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Transform yourself Employees expect the CEO to live up to Mahatma Gandhi’s famous edict, “For things to change, first I must change.” The CEO is the organization’s chief role model. a large bonus to a woman who had taken a clear leadership role in a very important business initiative. “This leader’s contributions generated real economic value to the bottom line,” he explains. “Of course, news of that raced through the whole organization, but it helped employees understand that rewards will be based on contributions and that ‘pay for performance’ could actually be put into practice.” Typically, a personal transformation journey involves 360-degree feedback on leadership behavior specific to the program’s objectives, diary analysis to reveal how time is spent on transformation priorities, a commitment to a short list of personal Building a strong and committed top transformation objectives, and team professional coaching toward these ends. The CEO’s team can and should be a valuable asset in leading any CEOs generally report that the transformation. As Deutsche Post’s process is most powerful when Zumwinkel suggests, “You need all members of an executive team excellent individual players, but you pursue their transformation journeys also need players who are dedicated individually but collectively discuss to playing as a team.” Sharing a and reinforce their personal objectives meaningful story and modeling the in order to create an environment of right role will certainly increase the challenge and support. odds of getting the team on board, but it is also vital to invest time in Murthy’s 2002 decision to take on the building that team. job title of chief mentor at Infosys, for example, meant that he had to Assess and act reinvent himself, because he laid aside his formal managerial (CEO) Successful CEOs take time to assess authority at the same time. the abilities of individual members of the team and act swiftly on the result. He explains, “You have to sacrifice In some cases, input from third parties yourself first for a big cause before you (such as executive search firms) is can ask others to do the same,” adding, sought to create a more objective fact “A good leader knows how to retreat base. into the background gracefully while encouraging his successor to become Many CEOs find it useful to map more and more successful in the job.” team members on a matrix, with “business performance” on one axis Take symbolic action and “role-modeling the desired behavior” on the other. Those in the The quickest way to send shock waves top-right box (desired behavior, high through an organization is to conceive performance) are the organization’s and execute a series of symbolic acts stars, and those in the bottom-left box signaling to employees that they (undesired behavior, low performance) should behave in ways appropriate to should be motivated, developed, or a transformation and support these dismissed. types of behavior in others. The greatest potential for sending For instance, C. John Wilder, CEO signals involves the employees in of the Texas energy utility TXU, gave the box of “undesired behavior, high 60 MAL 13/16 ISSUE performance.” When clear action is taken to improve or remove these managers, the team’s members know that role-modeling and teamwork matter. Banca Intesa’s Passera affirms that, “If necessary, you have to get rid of those individuals, even the talented ones, who quarrel and cannot work together.” How do CEOs know when to intervene with the strugglers? They can reflect on the following questions: Do team members clearly understand what is expected of each of them in relation to the transformation? Is the CEO serving as a positive role model? Does everyone recognize the downside and upside of getting on board and doing what is required? Have struggling team members received a chance to build the needed skills? If the answer to all of these questions is yes, decisive action is justified. Experienced CEOs attest to the positive impact this can have on the rest of the company. EMC’s Tucci says he had to take “public” action to tackle the “whiff of arrogance” that used to characterize certain parts of the company. TXU’s Wilder recalls that “When we did a cultural audit, we found that the number-one complaint was that management was not dealing with employees that everyone knew weren’t carrying their load.“ Invest team time Even with the right team in place, it takes time for a group of highly intelligent, ambitious, and independent people to align themselves in a clear direction. Typically, the first order of business is for members to agree on what they can achieve as a team (not as individuals), how often the team should meet, what transformation issues should be discussed, and what behavior the team expects (and won’t tolerate).