The success formula

Praise for The Success Formula “Andrew Kakabadse’s book offers unique insights and practical suggestions Success, particularly in turbulent and unpredictable environments, is driven by value and decisions anchored to value A recent parliamentary commission on future of management identified people, purpose, and potential as drivers of success This book offers practical suggestions in all three areas.” Professor Abby Ghobadian, Head of School of Leadership, Organisations and Behaviour, Henley Business School “In front of the ‘hard’ leaders are the smart leaders A world filled with smart leaders.” Yvon Pesqueux, Professor, Conservatoire National des Arts et Métiers, Paris, France “Understanding what makes a successful organisation is vital in today’s fast changing environment – The Success Formula explores the relationship between, values, evidence, strategy and engagement.” Lesley King-Lewis, CEO, Windsor Leadership “Finally we have a book which recognizes that organizations cannot achieve genuine sustainability unless social value is given equal weighting to shareholder, other stakeholder and financial value If there is a strong values base, diversity of thinking and effective governance, organizations can build long-lasting success.” Simon Osborne FCIS, Chief Executive ICSA “This book contains a multitude of insights concerning success that Andrew has derived from interviews with senior managers from over a 100 organizations in 14 countries It provides much useful advice as to how to recognize successful organizations and how to determine what is required to make success a reality.” Dr Chris Pierce, CEO, Global Governance Services Ltd., London “Kakabadse’s extensive global research shows how few top companies have a proper engagement with their stakeholders and his evidence reveals the great and sustainable success arise from so doing A must read for the C suite and the Board.” John Board, Dean of Henley Business School “Once again, Dr Kakabadse’s in depth research draws out governance and dynamic governance insights, helping us to drive value in our companies.” Yasmin Allen BCom, FAICD and Company Director, IAG, Cochlear and Santos Ltd “The evidence-based account, and unparalleled access, of Professor Kakabadse cuts like a knife to the very heart of this complex and frequently misunderstood subject This book is a must read for anybody attempting to come to terms with organizational success - or failure.” Dr Ian Richardson, Director of Executive Education, Stockholm Business School, Stockholm University “I read The Success Formula with great interest, and recommend it to any business manager who seeks to ensure the health and continuity of the enterprise he/she leads Andrew Kakabadse’s guidelines in this book strike me as convincing and eminently practical.” André van Heemstra, Former member of the board of Unilever “This book is about leadership, about sustaining vision and values to deliver consistent quality, about the humility to respect the team and the intellectual rigor to challenge its certainties This is a manual on how values generate value.” Dr Ilia Roubanis, Athens “The Success Formula is a refreshing read for those leaders committed to employee engagement and transformational results It underlines the role of the leader in building alignment and delivering results based on trust, authenticity and a clear Organisational purpose.” John Pollaers, Chairman of the Australian Advanced Manufacturing Council and Former CEO of Fosters Group and Pacific Brands “There a few books which combine such outstanding academic knowledge and real world experience on leadership as this one Government and business leaders in Europe should use it when preparing for the challenge to bring back economic growth and social progress.” Dr Stefan Schepers, Secretary General of the independent tripartite High Level Group on Innovation Policy Management (2012–2014) “Andrew and David have produced seriously worthwhile insights and a global perspective on success They focus on reality coupled with sound delivery processes as a basis for successful decisions and that’s just the beginning!” Peter Jollie, Director, Reliance Rail “Kakabadse has produced yet another outstanding work, cutting through the complexity of leadership to the heart of the issue to provide an accessible and actionable formula for success.” Robert Galavan, Professor of Strategic Management, National University of Ireland Maynooth The Success Formula The Success Formula How smart leaders deliver outstanding value Andrew Kakabadse Bloomsbury Information An imprint of Bloomsbury Publishing Plc LON DON • N E W DE L H I • N E W YOR K • SY DN EY Bloomsbury Information An imprint of Bloomsbury Publishing Plc 50 Bedford Square 1385 Broadway London New York WC1B 3DP NY 10018 UK USA www.bloomsbury.com BLOOMSBURY and the Diana logo are trademarks of Bloomsbury Publishing Plc First published 2015 © Andrew Kakabadse, 2015 Andrew Kakabadse has asserted his right under the Copyright, Designs and Patents Act, 1988, to be identified as Author of this work All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage or retrieval system, without prior permission in writing from the publishers No responsibility for loss caused to any individual or organization acting on or refraining from action as a result of the material in this publication can be accepted by Bloomsbury or the author British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN: HB: 978-1-4729-1684-6 ePDF: 978-1-4729-1686-0 ePub: 978-1-4729-1685-3 Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress Design by Fiona Pike, Pike Design, Winchester Typeset by Deanta Global Publishing Services, Chennai, India Contents About the author xi Acknowledgmentsxiii List of figures  xix Forewordxxi Prefacexxiii Introductionxxv ╇ Understanding value ╇ Diversity of thinking 23 ╇ Discipline 1—Evidence 43 ╇ Discipline 2—Mission 61 ╇ Discipline 3—Alignment 75 ╇ Discipline 4—Engagement 95 ╇ Discipline 5—Leadership 113 ╇ Discipline 6—Governance 131 ╇ Discipline 7—Wisdom 151 10 Key questions 177 Notes183 Index187 Notes Chapter ╇ Crainer, Stuart (2011), “Leading with purpose,” Business Strategy Review, Autumn ╇ Drucker, Peter (1985), Innovation and Entrepreneurship New York: Harper & Row ╇ “Value Maximization, stakeholder theory, and the corporate objective function,” working paper -01-01 HBS October 2001 ╇ Porter, Michael and Kramer, Mark (January 2011), “Creating shared value,” Harvard Business Review, 89: 62–77 ╇ D’Aveni, Richard (2012), Strategic Capitalism New York: McGraw Hill ╇ All quotations are from research interviews unless otherwise stated ╇ Crainer, Stuart (2011), “Mining success,” Business Strategy Review, Autumn ╇ Dearlove, Des (2012), “Builders not bankers,” Business Strategy Review, Autumn ╇ Loomis, Carol (2005), “Why Carly’s big bet is failing,” Fortune, February 10 Quoted in Denning, Steve (2011), “The dumbest idea in the world,” Forbes.com, November 28 Chapter European Board Survey 2014 (2014), Heidrick & Struggles Europe European Board Survey 2014 (2014), Heidrick & Struggles Europe Ha, Julia and O’Brien, Anne Lim (2011), Heidrick & Struggles Governance Letter, Q3 Chapter Kanter, Rosabeth Moss (2014), tweet from@rosabethKanter, August 14 Chapter Yardley, Ivan, Kakabadse, Andrew and Neal, Derrick (2012), From Battlefield to Boardroom Basingstoke: Palgrave Macmillan Franken, Arnoud, Paton, Chris and Rogers, Simon (2010), “How the UK’s Royal Marines plan in the face of uncertainty,” Harvard Business Review website http://www.hrb.com, November 184 Notes Zook, Chris (2013), Interview, http://www.thinkers50.com Bennis, Warren (1989), On Becoming a Leader Reading, MA: Addison Wesley Sidey, Hugh (1980), “The task of the leader,” Time, October 20, p 39 Collins, James C and Porras, Jerry I (1996), Built to Last: Successful Habits of Visionary Companies New York: HarperBusiness Senge, Peter, Roberts, Charlotte, Ross, Richard B., Smith, Bryan J and Kleiner, Art (1994), The Fifth Discipline Fieldbook: Strategies and Tools for Building a Learning Organization London: Nicholas Brealey Publishing Kakabadse, A., Kakabadse, N and Lee-Davis, L (2005), “Visioning the Pathway: A Leadership Process Model,” European Management Journal, 23(2): 227–302 Chapter Lashinsky, A (April 17, 2006), “The Hurd Way: How a Sales-Obsessed CEO Rebooted HP,” Fortune, 153(7): 83–8 Chapter Kim, W Chan, and Mauborgne, Renée (2014), “Blue Ocean Leadership,” May, https://hbr.org/2014/07/ from-blue-ocean-strategy-to-blue-ocean-leadership/(Accessed: 20.07.2014) Victor Lipman, (2013), “Why are so many employees disengaged,” Forbes, January 18, p For further information on dialogue, Plato and Socrates, read: Kakabadse, N and Kakabadse, A (2003), “Polylogue as a platform for governance: integrating people, the planet, profit and posterity,” Corporate Governance: The International Journal of Business in Society, 3(1): 5–38 Chapter There is an article by Rosabeth Moss Kanter which also uses this terminology “Managing Yourself: Zoom In, Zoom Out,” Harvard Business Review, March 2011 Kellerman, Barbara (2004), Bad Leadership Boston, MA: Harvard Business School Press Chapter Berle, Adolf A and Means, Gardiner C (1932), The Modern Corporation and Private Property New York: Harcourt, Brace & World Gelter, Martin (2008), “The Dark Side of Shareholder Influence: Toward A Holdup Theory Of StakeÂ� holders in Comparative Corporate Governance,” Economics, and Business Fellows’ John M Olin Centre For Law, Discussion Paper Series, Discussion Paper No 1707/2008, Cambridge: Harvard Law School Notes 185 Grechenig, Kristoffel and Martin, Gelter (2008), “The Transatlantic Divergence in Legal Thought: American Law and Economics vs German Doctrinalism,” Hastings International and Comparative Law Review, 31: 295–360 Stout, Lynn A (2013), “The Shareholder Value Myth,” Harvard Law School Forum on Corporate Governance and Financial Regulation, January 26, http://www.blog.law.harvard.edu/corpgov/2012/ 06/26/the-sharholder-value-myth/ Grechenig, Kristoffel and Martin, Gelter (2008), “The Transatlantic Divergence in Legal Thought: American Law and Economics vs German Doctrinalism,” International and Comparative Law Review, 31: pp 295–360 Kakabadse, Andrew and Kakabadse, Nada (2008), Leading the Board Palgrave, p 182 ShareSoc (2013), Chair and Non-Executive Director Guidelines, January Bhagat, C and Kehoe, C (2014), “High-performing bars: What’s on their agenda?,” McKinsey Quarterly, April, pp 1–5 Chapter Schwartz, Barry and Sharpe, Kenneth E (2005), “Practical Wisdom: Aristotle Meets Positive Psychology,” Journal of Happiness Studies, 1–19 Kakabadse, N K., Knyght, R and Kakabadse, A (2013), “High-performing chairman: the older the better,” in Kakabadse, A and Van den Berghe, L (eds), How to Make Boards Work: An International Overview Basingstoke: Palgrave Macmillan, p 352 Strauch, B (2010), The Secret Life of the Grown Up Brain: The Surprising Talents of the Middle-Aged Mind London: Viking Power, Marianne (2010), “The midlife brain surge that means we DO grow wiser as we get older,” Mail on Line, July 27, http://www.dailymail.co.uk/health/article-1297847/The-midlife-brain-surge-meansDO-grow-wiser-older.html Jeste, D (2010), “Why the wise man takes up juggling in old age,” Hastings International and Comparative Law Review, 31(1), http://ssrn.com/abstract=1161168 (Accessed: 20.07.2014) Kakabadse, N., Knyght, R and Kakabadse, A (2013), “High-Performing Chairman: the Older the Better,” in Kakabadse, A and Van den Berghe, L (eds), How to Make Boards Work: An International Overview London: Palgrave, pp 342–59 Index Achleitner, Paulâ•… 78, 92 action-focused debating teamâ•… 56–7 agency theoryâ•… 135 alignmentâ•… xxvii, 17–19, 43, 75–7 closeness of relationshipsâ•… 87 vs engagementâ•… 81 of Hewlett-Packard, case exampleâ•… 81–2 information andâ•… 88 integrating engagement withâ•… 91–2 key elements ofâ•… 78–81 meaning ofâ•… 77 network supportâ•… 88–9 personal experience, role ofâ•… 89 position in success formulaâ•… 77 process ofâ•… 78 repercussions ofâ•… 81 being ruthless and disrespectful forâ•… 89 shift of thinkingâ•… 87–8 of strategy and structureâ•… 82–3 of structuresâ•… 80 of systemsâ•… 80–1 of thinkingâ•… 82–3 of thinking between the key playersâ•… 78–9 working through politicsâ•… 86–9 see also engagement alternative energyâ•… 84 Aristotleâ•…151 Armstrong, Neilâ•… 68 banking and valuesâ•… 7–8 being driven, notion ofâ•… 165 Bennis, Warrenâ•… 68 Berle, Adolf The Modern Corporation and Private Â�Propertyâ•… 134 Bhagat, Chintaâ•… 148 bilateralizationâ•…161 black letter lawâ•… 136–7 Blue Ocean Leadershipâ•… 99 Bower, Josephâ•… 153–4 brain’s processing capacityâ•… 161–3 Burke, Edmondâ•… 88 Burns, James McGregorâ•… 127 Cadbury, Sir Adrianâ•… 139 CEO, questions forâ•… 177–80 chairman, questions forâ•… 180–1 Chipman, Stephenâ•… 157–9 Christensen, Clayâ•… 153–4, 167 Cicero, M T.â•… 95–6, 159 Clausewitz, Carl vonâ•… 62–3 closeness of relationshipsâ•… 87 collaborationâ•…109 Collins, Jimâ•… 68–9, 126 Good to Greatâ•…95 commander’s intentâ•… 64 commitmentâ•… 70, 95 competitive advantagesâ•… conformistâ•…80 contextual evidenceâ•… 52 see also evidence corporate center and diversity of thinkingâ•… 35–7 corporate governanceâ•… 138 corporate sustainabilityâ•… 141 crystallized cognitionâ•… 162 CSR policesâ•… 141 C-suite executivesâ•… 79 culture fitâ•… 79–80 culture of us and themâ•…54 Cunningham, Davidâ•… 35, 108–9 Dabaghi, Georgesâ•… 1–2, 33 D’Aveni, Richard Strategic Capitalismâ•…5 Lee-Davis, Lindaâ•… 70 Davis, Mickâ•… 10–11 delivered valueâ•… 11, 15–16, 44 delivery-led organizationsâ•… 84–6 deontological philosophyâ•… 164–5 dilemmas and wisdomâ•… 163–9 disengagementâ•… 101, 104 see also engagement disruptive innovationâ•… 153 disruptive technologiesâ•… 153 disruptive wisdomâ•… 153–5 diversity & inclusionâ•… 84 diversity of contributionâ•… 39 diversity of knowledgeâ•… 39 diversity of thinkingâ•… xxvii, 22–3 components ofâ•… 29–39 international exposure andâ•… 31–2 as an issue of discussionâ•… 28–9 modus operandiâ•… 25–6 need forâ•… 39–40 open communication andâ•… 32–4 passion forâ•… 29–30 in relationship between corporate center and€its operational centersâ•… 35–7 road toâ•… 24–5 team forâ•… 37–9 see also global thinking Drucker, Peterâ•… dynamic governanceâ•… 137–42 characteristics to achieveâ•… 140 188 Index Elix, Dougâ•… 38, 97, 113, 115, 152, 156 engagementâ•… xxvii, 17–19, 43, 81, 96–8 benefit of addressingâ•… 110 as a by-product of good leadership and value deliveryâ•…98 dialogue vs debateâ•… 106–8 fair process andâ•… 99–101 foundations ofâ•… 105–6 individual’s ability to hear inâ•… 104–5 need for dialogue inâ•… 103–4 process ofâ•… 13 trust, significance inâ•… 105–6 see also alignment; disengagement ethical leadersâ•… 128 ethicsâ•…164 evidenceâ•…101 action-focused debating team for debatingâ•… 56–7 belief inâ•… 50–1 characteristics ofâ•… 50–9 collection timing ofâ•… 51–2 contextualâ•…52 culture of interrogatingâ•… 58–9 debating onâ•… 57–8 in developing knowledgeâ•… 49 importance and purposes ofâ•… 45–9 leveraging ofâ•… 59 as platform for independent debateâ•… 54–6 quality ofâ•… 52–3 rationalâ•…52 without detail, impact ofâ•… 49 evidence-based managersâ•… 45 evidence-led, approachâ•… xxvi evidence-led leadersâ•… 46, 48–9, 114, 126, 177–8 successfulâ•…60 evidence-led leadershipâ•… 43 evidence-led stakeholder engagementâ•… xxvi–xxvii evidence-led wisdomâ•… 151–3 expectations marketâ•… 14 fair outcomeâ•… 99 fair processâ•… 99–101 feedbackâ•… 70–1, 172–3 Fettig, Jeffâ•… 27, 84, 86, 132, 160 financial valueâ•… xxv, Fiorina, Carlyâ•… 12 Ford, Henryâ•… 3, 68 formulate, approachâ•… xxvi formulate leaderâ•… 47–8 Franken, Arnoudâ•… 63–4 front line managersâ•… 24 Gelter, Martinâ•… 135–6 general managersâ•… 24 Gerlich, Stephanâ•… 38–9 Gerstner, Louâ•… 113–14, 152 Gibson-Smith, Chrisâ•… 3, 115 global culturesâ•… 30 global managersâ•… 26 global thinkingâ•… 26–8 see also diversity of thinking goalsâ•…69 Goldsmith, Marshallâ•… 44 Goodwin, Fredâ•… 7–8, 45 governanceâ•… 43, 131 black letter law andâ•… 136–7 and board behavior in Russia, studyâ•…144–5 board governance practiceâ•… 134 company’s board, role inâ•… 146–8 criteria for appointments to boardâ•… 148 to executives/management teamâ•… 148 critical fault lines of enterprises andâ•…143–6 delineation of roles and dutiesâ•… 145 dimensions ofâ•… 131 drivers for achieving best practice Â� levelsâ•…138–9 dynamicâ•…137–42 Harvard Law School vs Harvard Business Schoolâ•…135 principles of corporateâ•… 131–6 spirit ofâ•… 139 Gustafson, Rickardâ•… 116–18 Heidrick & Strugglesâ•… xxv, 29, 38, 108, 110, 137–8, 161 capabilities as foundation of board’s ability to€performâ•… 138 company’s board, role in governanceâ•… 146–8 comparison with average- and poorperforming entities, high-performing organizationsâ•…147 Towards Dynamic Governanceâ•…140 Foundations and Building Blocks for High-Performing Boardsâ•…138 strategic direction of an organizationâ•…173–4 Hewlett, Walterâ•… 12 high-quality leadership, qualities of avoiding personal agendas and pet themesâ•…122–3 fostering a no-shame cultureâ•… 122 handling criticismâ•… 120 integrityâ•…117 managing expectationsâ•… 121 moral consciousnessâ•… 118 persuasive advocacyâ•… 118–19 positioning the argumentâ•… 120–1 reworking the argumentâ•… 121–2 transparency and sharing of evidenceâ•… 116–17 trustworthinessâ•…117 zooming-in, zooming-outâ•… 123–4 HP-Compaq mergerâ•… 12–13 Index 189 humilityâ•…95 Hunter, Jeremyâ•… 37 ineffective leadersâ•… 127 innovationâ•…138 integrityâ•…84 international exposureâ•… 31–2 Jensen, Michaelâ•… Kakabadse, Nadaâ•… 70 Kant, Emmanuelleâ•… 165 Kanter, Rosabeth Mossâ•… 51 Kehoe, Conorâ•… 148 Kellerman, Barbaraâ•… 127 key performance indicators (KPIs)â•… 35, 76, 81 Kim, W Chan Blue Ocean Strategyâ•…98–9 King, Martin Lutherâ•… 67 Kissinger, Henryâ•… 68 Kramer, Markâ•… Laxer, Richardâ•… 11 leadershipâ•… 43, 138 correcting badâ•… 128 high IQâ•… 114–15 instances of leadership failureâ•… 127–9 purpose andâ•… 125–6 qualities (see high-quality leadership, qualities of) sophistication andâ•… 115 learningâ•…95 process ofâ•… 157–8 wisdomâ•…160–1 listeningâ•…95 Livingstone, Catherineâ•… 32, 45, 48, 56–7, 85, 146 Lobo, Kevinâ•… 32–3, 51, 53, 58, 71–2, 78, 91–2, 96, 126 Mackay, Daveâ•… 80 Makhov, Vadimâ•… 33 management politicsâ•… 89–91 Marey, Alexeyâ•… 15 market shareâ•… xxv Martin, Rogerâ•… 14–15 Fixing the Gameâ•…14 Mathewson, Sir Georgeâ•… maturing wisdomâ•… 157–60 Mauborgne, Renèe Blue Ocean Strategyâ•…98–9 Mayfield, Charlieâ•… 61–2, 97, 140–1 Means, Gardiner The Modern Corporation and Private Â�Propertyâ•…134 Mehta, Darshanâ•… 49, 172 mentoringâ•… 131–2, 135 Meyer, Erinâ•… 26 The Culture Mapâ•…26 missionâ•… 43, 69 command principlesâ•… 62–5 difference between vision andâ•… 67–8 led enterprisesâ•… 71–2 lessons learned from leadersâ•… 65–7 organizational impactâ•… 65–7 in value delivery organizationsâ•… 61 see also vision mission-based organizationsâ•… 62 monitoringâ•… 131, 135 moral consciousnessâ•… 118 moralsâ•…164 myelinâ•…161 Napoleonâ•…62 NatWest Bankâ•… Neill, Johnâ•… 16, 50 Niebuhr, Reinholdâ•… 151 non-negotiable principles of behaviorâ•… 64 “nudging” othersâ•… 87 Obermann, Renèâ•… 49, 55–6, 75–7 open communicationâ•… 32–4 organizational chaosâ•… 70 organizational performance qualitiesâ•… 109 organizational successâ•… xxvii, ownershipâ•…133 Parker, Johnâ•… 118–19, 131–2 perceived valueâ•… 11–13, 44 performance-management processâ•… 84 personal convictionâ•… 70 persuasive advocacyâ•… 118–19 planning processâ•… 63 Platoâ•…151 politics definedâ•…86 understanding organizationalâ•… 89–91 Porras, Jerryâ•… 68–9 Porter, Michaelâ•… 4, profitabilityâ•…xxv proposition-based leadersâ•… 46 Prussiansâ•…62 quality of relationshipâ•… 100, 121 Rand, Ingersollâ•… 79–80 Rapp, Edâ•… 10, 30, 57–8, 72, 86, 125–6 rational evidenceâ•… 52 see also evidence real marketâ•… 14 reflective wisdomâ•… 156–7 relationshipsâ•…100 in alignmentâ•… 87 between corporate center and its operational centersâ•…35–7 culture of poorâ•… 104 within management teamâ•… 101, 104 190 Index positioning an argument inâ•… 120 see also engagement replicate, approachâ•… xxvi, 47 respectâ•…84 Russian banking marketâ•… 15 Sam Suâ•… 31–2, 43–4, 50, 59, 109, 156–7, 171 Schneider, Ulf “Mark”â•… 52, 62 “Selfish Business Units”â•… 70 Senge, Peterâ•… 68 senior managersâ•… 24 sensitivity dilemmaâ•… 166–7 shareholder valueâ•… xxv, 14, 135 shift of thinkingâ•… 87–8 social reasoningâ•… 163 social valueâ•… xxv Socratesâ•…151 spirit of winningâ•… 84 stakeholder valueâ•… xxv, 44 stakeholder value thinkingâ•… stewardshipâ•…135 Stout, Lynnâ•… 135 strategic tensionâ•… 102 strategizingâ•…178 strategyâ•… xxvii, 17–19 formulationâ•…45 vs strategizingâ•… 178 strategy-driven organizationsâ•… 84–6 Strauch, Barbaraâ•… 161 successâ•…91 best formula forâ•… 19–20 combination of strategy, engagement and alignment forâ•… 17–20 definition ofâ•… 1–2 importance of evidenceâ•… 44 leadership focusâ•… 17–19 strategy€+€(engagement€×€alignment) = value deliveryâ•… 20, 126, 175 Swannell, Robertâ•… 25, 33–4, 52, 107, 144 teamworkâ•…84 teleological individualâ•… 164 telescopic thinkingâ•… 156 Tennant, Sallyâ•… timing dilemmaâ•… 167–8 tokenismâ•…37 transactional mindsetâ•… 54 transparency dilemmaâ•… 168–9 trustâ•…86 two-day strategy retreatâ•… 47 Ukrainian banking marketâ•… 15 UK’s Rapid Reaction Forceâ•… 63 unethical leadersâ•… 128 Unipart Wayâ•… 16 value creationâ•… xxvii, 11–13 value deliveryâ•… xxvii value-enhancing visionâ•… 69 value for stakeholder groupsâ•… 24–5 value innovationâ•… 98 value organizationsâ•… xxv value proposition hypothesisâ•… xxvi value propositionsâ•… as delivered valueâ•… 15–16 flawedâ•…8–9 as perceived valueâ•… 13–15 testingâ•…9–11 valuesâ•… 2–4, 69 banking andâ•… 7–8 unsuccessfull delivery ofâ•… 5–6 vanilla cultivation, case study ofâ•… 141, 144 Verma, Rajivâ•… 173, 175 visionâ•…138 driven organizationsâ•… 67–8 meaning ofâ•… 68–71 sharedâ•…69 steps towards effective visioningâ•… 70–1 value-enhancingâ•…69 see also mission visioning cultureâ•… 71, 102 voluntary co-operationâ•… 99 wealth creationâ•… 133 Welch, Jackâ•… 14 willingnessâ•… 95, 99 wisdomâ•…43 dilemmas andâ•… 163–9 disruptiveâ•…153–5 evidence-ledâ•…151–3 learningâ•…160–1 maturingâ•…157–60 in neuroscienceâ•… 161–3 present timesâ•… 160 reflectiveâ•…156–7 steps to practicalâ•… 171–4 telescopic thinkingâ•… 156 workingâ•…170–5 Working in Organizationsâ•…80 working wisdomâ•… 170–5 Zook, Chrisâ•… 64 [...]... making the economy here a little bit more prosperous I see that as success Success is also measured by how much you give—to the industry, to other operators, to people doing menial jobs and so on Georges Dabaghi’s answer to the question of what constitutes success raises many of the issues we will explore in the pages that follow Success 2 The Success Formula is a potent and often troubling cocktail of the. .. railways The Success Formula is the result My research—supported by the global leadership firm, Heidrick & Struggles—found that the starting point for any successful organization (or, indeed, any individual) must be value Always Value is the currency of success The types of value organizations seek to create and how they approach doing so lie at the very core of any understanding of what success looks... the short-term and the longterm, money and conscience, the company and the world, and the individual and the organization So, what is success? To distill it down, success is the creation of value—economic and social benefits and outcomes that serve a purpose for the people they are intended to help, in accordance with a set of values that the organization subscribes to Organizational success generally... generally They want to help make the world a better place, while still making a profit 4 The Success Formula Value is often also seen in terms of the stakeholders involved: the individuals, groups, or organizations with a direct interest in the activities of a corporation These include shareholders, customers, suppliers, employees, investors, and members of the community in the location where the company... legitimize their existence Value is truly the currency of success So far, so good But while it is easy to agree that delivering value is the essential ingredient of success, time and time again it has become evident that value is not being delivered In the success formula of many organizations, the numbers simply don’t add up Value is left on the factory floor or the boardroom table Consider the very... which we will explore The Success Formula explains how the three elements work and what organizations and leaders need to do to deliver value Value is the lifeblood of organizations and the raison d’être of leaders My hope is that The Success Formula will broaden our understanding of the meaning of success and the vital role played by value and evidence in making success a reality Andrew Kakabadse,... global research project that forms the foundation of The Success Formula was to cut through the clutter and demystify the link between leadership and sustainable business value in today’s fast-paced world Accelerated globalization and technology have redefined the leadership skills to be successful in the global marketplace Many CEO’s find their skills becoming obsolete as their organizations change in... across all levels of the organization? What are the best companies doing and how can we learn from them? In The Success Formula, Andrew argues that in the new VUCA world (the military acronym for Volatility, Uncertainty, Complexity, and xxiv Preface Ambiguity), strategy works best when leaders create an evidence-based culture—one in which they are able to transform their vision into their organization’s... a store You can feel the mood of the business and its ethos But it is not that difficult in any business Only by being there on the commercial front line will you really understand the company, its culture, and its performance Results and behavior—not necessarily in that order—lie at the heart of my view of business This coincides with the most persuasive themes of The Success Formula As Andrew Kakabadse... realized These insights led to the development of the success formula, a simple but powerful means of getting to the heart of value It argues that three elements are critical to value creation: strategy, engagement, and alignment Strategy: the plan for how the organization intends to create value going forward Engagement: the extent to which people will voluntarily invest their efforts beyond the financial