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In this Wall Street Journal and BusinessWeek bestseller, Michigan Business School guru and worldwide consultant Noel Tichy brings his special brand of organisational transformation to a practical level that guarantees a leader at every level of an organisation.
Why do some companies consistently win in the marketplace while others struggle from crisis to crisis? The answer, says Noel Tichy, is that winning companies possess a "Leadership Engine" , a proven system for creating dynamic leaders at every level. Technologies, products and economies constantly change. To get ahead and stay ahead, companies need agile, flexible, innovative leaders who can anticipate change and respond to new realities swiftly. Tichy explains that everyone has untapped leadership potential that can be developed winning leaders and winning organisations have figured out how to do this.
In this acclaimed bestseller, Tichy offers colourful and insightful best-practice examples from dozens of leaders gathered from decades of research and practical experience.
About the Author
Noel M. Tichy is a professor at the University of Michigan Business School, director of the school's Global Leadership Partnership, and former head of GE's Crotonville Leadership Development Center. He is the author of the best seller Control Your Destiny or Someone Else Will (with Stratford Sherman).
Read an Excerpt
The Leader-Driven OrganizationWinning Is About Leadership
- Winning organizations have leaders at all levels
- Producing those leaders is what separates the winners from the losers
- Ideas and values guide their decisions
- Energy and edge get them implemented
- They can't keep pace with changing markets
- They don't add shareholder value
Weiss was polite but firm. "I can't do that," he replied. "We'll lose two or three more years while that person is getting his or her act together. That would be catastrophic, because within five years, we've got to either transform this company or find our markets rapidly shrinking. Until now, our leaders have been unwilling tocontemplate anything but gradual change. We've got to find a way to radically reform and reorient our company. We'll have to deal with succession in that context."
Within six months of this meeting, two of the key potential CEO successors had left Ameritech, and four new potential successors from within the organization were leading a massive cultural change effort called Breakthrough Leadership. The company had also created a temporary organization to run parallel with the operating company. This temporary organization was designed to simultaneously screen and develop leaders for Ameritech's future, as well as to develop the vision, values and strategy for the new Ameritech. It involved hundreds of leaders and task forces, and intensive development activities throughout 1992. In 1993, this was expanded to thousands of Ameritech managers.
By May 1994, when Weiss retired, the company had been totally reorganized into new business units, and a new CEO was in place: 47-year-old Dick Notebaert. It had thousands of reenergized and motivated employees. And it was primed to take off in the new telecommunications world. From 1993 through 1996, Ameritech outperformed its peers, providing a 19.0% annual return to investors versus 13.9% for the Standard & Poor's Telephone Index. For 1996, Ameritech posted net income of $2.13 billion, on revenue of $14.9 billion.
Bill Weiss is gone from Ameritech now. When he retired, he even left the board so that Notebaert would have the freedom to run the business on his own. But Weiss gave Ameritech a lasting legacy: In a very short time, he had positioned the company to be a winner by developing a team of leaders who would continue to invest in developing other leaders. In his last three years, he gave a bravura performance of leadership, and he left the company not only in the hands of a strong successor, but also with a keen appreciation for and a culture of leadership.
Weiss himself readily acknowledges that he wasn't always a great leader. He became chairman in 1984, but for the first seven years of his tenure, he just tinkered, "because our performance was solid and life was comfortable." But finally he saw that big things had to change if Ameritech was going to survive, and someone had to make those changes happen. "I have to admit my first efforts were at gradual change, incremental change," he says. "I had to start thinking in terms of radical change; revolution, if you will. I should have done it sooner."
Bill Weiss may have been a slow starter, but Ameritech is on a winning trajectory today because he came to understand a secret about winning organizations and winning people: Winning is about leadership. Winning individuals are leaders, people with ideas and values, and the energy and guts to do what needs to be done. And organizations are winners because they have good leaders, not just at the top, but at all levels. Winning companies value leaders, they have cultures that expect and reward leadership, and they actively put time and resources into developing them. Winning companies win because they have lots of leaders, and they have lots of leaders because they deliberately and systematically produce them. This is what separates the winners from the losers.
Most people in business will tell you that developing leaders is an important activity, and that organizations must carry it out in a thoughtful and systematic manner. The reality, however, is that while there is much talk and much surface activity, very few organizations do a good job of it. They talk a good game, but when the chips are down, they don't follow through very well.
Some companies don't do a good job developing leaders because they don't try very hard. Some have good intentions, but they just don't commit the time and resources necessary to do it. Others, such as General Motors, Digital Equipment and Westinghouse, like to talk about leadership but actively discourage it by punishing people who dare to think independently. And still others, such as AT&T, have committed huge amounts of time and resources to elaborate well-enforced human resources development processes, but they have been largely taught by consultants and academicians who aren't leaders themselves. So what they have tended to produce are very articulate managers who are masters of the latest "business-speak" and the fads and fashions of management gurus. But they end up acting like civil servants and bureaucrats, not leaders....
Table of Contents
- Acknowledgments ..... ix
- Preface ..... xi
- Introduction ..... 1
- 1: The Leader-Driven Organization ..... 9
- 2: Why Are Leaders Important? ..... 23
- 3: Leadership and the Teachable Point of View ..... 41
- 4: Past as Prologue--Learning from Experience ..... 58
- 5: The Heart of Leadership--It Starts with Ideas ..... 79
- 6: Values--Speaking with Words and Action ..... 104
- 7: Making It Happen--Getting Energy Out of Everyone ..... 128
- 8: Edge--The Courage to See Reality and Act on It ..... 151
- 9: Tying It All Together--Writing Your Leadership Story ..... 172
- 10: Conclusion--Leading into the Future ..... 189
- Handbook for Leaders Developing Leaders--The Leadership ..... 197
- Engine: A Teachable Point of View Notes ..... 301
- Sources ..... 340
- Index ..... 361
- Preface ..... xi
What People are Saying About This
"This book is the most valuable of the lot because it solidly confronts a vexing problem today--the lack of leaders who are willing to take their organizations through fundamental change. From Congress to the boardroom to the computer room, the qualities discussed are in short supply. If you think you've got what it takes, Tichy offers a comprehensive handbook for developing a leadership program at your workplace."
"Periodically, all successful organizations have to change. Once a crisis has occurred, any organization will change, but waiting for a crisis is not often the route to success. How to large organizations change without a crisis? Noel Tichy correctly finds the answer in leadership--a leadership that permeates an organization at all levels."
"This is Noel Tichy's summa. His text models the leaders he profiles: brilliant, clear on values, and gutsy as hell. The research base is awesome. The stories are great. The message is spot-on. The path to action is clear."
"Noel Tichy has been a point guard on the management of organizations. ... The Leadership Engine focuses on how leaders of organizations use their whole being in creative managing. The book is an inspiration to teachers, business leaders, and coaches."
Reading Group Guide
Why do some companies consistently win in the marketplace while others struggle from crisis to crisis? Drawing on decades of research, practical experience, and colorful examples from leading CEOs, Noel Tichy shows that the answer to this question is the "Leadership Engine" -- a proven system for creating dynamic leaders at every level and an integral factor in a company's sustained success."Too few managers and executives understand the importance of mentoring. In elevating this role to the top of a leader's priorities, the authors offer managers a way of becoming even more influential." --John A. Byrne, BusinessWeek
Questions for Discussion