Advice From the Top

by Del Leonard Jones

   Paranoia provides energy and drive. Let it define the culture. Be paranoid even when times are great.

   When the company goes into shock, expect part of the leadership team to flee. Build trust with the rest. Look around the table and ask who wants to move forward.

   Be a victim or be proactive. Transformation is the no-option option.

   Remember, you're the micro in the macro. Don't bank on the tide going up. Be successful taking market share when the industry’s stagnant.

   It's not just about market share, as high tech believes. Profits are important.

   You can't save your way to profitability. It takes three to five years to develop a new technology. If you're three-quarters of the way to a new product, do you waste all that investment, or do you continue until it's finished? I say continue. Outsource as much as you can. Time will tell.

   It's tough letting people go when it's no fault of their own. Be candid with the rank and file. You'd like to be able to say to people that this is the last layoff. But you can't.

   Pull it off and you’ll look back on this and say it was a great achievement. Take personal satisfaction from the biggest challenge you’ve had.

  Did you know?

  Smith was raised in the back country of England in a steel and mining area that he calls the Pittsburgh of the UK. His parents were factory workers.

  Met wife on a blind date in San Francisco and proposed to her at a castle in Wales.

  Completed a rugby game with a broken foot.

  Favorite flick: Monty Python and the Holy Grail.

  The need for speed

  Bobby Unser, Indy race car driver on running full throttle

   Go fast to win. Going fast means trying hard all the time in business, family life, sports.

   Running hard is a gamble. You won't finish as many races. But if you go fast, you’ll be noticed.

  “Lead the races. Winning will happen.”

   Balance is important, but speed is a must. Go fast in practice, go fast in qualifications, don’t be conservative. Go down in style and people will remember you. Mario and Michael Andretti have only one Indianapolis win between them, but they're as famous as any drivers on Earth. That's because they went fast and led.

   Don’t put something off for a month. Get your facts lined up in a day or two and think something out in an hour.

   Keep yourself in shape, keep your mind clear. Be at a high state of alert.

   Learn from a wrong decision. If you lose, go home and think about why.

  “You can tell a lot about someone by the effort they make when they fall down. Some people mope. Winners figure out what they did wrong and don’t do it again.”

   Don't go to work blank and fill in the day as it goes on. Plan your day, then be prepared for changes.

   Visualize your race. Visualize your competition, the racetrack, the weather. Somebody's going to win, somebody's going to lose. Visualize it all: the tires, the air pressure, the chassis. Don't be the guy who sits there and says, "I don't know how it's going to be," and then reacts.

   Go to sleep thinking about something you want to accomplish. The subconscious mind will work all night long for free.

  “When I was 10, I went to bed dreaming of winning Pikes Peak. I’d go to sleep thinking about the road, turns to the left, turns to the right. By the time I was old enough to race, my subconscious mind had worked on it for years. I set all the records.”

   The best drivers don’t relax before a race. They don’t go out to dinner the night before. They use the time to think.

   Some racers are born with tremendous talent, but no desire. If you have desire, manufacture what you need. Be better than the guy born with natural abilities. In business or motor sports, the guy who really wants to be a champion wins.

  “I was on the high school wrestling team. Our biggest competitor was the blind school. Those guys couldn’t see, but they could win. That’s where I learned about desire.”

   Wants are different than desires. You can sit on the couch sipping a beer and want something. If you desire to be the head of General Motors, you go to work in the automotive industry, not over in Africa searching for diamonds.

   There are different ways to win. Race differently if you have the fastest car. If your car is slower, push the envelope to find its limits.

   When the race is over, it's really over. Don’t let failure control your life. You feel like kicking the tire. It's over. Things happen. Tough.

  Did you know?

  Unser is a three-time Indy 500 champion ('68, '75 and '81).

  Dropped out of school after the 10th grade.

  Lifetime speeding tickets: "A lot less than most people think."

  Favorite eatery in Indianapolis: Steak 'n Shake. Orders a bowl of chili.

  Stand up to bullies

  Dan Vasella, Novartis CEO 1996-2010 on responding to activist scare tactics

   In 2009, animal rights activists went to my hometown village and painted “murderer” on the church. A week later, they desecrated the graves of my sister and parents. They set fire to my Austrian vacation home.

   Don’t stay quiet. You have the duty as a citizen to speak up. If everyone remains silent, then violent people prevail.

   Security consultants say, don’t respond, don’t react. I say, be cool and react with logic. Be prudent, take precautions, but don’t be afraid. Be willing to engage with activists such as Greenpeace – if they have a point. But not if their objective is to create fear and uncertainty. Those are terrorist attempts at psychological tension.

  “Suffering in silence doesn’t help anybody. Ducking to stay off the radar of negative publicity is a bad recipe.”

   In minor instances it’s best to stay quiet. It’s a judgment call. Make a deliberate decision, not an emotional one.

   Encourage dialogue, but let activists know that criminal activity won’t be tolerated.

   Visit activist websites to understand where they’re coming from. If blackmail and extortion are their game, dialogue is useless. Don’t win their support, win the public’s support.

   If you go public, do it immediately. Engage politicians and the press.

   Take necessary security measures for your family.

   Remember what your parents said: Stand up for yourself.

  Did you know?

  Vasella has an M.D. from the University of Bern in Switzerland.

  As a child, he had asthma, tuberculosis and meningitis and spent a year in a hospital/sanatorium.

  One sister died of Hodgkin’s lymphoma at 19. Another sister, also a doctor, was killed in a car crash.

  End a career with words of wisdom

  Sandy Weill, Citigroup CEO 1998-2003 on selling a book

   Prepare for obvious questions. The most common one is: Why did you decide to write a book?

   Don’t attempt a book unless you have something important to say. You have to open old wounds and criticisms.

   Ask yourself: Does my book have legs? Will people want to read it two years from now? Does it add value?

  “If it’s just something that’s feathering your ego, shame on you.”

   Don’t use a book to settle grudges. Forgive. Learn about yourself.

   CEOs are competitive. You’ll fear that the book will flop. Fear makes you pay more attention to what you're doing and makes you do better. Life is about overcoming fears and challenges – even once you’re retired.

   Use a co-author who will write exactly the way you think and talk. Use the best and brightest. Don’t be afraid if your co-author is brighter than you.

   Wait until you retire. It will be more work than you expect. You can't have a day job and write a book. Wait until you’re ready. There may be chapters left unfinished.

  “I never kept a diary during my career, but I would recommend it.”

   Promote the book with hard work. You can’t get o
n Oprah. Maybe you’ll get CSPAN.

   Few interviewers will have read the book. Take their bad questions and convert them into something you want to say. Learn from politicians. Their answers have nothing to do with the question.

   The best way to move on to another question is to stop talking. Interviewers don't like dead air.

   The best way to combat an adversarial interview is to give long answers. Another lesson from politicians is the filibuster.

   Don’t include an index. People will go to the back of the book, read their name and read the thing about themselves out of context. They won't read the rest.

   Let your wife write the last chapter. She made the trip with you. She contributed more than you’ll know.

  Did you know?

  Weill wrote The Real Deal: My Life in Business and Philanthropy. At 73, he did about 100 media interviews.

  Favorite books written by other business leaders: Personal History by Katherine Graham; Iacocca by Lee Iacocca. “Both are honest and self-critical.”

  Getting rid of the riffraff

  Jack Welch, General Electric CEO 1981-2001 on scraping off the barnacles

   Rank all employees every year. The top 20% are stars. The bottom 10% are weeded out. It’s called differentiation – or rank and yank.

   It’s a lesson from the playground. The best get picked first.

   It’s not cruel. The kindest thing is letting workers know where they stand. You give them a chance to improve or move on.

  “Most leave on their own. Who wants to be on the bottom?”

   Suppose you’ve never been told you’re on the bottom and along comes a downturn in the economy and you have to go. Differentiation is more honest.

  “Is it kinder to never let anybody know their shortcomings and then surprise them with bad news?”

   Don’t be rigid. You may get rid of 7% one year and 15% the next.

   Free time to nurture the winners and those who are growing. Take care of your very best. They won’t react poorly to rank and yank. They recognize there are those who don’t carry their load.

   When managers rank all employees, politics will creep into the system. Guard against that with an evaluation system that’s as rigorous and fair as you can make it.

  “I wanted to give hourly workers stock options, but the union said everyone had to get the same, which defeated the purpose.”

   I agree with Larry Brown of the Detroit Pistons, a proponent of positive coaching. He says the best players are rewarded with the most money and adulation, but in the locker room and on the court they must act like part of the team.

  Did you know?

  Welch was an altar boy. He once traveled more than an hour to attend mass, but when his mother died of a heart attack he got "angry and mad at God." He's a regular church-goer again.

  Will he go to heaven? He answers in his book, Winning: "I'm not perfect, but if there are any points given for caring about people with every fiber of your being and giving life all you've got every day, then I suppose I have a shot."

  Once beat professional Greg Norman over 18 holes. He's given up golf.

  Quarterbacks play to win

  Steve Young, 49er QB on the leadership lessons of football

   Business needs to play more hurry-up offense. Run a bunch of plays and more good things will happen. Huddle less in meetings.

   Offices should be open spaces. A locker room atmosphere breeds teamwork.

   A CEO is the combination of a QB and a coach. It takes both to get everyone headed in the right direction.

   Football has a score. You’re in bounds, or you’re out. Business doesn’t have that, which makes it more difficult in many ways.

   Perfect information is never available. Gut instinct is crucial. Play a little blind, throw the ball trusting the receiver will be there. Take advantage of a glimpse, a piece of information.

   An element of faith is important.

  “Even at six-foot-two I couldn’t see my receivers over the defensive line. I knew Jerry Rice was there, I just couldn’t see him. I let it rip. When I started playing essentially blind I accelerated my success.”

   There’s an element of luck, but never count on it. Even in a blizzard, the best team wins most of the time.

  “Sound, practiced, accountable organizations win, and they win more when it gets crazy and tough.”

   Call the play. Keep pushing forward. Don’t finger-point. That’s a defeatist attitude. Overcome everything and never flinch. There’s always an excuse to make, but successful teams never open that door. It’s true in football, business and families.

   If you make a mistake you say, “Fellas, I screwed up. I’m sorry, it won’t happen again.” They respond to that.

  “If a leader isn’t accountable, it breeds contempt.”

   If someone else is at fault, don’t lay blame on the field. When the battle is over, when things have quieted down, that’s the time to look at the elements of a mistake.

   Everyone is driven by a fear of failure. Don’t let it hold you back. A football team in hurry-up offense is often successful because it is about to lose, so it is no longer afraid to lose.

   On the other hand, the team in the lead is playing not to lose. It’s playing scared, which is why big leads are blown.

   It helps to know that the competition is really with yourself and your team. Think: How great can we be?

  Did you know?

  Young is the great-great-great grandson of Brigham Young.

  Was once a contestant on Who Wants to Be a Millionaire. He went out when he said a crucible is a vessel that can withstand high pressure. Correct answer: It withstands high heat.

  Lost a 3-point basketball shooting contest to Family Matters TV actor Jaleel White (Steve Urkel) during the 1993 NBA All-Star weekend.

  Zig when they say zag

  Edward Zore, Mutual Financial Network CEO 2001-10 on being counterintuitive

   Seinfeld was a TV show about nothing. It sounded crazy, but it worked.

   When oil prices are high, energy companies invest in exploration, auto companies invest in fuel efficiency. Those are the obvious choices and examples of zagging instead of zigging, which often prove to be disastrous.

   Being counterintuitive can be the dull path when others are going for the exotic. Being counterintuitive can mean being boring when everyone else is chasing the latest thing.

   Drive the counterintuitive approach down to the rank and file. Instill a culture where ideas are open to examination, where there’s not a dumb question. Be open to people thinking differently.

   Don’t always be counterintuitive. That makes you predictable, the opposite of counterintuitive.

   Never stop challenging your own beliefs – but don’t give up on something old that remains relevant.

  Did you know?

  Zore is a hunter and fisherman. Once considered becoming a forester.

  Recommends Atlas Shrugged that defends capitalism. It’s a zig-when-they-say-zag novel because it was written by Ayn Rand, a woman born under socialism.

  One-Question Afterward

  If you had a son or daughter graduating from college or high school this year, what advice would you give to them?

  Aflac CEO Dan Amos 1990-present

  “I've spoken at a few university commencements, and my message is always pretty much the same. I tell graduates to find their treasure. By treasure, I'm not talking about money or material possessions. I'm talking about something in life that they're passionate about and pursue. That's the key to true happiness.”

  Sara Lee CEO Brenda Barnes 2005-2010

  “Find something that you have a great passion for, as that will not only make you happy, it will also make you successful.”

  Lincoln National CEO Jon Boscia 1998-2007

  “Don't worry about making a mistake — you're young and you have a lot of time to experiment.”

&nb
sp; Medtronic CEO Art Collins 2002-2008

  “Choose a first-class school or place to work that will challenge you, and then surround yourself with bright, motivated people with integrity. Work hard, push your limits, never stop learning, and always remember to have some fun along the way. Careers and lives are made one building block at a time, from the foundation up.”

  Best Western CEO David Kong 2004-present

  “Stay true to one's beliefs. In the next 10 years, be patient and build a solid foundation. Sometimes it's difficult to see people who don't work as hard, or are less talented, get ahead. Some people are luckier. It's OK. In the end, hard work and dedication pays handsome dividends.”

  1-800-Flowers.com founder Jim McCann

  “Bring your youth to the table. It’s an asset. Share your energy and excitement. It will cost you nothing extra to have a passionate personality. Find a way to share your unique perspective. You understand things about technology and culture that my generation only reads about. Use this to your advantage.”

  Mutual of Omaha CEO Dan Neary 2004-2015

  “Focus on activities that give you the most satisfaction. There are many tools available to increase your awareness of how you are wired as an individual. Knowledge about your interpersonal characteristics may help guide you to careers that you would find the most rewarding.”

  Office Depot CEO Steve Odland 2005-2010

  “Do the right thing. You know what it is. Don't just pick a career at which you're good. Pursue something that comes intuitively and that you love instinctively. Success will follow. If everyone's doing it, don't. Popularity wanes. Fame and fortune are fleeting. Reputation remains. How you treat others defines who you are.”

  Samsung Electronics of America CEO Dong-Jin Oh 2005-09