Leadership Done Right

Brandon W. Jones

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Is Innovation Really Happening?

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Innovation – def. Something new or different introduced. The act of innovating; introduction of new things or methods.  ~www.dictionary.com

Innovation

In business, innovation is really important.  Because it is so important, the word innovation is used all the time.  Electronic companies are innovating new ways to create the electronic devices. Automobile companies are innovating new ways to make a comfortable yet fuel efficient vehicle.  Companies in all sorts of industries are being innovative in their specific processes.  With all that innovation, it is easy to hear people say, “Innovate this…  Innovate that…”

There was an article in the Wall Street Journal yesterday called You Call That Innovation? by Leslie Kwoh.  She talked about how all companies are in the habit of saying “innovation” to the point where innovation is beginning to have no meaning.  In the article, she stated that the word innovation was used “33,528 times in quarterly and annual reports last year.”  She also said that, “255 books [were] published in the last 90 days with ‘innovation’ in the title.”  So is the word innovation being overused? [Read more…] about Is Innovation Really Happening?

Should Leaders Be Paid Based On Performance?

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During the last few months, there have been a number of articles in the news about leaders and their compensation. In March, I did a post about an article that showed statistics stating that CEO compensation increase for new CEOs had only increased by 1.5% in 2011 compared to 11% in 2010. This was significantly down from past years even though their performance had improved and the performance of the company had improved.

I did a post about Carmelo Anthony because he was paid a high salary to help the New York Knicks become a top team and win a championship. The organization has not been as successful as expected since he joined the team and they have paid him a very high salary for results.

Once again there was an article in the news about compensation and performance. The Wall Street Journal article CEOs That Delivered The Most And Least Bang For The Buck by Joann S. Lublin and Dana Mattioli stated, “A Wall Street Journal analysis of compensation data for 300 top U.S. companies assembled by Hay Group found that while pay generally tracked performance last year, some CEOs delivered far more bang for the buck when it came to shareholder returns.”

The article went on to explain that although the results discussed in the March article showed that in many cases the compensation during the last year was equilivalent to performance, there were also companies that didn’t follow suit with compensation based on performance. The article explained the stories of four CEOs that were significantly underpaid or overpaid.  The graphic above shows some of the statistics related to the performance and compensation based on the CEO.

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How To Make It Through The Hard Times By Having A Vision

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Hitachi, the Japanese electronics giant, has been around for 102 years.  Recently they went through one of their worst periods in company history.  During the four year period from 2006 to 2010, Hitachi went through a company depression where the total losses equaled $12.4 billion.  The losses were the worst in company history.  The following two years they posted record profits.  In 2011 alone, they posted a net profit of $4.35 billion.

So why did they go from having record losses to record profits? What happened to make them profitable?  In April 2010, Hiroaki Nakanishi took over as the president of Hitachi.  When he took over, he had been in the company for many years which gave him a lot of experience, but he didn’t adopt the previous leadership culture that led to the problems.  With all his experience, he hadn’t allowed himself to grow into the same mold as all the past executives.  He had a completely different thought process than all the previous leaders.  The article Hitachi President Prods Turnaround in the Wall Street Journal by Daisuke Wakabayashi states:

Hitachi under Mr. Nakanishi has broken away from a plodding, risk-averse style of management, spinning off at breakneck pace its consumer-related operations in mobile phones, computer parts and flat-panel TVs to concentrate on selling big-ticket—and more profitable—power plants, rail lines and water treatment facilities.

While other Japanese electronics firms continue to suffer from losses in consumer products and the punishing impact of the strong yen, Hitachi—Japan’s largest electronics manufacturer—has posted a second year of record profits

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Leadership Succession – Who Will Take Over After Warren Buffett?

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Recently, Warren Buffett announced that he has prostate cancer.  “The disease was detected early, and the 81-year-old Mr. Buffett is otherwise in excellent health. His prognosis is good.”  This diagnosis brought up many questions regarding what will happen to Berkshire Hathaway after Warren Buffett.  Warren Buffett has been at the helm since 1963.

Leadership Succession - Who Will Take Over After Warren Buffett

In the Wall Street Journal article, And Buffett’s Successor Is…, Jason Zweig explained, “But the news brought renewed attention to the question of who ultimately will succeed him. […] He has said the members of Berkshire’s board have chosen a successor whom they know and admire, as well as two backups.”

He went on to explain, “Yet he hasn’t disclosed the successor’s identity—even to the chosen person. Nor would he reveal anything during my brief conversation with him this past week.  Publicly naming his successor wouldn’t just make it hard for Berkshire to change its mind later if circumstances warrant; it would demoralize the two backup choices and make them more prone to poaching by competitors.”

Warren Buffett’s momentary health scare brought to light the importance of having a leadership succession plan.  Do you have a succession plan for your organization?  Do you know who will replace you or the other leaders within your organization once you are gone?

The Why Of Leadership Succession Planning

As leaders, it is very important to set up a leadership succession plan for your organization because it allows you to get the right people in place prior to unforeseen personnel changes.  When people retire, quit, get promoted, or move to another position, a succession plan allows you to have someone ready to take their place.  The leadership succession plan allows you to groom someone to step in when someone leaves by preparing them for the responsibilities of the future position. [Read more…] about Leadership Succession – Who Will Take Over After Warren Buffett?

Are You A Great Leader If Your Organization Fails?

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Are you a great leader if your organization fails to meet expectations? Or if you aren’t meeting your goals, are you a great leader?

Carmelo Anthony and The Knicks

Today, the Wall Street Journal article Anthony: The Biggest (Playoff) Loser talked about Carmelo Anthony and his poor playoff performance. Carmelo Anthony traded to the New York Knicks NBA basketball team to bring a championship to New York.

Are You A Great Leader If Your Organization Fails?

The article states, “But considering the way Anthony’s teams have performed in the postseason, the Knicks would be lucky to even win a game.” It then explained that Anthony has played 50 career playoff games and has a record of 16-34. His winning percentage of .320 is “the worst of any player who has appeared in that many postseason games since 1991-92.” [Read more…] about Are You A Great Leader If Your Organization Fails?

Maintain Employee Morale Through Consistency

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Have you seen companies that struggle where the CEO still gets a huge bonus? What does that do to employee morale?  Is it fair for the leader to get a bonus when the company is struggling? Think about what you do as the leader and how that effects employee morale.

Do you take all the credit for the work of your employees? Do you give yourself the pay increase when your employees do all the work?  When you determine how you compensate your employees and yourself, pay close attention to how your employees and outsiders will perceive your actions.

Maintain Employee Morale Through Consistency

CEO’s During the Recession

There were a number of companies during the first few years of the recession where the CEO’s and other top management received huge bonuses while their employees suffered, and at times were even laid off. This treatment had a major negative impact on the employee morale at those companies. Employees felt their leaders didn’t care about them. They also felt the leader was in it to get as much money as possible without concern for their employees or the company.

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