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Phil's Leadership blog

How to lead a bank

“If you don’t fully understand an instrument, don’t buy it.

If you would not buy a specific product for yourself, don’t try to sell it.

If you do not know your customers very well, don’t lend them any money.

If you do these three things, you will be a better banker, my son.”

– Emilio Botin, 73-year-old Chairman of Spanish bank Santander, whose bank has emerged unscathed from the credit crisis, “delivering a tongue-in-cheek lecture on the basic tenets of banking” (FT) at the Euromoney Awards, where Santander was named ‘World’s Best Bank’.


Happy Birthday Woody Guthrie

“I hate a song that makes you think that you are not any good,” he explained in Ed Cray’s popular biography Ramblin Man. “I hate a song that makes you think that you are just born to lose…I am out to fight those songs to my very last breath of air and my last drop of blood. I am out to sing songs that will prove to you that this is your world.”More at Wired Magazine

Sounds like leadership to me…


Describe your leadership in six words

Sir Terence Conran was once asked to describe himself in ten words. He replied ‘Ambitious, mean, kind, greedy, frustrated, emotional, tiresome, intolerant, shy, fat.’

Dan Pink says we can go even shorter in describing ourselves. He points to the book ‘Not Quite What I was Planning’, six word memoirs by a collection of people, both famous and obscure.

Now, this sounds trivial, but we live in a world of digest, where your leadership ‘brand’ has to be conveyed fast and deep. Remember Tom Peters’ powerful idea ‘Brand You’; that you have to brand yourself through your behaviour as a leader to stand out as unique, because the market tells us difference wins, sameness doesn’t?

So, here’s a useful exercise: what six words sum you up as a leader? Come up with six word then try them out on your colleagues to see if they agree. It’ll help you sharpen your leadership brand – aligning how others perceive you with how you perceive yourself as a leader.

Dan tried it at a business conference he was attending and these are a few of the replies. They aren’t specifically about leadership, but you get how it works by reading them:

* Did what I was supposed to.

* Happy, sad, angry, confident, really happy.

* Unsure, but you would never know.

I like that last one in particular – describes a lot of people in leadership positions.


My favourite Jack Welch story: When Jack Blew Up The Plant

One of the first things Jack Welch did as a 24-year-old manager of a GE plant was blow up the part of the plant he was responsible for.

The head of the plant called him to his office to explain.

Welch, assuming this was the end of his managerial career, duly explained that he was experimenting with a different mixture from the standard one and it had caused an explosion. The plant boss probed further, asking him why and what he had hoped to achieve.

Satisfied that Welch had

a) learnt a lesson from the experiment and

b) had practised sound thinking, just needed to adjust his risk analysis, the plant head protected Welch and he kept his job.

Welch says that act of leadership had a profound effect on him for the rest of his life. As head of GE, Welch championed experimentation, learning from mistakes and not blaming people if an attempt at something new went wrong…unless they repeated the same mistake more than once, that is.

Source for this story: My notes from a conversation between Jack Welch and the journalist Kirsty Wark. She had spotted the story in his book Jack, Straight From The Gut and so asked him about it. A secondary learning point: he tells that story to make it clear that leaders are not infallible and need to admit to their own mistakes – admit their own fallibility – if they are to create a culture in which others are honest and admit to mistakes, too. Otherwise you get the myth that the leader can’t be wrong and everyone covers up evidence to the contrary, and also never admit that they themselves are wrong.


Heroes or Villains: Does the workplace make them?

“Heroes don’t have a special personality. They are not more compassionate, more altruistic, more or less of anything. They are simply people that in a particular situation where most people, observing something bad, do nothing, then the hero is the one who steps out of the crowd and challenges the definition of the situation, challenges the authority, dissents, defies, rebels and does not comply.”

That’s psychologist Philip Zimbardo talking to BBC Radio 4 in an interview this week.

Zimbardo is famous for the classic Stanford Prison Experiment when back in 1971 he turned the university basement into a fake prison where the young men playing the guards soon started abusing the people they were told were their prisoners. He showed how much circumstances can distort how individuals behave and how, given complete control over others, anyone can act as a monster.

Now he’s turned his attention to how to create environments in which people do the opposite – act heroically. His definition of ‘a hero’, above, maps onto the everyday leaders carrying out acts of leadership up and down the organization, regardless of position, that we need today.

I can’t reproduce a transcript here of much more of the item than the quote above without breaching the BBC’s copyright. But, if you have Real Player installed and go to this link, you should be able to listen to it yourself. After you hit the link, below, and once you are in the BBC site, look for the ‘All In The Mind’ programme title and click on that to listen again. If it doesn’t let you in jump down this page to the other link, which also lets you take this further:

BBC Radio 4, All In The Mind Programme, Thursday June 5th

In case that doesn’t work for you, this link, below, goes to a blog post from Zimbardo in which he talks about stimulating the heroic imagination.

“I believe that an important factor that may encourage heroic action is the stimulation of the “heroic imagination”– the capacity to imagine facing physically or socially risky situations, mentally struggle with the hypothetical problems these situations generate, and consider one’s actions and the consequences.”

Your role as a leader, then, becomes stimulating the heroic imagination in people – making them realise what they are capable of. There’s a clip in The Leadership Hub, on the Home Page at time of writing, that gives a fictional example of a teacher stimulating the heroic imagination – the belief that someone can take the lead and accomplish something great – in the movie Paying It Forward. Here’s the link to the Zimbardo blog post:

Philip Zimbardo on the heroic imagination


Sir Edmund Hillary and Sherpa Tenzing (or the other way around)

Yesterday, Google told me, was the anniversary of Sir Edmund Hillary and Sherpa Tenzing conquering Everest. I only mention this because Hillary died in January this year and the obituaries all talked about his combination of bravery and humility. His first words on descending the mountain were ‘We’ve done it” (or words to that effect – ruder words to that effect, in fact). Not ‘I’, but ‘We’.

Also, he would never say which of the two men set foot first on Everest, as he saw it as a team accomplishment. It was only long after Norgay Tenzing’s death that Hillary admitted that he, Hillary, had set foot on the summit first.

He spent much of his life after Everest building schools (30 of them), hospitals and bridges in Nepal, whose people made him an honorary Nepalese citizen. I think we learn from Hillary that great leaders think and act ‘We’ instead of ‘I’, and lead themselves and others to achieve extraordinary things, while not taking themselves too seriously.

He described himsef as a person of modest talents but great determination. And he decided to use his prominence to set up The Himalaya Trust and be a servant of the people of Nepal, which is an interesting example of servant-leadership.

Of course, it might have been Tenzing who was a or the great leader of that expedition (the official leader, an Englishman named Hunt, is largely forgotten), with the cultural bias of the time and the dominance of English-language media in the world, and the sherpas’ role as paid ‘helpers’, all combining to create the assumption that Hillary led, with Tenzing seen as his back up. Sherpas are guides, after all, and guides lead. We may never know. But, that’s a different point. And probably not an important one if we strip away the racial bias in how the achievement was presented to the world, which is, of course, important to at least be aware of.

Hillary’s character seems pure servant-leader to me, or Level 5 leader as Jim Collins would define that mix of humility and bravery and ongoing longterm commitment to the people of Nepal. Here’s some of the coverage after his death if you are interested:

BBC Sir Edmund Hillary obituary from January 2008


Business is the best art

I chaired a track session at European Customer Management World recently where part of my job was to interview Robert Stephens, founder of The Geek Squad. Here are a dozen learning points I jotted down from Robert on how to take a commoditized sector – IT service and repair – and create a cool, profitable, compelling, distinctive employee and customer experience.

Robert’s secret is that he deep themes his business, from the types of car his Geeks drive, to the way they dress, right down to the soles of their shoes. He calls his company ‘a living comic book’.

Clearly, stand-out leadership that creates stand-out organizations has evolved into something different from what it was. And by breaking the rules and treating everything as marketing (“Marketing is a tax you pay for being unremarkable”, he says), Robert seems to have re-invented marketing as well as leadership.

12 Learning Points from The Geek Squad on How to Create a Distinctive Customer Experience

1. Marketing when you have no money is the best kind of marketing. In 1994 when Robert started his IT support business, he had no money, just a mountain bike and a mobile phone to take him to his house calls. “That’s about as integrated as you can get. Everything you do in that situation is marketing.”

2. Marketing is a tax you pay for being unremarkable. Be remarkable – stand out – and you get free marketing. Because everything you do is marketing.

3. “Customer experience is the result of the employee experience. Every company is in the service business, no matter what you do.”

4. Create new rules: “I couldn’t afford to advertise. I’d never run a business before, so I had no rules to go by. I could see the company as a movie in my head. The Geeks were an audience I have to inspire, as are the customers. If you think of your companies as movie plots it is liberating.”

5. Dress the part. Our first uniform was a black SWAT jumpsuit. Our story is that we only turn up in an emergency, so it fit with the storyline. But, it scared the customers to death, so we softened it. Our uniform is now stolen from NASA – all those old black and white pics of NASA scientists huddled around the workstations in Houston, with short-sleeved white shirts, black ties…There’s something humble about that whole thing and we are a service culture. So, in the name of humility that’s how our modern day philosopher-kings, the Geeks, now dress.

6. Starve your teams on projects. They’ll be most creative that way.

7. Authenticity is one thing that can’t be copied.

8. Companies are now, in effect, focussed social networks for hire.

9. Replicating the DNA: We all need to be aware of the Founder’s Dilemma. Steve Jobs is reckoned to be 20% of Apple’s worth. What if he’s hit by a bus? My job is to influence and inspire the most efficient form of leadership. I’m a Geek too. When Iron Man comes out we all line up and go see the movie together. I’m a two-time college dropout. There isn’t that kind of separation between leader and led you might get in other organizations. My job is to lead by example and inspire. What the leader can do is influence and recognise people’s contribution. I’m the first director, if you will. But there are sequels, prequels, and other Geeks will direct those. We have one common purpose. There’s a Death Star called mediocrity. Our role is to blow it up with speed and quality.

9. Recruitment is the best form of advertising. We are starting to hold late night Kung Fu film festivals as a recruitment initiative, as the only people who go to schlock late night Kung Fu festivals are Geeks or people who know Geeks.

10. The three skills you can’t train for, that are essential for the Geek Squad, are: curiosity, ethics and drive. Curiosity in particular is that mix of enthusiasm and humility that is vital.

11. Recognize the importance of play: The key to innovation is play.

12. Most of the world is populated by boring businesses. I dropped out of art school because it was easier for me to be creative in a business setting. When companies are so boring, your opportunity to stand out by being interesting is enormous. Warhol said “Business is the best art.”


Tom Peters on Authentic Leadership

“It’s up to each of us alone to figure out who we are, who we are not, and to act more or less consistently with those conclusions.” – Tom Peters

I like that. It’s from Tom Peters’ ‘Thought For The Day’, which you can sign up to as a daily email here: Tom Peters site


17th April 1970: Houston, we no longer have a problem. Leadership and improvisation

A lot of leadership lessons have come out of NASA over the years.

Teamwork and innovation: Leadership and innovation consultants often remind their clients that NASA would get two teams to compete on coming up with an innovative solution to a problem and that the competitive element accelerated the innovation process, for example.

Connecting everybody’s job with the overall mission, vision and purpose: And then there’s the probably apocryphal story of JFK visiting NASA HQ at Houston and stopping to talk to a man with a mop in the corridor and asking “And what do you do at NASA?” to be answered by the janitor with “I’m helping put a man on the moon sir” – often used as an example of connecting people’s everyday jobs with the overall purpose of the organization and how critical it is for leaders to do that.

Set the vision even if you don’t have all the answers already: And, of course, there’s the famous promise by President Kennedy to ‘put a man on the moon before the end of the decade’ when the technology didn’t exist to do that.

I heard once from Mike Harris, who was founding CEO of the UK bank First Direct, and who was originally a scientist specialising in boron chemistry (and who is a brilliant organizational leader in the mould of Jim Collins’ Level 5 leadership) that Kennedy’s scientists said, among other things “But, we don’t even have a fuel that can take us to the moon and back!” And the answer was “Go and invent one, then”, which led to the creation of a whole new field of chemistry – boron chemistry – which led to the creation of the right fuel. Now, I’m not a scientist so I hope I’ve remembered that right and not garbled the science.

But, we also learnt from NASA about crisis leadership: If you’ve seen the film/movie Apollo 13, you know what I mean. If we leave aside for the moment the tragic subsequent deaths in the space shuttle years later, the way that the NASA team at Houston was led to save the lives of the astronauts in Apollo 13 after an explosion in the oxygen tank – using duct tape, plastic hose and cardboard to rig up a contraption to increase the oxygen (or decrease the carbon dioxide – can’t remember) in the Lunar module so they didn’t run out before landing – was inspiring crisis leadership at its best – with everyone in the project team taking the lead at different times under the guidance of the overall team leaders to do what seemed impossible.

It was April 17th 1970 – 38 years ago today – that the Apollo 13 lunar module splashed down safely.

Great reminder of the dramatic story in Wired here (including the fact that no-one said “Houston, we have a problem.” That was the movie version.)

We spend so much time planning, writing procedures, training people in competencies and so on for leadership. We forget how leadership in the field, in real life, often comes down to improvising with the resources you have available. And we forget just how powerful the ability to improvise can be in leaders at all levels during a crisis.


Leadership lessons from Humphrey Bogart

I was just thinking about this, this morning for some reason: There’s a scene in the film Casablanca that is an example of Jim Collins’ Level 5 leadership (modest, courageous, ego-lite leadership).

When a group of German soldiers start singing about the Fatherland in Rick’s nightclub, around the piano, the French people in the club, their homeland occupied, look downcast.

Victor Lazlo, the resistance leader husband (Paul Heinreid?) of Ingrid Bergman, walks up to the band and tells them to play the Marseillaise. The band leader glances across at Humphrey Bogart (Rick), sitting at a corner table. Bogart nods imperceptibly (well, it’s perceptible to the band leader; stop being so picky).

It’s his nightclub. This is a big risk for him to take. It’s a hidden act of leadership. The band starts playing the Marseillaise, gradually drowning out the German soldiers as, led by the resistance leader, the audience stand up one by one and noisily sing along. The German soldiers give up. For now.

This has always been one of my favourite scenes in a film and I have always thought that the grandstanding leadership of the resistance leader – admirable though it was – inspired me less than the little nod given by the hidden leader in the corner, who let it all happen, taking on a risk to himself and his livelihood, and took none of the credit for it.