Presentation given to The Conference Board's Leadership Development Council in June, 2011 in New York City.

1. Developing Organizations & Leaders Who Can Manage at the SPEED OF NOW John Bernard, Chairman & Founder Conference Board June 2011

2. Creating an organization that moves as the speed of customer’s changing needs What are the implications to structure, functions and collaboration? How does this redefine the role of leaders and the very function of leadership? What roles does social media play and how do leaders use it to learn and lead?

5. The Era of MASS CUSTOMIZATION The Era of MASS PRODUCTION The GREAT RECESSION www 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

6. Manufacturing Jobs as a % of U.S. Employment (1) Number of Potato Chip Flavors in the World’s Markets (2) 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 24 22 20 18 16 14 12 10 8 6 4 2 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 SOURCE: (1). U.S. Bureau of Labor Statistics (2). Mass Ingenuity THE CHIP DIP

7. “This economic crisis doesn’t represent a cycle. It represents a reset. It’s an emotional, raw social, economic reset. People who understand that will prosper. Those who don’t will be left behind.” Jeffrey Immelt, CEO, General Electric

8. YES NOW

9. MOON EARTH 238,857 miles 1.26 seconds SPEED OF LIGHT 186,000 miles per second 671 million miles per hour 1,079 million kilometers per hour

11. Easy Hard EASE OF YES CUSTOMER LOYALTY IN THE NOW Slow Fast SPEEDOFYES

14. Skills & Knowledge

15. Access to Data

16. Plans & Ownership

18. Goals & Strategies

19. Priorities

21. Tone

23. Management’s work MUST BE COMPLETE before the NOW Moment arrives. M O M E N T

24. NOW THEN Managerial Hierarchy Customer Need DRIVER Functional Process Centric ORGANIZATION Centralized Decentralized DECISIONS Big Ideas Micro-Improvements IMPROVEMENT Management Everyone Ad Hoc, Intuitive USE OF DATA Standardized, Fact Based PROBLEM SOLVING Slow Fast SPEED

25. Leaders are facing the most complex organizational challenges in their lives AGGRESSIVE GROWTH REDUCED COSTS IMPROVED CUSTOMEREXPERIENCE

26. Stakeholders are demanding to be heard like never before Demanding Transparent & Highly Responsive Behavior

27. Dissatisfaction of any stakeholder puts the business in peril TALENT REVENUE CAPITAL

28. ACTIVELY DISENGAGED ENGAGED 18% 33% NOT ENGAGED 49% SOURCE: Gallup Consulting Failing Miserably OUR ALIENATED WORKFORCE

29. HIGH-ENGAGEMENT ORGANIZATIONS ABSENTEEISM TURNOVER (low turnover org.)TURNOVER (high turnover org.) SHRINKAGE SAFETY INCIDENCES QUALITY (Defects) CUSTOMER RATINGS PRODUCTIVITYPROFITABILITY -37% -49% -25% -27% -49% -60% +12% +18% Difference Between Top and Bottom Quartile Performance +16% SOURCE: Gallup Consulting

30. Eliminating the Sins Unclear Direction No Line-of-Sight Unclear Accountability Inconsistent Language Poor Issue Transparency Inappropriate Resources Inadequate Tools/Skills 7 Deadly Sins of Management

31. Every Time Every Employee Every Opportunity

32. OPPORTUNITY Real-Time Visibility Transparency Clarity IMMEDIATE EFFECTIVE ACTION Accountability Alignment OBSTACLE

33. Clint Thornton

34. What do we as leaders need to do to enable a NOW Mindset?

35. Well trained Clear rules of engagement Full permission Total support

36. SOCIALMEDIA Sets a NEW STANDARD ACCESS Makes the conversation that has been going on anyway, public.

38. DAVE CARROLL BREAKS GUITARS

40. Is Management or Leadership at United Airlines failing? How?

41. The NOW Mindset See the NOW Moment Have the desire to act Have the confidence to act Have the skills to act Have the support to act Taking the right action at the time when action matters most

42. 7 Stages of YESability 7. Own the Solution 6. Own the Problem 5. Take Initiative 4. Suggest Solutions 3. Voice Opinions 2. Understand Orders 1. Follow Orders TOLD PERMITTED EXPECTED

43. The Nature of Individual Freedom TOLD PERMITTED EXPECTED NONE SOME TOTAL What are the implications to response time?

44. FREEDOM ORDER People know how to seize opportunities and solve problems People understand and respect the way the organization functions T R U S T

45. a count ability …skills to do the job …skills & resources to solve problems …authority to take action …to count …to number …to measure

46. PROBLEM OPPORTUNITY NOW Mindset THEN Mindset “That’s our policy” “We can solve this problem” “I have no authority” “I know how to handle this” “No one will listen to my idea anyway” NO YES “Let me see what I can do” “I know it doesn’t make sense but that’s the way we do it” “My team can get this done for you”

47. ACTION Context for Action Bias for Action Organizational Goals Opportunity Obstacle External Customer Internal Customer Truly Accountable Measured that Focus Skills, Knowledge, Tools No Fear Safe to Act Boss Backing

48. MANAGEMENT SYSTEM PURPOSE Prioritize, connect, enable, and drive the execution of all work, ensuring that every resource is focused on the goals and that every human beinghas the maximumauthority to act

51. Social Media & Leadership Get ready for Social Media INSIDE the organization Full-on offerings in a private network The outside world inside

52. Social Media Tools OUTSIDE INSIDE

53. What do you think are the implications to leadership and leadership development of full-on social media INSIDE the organization?

54. Execution Management Social Media INSIDE FUNDAMENTALS BREAKTHROUGHS PROBLEM SOLVING

55. Instant Transparency & Peer Accountability CLOSED-NETWORK SOCIAL MEDIA Line of Site Accountability for My Project Work Line of Site Accountability for My Routine Work In Real Time Visibility to Tasks Coming Due on My Projects Real-Time Access to the Organization for Knowledge Access/Exchange & Innovation Real-Time Access to My Team for Knowledge Access/Exchange & Innovation

56. How do leaders lead and learn in this kind of an environment?

58. Departmental

59. Level

60. Customer

62. The Neuroscience of Change SHARED VISION Receptivity to Change Heightened Learning Pro-Social Behavior Dopamine “Squirt” Skills Improvement Performance Improvement Self-Esteem Sense of Belonging Teamwork Heard Dopamine “Squirt” Written Down Dopamine “Squirt” Spoken

63. The Five Shifts Leading into the NOW 1 2 3 4 5

64. SHIFT ONE: From “No” to “Yes”

65. SHIFT TWO: From Disconnection to Full Engagement

66. SHIFT THREE: From Know-It-All to Fellow Learner

67. SHIFT FOUR: From Frozen Layer to Fear Defroster

68. SHIFT FIVE: From Command to Inspire

69. Leaders must increasingly be able to operate and manage in the NOW FOCUS IS ON EXECUTION Execution Management Social Media INSIDE Winning Combination

70. AGGRESSIVE GROWTH REDUCED COSTS IMPROVED CUSTOMEREXPERIENCE

71. Questions & Answers