Vistage CEO Session

Insights on Scaling & Growing Your Business to be Best in the World

Scaling, Growth & Talent

Roshan Thiran

roshan.thiran@leaderonomics.com

www.facebook.com/roshanthiran.leaderonomics

www.linkedin.com/in/

Are the “world’s best” leaders

born or developed? Is

leadership genetic or learned?

Question

Gro

wth

Time

My “Best in the World” Experience

10. Johnson & JohnsonIndustry : HealthcareFunction: HRGlobal Role

9. GE Asia PacificIndustry : MultiFunction: HRAsia Role

7. GE AircraftIndustry : AviationCFO & Biz Leader

8. GE CrotonvilleIndustry : MultiFunction: HRLearning Leader

6. GE CIGIndustry : MultiFunction: ITProject Mgmt Global

5. GE CapitalIndustry : Financial ServiceFunction: Finance/SourcingEurope Leader

4. NBC UniversalIndustry : MediaFunction: FinanceProduct Leader

1. GE InvestmentsIndustry : Investment BankingFunction: Business DevIndividual Contributor

3. GE GCSIndustry : Oil & GasFunction: FinanceInventory Mgmt

2. GE InternationalIndustry : MultiFunction: FinanceAnalyst Global

12. LeaderonomicsIndustry : MultiFunction: CEOBusiness leader

11. Star Media GroupIndustry : MediaFunction: CEOBusiness leader

Key question: How did they become the best?

So, what does this mean?

Clearly, because of high performance leadership

Question: What is Leadership?

Leadership is . . .AttentivenessAssertivenessResponsibilityDiligence Dependability

Obedience

Loyalty ThoroughnessTruthfulness InitiativeHospitality

Humility

Forgiveness Tolerance

CompassionSincerity

CReativity

Having followersPersuasiveness Virtue

VisionDeference

DiscretionBOLDNESS

Determination Gratefulness Self-ControlSensitivity

ThriftinessGenerosity Punctuality

Proactiviness

Purpose

Enthusiasm

Availability

OrderlinessResourcefulness

Flexibility

WisdompedInnovation

Execution

If we invested in people and

taught every single skill listed on

the previous slide, would we be

able to “create” leaders?

Question

motherteresaHer story in India

Transformation

Above all,

a leader must be _________.

Transformation

Above all,

a leader must be

clear.

Time

Current Reality – Self AwarenessAb

ilit

y/A

ch

ieve

me

nt

Decision-making

GAP

Purpose/Vision

The Essence of Leadership is . . .

Learning/

Execution/

Action

GAP

Clarity of Goal

Clarity of Where We Are

Clarity of The Plan

What is stopping us from scaling and growing in the best in the world?.

OrganisationalConstraints

Individual Constraints

There are 2 ‘terrible’ constraintsstopping us from becoming best in the world:

70% of all Change or Transformation programs

Our research on Change has the following findings on transformation projects:

• 100% of all “Successful” projects had a good technical solution/approach to it

• 98% of all “Unsuccessful” projects had a good technical solution/approach to it

So, why do companies FAIL?

QUESTION ?

My Research on Organisational ConstraintsTHE 4 CONSTRAINTS SUFFOCATING MOST ORGANISATIONS

Note: The 4 constraints model is based on the work of

Roshan Thiran who spent more than 20 years studying

various successful and failed organisations. The model is

copyrighted to him and has been used in many successful

organisational growth, transformation and scaling projects

Jack

Welch

… and Six Sigma at NBC

New York city in 90s …

The broken window theory

Culture Drives Results . . .

MINDSET

Model extracted from The Results Pyramid® PIL

22

GE’s Transformation under Jack Welch1981 2000

$27.2B1.6B

404,000

9 - 11

1 - 2%

$130 B12.9B

• Revenues• Net Income

• Businesses

• Worldwide Employment

• Management Layers

• Productivity

- 45 Businesses- 350 Product Lines- 2 Global Bus.

• Divested 30% of ‘80 Sales• Invested $21B in

Acquisitions

• 20+% Avg. Annual Yield for Shareholders

• Net result of Acquisitions/ Divestitures/Rationalizations

• Reshaping the Decision Making Process

• Six Sigma• Work-Out• Best Practices• Boundaryless Behavior

- 11 Unique Businesses

- All Global

270,000

4 - 5

8.5%

Extracted from GE Field Book by Robert Slater

History of Transformation under Jack

Biz Model, Structure, Culture & Leadership all required for success

Biz Model & Structural Revolution

Fix, Sell, Close

• 350 Business Units• 400 000 Employees• US - based• Stagnant stock price• Bureaucratic

Cultural & Leadership Revolution

Speed, Simplicity, Self Confidence

• 20 core business• 276 000 Employees• Global – 42% revenues int’l• Double digit growth• “Boundaryless”

The 80’s

The 90’s

Extracted from GE Case Study – Harvard Business School Case

Time

^ New Product IntroductionQuick Market IntelligenceOrder to RemittanceSupplier Partnership Extracted from GE Field Book by Robert Slater

Work-Out / Town Meetings/Action Workout:Belief: empowerment, bureaucracy busting, action vs wait for boss for instructions

“Copy Shamelessly” Initiative: QMI, NPI, SP, OTRBelief: looking outside GE vs all great ideas are in GE

Bullet Train:Belief: continuous improvement vs improve when requested

Change Acceleration Process:Belief: Change can be fast and successful vs slow & painful

Globalisation Strategic Initiatives:Belief: The world is our market vs US is our market

Making Customers Winners:Belief: Customers are key vs customers are a pain

Six Sigma QualityBelief: Data driven decisions vs gut-feel

DigitizationBelief: Value People vs People are dispensable

high

low

IntensityofChange

Innovation

Stages of Jack’s Culture & Leadership Change

“For performance to go any higher, the limitation is not competency,

…it is culture.”

Joseph TanCEO, Leaderonomics Good Monday

Part 1 – Destroy yourself first (leadership)

• Are you the right leader to scale your organization?

• Do you have the right skills to lead the organization into this new era?

• Do you have “beliefs” about

the way the organization

should be run that will hold

you back from scaling?

• You have to UNLEARN

everything and RELEARN

everything

CORPORATE SERVICESTrusted talent growth partner of companies

from multiple industries

COMMUNITYLeadership development for kids, youth,

university students and NGOs

MEDIAEngaging content in text, audio and video and

interactive mediums

Part 2 – Destroy Your Biz Model1. Move from “Pharmacy” to “Hospital”

2. Build Digital business to DESTROY our core business

Red Ocean

CUSTOMER VALUE PROPOSITIONWhat did we change?

Product selling(‘Pharmaceutical

company’)

Diagnosis(‘Hospital’)

99.9% of

training/learning

organisations

Blue Ocean

Part 3 – Eliminate Old “Processes” and structures and create new ones for scale

1. Revamped entire value chain – 1 person per account to scalable processes with center of expertise in each area

2. Create digital infrastructure and leverage technology for consistent processes

New structure in

Corporate Services

to improve

efficiency and

agility in customer

service, and quality

of delivery

Customer team

Deep diagnosis and data analysis to optimise solutions

Design & Impact team

Designing and executing impactful learning experiences

Content team

Developing world-class content

Rethinking Corporate Services

PROCESSES/STRUCTURETo scale current Corporate Services offerings to 10x levels

Brand Content

COEs for functions –

Finance & IT

Product management

Team to own and

lead enterprise-

level initiatives to

eliminate

duplication of

efforts in divisions

Setting up Enterprise

PROCESSES/STRUCTUREOverall organisational synergies and leverage

Building infrastructure to support BD and client servicing

1. Back-end customer management

• Track data, monitor execution and produce reports for greater sales efficiency, customer intimacy and incentive for customers to lock in long-term

2. Front-end engagement

• Designing new customer centric platforms to lead potential customers from discovery stage to engaging Leaderonomics for products and services

TECHNOLOGY INFRASTRUCTURECustomer happiness systems

Part 4 – Create “New Culture”

Beyond

Expectations

Top

Leadership

Authority

in 5 Countries

Set up in 5

Countries(Thailand, Cambodia, PNG,

Philippines, Indonesia)

100k Reach

100m Views

Our R2To achieve by 2019

Our Key Result AreasTo achieve by 31 December 2015

Revenue: xx Income: xx

Be A Leaderonomer

10 T1 NPS >8.5

PDP

Our Cultural Beliefs

• I actively seek out and lead collaborative opportunities

Be Synergistic

• I take personal ownership to deliver on all expectations entrusted to me

Be Accountable

• I am open to honest and authentic conversations and feedback

Be Courageous

• I find opportunity in all circumstances and will adapt myself to thrive in them

Be Agile

• I accept challenges and exceed expectations in all that I do

Be Excellent

Our Experiential ‘Rituals’

• Weekly customer synergy session (CSS).

Be Synergistic

• 5 crucial conversations a year. Be Accountable

• Monthly ‘courageous conversations’. Be Courageous

• “Going Beyond” Projects. Be Agile

• “Going Beyond” AwardsBe Excellent

OrganisationalConstraints

Individual Constraints

Let’s go back to the 2 constraints stopping you:

Personal ConstraintsWhat are these constraints stopping you from becoming the best?

Do you BELIEVE you can?

Are you willing to go through the pain of LEARNING?

How many of you like

to learn?

Question to the class

“Learning… the process by which change in

knowledge or skills is acquired through

learning or experience”

Key Questions:1. Change?

2. Learning

3. Experience

Learning….

Why is learning so

hard?

Question to the class

LEARNING = CHANGE

What is learning?

1. What percentage of people reach their target weight ?

2. What percentage of people maintain their target weight?

3. What percentage of people quit smoking and never start again?

4. What percentage of people quit smoking after a physical crisis?

5. What percentage of re-engineering efforts are successful?

6. What percent of companies on the 1955 Fortune 100 list are still

around today?

7. What percent of Fortune 500 companies on the 1970 list had vanished

by 1985?

8. What percent of executives in Fortune 500 companies who had

financial losses in 1993-1994 attributed it to poor leadership and lack of change?

Change Quiz

1. What percentage of people reach their target weight ?

2. What percentage of people maintain their target weight?

3. What percentage of people quit smoking and never start again?

4. What percentage of people quit smoking after a physical crisis?

5. What percentage of re-engineering efforts are successful?

6. What percent of companies on the 1955 Fortune 100 list are still

around today?

7. What percent of Fortune 500 companies on the 1970 list had vanished

by 1985?

8. What percent of executives in Fortune 500 companies who had

financial losses in 1993-1994 attributed it to poor leadership and lack of change?

4%

1%

16%

43%

30%

32%

41%

>50%

Change Quiz

Learning is painful….

“I listen, and I forget; I see, and I understand; I do, and I can” – Confucius

Source: Pesquisa IBM; Whitmore, “Coaching for Desempenho”

Information/ Knowledge

Awareness

Skill

Advanced Skill

Expertise

Context Content

Composition of Delivery:

90% Content, 10% Context

Composition of Delivery:

10% Content, 90% Context

This model is based on the

research of Roshan Thiran

and Leaderonomics.

Learning is contextual too!

• 70% of learning is through EXPERIENCE:

- Seek new experiences and always accumulate new experiences

- Volunteer for special projects that will stretch you and force you to learn and gain new perspectives

• 20% of learning is through FEEDBACK:

- Ask for feedback from your bosses, peers and subordinates.

- Take 360 degrees feedback and schedule weekly/monthly feedback sessions

- Give feedback to others when it is appropriate and needed

• 10% of learning is through NEW SKILL DEVELOPMENT:

- Find time to practice whatever you learn. Attend training to grow

- Take time to learn online or through reading new material.

- Always look for ways to improve yourself – be better tomorrow than you are today -

The 70-20-10 way to keep Learning & Growing:

In Summary: Becoming the Best in the World

Organisational

constraints

• Business Model

• Leadership

• Process/Structure

• Culture

Personal

constraints

• Belief

• Pain of Learning

What is constraining us from succeeding?

How do we overcome?New experiences

Continuous Feedback

New Skill Development

www.leaderonomics.com

www.facebook.com/roshanthiran.leaderonomics

www.leaderonomics.com