The leadership journey

It isn't always easy to change leadership hats or to alter the way you assess a business problem. Under pressure, most executives fall back on the management style or approach that worked in the last crisis they faced. But old approaches rarely work in new and demanding situations. Just ask Leonard Schaeffer, chairman and CEO of WellPoint Health Networks, one of the country's largest and most successful managed-care companies. In this account, he describes how he consciously adopted three very different styles of leadership at critical points during his 30-year career, depending on the business challenges at hand. Schaeffer headed up the U.S. Health Care Finance Administration during the Carter years--and led the charge toward more efficient work practices at that agency. Then he transformed Blue Cross of California from a floundering bureaucracy losing close to $1 million each day into a strong public company, WellPoint. The dire circumstances at Blue Cross had dictated that Schaeffer initially be an autocratic leader, which he considers the managerial equivalent of being an emergency room surgeon--forced to do whatever it takes to save a patient's life. But as the company rebounded, the CEO shed that "any decision is better than no decision" style. He has become a participative, hands-off leader-setting strategies and goals from above but letting WellPoint's line managers and executives figure out how best to achieve those goals. Most recently, Schaeffer has turned into a reformer--a leader who works with one foot outside the company to spur changes in health care and society. There are pitfalls in switching leadership styles, Schaeffer admits, but this flexibility is necessary for realizing corporate- and personal-success.     

The work of leadership

More and more companies today are facing adaptive challenges: changes in societies, markets, and technology around the globe are forcing them to clarify their values, develop new strategies, and learn new ways of operating. And the most important task for leaders in the face of such challenges is mobilizing people throughout the organization to do adaptive work. Yet for many senior executives, providing such leadership is difficult. Why? One reason is that they are accustomed to solving problems themselves. Another is that adaptive change is distressing for the people going through it. They need to take on new roles, relationships, values, and approaches to work. Many employees are ambivalent about the sacrifices required of them and look to senior executives to take problems off their shoulders. But both sets of expectations have to be unlearned. Rather than providing answers, leaders have to ask tough questions. Rather than protecting people from outside threats, leaders should let the pinch of reality stimulate them to adapt. Instead of orienting people to their current roles, leaders must disorient them so that new relationships can develop. Instead of quelling conflict, leaders should draw the issues out. Instead of maintaining norms, leaders must challenge "the way we do business" and help others distinguish immutable values from the historical practices that have become obsolete. The authors offer six principles for leading adaptive work: "getting on the balcony," identifying the adaptive challenge, regulating distress, maintaining disciplined attention, giving the work back to people, and protecting voices of leadership from below.     

The CEO's second act

When a CEO leaves because of performance problems, the company typically recruits someone thought to be better equipped to fix what the departing executive couldn't--or wouldn't. The board places its confidence in the new person because of the present dilemma's similarity to some previous challenge that he or she dealt with successfully. But familiar problems are inevitably succeeded by less familiar ones, for which the specially selected CEO is not quite so qualified. More often than not, the experiences, skills, and temperament that yielded triumph in Act I turn out to be unequal to Act II's difficulties. In fact, the approaches that worked so brilliantly in Act I may be the very opposite of what is needed in Act II. The CEO has four choices: refuse to change, in which case he or she will be replaced; realize that the next act requires new skills and learn them; downsize or circumscribe his or her role to compensate for deficiencies; or line up a successor who is qualified to fill a role to which the incumbent's skills and interests are no longer suited. Hewlett-Packard's Carly Fiorina exemplifies the first alternative; Merrill Lynch's Stanley O'Neal the second; Google's Sergey Brin and Larry Page the third; and Quest Diagnostics' Ken Freeman the fourth. All but the first option are reasonable responses to the challenges presented in the second acts of most CEOs' tenures. And all but the first require a power of observation, a propensity for introspection, and a strain of humility that are rare in the ranks of the very people who need those qualities most. There are four essential steps executives can take to discern that they have entered new territory and to respond accordingly: recognition that their leadership style and approach are no longer working; acceptance of others' advice on why performance is faltering; analysis and understanding of the nature of the Act II shift; and, finally, decision and action.     

The ultimate creativity machine. How BMW turns art into profit

Many companies face the challenge of balancing art with commerce. The conflict between corporate pragmatism and artistic passion and quality is persistent: designers chafe under corporate requirements, budgets, and deadlines, and nondesigners struggle to understand the business value of artistic choices. At German carmaker BMW, the fanaticism about design excellence is matched only by the company's driving desire to remain profitable. Global design director Chris Bangle presides over the intersection of art and commerce at BMW, managing the often-strained relationships among the designers, engineers, and business managers. Bangle goes to great lengths to protect his designers from the unproductive commentary of others in the company, literally posting "Stop: No Entry" signs on the design studio doors. He also protects the design process, making sure that time-to-market pressures do not harm the designs by shifting the focus to engineering too soon. As a mediator, Bangle appeals to the core values of the company and a deeply held sense about BMW-ness--a pride of product shared by everyone in the company that expresses itself in the classic quality of the cars. Every employee, designer and nondesigner alike, understands that if a car doesn't meet this standard of excellence, it's simply not a BMW--and customers won't buy it. Managing at the intersection of art and commerce means translating the language of art into the language of the corporation. In this First Person account, the author describes his inventive techniques for getting the best from his artists--and getting his ideas across to corporate managers.     

Level 5 leadership. The triumph of humility and fierce resolve

Boards of directors typically believe that transforming a company from merely good to truly great requires a larger-than-life personality--an egocentric chief to lead the corporate charge. Think "Chainsaw" Al Dunlap or Lee Iacocca. In fact, that's not the case, says author and leadership expert Jim Collins. The essential ingredient for taking a company to greatness is having a "Level 5" leader at the helm--an executive in whom extreme personal humility blends paradoxically with intense professional will. Collins paints a compelling and counter-intuitive portrait of the skills and personality traits necessary for effective leadership. He identifies the characteristics common to Level 5 leaders: humility, will, ferocious resolve, and the tendency to give credit to others while assigning blame to themselves. Collins fleshes out his Level 5 theory by telling colorful tales about 11 such leaders from recent business history. He contrasts the turnaround successes of outwardly humble, even shy, executives like Gillette's Colman M. Mockler and Kimberly-Clark's Darwin E. Smith with those of larger-than-life business leaders like Dunlap and Iacocca, who courted personal celebrity. The jury is still out on how to cultivate Level 5 leaders and whether it's even possible to do so, Collins admits. Some leaders have the Level 5 seed within; some don't. But Collins suggests using the findings from his research to strive for Level 5--for instance, getting the right people on board and creating a culture of discipline. "Our own lives and all that we touch will be better for the effort," he concludes.     

The new psychology of strategic leadership

Firms in an industry typically cluster around a few strategic positions, and the intense competition on those occupied "mountaintops" makes it hard for firms to gain attractive returns. Superior opportunities lie on unoccupied mountaintops. Yet because those opportunities are "cognitively distant"--far from the status quo--strategists have trouble recognizing and acting on them. Competition, therefore, is weak. Most managers are trained to analyze economic forces when they want to identify new opportunities. But that approach usually won't uncover the kinds of ideas that overturn the status quo. Recent research on human cognition suggests that leaders would do better to use associative thinking to spot, act on, and legitimize distant opportunities. They should learn to make analogies with businesses in other industries, for example. For example, Charles Merrill launched an extraordinarily successful business when he reimagined banking as a "financial supermarket." This article explores ways to jump-start associational thinking--and to bring stakeholders along on the journey.     

The real leadership lessons of Steve Jobs

The author, whose biography of Steve Jobs was an instant best seller after the Apple CEO's death in October 2011, sets out here to correct what he perceives as an undue fixation by many commentators on the rough edges of Jobs's personality. That personality was integral to his way of doing business, Isaacson writes, but the real lessons from Steve Jobs come from what he actually accomplished. He built the world's most valuable company, and along the way he helped to transform a number of industries: personal computing, animated movies, music, phones, tablet computing, retail stores, and digital publishing. In this essay Isaacson describes the 14 imperatives behind Jobs's approach: focus; simplify; take responsibility end to end; when behind, leapfrog; put products before profits; don't be a slave to focus groups; bend reality; impute; push for perfection; know both the big picture and the details; tolerate only "A" players; engage face-to-face; combine the humanities with the sciences; and "stay hungry, stay foolish."     

The future of leadership: reframing the unknown

Accepting the arguments of Donald Michael's article, this essay focuses on the need to understand patterns of denial and affirmation as they affect efforts at consensus formation. Leadership is presented as an interface role, orchestrating the exposure to light and shadow, between that which can be communicated (to followers) and that which cannot. The challenge for leadership is portrayed as one of navigating through shifting patterns of affirmation and denial. This challenge is represented in terms of four zones ranging from simple consensus, through situations undermined by unwritten rules, to a zone in which neither assertion nor denial is relevant. The latter is seen as more typical of Eastern approaches to governance. It is argued that complementary patterns of affirmation and denial are essential to the processes of sustainable communities.     

Crucibles of leadership

What makes a great leader? Why do some people appear to know instinctively how to inspire employees--bringing out their confidence, loyalty, and dedication--while others flounder again and again? No simple formula can explain how great leaders come to be, but Bennis and Thomas believe it has something to do with the ways people handle adversity. The authors' recent research suggests that one of the most reliable indicators and predictors of true leadership is the ability to learn from even the most negative experiences. An extraordinary leader is a kind of phoenix rising from the ashes of adversity stronger and more committed than ever. In interviewing more than 40 leaders in business and the public sector over the past three years, the authors discovered that all of them--young and old alike--had endured intense, often traumatic, experiences that transformed them and became the source of their distinctive leadership abilities. Bennis and Thomas call these shaping experiences "crucibles," after the vessels medieval alchemists used in their attempts to turn base metals into gold. For the interviewees, their crucibles were the points at which they were forced to question who they were and what was important to them. These experiences made them stronger and more confident and changed their sense of purpose in some fundamental way. Through a variety of examples, the authors explore the idea of the crucible in detail. They also reveal that great leaders possess four essential skills, the most critical of which is "adaptive capacity"--an almost magical ability to transcend adversity and emerge stronger than before.     

Thinking about ... leadership. Warts and all

Does using Tyco's funds to purchase a $6,000 shower curtain and a $15,000 dog-shaped umbrella stand make Dennis Kozlowski a bad leader? Is Martha Stewart's career any less instructive because she may have sold some shares on the basis of a tip-off? Is leadership synonymous with moral leadership? Before 1970, the answer from most leadership theorists would certainly have been no. Look at Hitler, Stalin, Pol Pot, Mao Tsetung--great leaders all, but hardly good men. In fact, capricious, murderous, high-handed, corrupt, and evil leaders are effective and commonplace. Machiavelli celebrated them; the U.S. constitution built in safeguards against them. Everywhere, power goes hand in hand with corruption--everywhere, that is, except in the literature of business leadership. To read Tom Peters, Jay Conger, John Kotter, and most of their colleagues, leaders are, as Warren Bennis puts it, individuals who create shared meaning, have a distinctive voice, have the capacity to adapt, and have integrity. According to today's business literature, to be a leader is, by definition, to be benevolent. But leadership is not a moral concept, and it is high time we acknowledge that fact. We have as much to learn from those we would regard as bad examples as we do from the far fewer good examples we're presented with these days. Leaders are like the rest of us: trustworthy and deceitful, cowardly and brave, greedy and generous. To assume that all good leaders are good people is to be willfully blind to the reality of the human condition, and it severely limits our ability to become better leaders. Worse, it may cause senior executives to think that, because they are leaders, they are never deceitful, cowardly, or greedy. That way lies disaster.     

投资智能投顾的判断与分析

中国金融40人论坛常务理事、北京资配易投资顾问有限公司董事长张家林: 智能投顾成为未来发展大势的四方面原因 第一,监管部门对金融市场特别强调的就是信息披露,不管是要求上市公司还是发行证券,核心使命都是让其充分披露信息.以前的股票市场或者证券市场只有几十只股票,信息量不多,可以处理.但是随着资本市场的规模扩大,全球的股票、证券加起来上万只,对应的就是信息披露后带来的海量数据,海量数据让投资人的负担越来越重.     

7 transformations of leadership

Most developmental psychologists agree that what differentiates one leader from another is not so much philosophy of leadership, personality, or style of management. Rather, it's internal "action logic"--how a leader interprets the surroundings and reacts when his or her power or safety is challenged. Relatively few leaders, however, try to understand their action logic, and fewer still have explored the possibility of changing it. They should, because leaders who undertake this voyage of personal understanding and development can transform not only their own capabilities but also those of their companies. The authors draw on 25 years of consulting experience and collaboration with psychologist Susanne Cook-Greuter to present a typology of leadership based on the way managers personally make sense of the world around them. Rooke and Torbert classify leaders into seven distinct actionlogic categories: Opportunists, Diplomats, Experts, Achievers, Individualists, Strategists, and Alchemists-the first three associated with below-average performance, the latter four with medium to high performance. These leadership styles are not fixed, the authors say, and executives who are willing to work at developing themselves and becoming more self-aware can almost certainly move toward one of the more effective action logics. A Diplomat, for instance, can succeed through hard work and self-reflection at transforming himself into a Strategist. Few people may become Alchemists, but many will have the desire and potential to become Individualists and Strategists. Corporations that help their executives and leadership teams to examine their action logics can reap rich rewards.     

财务领导力的价值观

罗伯特·卡普兰：哈佛商学院贝克基金会教席教授,会计与管理教研组成员;卡普兰是营运成本和平衡计分卡的共同开发者,卡普兰在麻省理工学院取得电器工程学士和硕士学位,并在康耐尔大学取得营运研究博士学位,被称为平衡计分卡之父。     

金融创新:信息化的终极目标

一场山雨欲来的经济全球化暨金融全球化风暴,给中国金融业的改革提出了完善金融功能、降低金融风险、参与国际金融竞争的课题.事实上,国内金融业参与国际化竞争的道路就是充分吸收国外银行业先进的经营理念和业务流程,并结合我国实际情况,不断推进完善治理结构和实践金融创新的改革进程.加强业务创新能力是国内金融业生存与发展的内在要求,从一定意义上讲,金融创新是永无止境的,无异于金融信息化建设的终极目标.     

The effect of conference calls on equity incentives: An empirical investigation

Conference calls have become increasingly common in recent years, yet there is little empirical evidence regarding the effect of conference calls on executive compensation. In this study, we examine the effect of voluntary disclosures on equity incentives. We hypothesize that voluntary disclosures, as measured by conference calls, affect executive compensation contracts. Using a dataset of 6263 firm-year observations from both conference call and non-conference call firms, our results are consistent with the argument that the board of directors substitutes voluntary disclosures for more costly corporate governance mechanisms. Alternatively, in firms where CEOs have less equity incentives, the owners demand more voluntary disclosures. The results of this study should be of great importance to executives and capital market participants internationally, such as investors and analysts, since we provide evidence that conference calls affect incentive based compensation contracts, which were shown in prior studies to be value relevant.     

The Sarbanes-Oxley act and corporate investment: A structural assessment

We assess the impact of the Sarbanes-Oxley Act of 2002 on corporate investment in an investment Euler equation framework. We allow a dummy for the passage of the Act to affect the rate at which managers discount future investment payoffs. Using generalized method of moments estimators, we find that the rate U.S. firm managers apply to discount investment projects rises significantly after 2002, while the discount rate for U.K. firms remains unchanged. The effects of the legislation on corporate investment are asymmetric, and are much more significant among relatively small firms. We also find that well-governed firms, firms with a credit rating, and accelerated filers of Section 404 of the Act have become more cautious about investment.