – environmental and human – they need to provide significant value to the local communities from where these resources come. As a result, companies are no longer able to control their corporate destinies.  Now they must work with these local communities and other stakeholders to access the resources they need to prosper in perpetuity.

So what are the leadership traits these companies’ executives – and any entrepreneur interested in growing her company – need to embrace to outperform their competition today, tomorrow, and in the coming decades?

  1. Seeing your leadership position as a privilege, not a right
  2. Serving as activist-in-chief for your constituents
  3. Operating in a time frame longer than tenure
  4. Believing in and relying on partnerships
  5. Feeding constructive discontent

Seeing your leadership position as a privilege, not a right

Twenty-first-century CEOs are keenly aware that their role comes with great responsibility. Rather than view their remit as “maximize shareholder value,” they realize that it is to serve their stakeholders’ best interests.  As John Replogle, CEO of consumer goods company Seventh Generation explained,

The difference [between CEOs operating with twentieth- versus twenty-first-century mind-sets] starts with how we view our position. Understanding how you view your position as CEO informs where you put your emphasis. I approach my role as CEO as one of privilege, responsibility, and stewardship.

While some CEOs emphasize the creation of shareholder value, my view leads me to emphasize actions and investments that further Seventh Generation’s mission.

Serving as activist-in-chief for your constituents