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Leadership Insights From Obama’s Inauguration Speech January 21, 2009

Posted by Bruce Temkin in Branding, Executive leadership, Managing in a recession, Political inisghts.
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As for our brand, we reject as false the choice between cutbacks and our ideals

This is an edited excerpt from President Obama’s inauguration speech. In addition to delivering a powerful set of messages to US citizens and other people around the world, Obama’s words also contained extremely valuable lessons for executives trying to lead their organizations through the recession. Here’s my take on some insights in his speech:

Today I say to you that the challenges we face are real, they are serious, and they are many. They will not be met easily or in a short span of time. But know this America: they will be met.

My take: Leaders need to communicate the reality about the difficult economic environment, but still maintain a vision of hope for employees (as well as customers, suppliers, and investors).

It has not been the path for the faint-hearted, for those who prefer leisure over work, or seek only the pleasures of riches and fame. Rather, it has been the risk-takers, the doers, the makers of things – some celebrated, but more often men and women obscure in their labor – who have carried us up the long, rugged path toward prosperity and freedom.

My take: The success of a company comes from the day to day activities of all employees. So it is critical to keep them engaged in the shifts being made to react to the recession. How? By making sure to actively communicate and look for their help in finding solutions. Remember the 4th law of customer experience: unengaged employees don’t create engaged customers.

Our workers are no less productive when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished. But our time of standing pat, of protecting narrow interests and putting off unpleasant decisions – that time has surely passed.

My take: It’s important to acknowledge the core strengths of the company, but recognize that this is a time for making tough decisions. This may call for cutting off entire initiatives while raising investments in others. As management guru Ram Charan recommends: Just say no to across-the-board cuts.

The state of our economy calls for actions: Bold and swift. And we will act not only to create new jobs but to lay a new foundation for growth.

My take: It’s time to take decisive action that protects your company in the short-term and also prepares the company for its post-recession future. Jeff Immelt, GE’s CEO, captured this nicely in his advice to GE’s top executives on how to manage through the recession: “Keep your company safe but keep building the future.”

We will restore science to its rightful place and wiled technology’s wonders to raise health care’s quality and lower its costs.

My take: Don’t just do less of the same thing in this downturn, rethink how you operate. Look for opportunities to use technology to create more even value at lower costs. For a great example of this type of thinking, just look at Aravind Eye Care.

As for our common defense, we reject as false the choice between safety and our ideals… Those ideals still light the world, and we will not give them up for expedience’s sake

My take: Don’t forget the common purpose that holds your company together. Even in a downturn, make sure that decisions are consistent with the ideals of your brand. As Gandhi once wisely said: “All compromise is based on give and take, but there can be no give and take on fundamentals. Any compromise on mere fundamentals is a surrender. For it is all give and no take.”

The bottom line: Take this moment in time to rethink your leadership approach.

The Path From Rosa to Martin to Obama January 21, 2009

Posted by Bruce Temkin in Political inisghts.
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All I can say is wow! President Obama’s speech was powerful and on-point. My next post will go over some leadership insights that can be drawn from his words, but for now I just want to share what a second grade teacher at our elementary school said about Obama…

Rosa sat so Martin could walk. Martin walked so Obama could run. Obama ran so our children could fly.

The bottom line: Well said!

Learning From Bush’s Leadership Mistakes January 19, 2009

Posted by Bruce Temkin in Executive leadership, Political inisghts.
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Given the upcoming presidential inauguration, it seems appropriate to look back at some lessons we can learn from President Bush’s tenure.  Rich Lowry, Editor of the National Review, listed 10 mistakes made by George Bush that shaped his presidency. While some issues are specific to the president’s situation, there’s a lot that leaders can learn from many of these errors. So here’s “my take” on some of the broader leadership issues:

  • An ineffective management style.
    My take: If you’re going to delegate, make sure you’ve got a good team. And don’t forget to question them and hold them accountable
  • Deferring to his generals.
    My take: For the important issues, listen for feedback from the front lines, not just your senior execs.
  • Not taking charge during Katrina.
    My take: When a crtitical issue hits, take charge and mobilize your best team ASAP.
  • Not reading enough history.
    My take: To borrow a quote: “Those who do not learn from history are doomed to repeat it.”
  • Refusing to settle the internal war within his administration.
    My take: Debate is good; backstabbing is unacceptable. If your team can’t work together, then someone needs to be let go.
  • Underestimating the power of explanation.
    My take: Making the right decision is only one piece of a solution; you need to “sell” it to employees and other constituents.

The bottom line: The US needs strong leadership; good luck Obama!

Top Execs Share Their (Sad) Thoughts On The Economy December 6, 2008

Posted by Bruce Temkin in Executive leadership, Managing in a recession, Political inisghts.
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BusinessWeek interviewed eight corporate execs about the their thoughts on the economy. It’s really interesting to hear their perspectives. Here are excerpts from their comments:

  • FRED SMITH, FedEx: It is by far the worst I’ve seen in the 35 years I’ve been in business… The only good thing is that if anything turns this around, it’ll be pretty quick, since inventories are at such incredibly low levels. But I’d be very surprised if anything started to turn around before the middle of next year.
  • ROBERT NARDELLI, Chrysler: …our 6.5% unemployment rate… could go to 10%-plus. Even with aggressive resizing, we can’t keep up with it because we haven’t seen the bottom.
  • RALPH DE LA TORRE, Caritas Christi Health Care: We live and die on the tax-free bond market, and right now we’re dying… I think there’s going to be a pretty substantial consolidation in health care. As many as 20% of hospitals could close. There’s going to be no capital spending for at least the next year or two.
  • MILES WHITE, Abbott Laboratories: If you’re on a drug that’s reasonably discretionary, you might cut back as a patient. But if you’re on a drug for a chronic problem, you’re not cutting back… I wouldn’t call [our situation] severe.
  • LEWIS HAY, FPL Group: Probably 25% of our customers are past due. Normally, it’s more like 15%… With such a shortage of access to capital, how are we going to get all these alternative energy projects going?
  • DENNIS DAMMERMAN, former GE vice-chairman:  And while I don’t agree with much of what Barack Obama wants to do, I think that for a great chunk of our consuming public, he has improved that confidence. I hope this enthusiasm doesn’t die.
  • TIMOTHY MANGANELLO, BorgWarner: We’re preparing for nothing good until mid-2010… it’s possible it won’t improve by then… the cost structure in the U.S. has to improve. Health-care costs are too high. Tort reform is too difficult. And business taxes are too high.
  • FRED HASSAN, Schering-Plough: The key is inflation. If inflation stays under control and confidence returns, we’ll come back early. If inflation starts to roar in mid-2009 and thereafter, we have a problem. It might start to look like the mid-1970s.

My take: Overall, this doesn’t sound too encouraging for 2009. The only positive notes are that inventories are already pretty low and that President-Elect Obama may be able to bolster consumer confidence.

I’m hopeful that Obama will remain as inspirational and as non-partisan as he appeared to be during his acceptance speech.  I’ve also posted a couple of pieces of advice to the new administration: Appoint a Citizen Experience Officer and Revive “Brand USA.” 

For senior executives, I think the basic decision remains: Are you going to manage your way through the recession or lead your company out of it?

 The bottom line: I’ll keep offering advice on how to manage in a recession.

Obama Needs A Citizen Experience Officer November 23, 2008

Posted by Bruce Temkin in Customer experience, Political inisghts.
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Bruce Nussbaum’s excellent Business Week blog has a post called Letter to President-Elect Obama: Here’s How To Build Your Innovation Dream Team. It recommends candidates for roles in Obama’s administration and also identifies a couple of new roles: Chief Innovation Officer and Creativity Advisory Board. 

I agree with Nussbaum. President-Elect Obama needs to make significant changes in the way government operates and should infuse innovation and design thinking into his administration. But I would also propose another position: Citizen Experience Officer. 

I often advise large organizations (banks. retailers, telcos, etc.) to put an executive in charge of their customer experience efforts; creating a position like Chief Customer Officer if they are committed to making improvements. These execs motivate, coordinate, and accelerate the focus on customers across an organization. 

If President-Elect Obama wants to significantly improve the relationship between the US government and the US people, then a Citizen Experience Officer (the public sector version of a Chief Customer Officer) makes a lot of sense. What would a Citizen Experience Officer do? As the rest of the Cabinet overhauls governmental policies, this person can help make the government easier to work with, one interaction at a time.

In particular, a Citizen Experience Officer could:

  • Establish a comprehensive Voice-Of-The-Citizen program to make sure that the needs of citizens are driving the design of all interactions and are incorporated in decision making.
  • Improve the usability of federal government Websites and other self-service channels like kiosks and phone self-service to lower the cost of interactions.
  • Make all government communications (instructions, etc.) easier to understand so that government will become more accessible.
  • Redesign processes to make them more citizen-friendly and to simplify interactions with government agencies.
  • Develop and execute a communications and training plan for government employees to infuse a citizen-centric focus across all government organizations.
  • Share best practices for citizen-centricity across federal agencies and departments.

The bottom line: It’s not audacity to hope for better government experiences

Off Topic: Obama’s Victory Speech November 6, 2008

Posted by Bruce Temkin in Executive leadership, Political inisghts.
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I was on a flight to London when Obama was projected to win the election and when he gave his victory speech. But I was able to see the video and read the transcript at my hotel. I thought it was a great speech. It covered most of the 6 steps that I outlined for the president to revive “Brand USA.”

Rather than basking in the glory of the victory, Obama renewed his vow for change. Rather than celebrating the excitement of the moment, he defined a vision for the future. Rather than promoting the strength of the Democratic party, he made a plea for unity. Rather than focusing on his presidency, he framed the challenges and opportunities for the American people.

Here are some of my favorite parts of his speech: (more…)

6 Steps For The President To Revive “Brand USA” November 3, 2008

Posted by Bruce Temkin in 6 New Management Imperatives, Customer experience, Executive leadership, Political inisghts.
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I just read some comments from U2’s Bono about the importance of the upcoming US presidential election. Here’s the part that caught my eye:

The whole world has a stake in how things turn out. The way the U.S. is perceived — “Brand USA” — also means something. And it’s never been so closely watched… it’s a great chance to relaunch Brand USA

My take: Bono’s approach of framing the US challenges in terms of our “branding” makes a lot of sense. I like the idea of applying private sector thinking to the public sector. With that in mind, I’ve applied my 6 new management imperatives to the role of the US president. So here’s some advice for Barack Obama or John McCain in leading a revival of ”Brand USA:”

  1. Invest in culture as a corporate asset: The national debt, federal deficit, and stock market devaluation are indications of our country’s economic woes. But there’s a more fundamental indicator of the US situation: the deteriorating attitudes, values, and goals of the American people — our US culture. The new president needs to define and communicate a clear vision for America with the goal of instilling a sense of pride, hope, and optimism in the American people. An improved US culture will align the actions of US people with initiatives like cutting back on oil consumption and help propel a strong, vibrant recovery.
  2. Make listening an enterprisewide skill. The world is in flux. The economic downturn is not a US issue, it’s a global issue. Severe problems like AIDS, global warming, and Bird Flu transcend sovereign borders. One fact is clear, the US can not succeed by acting unilaterally. To flourish in this interlinked world, the president will need to establish better lines of communications with and facilitate better coordination across all of the key countries and regimes around the world. He’ll also need to look for ideas and insights across political lines.  The new president will need to embed listening throughout his administration as a foundation for formulating strategies and policies.
  3. Turn innovation into a continuous process. We can’t keep going down the same path on critical issues like health-care, national security, energy, and the environment and expect to wind up with different, better results. Let’s face it, no legislative bill can fix these problems. What’s the answer? As Michael Porter has said: “Innovation is the central issue in economic prosperity.” So instead of pinning his hopes on big-bang solutions, the new president needs to create an environment (legislation and persuasion) that actively fosters coordinated and ongoing innovations in the private sector to improve these mega-issues.
  4. Provide a clear and compelling purpose. People need to know that the US stands for good, positive virtues. Why? So Americans will feel more connected (and committed to actualizing those virtues) and people in other countries won’t continue to think of the US as a big bully. So the next president needs to clearly define and articulate an inspiring vision for the country. Think about how much clarity the Ritz-Carlton credo provides for its customers, partners, and employees:
    “The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is our highest mission… The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”
  5. Extend and enhance the digital fabric. Over the last 10 years, there’s been enormous advances in information technology (IT). Yet the US government, like many organizations, has not taken full advantage of IT opportunities. Why not? Because it’s difficult to change old processes, break through outdated thinking, and overcome parochialism. But the new president should aggressively take on these challenges and use IT to streamline governmental processes, coordinate information and analysis across departments, and dramatically increase Web self-service for citizens and government employees. The result: a lower-cost, more effective US government.
  6. Practice good social citizenship. As one of the most prosperous nations on earth, we need to make sure that we we take care of the needy in our country as well as helping those in less prosperous countries.  We also need to take a lead in fighting some of the world’s key problems like the global warming, world hunger, and AIDS. The new president should be a highly visible leader in attacking these problems. 

The bottom line: It’s up to the next president to make ”Brand USA” one of the most admired brands in the world.

Apple, Not Obama, Is My Marketer Of The Year October 25, 2008

Posted by Bruce Temkin in Branding, Customer experience, Political inisghts.
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Obama’s campaign just won “Marketer of the Year” from the Association of National Advertisers. Here’s how the group voted:

  1. Obama: 36.1%
  2. Apple: 27.3%
  3. Zappos: 14.1%
  4. Nike: 9.4%
  5. Coors: 8.7%
  6. McCain: 4.5%

You have to give Obama a lot of credit for successfully using social media and digital marketing techniques to reach the grass roots constituents and raise a ridiculous amount of money: $150 million in September!!! I outlined several good the things in the Obama campaign in my post Five Lessons From Clinton/Obama Battle.

But even with all of that cash flowing into the Obama campaign, it wouldn’t have been my first pick on the list. Who would have been my number 1? Apple.

Apple has done an amazing job with Mac and iPhone marketing. The Mac ads are fantastic; delivering clear, on-brand messages (Mac is fun, Vista is broken) in a fun and memorable way. The iPhone marketing campaign has created enormous buzz around the iPhone experience, pushing people to actually switch wireless carriers. In addition to the product-specific campaigns, Apple does a great job of blending its product design, store experience, and Genius service into the marketing mix.

And, we can’t forget that Apple is successfully outmarketing companies like Microsoft, HP, Dell, Verizon, and RIM (Blackberry). These are major consumer brands. Obama, on the other hand, is only out-marketing McCain who has significantly less resources.

The bottom line: Apple is my marketer of the year (P.S. I’m also a huge fan of Zappos)

Take A Look At Yahoo! Election Dashboard October 11, 2008

Posted by Bruce Temkin in Customer experience, Online strategy, Political inisghts.
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I just read that Obama is 4% ahead of McCain. It seems like every day there’s a new poll that talks about a few percentage points separating the presidential candidates. But what does that mean? At this stage in the election, I really miss Tim Russert who used simple language and easy-to-understand diagrams to describe the complex political environment.

In the spirit of easy-to-use political charts, Yahoo! has put together a really good rich Internet application (RIA) for examining the election state-by-state. It provides a ton of insight into the battle for the White House.

The bottom line: This is a great example of a very useful and usable RIA.

Obama And McCain Sites Fail The Usability Test August 29, 2008

Posted by Bruce Temkin in Customer experience, Online strategy, Political inisghts.
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I just published a report called Presidential Candidate Sites Fail Usability that examined the usability of John McCain’s and Barrack Obama’s Web sites. We applied 5 of the 25 criteria from Forrester Web Site Review methodology. Our evaluation tested two scenarios: 

  • Make a $50 contribution on the candidate’s site
  • After seeing all of the news about the candidates’ different energy policies, user wants to quickly find an overview of the candidate’s energy policy.

Here’s how the sites fared:

These results are not very good. Interestingly, both sites failed our privacy and security criteria. This was a problem that I highlighted last November when I evaluated the six major candidates at that time (McCain was not included in that analysis).

The bottom line: Obama and McCain should make it easier for their online constituents.