Inside the Minds of
Rockstar CEOs
This book is dedicated to all the Co-Authors on this Philanthropy project that have just graduated or will graduate soon. Thank you for all your long days and nights of research work and hanging in there to complete this project.
SMASHWORDS EDITION
Copyright 2011 Capital Digital Media
Published by Capital Digital Media at Smashwords
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Table of Contents
Setting the stage on which we will learn valuable lessons based on the belief systems, positive attitudes, innovative actions and other characteristics of several business leaders who took the time to share their stories with us.
Chapter 1 - Be Outstanding In Your Field
Take a positive stand in your place of business and personal life. Be approachable by others and you’ll reap the benefits of new ideas they have to offer.
Chapter 2 - iPlayerHD - Wes Moore
Use leading edge technology when creating new products and services as Wes Moore does and your customer base will expand exponentially.
Chapter 3 - Procter and Gamble – Robert McDonald
If you are fortunate enough to step in to lead a company having a history of strong leaders in the past, continue that legacy. Add your own mark on the company through modernization, competitiveness, innovation and wise expansion.
Chapter 4 - TRI Commercial Real Estate - Tony Brettkelly
If you find yourself in an industry which has taken a negative direction, take brave innovative action get ahead of game and show the rest of the industry there is a better way.
Chapter 5 - Tesla Motors and SpaceX - Elon Musk
Be brave and steadfast enough to go where few if any have gone before and your success will be a beacon of inspiration. Dream big and put forth the effort to make those dreams a reality as Mr. Musk has done and you’ll become the Thomas Edison of the new millennium.
Chapter 6 – AIG’s Turnaround - Robert Benmosche
Demonstrate the bravery to take the helm of a large sinking ship and the wisdom and skill to resolve its problems and get it afloat again. Doing so for a company in danger of its own demise; the company, its employees, shareholders, and economic leaders will owe you a debt of gratitude beyond comprehension.
Chapter 7 - Black Elk Energy – John Hoffman
Combine your business acumen with generous doses of philanthropy, a sincere showing of how much you care for people and an acute awareness of environmental needs. Mr. Hoffman has shown how this can enrich oneself and the surrounding communities and result in continued prosperity for the company.
Chapter 8 - Capital Premium Audit – Glenn Farley
Be knowledgeable enough about your industry to identify its weak spots, imagine creative solutions and take action to implement those solutions. This will result in sizeable benefits for the companies you serve and rewards for yourself. Be aware of the world around you and seize opportunities early to expand your horizons.
Chapter 9 - Rockstar Tools – Dr. Rey Adorable
Invest time in yourself not only for you own well-being, but for the advantage of all those surrounding you. Combat stress, improve your health, get proper exercise and nutrition, relax your mind and learn to laugh. Doing these things will make you a happier and more effective individual, improving both your personal life and your business environment.
Chapter 10 - Lessons Learned From Our Journey
Additional leadership thought and a summary of what is to be learned from listening to success achieved by top performers and the things that got them where they are.
Appendix B - Author and Co-Authors
Introduction
“No man is fit to command another that cannot command himself.”
- William Penn
Chief Executive Officers understand the central paradox of exceptional corporate leadership: on the one hand, a company depends more on the CEO than on any other individual. On the other hand, the CEO is the one who must take the stand when anything goes wrong, regardless of who is at fault. Taking the stand may mean in front of all his or her employees, in front of the board of directors, in front of the press, or even testifying before Congress. The CEO has the responsibility to step forward and defend the position of the company and/or the company’s employees. The CEO should be the only one making the final call on really big decisions, but company employees often make important decisions about matters the CEO never sees, unless they result in significant successes or miserable failures.
As
CEO, your company is very much about you. If you don’t like the
limelight, get out of the position of CEO. You are the captain of the
ship and responsible for weathering the storms that occur on your
watch. Wise CEOs know they cannot do everything themselves, so they
must delegate important decisions and projects to others, and this
can be a double-edged sword. On the one hand, if CEOs get too close
to the action, they are criticized for micromanaging the troops. On
the other side of the issue, if their delegates make costly mistakes,
they can easily end up taking the blame. Therefore, a good CEO whose
pivotal decisions make major positive changes in the organization and
improve sales volume and generate higher bottom line profits should
be highly compensated. The high compensation packages being enjoyed
by many CEOs have drawn lots of criticism from an unsympathetic
population. In some cases, such criticism is deserved, while in
others it is not. In the latter case, the CEO must be able to brush
off the criticism and keep pressing forward.
Some
CEOs are reluctant to make changes because change means risk – many
times great risk. However, it’s a major sign that the current CEO
does not have the ability to lead when he or she lacks ability to
formulate positive changes or bravery to execute those changes.
Managing the results of previous CEO’s risks that went awry may
seem easier because they were not the fault of the current CEO and
many people are aware of that fact. However, as unfair as it may
seem, the incoming CEO must step forward and assume responsibility
for fixing the problems without placing the blame on others. To be a
Rockstar CEO, one must know how to lead and make choices that often
become unpopular with people who either don’t understand the
underlying facts or have their own agenda. Many CEOs fail to grasp
the need to walk an often shaky tightrope in front of them; yet it is
one of the biggest and best ways to be seen as a Rockstar CEO.
Life is about change, and in order to grow and prosper, positive change is essential. We have met several CEOs that don’t want to rock the boat or make any changes. It’s a rule of thumb that ineffective CEOs last about 36 months before they get moved out of the way, unless the company experiences a disaster inside that 36 month grace period which spotlights the inability to make good choices. Then it can be adios amigo in short order.
In
this book, you will discover what makes a leader a great one. We have
found the mediocre CEOs stay that way because they are not proactive
enough to take the company forward. They may be critics of the status
quo, but are too risk averse to change it. Change is hard and it
takes great insight, time, effort, and sometimes just pure intuition
to make it happen. We live in an ever-changing world, and change is
growth. If you are not changing, you are not growing. Most people
hate change because they fear what it means to them and will fight it
every step of the way. If you are not changing suppliers, changing
the way you generate business, changing the way you handle customers,
and even changing the company’s direction when any of these things
are causing negative outcomes, you are moving backwards.
Chapter 1 – Be Outstanding In Your Field
“People who cannot invent and reinvent themselves must be content with borrowed postures, secondhand ideas, and fitting in instead of standing out.”
- Warren G. Bennis
There
are two ways in which you can be outstanding in your field. I should
point out that “outstanding” does not always mean excellent or
superior. In this case, it means standing out, and that could be
either positive or negative. Unsure about this? Just look up the word
outstanding in the dictionary and you’ll quickly find both positive
and negative spins on the term. You’ll find synonyms such as
unresolved (e.g. a long outstanding problem), unpaid (e.g. unpaid
bills are considered to be outstanding – AKA past due), and
conspicuous (i.e. standing out from a group.) Of course, this latter
example can be either negative or positive. In this book, we’ll of
course be concentrating on the positive side of this coin.
The
negative way to be outstanding in your field is to do nothing and be
left behind. The positive way to be outstanding is to be an
aggressive front-runner. Front-runners take calculated risks and
dream of ways to handle things in a more productive manner. This
requires change. Successful CEOs understand they cannot do it all
themselves; they need a cooperative team working together, and
marching toward common goals. The best way to create a team
environment is to ask department heads and key stakeholders for their
ideas on improving the business – things like improving
productivity, eliminating processes that add no value, cutting
expenses, improving customer service, increasing revenues, and many
more. This sounds rather simple and straightforward, but understand
the most important aspect of this strategy; if this posture is seen
as insincere or just another case of lip service, it will die a
sudden death with no chance of resurrection. If people believe they
will be heard and their suggestions honestly evaluated, some of the
amazing ideas will surely come forth. Of course, you will almost
certainly get many unrealistic and even stupid ideas. The way you
handle the good, the bad and the ugly will determine the success or
failure of the teamwork initiative. Chastising well-meaning
individuals who come forth with crazy ideas is a sure way to also
stop the flow of good ideas, so tread carefully.
Picking
up the phone and asking a customer what you could do to improve your
product or service, and what they like or don’t like about your
company can be a real eye opener. Be forewarned that you may be
opening the door for a barrage of negative venting, but don’t lose
your cool and get defensive. Once they see you genuinely care about
their opinions, both positive and negative, you’re likely to find
some real gems. Ideas from outside the walls of your company can be
even more valuable than those generated internally. One great idea
could double your income next year, and that idea could come from one
of your customers, suppliers or employees.
This
book is intended for business leaders, as well as aspiring CEOs,
whether they are executives looking for fresh ideas, employees with
the drive and potential to move up through the ranks, or those just
starting their careers and seeking success stories to help them chart
their journey. In each chapter, you’ll see how forward-thinking
executives found many creative ways to create new products, venture
into new markets (even in uncharted territory), cut expenses and
increase company revenues. The primary goal, at least in the private
sector, is profits. Keys to higher profits frequently lie in areas
outside of sales increases and cost reductions. Improving a company’s
reputation may take longer to show positive effects, but those
effects can be dramatic and long lasting. Improving customer service
and making it easier for people to do business with you are two of
important steps. In the chapters that follow, you will find great
insights in actions these companies and their executives have taken
to enhance their reputations. Surprising to many is that these
actions and belief systems seem to have little or nothing to do with
the company’s bottom line.
As a consumer, does it matter to you if the company with whom you’re doing business is giving anything back to the community? For most people, the answer is yes.
Companies that actively engage in philanthropic activities such as donating time and money to charitable activities, sponsoring community events, and taking positive actions to care for the environment earn the honor of being good corporate citizens. The more these activities are viewed as selfless generosity by the public, the greater the positive effect will be. Benefits gained by the company will be long term. It takes a sustained sense of community responsibility year after year to cement this positive relationship between the company and consumers.
There
are great executive search firms out there that are looking for new
stories and really great executives. The best CEOs to recruit are
those who are making positive changes and improving both the bottom
line and the company’s public image. If you are below the fold in
the newspaper, you are newsworthy, though not as much as if you are
above the fold. Your résumé is built on what you have accomplished
for your company. Your income is based on your achievements while you
are an executive. Those who want to improve their income, and the
legacy they leave behind, must continually strive for higher
achievements based on solid action plans. None of the CEOs we’ve
interviewed for writing of this book were one-hit wonders. They all
have interesting stories to tell and all have a common thread: their
success stories depict a natural progression of greater and greater
achievements. As they built their careers step by step, their incomes
increased accordingly.
The reason we go to school, attend seminars, read books and stay abreast of cutting edge technologies is not only to improve performance but also to increase profits. We’ve all heard that money can’t buy you happiness, but there is no premium on poverty, either. The reason you invest your time, effort and talent in your occupation is largely about profits; not just profits for their own sake, but what they can buy for you and your family to make your lives more enjoyable. It’s difficult to help your family or friends if you don’t have money to accomplish your goals.
To
be successful in business, you need to stay informed in many
different areas: current events, economic trends, governmental
activities, competitor movements, social changes, and the like.
Unfortunately, staying informed means we must read about the negative
along with the positive, and it always seems like the former far
outweighs the latter. Day after day, the fear generators bombard us
about the sad state of the economy and the projection that it’s
only getting worse. Add to that the bad news about the constant
warfare and political unrest in places like the Middle East and the
terrible conditions in the world’s impoverished countries, and one
can see how all this negative information takes a toll on all of us.
It is necessary for us to unplug from this on a regular basis to
sustain a positive frame of mind. Without relief from this negative
inflow, we risk becoming depressed and negative.
In
addition to the stress brought to us by fear generators, executives
who are busy making changes in their companies get a double dose of
tension. Bringing about change takes a great deal of time, effort and
patience, which can be very taxing on our minds and bodies. The mind,
as much as a muscle, needs time to relax. The best way to build
muscle is rest. While your body is exercising rigorously, you are
tearing the muscle. To recover from this, one needs rest and protein.
If you are continuously tearing muscle tissue, you are not healing.
The healing occurs only when you replenish the muscle tissue with
relaxation and a proper diet and rest. This is just as true for the
mind as it is for the rest of the body. In the chapters that follow,
you will hear some of our executives talk about the importance of
this.
It’s
imperative for busy executives to take some down time for themselves
on a daily basis. Turn everything off and just relax. Most people
with whom we discussed this therapy suggest it be done in the morning
before the daily hustle and bustle comes thundering into the picture.
Getting this calming quiet time early gets the day started off in a
positive way. Other executives prefer to take a few moments of rest
in the middle of the day. We realize this is often easier said than
done because successful executives typically have type ‘A’
personalities and want to hit the road running as soon as possible.
Developing this pattern of taking downtime most days will take some
discipline, but without it we’re exposing ourselves to more harmful
stress.
Regardless of the time of day you take the needed relaxation time, the manner in which you use that time need not always be the same. Some days, you may want to dedicate the time to spiritual thought. Other days, you can try mind-relaxing meditation. Or, you may want to devote the time for soul searching and thinking about what makes you happy and what’s really important in your life. Others prefer exercise. All of these techniques bear wonderful results. Very few of us are models of perfection in this area. Sometimes, we get caught up with matters that seem more urgent and forget what it was that brought us to this level in our lives. We get sucked back into being too busy to devote the time necessary to regenerate.
While writing this book, we thought about what CEOs need the most. We feel it is most important for chief executives to be reminded of their key position as the leader. Rockstar CEOs are always looking out for everyone on their team and the most important persons they always overlook is themselves. Almost all CEOs are hunters as opposed to being gatherers, and as such they want to explore. In exploratory ventures, it’s not the trip itself that’s important; it’s the success of getting there – and ideally, getting there first.
How many times have you tried putting something together before reading the assembly instructions? Be honest – it’s happened to us more often than not. We feel confident in our ability to get the job done ourselves. All leaders want to lead, but sometimes we have no real detailed directions on how to do this effectively. Ever find yourself getting into the car heading for a destination to which you’ve never before driven, and relying on your intuition rather than a roadmap? We have just encountered another trait of many CEOs, especially those with an entrepreneurial mindset. Relying on one’s intuition to get the job done is great when it results in a positive outcome. Many CEOs have an uncanny ability to pull this off on a regular basis. However, this approach is not the wisest course of action. Rather than venturing out for destinations unknown, the driver really needs a roadmap. In business, this roadmap comes in the form of a detailed business plan. Careful planning greatly increases the odds of success. As you read the success stories of the CEOs in this book, think to yourself: could this executive have been this successful without a well-constructed plan?
Chapter 2 – iPlayerHD – Wes Moore
“All of the books in the world contain no more information than is broadcast as video in a single large American city in a single year.”
Rockstar
CEOs know if they change the way they have been doing things from the
old school way to an innovation-rich environment, they can make huge
improvements in their companies. One of the most effective ways of
accomplishing this is by using the new tools and techniques
continuously becoming available on the market. These improvements
cover a broad spectrum: more effective marketing, better internal and
external communication, expansion into international markets,
improved supplier and customer relationships, broadened sales
channels, increased employee productivity, speedier deliveries, lower
direct and indirect costs, and many more. What this means from a
bottom line standpoint is increased sales and higher profits.
Let’s
start by taking a look at brand awareness and marketing. New
technology can help a company get a boost in this area. One of the
best ways of achieving this is setting up an information network
about your product or services. Rockstar CEOs will be among the first
to embrace this opportunity and continue to push the envelope as even
better technology emerges. People are searching online in a mad rush
for information. Consumers have changed the way they buy goods and
services, and information is what they are seeking before they buy.
Social networking has revolutionized interpersonal communications,
which means good news, bad news and personal opinions spread faster
and wider than anything we have seen in our lifetimes. The explosion
in shared video clip availability is a huge part of the new
communication world. Videos are the perhaps the most effective way
to connect to your consumers – if a picture is worth a thousand
words, what is a video clip worth? These videos run 24/7 and are
always there for your potential customers whenever they are ready to
be informed. However, it’s very important that you keep the
consumers engaged in your product so they don’t just slip away. We
are in a new cyber-based economy and the majority of consumers seem
to have a major case of A.D.D. – Attention Deficit Disorder. If
they don’t feel engaged or entertained, they will quickly get
distracted and jump to something else that catches their eye. Bang!
You’ve just lost a revenue opportunity. That is why it is essential
to use an Internet platform rather than the public domain video
hosting sites such as YouTube or Vimeo. Both are excellent sites for
sharing videos with friends and family, but bad choices if you want
to create brand awareness and have your consumer engaged with your
company and products.