Tuesday, March 12, 2013

Hit the Ground Running: A Manual for New Leaders [Bargain Price] [Hardcover] Jason Jennings


Hit the Ground Running: A Manual for New Leaders [Bargain Price] [Hardcover]

Jason Jennings


Format:Hardcover
I have read and reviewed Jason Jennings' three previously published books and consider his latest, Hit the Ground Running, to be his most informative and most entertaining, indeed his most valuable book thus far. The narrative is driven by rigorous and extensive research conducted by Jennings and his associates. Through a process of elimination best explained in the book, he selected nine exemplar companies and their CEOs and explains how each of the nine combinations (i.e. company and its CEO) demonstrates an especially important "Rule." Jennings devotes a separate chapter to each of the ten, the last being "Be a Fish Out of Water." His focus is primarily on the nine CEOs and suggests that the best way to measure the performance of a CEO and compare one anther to each other is to calculate the total amount of economic value they created. "We defined economic value as the sum of the profits generated, dividends paid, increases in sales and profits, and the increase in the company's share price during the CEO's tenure." After all of the nine CEOs who took over companies because of death, retirement, resignation, or the poor performance of their predecessor, they hit the ground running and "almost doubled revenues, more than tripled earnings per share, nearly tripled EBITDA, and doubled their company's net profit margins." How did they accomplish these exceptional results? Jennings provides the answer in this book.

In Jennings' previous books, his focus is primarily on companies that, after rigorous and extensive research (including on-site visits and interviews with C-level executives), survived a series of cuts. For example, prior to writing Less Is More, Jennings and his research associates examined thousands of companies, selected eighty for further study, and finally identified eight great companies that use productivity as a competitive tool in business. And then prior to writing Thing Big Act Small, Jennings and his associates conducted research on 110 companies, eventually reduced the number to 17 "finalists," and then selected the nine publicly traded companies that were the "best performers" in that then increased revenues and profits by 10% or more each year for ten years or more.

As previously indicated, the focus in this book is primarily on the first-year performance of nine CEOs: Patrick Hassey (Allegheny Technologies), Marshall Larsen (Goodrich Corporation), Frederick Eppinger (The Hanover Group), Howard Lance (Harris Corporation), Jeffrey Lorberbaum (Mohawk Industries), Ronald Sargent (Staples), Keith Rattie (Questar), Mike McCallister (Humana Inc.), and finally, Tim and Richard Smucker (The J.M. Smucker Company). After lengthy interviews, Jennings notes an obvious connection between and among them, one overpowering characteristic that all the CEOs shared: "They told the truth. None of them deceived themselves about anything, nor did they surround themselves with executives who did; they all practice the Golden Rule; and as a result, they've become the best performing CEOs in the nation."

While reading this book, I was fascinated by a process that did not occur in any of Jennings' previous three books: Those interviewed seemed to assume control of the book's narrative (albeit unintentionally) and their contributions invested the narrative with an energy, substance, and direction quite unlike any others I have observed in other business books about exemplary CEOs. Literally, for me the book took on a life of its own. In this context, I am reminded of what a French Romantic poet (perhaps Baudelaire) once said when asked how to write a poem. His response: Draw a birdcage and leave the door open. Then wait and be very patient. After a while, if you are lucky, a bird will fly through the open door. Then you erase the cage. That is the best way I know of to describe how Jennings enables the CEOs interviewed to share their thoughts and feelings about what they and their associates did and how they did it during each CEO's first year. All of them stressed the importance of others' contributions to the success achieved. Consider this brief quotation from Lao-Tzu's Tao Te Ching:

"Learn from the people
Plan with the people
Begin with what they have
Build on what they know
Of the best leaders
When the task is accomplished
The people will remark
We have done it ourselves. "

That attitude explains how Eppinger gained credibility when he became CEO of The Hanover Group and why Lance asked his associates for their assistance when he became CEO of Harris Corporation. As is also true of the CEOs of the eleven "Good to Great" companies that Jim Collins interviewed, the nine CEOs that were interviewed by Jennings and his associates (notably Laurence Haughton) indicate almost no personal ego. They seem almost obsessed about the success of their companies but insist that that success is not about them. This is authentic humility, not false modesty, and (in my opinion) demonstrates the power of Lao-Tzu's observation.

In my opinion, one of Jennings' most important points is indicated when he discusses how and why high-performance leaders (including the exemplary CEOs) view themselves as stewards. Their decisions are guided and informed by the Golden Rule or an equivalent thereof, they are authentic and humble, their ego is so healthy they do not hesitate to acknowledge their own limitations and ask others for assistance, they are purposeful listeners, they surround themselves with as many talented people as possible, they empower others to lead and sincerely and enthusiastically delighted by their success, they focus on what is most important now and will continue to be important in the future, they trust but verify, they never preserve their neutrality in a moral crisis, they are allergic to waste, (as Einstein suggests) they make everything as simple as possible...but no simpler, they always set an example for personal accountability, (invoking a football term) they "move the chains" toward each objective, they cultivate and sustain "a fierce sense of urgency," and they follow what Bill George characterizes as their own True North. As George explains, it is "the internal compass that guides you as a human being at your deepest level. It is your orienting point - your fixed point in a spinning world - that helps you stay on track as a leader. Your True North is based on what is most important to you, your most cherished values, your passions and motivations, the sources of satisfaction in your life. Just as a compass points toward a magnetic field, your True North pulls you toward the purpose of your leadership."

On Pages 206-225, Jennings includes 120 brief quotations from the best performing CEOs he discusses in his book. I conclude my review with several that clearly indicate a strong sense of stewardship. "I need everyone to respect and support one another and work with each other. Everything else is B.S." (Fred Eppinger) "The CEO's job is to be a destination expert. The CEO's job is to let everyone know where we are going." (Pat Hassey) "The idea of aligning your business with your customers is as natural as breathing. I wouldn't know how to do it any other way." (Howard Lance) "Any CEO who thinks he can pull all the strings that make things happen is kidding himself." (Marshall Larsen) "Oversimplify everything! Sit down and ask, `If I could start with a blank sheet of paper today and create the best answer, what would I do?'" (Jeff Lorberbaum) "We try to treat all of our people like they are adults, which sounds like straightforward common sense, but it's amazing how many businesses don't." (Mike McCallister) "No spin. Look the facts in the eye and tell the truth. Always." (Keith Rattie), "You have to communicate what you're doing. If people don't know what's going on, they'll think nothing's going on." (Ron Sargent) "Listen. Be Humble. Doubt your own infallibility." (Tim and Richard Smucker)

All of these quotations are consistent with what they shared during lengthy and rigorous interviews that provide much of the material within Jennings' narrative. More to the point, the quotations are consistent with what the CEOs' associates said about them during their own interviews. Are these CEOs without deficiencies? Hardly. Here's the key point: They were able to "hit the ground running" precisely because they were well-aware of their own deficiencies and engaged the assistance of others when assuming their new duties.

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http://www.amazon.com/Hit-Ground-Running-Manual-Leaders/dp/B002BWQ59U/ref=pd_bxgy_b_text_z



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