Table of Contents
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STRONG Companies and the secret of Real Success
F U T U R E
What is your greatest dream? What is your worst nightmare?
You can have the greatest strategy in the world – But what’s the point if you’re travelling in the wrong direction?
There’s a serious, almost invisible new threat to the health of every large corporation and it’s growing rapidly
It can completely destroy your business in less than a week
It’s a hundred times more powerful than globalisation or the internet.. …and will dominate the development of both
It’s highly infectious, and can take out a network of businesses in one attack. Governments are controlled by it, laws are weak against it and most CEOs are unprepared for it.
No book of management strategy adequately addresses it and most employees have never heard of it
It thrives on globalisation, media attention, tribalism, single issue activism and religious fundamentalism. The virus changes shape all the time in response to random events which capture the public imagination
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Cost of Negative Media Coverage
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…at the heart of every one of 20 key challenges is a crisis of
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What was bad is becoming good and what was good is becoming suspect Ways of doing things that have worked for decades are looking old fashioned or immoral while other practices that raised questions are becoming totally acceptable
Huge attention will continue to be focussed on defining values for at least a decade
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Question: Whose values?
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We need a new route-map to the future of success – because even the definition of success is profoundly changing.
What does it all mean for managing the business? The image you have, the products you sell, the slogans that work, managing people, investor relations, market mood? Who will be the winners and losers in the new values world?
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Forget Shareholder Value
He who lives by shareholder value will die by it
Share price is the worst measure of future performance
“Treat all people as greedy and greedy people is all you’ll find”
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Corporate Values
People say values matter
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“Great companies only do great things” – morally right and excellent
“There is more to life than increasing its speed” Mahatma Gandhi 1869-1948
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The greatest value you can add is to other people’s lives
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How does your own company attract, retain and motivate great people – or sell products?? Motivation is Changing
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“I haven’t scratched the surface yet of my real purpose for being here” – Michael Jackson, Singer 1958 -
Talent Famine
œ÷ Talent Famine
œ÷ Talent Famine
It is not enough to pay large salaries, without understanding why people need to work, and what they intend to do with money, and what they wish they were doing instead of working for you.
“The challenge we all face is to create an environment where people can reach their dreams” Jack Welch Former Chairman General Electric
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Two Routes to Same Problem
The Issue is Passion
Passion comes from Purpose but never from Pressure
80% of men and 71% of women are unhappy with the number of hours they work
72% of managers are criticised by family or friends for overwork Institute of Management Survey
38% of BT managers said recently that they would sacrifice promotion to have more home time.
7 out of 10 say Americans today less willing to work hard to get ahead. Princetown Survey 24 June 1999
What’s the point of recruiting great people if you can’t promote them, they don’t want responsibility, and would rather leave than climb your career ladder?
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Over half UK HR directors say employee retention schemes are failing to create loyalty. Half of all workers are looking for a new job
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FTSE 100 CEOs 57% in post < 3 years 25% less than 18 month as of June 2002
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Values are changing because how people feel about life is changing
Motivation is a battle for the heart – not just an appeal to the mind
“We act as though comfort and luxury were the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” Albert Einstein
Connect with the passions people have and they will follow you to the ends of the earth
Challenge: how can we more effectively connect people in the business with the real purpose we have?
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We Need a New Model of Motivation Maslow’s looks so last-century and is limited
Motivation in the Third Millennium
Motivation in the Third Millennium
H¾÷vation in the Third Millennium
There is one driver behind all human behaviour. A four word phrase sums up the reason for everything we do, everything we desire and every path we seek. It explains every breath we take from birth unto death and is the root of our entire being. It is the ultimate marketing slogan and the basis of every mission statement.
ÀZ÷re is one driver behind all human behaviour. A four word phrase sums up the reason for everything we do, everything we desire and every path we seek. It explains every breath we take from birth unto death and is the root of our entire being. It is the ultimate marketing slogan and the basis of every mission statement.
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STRONG Six Faces of Future Values
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“You don’t get out of life what you want. You get out of life what you are.”
Huge pressure to succeed
Only 20% of employees of large organisations have the chance to do what they do best every day – Gallup 1.7m people
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Self–aware and Target Driven Positive Negative
Relationships becoming much more important once again
A rethink about work….
New trend – get a life
59% of UK workers unhappy with their jobs – 28% with long hours
33% of managers say companies don’t do enough to help workers find a balanced life Management Today – 6000 people
33% of all workers earning more than £60,000 have sacrificed family life to do so
56% of UK senior managers are checking into work by phone or e-mail when on holiday
Virtually all women at work say they are worn out with the demands of work and home, which they believe is damaging their health. Majority believe that work is ageing them and complain they feel stressed out most of the time.
Only 2% of women about to give birth want to go back to work full-time. 66% go back for money. 88% want subsidised child-care or nursery but only 8% of companies provide it
Companies which help their staff members juggle home and work lives are rewarded with 'significant' levels of improved performance
Companies need people who are good at relationships. They are the glue holding teams and customer networks together. But those who are good at relationships, who place value on “family”, are often those who get most fed up with corporate culture, and are most easily squeezed out of senior management.
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Relationships Positive Negative
Huge voluntary time commitment to organizations
All organisations are built around purpose and maintaining that sense of purpose is the greatest challenge, for without it, the soul of the organisation will always die
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56% of global companies have not reduced their social responsibility programme spending in the recession – 4% have actually increased spending
Despite predictions, most people live in same area for years
60% of US work for nothing
Ask the people next to you about the work they do (or would like to do) for nothing – you will learn more about them in five minutes than in five years in the same management team Volunteering is a window into the passions of the soul
Organisations and Neighborhood Positive Negative
Most people feel some concern about future of life on earth
Giving money away
Global concerns Positive Negative
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STRONG Corporations and Real Success Afternoon Session
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TASK: explain in three minutes to a ten year old child why your business is so exciting, because of the wonderful way it makes life better for ordinary people - and why yet another company in this industry sector (yours) makes all the difference to people’s daily living How many of your management can do this task well?
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STRONG Corporations and Real Success Afternoon Session
People will only follow you on a journey if they see you’re ahead, are convinced you know the route and if they want to get there too.
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Closing the Credibility Gap with Your Investors, Regulators and Employees
Corporations Leaders
DP÷ Corporations Leaders
“For our country to succeed requires the combined efforts of all of us, in all walks of life. Our achievements so far have shown what can be done when we set aside petty differences and together pursue the common good. “ Mandela
“By working together we can build the country of our dreams.
“That this nation, under God, shall have a new birth of freedom -- and that government of the people, by the people, for the people, shall not perish from the earth.” Lincoln
“Lift your eyes beyond the dangers of today, to the hopes of tomorrow, beyond the freedom merely of this city, or your country, to the advance of freedom everywhere, to the day of peace with justice, beyond yourselves and ourselves to all mankind.” JFK
“After America was attacked (Sept 11) it was as if our entire country looked into a mirror and saw our better selves. We were reminded that we are citizens, with obligations to each other, to our country, and to history. We began to think less of the goods we can accumulate and more of the good we can do…. We want to be a nation that serves goals larger than itself.” President George Bush State of the Union address January 2002
STRONG Corporations and Real Success Afternoon Session
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Better World Campaign – United Nations
yöer World Campaign – United Nations
yöer World Campaign – United Nations
yöer World Campaign – United Nations
Our vehicles are terrific to drive, keep your kids safe, use less gas, are less polluting, and are built in factories which take care of people – all in all we are a great company
Our Ethical Fund is a great investment, with low management charges, protecting your family’s future security, and every dollar works hard in the community, to build a better world
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What does building a better world mean for you?
DP÷ does building a better world mean for you?
DP÷ does building a better world mean for you?
STRONG Corporations and Real Success Afternoon Session
A new understanding of corporate governance, board structure and responsibility, and the roles and duties of senior management in publicly traded firms
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Effective governance is a fundamental requirement of the healthy growth of capitalism
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Large institutional investors have moral responsibility to act as owners and to call boards to account
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STRONG Corporations and Real Success Afternoon Session
Reflections
The digital revolution created the global village and globalisation the rules for trading within, but neither has taught us how 6 billion should live inside such a tiny “cultural space”
The global village has become a lawless global city
DP÷global village has become a lawless global city
DP÷global village has become a lawless global city
DP÷global village has become a lawless global city
DP÷global village has become a lawless global city
DP÷global village has become a lawless global city
DP÷global village has become a lawless global city
DP÷global village has become a lawless global city
DP÷global village has become a lawless global city
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