Thursday, October 13, 2011

Stand Up Guy: Bob Galvin, former CEO of Motorola


With the news of the passing of Bob Galvin, the man who built Motorola into a global leader in pagers, cell phones, and infrastructure, it's a good time to recall some of the conversations I had with him when I was doing research for my book, Why Smart Executives Fail.  You can access some highlights of the case here.  Bob was the Chairman of the Executive Committee of Motorola's board of directors at the time when he agreed to a series of interviews with me.  Of the some 200 CEOs, board members and other senior leaders I spoke to, my recollections of our conversations stand out today.

Why?  Rather than come up with all sorts of excuses about why Motorola lost its way when mobile technology shifted from analog to digital in the 1990s, Bob made it clear that "we really missed it."  He was not CEO, but he felt personally responsible.  He told me about how, when he was a child, his father (the founder of Motorola) would come home from the office and they would sit around the kitchen table talking about what happened that day.

Bob's description of the Motorola culture on his watch was, "a healthy spirit of discontent."  And yes, he did ruefully acknowledge that by the time of the cell phone debacle (Motorola went from 60% market share and industry dominance to a bit player that still hasn't recovered), that the culture was long gone.  That his son, Chris Galvin, was one of the people responsible for the cell phone collapse made him sad, but he also didn't shy away from questions on the subject.

Today, when we see how Research in Motion continues to live in a bubble of their own making, first laughing about the iPhone, later arguing that it was for a different customer when it became clear the iPhone was here to stay, we are reminded of how a stand up CEO deals with adversity and change.

Leadership Insights – New Video Interview with Mickey Drexler, CEO of J. Crew


At the Tuck School of Business, we have many leaders – across industries – come visit the school and our students.  During their visits, I make it a point to interview these leaders, asking them about their careers, greatest challenges and what it takes to be a great leader in their field.

The first video in this series I’m going to share is an interview with Mickey Drexler, CEO of J. Crew.  Mickey shares his thoughts on J. Crew’s competitive landscape, his greatest mistakes and the experiences that helped shape his career.  Mickey also shares his thoughts on Steve Jobs, describing him as a great inventor and leader “who could simplify everything.”

I’ll be posting more videos over the next few weeks, so be sure to look out for these interviews.

Syd
Twitter: @sydfinkelstein

Wednesday, October 12, 2011

Man Bites Dog: RIMM Shareholders Actually Do Something!

I read on Bloomberg News yesterday about how Research in Motion shareholder Jaguar Financial Corp. is gaining support from other investors to push Research in Motion to sell, divide or find a merger partner.

Although it’s not news that Research in Motion has been tanking, it’s empowering to finally see shareholders standing up for their stake in the company, by joining forces and pushing for change. 

Just last week, in my Top Management Teams class at Tuck, Eric Jackson, a shareholder activist and founder of Ironfire Capital, LLC, shared his views about why ineffective boards stay in power for longer than they should.  What (may be) happening at RIMM is a rare example of at least one active shareholder pushing for more accountability on the board and management team to face reality and start to address the new world of 2011, not the old one of 2006.  Now, let’s see if Jaguar can get some traction.  Good luck!

Thursday, October 6, 2011

The day after - Reflecting on the loss of Steve Jobs


We’ve spent most of last night and today reading about Steve Jobs.  Twitter and Facebook are buzzing with posts, updates and videos remembering him.  The reaction is akin to what happens when a major head of state dies – instead of supporters gathering outside government buildings, we see people across the globe mourning Jobs by placing apples and flowers outside Apple stores.   I can’t help but think when else in history has the loss of a CEO resonated so broadly? 

I’m often asked about Steve Jobs and what accounts for the success of Apple with Steve Jobs as the visionary and leader. It’s a hard question to answer – he broke the rules when it came to customers, product design and the role of a CEO. 

But, in two recent interviews at the Tuck School of Business, I asked this very question to two visiting executives – Mickey Drexler, the CEO of J.Crew, and Eric Jackson, Founder of Ironfire Capital.   Here are their thoughts. 

Wednesday, October 5, 2011

Steve Jobs

We will be reading all sorts of testimonials and obituaries about Steve Jobs, the driving force behind the most innovative information technology company in the world. All I would say, tonight, is that when my students at the Tuck School at Dartmouth College, or executives in various programs and seminars I lead around the world, ask me about Steve Jobs, all I can say is that I have no theory to explain what he does and how he does it. He broke the rules - on how to think about customers, on product design, on the role of the CEO, and many more - and with very few exceptions, it worked.

Don't concern yourself with what customers are demanding, give them what you know they want.

Don't worry about dominant technological designs, go your own way regardless.

Don't let yourself become the primary driving force in your company, make it easy for others to challenge you.

This is a playbook that doesn't follow any of the standard management principles, and I'm not sure breaking all these rules would work for anyone else. As Apple board member and CEO of JCrew Mickey Drexler told me tonight, "He is an extraordinary loss to the world."

Two videos clips to share from last night's class


A big thanks to those who were able to join my live online class last night – it was a great success! Although it was the last class of the trimester for my students, there was tremendous energy and insight in the classroom.  We reached an online audience in the triple digits, and I hope the conversation in the classroom translated well over the Web.  

Our guest speaker, Eric Jackson, could not have been more engaging or a better expert on the topics we discussed.  We’re working on more video highlights of the class, but today, I’ve got two terrific clips to share.

Why do organizational systems break down?  Why BP, UBS, et al.? Why were so many clues never put together before 9/11?  Why do companies sometimes lose track of the lost signals they need to adapt and compete?  The first clip (click here to watch) tackles these issues, with special reference to my book Why Smart Executives Fail.  If you watch, pay special attention to the great insights from my students as we consider the challenge of accountability in organizations.

The second clip (click here to watch) highlights an interesting discussion that ensued in my class after we received some comments from online participants.  It’s a deep dive between Eric, the students in my Top Management Teams class and me on Research in Motion.

We’re working on posting more videos over the next week, so be sure to check back often. 

Additionally, since last night’s class is a new format at Tuck, we welcome any and all feedback.  Your thoughts will help us as we work to create an online live streaming experience of real value to people around the world.  You can share your thoughts with me here, or on twitter: @sydfinkelstein. 

Monday, October 3, 2011

Live Streaming My Class Today - Tuesday, October 4th

As you know, in my blog I write about leadership and strategy – discussing timely topics like executive mistakes, momentous decisions in business and in politics, and what makes for great, and terrible, leadership.   This forum, however, is not all that I do!  I am extremely fortunate to be on the faculty of one of the world’s leading business schools, working with terrific students on a regular basis.

If you want to get a glimpse into the MBA classroom, and a deeper dive into leadership and strategy, I invite you to join us as I broadcast my class live (via streaming on the Internet) today at the Tuck School of Business.  The goal is to share with you the provocative conversations I have each week with my students, and to even participate in these discussions by submitting a question.  You will also be able to submit questions live during the class.  Focusing on Top Management Teams – the ruling party at any organization – we will explore why smart executives sometimes do really dumb things, with special attention to Research in Motion and Yahoo. 

Details on the class are included below, as well as reading materials in case you’d like to “prep” before the class.

I hope to “see” you there today!
Syd (follow me on twitter @sydfinkelstein, #sydtuck)

Class Details:
Date: Tuesday, October 4
Time: 4:45pm – 7:45 PM EST

Guest Speaker: Eric Jackson, Shareholder Activist, and Founder and Managing Member, Ironfire Capital LLC Hedge Fund

Schedule of Session Content (times are approximate):
4:45pm – Why Smart Executives Fail
5:45pm – Research in Motion: Past, Present and Future
6:45pm – Yahoo and Carol Bartz

Join the live online class here!

Materials to help you prep for class:

Research in Motion in 2007

Readings:
Chapter 1 of my book "Why Smart Executives Fail"
"Detractors of BlackBerry See Trouble Past Patents" (Source: The New York Times)

Discussion questions:

  • What made RIMM so successful prior to 2007?  Was the iPhone really a threat to these strengths?
  • What were the warning signs of problems at RIMM in 2007?
  • How would a co-CEO structure affect the WSEF dynamics we've discussed in class?
  • RIMM is based in Waterloo, Canada, a town of about 100,000 people.  How might that location affect the WSEF dynamics?
  • After beating back the Palm Treo, Microsoft WinMobile, and other phone providers like Samsung and Motorola prior to 2007, why should RIMM have feared Apple?

  • Yahoo and Carol Bartz in 2009

    Readings:

  • What did Yahoo need in January 2009?
  • What should have been Carol's priorities right off the start?
  • What do you think would have been the biggest risks facing Carol off the bat?
  • If you were on the board and you hired Carol, what would have been the best compensation package for her - given that Yahoo was criticized for having paid outgoing CEO Terry Semel $600m for his 5-year tenure?
  • In what ways do you think Yahoo in 2009 resembled Autodesk in 1992? In what ways were they different?

  • Contact us if you have any questions.