My 'homeroom' professor , the professor who is sort of the assigned 'spiritual' guide to our section, has been ranked #44 in World's Top Business Thinkers this year!
Saturday, October 17, 2009
Wednesday, October 07, 2009
Bob McDonald P&G CEO at HBS
My husband asked me to attend this talk without fail. And being a dutiful wife, I did just that. And here is my report -
Bob McDonald talked about his 10 maxims for leadership, a work in progress through his many years of leadership in the Army and at P&G. I have condensed a lot of points and hence may not be as eloquent as his speech. Anyhoo, here goes -
- Have a purpose in life. My purpose has always been helping people. That is why I was a Boy Scout, then went to West Point and subsequently the Army. Then I joined P&G because the purpose of P&G aligned with my purpose. It was touching lives and improving life. He listed the P&G core values, etc.
- Everyone wants to succeed, success is contagious.
- Putting people in the right job is one of the most important jobs of the leader.
- Character is the most important trait of a leader. By character, I mean (a) putting the needs of the organization above your needs. Have ambitions for the organization, not for yourself. (b) Integrity - at P&G we dont cheat, steal or lie. And we don't want people who do that. (c) Taking Responsibility - In West Point, for any problem or issue, there are only 4 answers - 1. Yes, sir 2. No, sir. 3. Sir, I do not understand 4. No excuse, sir. And I learnt through experience that the correct answer is No, excuse Sir whenever you mess up. Even if the causes of the failure were outside your control. Take responsibility. (d) Choose the harder right instead of the easier wrong. Whenever something is turning out to be easy, think again. Maybe you are doing the wrong thing.
- Diverse groups of people are more innovative than homogenous people. We want our people to be exactly like our consumers. Diversity is key to innovation. And innovations are more about connecting the dots than straight lines. Inventions never get used for what they were meant/designed for. For, example, Graham Bell designed the telephone as an aid for the hearing impaired. Marconi meant the radio to be used to communicate from a ship. Certainly not for entertainment on land! Father of IBM's most famous quote is "I think in future, the United States of America may need one or two computers." P&G also uses the Platinum Rule (as opposed to the Golden Rule: Treat otheres as you want others to treat you): Treat others as they want to be treated.
- Ineffective strategies, systems and culture are bigger culprits than people. As a leader, when things go wrong, investigate processes and strategies first. Not people.
- There will be some people in the organization who will not make it on the journey. This is a difficult admission, as much as I am an optimist and an idealist.
- Organizations must renew themselves. The most important thing you will learn at Harvard is 'how to learn'. P&G wouldn't be celebrating its 172nd year this October if it hadn't constantly renewed it self. In 1980 (when Bob joined P&G from the Army), P&G's overseas business is 25% of the total. Today it is 60%. It had 60k people. Today 130k. It had zero billion dollar brands. Today it has 23 of billion dollar brands. It has 20 half a million dollar brands. (Quick aside: These 43 brands make up 95% of their profits. So Bob joked that what the other 180 brands were doing is a question he asks everyday and joked about cutting brands!)
- Recruiting is the top priority. We have a culture of promoting from within. This is why, I am here today and try to be here at HBS every year. This is why I am going to talk to you after this speech. Because, I am looking for the future CEO of P&G.
- The true test of leadership is the performance of the organization when he/she is absent or after he/she departs. He gave the illustration of how the true test of your parenting is how your teenager behaves when you are absent or on a holiday.
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