“Leadership is based on a spiritual

quality; the power to inspire others

to follow”

-Vince Lombardi

What makes leadership inspirational?

◦ The ability to inspire people to reach great heights

of performance and success is a skill that leadership

need. Passion, purpose, listening and meaning help

make a leader inspirational.

◦ The ability to communicate that passion, purpose

and meaning to others helps establish the

inspirational culture of your organization.

Strategic View of Human Resource

• Employees are human asset that increase in value to the organization and the market place when investments of appropriate policies and programs are applied.

• Effective organizations recognize that their employees do have value, much same as the organization’s physical and capital asset have value.

• Employees are valuable source of suitable competitive advantage.

Five ways to lead

• Strategic Approach

• Human Asset Approach

• Expertise Approach

• Box Approach

• Change Approach

HUMAN ASSET APPROACH • In this approach, the center of the corporation works to add

extraordinary value through the policies, procedures, programs and systems surrounding the hiring, retention and development of people at every level in the organization.

• - An Underlying belief of these executives is that the corporate center cannot and should not try to add value through the day-to-day management of operation

• “The people in charge of the operating companies must do that; we, at the center should not be trying to oversee or monitor the day-to-day management of the businesses.”

As Anthony Greener the CEO of the Guiness, asserts

Greener says, corporate “natural role” is managing money and, more important, “the key asset we have-people.”

- To that end, many of the CEOs often knows hundreds of their employees, but the human asset approach goes step further.

• It involves career planning, mentoring, face-to-face discussion about

values, decision making and performance.

Thus, human asset executives travel continuously, manage the relationship between the individuals, and define the values-often personality traits- that they believe will yield strong financial results.

The Executive in this chapter say they have selected people management because they find it the most effective way to respond to business situations involving complexity, in terms of both products and geography.

- that day-to-day, block and tackle management is more than long-term strategy in creating a competitive advantage industries

-they believe on philosophical plane, that empowering individuals is the right thing to do

A. At Nestle: BRINGING GLOBAL

CULTURE, RESPECTING LOCAL ONES

Helmut Maucher as CEO believed –it is his responsibility not only to lead but to build a team’ hence, he spends much of his time dealing with people, “and more time is spent thinking about them.”

-Values are very important. To be decentralized and to give power to the market managers, we have to keep people on the same wavelength such that, we have to remind them they are part of the Nestle world.

HOW?

- Know our people so we can assure we have shared values

- Top management meetings of country heads and other top managers, where Maucher watches them closely and later, in the privacy of his office, discusses their performance and their thoughts about Nestle strategy

-his strategic vision of local market expertise requires that Nestle managers stay in one country for as long as possible, so a global culture- a Nestle culture can built only by bringing managers to Switzerland as often as possible to talk explicitly about corporate values

-”We are very careful about the type of people we have,” They must share our values of hardwork, honesty, and commitment to the company. They must be modest. They must have style, class and quality, but not show it off. They must be pragmatic and not dogmatic.

Maucher shared, “I do delegate but when I see something that is not the Nestle way, I will question it immediately.”

B. At United Biscuits: GETTING GOOD

PEOPLE AND KEEPING THEM

Eric Nicoli of the U.K’s United Biscuits is

another CEO who manages people from his

heart, but instead of giving them the kind of

ultimate freedom, he installed the most

detailed human resource management system.

It includes frequent performance reviews,

feedback sessions, and a people management

“godfather,” among others initiatives.

When asked why he focuses his attention on people instead of on strategy?

Response: “Ultimately, I think the performance of a business is a function of strategic choices that are made years before,” he says, “and no one should underestimate the importance of good fortune in all this.

“Basically, when it comes to strategy, you make your choices based on insufficient information, and you make them when you have to make them. We have chosen some categories and we’ve chosen some geographies. Five years from now some will look like great choices, some will look like fantastic choices, and some”Nicoli smiles in the silence of what is left unsaid. “Sometimes circumstances change completely,” he adds after a moment passes for reason beyond your control, and your choices turn out to be bad. Some of the things that most influence our business aren’t predictable – economic trends, the value of the pound. These things make a huge difference, and yet we have no control over them. That’s the nature of our business.”

Nicoli’s business is food – in large part, cookies and snacks such as MvVitie’s biscuits, Keebler cookies, and KP snscks. The company has a presence throughout Europe and in the United States, as well as in Australia and China. (He switched to food marketing as a young man, after deciding that academia was too obscure for him) Today, he is happy to be running a company with 40,000 employees, and he wants his employees to feel the same way about working for him.

WHAT/HOW/ WHY His approach: “structure informality approach” –its goals are manifold, including planning

and budgeting and other traditional controls; but in the final analysis, Nicoli believes his

best shot at success is to get talented people working at the United Biscuits, and then

keep them there.

“There are lots of companies that spend a lot time recruiting excellent people and very

little time worrying about how to retain them, "the truth is, it’s an awful lot harder to

retain and motivate people than it is to hire them. The hardest thing is to keep good

people, because the better they are, the more likely you are to lose them, if you don’t

make an effort.”

The Effort:

Nicoli and his top staffers know the top hundred managers “all fairly intimately,” he says

and spend “quite a lot of time” thinking about their careers. “It goes along, long way

down. We have a three – zone grading system that covers hundreds of managers, and we

review zones one and two regularly and the high flyers in zone three.

“we spend most of our time discussing the people with potential, rather than the people

without it, although when it comes to those people, we do spend time discussing their

needs.”

“We have a well-honed appraisal system that is the basis of our assessment of all these

people.”

“We have an assessment of their potential year, and we see how that is developing, and

what their aspirations are, and whether you have the qualities..”

The important thing, “Nicoli adds,” is to keep mind in this process. I am constantly

surprised at how people change and improve, and sometimes we find people were

simply in the wrong job or improperly motivated.”

“There are a lot of companies where they attempt to motivate people by paying them a

lot,” Nicoli doesn’t dismiss this method’s efficacy, but he asserts that people are likewise

motivated when they enjoy coming to work, when they like the people they work with,

when they can have a good laugh at the office, and when they are part of a caring

environment.”

You can fire people in a caring way, or you can just fire people,” Nicoli says, “I Think one

of the attractive characteristics of our company is genuine concern. There is a price for

that. It’s cheaper no to care- in the short term. But that is one of the reasons, why we

don’t lose good people.”

Further besides keeping good people, caring about them has another positive impact in

the organization. Nicoli said “It creates synergy” between divisions, the kind of

cooperation that gets people to talk, share information, and cooperate in difficult

situations.

Ultimate, Nicoli makes people his top priority because he wants to enjoy every day of

his working life. And the way he sees it, his cheerfulness begets cheerfulness in everyone

around him. It’s chemistry,” he explains “and chemistry makes a hell of difference when it

comes to success in our business. I truly believe that.”

C. SHV Holdings: SHREDDING PAPER, SETTING

MANAGERS FREE Paul Fentener van Vlissingin managers people in service of human happiness and

fulfillment.

He wants his employees to feel free, to slam doors and swear when the spirit

moves them and specially to laugh

According to him, we succeed because we have a whole different system of

looking at people, a whole different approach, a philosophy of looking at the

people

- It is a philosophy that comes down to the adage that people rise to the

occasion. Give a little responsibility, get a little back; give a lot, and people

soar.- it’s management by letting go.

• For him, “To give people a better chance you had to build an organization

where they could have much responsibility, because we didn’t believe we

could get anybody to do the best they can unless you really make them

responsible.”

• In short, his organization put 90% of the responsibility of innovation,

entrepreneurship, and success in the hand of the team that leads the business

and there is 10% left in the central office.

What does the central office do with that

10%?

“The center of the companies should have lots of fantasies,” “It should be a man or a woman with impossible dreams and incredible visions that he or she cannot rationalized and can’t get out of computers. He should hve this idea that something can be done somewhere, somehow.”

Finally, his golden rule for CEO is “Out after ten Years.”

HUMAN ASSETS APPROACH

That is for the business leaders to describe themselves as strategists or

visionaries.

For most CEOs and presidents are extroverted, they enjoy socializing, they like

conversation, they possess a certain personal interests that draws others to them.

But while human assets management might benefit from a CEO with these

characteristics, as an approach, it supersedes personality.

Instead, organizations where people management is the main vehicle for adding

extraordinary value are built around a complex system of managing them.

This system is comprehensive and permeates every facet of the company’s drive for

strategy and results.

It begins with hiring and continues with training , development and promotion policies,

and, if need be, into firing.

At its essence, it is a system built around values – explicitly communicated, with the

intension of every employee’s incorporating them into action and deed.

- MORE THAN BEING A “PEOPLE PERSON”

The human assets management approach comes down to trust,

development, and empowerment.

It is a system that disseminates certain explicit values and then rewards those

who embrace them, building an organization in which every one demonstrates

predictable, acceptable behaviors.

With trust in place, senior management can empower employees to take action,

sometimes along lines in keeping with company tradition, and sometimes quite

new in direction.

Finally, it should be noted that while many human assets CEOs remark that

their management approach is, in a word, fun, of all the approaches in this books

it is perhaps the hardest to implement in terms of time and energy.

Human assets management can take up to a decade to inculcate, because it

involve creating trust, values and consistency and is based on personal

knowledge and experience.

But once it is in place, human assets management goes far beyond a CEO who

happens to be a “people person” to create an organization consisting of focused

employees, each one a “company person.”