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WHARTON LEADERSHIP DIGEST 

June, 2006, Volume 10, Number 9 

CONTENTS 

His Finest Moment:  Eisenhower's Decision to Invade Normandy  

Leading a Company:  An Interview with Brian Blake, CEO of New Zealand's DB Breweries

Leadership Lessons from Survivors:  'Climbing on the Mountain's Schedule, Not Ours'

Wharton Leadership Conference:  June, 2007
 

His Finest Moment:  Eisenhower's Decision to Invade Normandy  

By Ed Ruggero 

Dwight Eisenhower was fifty-three years old in the spring of 1944 when he commanded the Allied Forces poised for the invasion of France.  During those early June days, he set a keen example for leaders everywhere.  He radiated optimism, kept his cool, and sought input from his subordinates when making decisions.  But it was in a private moment -- preserved for us almost by accident -- that he showed the leader's most important trait: character. 

[What follow is excerpted from The First Men In: US Paratroopers and the Fight to Save D-Day, by Ed Ruggero (HarperCollins, June 2006)]. 

During the weekend of June 3-4, the pressure on Eisenhower reached almost unimaginable levels, but he continued to show an optimistic face to the world.  He had long ago determined that one of the principal jobs of the commander was to be optimistic at all times, and he remained upbeat in all of his meetings and especially in his visits with the troops.  But his staff saw the toll the pressure put on the old man.  Ike chain-smoked four packs of cigarettes a day, drank pots of coffee, suffered from headaches and a sore throat.  His staff made every effort to get him outside for some exercise, even if it was just a walk or a horseback ride, to relieve some of the stress.

On June 4 Ike got another unpleasant surprise when Churchill announced his intention to observe the invasion from the HMS Belfast.   Although Eisenhower had himself considered going ashore late on D-Day (and would go ashore by D + 6), the thought of the Prime Minister exposing himself to enemy fire -- or being close enough to interfere with the plan -- was too much.  Eisenhower asked Churchill to reconsider.  The PM said that he would sign on as an able seaman, since Ike did not control the muster rolls of individual British ships. 

When King George VI learned of Churchill's intentions, he came to the rescue of the American Commander.  The King sent a message to Churchill saying that while the King would never presume to tell the PM where and how he should serve, his majesty thought it only fitting that as titular head of the empire's armed forces, he, too, should observe the battle from close up, and he looked forward to joining Churchill on the Belfast.  Churchill relented, and at least one of Ike's problems went away.  

At the late evening briefing on Sunday, June 4, Group Captain Stagg [staff meteorologist] told Eisenhower that there would be a window of clearer weather opening up over Normandy late on June 5.  While overall the weather would remain poor, visibility would increase and the winds die to a point that made the invasion possible. 

Admiral Ramsey pointed out that if the invasion was to proceed on June 6, he needed to give his ships movement orders in the next thirty minutes.  Ike polled his commanders, who were hesitant, but determined that the invasion should proceed.  Montgomery was perhaps the most effusive in support of going, but the final decision was Eisenhower's. 

The staff officers left the room, leaving the commanders behind.  Eisenhower was quiet, mulling over the most critical decision he'd ever had to make.  If the weather turned against them and derailed the invasion, it was quite possible that the Allies could lose the war in the west.  At the very least, the fight would drag on for a few years more. 

The room was silent.  Bedell Smith, Ike's chief of staff, later recalled that the only sounds were the wind and the rain pounding Southwick House while his boss wrestled with the momentous decision. 

"I am quite positive we must give the order," Ike said.  "I don't like it, but there it is…  I don't' see how we can do anything else." 

With that, the invasion was on -- contingent on a final weather brief the next morning.  Eisenhower's subordinates rushed from the room to set things in motion. 

Just hours later the officers reconvened; it was still possible to postpone the invasion if the weather forecast had changed.  Stagg reaffirmed his prediction: there would be a window of acceptable weather.  Eisenhower sat in silence for a few moments on a sofa.   

"Well, Stagg," he said, smiling, "If this forecast comes off, I promise you we'll have a celebration when the time comes." 

Then, after a brief discussion, Ike said, "OK, we'll go." 

                                                ### 

Sometime during that day, Eisenhower, left alone with his concerns as the vast machine he'd put in motion rolled toward France, pulled out paper and pencil to compose a note he hoped never to use.  It was a message to be read in the event the invasion failed. 

Ike wrote, "Our landings in the Cherbourg-Havre area have failed to gain a satisfactory foothold and the troops have been withdrawn." 

The original draft of the note, saved by Eisenhower's naval aide, shows that Ike crossed out this use of the passive voice, substituting instead a bold claim to personal responsibility.  The sentence now ended with, "I have withdrawn the troops." 

Eisenhower continued in this way, the commander taking personal responsibility for the actions -- and the failure -- of the nearly two million people involved in the vast operation. 

"My decision to attack at this time and place was based upon the best information available.  The troops, the air and the navy did all that bravery and devotion to duty could do.  If any blame or fault attaches to this attempt it is mine alone."   

Eisenhower's reputation and place in history were guaranteed by what happened over the following year on the large stage that was the war in Europe, and in his two terms as President.  But this note, with his shouldering of specific, personal accountability, may have been his finest moment as a leader. 

Note:  Ed Ruggero can be reached at edruggero@comcast.net.
 

Leading A Company:  An Interview with Brian Blake, CEO of New Zealand's DB Breweries  

By Lester Levy 

Brian Blake has served as chief executive of New Zealand's DB Breweries since 1993, a company that holds about half of the country's beer market.  Lester Levy, chief executive of Excelerator: The New Zealand Leadership Institute of the University of Auckland, interviewed Blake for the autumn, 2005 issue of the University of Auckland Business Review, from which the following is an excerpt:  

Levy:  What is leadership to you in the context of DB? 

Blake:  Leadership at its core is developing a vision of the future along with the strategies to achieve it. To me the leadership challenge at DB is to align the aspirations of the individuals working for DB with the vision of DB.  Unless I can create an environment where those two factors can be interwoven, we will have difficulty in taking the company to where we want to.  

In essence I think leadership is about creating a culture where people can realize their full potential and where that potential can be harnessed to achieve the company's vision. 

Levy:  In what ways do you see it as being different to management? 

Blake:  To me management is more about structures, systems and processes, the basics of getting your business right. Leadership complements management by establishing very clearly the vision and the strategy and then inspiring and motivating people towards the vision that has been created.  

Leadership to me is more about the motivational aspect of realizing human potential. 

Levy:  When you recruit, do you look for management capacity and leadership capacity in different ways, or do you place a particular emphasis on one or the other? 

Blake:  We do have an emphasis and it is more on attitude. When I am recruiting for senior positions I normally take it as given that those people will have the required competencies for the role.  If we are looking to employ a marketing manager, then obviously, the range of candidates that we would give consideration to have the appropriate experience and training in marketing. 

What I look closely at is their attitude and passion for joining DB and wanting to make a difference within the company.  The reason I focus more on attitude is not to end up with a situation where you have people simply managing to the status quo. We want to recruit people who can create new dimensions of performance, which in my view, relates more to leadership capacity. 

Levy:  What key principles characterize your leadership? 

Blake:  Articulation, alignment and decisiveness are at the core of my leadership. 

It is really important that you are able to articulate a vision for your people. They want to know where the company is going and more than that, to really understand the direction and the reasons for that direction.   

People have a deep need to understand where the company is headed, because unless they have that real understanding they will not be willing to fully engage. Also, and of critical importance, they want to be part of the process of developing that direction. 

The process that we use in DB, although not consensus, creates genuine participation. I spend a lot of time with people right through the organization creating opportunities for them to express their opinions about where they think we should be going.  I know people want to have a say in the direction that we are heading and I believe they need that opportunity and it must be a genuine opportunity. 

As a leader, having set the direction, they want you to be decisive in the way you manage and lead the company. It is vital to establish a high level of trust across the organization if you are to harness the potential of the people who work within your organization.  

The workforce wants to see consistency in your decision-making. I don't believe that people like surprises.  

Levy:  In your own growth as a leader, when do you think you experienced the most growth and why? 

Blake:  I have grown the most when I have been under pressure.  One of the necessities of growing as a leader is experiencing situations during your career where you are really tested. In the early days of my tenure, when DB was really struggling, in what I now call the survival phase, many people said to me there are easier ways to make a dollar.  There are companies in far better shape than this. I could have walked away from the incredibly tough situation, but to me there was a compelling challenge in turning the company around. I learned so much during that period, about myself, about how to create success through creative thinking, teamwork, hard work and perseverance. 

One of the core elements of leadership is persistence.  You need to have the inner strength and energy to keep going, if you fundamentally believe in something. You need to keep focused on heading in the right direction and not deviate. I learned in the early days, that things just need to be done and you have to get on and do them.   

When you are under pressure you learn a lot more than when you are in a winning streak. I am certain that I learned more in that early phase where we were really struggling to survive as a company.  

Levy:  What is your current biggest leadership challenge? 

Blake:  The challenge is, having emerged first from the survival phase and then the strategic phase, to realize the potential of the people that we now have.  I think it was Jim Collins who said, "get the right people on the bus".  At DB I have a first class management team, probably the best management team I have ever had.  My challenge is to optimize the potential that exists in the management team, to really take the company to the next level of performance. 

From a leadership challenge, I suspect I have all the management basics in place and the strategy is sound … it is the human capital and getting that focused as a collective capacity, to operate in the most creative way in order to achieve new breakthroughs in performance. 

Levy:  What changes have you noticed in people's expectation of you as a leader over the last five years? 

Blake:  People expect to have access to me. At DB, most people, not everyone, but most people feel that they should be able to come and see me, or ring to talk about something. 

People expect me to communicate regularly as to where the company is, what has changed and where we are going.  They expect to hear from me on all emerging issues.  If they don't, then they will ask "what has happened to Brian and why is he not talking to us about this.

We have worked hard on these communication issues and as a company we are now very good at company-wide communication. We over-communicate … if that is possible.  We have now established an expectation that the lines of communication will always be open. 

I think people expect me to be consistent with my decision-making. I have created   expectations around decision making that were not there five years ago. 

Levy:  Have you ever made a significant bad hiring decision that you regret? 

Blake:  Yes. That is interesting in the context of discussing the lows I have experienced.  

I had a situation in the early nineties when we employed someone and at the time we were not totally convinced that they were the right person.  That was an incredibly costly mistake. At first it takes you time to accept that you have made a mistake.   

What you tend to do is to initially rationalize it by saying this person has good industry experience and has now exposed weaknesses in particular areas.  I suppose in a nice way you are giving them the benefit of the doubt and you then try to start to work on their weaknesses.  You then realize that you have made a mistake in appointing them in the first place and in the New Zealand environment that takes time to fix.  

Once fixed, you have to go back to the market and find somebody else.  If you make that mistake at a senior level of a company like DB, you have probably lost eighteen months of time, which is significant if you consider the overall performance impact of that. 

What I learned from that is to be incredibly rigorous in recruitment.   

Your filters and your checks for recruitment need to be incredibly strong and robust, to reduce the chances of making the wrong decisions.  We are now very robust in this area … again learning from mistakes made.   

A good recent example is our search for a general manager of marketing last year.  It took us six months to find that person.  I just kept saying that I would not compromise my decision until I had found the right person.  I would rather be without someone for six months than make a compromise appointment. 

Levy:  Who have been key influencers in your career?  

Blake:  I have worked over the years for very, very good bosses and I have worked for a couple of very bad ones. There is absolutely no doubt that you learn as much, if not more, from the bad ones as you do from the good ones. You watch a particular boss in action and you say I would or I would not do it that way ...  I can see the impact it will have. 

For me personally though, I have been lucky in that DB has had very good boards and I have had excellent directors with a broad range of experience.  Their constant input and feedback to me has been very, very important in my own leadership development.  

Levy:  In your view how important is self awareness to leadership effectiveness and how do you develop your own self awareness and that of others at DB? 

Blake:  We have been doing 360 degree assessments and feedback at DB for some time and it is now quite comprehensive. I think it is critical and for me it is good because as a CEO you have always got to be aware that people in your company will approach you and treat you in a certain way.   

You need to be very careful that the way in which people in the company approach and treat you, does not camouflage some of the weaknesses that you have as a person. A 360 degree assessment and feedback system, provided it preserves anonymity, will allow you to get candid feedback and build a more accurate self-image of yourself.   

Without this type of feedback you can easily be blinded to some of the weaknesses that you have and that cannot be good for the company.

Levy:  When this happens, when you get the feedback about a blind spot, how do you respond yourself?  

Blake:  The initial response is usually some form of self-denial, particularly if it is a surprise, but then I   take time and think about how to address it. This may involve talking to some of my people to gain a clearer understanding which will help me change. 

I do not think you can just carry on in the same way and ignore it, otherwise the whole 360 process becomes meaningless. 

Levy:  What would you say to CEOs who do not want to undertake this kind of assessment because it exposes them and their management team to frank and direct feedback? 

Blake:  You are denying yourself the opportunity to improve your performance.  I would imagine if you had a CEO who was particularly autocratic in their management style and was reluctant to undertake 360 feedback, then they would be heading for troubled waters sometime in the future.       

Avoidance is not going to solve the problem. If it is treated as an early warning system to identify blind spots, then it can be a very constructive process. 

The other thing to mention is that as you employ new people out of the marketplace these days, they will more than likely have been involved in the process previously and already have had feedback.  You will almost seem to become somewhat antiquated in your leadership style if you do not do 360 degree assessments.  

Levy:  What do you have in place in DB to support and stimulate the development and leadership within the organization

Blake:  Well this has been interesting. When I talk with people who are new to the organization I say that although they may not always work for DB, while they are here the contract is that they add value to us and we add value to them. They may go through our ranks, go on to work for Asia Pacific or Heineken or end up working for somebody else.  

Realistically we are not that big a company that everyone will get all their career opportunities with us. If we have someone with us for a short period of time or a long period of time, we will commit to their development.  

We invest time into helping people develop while they are with us and that is good for the individual and DB gets the benefits of that.  We are not a company that takes the view that we should not develop these people, because someone else is going to come in and take our good people.  That is a risk any business takes. 

More recently we introduced the leadership development group. We started this three years ago and that was quite a breakthrough for the company.  Philosophically we had to ask ourselves whether within the DB culture we could take a group of people and actually set them apart and say we are going to accelerate their development. Would they be perceived as crown princes and princesses within the company?   

We felt that if we were serious about taking DB to a higher level, becoming a high performing company, then we had to have the courage to stand up as an organization and say these people have been identified to receive a range of opportunities to accelerate their leadership and management development. We also made it clear that if they did not measure up they will be dropped from the development group. We felt that was constructive to that high performing culture that we were trying to develop. 

What we have done more recently is introduce a leadership and management development program for some of those people who are not yet ready for the top group. It will take them out of their comfort zone and place them in cross functional groups.  Hopefully that will help them grow and become the next logical group to enter the high level leadership development program. 

Note:  The full interview can be found in the University of Auckland Business Review.
 

Leadership Lessons from Survivors:  'Climbing on the Mountain's Schedule, Not Ours'  

By Knowledge@Wharton 

At Wharton's 10th annual leadership conference on June 13, the theme of "Leading with Resilience: Coming Back from Challenge and Adversity" brought together speakers who had faced hardships in a number of different areas. Perhaps none of the speakers, however, had experienced as much physical danger as David Breashears, filmmaker and mountaineer, who recounted how he and his team survived one of the deadliest accidents in the history of Mt. Everest.

 

"So where does a mountaineer and filmmaker fit into this conference?" Breashears asked. "Resilience, excellence, determination, conviction, resolve" -- words that are often used to describe a successful team anywhere, whether on Wall Street or on a cliff. "The mountain has been my workplace," said Breashears, adding that his high-altitude pursuits have taught him a few things about planning and leadership. Another speaker at the conference -- organized by Wharton's Center for Human Resources and The Center for Leadership and Change Management -- was Sylvia M. Montero, who recounted her own journey from a farm in Puerto Rico to a position as senior vice present, human resources, at Pfizer.

 

The Best-laid Plans

 

Climbing the world's highest mountain under normal circumstances requires months, sometimes years, of preparation. In May 1996, Breashears and his team faced a special challenge: making an IMAX film about their journey. Carrying and maintaining hundreds of pounds of filming equipment meant that planning was even more meticulous than usual. "We went to that mountain with a great plan, an elegant plan," said Breashears. For one, it was flexible. "A good plan makes you nimble, not stuck. Ours gave us options ... wiggle room."

 

By rehearsing extensive "what if" scenarios long before they got to the mountain, the team was ready for the unexpected. So when a freak storm hit the day they were to approach the summit, Breashears' team turned back while other teams kept climbing. With the summit just within reach, the temptation to go on was enormous, Breashears recalled, especially since the team had already spent weeks on the mountain, passing through all four base camps and acclimatizing their lungs to the thin air. Yet, as Breashears noted, "We had to climb on the mountain's schedule, not ours," an acknowledgment that probably saved his life.

 

As Breashears' team went back down, they passed several other teams on their way up. By nightfall, eight people had perished, including Rob Hall, a world-renowned climber and friend of Breashears. Hall was leading a group of individuals who had paid him a substantial fee to lead them to the top. Jon Krakauer, a writer and outdoorsman who was on Hall's team, would eventually write the best-selling book Into Thin Air, chronicling in heartbreaking detail what had gone wrong.

 

Among the tragedies of that day was one event that many later described as a miracle. The storm that had hit as Hall's ill-fated team made its ascent caused many of the climbers to become separated. One small group was in desperate trouble: They had lost their way in the blinding snow and had run out of oxygen. In an attempt to save their own lives, they made the difficult decision to leave behind one of their team members, Beck Weathers, a doctor from Texas. By all accounts, Weathers was already close to death. He had no pulse and appeared to be frozen in the ground.

 

The next morning, however, as Breashears and his team helped with the rescue efforts for those teams still on the mountain, word came on the walkie-talkie that "the dead guy is alive." Weathers had spent the night in sub-zero temperatures fully exposed to the elements. The next morning, as the sun hit the mountain, he awoke from a hypothermic coma and, despite snow blindness and severe frostbite on his hands and feet, managed to stumble into camp. He was eventually flown off the mountain in a helicopter rescue that had its own share of danger and drama.

 

Having reached the summit of Mt. Everest five times, Breashears knows what he wants in a team. Surprisingly, he's not necessarily looking for the best climbers. "I look for talented people who believe in their craft, not those who are looking for praise," he said. "The most important quality is selflessness. I knew that no matter what, no one would leave me behind," he joked.

 

Sharing a common goal and vision is critical, and no one's ego can take precedence. "People who say 'me first' can be dangerous on Everest." Indeed, in Breashears' experience, the teams that operate best have a higher objective than themselves. Humility makes a great leader. "The kind of leader I want wakes up and asks, 'What did I do wrong yesterday, and how can I fix it today?' Your team doesn't need to like you, but they have to trust and respect you," he said. "A leader who puts his interests first is a highly demoralizing force."

 

Seeking Guidance from Others

 

Sylvia M. MonteroFar from Tibet, speaker Sylvia M. Montero, senior vice president, human resources, at Pfizer Inc., has had her own mountains to climb. She spent the first eight years of her life on a farm in Puerto Rico where her father struggled as a sugar cane farmer. "We were poor," she said. "We just didn't know it." After moving to New York City with her family, it became obvious to Montero that she was both poor and a member of a minority. The knowledge of this, and what it can do to your sense of self worth and self-esteem, she said, had an impact on her childhood. "Children internalize subtle messages. I had a sense that I couldn't compete with people who were more prosperous."

 

Although she did well in high school, Montero never imagined going to college until a high school counselor advised her to apply to Barnard. She did, and received a full scholarship. But college life for her was different than it was for most others. She lived at home and took the subway to and from school; she married in her first year and became a mother in her second year. "I lived between two worlds," she said, "a co-ed by day and a married mother who lived in a drug-infested tenement by night." Straddling these two worlds, Montero made a decision: "I chose to actively participate in what happened to me."

 

She returned to Puerto Rico after the breakup of her marriage and taught literature for many years. When an opportunity to join a small pharmaceutical firm emerged, she took it. In her first 15 years with the company, which was eventually bought out by Pfizer, Montero was given "numerous opportunities for growth. I traveled around the world and had the chance to live abroad, including China, where I set up the company's first HR function." As she moved up the corporate ladder, she was often the first female or first Hispanic in the job, a fact that often weighed heavily on her. "I was deeply aware of" of being a minority, "and that concern often held me back." Each time she found herself in this defensive position, she had to recharge herself. "I purposely decided that I was not going to allow it to be an obstacle."

 

In the past few years, as Pfizer weathered the challenges and opportunities that come with mergers (two in the space of three years), Montero has been able to access the lessons that adversity taught her. From her first mentoring experience with her high school counselor, Montero continues to seek guidance from others. She has worked with the same business coach for years. In him, she found a "thinking partner, someone who challenges me and helps me work through strategies," she said. She also does a lot of listening, perhaps a vestige of her early years in business when self-doubt but strong will emboldened her to learn as much as she could by asking questions.

 

The approach has served her well. Today she is responsible for the overall strategy and development of company-wide HR policies and also oversees leadership development, compensation and benefits for the company's 120,000 worldwide employees. Asked whether her current financial situation -- from a poor farmhouse in Puerto Rico to the executive suite -- has changed her, Montero did not hesitate. "Yes," she responded, "but not in the way you might think." Montero says she probably takes more risks because she is not preoccupied with wealth. "If I lost it," she reflected, "it wouldn't be scary because I have done without." 

Note:  This article in the June 28 edition of Knowledge@Wharton can be accessed here.
 

Wharton Leadership Conference:  June, 2007 

The 10th annual Wharton Leadership Conference on June 13 focused on "Leading with Resilience" and drew more than 300 participants, and we are already planning our next annual conference for June, 2007. 

We would be interested in learning what theme you would like to see our next leadership conference focus upon.  The themes for our recent conferences have included:  

   Leading with Resilience, 2006  

   Leading with Creativity and Conviction, 2005  

   Leading in an Era of Uncertainty and Change, 2004 

   Leading with Integrity, 2003  

   Leading in All Directions, 2002  

   Developing Leaders, 2001  

   Leading with Speed, 2000  

   Building Top Management Teams, 1999 

   Leadership Capabilities for Winning Companies, 1998 

If you would like to suggest a theme for the 2007 conference, send an email message with "Leadership Conference" in the subject line to Kay M. Dowgun, Associate Director of the Center for Human Resources (dowgun@wharton.upenn.edu).  If you have suggestions for specific speakers, they would be appreciated as well.   

If you would like to be updated directly about the 2007 leadership conference, please send a message with "Conference Update" in the subject line to Kay Dowgun.  If you have colleagues that might benefit from also knowing about our next conference, please also email their names and email addresses (we will only contact them in reference to the Wharton Leadership Conference and never share the information).   

As a token of our appreciation for the "update" information, we will send you and your suggested colleagues an advance chapter from the upcoming Wharton School Publishing book entitled Success Built to Last: Creating a Life that Matters by Jerry Porras (co-author, along with Jim Collins of Built to Last), Stewart Emery, and Mark Thompson.  We'll also include a special value coupon for the any books on website of Wharton School Publishing.

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 University of Pennsylvania

 

 
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