toby elwin, ford, mulally, blog

Fistful of beans 03/09/2011

5 things I’ve seen, read, or thought might seed results:

1. Keeping CEOs in Check — Human Resource Executive

A recent study, “Dominant CEO, Deviant Strategy and Extreme Performance: The Moderating Role of a Powerful Board,”  published in the February edition of the Journal of Management Studies finds:  strong CEO at the helm shouldn’t underestimate the importance of having a strong board of directors to help counterbalance that leader.

Good boards are always challenging their CEOs to make sure they’re aligned with the business’ goals.  Powerful boards weaken the extreme tendencies of dominant CEOs. “Powerful boards are more apt to restrain unsound than sound strategic deviance … and [therefore] curb many harmful tendencies of CEOs,” the researchers write.

2. When stars go cuckoo — The Economist

John Galliano, Charlie Sheen, Mel Gibson, Why do people who live such enviable lives—being paid millions to do what they love—act so outrageously? Drink and drugs clearly play an important part. But celebrity can be an even more powerful drug than cocaine. It encourages people to push the limits: the more scandalous they are the more they attract the attention of the paparazzi.

Creative industries are driven by their stars. These industries also feed on the buzz that bad behaviour generates.  How should creative companies deal with stars’ bizarre behaviour?  Hollywood and the fashion industry have reason to abandon assets who become liabilities: there is always more talent to replace them.

The Happiest Man in Detroit — Bloomberg Businessweek

A look at what the former Boeing executive Alan Mulally changed when he came to Detroit to take over as Chief Executive Officer with Ford.

telwin toby elwin tobyelwin amajorc ford mulally

At Ford Mulally did not simply avoid government bailout or bankruptcy, he took quickly built Ford into the world’s most profitable automaker.  A great read on the case for and against industry inertia as well as who Mulally draws daily inspiration from.

Where Jack Welch Got It Wrong – The Mandatory, Annual Low-Performer Cut — Global Organization Design Society

Jack Welch believed, “If you’ve got 16 employees, at least two are turkeys.”   From this belief flowed talent management systems at GE and the controversial practice of cutting the bottom performing 10% of employees annually.

Organization systems telegraph values and drive behavior.  In addition to, “two in 16 employees are turkeys,” what does a practice of annually cutting the bottom 10% of employees telegraph to your and drive what is most important to your organization?  Within this article is a case to design your system differently.

Talent Edge 2020 – Blueprints for the new normal — Deloitte Consulting

Toby Elwin, Deloitte Consulting, survey, talent

with talent that looks like this who can stop you?

High unemployment rates have not created the talent surplus as predicted, but a talent shortage.  A Deloitte Consulting study polled 300 global business executives across industry to look at the new normal for talent management studies.  Highlights of the study include:  Companies are increasingly challenged to develop the next generation of leaders.

The race for talent is global.

“World Class” talent leaders are pursuing a different agenda.

Companies with retention plans in place are moving beyond anxiety and taking action

Share your thoughts on these thoughts…

 

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