Follow us on Twitter Follow us on LinkedIN

Alicia Blain

CEOs


Quote:  “You can’t lead without imagination”  ~  Seth Godin in Tribes: We Need YOU to Lead Us

Imagination is seriously lacking in today’s corporate environment.  We are knee deep in a status quo that no longer serves us and that in many ways, makes us mediocre.  To change that, we need to spark imagination in all our employees.  But first, we must spark it in ourselves as team leaders. To create the spark you need to embrace experimentation.  I’m not talking about creating a department or a committee to look into experimentation.  I mean changing the way you lead your team so that experimentation is always encouraged and rewarded.  When an idea doesn’t work out, it isn’t perceived as failure but as a learning experience that enriches the team and the lesson learned can be utilized to fuel the next experiment.

Experimentation is the final but core concept in the C.A.R.E. System.  It is what ties it all together. In these posts, I have showcased Starbucks and its CIO to illustrate the key principles behind the C.A.R.E. System.  At the very core of Gillett’s success was his innate acceptance or need to experiment. None of the examples would have been possible if Gillett had not embraced experimentation. Let’s recap all the ways he experimented:

  • When he took on more responsibility in the face of daunting IT problems that needed resolution
  • When he went to work at a Starbucks retail store, not knowing what he’d find or how he would do,
  • When he showed the Executive team a live simulation highlighting the shortcomings of their existing POS system
  • When he proposed the new business unit called Digital Ventures,
  • When he chose an entrepreneur to run the new business unit,
  • When he made IT and Marketing equally responsible for the new business unit
  • When he asked employees for their ideas on making IT better,
  • When he let employees select their IT devices,
  • When he applied his knowledge of networks to help spark solutions in Starbuck’s retail business.

All of these examples illustrate that Gillett was open to experimentation. He may not have been comfortable with all of it but he chose not to play it safe.  At some level, he understood that taking risks was critical to Starbuck’s survival and he, as well as his CEO, faced the challenge and came out ahead.  I’m sure that there were ideas that didn’t work out.  In fact, the article highlights one. Apparently, Gillett is a big gamer or lover of video games. Actually,  he’s a guild master in the online video game called World of Warcraft.  That’s a pretty big deal in the gaming community. Instead of playing down that passion, he  set up a meeting between the executive teams of Starbucks and Blizzard, the owners of World of Warcraft so they could look into the possibility of doing business together.  After all, both companies had a huge fan base and Starbucks needed to find ways to engage customers online the way that Blizzard did. 

At the end, the experiment did not end up in a partnership.  But all was not lost.  The experiment sparked new ideas among the Starbucks executives that led to new offerings for their customers.  Embracing a spirit of experimentation almost always sparks the imagination and that leads to more possibilities for innovation.

For companies to be relevant in the future they must make experimentation a core objective for all departments.  It needs to be nurtured, rewarded and imbedded into the corporate culture.  More importantly, it is a pivotal component if we are to transform the way we lead.  Millennials will make up 50% of the global workforce in less than 5 years.  As leaders preparing to pass the baton to the next generation leaders, I believe it is our obligation to embrace change and find new ways to lead.

So you may be wondering what happened to Ben and his direct reports? As I dissected the Starbucks case study, Ben was able to see real world examples of C.A.R.E. in action.  It sparked their curiosity and an eagerness to try new approaches in their organization as Gillett tried to do in his.  Ben, as CIO, made a very important decision that day.  He chose not to play it safe.  He realized the future required new ways of seeing things and new ways of leading.  The Millennials were their new audience not just as employees but as customers. He realized that if transformation was going to happen, it needed to include the Millennials in the workplace.  And he was ready.

I’ll end this series by quoting Seth Godin one last time.  In Tribes: We Need YOU to Lead Us, Seth writes:

“The safer you play your plans for the future, the riskier it actually is.”

My questions to you are:  How safe are you playing your role as leader? What one thing can you do today to get you slightly uncomfortable? What one thing can you do to get to know a Millennial in your workplace? 

Like me, you’ll find that staying in your comfort zone as a leader is actually riskier than embracing a little discomfort to prepare for the future. Once you step out of your comfort zone and see all the possibilities that it offers, you’ll wonder why you didn’t do it sooner…

Quote: “ I don’t think we have any choice.  I think we have an obligation to change the rules, to raise the bar, to play a different game.”   ~ Seth Godin in Tribes: We Need YOU to Lead Us

Connecting with our employees and customers and adapting our mindset gets us ready to play a different game.  But you also need action and to do that you have to be willing to RESHAPE your organization.  To Reshape is the third module in the C.A.R.E. System. To visualize just how you can begin to do that, let’s go to our Starbucks example.

Again, Here’s the link to the Information Week article.

Here are 3 examples of actionable steps that Gillett took to reshape his IT team and their reputation.

1.     He forced collaboration between teams.  In the C.A.R.E. System for Next Generation Leadership, we call this “Letting go of Silos”.  Silos are rampant across corporate America and they are innovation and motivation killers for most employees but especially Millennials.  One of the key Millennial characteristics is their collaborative spirit.  They work best in groups and the more you mix up the group the better. Imagine their surprise when they show up for work and see that business units barely interact with one another and they certainly don’t share and collaborate very much. In his pitch for a new business unit, Gillett forced the collaboration of the IT and Marketing teams.  Talk about silos that don’t normally have much in common.  The new unit was called Digital Ventures and Gillett hired an entrepreneur to run it instead of a corporate type. Now that’s playing a different game.

 2.     He let the employees choose their technology and propose new ideas. At a time when so many IT shops are still fighting the consumerization of IT here is a company that allows their employees to select from a wide assortment of technology, from Macs to PCs to smartphones to get work done. To be completely fair, the article did say that Starbucks modeled their Tech Café after the Apple Store. That brings up a good point.  We should always be scouting the market for techniques that work for others and how they can be customized for our specific organizations.  What I liked the most was that they welcomed feedback from the employees on all things concerning IT.  In the C.A.R.E. System, we call that IT Advocacy.  Millennials are the first generation of workers that actually want more technology than what currently exists in the workplace.  No matter what team they work for, they can be invaluable to an IT Dept.  But IT has to take the first step and request their help and then be open to the suggestions given. As IT Advocates, Millennials can be a wonderful test group for any new product, process, or upgrade that the IT Department is considering. If done properly, IT Advocates can be a great extension of the IT Department.  As IT partners, they also create a great fan base for IT in the company.

3.     Applying expertise from an unrelated field to solve a different problem.  Gillett had little retail experience before working at Starbucks and according to the article he had never worked on the scale of a Starbucks.  But he had worked for companies with big networks like Yahoo. Instead of disregarding that experience, he leveraged it to understand the retail giant and apply that seemingly unrelated experience at Starbucks.  Gillett is quoted in the article as saying:  “[…] big Internet, like Yahoo, had solved a lot of the technical challenges that big retail had yet to solve… If you think of all your stores like nodes on a network, and all your resisters as computers rather than cash registers, you can start to manage and deploy […] like Yahoo would a server farm […]”   Many examples exist in business of how breakthrough ideas and products are discovered when a solution that worked in a completely unrelated field is applied to solve a different problem.

 Sometimes, organizations are too narrow-minded in how they view and value experience.  Perhaps an employee in your team has expertise in solving problems in another field that can be the breakthrough idea you need to solve a problem.  You’ll never leverage that unrelated expertise if you don’t know about it or you don’t support it or you don’t find an outlet to try it out.  Experimentation is the subject of our last post in the series and a pivotal one for transformation to occur.

Quote: “What they needed was a leader to bring the organization to a new audience in a new way.”       ~ Seth Godin in Tribes: We Need YOU to Lead Us.

If you’re not quite sure why Millennials are an organization’s “new audience”, I invite you to read through some of my past blogs to get a thorough understanding of this unfamiliar group.  As leaders, we won’t be able to really reach that new audience unless we are willing to create a new way or at the very least question our existing way to see if it will work going forward.

That’s why it’s so important for us to ADAPT and find a new way so our next generation employees are engaged and productive in our teams.  ADAPT is the second module of the C.A.R.E. System for Next Generation Leadership and it’s an important one because it has to do with a leader’s state of mind. ADAPT is all about mindset and getting comfortable testing your boundaries.

So what specific things can we do to ADAPT our leadership style?  Let’s look at the Starbucks case study for ideas.  As the new CIO, Gillett embraced 3 things that got him out of his comfort zone and ready to ADAPT and find a new way to lead his IT team.

Again, Here’s the link to the Information Week article.

1.     He was curious and courageous. The article quotes Starbucks CEO Howard Schultz as saying that Gillett “had an insatiable curiosity and wasn’t afraid of pursing big, bold ideas.” Curiosity and courage are key components of the C.A.R.E. System.  To change and adapt to a new way of doing things and of leading is not easy.  You are fighting yourself and those in the organization that want to keep the status quo alive.  Without being inherently curious, asking lots of “why do we do it that way” questions and being willing to fight the good fight, it is very difficult to ADAPT and give your new audience – the Millennials – a new way.

 2.    He asked for even more responsibility.  In early 2009, Gillett has been in Starbucks for just one year and realizes he inherited what can only be termed an IT nightmare. At the same time, Starbuck’s new CEO, Howard Schultz,asks the company executives to give him ideas on how to turn the company around. He urges them to think outside their corporate functions. Does Gillett ignore his boss’ request because he legitimately reasons he already has too much on his plate? No. He goes ahead and pitches an idea for Starbucks to make a venture capital investment in a new business unit designed to push the company’s mobile and online strategy.  That was a gutsy move.  Instead of sticking to what he knew and focusing on just that, Gillett saw a rare opportunity to be part of a transformation at Starbucks.  It required him to take on more than he probably could chew at that time. He got out of his comfort zone and adapted his mindset to take on a strategic challenge and he succeeded. According to the article, since creating the new venture “Starbucks has become a retail leader in mobile payments”. By stretching yourself and getting uncomfortable you push yourself to try new things.  Like a muscle, the more you use it, the more comfortable you become letting go of your status quo.

 3.   He instilled an entrepreneurial spirit into IT.  That’s very rare to see.  IT departments in most large organizations these days are all about following the rules, often playing it safe, and saying a lot of NO in the interest of “security”.  In the next post, we will see examples of what Gillett did that went against these typical IT practices.  The examples were possible because he elected to run IT not so much as a corporate business unit but rather as an entrepreneurial venture. They opened themselves up to try new things.  The focus was to address the needs of its customers – both inside and outside the corporate walls. That ultimately showcased IT as an enabler instead of  a cop.

 In today’s super competitive, global marketplace,  organizations that don’t want to fall behind need to be run by leaders that are open to adapting their frame of mind and leadership frameworks to make way for the future. They need to ADAPT and find new ways for their new audience – the Millennials.

Quote“ If you’re not  uncomfortable in your work as a leader, it’s almost certain you’re not reaching your potential as a leader”  ~ Seth Godin in Tribes: We Need YOU to Lead Us

Being uncomfortable is how transformation begins.  When I first started hiring Millennials, I didn’t want to change.  The more they perplexed me, the more I dug my heels in my comfort zone.  It wasn’t until I decided to understand why they perplexed me that the transformation in my leadership style took place and led to the creation of the C.A.R.E. System for Next Generation Leadership. That led to first seeing the potential Millennials brought to the workplace then tapping it then capitalizing on it.

The first step in doing that is to CONNECT.   Many of us who cut our management teeth in the 20th Century approach leadership like this:  I, leader, have a certain leadership style that you, employee, will need to get comfortable with.  It is not my responsibility to figure you out or adapt my style to meet your needs.  You need to conform to my style and work effectively under that style. 

Really?  Do we really want to lead that way?  Does it work for us?  If we were honest with ourselves, we would admit that working for a boss that took the time to know us and spend quality time with us are the ones we liked working for and worked the hardest for.  Now more than ever, making a special connection with each of our employees is not only critical but expected.  The more removed we are from our staff, the less effective they will be and that will reflect back to us.  We also minimize our message and our vision.  We need that direct connection to our teams to spread our message and communicate our goals.

So how can you begin to CONNECT?   Let’s look at the Starbucks case study for real world examples. Here’s the link to the Information Week article. 

As the new CIO for Starbucks, one of the first things Stephen Gillett did was connect with the people in the trenches and with Starbuck’s customers.  How did he do that? He shadowed them by actually working in one of the retail stores. This is one of the key components in the C.A.R.E. System.   As a leader you need to spend time with your target audience whether it’s your employees or your customers.  It’s important for 3 reasons:

  1.  You see firsthand how employees work.  You can observe their thinking process as they complete their tasks.  How is that thought process unique and can you leverage it in other areas or functions in your team?  You also see how they do their tasks.  Are there shortcuts that they are taking and are unaware of that help speed up the work? Can those shortcuts be applied in other areas of your operation? Or perhaps they are missing important steps that require more training?  Is there duplication of work that you were not aware of?  No report or spreadsheet analysis will give you that kind of intelligence.
  2. You see if the process works or doesn’t.  In the case of Gillett, as he worked at a Starbucks store, he quickly realized that the point-of –sale (POS) system was broken.  Even though the Starbucks brass knew the limitations of the system they were more focused on growth strategies and opening stores.  They didn’t realize that the limitations of the POS were contributing to problems in opening new stores.
  3. You are able to make better and more intelligent decisions when prioritizing projects based on your firsthand experiences in the trenches.

If shadowing is effective downstream – working directly with your employees and/or customers, it is equally effective upstream – with your executive team.  After spending time shadowing downstream at a Starbucks store, Gillett decided to bring the same experience upstream, to the executive team. He created a Tech Derby which is really a live simulation of a problem showing the pain points and a proposed solution to the problem. The simulation acted as a shadowing opportunity. Through a large-screen display, the executive team, including the CEO, Howard Schultz, shadowed a barista painfully placing an order in the outdated POS system.  They got to see not just hear about how much time was wasted as the baristas had to translate orders so the POS system could capture them. Then, through a mock up of the proposed replacement system, the executive team was able to shadow the new process to see how much faster and more effective it was. 

According to the article, “When they showed both to Schultz, ‘he just turned around and said, When? And whatever you’re going to tell me, it has to be faster’”.  That’s how effective shadowing is and how powerful the concept of Connecting is to introduce change.

Imagine how connecting with your Millennials or others in your team can give you a bird’s eye view to what’s going on in the trenches.  Imagine how many things you’ll be able to discover, uncover and identify that can be game changers to your team and ultimately your organization.  The days when leaders could run teams by just interacting with their direct reports without a strong connection to their team members are disappearing quickly.  The opportunity for innovation and real transformation lie with the ideas and creativity of those closest to the problems your team faces every day.  You need to connect with them to tap and harness that creativity and find innovative solutions.

What examples do you have that illustrate how you CONNECT with your employees?

Being a left brain type of person, I always struggle with the more touchy feely or intangible aspects of life.  Topics like the law of attraction or self-help or some of the personal growth stuff doesn’t always make sense to me but yet I know that keeping a positive mindset & envisioning a certain outcome are powerful things to practice.  For example, I think the book,” Think & Grow Rich”  by Napoleon Hill is a great book and although written decades ago, its principles still make a lot of sense today.

One of my goals for 2011 is to embrace one or two things that are outside my comfort zone.  So I picked personal growth/prosperity thinking as one of the two uncomfortable things I would work on this year.  I started listening to Randy Gage, who is a well known speaker who focuses on prosperity & ridding people of self-limiting beliefs.  I picked Randy because he lives in South Florida and I’ve heard him speak many times.  He’s a bit controversial & unorthodox in his approach & I happen to  like that because controversy always challenges your thinking which I think is good.

So like many speakers today, Randy has a You Tube channel where he shares his ideas, his rants & beliefs on prosperity.  His latest video gave me a lot to think about & I thought the idea applied to those leading & managing teams in corporate America today. Randy starts out the video by asking a powerful question: 

                         ” What would you do  if you knew you could not fail?

Interesting question, right?  But even more interesting are the possibilities that it offers if you apply it in a work setting.  One of the things that I see happening a lot in the corporate world is that people play small.  Everyone plays it safe because there’s so much fear of failing or looking bad or not making your target to get that bonus at the end of the year.  When I talk to companies & ask about what they are doing to innovate, many times even those ideas are rooted in safety.  One of the key reasons I think this happens is that leaders in organizations today are afraid to fail & they bleed that fear into their teams in subtle ways. 

 Time and time again, I have seen team members, those on the front lines, come up with great ideas.  When they try pitching the idea to their bosses,  the little “yea-but”  beasty rears his ugly head & squashes the idea.   Everyone who has worked in corporate is familiar with the “yea-but” beasty.  As soon as the beasty hears of an idea that’s outside of the norm, that is even slightly risky, he quickly invades the body of one of the decision makers and the conversation goes something like this: ” YEA, Sally, that’s a great idea BUT what’s the ROI on that?” or ” YEA, Bob, that’s a great idea BUT where are you going to get the money to fund it?” or my personal favorite “YEA, Nick, that’s a great idea BUT we don’t have any time to work on that right now?”  As if there was a “good time” to experiment & try out new ideas. The beasty wins again & the company misses out on a great opportunity to explore something that might lead to a new profitable product, new revenue stream, a new & more efficient process.

The “Yea-But” beasty works on our inherent discomfort to try new things because we are afraid to fail and corporate entities suffer from that as well except they make up good excuses to cover it up.    These days, I think the beasty is working full time on keeping leaders from recognizing the amazing talent that is sitting right under their nose in their Gen Y staff.  As I travel internationally to speak on the topic of Gen Yers & leadership, I hear the beasty all the time.  Leaders still believe that the Gen Yers will ultimately succumb to the way corporations have been managed since the 20th Century.  My response to that is simple “  Why would we want that”?  Anyone who has worked in corporate knows that there are a lot of things that could use a little fixing, a little overhaul, a little 21st Century upgrade.  So why don’t we merge the unique talents that Millennials bring to the workplace with our corporate experience & brainpower to create something better?  That could be risky & most of all it would require some work.  I can hear the beasty now…

But what about if we took a baby step every day to remove failure from the equation?  What if, like Randy Gage says, we carried out our leadership responsibilities as if we couldn’t fail?  What if we set a goal to experiment with one new idea or concept this year?  Imagine the boost of confidence you’d give your team?  The creative juices would wake up & the possibilities to develop a new product line, a new revenue stream, a new software tool could make all the difference to your bottom line.  But you’ll never know as long as the beasty is allowed to flourish.

When I struggled to understand & accept Millennials in my team years ago, the beasty was in full force & I, too, held on to the leadership principles that I had used for years.  At first, the beasty was winning big time but then slowly, with every uncomfortable baby step I took,  I got stronger & I fought the beasty back.  It was a great feeling to remove failure from my leadership equation & forge ahead with new ideas & experiments that produced bottom line results.   I was able to conquer the beasty and so can you.

So how about it?  What will you do today to fight the “Yea But” Beasty?  What will you do this week to remove failure from the equation?  What can you do if you knew you could not fail?  All it takes is a baby step…

I came across this article written by Frank Kern last month in Business Week titled “What CEOs really want“.  Apparently, IBM’s Instiute for Business Value had interviewed over 1500 CEOs and the number one most important leadership competency they identified was creativity.  Creativity?…Really?  I found myself having trouble believing that.   Kudos to IBM for  tackling the always thorny issue of what CEOs are thinking and wanting for their organizations.  But as many of us who have been in corporate know, what a CEO says and what he does are not always congruent are they?

I happen to agree that creativity is a critical competency but few organizations have seen it as a leadership competency in the past. They have typically focused on creativity in the products they sell, new markets they enter, etc. But creativity has sorely been lacking as a  leadership trait.  Only a small minority of organizations, the ones IBM calls standouts, have been successful in breaking traditional methods and experimenting with new techniques to lead more innovatively in the 21st Century.

In many of my blogs, I have stressed the need for leaders to get comfortable in experimenting with new leadership ideas and not depending as heavily on the traditional models.  Although CEOs are saying creativity in leadership is key, it will take years for this to funnel down most organizations.  Why? Because organizations are mired with programs and practices that favor doing what’s worked rather than the disruption of the status quo.

Let me give you an example. When I wanted to implement a Pair & Share program where we were breaking down silos by having people from different teams work together,  the bonus and reward structure in place did not lend itself for this type of program.  Why? Because it had not been done before and there was no way to measure results since silos were the prevalent way teams worked. So I either had to follow traditional practices and kill the program or get “creative” and find ways to still move forward and find a new method to measure results that could fit in the existing framework. 

It wasn’t easy to do but we managed to find a way to do it. The end result was terrific.  The cross pollination of ideas that took place between 2 very different teams led to new, more efficient ways of doing things and increased communication and collaboration.  But most importantly, it fostered the desire to experiment both in the trenches and at the leadership level. 

Wouldn’t it have been nice to adapt the bonus & reward structure to accommodate this different, innovative way of doing things instead of the other way around? Unfortunately, the bonus & reward structure is just one of many barriers that still exist in companies today curtailing the spirit of creativity in leadership.  It’s often too hard to fight the tide and the traditional corporate machine is still too entrenched in the leadership for disruptive ideas to gain momentum.

So my questions to those CEOs interviewed would be this:  What are the top 3 things you are doing today, right now, to disrupt your own traditional leadership style?  What steps are you taking to ensure your direct reports are doing the same?  What specific changes are you fostering in your HR practices to reward disruptive leadership thinking within your organization?  It’s one thing to say that creativity is the number one most important leadership competency but it’s a whole ‘nother thing to live it and breathe it yourself. 

And so my question to you is:  What baby steps are you taking to disrupt your traditional leadership practices and instill much needed creativity to lead in the 21st Century?  Are you going to wait for the corporate machine to shift or are you going to start the shift yourself?  Maybe the CEO can learn from watching you…